Driving Digitalization

in Mining Industry
Proven technologies help mining companies
turn fully digital and gain a competitive edge

Unrestricted © Siemens AG 2017 siemens.com/mining

Digitalization and electrification are the next levers to yield
productivity within the Process Industries

Technology applications
Technological drivers
Integrated • Use of AI in exploration
engineering • Cloud based solutions
• Integrated engineering and
and integrated • Computing power Digital Enterprise plant optimization
operation • Machine learning & AI
Integrated Engineering
and Integrated • Product development and
Operations manufacturing optimization
• Communication & connectivity
Digitalization • Lot size 1 customization
• New sensors & edge devices • Process simulation
• Digital twins TIA@Process Industry • Production & planning
• Simulation Perfect interaction of all optimization
Digitally components along the life
• Remote & Autonomous
enhanced cycle
operations
automation and Automation • EHS improvements
electrification
• Predictive analytics for
TIP@Process Industry
operations and maintenance
Electrical power wherever
Electrification and whenever • Business model innovation
• Supply chain integration
Time

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Page 2 May 2018 Process Industries and Drives | Mining
Domain know-how and expertise in OT and IT are key drivers for
value creation

Digitalization MindSphere1 Digital

Expertise
Siemens Digital
Software Services

Automation
Chemical Pharma

Oil and Water

Gas and WW
Electrification Digital enhanced
Electrification and
Automation Marine Fiber

Mining Cement

1 The cloud-based, open IoT operating system Domain

Unrestricted © Siemens AG 2018 Know-how
Page 3 May 2018 Process Industries and Drives | Mining
Siemens is already preparing for the future:
US$ 8.5 b+ in Software Acquisitions since 2007

1958 1995/96 2001 2008 2009 2011 2012 2013 2014

ORSI ETM/ Innotec Ber- Elan Rugged- VR Con- Preactor Camstar
XHQ wanger – and Active Com IBS text – Walk-
OGM inside
COMOS

1958: Beginning of production automation;

Siemens receives patent for SIMATIC

Plant Engineering
and Execution

UGS – Perfect Kineo TESIS Polarion CD- Mentor

Team- Costing LMS adapco Graphics
Product Development center/ Solutions
and System Engineering NX Vistagy

2007 2012 2013 2014 2015 2016 2017

Unrestricted © Siemens AG 2018
Page 4 May 2018 Process Industries and Drives | Mining
 Main challenges for Mining

Lower Grade Go deeper HSSE Costs Output

• Continuously decreasing • From open pit to • Health, Safety in tough • CAPEX efficiency • Increasing ore
of average ore grade underground mine environment • OPEX reduction recovery
• Less large high quality • Deeper underground • Availability / development • Standardization • Asset Efficiency &
deposits operations of skilled people Reliability
• Faster innovation
• Production and
Resources efficiency

Cyber Security

Access of data, Intellectual property, New business models

Unrestricted © Siemens AG 2018

Page 5 May 2018 Process Industries and Drives | Mining
 Digital Architecture Concept for Mining Operations

Enterprise Performance Improvement Corporate Systems

PLM applications, Collaborative CAE platforms, ERP applications, executive dashboards
Advanced analytics tools

Full operations Business plan

Operations Management Level Overall operational transparency5 and strategy6
Material flow simulation, value chain optimization
improvement1

Enterprise Operations Management

Infrastructure
Consolidated
Intelligence

MOM/MES applications
Multisite data2

Operational Level
Advanced process control, online simulation, Multisource Synchronized
predictive maintenance, virtual commissioning Local operational data collection7 execution plan8
improvement3

Consolidated Operational Database

Engineering Improvement shop floor data4 Control Level – Automation and expert mining systems
Input9 Project10 Field Level – Smart sensors, IoT devices

“As built” data

Engineering Database
CAD/CAE platforms, EDM “As is” data

Planning and Design Construction and Assembly Commissioning and Start Up

1 E.g. planning, advisement; 2 E.g. production points, logistics infrastructure, stock availability; 3 E.g. set-point, configuration, training, inspection plan); 4 E.g. process data, equipment health; 5 E.g. Real-time production KPIs, stock availability per site;
6 E.g. sales orders/forecast, operational targets; 7 E.g. Pit-to-port, multisite, multisystem; 8 E.g. Control command, schedule, work instruction, training plan; 9 E.g. process and equipment design and datasheet; 10 E.g. conceptual model, innovation program, R&D output

Unrestricted © Siemens AG 2018

Page 6 May 2018 Process Industries and Drives | Mining
Mining 2030 - Big Picture
Handling Lower Grade will be the major challenge for the mining industry

Unrestricted © Siemens AG 2018

Page 7 May 2018 Process Industries and Drives | Mining
Selected Applications for Digitalization

Manufacturing
Execution Systems
Belt Conveyor
Simulation

Automated
Stockyard Management

GMD Asset
Health Analytics

Executive
Dash boarding

Unrestricted © Siemens AG 2018

Page 8 May 2018 Process Industries and Drives | Mining
 Reference VALE S.A., Brazil

Enterprise Manufacturing Execution System for Mining Operations

Development and implementation of the new MES

system in all units of iron ore and manganese
for 38 sites. Siemens executed the phases
Customer benefits conception, implementation, integrated tests
Integration of existing systems to automate and assisted operation for
the data extraction and transparent KPIs
updated in real time. Proven Customer value: • Excavation
Saving US$70 m up to 2020 • Material Beneficiation
• Material Stock and Shipment

Source: Vale Newsroom http://saladeimprensa.vale.com/en/Paginas/Articles.aspx?r=Vale_estimates_

saving_more_than_USD_70_million_with_innovation_&s=Innovation__Technology&rID=1007&sID=4

Unrestricted © Siemens AG 2018

Page 9 November
May 2018 2017 Process Industries and Drives | Mining
Vale’s Iron Ore value chain is extensive and complex

4 integrated production systems

(mine-railroad-ports)

22 mines – total production: ~345Mt

11 pelletizing plants across 3 sites (Brazil and Oman);

5 railroads to connect mines and ports;

4 iron ore ports in Brazil; 1 port for blending and

distribution in Malaysia;

5 for blending and distribution in Malaysia China;

~120 ships

Unrestricted © Siemens AG 2018

Page 10 May 2018 Process Industries and Drives | Mining
 GPV-M Project Structure

GPV Mining communicates with other systems, receiving and sending information, so called interfaces.
SAP
GPV Dashboards
SCM (APS Ferrosos) GPV Railways

Extraction Beneficiation Stocking Scheduling Shipment GPV Ports

• 200+ features • Multi-language, timezone

• KPI engine calculator

• 50+ integrations GPV Mining
Quality
GPV Pelletizing
• Self-service
• 90+ KPIs Downtime events
report/dashboard module
Monthly Closing Workflow
LIMS (Nautilus)

Dispatch (Smartmine, Scalier (BROD, CAP,

PIMS (Infoplus, PI)
Modular) SISGEN)
B2B (MRS)
Supervisors, PLC, Instrumentation
Unrestricted © Siemens AG 2018 Source ARC Forum Event, https://arcadvisorygroup.sharepoint.com/sites/extranets/client-portal/arc-
forums/_layouts/15/guestaccess.aspx?docid=0cc5d695be37c4982973329b29c2947cc&authkey=AYfS-ukSEcXxI2oJrs_48gM
Page 11 May 2018 Process Industries and Drives | Mining
GPV-M Project –
Highly Customized MES for Multiple Operations

Increased availability and Improved system’s stability and performance, reducing operational
performance and compliance risks

Improved productivity and Process mgmt. and KPIs standardized and centralized in a single
consistency for reporting and database, improving production visualization and allowing
tracking the mining chain benchmarking

Agility and cost avoidance in 40% of cost avoidance in rollout projects. Flexibility and agility to
rollout for new operations deploy new operations

Technology cost reduction 60% cost cutting in support costs (licences, infrastructure and service)

Use timely and more reliable information on production, quality and

Improve asset utilization assets to take better decisions and improve asset utilization

Confirmed On Track. Measure depends on full program implementation

Unrestricted © Siemens AG 2018 Source ARC Forum Event, https://arcadvisorygroup.sharepoint.com/sites/extranets/client-portal/arc-
forums/_layouts/15/guestaccess.aspx?docid=0cc5d695be37c4982973329b29c2947cc&authkey=AYfS-ukSEcXxI2oJrs_48gM
Page 12 May 2018 Process Industries and Drives | Mining
 Reference LEAG, Germany

Fully Autonomous Stockyard for Stockpile Power Plant Boxberg

• Stockpile equipped with 4 stackers/reclaimers

including belt conveyor system and fully
automated train loading
Customer benefits
Cost reduction, optimized efficiency by keeping • Complete electrical, automation, power
coal quality and quantity, optimized energy supply equipment including design,
consumption, improved safety due to collision execution, commissioning and service
avoidance system and reliability of the whole contract to ensure reliability
stockpile app. 99% without redundancies • Since 2009 in operation

Unrestricted © Siemens AG 2018

Page 13 November
May 2018 2017 Process Industries and Drives | Mining
 Reference Ivar Aasen, Norway

Remote Operations of an Offshore Production Platform

• Fully integrated Electrical, Automation and Digital

solution of an onshore operations center for
seamless remote operations of an offshore
Customer benefits production platform in North Sea.
Cost savings and improved safety by remotely
operating technologies. More efficient • Data-driven advanced condition monitoring of
maintenance campaigns due to data driven mission-critical equipment.
condition monitoring. Proven customer value: • Expert support based on real time big data
30% cost savings and reduction by 70% of onsite analytics, process simulation and training software.
team.
• Similar solution is applicable for harsh
environments in mining operations (e.g.
underground mines, isolated areas).
Unrestricted © Siemens AG 2017
2018
Page 14 November
May 2018 2017 Process Industries and Drives | Mining
 Latest Release in Digitalization

Asset Health Analytics for Gearless Mill Drives (GMD)

• Data analytics solution with

detection of looming incidents
based on GMD operational
Customer benefits fingerprints and using AI
Cost savings, higher availability of grinding mills algorithms to provide decision
and optimized maintenance plan and campaigns advisory for timely counter
by earlier failure detection and real time advisory measures.
for counter measures.
• GMD Asset Health Analytics is
MindSphere- ready and
currently operational within the
Drive Train Analytics platform

Unrestricted © Siemens AG 2017

2018
Page 15 November
May 2018 2017 Process Industries and Drives | Mining
XHQ Demo for Cement
Drill down functionalities

Unrestricted © Siemens AG 2018

Page 16 May 2018 Process Industries and Drives | Mining
XHQ
Operations Intelligence & Analytics
Operations Intelligence
• Plays an important role in managing business
performance
• Presents KPIs on plant or enterprise level
• Helps prepare substantiated decisions
Headquarter XHQ
How am I doing (now!) relative to my plan? • Contextualizes external data sources
What needs the most attention right now ?
Performance Management KPIs and Balanced Scorecard
Dashboards & Scorecards Operations Overview
Production Targets and Achievement
What did I do last time? Quality
What should I do (now!)?
Operations Compliance
Plant 1 Plant 2 Plant 3 What is the economic impact?
Energy Management
Monitoring Integration Visualization Reporting Decision Support
Advisory & Analytics Batch Analytics
Maintenance
Asset / Fleet Management
Sales Department Crude Supply Chemical Production Monitoring
Condition Monitoring
Inventory & Shipments
ERP data integration
Environment, Health & Safety

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Page 17 May 2018 Process Industries and Drives | Mining
 Cement Digital Architecture Concept
Deep-dive on data integration
Corporate Systems
Corporate Dashboards and Reporting ERP applications
Enterprise Resource Planning executive dashboarding
E.g. Process, Quality, Sales, Energy, Raw Materials, Maintenance, HSE, etc…

Enterprise Operations Management

Energy Production Material Inventory Quality Product Maintenance MOM/MES applications
Management Planning Tracking Management Management Shipment Management

Enterprise Data Model

Operational
Plant Analytics and Reporting Database
E.g. Plant Dashboards & reporting, Asset Management, Automation and
Performance Management, etc… Lab Data
expert systems

Dispatch Data Plant 1 Plant 2 Plant 3

Plant Data Model
(Historian Database)
Weighbridge Data

Other Temporal Other Relational

Process Data Power Data
Data Sources Data Source
Plant 4 Plant 5 … Plant n
Typical Plant Architecture

Unrestricted © Siemens AG 2018

Page 18 May 2018 Process Industries and Drives | Mining
Let’s drive the Digital Enterprise together

Dipl.-Ing. Yun Zeng

Director Digitalization Minerals
Siemens AG
Mobile: +49 (152) 2270 8329
E-mail: [email protected]

Bernardo Marinho
Sales Manager Digitalization Minerals
Siemens AG
Mobile: +49 (1520) 472 8265
E-mail: [email protected]

Unrestricted © Siemens AG 2018

Page 19 May 2018 Process Industries and Drives | Mining