How are Australian Mining Companies Using AI?

How is AI used in the mining industry?

On a global level, AI has a direct impact on many aspects of mining, as shown by several companies, like Nomadis, a boutique software company specialising in workplace logistics and healthcare, and Axora, a heavy industry-oriented tech company.

But how exactly is the mining industry using AI? Here's a look at three ways it's being implemented:

1. Improving operations, predictions and safety

Mining continues to be a dangerous occupation, but some of that risk can be minimised using AI software. AI can analyse data and attempt to predict failures of equipment or processes, prevent accidents and avoid injuries. Using AI to monitor wear and tear on equipment means machines will last longer, or small repairs can be fixed before large repairs are required. Axora points out that AI monitoring helps detect human error as well, using drowsiness alerts as an example — in this case, AI can notify an operator who is behaving in a way that indicates that they are sleepy or sluggish.

2. Reducing environmental impact

AI regulation of mining operations and resources, such as ventilation, can save tech-savvy companies money, as well as decrease negative environmental impact. Additionally, Forbes reports that AI is being used to crunch big data numbers, resulting in better data usage and more efficient operations.

3. Helping with mineral scouting and sorting

Geo-maps created by AI are efficient ways of discovering ore, says AI World School, and they can save mining companies time and money as they utilise better data to plan and execute operations. AI can also help sort minerals for faster and more efficient separation of valuable ore from plain old rock.

What are the advantages of using AI in mining?

The advantages of AI mining are fairly numerous. Three main advantages are:

1. An automated system reduces both strain on employees and the need to tie up staff members with tedious monitoring jobs. This increases efficiency. Because of this efficiency bump, companies can avoid hiring unnecessary staff, which reduces expenses.
2. Computer technology that increases the efficiency of mining will also ideally generate higher-quality ore and should enable companies to find this ore faster thanks to AI technology’s ability to discover deposits.
3. Deaths, serious injuries and other safety concerns are also improved through AI mining technology. We have already discussed one example, the use of AI to prevent overtired miners from continuing without adequate rest. On top of what there is now, as AI becomes more efficient, we can expect to see even more safety benefits.

What are the challenges of using AI in mining?

In terms of the challenges of AI mining, it's important to recognise some of the larger, more prominent potential hurdles.

For example, getting miners adjusted to new systems could be a challenge as there is a learning curve that has to take place. Companies also might choose to hold back on unproven technology, choosing not to adopt AI technology too early.

Mining companies that do choose to jump into AI might face hefty costs. It’s never cheap to adapt new technology into a business, and the overhead might be prohibitive. There is no easy solution here — either a company will adopt technology quickly, while processes are still developing and are expensive, or that company will hold back until the tech is more reliable and affordable, but after that company’s competitors have already been using it.

How are Australian companies using AI in mining?

Given Australia’s robust mining industry, it makes sense that Australian mining companies would be keen to explore new, more efficient technologies — such as AI — for the industry's benefit, and some are already making waves.

Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), an Australian mining giant, jumped on board early and has been using AI on trains since 2018 — the company's network is the world’s first heavy-haul, long distance autonomous rail operation. The AutoHaul software it uses allows central monitoring, and combined with CCTV cameras at intersections increases not only efficiency, but safety.

Newcrest Mining (ASX:NCM,OTC Pink:NCMGF), another major Australian miner, uses AI to monitor crushed ore levels. Its technology has been developed in association with Microsoft (NASDAQ:MSFT) and is increasing the company's productivity.

Australian companies are also using AI in exploration. For example, BHP (ASX:BHP,NYSE:BHP,LSE:BHP) has a relationship with startup KoBold Metals, which is backed by Bill Gates. KoBold uses AI and machine learning to help uncover materials that are important for the energy transition, including lithium, copper, nickel and rare earths. Earth AI, another startup, has partnerships with a range of ASX-listed companies and helps them use AI to find potential deposits.

There's also SensOre (ASX:S3N), which works with a variety of explorers and miners both in and outside Australia. The company has its own portfolio of gold and battery metals assets in Western Australia, but also provides AI-enhanced targeting and prospectivity mapping services geared at making exploration faster and more successful.

As more companies adopt, improve and expand their use of modern technologies in their mining operations, we can expect the face of Australia’s mining industry to change, increasing efficiency and safety.

What's ahead for AI in Australia's mining sector?

When it comes to AI tech and Australian mining, investors should keep in mind that early adopters might suffer in the short term — dealing with capital output to secure early technology, not to mention the potential development issues with any new tech, could create speed bumps in the upward trajectories of these companies.

However, in the long term, early adopters might gain an advantage from having worked longer with more efficient technology.

With large companies like Rio Tinto and Newcrest Mining already adopting AI mining technology, the future seems closer than ever. Even back in 2019, the Australian government was providing funding to the University of Adelaide to develop a training centre and to research AI in conjunction with mining.

Between available funding and the existing AI structures that are starting to come into play, investors can expect AI mining in Australia to continue to increase its reach and play a more prominent role in the future.