The Future of Mining: challenges, opportunities, technology and innovation

Transcription

1 The Future of Mining: challenges, opportunities, technology and innovation Nick Cutmore Theme Leader MINERALS DOWN UNDER FLAGSHIP

2 Outline 1. Minerals Down Under and CSIRO 2. The Australian Minerals Industry in context 3. Industry challenges a perfect storm 4. Why innovate 5. Innovation opportunities 6. Changing the way we innovate

3 National Research Flagships BIOSECURITY CLIMATE ADAPTATION DIGITAL PRODUCTIVITY AND SERVICES ENERGY TRANSFORMED FOOD FUTURES FUTURE MANUFACTURING MINERALS DOWN UNDER PREVENTATIVE HEALTH SUSTAINABLE AGRICULTURE WATER FOR A HEALTHY COUNTRY WEALTH FROM OCEANS

4 A key role: managing the tension, aligning interests Industry drivers shareholder value global resource opportunities balance technical, social and sovereign risk National drivers maximise benefit from Australian endowment compete on global markets underpin national prosperity balance resource utilization manage social pressures CSIRO

5 The Australian Mineral Industry: A global perspective

6 Australia s share of commodities Source: MCA and Port Jackson Partners, 2012

7 Dominated by coal and iron ore

8 Australian mining competiveness Gold price $300 >$1600 Australian Gold Producers Index Source: MCA and Port Jackson Partners, 2012; Kitco.com

9 Capital costs for bulk commodities Source: MCA and Port Jackson Partners, 2012

10 Industry challenges: A perfect storm

11 Key drivers Declining discovery rates Declining grade Growing ore body complexity Increasing depth Growing environmental and social pressure Desire for better safety outcomes Growing competition for input resources

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13 Business as usual is no good in the long run: South African Gold

14 In spite of massive remaining resources 32Moz of 47.5Moz 6Moz of 88Moz

15 Why innovate: Innovation = Invention + Exploitation

16 1. Continuous improvement: remove roadblocks Typically short timeframes Focus on specific company / orebody issues IP for freedom to operate Continuous improvement industry Generally wide based on current technologies Low risk

17 2. Process innovation: change what we do Typically short / medium timeframes Focus on significant shifts in technology with commercial opportunity Process (business or technical) IP for secrecy or commercial leverage e.g. CIP; heap leaching; bioleaching Moderate risk

18 3. Step change innovation: transformational enabling platforms Typically long timeframes Focus on fundamental shift in value creation Step change innovation IP often beyond a single organization e.g: automation; mass ore sorting; High cost; high risk We can do this better!

19 Impact Where are we now 3. Step change Innovation platforms 2. Process innovation 1. Continuous improvement Time

20 Innovation opportunities

21 Embracing complexity - selective mining Mining strategies often based on: Economies of scale Average approach for all ore types Sledge hammer Real time sensing Integrated mine model Reduced dilution Mass sorting of ore Optimized process control Real time decision making CRC ORE

22 Modular, automated and remote

23 Closing the loop: Sustainable steel production

24 Changing the way we innovate

25 Barriers to step change innovation Cohesive long term funding Complex nature of challenges No common sense of purpose Fragmented IP position Fragmented research, production and METS sectors

26 Collaborative innovation Research Provider(s) Explorer / miner Desired Innovation outcome Manufacturer / Service supplier Revenue from discovery; production sales Orebodies first order driver Technology user Generally protect IP for access not revenue Revenue from service / equipment sales Cost and relevance first order drivers Technology deliverer IP may protect competitive position Revenue from R&D delivery Generally minor IP revenue Technology developer IP may protect ability to operate

27 Nick Cutmore Theme Leader Minerals Down Under National Research Flagship Phone: Web: Thank you Contact Us Phone: or enquiries@csiro.au Web: