Transforming Mining Through Innovation and Digitalization

Q: How significantly has digitalization impacted the mining industry in Mexico in recent years, and what are the primary areas of opportunity that your company identifies within this digital landscape?

A: In recent years, digitalization has exerted a significant impact on the mining industry in Mexico, marking a notable evolution within the sector. Despite the inherent conservatism prevalent in the mining industry, there is a clear recognition of the necessity for integrating new technologies and advancements. Over the past decade, it has become increasingly evident to miners that enhancing production is intricately linked to technological advancements that enable better control and measurement of outcomes.

Rather than relying solely on intuition and experience, there is a growing realization that leveraging information from diverse devices and adopting technologies like the Internet of Things (IoT) can yield invaluable insights. By harnessing data from equipment and operational processes, miners can enhance their understanding of what is occurring within their operations and take more informed actions to address challenges and drive improvements. We see this movement towards digitalization and data-driven decision-making as a crucial aspect of optimizing mining operations globally.

Q: What role does Datamine want to play in the digitization of the mining industry in Mexico?

A: Datamine aims to play a pivotal role in driving the digitization of the mining industry in Mexico by providing comprehensive support and solutions tailored to the evolving needs of the sector. Since Datamine's acquisition by CSI in 2015, we have strategically acquired 16 solutions specifically designed for the mining domain. These solutions encompass a wide array of tools, each serving a distinct function and addressing various facets of mining operations.

Our expansive portfolio of solutions enables us to offer clients a more holistic approach to tackling challenges across different areas of mining. However, with this breadth of offerings comes the challenge of ensuring that both our team and our clients are equipped with the requisite expertise to effectively leverage these tools. We recognize the importance of having a skilled workforce capable of harnessing the full potential of our solutions.

Going through exploration, geology, mining planning and operations, our suite of solutions continues to expand, empowering us to provide increasingly comprehensive support to our clients. This evolution positions us to better serve the Mexican market, where we see significant potential for growth in digitalization efforts within the mining industry. Already, we have observed a shift among our clients towards embracing these solutions, indicating a growing recognition of their value in driving operational efficiency and performance. While the journey towards full digitization is ongoing, the momentum is palpable, with increasing demand for the kind of solutions Datamine offers.

Q: Since our last interview, Datamine acquired Optiro, resulting in Snowden Optiro. How has this firm helped you to strengthen your service offering and how has it helped you to attract more clients to Datamine? 

A: The acquisition of Snowden, now Snowden Optiro, marked a significant turning point for Datamine. Prior to this acquisition, our focus primarily revolved around developing and implementing tools for our clients, with consultancy and advisory services being secondary. However, with the integration of Snowden Optiro into the Datamine ecosystem, our service offering underwent a notable transformation.

This acquisition bolstered our advisory capabilities and enabled us to offer a more comprehensive suite of services to our clients. This natural alignment facilitated a smooth integration process and laid the foundation for a highly effective partnership.

The acquisition provided an opportunity for our technical experts to further expand their skill sets by tapping into the wealth of expertise accumulated by Snowden Optiro in the field of data mining. Many of our senior team members transitioned seamlessly into roles within the advisory arm of Snowden Optiro, leveraging their firsthand experience in developing and implementing solutions for various clients. Overall, we are excited about the opportunities that this merger has unlocked and are fully committed to maximizing the benefits for our clients and stakeholders alike.

Q: What are your current top three clients that Datamine offers its services and what other tree will you like to have at one point?

A: Currently, our client portfolio is dynamic, with various companies seeking our services at different points in time. Client engagements often fluctuate seasonally, as companies may transition between service providers based on their specific needs and project requirements. Despite this cyclical nature, we maintain active engagements with several prominent clients, with a focus on delivering high-quality services tailored to their needs.

In Americas region, we are currently engaged with multiple companies, with notable clients including VALE, PAS, Anglo Gold Ashanti, Fresnillo Peñoles and Grupo México (last two from Mexico) Additionally, we have ongoing projects with other clients, some of whom are based in Canada. However, our client base is continuously evolving, and we remain open to engaging with new clients across various sectors within the mining industry.

While we do not have specific targets in mind, our focus remains on delivering exceptional value and expertise to our clients. We recognize the importance of maintaining a strong reputation for technical quality and reliability in the market. As such, we are committed to providing support across a range of services, including auditing, feasibility studies, and technical consultancy. To bolster our capabilities, we often collaborate with third-party consultants who bring specialized expertise to complement our internal team. In México we have been worked closely to companies like Fresnilo-Peñoles to improve their operations with the same strategy.

Q: Datamine’s main strength in Mexico is on the operational side of mining activities, mainly regarding production results. Can you highlight how companies operating in Mexico have improved their processes through Datamine’s services?

A: Datamine's services have significantly enhanced operational processes for mining companies operating in Mexico, particularly in terms of improving production results and overall efficiency. One notable example of this is our collaboration with Mosaic in Brazil, where we conducted a comprehensive diagnosis of their operations to identify areas for improvement.

Through this diagnosis, we gained insights into their operations and proposed tailored solutions to optimize their short-term planning processes. Utilizing our Ore Control tools to improve short-term planning short-term planning, we worked closely with Mosaic's team to implement changes that would enhance predictability and efficiency in their operations.

Mosaic organized an internal workshop where 25 to 30 technical experts reviewed the results of our work, where one significant outcome of our collaboration was the improvement in the predictability of grades expected in short-term planning. By leveraging our tools and expertise, Mosaic achieved greater accuracy and efficiency in their planning processes, leading to tangible improvements in their operations.

Our solutions also had an unexpected positive impact on Mosaic's exploration team. By improving short-term planning, the exploration team gained greater visibility into upcoming drilling areas, allowing them to work more efficiently and effectively. This resulted in an increase in the team's capability and the number of equipment utilized, enabling them to work proactively and plan ahead by as much as three months in advance. It is not just to have good tools, it is also how to do this properly and with the specific tools and procedures related. 

Q: Regulations are still changing in Mexico. So how has this change in the regulation have impacted the Datamine services?

A: The shifting regulatory landscape in Mexico has impacted Datamine's services, but we recognize that such changes are part of a dynamic cycle rather than a permanent state. 

Upon recognizing the impact of regulatory changes on our operations, we initiated discussions with key stakeholders, including our manager in Mexico and the technical team. Through these discussions, we formulated a strategic response aimed at diversifying our market presence and expanding our opportunities.

Our strategy involves actively seeking opportunities in alternative areas or markets beyond Mexico to bolster our pipeline. By diversifying our client base across multiple regions, we reduce our dependence on any single market and mitigate the effects of regulatory uncertainty. This proactive approach enables us to adapt to evolving circumstances and maintain our momentum even if you have problems in one area.

Q: ESG has become a priority, rather than an added value, for companies in the mining sector. How attractive have your ESG solutions become in the industry and how are you marketing them in Mexico?

A: ESG has emerged as a critical priority within the mining sector, transitioning from being merely an added value to an essential component of operations. Our journey into the ESG domain began with the acquisition of ZYGHT, a company based in Chile. This acquisition marked our entry into the ESG space and laid the foundation for further expansion.

Currently, we have four key ESG solutions in our portfolio that come from Chile, Brazil, South Africa and Australia. Additionally, we are exploring opportunities in other regions, such as Brazil, where similar solutions are being considered. Our strategy is to extend our presence across the Americas, leveraging our existing offices in countries like México, Peru, Canada and USA

We are actively engaging with clients across various industries, not just limited to mining, as ESG solutions have broad applicability. Our approach involves showcasing our offerings and engaging in discussions to demonstrate how our solutions can help address ESG challenges effectively. However, there is still considerable work to be done in raising awareness about the capabilities of our ESG solutions and the value they can bring to organizations.

Q: What would need to happen for you to consider 2024 a successful year for Datamine? 

A: For Datamine, 2024 will be considered a successful year if we make significant strides in improving our internal processes and enhancing the quality of services we provide to our clients, particularly in Mexico. Our focus is on fostering better communication with our clients to understand their challenges and collaboratively find solutions. We aim to help them optimize their operations by leveraging the tools they already possess more effectively. While expanding our product offerings is always a consideration, our primary goal is to empower our clients to maximize the value of their existing resources.

An important initiative that we are particularly proud of and intend to continue nurturing is our university program in Brazil. This program, which started four years ago, involves training students from different universities for a month at our offices, after which they return to their universities to assist teachers in practical classes. After a year of this arrangement, some students are selected to become interns at Datamine, where they receive further training and experience. This program not only benefits the students by providing them with valuable real-world experience but also strengthens the connection between the industry and academia.

We are also extending this program to other countries like Peru, Chile and Mexico since we have seen the success of this program with over 2,000 students trained. By providing students with practical skills and knowledge, we are not only contributing to their personal and professional development but also ensuring a steady pipeline of skilled talent for the industry.