www.pwc.com.

au

Mining Digital 101

Bas Mutsaers,

Global Account Director Mining

PwC Australia
The role of digital in PwC Mining Value Chain

Operational Corporate strategic planning

Strategy &

Planning
Activity Business unit strategic planning

Integrated business design Operations plans and schedules

Secure new reserves &/or assets Define resource body Rehabilitate site(s)
Value chain
activity

Develop facilities Extract mineral(s) Process mineral(s)

Develop & manage portfolio Ship product

Market & sell product

Manage community relations, environment, occupational health & safety

Support Activities

Develop and manage human capital

Manage infrastructure, plant and machinery

PwC ©
Procure materials and services

Develop and sustain technology infrastructure

Manage finances

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Our agenda today allows to

The role of digital in mining discuss some of the dimensions
of the multi discipline challenges

UAV Tailings Dam

Freight Rates F Nature of Cargo
Autonomous Maintenance
Monitoring
Mining and IT/OT F Weight

HSEC Block Chain F Distance

Mine Planning Analytics In Mining F Other Factors

UAV’s
Optimisation
Gaming Technology
Value Chain

PIT…
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“The Open Group Mining Model” (Also known for TOGAF)

Discover

Establish

Mine / Exploit

Beneficiate

Sell

Rehabilitate

Enterprise Support
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In future no longer Diesel underground equipment

Impact health of workers

Less cost ventilation

Green Mining energy sources

compatible etc.

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Future of efficient mining (Digital Mining GE)

Meet the GE Fairchild F330 continuous
miner, one of the strangest devices made
by GE. The machine weighs as much as a
fighter jet, stretches the length of a bus,
and crawls through cracks no taller than a
one year old. It can mine narrow coal
seams sandwiched between soft
sedimentary rock, and extract coal miners
used to leave behind.

https://www.ge.com/reports/post/75691617815/mine-the-gap/

What if this is combined with

Knowing exactly where to dig connected
with Mine Planning and Scheduling
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Processing underground – minimal disruption

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Leave “Your Share” in Situ

About $27 billion of gold changes hands every day in over-the-counter markets where
settlements can sometimes take days, leaving price risk for buyers and sellers. Using
blockchain promises more transparency, security and speedier deals. It also could attract
new participants at a time when investors are souring on gold-backed exchange traded-
funds, a key source of growth in physical demand over the past decade.

With digital and good sampling / GIS technologies we know more and more what is
actually underground without previous risks.

With Sustainability Challenges there might be a case to keep the value FOR INVESTERS
underground.

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Future of efficient mining (Barrick Gold)

After a productive meeting, they called her
back and told her they had gone in a
different direction, they now wanted “Stop
Mining the Earth Altogether”.

Apple have developed a robot that can

dismantle and recycle an old iPhone in 19
seconds. Extracting the gold, copper,
cobalt and other precious minerals to be
reused in a new phone.
Can we process our minerals in the ground
rather than taking it to the processing
plant? Significantly reducing environmental
impact and lowering the cost.
Or what if we use block chain?
Instantaneous purchase orders, taking out
all the middle men.
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OT View

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IT View

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IT/OT View

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Process People Technology in control room

People considerations
Process considerations
HSEC
Alarming
Infrastructure / Tech
Cyber considerations
Standards consideration s

Rio Tinto

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Cyber considerations

Functional Security Capabilities

Threat intelligence
Human/
Security Awareness Training
External
Anti-phishing
White listing
SOC
Applications Spam filter Identity
Mgmt

DLP/Information Protection
DB Firewall Malware
Data/ Security Analysis
Database Info &
Vulnerability
Encryption Mgmt Event
Mgmt
Antivirus/Endpoint Memory Analysis
Operating
system File integrity Live Memory Monitor Forensic Tools

NAC
Malware Detection
Network IPS/IDS
Firewalls Network Analysis

Prevent Detect Respond

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Big data analytics
Emerging trends in data, analytics, and visualization
Nontraditional Information Sophisticated Visual Insights &
Big data data synthesis analytics Tool Selection

The exponential Telematics, satellites, Evolving data Advanced analytical Presenting complex
growth sensors, voice/video- analysis techniques, such as volumes of data in a
of data and to-text, and processing simulation and simple and
computing power is and other emerging technologies are optimization, are meaningful format
multiplying the technologies are increasing our ability making it possible to begins with the
number of creating data from to draw insights from pursue previously correct tool selection
opportunities to previously complex, messy, and out-of-reach insights and will ultimately
drive insights from non-quantifiable unstructured data. from data in (near) accelerate decisions
information. concepts. real time. and results.

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Digital is helping optimise the mining value chain

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The Evolution of Analytics Capability

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Industry 4.0 Maturity Matrix:
Digital Enterprises develop across six dimensions and four stages

Digital Vertical Horizontal Digital

I novice
II integrator
III collaborator IV champion
Business models, First digital solutions Digital product and Integrated customer Development of new
product & service and isolated applications service portfolio with solutions across supply disruptive business
portfolio software, network (M2M) chain boundaries, models with innovative
and data as key collaboration with external product and service
differentiator partners portfolio, lot size 1
Market & Online presence is Multi channel distribution Individualized Integrated Customer
customer access separated from offline with integrated use of customer approach and Journey Management
channels, product focus online and offline interaction together with across all digital marketing
instead of customer channels; Data analytics value chain partners and sales channels with
focus deployed, e. g. for customer empathy and
personalization CRM
Value chains, Digitized and automated Vertical digitization and Horizontal integration of Fully integrated partner
processes sub processes integration of process processes and data ecosystem with self-
and data flows within flows with customers optimized, virtualized
the company; and external partners, processes decentralized
intensive data use autonomy
IT Architecture Fragmented IT Homogeneous IT Common IT architect- Partner service bus,
architecture inhouse architecture inhouse tures in partner network secure data exchange
Compliance, Traditional structures, Digital challenges Legal risk consistently Optimizing the value
legal, risk, digitization not in focus recognized but not addressed with chain network for legal,
security & tax comprehensively collaboration partners, compliance, security and
addressed tax
Organization & Functional focus in Cross functional Collaboration across Collaboration as a key
culture „silos“ collaboration but not company boundaries, value driver
structured and consistently culture and encouragement
performed of sharing
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Companies need to decide how they want to develop their
digital maturity

Industry Players Digital Maturity

Transport- High Tech/ Manufac- Resources, Consumer Construction Chemicals
ation/ Electronics turing Energy and Goods
Automotive Utilities

Digital Maturity

IV
Digital
champion

III
Horizontal
collaborator

II
Vertical
integrator

I
Digital novice

Sources: PwC, Strategy& analysis – modified by Bas Mutsaers (just highlighting some areas for education purpose of Singapore Mines and not a position in the market)
FMG and Roy Hill being new to the model has good starting point through Greenfield opportunity and high Tech.
ConocoPhilips mature in central control room both Hor and Vert. Rio Tinto longest player digital. BHP following.
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 Several mega forces are reshaping the marketing, sales and
service environment, both in B2C / B2B
Overview of Trends in Customer Behavior
Trend Description Examples
1  App ecosystems as a central online location across all mobile devices
“Mobile First” is  More and more app ecosystems evolve across industries
 Apps decisive for online success of companies
the Reality Comprehensive
Mobile proposition
2
 Customers are more likely to respond to relevant communication at
Targeting & the right point in time – thus targeting becomes key
Analytics  Better targeting requires significantly better analytics capabilities Personalized ads
 Increase of sharing Data with Horizontal Value Chain Partners and shopping

3  Self-service is standard for digitally–affine target groups, as it enables

Dynamic more independent, faster and convenient interaction
User Experience  Interaction with face-to-face channels important Self-service
 Usage and migration forced by coupons, discounts and self-service prior to the journey

4
 Social Media is and will remain an important information channel
Unbounded  As a service channel social media is gaining importance
Collaboration  Forms a bridge between self-service and face-to-face channels Social Media
in Customer Service

5  Customers increasingly expect a seamless journey across all touch-points

Cross-channel  This requires to address the many, historically grown break-point and data
Distribution silos between the offline & online world and own vs. 3rd party distribution Cross-channel
experience world

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Other interesting developments

Source Hitachi – people tracking Detect or even interoperate with other Fleet or People
https://www.cat.com/en_US/by-industry/mining/surface-mining/surface-technology/detect.html

Before we cover our recent progress in some

of these areas: What are you working on
that is ahead of the curve?

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Live Demo – Power of Digital

PwC Web Server Combines

-GIS data
-UAV data
-AI (Artificial Intelligence)

October 2015
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Maps Google + UAV gives greater detail
Also various layers like height or additions for
work process

Bing MAPS combined with UAV data)

GIS Layers Make notes “Get rid of these tanks”

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Adding for example dust measurements or health
of vegetation

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“Boots on ground” during exploration or for
surveying. Coordinates on the map with links.

(2.5) 3D
In time

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Compare progress - Differences in Time for
operations or compliance

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Distance – Height – Volume on the fly.
Or maintenance constraints….

(2.5) 3D
In time

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Analytics foundation is there - not have to do this
tagging manually.

Demolished
Heavy Buildings
Earth
Equipment

Recognising
Sand VS
Chipping etc.
Water Dump
Truck

Asphalt

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Thank you

For joining “School of Mines”

Any questions?

Bas Mutsaers
PricewaterhouseCoopers
Clients & Strategy | Director Mining
Direct: +61(0)386030780 +61(0)447587091M
Email: Bas.Mutsaers@pwc.com
PricewaterhouseCoopers | 2 Riverside Quay Southbank VIC 3006
www.pwc.com.au | twitter.com/PwC_AU

The information contained in this presentation is of a general nature only. It is not meant to be
comprehensive and does not constitute the rendering of legal, tax or other professional advice
or service by PricewaterhouseCoopers Ltd. ("PwC"). PwC has no obligation to update the
information as law and practices change. The application and impact of laws can vary widely
based on the specific facts involved. Before taking any action, please ensure that you obtain
advice specific to your circumstances from your usual PwC client service team or your other
advisers.

The materials contained in this presentation were assembled in June 2015 and were based on
the law enforceable and information available at that time.

© 2017 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its
member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for
further details.