Mark Cutifani, the boss of Anglo American (Anglo), asserts in the group’s latest annual report that mining continues to be vital to modern life.
“Looking ahead, we all have a responsibility to work together to help rebuild economies and protect our natural world,” says Cutifani. “Mining has a safer, smarter future, supporting modern life, and doing so sustainably. That is the future we are all working towards.”
Without a sustainable mining sector, mineral resources suppliers like SA will leave those dependent on importing minerals in the lurch. Now, Anglo — owner of Anglo American Platinum, De Beers and Kumba Iron Ore — says it is using digital technologies to change its business model and provide new revenue and value-producing opportunities.
Accenture’s research shows that the local mining sector can create R213bn in value through 2026 by investing in the right digital initiatives.
The venerable 104-year-old SA mining company has developed FutureSmart Mining, which uses smart innovation across technology, digitalisation and sustainability.
Anglo is rethinking mining to improve people’s lives, make it safer and reduce its environmental footprint.
This move includes the commitment to carbon neutrality across its operations by 2040.
FutureSmart Mining is vital for the miner to achieve this milestone.
Feasibility study
Through its subsidiary, Anglo American Platinum, Anglo uses new energy technologies, including hydrogen, to recontextualise the mining industry.
On Friday, Anglo American Platinum and the SA government announced the results of a feasibility study that explored the potential for a hydrogen valley anchored in the rich platinum group metals (PGM) bushveld geological area.
“The opportunity to create new engines of economic activity through hydrogen has been validated through this feasibility study with our partners,” Anglo American Platinum CEO Natascha Viljoen said.
“As a leading producer of PGMs, we have for some years been working towards establishing the right ecosystem to successfully develop, scale up and deploy hydrogen-fuelled solutions.”
Anglo American Platinum says it has invested $100m (R1.5bn) in AP Ventures. Later in 2021, the company will trial a hydrogen fuel cell haul truck at its Mogalakwena platinum mine in Limpopo. A hydrogen plant and solar photovoltaic installation at Mogalakwena will be operational before December.
The company plans to scale up the plant by 2024 with an expected electrolyser capacity above 100MW. This will eliminate 46% of diesel-related greenhouse gas emissions, equivalent to 1Mt of CO2 a year.
More opportunities
Anglo American Platinum could be a big player in developing a hydrogen economy, enabling it and other partners to hire and train more young people.
Sasol, which has been producing hydrogen-rich gas from coal to produce liquid fuels for years, leads in that regard. However, there are more opportunities in innovating, cleaning and decarbonising hydrogen.
These opportunities will keep Anglo American Platinum profitable and sustainable.
Anglo American Platinum is also using haul road digital twins to analyse and improve efficiencies. A digital twin is a virtual replica of a physical asset, process or system. It also replicates status and behaviour by incorporating real-time data from connected internet of things sensors. At its Mogalakwena platinum mine, digital twins have resulted in a 23% reduction in haul cycle time.
Anglo is also using a digital platform, Voxel, to help people make data-driven decisions. Voxel uses digital twins of the entire value chain. The digital platform is also used to predict environmental effects and help the miner adjust operational planning. It also focuses on safety and health.
Anglo American-owned Kumba Iron Ore leads the way in autonomous drilling. In 2016, Kumba gave the green light to an autonomous drilling project at its Kolomela mine. The development removed operators from harm’s way and improved efficiencies.
Dusty conditions
Since Kolomela’s conversion to autonomous drilling, drill performance has improved by 20-30%. The effect of time lost during shift changeovers has been mitigated.
“A single operator can now remotely operate multiple drills from the safety and comfort of a control room, with state-of-the-art computers, rather than from the dusty and noisy conditions of the open pit,” says the company.
No operators lost their jobs due to the drilling automation project, and the operators are being retrained to do other jobs.
Kolomela’s automated drilling is an excellent example of technology enhancing the safety of workers, promoting greater gender diversity, and improving efficiencies in processes.
Based on Kolomela’s success, Kumba intends to convert a further 10 of the drilling rigs in its giant Sishen open pit to autonomous working by end-2022.
Kumba has also been deploying wearables for its workers to create a connected worker. The iron ore producer had been trialing smart digital watches before the onset of Covid-19. During the pandemic, the company has expedited the rollout of 10,000 smartwatches for physical distancing, contact tracing and other health and safety purposes.
Kumba plans to use these intelligent watches to measure and collect actionable data on employee health and wellness, create safety and hazard awareness. The company says this will improve productivity through asset and equipment integration while protecting employee privacy.
Anglo has also invested in technology and equipment to keep its people out of harm’s way. Technology — video analytics, collision avoidance systems and advanced driver assistance systems — plays a critical role in advancing safety, and Anglo is exploring multiple options.
There are many ways Anglo and its subsidiaries are using tech to redefine the mining industry. But what is emerging from Anglo strategy is that the use of technology is not about destroying jobs.
Sustainability is about finding new economic opportunities, creating shareholder value, and caring for communities that provide Anglo with a licence to operate.
• Lourie is a former correspondent for Thomson Reuters, Business Report, Fin24 and Finweek magazine. He is also the founder and editor of techfinancials.co.za
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