How Cisco sees Chile mining sector becoming ‘100% connected’

Cisco recently opened an Advanced Technology Center in capital Santiago to provide innovation support to Chilean mining companies.

BNamericas interviewed the US firm’s general manager in Chile, Claudio Ortiz (pictured right), and technology and engineering manager, Víctor Toscanini, about the services the center will offer and their view on the mining sector’s digital transformation.

BNamericas: Cisco recently inaugurated an Advanced Technology Center (ATC) in Chile. What is the objective behind this center?

Ortiz: The ATC is part of Cisco’s global program Country Digital Acceleration, which is a program initiative that looks for countries with significant growth potential and then assigns an investment amount so the country can obtain resources to boost innovation, development, and hopefully its GDP.

Toscanini: As part of this global program, there are three centers of this type in Latin America and we will soon open the fourth. We have one in Brazil, one in Mexico, then Chile and the fourth [will be] in Colombia; all with different areas of expertise.

BNamericas: What is the focus of the Chilean ATC?

Toscanini: In Chile, the primary focus is mining, then electricity, connected communities, and cybersecurity.

BNamericas: How much did it cost to develop this center?

Ortiz: With regard to investment, it is a process due to the incorporation of different technologies. At the moment, we have invested more than US$1mn in the ATC, but as we add solutions related to mining, electricity, connected communities and cybersecurity, new laboratories are created, and the investment amount increases. 

BNamericas: Is the center similar to the integrated operations centers of some mining companies?

Toscanini: There is a multidisciplinary team around the center. It works as a meeting point for private and public companies, our business and ecosystem partners, but also academia.

One of the things that we are doing is a study about the digital status of medium-size mining [companies], jointly with national mining association Sonami and the Advanced Mining Technology Center of Universidad de Chile, to support the sector throughout this journey of incorporating new technologies into their processes.

On the other hand, there are some demos and concept tests. We have a load-haul-dump truck [mainly used in underground mining operations for ore transportation] that allows us to do some tests.

Likewise, with our ecosystem partners we are creating some laboratories and mobile kits so that customers can test [technologies] at their sites.

BNamericas: You mentioned academia. Is it important to develop new capabilities to meet the technological demands of the industry?

Ortiz: Without a doubt. At Cisco we are focused on creating specialists in areas of our concern. We have the Networking Academy and in Chile we currently have more than 22,000 students who, in one way or another, are getting a certain level of specialization for when they join companies and adding value to the productive chain in the case of the mining industry.

BNamericas: Will you also work with the mining piloting centers?

Toscanini: Yes. With the number of companies that are rallying around this initiative, we are definitely going to work with them.

BNamericas: You previously mentioned connected communities. What exactly do you mean by this?

Ortiz: It means how we turn into a reality everything that is related to the internet of things, but that also has an impact on daily life, not only at the industry level - especially now that we have 5G. 

Today with 5G, communities become more relevant because it is a technology that allows for higher density and higher speed [in data transmission]. We will therefore be able to reach a place where there were connectivity problems before.

When we talk about connected communities, we mean mining, schools, citizen security, telemedicine, all the things that help the community have a better life with the support of technology.

BNamericas: Do you think Chile is one of the countries in the region that is most open to embracing a digital culture?

Toscanini: Absolutely. We did a study in 2019 and Chile came in first place. The study includes different dimensions considering infrastructure, human capital, and entrepreneurship ecosystems.

That was one of the reasons why Cisco choose to make this ATC investment in Chile.

BNamericas: Do you think the pandemic has accelerated the digital transformation of the mining industry in Chile?

Ortiz: Yes, totally. Actually, in our conversations with mining clients, they have told us that this health crisis made them accelerate their digital transformation processes. And it has meant that many tasks that were previously done in person have been moved to the homes [of the employees]. Productivity has hardly been impacted, resulting in some myths being dismantled.

BNamericas: Do you think there is now less risk aversion towards technology, considering the remote control and automation of mining sites?

Ortiz: I would say yes. As a result of the digital transformation acceleration, I believe that many myths have been dismantled.

Today, more than ever, the mining industry is looking favorably at the automation of productive processes, the supply chain, and mineral extraction.

I think there is a lot of interest to investigate and that is good for the industry and the country, because these solutions can be exported to other countries so that this can become more widespread. 

BNamericas: In 2019, a study from EY showed that for managers of mining companies the issue of cybersecurity was not that relevant. Do you think that as a result of the pandemic this issue is becoming more important?

Toscanini: I absolutely agree. It is becoming more important because it is publicly known that some cybersecurity incidents have occurred at different companies in Chile. 

In 2019 it was not just the mining companies, there were many clients, companies that looked at cybersecurity from a distance, until something happened to them.

When operations are integrated, the mine is connected and monitoring is carried out. There are many processes underway and with that the vulnerability to attack increases.

So, there is greater awareness regarding the issue of cybersecurity from the point of view of [public] policies, solutions and people. 

Cybersecurity has already become an issue that is on the table of company managers.

BNamericas: Where is the digital development of the mining industry headed?

Toscanini: 100% connected mining, from the rock to the port. Technology is not a problem today. The technology is there and it is therefore necessary to adapt it to the processes.

Then mining will be 100% connected, integrated, with a security layer and constantly creating new applications. I see the industry adopting technologies quite rapidly.

Ortiz: I agree with what Victor says. I see an industry that is 100% connected and with 100% focus on security because today it is key - and mining is no stranger to that - that industry has safe processes from the point of view of cybersecurity.

BNamericas: What do you mean by ‘connected’?

Toscanini: Having the ability to remotely manage operations, remote visibility, and monitoring.

BNamericas: Will this adoption of technologies make the industry more inclusive?

Ortiz: Yes, this will make the mining industry more inclusive and with greater participation of women. I think that as a result of technology more areas of work are opened up. Technology is an enabler in every way and makes everyone have the same opportunities.

Photo credit: Cisco