Ericsson targets mining tech solutions growth in LatAm

Swedish telecom provider Ericsson plans to expand its smart mining solutions business in Latin America, with growth spurred by the roll-out of 5G networks over the coming years.

The company is in talks with mining companies in Colombia, Peru and Argentina regarding its connected mining services, which use communication technology to boost automation and improve monitoring, Fernán Izquierdo, director of the company’s Latin American center of excellence, told BNamericas.

Talks are also expected to begin soon with a mining company operating in Mexico.

Ericsson has identified 600 mines in the region that could benefit from its services, which can lower costs, boost productivity and improve safety and environmental performance, according to Izquierdo.

“We hope that the business will now grow. Starting this year we are optimistic that we will sign a contract with a mining company [in Latin America], and above all, that we will see growth in the coming years when 5G arrives and the market matures, but we are very optimistic about the mining industry in Latin America,” he added.

SLOW START

While Ericsson’s connected mining solutions are being used in around 20 mines globally, including in Canada, Australia and Papua New Guinea, the company has yet to get its technology into any Latin American mines.

This is in part due to the slower roll-out of 5G in the region.

Globally, demand for Ericsson’s connected solutions has started to take off in the past one or two years with 5G, which has enabled it to expand its solutions in areas such as autonomous drill rigs.

“While other parts of the world, such as the US, Europe and Asian countries, are very advanced in the roll-out of 5G technologies, Latin America is still behind. It is just getting started,” Izquierdo said.

Ericsson expects the first roll-outs of 5G networks in the region kicking off in Chile and Brazil in 2021, Eduardo Ricotta, CEO for Brazil and the Southern Cone, told BNamericas last year.

Another challenge in the roll-out of connected mining solutions globally relates to attitudes to new technology in the sector.

“Mining is a very traditional industry. It has been doing business in the same way for 50-100 years, it is very risk averse, and when companies advance a mining project, they look at all the gold or silver they can extract over 30 years. It is a tricky industry for the adoption of new technologies,” Izquierdo said.

“This is the main problem we are seeing, that many mining companies don’t know about this type of technology or the benefits it can bring.”

GLOBAL GROWTH

Despite the challenges, Ericsson expects sharp growth globally in the smart mining business, which it sees tripling in size by 2025, by which point 25% of mines will have moved to automated operations.

Automation has the potential to save 1,000 lives and prevent 44,000 accidents by 2025, according to Ericsson research.

Digital mining solutions can also boost productivity by 30-60%, while reducing maintenance costs by 20-40%.

In particular, significant gains can be achieved through running autonomous vehicles and ventilation systems, according to Izquierdo.

While some Latin American companies such as Buenaventura are advancing plans for automated mines, in Chile the digital transformation is being held back by permits required for testing new technology, according to mining watchdog Sernageomin.