Released March 10, 2025 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Artificial intelligence (AI) in the mining industry was a topic of keen interest at last month's MINEXCHANGE conference, held in Denver, Colorado, and sponsored by the Society for Mining, Metallurgy & Exploration (SME) (Englewood, Colorado). The conference's keynote speaker, a variety of event exhibitors and a digital technology expert interviewed by Industrial Info agreed that AI is in the early stages of transforming, if not revolutionizing, the global Mining & Minerals industry, but the path forward will take some time and depends on mining companies having quality data.
Terry Jones, an author and global business executive, told attendees that "big data, large language models (LLMs) and dramatically greater processing power make AI a game changer. If data is the new oil, AI is the refinery."
The event drew an estimated 7,050 registrants, slightly higher than last year's MINEXCHANGE event held in Phoenix, which drew about 6,971 registrants, an SME spokesperson told Industrial Info. This year's event drew about 10% more registrants than the last time the MINEXCHANGE event was held in Denver, which was 2023. That event drew approximately 6,436 registrants.
For more from this year's MINEXCHANGE event, see March 4, 2025, article - SME Conference: Coal Has a Brighter Future -- Maybe. "AI creates order out of unstructured data, which accounts for about 80% of all data maintained by businesses across industries," Jones said in his SME keynote address February 24. Companies in other industries have used AI to create new products and services, blending information from public datasets, industry datasets and proprietary corporate data. "Search engines give you answers -- often millions of them. AI provides advice," if queries are structured properly, he told the SME conference attendees.
He urged mining companies to "experiment and fail -- that's called progress. AI can help companies reimagine their production processes and business models."
Executives and employees in various industries surveyed by consultants McKinsey & Company (New York, New York) said mining was one of the industries that would be most transformed by AI, Jones said in an interview with Industrial Info.
"There is a lot of potential for AI to change mining," he said, identifying safety, production, processes, geophysical analysis and predictive equipment maintenance as areas that could be transformed by AI. He said mining companies can use AI to answer these types of questions:
Exhibitors at the SME event tended to agree, as did a digital technology expert at global engineering firm WSP Global Incorporated (Montreal, Quebec) that was interviewed by Industrial Info.
"AI represents a great opportunity for mining companies to turn data into actionable intelligence," Jay Wratten, WSP's U.S. executive digital lead, said in that interview. "Mining companies are sitting on a pile of data. They are asking for tools to turn that into intelligence that can drive decision-making."
He said mining companies are using AI in one or more of the following ways:
He recognized that AI, ML and other advanced analytic technologies were a two-edged sword: While they could help companies by automating certain hard-to-find skills, they also could lead to significant workforce disruption as those tasks were automated. Companies already are looking at ways to upskill their existing workforce and to take advantage of AI automation where there is a shortage of available workers, he added.
Wratten said Rio Tinto (NYSE:RIO) (London, England), Freeport-McMoRan Incorporated (NYSE:FCX) (Phoenix, Arizona) and BHP Group (NYSE:BHP) (Melbourne, Australia) were some of the world's leading mining companies in terms of deploying AI.
In 2023, BHP collaborated with Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) to deploy advanced digital technologies like AI and ML to boost production at its Escondida copper mine. In announcing that step, BHP Chief Technical Officer Laura Tyler said, "We expect the next big wave in mining to come from the advanced use of digital technologies. As grades decline at existing copper mines and fewer new economic discoveries are made, next-generation technologies like artificial intelligence, machine learning and data analytics will need to be used to unlock more production and value from our existing mines."
A McKinsey case study from 2023 said that Freeport McMoRan was able to defer capital outlays of between $1.5 billion and $2 billion to open new mines after it deployed AI to increase copper production at an existing mine in Baghdad, Arizona. Consultants and company officials created a digital roadmap using AI, advanced analytics and agile work methods to increase productivity at every step of Freeport's processes. Production rose 10% at that mine.
Wratten cautioned that effective use of advanced digital technologies depended on mining companies having a solid foundation of data that was clean and consistent. "The old saying, 'garbage in, garbage out,' is absolutely true," he commented. "Companies that invested is data cleansing and creating data pipelines from their facilities to headquarters are better positioned to take advantage of AI and other advanced digital technologies," he said.
In an interview on the SME exhibit room floor, Ari Rantala, a leader in the automation and digital solutions practice of solutions provider Metso Corporation (Helsinki, Finland), told Industrial Info this: "AI is a tool. It is not the tool for everything. Mining companies are using it to align projections and optimize processes." He said U.S.-based mining companies are "in the middle of the pack" when it comes to deploying AI, trailing fleeter competitors in Northern Europe and Australia.
"AI is going to be big because it helps companies manage more data," he continued. He said he has worked with mining clients who have improved operations by 5% to 10%, with a large chunk of the improvement coming from preventative maintenance.
In another exhibit floor interview, Ryan Hewitt, marketing director for The Weir Group Plc (Glasgow, Scotland), a global engineering company with mining clients around the world, brought AI to clients in 2013 in the form of its Motion Metrics platform.
"AI is only as good as the data on which it relies," he told Industrial Info. Mining companies' interest in AI is "quite high, and getting higher," he said, adding that interest is most pronounced in Western Australia, South America, South Africa and North America.
Mines facing declining qualities of ore are particularly interested in digital solutions that cut costs, extend mine life, identify bottlenecks and recommend ways to remove those blockages.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Terry Jones, an author and global business executive, told attendees that "big data, large language models (LLMs) and dramatically greater processing power make AI a game changer. If data is the new oil, AI is the refinery."
The event drew an estimated 7,050 registrants, slightly higher than last year's MINEXCHANGE event held in Phoenix, which drew about 6,971 registrants, an SME spokesperson told Industrial Info. This year's event drew about 10% more registrants than the last time the MINEXCHANGE event was held in Denver, which was 2023. That event drew approximately 6,436 registrants.
For more from this year's MINEXCHANGE event, see March 4, 2025, article - SME Conference: Coal Has a Brighter Future -- Maybe. "AI creates order out of unstructured data, which accounts for about 80% of all data maintained by businesses across industries," Jones said in his SME keynote address February 24. Companies in other industries have used AI to create new products and services, blending information from public datasets, industry datasets and proprietary corporate data. "Search engines give you answers -- often millions of them. AI provides advice," if queries are structured properly, he told the SME conference attendees.
He urged mining companies to "experiment and fail -- that's called progress. AI can help companies reimagine their production processes and business models."
Executives and employees in various industries surveyed by consultants McKinsey & Company (New York, New York) said mining was one of the industries that would be most transformed by AI, Jones said in an interview with Industrial Info.
"There is a lot of potential for AI to change mining," he said, identifying safety, production, processes, geophysical analysis and predictive equipment maintenance as areas that could be transformed by AI. He said mining companies can use AI to answer these types of questions:
- How can we increase production?
- How can we cut costs?
- How can we improve safety with driverless trucks?
- How can we improve our processes?
- How can we more effectively separate ore from slag?
Exhibitors at the SME event tended to agree, as did a digital technology expert at global engineering firm WSP Global Incorporated (Montreal, Quebec) that was interviewed by Industrial Info.
"AI represents a great opportunity for mining companies to turn data into actionable intelligence," Jay Wratten, WSP's U.S. executive digital lead, said in that interview. "Mining companies are sitting on a pile of data. They are asking for tools to turn that into intelligence that can drive decision-making."
He said mining companies are using AI in one or more of the following ways:
- Automating plant operations, including process improvements
- Enhancing safety, such as by deploying driverless vehicles
- Optimizing systems, including preventative and predictive maintenance to prevent equipment failure
- Automating geological analyses, which often is done manually
- Creating better knowledge management systems, including a chatbot that could function as a "mentor on call" on a 24/7/365 basis for employees who had questions about processes, procedures or equipment maintenance and repairs.
He recognized that AI, ML and other advanced analytic technologies were a two-edged sword: While they could help companies by automating certain hard-to-find skills, they also could lead to significant workforce disruption as those tasks were automated. Companies already are looking at ways to upskill their existing workforce and to take advantage of AI automation where there is a shortage of available workers, he added.
Wratten said Rio Tinto (NYSE:RIO) (London, England), Freeport-McMoRan Incorporated (NYSE:FCX) (Phoenix, Arizona) and BHP Group (NYSE:BHP) (Melbourne, Australia) were some of the world's leading mining companies in terms of deploying AI.
In 2023, BHP collaborated with Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) to deploy advanced digital technologies like AI and ML to boost production at its Escondida copper mine. In announcing that step, BHP Chief Technical Officer Laura Tyler said, "We expect the next big wave in mining to come from the advanced use of digital technologies. As grades decline at existing copper mines and fewer new economic discoveries are made, next-generation technologies like artificial intelligence, machine learning and data analytics will need to be used to unlock more production and value from our existing mines."
A McKinsey case study from 2023 said that Freeport McMoRan was able to defer capital outlays of between $1.5 billion and $2 billion to open new mines after it deployed AI to increase copper production at an existing mine in Baghdad, Arizona. Consultants and company officials created a digital roadmap using AI, advanced analytics and agile work methods to increase productivity at every step of Freeport's processes. Production rose 10% at that mine.
Wratten cautioned that effective use of advanced digital technologies depended on mining companies having a solid foundation of data that was clean and consistent. "The old saying, 'garbage in, garbage out,' is absolutely true," he commented. "Companies that invested is data cleansing and creating data pipelines from their facilities to headquarters are better positioned to take advantage of AI and other advanced digital technologies," he said.
In an interview on the SME exhibit room floor, Ari Rantala, a leader in the automation and digital solutions practice of solutions provider Metso Corporation (Helsinki, Finland), told Industrial Info this: "AI is a tool. It is not the tool for everything. Mining companies are using it to align projections and optimize processes." He said U.S.-based mining companies are "in the middle of the pack" when it comes to deploying AI, trailing fleeter competitors in Northern Europe and Australia.
"AI is going to be big because it helps companies manage more data," he continued. He said he has worked with mining clients who have improved operations by 5% to 10%, with a large chunk of the improvement coming from preventative maintenance.
In another exhibit floor interview, Ryan Hewitt, marketing director for The Weir Group Plc (Glasgow, Scotland), a global engineering company with mining clients around the world, brought AI to clients in 2013 in the form of its Motion Metrics platform.
"AI is only as good as the data on which it relies," he told Industrial Info. Mining companies' interest in AI is "quite high, and getting higher," he said, adding that interest is most pronounced in Western Australia, South America, South Africa and North America.
Mines facing declining qualities of ore are particularly interested in digital solutions that cut costs, extend mine life, identify bottlenecks and recommend ways to remove those blockages.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
