The mining industry is no stranger to technological innovation. It has a long history of adopting new technologies in the quest to get better at mining and to keep people safer. So it’s no surprise that in today’s digital age miners are increasingly looking to the cloud to provide the next advantage.
In a recent post, I talked about how adopting cloud is opening doors for miners to work in new ways and to innovate their internal cultures. Today, I’d like to go deeper to explore how miners are looking to the cloud and going beyond traditional investment models to innovate quickly and at lower cost.
Investing Long Term
Let me start by explaining what a “traditional” investment in the mining world looks like. When mining companies set out to build a new mine or to extract deeper resources from an existing one it is a tremendous undertaking.
A recent podcast from McKinsey captured this well: “The interesting thing about a mine that might be different than almost any other kind of operating asset in other industries is that they take a long time to build. Ten years would be a good expectation from the time that you say, ‘We like what the ore deposit is here, and we want to build something,’ to the time when you ship the first metal or commodity. These things take a long time to get up and running.”