Unlocking value in mining capital projects: the role of digital

AWP is a disciplined project management system that segments capital project activities into manageable work packages for each phase, facilitating effective project sequencing and coordination among processes. AWP defines the scope of work, timelines and resources for each phase, organizing them into different packages.

The packages are interlinked and ensure all necessary elements of each phase are in place. Such details can often be missed or overlooked in traditional project processing, creating bottlenecks to the timely execution of the project.

BIM provides a digital representation of the asset with detailed information of every structure with specifications such as 3D designs, size, quantity, construction sequence, associated cost and resources, which can be leveraged throughout the project lifecycle. BIM models also offer the flexibility to test various designs, materials and equipment through modifications, which aids in evaluating their effects on cost and feasibility.

Through Mine Information Modeling (MIM), metals and minerals companies can plan the construction of underground or open pit mines, refineries, etc. through a visual simulation using varied models. BIM models span from 3D conceptual designs to 8D fully integrated representations that encompass detailed design, scheduling, cost, safety and sustainability information.

Evolution of BIM models

GIS assists in analyzing the geospatial and environmental information of a site, area or surface to provide insights into terrain, vegetation, soil type, etc., which will enable better construction planning. GIS is popularly used in mining exploration to analyze geospatial data for identifying mineral deposits and assess the viability of a mine investment.

Opportunity exists in leveraging GIS for capital project planning (e.g., satellite and drone imagery), and other forms of geospatial data can be used to create detailed site plans, support logistics and construction design, and enable long-term project monitoring.

Digital twin technology uses sensors, Internet of Things (IoT) devices and artificial intelligence (AI) to collect and synchronize real-time data to create an accurate representation (virtual replica) of a physical asset or process. There are different kinds of digital twins varying by project need and scope.

Within the scope of capital projects planning, digital twin technology can be leveraged throughout the project lifecycle starting from simulating engineering designs to continuous monitoring of construction progress by comparing actual structure with planned models.

While the use of digital technologies leads to time and cost savings, there is an upfront expense for system upgradation, maintenance cost and trainings. Uncertainty on whether the required returns will be delivered for small businesses or projects makes adoption challenging.

Adoption of new technologies requires upskilling and reskilling the workforce to ensure smooth implementation and maximize adoption. Without adequate training, the workforce may struggle to use technologies effectively after handover, potentially leading to increased operational costs. Teams outside of the capital project planning may also need to invest in trainings to be able to use the output for their own operations. As the mining sector is already facing shortage of skilled labor, it is imperative for metals and minerals companies to invest in trainings.

A leading metals and minerals player in Brazil aimed to improve the production process and extend the operational lifespan at its unit based in Brazil to enable tailings stacking. To achieve this, we were engaged to work closely with its teams in optimizing the construction planning process by identifying gaps and redesigning the schedule to promote seamless execution. The project leveraged digital technologies — AWP, BIM and AI — to streamline the processes, resulting in reduced costs and improved productivity.

This project represents a significant milestone for the client and the advancement of efficiency in production processes. By applying digital technologies such as AWP, BIM and artificial intelligence, it was possible to optimize the planning and execution of activities at the mine site, ensuring greater precision, cost reduction and increased productivity. 

The teaming enabled the identification of opportunities for improvement in planning, enhancement of the schedule and adoption of an integrated approach to the construction phases. Moreover, the results achieved — including improved safety, minimized rework and clearly defined milestones and resources — underscore the importance of combining technological innovation with technical expertise to maximize operational benefits and ensure the sustainability of operations.

Petrobras aimed to automate and streamline the manual process of managing information for its refining, gas and energy engineering projects. The absence of a centralized process for BIM utilization in Civil Engineering, Architecture, HVAC and Layout has led to challenges, further compounded by the lack of data standardization across various disciplines. EY team helped in implementing a building information management system to save time, enhance productivity and reduce costs.

Companies can begin by deploying technologies in small to medium-sized projects to identify the suitability and assess the impact. Based on a successful pilot, a strong business case can be developed — highlighting the short-term cost savings and added benefits over the lifecycle — to get the buy-in of executives and leaders. This would support the implementation of an extensive digital strategy across the organization.

The first step in devising a digital strategy is to diagnose the status of digital readiness of the project owner today and understand the desired output through transformation. An ideal strategy must clearly define:

• Why: Understand the need for adopting digital technology and how it will address the specific issues or pain points. The purpose of the technology should be clear.
• What: Identify the most suitable technologies and avoid deploying too many solutions to simplify process. For example, selecting between a basic BIM 3D/4D model or an extended 6D/7D model with additional details would depend on project needs.
• How: Evaluate different models – buy vs build vs outsource – as per the project budget, timelines and objectives. Digital strategy must be set at the time of project cost estimation phase for an accurate forecast and to prevent overruns later.

Outsourcing is a popular choice for the deployment of digital technologies in capital projects as companies aim to save on costs and yield quicker results by leveraging external expertise. Engineering, Procurement and Construction Management (EPCM ) firms or consulting players have access to the best tools and can develop the required platforms as per the project needs. Companies can also develop an early model and outsource the implementation to external experts to attain positive results.

Organizations often struggle with interpreting and analyzing data from different digital software that doesn’t align. To simplify the process, digital technologies are integrated throughout the value chain to promote data reconciliation, leading to better decision-making process. Having a common data environment can improve the project management process.

Effective communication about the benefits of digital technologies is needed to establish the necessity of its implementation and remove perceptions or biases. Change should begin at the leadership level to create a positive environment and build credibility for the workforce. Regular employee meetings can be planned to monitor the sentiment and proactively address concerns, which can help in minimizing cultural resistance.

Companies often struggle to manage digital models once the service provider hands over it. There is need for proper training to be able to continue using the data and models to yield positive results. Project teams must also conduct demonstrations and workshops to upskill the workers and prepare them for making the best use of these technologies.

As data has become a valuable asset in recent times, it is important to establish data protection and breach prevention systems to ensure security. AWP, BIM, digital twin and GIS technologies contain sensitive information on building structure, vulnerable areas, engineering designs, etc. that can be misused. Measures such as data encryption, backups, access controls and anti-malware systems must be established to promote security.