The time has come for mid-tier mining to get its head in the cloud

The time has come for mid-tier mining to get its head in the cloud

Photographic portrait of Stephanie Porter

5 minute read 15 May 2024

Related topics

Mining and metals

Energy and resources

Co-authored by:

Joshua Palmer, Partner, EY Canada SAP Mining & Metals Co-Lead
Theresa Sapara, EY Americas Mining & Metals Centre of Excellence Co-Lead
Silvino Mezzari, Partner, Consulting

Canadian mining companies with their eye on the future are integrating data and business processes, using the public cloud to futureproof their businesses.

In brief

In an era when reporting requirements continue to increase, a transition from paper-based tracking to enterprise resource planning (ERP) solutions will be a must if mid-tier mining companies are to meet regulatory requirements and reporting expectations.
To remain competitive, there’s never been a better time for mid-tier miners to transition to affordable public-cloud based ERP services like SAP S/4HANA Cloud Public Edition and stay ahead of the progress curve so they aren’t left in the dust.
Today’s cloud-based SAP solutions are fit-for-purpose and pocketbook, agile enough to meet the needs of growing companies and — enabled by EY’s mining and metals template — can have mid-tier miners up and running for a fraction of the time and cost of historical SAP solutions.

EY Americas Mining and Metals Centre of Excellence

The EY Americas Mining and Metals Centre of Excellence offers companies access to cutting-edge services and innovation-led solutions.
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The mining industry of the future is being shaped today. Market volatility and fluctuating commodity prices are demanding efficiency. Modernizing operations will be critical for mining companies — particularly mid-tier miners looking to scale for the future.

While major mining companies have already invested in comprehensive systems to standardize processes and data on dedicated, private cloud platforms, mid-tier mining companies have historically shied away from top-tier enterprise resource planning (ERP) systems such as SAP. Perceived complexity, cost to implement and resulting IT demands have contributed to less complex companies’ continued reliance on disparate technologies and manual, Excel-based processes, with ERP solutions topping their wish lists for the future.

In addition, with increasing expectations — in the rate of mining and extraction, environmental impact, the growing threat of cyberattacks — mining companies of all sizes are facing increased scrutiny and reporting requirements from governments and regulatory bodies. These pressures have many miners questioning how to operate efficiently over the next decade.

Regardless of whether they’re using Microsoft Excel or QuickBooks to manage their business, or legacy ERP technologies that lack capabilities they need, economic turbulence and geopolitical tensions are driving many mid-tier miners to evaluate if they have the tools necessary to enable anticipated growth, or if the time is right to transition to cloud-based ERP services.

Still others may be asking whether they can afford to transition to robust technologies like SAP’s. The question they should be asking is whether they can afford not to.

Cloud and clear

Times have changed. SAP S/4HANA Cloud Public Edition is a ready-to-run, cloud-based ERP solution that enables companies to quickly and cost-effectively take advantage of leading processes and solutions. And SAP manages the day-to-day sustainment of SAP systems themselves — a compelling value proposition for mining companies.

The payoffs of SAP’s public cloud solutions can be significant for mining companies that find themselves lacking visibility or struggling with comparability across their assets, for example. Or, perhaps, when a heavy reliance on work done outside of their systems is creating pain points that distracts from the business at hand.

Having a centralized, scalable solution with visibility across operations and corporate functions can help embed resilience and agility and provide greater access to insights for reporting and forecasting. The benefits add up:

Efficiency gains. Digitizing operations and intelligent automation have proven to enhance productivity and efficiencies and realize critical time and cost savings. Standardized SAP-enabled business processes and solutions across assets, for example, can support reliable and robust process execution and reporting.
Data-driven decision-making. With readily available, real-time data, mining companies can make the most of value and supply chains, better allocate resources and benefit from predictive maintenance schedules that limit downtime and protect assets.
Security of systems and data. In a world where cybersecurity issues continue to escalate, timely updates and public cloud security measures can add an extra layer of protection and distribute risk.
Reporting and compliance. At a time when decarbonization targets loom and disclosure and reporting pressures mount, readily accessible data can help meet regulatory requirements, with nonfinancial data bolstering mining portfolios and inviting critical investment.
Growth and expansion. In addition, integrated platforms can help position businesses with long-term plans for success when it comes to mergers or acquisitions, allowing new assets to get up to speed more quickly or, in the case of a potential sale, supporting evaluations.

SAP powers mining

When it comes to ERP systems, SAP sets a high standard in the mining industry. And with their public cloud version, they are proven to be an affordable solution for mid-tier companies.

Moreover, the EY Americas Mining and Metals Center of Excellence (COE) has worked closely with SAP and industry leaders to glean insights and capture the needs of the mining community and address mining-specific processes, advanced analytics, intelligent automation and ways to simulate environmental impact, and break out costs for projects.

We’ve developed a preconfigured mining and metals template that includes mining-specific, SAP-enabled processes and solutions across finance, procurement and plant maintenance. Implementing SAP’s public cloud solutions alongside EY’s SAP mining and metals template can be completed for a fraction of the time and cost of historical SAP solutions.

Summary

If your current systems are not effectively enabling your future operations, or if they’re not expected to meet your anticipated growth, start planning now to avoid having your technology limiting the execution of your strategic imperatives.

EY can help accelerate your transition, bringing our SAP and industry sector experience, along with a deep understanding of the mining value chain, to benefit your organization. We’d be happy to work with you to create a bespoke solution and facilitate a roadmap to give your teams the jump they need to anticipate challenges and the agility to take advantage of opportunities in an increasingly competitive market. Let’s get the dialogue started.

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EY and SAP help power the intelligent enterprise for the Transformation Age. At EY, our people are bridging exceptional human insight and SAP platforms to reframe the future.

About this article

Photographic portrait of Stephanie Porter

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