How mining can win back its innovation groove

Popular culture has it that mining is still in the stone ages, or that it has lost its innovative groove. For most of its history, mining has been on the cutting edge of innovation. From the canaries and pick-and-shovel to the mechanization era, to autonomous trucks and automated systems, mining companies have continuously enabled better health and safety practices, increased throughput and, ultimately, better returns.

Canada, in fact, used to be a hub for innovation in mining, with companies like Noranda, Falconbridge and INCO all having major technology and innovation centres in Quebec and Ontario. Out of those centres came breakthrough innovations through major collaboration with sites and suppliers. Things like remote operation equipment, laser technology application and novel ground support systems all helped revolutionize the way mining operates. But, with a combination of a shift in focus, post-M&A redirections (Noranda, Falconbridge and INCO are now defunct) and new entrants with differing priorities, the “old innovation” era has faded.

During the boom, a focus on volume – and its corollaries such as output, equipment, labour and materials – trumpeted productivity. And while technologies soared in other sectors like oil and gas, retail and telecommunications (all of which, incidentally, faced tough competition), mining companies somehow lost their innovation groove.

The sector is now faced with an innovation deficit. It’s not too late to catch up, but it must start now. The menu of options to help miners boost innovation is long and wide. This time around, the context has changed and key elements include fast-paced and mobile technology, real-time capabilities, process automation, change management and robust project management frameworks. Some mining companies are already implementing solutions, demonstrating that the innovation groove can be reclaimed.

Here are some of the essential ingredients and examples that will help revive and sustain the mining innovation spirit:

Innovation as a business imperative: To be successful and sustainable, innovation needs to be at the heart of the corporate objectives. A corporate framework for mining technology and innovation needs to be embedded and communicated. Having a clearly identified roadmap, supported by an innovation team with a mandate, structure, key performance indicators and a budget, can have a positive impact.

Paradigm shifts as a foundational quest: Revisiting traditional practices in light of currently available technologies and practices can inspire an environment of innovation breakthroughs. We’ve seen this play out with fully integrated planning and execution, real-time data capture and analytics, virtual training, 3D printing, mobile technology and drones, for example. Meanwhile, an end-to-end view that breaks down silos and promotes integrated platforms has led some companies to implement remote operations centres to foster collaboration and operations excellence. When the foundation is there, opportunities abound.

Open innovation and learning from other sectors: Increasing collaboration within the industry and across the innovation clusters (associations, universities, research centres, suppliers, etc.), supported by governments, will boost the innovation agenda in mining. “Lifting and shifting” from other sectors can also help companies leapfrog. For example, some mining companies have recently been borrowing and adopting leading manufacturing practices for reliability of their operations, providing everything from practical tools for data analytics to value chain modelling operations de-bottlenecking and change management.

It will certainly take time for the mining sector to be back on the cutting edge of innovation, but these examples are proof that there’s been significant and meaningful progress. As technologies continue to change our world, the mining sector must also embrace innovation to thrive. 

Theophile Yameogo is EY’s Canadian Mining Advisory Leader. He is based in Toronto.