Machine learning, a subfield of AI, can revolutionize miners’ operations and sharpen their competitive edge. But to fully exploit this technology, miners need a disciplined approach.
AI in Mining and Process Industries
Natural Resource Ops by BCG X, our proprietary operating system for AI in mining and AI in process industries, provides real-time improvements for all stages of a continuous-process operation—delivering higher values and improving decision making.
Excavating data from mining operations is just as important as excavating ore. But in mining and other continuous-process industries, it’s hard to construct data models that can pinpoint exactly where changing operational controls could improve performance. Analytics alone aren’t enough. You need to account for the multiple variables and underlying physics involved in a given process.
Natural Resource Ops, the proprietary “human in the loop” AI solution from BCG X, provides real-time recommendations for changes that yield higher values at any stage of a continuous-process operation.
Natural Resource Ops, the proprietary “human in the loop” AI solution from BCG X, provides real-time recommendations for changes that yield higher values at any stage of a continuous-process operation.
How the Natural Resource Ops Methodology Works
Just as miners use headlamps to light their way, Natural Resource Ops helps clients in continuous-process industries—such as metals and mining; forest products, paper, and packaging; oil and gas; chemicals; and agribusiness—uncover opportunities hidden in existing processes. Our industry-agnostic AI applications go beyond black-box solutions by combining domain expertise with analytics, proprietary trade secrets, and code libraries to create transformational changes to frontline operations and advance their digital transformation.
Natural Resource Ops recommendations can be integrated into multiple client systems, including control systems, existing diagnostic displays, or custom dashboards. In addition, recommendations can be fully automated in process control systems, entered into the systems manually by client operators, or integrated into the systems but applied only when an operator reviews and approves them.
WHY NATURAL RESOURCE OPS
Our clients can use Natural Resource Ops to progress through the five stages of AI for continuous-process industries. But even more critically, our AI in mining solution can be used to improve decisions at any level:
-
Operational
To improve short-term conditions for specific equipment, teams, or processes, or to coordinate structured processes according to shared KPIs. Examples of operational applications include optimizing haul dispatch or responding to unplanned downtime. -
Tactical
To maximize midterm asset performance by aligning the organization to common objectives and evaluating tradeoffs across the value chain. Examples of tactical applications include making decisions about mine pit development or when to schedule major maintenance. -
Strategic
To maximize the lifetime value of assets and inform long-term and life-of-mine planning. Examples of strategic applications of AI in mining include turnaround scoping and scheduling.
Our Clients’ Success on AI in Mining and Process Industries
Existing clients have paired AI and mining or other process industries to realize hundreds of millions of dollars in value by optimizing multiple operating setpoints in response to changing raw material and environmental factors. Examples of our work include:
Diversified Metals Client
A copper mining client engaged BCG X to assess advanced analytics opportunities and enable next-gen integrated operations. Natural Resource Ops provided a value-driven, modular, sequenced approach and implemented a customized solution across the entire value chain, creating the most digitally advanced mining operation in the world. The client is now realizing over $100+ million increase in annual copper production, while reducing annual operating costs by $18 million.
$100+ million
increase in annual production
Oil and Gas Client
Using Natural Resource Ops, BCG X and an oil & gas client demystified plant operations, enabling a transformation to more efficient operating procedures and practices. Drawing upon a hypercube of optimal operating control settings, Natural Resource Ops combined machine learning models and optimization to create new operating directives for plant managers. Once fully implemented, the client saw a 25% reduction in annual process losses and $50 million in additional revenue.
25%
reduction in annual process losses
Meet Our Experts on AI in Process Industries
Managers who have relied on trusted rules of thumb to make complex decisions now have a powerful alternative. Advanced analytics can improve decision making and unlock significant value.
Mining, oil and gas, and chemical manufacturing companies haven’t yet started to exploit AI, but they can close the gap by applying lessons from other industries.
Many steel manufacturers haven’t yet embraced AI, but that doesn’t mean they can’t. All that’s required is an openness to experimentation and a willingness to change.
The construction industry is changing as robots’ capabilities on the work site continue to advance. Companies must begin positioning themselves for this transformation now.
Contractor costs are a big—and growing—part of total mine site costs. Eight moves can help miners save as much as 20% to 25% on contractor services.
As they face unprecedented volatility in global agrifood supply chains, decision makers can act today to build long-term resilience and competitive advantage.
There’s a major value-creation opportunity in building green businesses, but many complexities stand in the way. Here’s how CEOs can seize the opportunity.
The investments necessary to mitigate and adapt to climate change are far less than the cost of inaction—11% to 27% of global GDP by 2100.
To make AI and other transformative technologies broadly accessible and avoid missteps, the private sector must double down on collaboration.
Explore Our Insights on AI in Mining
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How Process Industries Can Catch Up in AI
Mining, oil and gas, and chemical manufacturing companies haven’t yet started to exploit AI, but they can close the gap by applying lessons from other industries.
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Strengthening the Steel Industry with AI
Many steel manufacturers haven’t yet embraced AI, but that doesn’t mean they can’t. All that’s required is an openness to experimentation and a willingness to change.
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Debunking Five Myths About AI in Continuous-Process Operations
Much hype surrounds the question of how mining companies can best use artificial intelligence (AI) to improve continuous-process operations. Uncover the truth about this decidedly alluring possibility.
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The Case for Bayesian Learning in Mining
Mining companies have achieved impressive results using machine learning to improve operational performance. Find out how this technology can help mining operations build precise data models and make accurate predictions.
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How AI in Mining Is Revolutionizing Teck Resources Limited
BCG’s work with the mining company not only improved operational efficiency but also minimized the company’s impact on the environment.
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