#7 - The mining industry...is it an innovation laggard?
Apr 25, 2017
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Andrew Shook, a seasoned expert in technology and innovation within major mining firms like BHP Billiton and Rio Tinto, shares his insights on the industry's need for change. He argues that innovation isn't just optional; it's essential for profitability and sustainability. Shook discusses the challenges of adopting new technologies amidst market uncertainties and highlights the transformative potential of automation. He also emphasizes the importance of AI and data science in shaping the future of mining and the necessity for evolving educational programs to meet these demands.
Innovation in the mining industry is essential and requires embracing change rather than relying on outdated methods for achieving goals.
The integration of advanced data analysis and automation is crucial for transforming traditional mining operations into more predictable and efficient processes.
Deep dives
Defining Innovation in Mining
Innovation is defined as directed change to achieve beneficial outcomes, particularly within the mining industry. It emphasizes not repeating the same processes but rather introducing new methods to fulfill objectives like profit maximization and environmental protection. The context of the industry suggests a duality among professionals, with some focused on foundational discovery while others aim to enhance existing structures. A historical perspective reveals the evolution of roles in the sector, with modern petroleum geoscientists differing significantly from those of previous generations.
Challenges of Innovation in Mining
The mining industry faces inherent risks that complicate the implementation of innovative technologies. These risks include uncertainty regarding ore body quality and fluctuating commodity prices, making companies reluctant to adopt untested innovations. Additionally, successful mining operations, which currently yield profits, create a resistance to changing processes that could disrupt proven cash flows. The conversation emphasizes that innovation often involves weighing potential financial gains against these significant risks, making it difficult for companies to break from conventional practices.
The Role of Technology and Data in Mining
Advancements in information technology and analysis are expected to redefine mining operations, transitioning from chaotic to structured methodologies. As mining companies gather more precise data regarding ore bodies, they can make more informed decisions, enhancing productivity and safety. The integration of automation and data processing is seen as critical to revolutionizing operational efficiency, with the potential to transform traditional mining from a battle into a predictable production process. However, the challenge remains to ensure that both new and existing professionals within the industry develop the necessary skills to adapt to these technologies.
Future Dynamics and Education in the Industry
The mining industry must confront its educational and operational frameworks to prepare for future innovations, particularly in metallurgical processes. There is a need for collaboration between mining companies and educational institutions to produce graduates equipped with skills in data analysis, process control, and mathematical modeling. As operational demands evolve, mining engineers of the future must adopt a more dynamic outlook, focusing on innovation and technology integration. Ultimately, the call is for a cultural shift within the industry, embracing new ideas and encouraging continuous learning to remain competitive.
These days, innovation is all around us...a basic requirement in most industries. You either innovate, or you die. So what about the mining industry, often considered a laggard when it comes to technology and innovation. How will it innovate? We talk to Andrew Shook, who has held several technology and innovation roles in BHP Billiton and Rio Tinto. In his opinion, innovation can be explained by a single word...change.
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