Digital Transformation in the Australian Mining Industry, Forecast to 2022

Digital Transformation in the Australian Mining Industry, Forecast to 2022

The Industry Presents Untapped Opportunities for Sensors, Drones, Advanced Analytics, AI, and Cybersecurity

RELEASE DATE
07-May-2019
REGION
Asia Pacific
Research Code: 9AAC-00-44-00-00
SKU: IA01512-AP-MR_23130

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Description

As operators reduce staff and CAPEX to save costs, automation use cases such as predictive maintenance, asset optimization, and remote monitoring of equipment across large sites become important. Other key IoT outcomes include reducing downtime, saving energy, improving productivity and output, and enhancing operational safety.

Through digital infrastructure and IT-OT convergence, miners gain higher operational visibility and real-time monitoring capabilities that help achieve safety, minimize downtime, reduce energy consumption, and facilitate optimal utilization of mining assets.

Operational efficiency projects drive digital expenditure. For example, the increased use of solar power in mines, as well as greater numbers of water recycling projects will spur higher expenditure on digital solutions to manage these assets and processes effectively.

In the 12 years leading to 2015, the fatality rate in the mining industry decreased by 64.5%, from 12.4 worker fatalities per 100,000 workers in 2003 to 4.4 in 2015. However, the mining industry still has among the highest fatality rates among all industries in the country.

Digital solutions that help miners improve their safety record and facilitate better compliance are set to experience sustained demand. Weak commodity prices are causing many struggling mining companies to restructure, with some selling assets to continue operations. The Australian mining sector CAPEX declined by 30% in 2015–2016.

In this environment, there are fewer greenfield projects starting up and mining operators are not expected to spend large amounts on CAPEX. Even customers that chose to pursue digital transformation are exhibiting higher cost sensitivity and are looking for lower-cost alternatives, which is negatively impacting the overall market revenue growth.

The Australian mining sector’s total expenditure on ICT solutions dropped in 2017, mirroring the CAPEX decline in the overall mining sector. However, assuming there is no significant deterioration in commodity prices or global economic indicators, the CAPEX is expected to recover in 2018–2022. In fact, the slowdown has forced mining companies to eliminate non-performing operations and as a result, they are now agile enough to take advantage of the turnaround.

In addition, service revenues, especially data- and analytics-based services, are expected to grow at a faster rate than the total market over the forecast period.

In terms of verticals, ICT uptake in the thermal coal sector is declining due to the weakening of the end-market itself. In terms of the value chain, digital spending is expected to increase in processing (roasting, leaching, concentration, smelting), as well as in transportation and logistics. Effective, cost-efficient, high-precision, wireless tracking, and communication technology is becoming increasingly important for underground operations.

Autonomous navigation capabilities in traditional underground mining equipment, monitored with video and data transfer via a wireless network over a fiber-optic infrastructure, is a key innovation for improving productivity through a blend of IT and OT. In the long term, as surface mine deposits are further depleted, there is likely to be greater spending on underground mines.

Author: Ivan Fernandez

Table of Contents

Key Findings

Scope and Definitions

Scope and Definitions (continued)

Digital Solutions Enabling Transformation

Digital Transformation

Industrial IoT for Mining

Industrial IoT for Mining (continued)

Market Drivers

Drivers Explained

Drivers Explained (continued)

Drivers Explained (continued)

Market Restraints

Restraints Explained

ICT Expenditure Forecast

ICT Expenditure Forecast Discussion

Above-ground and Below-ground Mining

Hardware, Software, and Services

Communications

Digital Services—Condition Monitoring

Digital Services—Condition Monitoring (continued)

Automation Trends

Customer Pain Points

Digital Technology Implementation in the Australian Mining Industry

Industry Structure

Industry Structure (continued)

Industry Structure (continued)

Industry Structure* (continued)

Digital Solutions Providers—Recent Activity

Digital Solutions Providers—Recent Activity (continued)

Digital Solutions Providers—Recent Activity (continued)

Home-grown Innovators—Examples

Home-grown Innovators—Examples (continued)

Home-grown Innovators—Examples (continued)

Digital Transformation Overview

ASTER Geospatial Mapping

HyLogger

TopoDrone-4Scight

Leapfrog Central

MineSight Schedule Optimizer (MSSO)

Aegis

Wireless Sub

Onsite Lab

FastGrade

Airobotics Autonomous Drone

PC210LCi-10

Smart Sensor

FORESTALL® Real-time Alert Algorithms

Isuzu Connect

Remote Asset Management Centre

Rail Wayside Condition Monitoring

Mine Intelligence

Smart-IdlerTM

Online Freight Platform

TradeWind Markets

Seeing Machines

ControlMaster® Guidance System

Envirosuite

Lex L10

WAVE 5000 + Lex L10

PlantVR

SiteMonitor4D

Workfast

Metallurgical Intelligence®

Ampla Manufacturing Execution System (MES)

The Digital Mine

Australian Mining Sector at a Glance

Mining Commodity Prices and Exports

Mining Production

Mining Capex

Mining Capex (continued)

Mining Productivity

Mining Sector Trends

Growth Opportunity 1—Sensors

Growth Opportunity 2—Drones

Growth Opportunity 3—Analytics and AI

Growth Opportunity 4—Cybersecurity

Strategic Imperatives for Success and Growth

The Last Word—3 Big Predictions

Legal Disclaimer

Abbreviations

List of Exhibits

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
As operators reduce staff and CAPEX to save costs, automation use cases such as predictive maintenance, asset optimization, and remote monitoring of equipment across large sites become important. Other key IoT outcomes include reducing downtime, saving energy, improving productivity and output, and enhancing operational safety. Through digital infrastructure and IT-OT convergence, miners gain higher operational visibility and real-time monitoring capabilities that help achieve safety, minimize downtime, reduce energy consumption, and facilitate optimal utilization of mining assets. Operational efficiency projects drive digital expenditure. For example, the increased use of solar power in mines, as well as greater numbers of water recycling projects will spur higher expenditure on digital solutions to manage these assets and processes effectively. In the 12 years leading to 2015, the fatality rate in the mining industry decreased by 64.5%, from 12.4 worker fatalities per 100,000 workers in 2003 to 4.4 in 2015. However, the mining industry still has among the highest fatality rates among all industries in the country. Digital solutions that help miners improve their safety record and facilitate better compliance are set to experience sustained demand. Weak commodity prices are causing many struggling mining companies to restructure, with some selling assets to continue operations. The Australian mining sector CAPEX declined by 30% in 2015–2016. In this environment, there are fewer greenfield projects starting up and mining operators are not expected to spend large amounts on CAPEX. Even customers that chose to pursue digital transformation are exhibiting higher cost sensitivity and are looking for lower-cost alternatives, which is negatively impacting the overall market revenue growth. The Australian mining sector’s total expenditure on ICT solutions dropped in 2017, mirroring the CAPEX decline in the overall mining sector. However, assuming there is no si
More Information
No Index No
Podcast No
Author Ivan Fernandez
Industries Industrial Automation
WIP Number 9AAC-00-44-00-00
Is Prebook No
GPS Codes 9672-A9,9839-A9,9593,9420