Irfan - OK - s42461-020-00262-1 PDF
Irfan - OK - s42461-020-00262-1 PDF
Irfan - OK - s42461-020-00262-1 PDF
https://doi.org/10.1007/s42461-020-00262-1
REVIEW
Received: 14 January 2020 / Accepted: 6 July 2020 / Published online: 23 July 2020
# The Author(s) 2020
Abstract
Innovation plays a critical role in the mining industry as a tool to improve the efficiency of its processes, to reduce costs, but also
to meet the increasing social and environmental concerns among communities and authorities. Technological progress has also
been crucial to allow the exploitation of new deposits in more complex scenarios: lower ore grades, extreme weather conditions,
deeper deposits, harder rock mass, and high-stress environments. This paper discusses the importance of innovation for the
mining industry and describes the mechanisms by which it is carried out. It includes a review of the drivers and actors involved
and current trends. The digital transformation process that the industry is going through is analyzed, along with other relevant
trends that are likely to shape the mining of the future. Additionally, a case study is presented to illustrate the technical and
economic implications of developing a disruptive innovation project.
along with analyzing the current status and expected future of of labor productivity while studying the decline and recovery
the mining industry, in terms of technological advance. of the US copper industry during the 1970s, 1980s, and 1990s.
The scope of this paper covers the mining industry in gen- The authors attributed most of the labor productivity increase
eral and its entire value chain (exploration, extraction, pro- in this period to the incorporation of the solver extraction and
cessing, and smelting and refining). However, by the nature electrowinning technology (SX-EW), along with the use of
of the topic, artisanal and small-scale mining have been most- larger trucks, shovels and drills, in-pit mobile crushers and
ly excluded from the analysis, considering the historical low conveyor belt systems, computerized scheduling of trucks,
degree of technological specialization in this sector. Also, for and real-time process controls.
the illustration and exemplification of certain points made in In a later study, more concrete evidence regarding the pre-
this document, a special focus has been put in the large-scale viously mentioned was provided [6]. Since the exploitation of
copper mining sector and the main copper producer countries. new deposits can have an impact on the aggregated labor
productivity, the authors built two scenarios to analyze this
index between 1975 and 1995: one, considering only the
2 Innovation in the Mining Industry mines operating at the beginning of the studied period, and
therefore, excluding the effect of new mines, and two, the
Cambridge Dictionary defines innovation as a new idea, meth- actual situation, including both old and new operations. In
od, design, or product, as well as its development or use [2]. In Fig. 1, the adjusted curve represents what labor productivity
general, innovation can be understood as a process of change, would have been if no new mines would have entered in
through which a new idea or solution is applied in a good, operation in this period of time. As shown, adjusted and actual
service, or productive procedure to create value and meet new labor productivity resulted to be not so far different; thus,
requirements from customers and higher safety or environ- approximately 75% of the productivity growth in the US cop-
mental standards, among other goals. per industry over those years came from productivity im-
In this section, the importance of innovation for the mining provements at individual mines (i.e., innovation and techno-
industry is discussed. Firstly, the relation between innovation logical advances), despite the exploitation of new deposits.
and labor productivity is examined. Then, a general view re- Under a similar methodology, the labor productivity
garding the innovation dynamics within the industry is pro- growth in the Chilean copper industry during the 1978–1997
vided, exploring the main drivers and actors involved. period was analyzed (Fig. 2) [7]. Their findings, though not as
dramatic as in the US copper industry, showed that innovation
2.1 Innovation and Labor Productivity and the introduction of new technologies were responsible for
approximately a third of the productivity growth in the total
A first approach to understand the relevance of innovation period. Specifically, during the years prior to 1990, this factor
within the industry can be made through the analysis of labor accounted for the total growth, while in the 1990s, the devel-
productivity. Technological advances usually have an impact opment of new world-class mines (e.g., Escondida) turned
on the output, allowing larger production rates while main- over the scenario. Nevertheless, these results were coherent
taining a similar workforce, or directly reducing the needed
personnel by the automation of processes. Nevertheless,
changes in labor productivity of a mine may be caused by a
series of other reasons. Natural factors, such as decreasing ore
grade and deepening of deposits, mean that a larger amount of
material in more complex situations must be removed to ob-
tain the same final metallic output, thus impacting negatively
on labor productivity, while, in an aggregated view (e.g.,
when analyzing the mining industry of an specific country),
the discovery and exploitation of new and better deposits can
also positively impact the overall labor productivity [3]. On
the other hand, in a high-price mineral commodities scenario,
companies are willing to compromise their costs in order to
increase production (because it is profitable) and, therefore,
reduce their labor productivity [4].
Several authors have analyzed the behavior of labor pro-
ductivity in specific mining industries in an attempt to isolate Fig. 1 Labor productivity in the US copper mining industry, actual and
the effect of innovation. Tilton et al. [5] first introduced the adjusted to exclude the effects of changing location of output , 1975-
importance of innovation and new technologies in the growth 1995. Modified from [6]
Mining, Metallurgy & Exploration (2020) 37:1385–1399 1387
Fig. 2 Labor productivity for the Chilean copper industry, actual and
Fig. 4 Labor productivity of the mining sector of selected countries, for
constrained (or adjusted) assuming no change in the location of mine
the period 1995–2013. Annual value presented as a percentage of labor
output 1978–1997 (tons of copper contained in mine output per copper
productivity in 1995 (100%). Modified after [4]
company employee). Modified after [7]
with the findings of previous studies on the US copper indus- economic factors. On one side, while reserves are depleted,
try, regarding the role of innovation in improving the compet- ore grades tend to decrease and the operation advances to
itiveness of the mining industry. deeper locations, increasing hauling distances, stripping ratio,
More recent research on the copper industry of Chile and and geotechnical difficulties, all of which have a negative
Peru has presented additional supporting evidence that, impact on labor productivity. On the other side, in a period
though not the only factor, innovation, including the adoption of high mineral commodity prices, like the one that the indus-
of new technologies and managerial changes, remains as a key try went through during the second half of the 2000s and the
element for the improvement of labor productivity [3]. beginning of the following decade, mining companies will
When looking at the following time period (late 1990s to favor production growth despite productivity [4].
early 2010s), the situation presents a dramatic change. From As presented, labor productivity is affected by a series of
2005 onward, the average labor productivity of Chilean mines factors, mainly by natural characteristics of mineral deposits,
suffered a sharp decline, as shown in Fig. 3. The same situa- market conditions, and innovation. While in periods of labor
tion can be observed in other main mining countries, like productivity growth it has been possible to isolate the positive
Australia, Canada, and the USA (Fig. 4). Labor productivity effect of innovation, during declining cycles, this task turns
in these countries started falling in the first years of the 2000s. more complicated. However, the fall in these periods is attrib-
This decline can be attributed to a combination of natural and uted mainly to natural and economic factors. In the meantime,
innovation remains crucial to maintain the competitiveness of
the industry, to the extent possible, providing the methods and
tools to overcome the natural challenges faced by modern
mines and exploit new and more complex deposits. In other
words, while declining labor productivity may be inevitable
during certain periods of time, the development and adoption
of new technologies, along with innovation at a managerial
level, are essential to maintain mining’s competitiveness
through the different cycles.
construction and mining activities in projects and operations. their innovation projects were driven mainly by direct solu-
These include the development of methods, techniques, and tions requirements from their customers, the necessity of
technologies to accomplish these tasks and therefore liberating staying ahead of the competition and by having innovation
their clients, the mining companies, from the technological as core to their business strategy [15].
concerns. Besides the dynamics involved in the development of tech-
Leading technology suppliers, such as Sandvik, Epiroc, nologies, either by mining companies themselves or their sup-
and Caterpillar, among others, have not only focused in the pliers, the mining industry is also recognized for its capacity to
development of new equipment according to the technological adopt technologies from other industries. ICTs have facilitated
and sustainability trends (currently, on automation and the introduction of important improvements in exploration
electromobility), but they have also put effort in the develop- techniques, mining, and processing. Simulations, sensor sys-
ment of the proper digital systems for the operation and coor- tems, automation and remote-controlled operations are some
dination of these machinery within the operations (e.g., examples [8].
AutoMine® from Sandvik). Nowadays, ICTs offer a new level of technological ad-
Though large global suppliers are important actors for the vance from the hand of digital transformation. The extractive
development of new technologies, the outsourcing tendency industry finds itself in the early stages of adopting these new
previously mentioned has also opened the opportunity for the technologies. The full potential of their applicability for min-
emergence of local knowledge intensive mining suppliers. ing processes is yet to be unlocked. The implications of the
These firms hold specific local knowledge that allows them current trends of Industry 4.0 for the mining industry are
to provide customized solutions for mining companies in discussed and analyzed in the following section.
niches that cannot be covered by the standardized products
offered by large global suppliers [12].
Also, this outsourcing trend has promoted the creation of 3 Current Trends and Mining of the Future
collaboration initiatives between large mining companies, lo-
cal suppliers, and governmental and academic institutions for Defining a future view for an industry is not a simple task.
the development of technological solutions. Instances like Nowadays, the world is changing faster than ever before. New
these can be found in Australia, Chile, and Brazil [11]. In technologies are developed every day, impacting the way peo-
Chile, for example, the World-Class Supplier Program, a ple live. The phrase “we live in a different world than the one
public-private partnership between the mining companies where our parents grew up” does not completely cover the
BHP, Codelco, and Antofagasta Minerals; Fundación Chile reality of the past few decades. For example, in current days,
and other governmental institutions; and more than 75 local most people would not conceive their lives without their
suppliers has already developed over a hundred innovation smartphones, and even though the first ones were commer-
initiatives since it was launched in 2009. Though the program cialized in 1992, the massification of these devices came only
has had a positive impact in the development of the a little more than a decade ago (e.g., the first iPhone was
knowledge-intensive mining supplier sector in Chile, certain developed in 2007).
challenges need to be faced to bring this sector to the next Nevertheless, in the case of the mining industry, it is pos-
level of progress. Among these challenges, it is necessary to sible to identify certain trends that can be of help to outline this
escalate the program, promoting high-impact and long-term future scenario. First and most evident, it is the major techno-
innovation projects, despite the usual incremental technolog- logical shift occurring across all industries: the so-called
ical solutions developed until now [13]. Fourth Industrial Revolution, or simply Industry 4.0, as the
Unlike most mining companies, the supplier sector holds in transition to the digital era. Then, social and environmental
high priority the innovation agenda. A survey conducted on concerns are already compelling mining to look for safer,
432 firms from the Mining Equipment, Technology and more efficient, and sustainable ways of conducting the busi-
Services (METS) sector in Australia, in 2015, revealed that ness. Reduction of energy and water consumption, lower
for 63% of these companies innovation was core to their busi- emissions, and waste generation are all factors that will be in
ness strategy, driven mainly by a customer-focused vision, the the core of the “mine of the future.”
necessity of staying ahead of the competition and direct solu-
tions requirements from their customers [14]. 3.1 Digital Transformation in Mining
A similar view is shared by the mining supplier sector in
Chile. One hundred five of these companies were surveyed in Over recent history and since the beginning of industrializa-
2019, revealing a high level of innovation-aimed expenditure. tion, several changes in production paradigms have taken
On average, they reported innovation expenses for 14.3% of place, promoted by the surge and application of novel tech-
2018 revenues, reaching levels of 28.7% and 22.3% in the nologies. As shown in Fig. 6, the world has already seen three
medium- and small-scale suppliers, respectively. Likewise, paradigm shifts, better known as industrial revolutions.
1390 Mining, Metallurgy & Exploration (2020) 37:1385–1399
technologies that represent the pillars of the DT in the mining objects, such as sensors, equipment, machinery, and oth-
industry [19–27]. These key elements are described below. er sources of data. The elements connected to this net-
work can then interact, exchange information, and act in
Automation, Robotics, and Remote Operation These technol- a coordinated way [31]. Thanks to advances in IoT tech-
ogies might hold the highest level of implementation among nology, nowadays, it is possible to establish low-cost
the tools offered by DT. The first and more clear benefit of the networks. Additionally, the development of smart sensors
automation of processes, use of robots in critical activities, and allows real-time capture of data from machines and
remote operation centers (ROC) is the improving of safety, by equipment across the operation. This generation of data
reducing the number of operators required in hazardous sites is the base to conduct an integrated planning and control,
[25]. considering the different units within the operation, and
ROCs can also significantly reduce OPEX and CAPEX of support the decision-making process [20].
mining operations. Since less workforce is needed at the mine
site, fewer or none supporting infrastructure is required, such Analytics, Artificial Intelligence (AI)/Machine Learning (ML)
as housing installations, hospitals, or schools. Also, other ex- Due to the digitization of processes, advances in IoT, and
penses are reduced, such as transportation of operators. The real-time data capture, mining operations have enormous
impact on costs is larger as the location of the mine is more amounts of data available regarding production, processes,
remote, distant, and isolated [25]. and performance of machines, among others. Through ad-
The use of autonomous equipment, such as hauling trucks, vanced analytics methods, it is possible to transform this in-
LHDs, and drillers, is expanding rapidly. For example, global formation allowing its use for a better planning of activities
equipment manufacturer Caterpillar has already provided and to support fast and effective decision-making processes
more than 239 autonomous trucks for large-scale mining op- for the operation. Predictive models can also be developed to
erations in Australia, Brazil, Canada, and the USA [28]. enhance maintenance of equipment, therefore improving pro-
Similarly, Komatsu holds a total fleet of 141 autonomous ductivity [21].
trucks distributed in Australia, Canada, Chile, Japan, and the AI/ML methods are also being applied for mineral
USA. In Chile, these vehicles operate in Codelco’s mine prospecting [32–34]. It is expected that these methods will
Gabriela Mistral. Over the 10 years of operation of the mine, optimize the prospection and exploration activities, reducing
the use of autonomous trucks has allowed a significant colli- costs and improving their accuracy.
sion risk reduction and high levels of productivity and tires
performance [29]. Digital Twinning The concept of digital twinning refers to the
By February 2020, a total of 459 autonomous haul construction of a digital model of the physical operation. This
trucks were accounted as active in mining operations is possible using the geological and engineering information
around the world [30]. Though these equipment still rep- of the site, but more importantly, thanks to the real-time data
resent less than 1% compared with the total of manual generated from the sensors connected across the operation.
trucks currently operating,1 they are characterized as high With the digital twin of the mine, it is possible to perform
year-to-year growth: 32% in the 2019–2020 period and simulations and predict potential failures or downturns in
higher rates are expected for the next years, from the equipment performance. Thus, the digital twin constitutes a
hand of significant investments made by major compa- useful tool to improve operational planning and reduce oper-
nies such as BHP, Fortescue Metals Group, Rio Tinto, ational costs, by avoiding unexpected interruption in produc-
and Hancock Prospecting in Australia and Suncor Energy tion processes and optimizing the maintenance of equipment
and Canadian Natural resources in Canada. [20, 21].
In general terms, besides the benefits in safety, auton-
omous equipment enhance productivity and reduce oper- 3.1.3 Current Status of DT in the Mining Industry
ational costs, by increasing equipment’s utilization (due
to the continuous operation), reducing variability in the In its study of 2017, the World Economic Forum and
production outcome, and improving tires and components Accenture estimated a potential benefit for the mining indus-
performances [20, 29]. try, as a consequence of DT, of US$ 190 billion over the
period 2016–2025, equivalent to approximately 9% of the
Internet of Things (IoT), Smart Sensors/Real-Time Data industry’s profit [26]. Correspondingly, in the USA, the min-
Capture IoT is understood as a network of physical ing industry has been included among the group of sectors
with potential to increase productivity from the further digiti-
zation of its assets, customer relations processes, and transfor-
1
According to data from The Parker Bay Company. Available in: https:// mations in its workforce [35]. These expectations are aligned
parkerbaymining.com/mining-equipment/mining-trucks.htm with the results of a survey conducted by Accenture in 2014
1392 Mining, Metallurgy & Exploration (2020) 37:1385–1399
goals and a strong commitment from the top management. 3.2.1 Electromobility
Otherwise, DT initiatives will remain as isolated IT projects,
with no significant benefits considering the investments in- Electromobility, as the development and use of electric-
volved [22, 23, 41]. powered vehicles, is a technological trend across industries.
Ensuring the convergence of IT and OT (operational tech- From personal-use cars and public transportation vehicles, to
nology) is also key for a successful DT. These areas have heavy machinery, electromobility offers an economical and
traditionally worked by different paths: IT closely to corporate more environmentally friendly alternative to the use of fossil
and support systems, while OT running core processes at the fuels.
operation site. However, the automation of processes requires Mining is especially affected by this paradigm change.
an integrated IT/OT management [20]. Most mobile equipment in mining operations has been histor-
DT is a process of change that goes beyond technology. As ically powered by internal combustion engines (ICEs), using
mentioned in the first paragraph of this section, it requires diesel fuel. While the impact of the negative aspects of these
coordination across the whole company. But it is also impor- engines might be bearable in open pit operations, in under-
tant to understand what this transformation will mean at an ground mines, where ventilation can account for up to 25–
organizational level [22]. Structures will suffer changes by the 40% of the total energy costs, the situation is different [43].
automation of processes and introduction of new technologies Diesel ICEs emit exhaust gases containing a series of pollut-
and methods. For example, a recent study revealed that around ants, such as unburned hydrocarbons (HC), carbon monoxide
80% of the current labor competences in the mining sector in (CO), nitrogen oxides (NOx), and diesel particulate matter
Chile will potentially change in the middle and long term as a (DPM). Additionally, a large amount of heat is also produced.
consequence of the technological progress. Even more, at least All these elements increase the demand for fresh air flow in
40% of them have a high probability of being replaced by order to ensure a proper working environment for operators
automated processes [42]. This situation must be considered and equipment, having a significant impact on costs [44].
and evaluated. The new structures must be designed in ad- Moreover, due to the increasing environmental and safety
vance and action must be taken to prepare the employees for awareness in the industry, regulations regarding the admissi-
these new arrangements. New knowledge and skills will be ble levels of pollutants have become stricter in the past de-
required, so the firms should also invest in the proper training cades and are likely to become even stricter in the future. At
programs to face DT. the same time, after exhausting shallow deposits, mining is
Finally, in an increasing digital environment, a special fo- moving to deeper locations, aggravating the temperature con-
cus must be put in cybersecurity. DT brings a wider connec- ditions [45].
tivity among equipment and sensors but also between differ- Even though some methods to provide electric power have
ent business units. The company could then be exposed to been used for a long time already (e.g., trolley assist), today
greater risks of security breaches. For this reason, cybersecu- there are more incentives to look for electric-powered alterna-
rity constitutes a fundamental element in DT [20, 25]. In fact, tives to replace the mobile equipment that have been predom-
[41] also classified this issue as the fourth most important risk inantly running with diesel ICEs, like LHDs and haul trucks.
for the mining industry in 2019–2020. To overcome this risk, According to the method used to supply the motor with elec-
a solid “cybersecurity culture” must be promoted in every tric energy, this equipment can be classified into five catego-
level of the organization, incorporating new security-related ries [45]:
practices in the daily responsibilities of the employees, along
with the measurement of relevant KPIs and a periodical revi- & Trolley powered
sion of the adopted strategies to evaluate their effectiveness & Battery powered
and generate improvements, if necessary [41]. & Cable powered
& Hybrid ICE/electric equipment
& Hydrogen fuel cell powered
3.2 Mining beyond DT
In Table 1, a summary of the differences among diesel-
In parallel with the technological wave brought by the digital powered equipment and the categories mentioned of electric-
transformation, a series of other trends have been gaining powered equipment, according to key operational, environ-
relevance in the mining industry over recent years. Driven mental, and economic parameters, is presented.
by safety and environmental concerns, cost reduction, en- In general terms, the main advantages of electric-powered
hancement of efficiency, and productivity in the operation, over diesel-powered equipment are higher energy efficiency,
or a mix of these motives, these trends are complementary to higher service life (and, therefore, lower fleet requirements
the technologies 4.0 and offer an idea of the future paths that along the life of the mine), lower maintenance requirements,
mining might follow. reduced generation of pollutants, heat and noise, and overall
1394 Mining, Metallurgy & Exploration (2020) 37:1385–1399
lower operating costs. The lower ventilation requirements can 3.2.2 Invisible Zero-Waste Mining
also have an impact on the CAPEX of the mining project, by
reducing the size of ventilation adits and fans. On the down- The concept of a mining with no impact on the surface is not
side, electric-powered equipment usually presents higher new. Underground operations have been using their waste
CAPEX and, depending on the type, can present some other material to backfill open cavities left after ore extraction,
disadvantages (Table 1). Also, the specific conditions of the mainly for stability reasons and as a mean to reduce haulage
operation can affect the preference for one specific technolo- costs. At the same time, this practice reduces subsidence effect
gy, e.g., open pit vs. underground, haulage distances, deep- and, therefore, the impact on the surface above the under-
ness and rock temperature, regulations of the country, and ground mine. However, it is not possible to use all the waste
diesel and electricity prices. For these reasons, an integral extracted due to interference with the operation (e.g., during
techno-economic evaluation must be conducted in each case. early development stages). Also, not every mining method
Nevertheless, a lot of effort is currently being put in R&D allows backfilling application (e.g., caving operations).
regarding electric-powered equipment, especially battery and Therefore, it is certain that impact on the surface can be sig-
hydrogen fuel cell-powered. These show the greater potential nificantly reduced, but most of the time it is unavoidable.
to replace diesel equipment, due to their high flexibility, be- In this regard, in situ leaching (ISL), also referred to as in
sides the safety and environmental advantages already men- situ recovery (ISR), constitutes an alternative that minimizes
tioned [43]. the effect on surface and generates practically zero waste. This
Main mining equipment manufacturers have already devel- method is understood as the in-place leaching of the ore, re-
oped several models of battery-powered vehicles. The covery of the enriched solutions, and their transportation to the
Epiroc’s “zero-emission fleet” for underground operations in- surface for further processing.
cludes the Minetruck MT42 Battery (articulated low-profile ISL has been mainly applied in uranium mining (since it
truck), Boomer E2 Battery (drill rig), and the Scooptram ST14 was first introduced in 1959 in the U.S.). There is also a record
Battery (LHD) [47]. In the meantime, Caterpillar continues to of successful cases of ISL applied in copper and gold deposits,
develop its R1700 XE battery-powered LHD [48] and though in relatively small scales. Besides typical characteris-
Sandvik works on its LH514BE battery-assisted LHD (as a tics of deposits (e.g., shape, dimensions, mineralization, grade
combination of battery and tethered cable) [49]. distribution), the most critical factors restricting its applicabil-
Though the transition to electric mining equipment has ity are permeability, hydrogeological conditions in site, and
been relatively slow, it is difficult to think of a mining industry the possibility of achieving selective leachability of the ore
of the future still depending on fossil fuels. The shift to cleaner body [50]. Containment of the leaching solutions within the
sources of energy is global: industries and governments across zone of interest to prevent the contamination of groundwater
the world are implementing renewable energy sources strate- might be the greatest environmental risk regarding ISL [51].
gies and policies, regulations are becoming stricter and social From an economic point of view, ISL presents obvious
scrutiny harder. Electromobility has arrived to stay and the advantages over traditional mining methods. Energy con-
mining industry is not excluded from its influence. sumption is reduced, thus lower OPEX needs to be met. ISL
Mining, Metallurgy & Exploration (2020) 37:1385–1399 1395
also requires lower CAPEX for infrastructure and mine devel- (MSR), and a mobile belt wagon (MBW) that connects to a
opments. Additionally, this mining method admits a high pro- belt conveyor (BC). Due to its continuous truckless design,
duction flexibility and can be developed as a modular project, the project has reported high operating productivity rates
if desired [50]. (about four times higher than Vale’s typical rates in the region)
Future widespread application of ISL depends greatly on the and lower operating costs (approximately three times lower
technological advance regarding permeability enhancement and than Vale’s traditional cost levels in the region) [54].
hydrogeological management. Findings in preconditioning tech- Initiatives in underground mining have also been devel-
niques used in caving operations are likely to be adapted and oped. Such is the case of the Continuous Mining System
applied in ISL mining for permeability improvement. Pilot tests (CMS) for caving operations, introduced by Codelco in
of in situ bioleaching have shown that it is possible to enhance Chile. This design considered the continuous and simulta-
permeability within the orebody after the application of condition- neous extraction of broken ore from active drawpoints in a
ing methods, such as hydraulic fracturing and water pressure block or panel caving mine, by the combined action of feeders
blasting [52], whereas the use of barriers, such as the gel barriers (located at the drawpoints), heavy weight conveyors, and pri-
widely used in the oil and gas industry to control the flow of mary crushers [55].
sweep and production, are also potentially applicable for this min- After almost 20 years of research and testing, the project
ing method as a tool for proper leaching solutions containment was finally dismissed as a consequence of difficulties faced in
[53]. For these reasons, R&D efforts should be mainly aimed at the construction phase for its industrial validation [56]. Thus,
the adaptation and improvement of existing technologies. the design did not get to be tested at an industrial level, and
Besides environmental benefits of this method, if the re- therefore, its real potential and applicability remained unclear.
strictions mentioned can be overcome, ISL opens the possi- However, previous tests and studies suggested that great ben-
bility to exploit very deep low-grade deposits, currently un- efits in terms of productivity, costs, workforce requirements,
economic or technically infeasible to mine. and ramp-up duration can be achieved through the implemen-
tation of the CMS [57].
3.2.3 Continuous Mining
The concept of continuous mining for caving operations was After years of research since the concept was first introduced
first introduced by Codelco and its Institute for Innovation in in 1998, the process validation for the CMS design was car-
Mining and Metallurgy, IM2, in 1998. It was conceived as a ried out in three phases.
tool to face the future challenges of underground mining, spe-
cifically the necessity of increasing extraction rates and im- 4.3.1 Phase I (2005): Dozer Feeder
proving safety [59].
This mining design was based on the following key ele- The first phase took place in Codelco’s Salvador Mine, in
ments [59, 60]: 2005. It was focused on the validation at a pilot level of the
concept of continuous extraction. For this, the extraction of
& Application of preconditioning to ensure a proper frag- ore from one drawpoint by a prototype of a dozer feeder was
mentation of the rock mass and an uneventful flow of tested.
broken ore through drawpoints The test showed the capacity of the dozer feeder to extract
& Continuous and simultaneous extraction from active the ore from the drawpoint at a reasonable rate (200 t/h on
drawpoints by dozer feeders, increasing extraction rate average), allowing a proper flow within the ore column [55].
and utilization With these positive results, the process validation moved for-
& Continuous transport of material by panzers ward to Phase II.
& Early size reduction of ore by sizer crushers
& Remote operation of the system, reducing the exposition 4.3.2 Phase II (2006–2008): Module CMS
of workers, and increasing productivity
The second phase in the process validation of CMS was also
The CMS comprised dozer feeders at the drawpoints, pan- executed in Salvador Mine. This time, a prototype of a mod-
zers to collect and transport the broken ore from the dozers to ular system of continuous extraction, haulage, and crushing
the sizer crushers, and finally the sizers themselves. Changing was tested. The module considered one haulage drift with four
the operation of LHDs for a continuous material handling drawpoints, each one of them with a dozer feeding the panzer,
system also requires a reorganization of the layout of the ex- which transported the ore to a roller impact crusher [57]. The
traction level. The basic differences between the El Teniente module was built between 2006 and 2007 and the test itself
layout (typically used by Codelco in its caving operations) and carried out between 2007 and 2008. During this period, ap-
the CMS layout are presented in Fig. 9. proximately 200,000 t were extracted in total. The results
achieved in Phase II were satisfactory, in terms of the perfor-
mance of the different equipment and their interaction, though
the roller impact crusher was dismissed for further tests due to
its low availability and high components wear. In its place, a
sizer crusher was incorporated afterwards [60].
& Instant production rate: 3 t/m2-day 4.4.3 Infrastructure Required and Coordination
& OPEX: 20% lower with the Operation
& Workforce requirements: 30% lower
& Ramp-up period: 25% shorter New designs for extraction and material handling methods
& Improvements in safety and energy efficiency must be proved under real conditions for their industrial val-
& Net present value for its application in Chuquicamata: idation. For this, first the company needs to have access to
US$ 1000 million ongoing mining operations, of its own property or coordinate
with another company, in other cases. Then, a proper coordi-
The construction of the test module started in 2012. nation with the current operation must be conducted, to min-
However, due to significant deviations in the execution period imize interferences and ensure the availability of resources
and budget, the works were stopped in December 2015. After (e.g., energy, water).
more than 2 years of being paralyzed, and in the light of new It is important to highlight the relevance of the CMS pro-
studies and re-evaluations performed by Codelco, the project ject, regarding its potential to improve extraction rates and
was finally cancelled in 2018, totaling US$ 138.1 million of safety in caving operations. Material handling systems
loss [56]. through batch operations, such as the use of trucks and
LHDs, are highly inefficient, from a macro point of view.
Equipment show low levels of utilization and the productivity
4.4 Analysis and Discussion of the overall operation remains restricted. The design pro-
posed by the CMS initiative offered the possibility of achiev-
From Codelco’s experience in the process validation of the ing higher production levels with lower requirements of active
CMS innovation project, several key elements can be identi- area, reducing CAPEX and OPEX, and gaining future divi-
fied, and lessons can be learned: dends of the project earlier in time. All these factors have a
positive effect on the economic indicators of a mining project:
4.4.1 Time required for Process Validation net present value increases and payback period is reduced, for
example.
Developing an innovation project for a technological break- Finally, continuous mining and automated operations are
through often requires long periods of time. Since the idea is trends that will likely shape the mining of the future.
conceived, conceptual studies must be carried out before ini- Initiatives like the CMS design should not be immediately
tiating pilot and industrial validation tests. In the case of dismissed, especially considering that this particular project
Codelco’s CMS, over 20 years passed since the concept was failed in the construction stage of its industrial validation
first introduced until the industrial validation project was fi- phase, having no chance to prove its applicability (or inappli-
nally cancelled. During this time, other technologies are de- cability) in a real operation.
veloped, which can be incorporated in the innovation project
being tested, changing its potential value and future impact of
its application. Specifically, during the process validation of 5 Conclusions
CMS, significant advances were made in preconditioning
techniques and digital technologies (e.g., automation, robot- Innovation plays an important role in the mining industry as a
ics). The project team must evaluate the impacts of new tech- tool to improve the efficiency of its processes, reduce costs,
nologies developed along the way and incorporate them in the but also to meet the increasing social and environmental con-
project if they prove to add value. cerns among communities and authorities. Technological
progress has also been crucial to allow the exploitation of
new deposits in more complex scenarios: lower ore grades,
4.4.2 CAPEX and Execution Period Estimation extreme weather conditions, deeper deposits, harder rock
mass, and high-stress environments.
Process validation can be expensive, especially the industrial That is, the importance of innovation for the mining indus-
validation phase. Special care must be taken in the economic try, as a critical factor in the improvement of labor productiv-
evaluation that justified the project and in the execution time ity through past decades, was analyzed. Though its relevance,
and budget estimation. CMS project was stopped and finally mining companies usually show low levels of R&D intensity,
cancelled due to problems in its construction phase, not be- similar to mature industries and far from high-tech sectors.
cause of unsatisfactory results of the test itself: this did not The tendency to vertical disintegration has led firms to focus
even get to be executed (similarly, also the first Epiroc Mobile on their core business, relying mainly on equipment manufac-
Miner—back then Atlas Copco—was initially not accepted turers and suppliers for the development of innovative solu-
for prototype testing by the foreseen mine site [61]). tions. Also, collaborative alliances between mining
1398 Mining, Metallurgy & Exploration (2020) 37:1385–1399
companies, suppliers, and research centers share a significant Open Access This article is licensed under a Creative Commons
Attribution 4.0 International License, which permits use, sharing, adap-
participation in the development of new technologies. tation, distribution and reproduction in any medium or format, as long as
Nowadays, several technological trends can be identified as you give appropriate credit to the original author(s) and the source, pro-
main factors that will shape the mining of the future. The first and vide a link to the Creative Commons licence, and indicate if changes were
most relevant one is the digital transformation (DT), as the pro- made. The images or other third party material in this article are included
in the article's Creative Commons licence, unless indicated otherwise in a
cess of adoption and incorporation of a set of tools, the so-called credit line to the material. If material is not included in the article's
technologies 4.0, into the mining business. Automation, robotics, Creative Commons licence and your intended use is not permitted by
remotization of operations, internet of things, analytics, and dig- statutory regulation or exceeds the permitted use, you will need to obtain
ital twinning, among others, have the potential to enhance pro- permission directly from the copyright holder. To view a copy of this
licence, visit http://creativecommons.org/licenses/by/4.0/.
cesses along the whole value chain of mining. However, though
DT is frequently mentioned as one of the main concerns among
most large-scale mining companies, the level of digitization of
the industry remains low, indicating that most of the potential of
DT for the sector is still to be unlocked. The main challenges that References
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