Spending on data analytics in the mining sector is set to nearly double, reaching US$1.4 billion by 2030 from US$780 million this year, according to a forecast by global technology intelligence firm ABI Research.
The study delved into the digital technology use of six leading mining companies to gauge its impact on their financial metrics.
“The results revealed that investments made by ArcelorMittal, Glencore (LON:GLEN), and Vale have not yet significantly grown the bottom line,” commented Michael Larner, Industrial and Manufacturing Research Director at ABI Research.
“While correlation doesn’t necessarily mean causation, BHP Billiton (LON:BHPB) is deploying digital technologies across its operations and achieving some impressive financial metrics.”
Multi-faceted applications
Larner noted that BHP (ASX:BHP) Billiton's robust financial performance is partly due to real-time data analytics, which also enhances safety and operational capacity.
In contrast, Rio Tinto (ASX:RIO) has leveraged analytics for operation automation, whereas Anglo American (JO:AGLJ) uses digital twins for equipment and control systems.
“As much as we’d like to believe that digital transformation is the sole component delivering to the bottom line, numerous other factors contribute to the firm’s financial performance," said Larner.
Suppliers like Hexagon and GE Digital also play a role in supporting operational goals through diverse applications.
The findings are part of ABI Research’s Digital Transformation in the Mining Industry Update, a component of the company’s Industrial and Manufacturing Markets research service.