The CIO Saga

Chapter 3: Benefits of CIOs in the Mining Industry and Recommendations for Successful Implementation

Date: 09/04/2023

Authors: Ariana Carrazana Di Lucia, Herman Aguirre-Jofré

This column is sponsored by Pi Data Consulting, our strategic partner in mining technology development.

We've reached the end of our Saga. Up to this point, we've shown you how CIOs are transforming the way business is done and how, when well thought out, they are a powerful tool that can change how companies operate.

The Star Wars story was delivered in episodes that didn't follow a chronological order. However, over the years, directors have shown that the technology represented on the big screen and in the galaxy doesn't necessarily have a linear temporality. Science fiction stories show that societies inhabiting space have windows of time with advanced technology, but they later experience dark ages where knowledge is lost due to neglect. Despite that, literature and cinema teach us that there is something that seems to remain ever unchanging: Information is power. And CIOs are information.

Now we will tell you how we can replicate them in Mining!

Specifically, in the mining industry, CIOs have enabled greater efficiency in the value chain, cost reduction, and increased safety in operations. Furthermore, CIOs enable decision-making based on globally integrated information systems, which enhances the ability to respond to critical situations.

If you're interested in implementing a CIO in your mining company, this blog also offers recommendations for successful implementation. The strategic vision of the mining industry should focus on sustainability, efficiency, and innovation, and a well-designed Integrated Operations Center can play a fundamental role in collecting data, optimizing operations, and supporting informed decision-making to achieve strategic goals. Don't miss the opportunity to improve your mining operations with cutting-edge technology!

The Case of Mining

Many large mining companies had the capacity to command equipment remotely, but there was no real pressure to use these Integrated Operations Centers (CIOs). As the COVID-19 pandemic accelerated innovative work practices, mining companies began reinventing their operational models to provide more productive remote workplaces. Some mines with CIOs are described below:

1. RIO ROC Control Room & Office (Australia): Completed in 2009, the remote operations center manages Rio Tinto's trains, trucks, and drills from 1300 kilometers away in Pilbara. The control room is a mission-critical operations center that serves as the brain of Rio Tinto's iron ore operations [1].
2. Bauxite Integrated Operations Centre (BIOC) Brisbane (Australia): Created in February 2019 with an end-to-end supply chain vision, BIOC enables Rio Tinto to prepare refineries and smelters for process adaptations without significant disruptions [2].
3. IROC Control Room and Operations at ArcelorMittal Mining: This Integrated Remote Operations Center in Canada (IROC) aims to optimize the entire supply chain from the mine to the mill and port [3]. It was inaugurated in 2015 [4].
4. Sandfire MATSA (underground mining, Spain): An integrated operations center for the Aguas Teñidas and Magdalena mines, with connections to Scada, Dispatch Piltram, remote control rooms for surface-to-underground operations, and more [5-6].
5. Los Bronces (Chile): Anglo American's Integrated Operations Center, inaugurated in April 2021, features artificial intelligence technologies and work routines for monitoring geomechanics, drilling, loading, transportation services, mining services, crushing, milling, flotation, pulp transport system, cathode plant, support areas such as maintenance through equipment condition monitoring, supply and product logistics, mine planning and metallurgy, to optimize the production chain [7].
6. Integrated Operations Center (CIO) Mina Quellaveco (open pit, Peru): Recently inaugurated by Anglo American in June 2022, it is an integrated operations center with process control from the mine to the plant [8-9].

Mining companies worldwide are transitioning from crisis mode to establishing CIOs as the next normal for their operations, seeing these centers as a collaborative model for remote work, with an architecture that allows companies to capture the value of having multifunctional high-performance teams under one workplace [10].

Successful CIOs for the mining industry will be those defined as smarter, safer, more productive workplaces that drive decision-making based on globally integrated information systems.

Government Recommendations for Creating Centers

Building an Integrated Operation and Strategy Center is a significant investment for companies in a country; therefore, its correct design and subsequent implementation are crucial to avoid project failures. The UK government has taken the development of these centers seriously in terms of security and has gone a step further by encouraging the correct development of Security Operations Centers through the delivery of basic guidelines with operational models and components to consider [11]. The following points are considered key elements in the guide:

1. Operational Model: Elements to consider and design of the operational model.
2. Systems required to develop the model.
3. Detection system.
4. Incident management.

Final Thoughts

In the Chilean mining industry, Accenture [12] estimates that 38% of the operations of the top five companies (CODELCO, BHP, Antofagasta Minerals, Anglo American, and Teck) have an operational center or one in progress. As of March 2021 estimates, seven of the eighteen Chilean operations are trending in this direction, making them pioneers in LATAM under this business approach.

Over the last five years, numerous advances have been observed in the definition and construction of Integrated Operations Centers called Tactical CIO-T, a trend observable in the Chilean mining industry but not in other regions studied by MiningiDEAS, such as Australia, Canada, or Europe, where CIOs incorporate both tactical and strategic aspects regardless of the industry where this working methodology is developed.

Currently, there are recognized styles of Integrated Remote Centers (also called IRC) that could incur silo problems if not properly managed and interconnected. As early as 2007 [13], they were listed as follows:

1. Strategic IRC: for remote performance evaluation and business planning.
2. Design IRC: for remote design and production planning.
3. Maintenance IRC: for remote maintenance issue resolution and reliability planning.
4. Operational IRC: for monitoring and controlling remote operations.

Perhaps we will see a change in how these CIOs are projected in the future, addressing an integrated vision of these 4 key aspects (strategy, design, maintenance, operation) that will determine the success of these facilities within a real collaborative environment.

From our perspective, CIOs in the mining industry must evolve towards long-term strategies that enable:

1. Data integration: The CIO should collect and analyze data from various areas, such as production, safety, environment, social license, governance, finance, to gain a comprehensive view of mining operations and market evolution.
2. Real-time monitoring: The ability to monitor mining processes in real-time and detect potential issues is crucial for making informed and preventive decisions.
3. Advanced analytics: Incorporating advanced analytics capabilities to identify patterns and trends, aiding in strategic planning and anticipation of challenges.
4. Automation and control: Implementing automated control systems to improve efficiency and reduce human risk in hazardous tasks.
5. Communication and collaboration: Facilitating communication across different departments and hierarchical levels for better coordination and alignment with the strategic vision.
6. Flexibility and scalability: Designing the CIO to adapt to changing industry needs and allowing for future expansions.

And what will happen when we decide that CIOs should no longer be physical workplaces but should be virtual "CIO-v"...

Throughout all the volumes of Star Wars, you felt, or you will feel if you haven't watched these incredible movies yet, that technology allowed species to expand to all corners of the galaxy, eliminating planetary and cultural barriers. But the movies also make it clear that the goodness and good practices of the Jedi warriors are essential to mastering the Force. In science fiction as in real life, it is beings (humans) who create, execute, and enable paradigm shifts. It is in our hands to make technological means our allies in expanding our knowledge beyond planet Earth.

If you're interested in implementing a CIO in your company, we recommend that you continue researching and learning about this cutting-edge technology. May the Force (and the CIOs) be with you on your path to success!

Or better yet, write to us at contacto@miningideas.com; we are eager to help! At MiningiDEAS, we can make your journey to operational excellence easier.

References:

1. The RIO Roc Control Room and Office project enabled Rio Tinto
2. Brisbane Bauxite Integrated Operations Centre (BIOC)
3. Digital mining-ArcelorMittal
4. ArcelorMittal’s integrated remote operations center
5. Matsa inaugura un centro de alta tecnología que controla de las operaciones mineras de Aguas Teñidas y Magdalena
6. Sistemas visuales y consolas técnicas para el nuevo centro de control 4.0 de Matsa
7. Anglo American inaugurates its first global Integrated Remote Operations Centre in Santiago for running Los Bronces
8. El Centro Integrado de Operaciones, el “cerebro” de Quellaveco, está en funcionamiento
9. El centro de una operación que nace totalmente digital
10. Remote operating centers in mining: Unlocking their full potential / McKinsey & Company
11. Building a Security Operations Centre (SOC)- National Cyber Security Centre
12. Aumenta la penetración de los centros remotos en la gran minería chilena
13. Remote Operations Centres — Lessons from Other Industries

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