Added value for mining process by production chain optimization. Harry Sandström METS2018, Madrid

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1 Added value for mining process by production chain optimization Harry Sandström METS2018, Madrid 1

2 MINING FINLAND IS PART OF THE FINNISH MINING CLUSTER AIMING to promote mining and exploration investments to Finland to promote export and international networking of Finnish mining technology and service companies 65 % Main activities International networking Domestic networking Clustering H A R R Y Focus countries Chile Peru Canada Southern Africa 2

3 FINLAND HAS OVER 200 TECHNOLOGY AND SERVICE PROVIDERS ACROSS THE VALUE CHAIN Exploration Mining Mineral Processing Rehabilitatio n / Closure Exploratio n Mining Mineral Processing Rehabilita tion / Closure Cons ultin g Servi ces Equip ment 3 H A R R Y SANDSTRÖM

4 Finland has long history of intelligent mine development since 90 s 3/2018 4

5 Todays concerns and challenges in mining industry Availabilit y water, energy Low Low coomodit coomodit y y prices prices Lowe Lowe r r ore ore grade grade ss Capital expenditur e overflows Poor Poor productivi productivi ty ty Low Low utilizatio utilizatio n n of of machine machine ry ry Slow new mine developme nt process SANDSTRÖM ENABLERS AND DRIVERS Must to change Sensoring technology Wireless communication Digitalization IoT BARRIERS Siloed mode of operation Conservatism Picking up low hanging fruits Short term strategies Poor network cooperation Remote control Sustainabili ty Environmen tal performance Zero accidents New ore types Availability of trained staff Social license to operatopera te Long term profitabilit y Valorizatio n of side products and streams 5

6 Productivity vs metal prices Overall equipment effectiveness (OEE) performance of 27% for underground mining, 39% for open-pit mining, and 69% for crushing and grinding compared with 88% for upstream oil and gas, 90% for steel and 92% for oil refining. McKinsey 6

7 WHY DIGITALIZATION FAILS Lack of details in pathways Perception of high costs Unclear accountability Lack of digital education and understanding Siloed processes Fear among local management for remote control Business models not defined, focus in cost cutting rather than creating added asset value 7

8 OUR APPROACH AND FOCUS Digitalization and IoT should provide real and measureable added value with simple solutions across the value chain Exploratio n Mining Processing Environment and water management

9 OUR AIM: FAST AND SELECTIVE MINING Optimization Mining of human and machinery resources Productivity by optimization the entire chain of Characterization of operations ore body Securing health and safety in operations Simultanous environmental monitoring Productivity by minimized down time and proactive mine and blasting planning

10 We look at the entire mining process from drill to mill 10

11 Drilling management and ore body characterization On-line sampleranalyzer Real time 3D block model to control ore lossess and dilution Optimizatio n of drilling & blasting efficiency and safety aspects Drilling machine production plan Drill string integrated hole deviation measuremen t 11

12 Reducing waste rock dilution increases profits 1%* reduction in dilution and ore losses results in 6million USD annual profit increase *based on Ima studies average ore losses and waste rock dilution are from 10% to 20% in open pit mining 12

13 We look at the entire mining process from drill to mill 13

14 Production management loading and haulage Fleet tracking and diagnosis Value propositio n Solution to move tracked equipment Increased OEE Decreased down time Maintenance optimization Transport planning and tracking 14

15 We look at the entire mining process chain from drill to mill 15

16 Ore feed control On-line belt analyzer with immediate feedback to loading and milling Value propositio n Improved ore grade Mill feed control 16

17 Summary of new way of mine production 17

18 .and all this in cloud and in use in real time and remote 18

19 Thank you for your attention! Are you interested of cooperation? Please contact Harry Sandström Programme Director Mining Finland Productivity Through Technology Mobile: