How mining companies can become AI companies

View profile for Shashank Sharma

Head of Technology @ IRH

Mining company is a technology company. Marc Andreessen was right when he said software was eating the world. That was a decade ago. Now software is the world, AI is eating software, and soon AI will be the world. Mining’s future is digital, data-driven, and increasingly autonomous. The question isn’t whether mining companies will become AI companies. The question is whether they’ll get there before someone else does it for them.   Technically, mining already has the bones of a high-tech sector. It runs fleets of autonomous trucks and drills, manages ore bodies with 3D geological modeling, optimizes haul routes with smart algorithms, and collects more sensor data in a day than it uses in a year. But much of that innovation still comes from OEMs and third parties, not from inside the mining houses themselves. McKinsey’s data shows that while high-tech manufacturing pushes labor productivity at 9.5% a year, mining’s long-term rate is closer to 2.3% . That’s a lack of systemic adoption and integration. Productivity in mining has ticked upward in fits and starts for decades, but it’s still miles away from what high-tech sectors pull off because the industry treats tech like a bolt-on. Buy the kit, install it, wait for the vendor to send an upgrade, repeat. That’s not transformation. That’s procurement with better lighting. The companies that will win are the ones that start running the mine like it’s a platform business. Treat the geological model, the fleet management system, the plant control software, and the analytics layer as one ecosystem. Modular, connected, with APIs and microservices instead of siloed black boxes. Build the ability to integrate data from drill to port in real time and make that the heartbeat of the operation.    It means putting actual product owners in charge (not “IT managers”) people with end-to-end accountability for adoption and results. It means hiring people who’ve shipped software before and giving them the same influence in the boardroom as the head of operations. It means playing in developer ecosystems instead of treating every integration as a one-off project. The potential prize is enormous. Better ore-body knowledge eliminates waste before it starts. Smarter material flow lifts plant yields without a new plant. Predictive maintenance kills downtime before it happens. Automation cuts cost and pulls people out of danger. Real-time performance control stops “end of month” being the first time you know you’re off plan. We all know that the technology and the capital exists. What’s missing is the operating model that says, “We are a technology company that happens to mine ore,” instead of, “We mine ore and sometimes buy technology.” 

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Arun ‘Rak’ Ramchandran

CEO | Board Member | Mentor | QBursting with Pride!

1mo

Thoughtful post, thanks Shashank

Given the nature of mining from exploration to operations and maintenance (for those who understand who as done, not work as imagine from an office), there will be humans in the loop with AI and automation for decades. Let’s not leave humans out how if think about and design our mining value chains of the future

Nada H.

Communication Officer @ International Resources Holding | MSc in Political Communication

1mo

Fully agree

ARUNKHANNA KK

Head of Legal & Compliance - IRH Global Trading

4w

Love this, Shashank

Patrick Kingsley Odiegwu

Secretary General: Association of Miners and Processors of Barite (AMABOP)

3w

Interesting and insightful perspective, I was smiling reading through, I could see the long road ahead of us miners in the global south where capacity are still at pre-school level due to perceptional induced lack of funding despite our superior ore grade which does mean higher ROI. Days ahead are definitly with loads of hope, promise and opportunity.

Marina Baslina

Get recognized and trusted in mining | Innovation Marketing Strategist | Rocks 'n' Futures Founder | The go-to resource for mining tech and METS discovery

1mo

It's an interesting point, and one I suspect we'll see become a major trend. Most mining companies still haven't mastered the full "mine-to-market" value chain, leaving billions on the table in trading and logistics. Before they can become AI or tech companies, they first have to become integrated commodity businesses that run on data and market intelligence, and that's a cultural leap most still aren't ready to make.

Andy Reynolds

Aligning mental, business and engineered system models for uncertain futures.

1mo

There is certainly lots of potential to improve whole-system decision making in mining, but we need to be a lot clearer about the principles behind our action. For example, when we say "integrated" and "modular" in the same sentence, we are talking about opposites. When we say "APIs instead of black boxes", we are talking about two identical concepts - the whole point of modularity is to hide the functioning of modules behind their interfaces. Modules ARE silos, and deliberately so - they provide flexibility in preference to the fragility of a highly-integrated system. Unfortunately mining has been scarred by years of management consultants pushing the silo-busting mantra, and now they are stuck because when everyone has "end-to-end responsibility" no-one can change anything. This is all well known in the technology world, in fact it was computer technology development that really gave us the better understanding of system trade-offs.

Laeeque Daneshmend

Emeritus Professor and Chair Emeritus in Mine-Mechanical Engineering

1mo

Reality check (based on 35 years developing and deploying technologies for mobile mining equipment) - lots of examples of mining companies, large and small, trying to develop technology in-house - with nearly universal track record of failure (for numerous reasons). A more realistic, and worthwhile, aspiration would be that mining companies become better informed consumers of technology - so they can set requirements for OEMs and OTMs, instead of passively accepting what's on offer (and often falling for snake-oil sales pitches).

Nenad Djordjevic

From Innovation to Implementation: Advanced Mining Solutions

3w

Mining companies are sophisticated tech users, not core, general purpose, technology innovators like Microsoft, Nvidia, or OpenAI. They’re integrating AI for exploration (boosting success rates to 30-40%), automation for efficiency, and ESG tech for sustainability. Mining on Moon and Mars will be new frontier, during our lifetime. But they’re still commodity-driven, partnering with tech firms rather than inventing the tools. The “mining as tech” narrative could multiply valuations (tech trades at 15-30x earnings vs. mining’s 1-4x), especially for leaders in AI and autonomy applications. Fundamentals like commodity prices will decide, but innovators could see 2-3x upside. Great for the sector if investors buy in! www.randglobal.com.au

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Mohamed Shawky

The Drone Expert ✈️

1mo

Shashank, integrating drone data into the ecosystem enhances real-time ore-body mapping and environmental monitoring, driving further automation and operational efficiency in mining processes.

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