Digitalization of the mining industry. What has already been done and what are the prospects?

Increased productivity, improved reliability and lower operating costs are obvious benefits of digitalization. At the same time, 43% of companies in the industry noted an increase in the complexity of digital solutions being implemented.

Digitalization and artificial intelligence are no longer synonymous with the distant future. These days, they help to solve the most important production tasks, and the mining industry is no exception. Moreover, it is one of the drivers of digitalization among all sectors of the economy.

Current situation around mining digitalization

Mining companies are increasingly investing in digitalization, considering it a strategic priority. Rosstat data shows, from 2019 to 2024, investments in digital solutions increased from 4.2 billion rubles to 7.4 billion rubles. The number of companies that plan to increase the positive effect of digitalization implementation in the next 2-3 years is also growing. By the end of 2024, their number may increase almost fourfold (from 15% to 55%) compared to 2023. Undoubtedly, the low base effect observed in 2023, when market participants were forced to adapt to new realities, also played its role.

In spring 2024, the consulting company Yakov & Partners and Digitala released a joint study on the digitalization of Russia's mining and metals industry. In general, the results of the study are quite optimistic: 25% (+5% relative to 2023) of respondents see prospects for becoming world leaders in digitalization, while the share of “pessimists” decreased comparably (by 4%, to 44%).

We will dwell separately on the introduction of generative AI. It can be used in several industries at once:

• analyze promising locations for geological exploration and development of new fields,
• analyze current economic and production indicators,
• be used for forecasting financial and economic indicators and product shipment, etc.

Let's move on to specific indicators from the implementation of digital solutions. Thus, according to the calculations of “Yakov & Partners” and “Digital”, the introduction of an integrated remote enterprise control center will increase labor productivity by 3-5% and reduce operating costs by the same amount. Switching to digital twins will reduce operating costs by 3-7%, increase labor productivity by 1-2% and improve reliability by 1-3%.

Integrated solutions are the most effective. What's more, it's important that these solutions meet the demands of production and personnel, rather than being disconnected from reality. "Now more than ever it is important that IT specialists unite with ACS engineers, and the latter, in turn, with technologists and equipment manufacturers", says Maxim Belinka, founder of Evomatix, "Perhaps we should take a closer look at the experience of our Chinese colleagues. Industry needs developments that will actually solve problems, not create them".

Key challenges and prospects for digitalization of the mining industry

According to the results of a survey by Yakov & Partners and Digital, 43% of Russian mining companies surveyed noted an increase in the complexity of digital solutions being implemented as one of the key challenges. This is due to both technological development and an increase in the number of processes that can be digitalized.

For 40% of respondents, the lack of competencies and staff shortage became a serious challenge. The authors of the study emphasize the problem of shortage of IT project managers, for whom there is a serious struggle between manufacturing and technology companies. At the same time, the problem of shortage of product owners and data analysts has been practically solved - it was voiced by only 16% of respondents.

According to consultants, the main focus of Russian mining and metallurgical companies in the next three years will remain the digitalization of production itself. At the same time, according to experts from Yakov & Partners and Digitala, international experience should also be taken into account, when the digitalization of corporate processes and functions has a positive impact on their efficiency and helps reduce costs.

Present digital solutions at iningWorld Russia 2025

The digitalization needs of domestic mining companies are only growing with time. Therefore, those developers and suppliers of digital solutions who can understand current and future trends, as well as establish constructive relationships with key partners in the industry, will benefit. Participation in MiningWorld Russia - the 29th International Exhibition of Machinery and Equipment for Mining, Processing and Transportation of Minerals - will help to solve these important tasks.