are:
• Operational inefficiencies: Legacy systems
and manual processes both increase human
error and reduce efficiency.
• Environmental Impact: The industry makes
a huge contribution to depleting resources and
emitting greenhouse gases.
• Safety: Owing to dangerous chemicals,
machinery failure, and unsafe working
conditions, mining remains one of the most
hazardous sectors.
• Regulator pressures: Sustainability practices
are mandated by more stringent environmental
regulations and ESG (Environmental, Social,
and Governance) expectations Brown et al.,
(2024).
In response to such issues, companies are
employing technologies such as artificial intelligence
(AI), the Internet of Things (IoT), cloud computing,
and data analytics as part of digital transformation.to
provide efficiency and sustainability
Carter et al.,
(2023).
2 LITERATURE REVIEW
2.1 Current State of Mining and
Metals Industry
2.1.1 Market Dynamics
As a result of changing market circumstances,
sustainability needs, and geopolitical tensions, the
metals and mining industry is going through
significant transition. Ernst & Young (2024) reveals
that 84% of mining executives feel that digitalization
is required to remain competitive. Various studies
illustrate how market uncertainty, including
unpredictable commodity prices, is impacting
operational performance and investment plans. Firms
are also being compelled to embrace more resilient
and sustainable business models by increasing
environment and regulatory pressures Chakraborty, P
and Verma, R. (2023).
As per research, supply chain disruption and
intensifying competition from developing markets,
typical of global crises, also escalate market pressures
Ernst and Young (2024). To contain supply chain
risks and enhance resilience, these findings from the
studies indicate the imperative for operational agility
using digital technology Gonzalez, H and Pereira, A.
(2024).
2.1.2 Operational Landscape
Sliding ore grades, increasing costs of production,
and increasing energy consumption are the primary
reasons behind the ongoing growth in mining
operational complexity Johnson, M. (2023). Studies
indicate that operational costs have risen by 12%
annually, mostly due to shortages of labor and
regulatory requirements (Kumar, A and Reynolds, T.
2023). Also, the skills shortages in the industry hinder
advanced mining technologies from being
implemented. Operational strategies are evolving to
address environmental issues and the demand for
sustainable methods of extraction. These issues
emphasize the use of digital technologies in process
streamlining and reducing costs while adhering to
international standards of sustainability (McKinsey
and Company 2024).
2.2 Digital Transformation Trends
2.2.1 Industry 4.0 Integration
Industry 4.0 technology that enhances predictive
abilities, reduces expenditure, and boosts efficiency.
There has been a reduction in costs to the tune of 15%
to 20% due to the application of autonomous mining
machinery, reports show. Similarly, it has been
demonstrated that IoT-enabled sensor networks and
AI-driven analytics can boost equipment efficiency
by 25% (Mining Technology Institute, 2024).
Because it enables real-time asset monitoring and
minimizes downtime, the use of digital twins in
predictive maintenance has also become increasingly
popular. Research goes on to explain how AI-
powered process automation is improving decision-
making through the analysis of both historical and
current data (Patel, K and Wang, J, 2023).
2.2.2 Emerging Technologies
AI and IoT are not the only technological
developments propelling digital transformation in
mining. The use of blockchain technology to ensure
ethical sourcing, supply chain transparency, and
regulatory compliance is growing (PwC, 2024). It
also emphasizes how edge computing can lower
latency and improve operational efficiency by
enabling real-time data processing at distant mining
sites.
Automation and robotics have also demonstrated
a great deal of promise, increasing safety by reducing
human exposure to dangerous situations. A change
towards a mining ecosystem that is more intelligent