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Digital transformation of mining enterprises: meeting the new wave of sustainable development of China's mining industry


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  With the rapid development of China's digital economy, the proportion of China's digital economy in the economy continues to rise, which continuously injects vitality into the industrial upgrading and high-quality development of enterprises. With the gradual realization of digitalization in the mining area, no matter in the mine or in the background management department, the working mode will change dramatically. In fact, digital mining area is a set of simplified business process, which provides valuable information for the personnel at all levels of the enterprise, at the same time, helps the managers to make more accurate and faster decisions, and digitalization will improve and upgrade all dimensions of the enterprise.


  1、 Why are mining enterprises scrambling for digital transformation?


  The sustainable development of China's economy has always provided Fengwo with "thick soil". With the support of national policies and the trend of economic globalization, China has become the largest exporter of rare earth resources in the world. At present, 80% of the world's rare earths are from China. But although the rare earth industry has been developed as a whole, only a part of the top enterprises in the rare earth industry can be developed.


  More than a decade ago, the value index of China's mining industry was 7% higher than that of its global counterparts. Since 2011, the total output value of China's mining industry has shown signs of decline. The total output value of China's mining industry in 2015 is expected to be 40% lower than that in 2011.


  Before 2008, China's mining enterprises were mainly active in China, only using three-way imports as a resource supplement. After the financial crisis in 2008, Chinese enterprises began to go out boldly and actively purchase and operate international minerals. But this can not prevent the trend of the times from moving forward. Even some large mining enterprises have tried a variety of profit increasing models, but their turnover still does not reach the ideal state. In fact, this is not because the development direction of the enterprise has problems, but it does not follow the development trend of globalization and carry out digital transformation of the enterprise.


  2、 Improve productivity, the ultimate way of digital transformation of Chinese mining enterprises


  Digital transformation is a double-edged sword. It breaks the original profit model of mining industry, but at the same time, it also opens up another development model of mining enterprises. Although this way is not necessarily better than before, it conforms to the development characteristics of the times. To a certain extent, this mode helps enterprises achieve cost reduction, efficiency improvement and lean management.


  How does digital transformation help enterprises reduce costs and increase efficiency?


  Through the professional insight of mining industry, we find that the digital transformation of domestic mining enterprises faces three challenges:


  Due to the incompatibility of mine data systems, inconsistent collection process, inconsistent statistical caliber and incomplete data information, the output data is not comparable and unable to assist the headquarters in decision-making.


  Digital technology can greatly improve the efficiency of all links - from exploration and development to supply, production, distribution, sales, trading, and even the whole process of core business processes such as mine closure. Only the digitalization of the whole business process is the real digitalization.


  In fact, the technology of collecting and transmitting accurate information can bring a lot of opportunities for mining companies to make more rigorous decisions and improve the return on capital.


  The development of globalization not only makes the linkage of enterprises more convenient, but also unifies the development mode of enterprises to a certain extent. Ten years ago, most of the top 10 companies with the highest market value came from traditional industries such as oil, banking and automobile. Ten years later, Amazon, Facebook, Alibaba, Tencent and so on have leapt ahead of Exxon Mobil, which ranked first ten years ago. It is not hard to find that data is the core asset of these enterprises. This is the requirement of the times for enterprises.


  It is undeniable that the accumulation of enterprise production data can help enterprises to make feasible strategic planning, gain customer insight, support customer purchase behavior, and build a new business model, so as to win the competitive advantage. Modern successful enterprises obviously have their own digital common points: attach importance to data quality, data context, and establish an effective data management system.


  3、 The tide of the times rises and falls, but what the enterprise does not change is the determination to improve efficiency -- Digital Transformation


  A quiet mining revolution has begun. The entire mining and resource industry urgently needs transformation. Cost reduction, efficiency improvement and green development have become the future mission of the mining industry. The digitalization of the core business process of the mine is the "key", and the whole mining industry will be overturned in the future! In addition to supply chain and asset analysis, digitalization can also optimize complex production systems to increase production. For example, through the use of advanced software solutions for process optimization, the abstract data in the production process of the enterprise is transformed into an implementable way, the application situation is summarized, the data is used to help the enterprise to improve the business scenario, and finally make it a mature product, recording the whole process of the enterprise's core business process - everything management system.


  HillWay mining is also the actual beneficiary of digital transformation. In the process of using the management system of everything, it is found that the digital technology can not only reduce the occurrence of the hidden danger of production safety, but also greatly improve the production efficiency of each link.


  The figure below shows that "Henan Fande Mining Co., Ltd." under HillWay mining has not only realized "zero occurrence" of safety accidents, but also greatly improved the taste of ore production since the use of the system of everything bright in 2015