Contractor Companies’ Small Projects Facing Mining 4.0 in Chile: How Risky Is the Implementation of Industry 4.0 for Them?
DOI:
https://doi.org/10.4067/S0718-27242024000100079Keywords:
Small projects, SME Supplier, Risk Management Methods, Mining 4.0, Contract ManagementAbstract
Despite the relevance of Chile’s mining industry, risk models applied to contracts have not been intensively developed. This is a quantitative exploratory research, which focuses on the results of a novel risk assessment methodology applied for the analysis of potential industry 4.0 technologies to be implemented by contractor companies in Chile’s mining sector.
In this paper, an overview about mining 4.0 was done and Chile’s large mining companies were analyzed during 2021-2022, obtaining contracts information from a relevant copper producer. A case was selected to apply the model and semi-structured in-depth interviews were conducted with the stakeholders involved in this industry.
Based on our results we found small contracts concentrated the largest number of low and moderate- priority projects, but also the largest number of high-priority contracts. However, it seems to be that big projects are riskier than small projects under the future effects of Industry 4.0 technologies.
Downloads
References
Abdellah, W., Kim, J., Hassan, M., & Ali, M. (2022). The key challenges towards the effective implementation of digital transformation in the mining industry. Geosystem Engineering, 25 (1). DOI: 10.1080/12269328.2022.2120093
Alper, A. E., Alper, F. Ö., & Ozayturk, G. (2023). Dynamics of Technological Unemployment, Leadership, and Entrepreneurship during the Industry 4.0 Revolution. InAgile Leadership for Industry 4.0(pp. 21-46). Apple Academic Press.
Alves Cantini, F., Otávio Petter., C., & Rodrigues de Albuquerque, N. (2022). Monte Carlo simulation risk analysis for underground mining projects Tecnol Metal Mater Min. 2022;19
| https://doi.org/10.4322/2176-1523.20222681
Agnese, P. (2021). On Blockchains, Cryptos, and Media of Exchange. Not there (yet). Int. J. Intellectual Property Management, 11(1), 81-94.
Agnese, P., & Rios, F. (2023). Spillover Effects of Energy Transition Metals in Chile. IZA Institute of Labor Economics. Discussion Paper Series, 1-34.
Barnewold, L., & Lottermoser, B. (2020). Identification of digital technologies and digitalisation trends in the mining industry. International Journal of Mining Science and Technology, 747-757.
Bertayeva, K., Panaedova, G., Natocheeva, N., Kulagovskaya T., & Belyanchikova T. (2019). Industry 4.0 in the mining industry: global trends and innovative development. E3S Web of Conferences 135, 04026 ITESE-2019
Bhp billiton (2016). Sustainability Report BHP Chile. Minera Escondida and Pampa Norte. https://www.bhp.com/-/media/documents/media/reports-and-presentations/2017/170807_bhpsustainabiltiyreportbhpchile2016.pdf
Birkel, H. S., Veile, J. W., Müller, J. M., Hartmann, E., & Voigt, K. I. (2019). Development of a risk framework for Industry 4.0 in the context of sustainability for established manufacturers. Sustainability, 11(2), 384.
Cardozo, F. A. C., Petter, C. O., & de Albuquerque, N. R. (2022). Monte Carlo simulation risk analysis for underground mining projects. Tecnologia em Metalurgia, Materiais e Mineração, 19, 0-0.
Carrasco-Carvajal, O., Castillo-Vergara, M. & García-Pérez-de-Lema, D. (2023). Measuring open innovation inSMEs: an overview of current research. Review of Managerial Sciences (17), 397-442.https://doi.org/10.1007/s11846-022-00533-9
Castillo-Vergara, M., Álvarez-Marín, A., Villavicencio-Pinto, E., Valdez-Juárez, L.E. (2022). Technological Acceptance of Industry 4.0 by Students from Rural Areas. Electronics 2022, 11, 2109. https://doi.org/10.3390/electronics11142109
Castillo-Vergara, M. (2023). Industria 4.0 en la Pyme: Management & Technology. J. Technol. Manag. Innov. (18): 2, 3-4.
Castillo-Vergara, M., & Araneda, M. (2023). Impacto de la tecnología de la industria 4.0 en Jóvenes. Observatorio Económico, (175), 2-4. https://doi.org/10.11565/oe.vi175.493
Center for Copper and Mining Studies. (2018). Impact of new technologies on the skills required by the mining industry. Santiago: Mining Skills Council.
Centro de Estudios del Cobre y la Minería. (2020). Hacia una minería 4.0: Recomendaciones para impulsar una industria nacional inteligente. Santiago: CESCO.
Cesário, M., & Noronha, T. D. (2009). Factors affecting the adoption of new technologies by labour-intensive firms: an empirical exercise on European southern regions. Estudos III, 215-237.
Chukwuere, J. E. (2024). Conceptualizing predictive conceptual model for unemployment rates in the implementation of Industry 4.0: Exploring machine learning techniques. arXiv preprint arXiv:2403.13536.
Clausen, E., Sörensen, A., Nienhaus, K. (2022). Mining 4.0. In: Frenz, W. (eds) Handbook Industry 4.0. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-64448-5_40
Cochilco. (2017). Tendencias de Usos y Demanda de Productos de Cobre. Santiago: Cochilco.
Cochilco. (2022). Yearbook: Copper and other mineral statistics 2002-2021. Santiago: Cochilco.
Consejo Minero; Fundación Chile. (2023). El Estudio de Fuerza Laboral de la Gran Minería Chilena 2023-2032. Santiago: Consejo Minero y Fundachión Chile.
Consejo Minero. (2018). Impacto de las Nuevas Tecnologías en las Competencias Requeridas por la Industria Minera. Santiago: Consejo Minero.
Consejo Minero. (2020). El Roadmap: Digitalización para una Minería 4.0. Santiago: Consejo Minero.
Cooper, D. F., MacDonald, D. H., & Chapman, C. B. (1985). Risk analysis of a construction cost estimate. International journal of project management, 3(3), 141-149.
Cotet, G., Carutasu, N., & Chiscop, F. (2020). Industry 4.0 Diagnosis from an iMillennial. Educational Perspective. Education Sciences. 10(1):21. https://doi.org/10.3390/educsci10010021
Culver, W. W., & Reinhart, C. J. (1989). Capitalist Dreams: Chile’s Response to Nineteenth-Century World Copper Competition. . Comparative Studies in Society and History, 722-744.
Domingues, M.S., Baptista, A., Diogo, M.T. (2017). Engineering complex systems applied to risk management in the mining industry. Int. J. Min. Sci. Technol., 27, 611-616.
Ediriweera, A., & Wiewiora, A. (2021). Barriers and enablers of technology adoption in the mining industry. Resources Policy, 73, 102188.
Efimov, V.I., Efimova, N.V. (2021). Digital Transformation of Open-Pit Coal Mining in Russia. In: Zavyalova, E.B., Popkova, E.G. (eds) Industry 4.0 . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-75405-1_21
Elguindi, J., Hao, X., Lin, Y., Alwathnani, H. A., Wei, G., & Rensing, C. (2011). Advantages and challenges of increased antimicrobial copper use and copper mining. Applied Microbiology and Biotechnology, 237-249.
El Bazi, N., El Hadraoui, H., Laayati, O., El Maghraoui, A., Chebak, A., Mabrouki, M. (2023). Digital Twin in Mining Industry: A Study on Automation Commissioning Efficiency and Safety Implementation of a Stacker Machine in an Open-Pit Mine. Conference: 2023 5th Global Power, Energy and Communication Conference (GPECOM) June 2023. DOI: 10.1109/GPECOM58364.2023.10175788
Fekete, J. (2015). Big data in mining operations. Master’s Thesis Copenhagen Business School.
Feng, X., & Carvelli, V. (2022). Additive manufacturing technology in mining engineering research. Deep Underground Science and Engineering 2022;1:15-24. DOI: 10.1002/dug2.12014
Flynn, J., Dance, S., & Schaefer, D. (2017). Industry 4.0 and its potential impact on employment demographics in the UK. Advances in Transdisciplinary Engineering, 6, 239-244.
Fundación Chile. (2019). Caracterización de proveedores de la minería chilena. Santiago: Fundación Chile.
Fundación Chile. (2016). Casos de Innovación de Proveedores en la Minería Chilena. Santiago: Fundación Chile.
Fundación Chile. (2017). Casos de Innivación de Proveedores en la Minería Chilena. Santiago: Fundación Chile.
Fundación Chile. (2018). Casos de Innovación de Proveedores en la Minería Chilena . Santiago: Fundación Chile.
Fundación Chile. (2021). Casos de Innovación de Proveedores en la Minería Chilena . Santiago: Fundación Chile.
Fundación Chile. (2022). Casos de Innovación de Proveedores en la Minería Chilena . Santiago: Fundación Chile.
Gaber, T., El Jazouli, Y., Eldesouky, E., Ali, A. (2021). Autonomous Haulage Systems in the Mining Industry: Cybersecurity, Communication and Safety Issues and Challenges. Electronics 2021, 10,1357. https://doi.org/10.3390/electronics10111357
Geldes, C. (2023). Challenges of Industry 4.0 for Companies in Emerging Economies: Some Inputs for the Research. J. Technol. Manag. Innov. 18 (3), 3-4.
Geldes, C., Castillo-Vergara, M., Muñoz-Cisterna, V. (2023). Desafíos de la Industria 4.0 en las PYMES. Observatorio Económico . 184: 14-16. DOI: https://doi.org/10.11565/oe.v1i184.536
Görmüş, A. (2019, March). Future of work with the industry 4.0. In International Congress on Social Sciences (INCSOS 2019) Proceeding Book (Vol. 1, No. 32, pp. 317-323).
Heredia, J., Castillo-Vergara, M., Geldes C., Carbajal Gamarra F., Flores, A., & Heredia, W. (2022). How do digital capabilities affect firm performance? The mediating role of technological capabilities in the “new normal”. Journal of Innovation & Knowledge, 7 (2). https://doi.org/10.1016/j.jik.2022.100171.
Hirman, M., Benesova, A., Steiner, F., & Tupa, J. (2019). Project management during the Industry 4.0 implementation with risk factor analysis. Procedia Manufacturing, 38, 1181-1188.
Hodge, R.A., Ericsson, M., Löf, O., Löf, A., Semkowich, P. (2022).The global mining industry: corporate profle, complexity, and change. Mineral Economics (2022) 35:587-606
Hughes, M. (2016). Precariedad laboral en Chile. Prácticas de resistencia en los sindicatos de trabajadores tercerizados de la Gran Minería Chilena. Revista de Estudios Marítimos y Sociales. Nº 10 - Diciembre de 2016
Instituto Nacional de Normalización de Chile. (2018). NCh-ISO31000:2018. Santiago: Instituto Nacional de Normalización de Chile.
Instituto Nacional de Normalización de Chile. (2020). NCh-ISO31010:2020 Gestión de riesgos - Técnicas de evaluación del riesgo. Santiago: Instituto Nacional de Normalización de Chile.
InvestChile. (2023, January). Chilean mining industry leads digital transformation. InvestChile. https://blog.investchile.gob.cl/chilean-mining-industry-digital-transformation
Jha, A., Young, A. & Sattarvand, J. (2023). Blockchain Technology and Mining Industry: A Review. Mining, Metallurgy & Exploration 40, 2269-2280 (2023). https://doi.org/10.1007/s42461-023-00874-3
Jiskani, I., Zhou, W., Hosseini, S., & Wang, Z. (2023). Mining 4.0 and climate neutrality: A unified and reliable decision system for safe, intelligent, and green & climate-smart mining. Journal of Cleaner Production, 13.
Kagan, E., Goosen, E., Pakhomova, E., & Goosen, O. (2021). Industry 4.0. and an upgrade of the business models of large mining companies. IOP Conf. Series: Earth and Environmental Science, 1-10.
Koropets, O. A., & Tukhtarova, E. K. (2021). The impact of advanced industry 4.0 technologies on unemployment in Russian regions. Ekonomika Regiona= Economy of Regions, (1), 182.
Kunhahamed, P., & Rajak, S. (2023). Application of Blockchain in Mining 4.0. En N. Suyel, & A. Kemal, Blockchain and its Applications in Industry 4.0 (págs. 123-137). Patna, India: Springer.
Kurt, R. (2019). Industry 4.0 in terms of industrial relations and its impacts on labour life. Procedia computer science, 158, 590-601.
Kurzweil, R. (2005). The Singularity Is Near: When Humans Transcend Biology. New York: Penguin Books.
Kuzior, A. ( 2022). Technological Unemployment in the Perspective of Industry 4.0. Virtual Economics, 5(1), 7-23
Leiva, S. & Campos, A. (2013). Movimiento social de trabajadores subcontratados en la minería privada del cobre en Chile. Psicoperspectivas, 12(2), 51-61. doi:10.5027/PSICOPERSPECTIVAS-VOL12-ISSUE2-FULLTEXT-293
Lööw, J., Abrahamsson, L., & Johansson, J. (2019). Mining 4.0-the Impact of New Technology from a Work Place Perspective. Mining, Metallurgy & Exploration, 36, 701-707.
Lund, E., Pekkari, A., Johansson, J., & Joel, L. (2024). Mining 4.0 and its effects on work environment, competence, organisation and society - a scoping review. Mineral Economics , 1-15.
Minería Chilena (2021). Informe Técnico: Drones en minería: un valor agregado para realizar nuevas tareas. Julio 2021, Nº 481, 43-45
Meller, P. (2019). Cobre chileno: productividad, innovación y licencia social. Santiago: Cieplan Utalca Banco de Desarrollo de América Latina.
Muniz Jr, J., Ramalho Martins, F., Wintersberger, D., & Oliveira Santos, J. P. (2023). Trade union and Industry 4.0 implementation: two polar cases in Brazilian trucks manufacturing. Journal of Workplace Learning, 35(8), 670-692.
Natarajan, A. (2022). Reference Class Forecasting and Machine Learning for Improved Offshore Oil and Gas Megaproject Planning: Methods and Application. Project Management Journal, 456-484.
Nguyen, L.Q., Bui, L.K., Ngoc, Q. B. , & Tran, T. X. (2023). Advances in Geospatial Technology in Mining and Earth Sciences, Environmental Science and Engineering, https://doi.org/10.1007/978-3-031-20463-0_1
Noriega, R., Pourrahimian,Y. (2022).A systematic review of artificial intelligence and data-driven approaches in strategic open-pit mine planning. Resources Policy , Volume 77, 102727. DOI: 10.1016/j.resourpol.2022.102727
Okada, K. (2022). Breakthrough technologies for mineral exploration. Miner Econ 35, 429-454. https://doi.org/10.1007/s13563-022-00317-3
Oliveira Cruz, C, & da Cunha Rodovalho, E. (2019). Application of ISO 31000 standard on tailings dam safety. REM, Int. Eng. J., Ouro Preto, Special Supplement 1, 72(1), 47-54. http://dx.doi.org/10.1590/0370-44672018720123
Pałaka, D., Paczesny, B., Gurdziel, M., & Wieloch, W. (2020). Industry 4.0 in development of new technologies for underground mining. In E3S Web of Conferences (Vol. 174, p. 01002). EDP Sciences.
Peña Ramírez, C., Alegría, H., & Rios Muñoz, F. (2022). Modelo de análisis de riesgos de contratos en minería ante Industria 4.0. Journal of Management & Business Studies, 1-16.
Pérez, D. (2022). Reinterpretando el sindicalismo tercerizado minero en Chile. Una perspectiva marxista territorial de la subcontratación. DADOS, Rio de Janeiro, vol.65 (2): e20200307, 2022. https://doi.org/10.1590/dados.2022.65.2.264
Phibrand. (2021). The 3rd Ranking of Providers of the Mining Industry in Chile. Phibrand, https://www.phibrand.com/wp-content/uploads/2021/05/Third-Ranking-of-Mining-Suppliers_summary-report.pdf
Prochile. (2022). Reporte Anual Proveedores Mineros - 2022. Reporte de exportaciones de los proveedores mineros. Dirección estudios - SUBREI. https://www.subrei.gob.cl/estudios-y-documentos/documentos/detalle-otras-fichas-y-reportes/reporte-anual-proveedores-mineros---2022
Ríos Muñoz, F., Peña Ramírez, C., Meza, J., & Crouch, T. (2024). Platinum Group Metals Extraction from Asteroids vs Earth: An Overview of the Industrial Ecosystems, Technologies and Risks. Accepted inMineral Economics , 37. https://doi.org/10.1007/s13563-024-00429-y
Rupprecht, S.M. (2015). Owner versus contract miner - A South African update. J. S. Afr. Inst. Min. Metall. 115 (11) 1021-1025. http://dx.doi.org/10.17159/2411-9717/2015/v115n11a6.
Rylnikova, M.; Radchenko, D.; Klebanof, D. (2017). Intelligent Mining Engineering Systems in the Structure of Industry 4.0. Moscow: Web of Conferences.
Saldana, M., Flores, V., Toro, N., & Leiva, C. (2019). Representation for a prototype of recommendation system of operation mode in copper mining. Coimbra, Portugal: IEEE.
Sam-Aggrey, H. (2020). Assessment of the Impacts of New Mining Technologies: Recommendations on the Way Forward. WIT Trans. Ecol. Environ, 245, 177-187.
Sánchez, F., & Hartlieb, P. (2020). Innovation in the Mining Industry: Technological Trends and a Case Study of the Challenges of Disruptive Innovation. Mining, Metallurgy & Exploration , 1385-1399.
Schwab, K. (2016). La cuarta revolución industrial. Madrid: Debate.
Sicep. (2023). Reporte barometro de proveedores de la industria minera 2023. Available from https://sicep.cl/RicardoM/v/BAROMETRO.pdf. Antofagasta: Sicep.
Simensen, H. & Perry, J. (1999). Risk identification, assessment and management in the mining and metallurgical industries. Journal of the Southern African Institute of Mining and Metallurgy, 99(6), 321-329.
Sishi, M., & Telukdarie, A. (2022). Implementation of Industry 4.0 technologies in the mining industry - a case study. Int. J. Mining and Mineral Engineering, 11(1), Johannesburgo.
Skenderas, D.,& Politi, C. (2023). Industry 4.0 Roadmap for the Mining Sector. Mater. Proc. 2023, 15, 16. https://doi.org/10.3390/materproc2023015016
Smith, K., & Sepasgozar, S. (2022). Governance, Standards and Regulation: What Construction and Mining Need to Commit to Industry 4.0. Buildings, 1-23.
Stojanova, H., Lietavcova, B., & Vrdoljak Raguž, I. (2019). The Dependence of Unemployment of the Senior Workforce upon Explanatory Variables in the European Union in the Context of Industry 4.0. Social Sciences. 8(1):29. https://doi.org/10.3390/socsci8010029
Szabó-Szentgróti, G., Végvári, B., & Varga, J. (2021). Impact of Industry 4.0 and digitization on labor market for 2030-verification of Keynes’ prediction. Sustainability , 13(14), 7703.
Thomas, S., & Tang, Z. (2010). Labour-intensive construction sub-contractors: Their critical success factors. International journal of project management , 738-740.
Thomas, S., Tang, Z., & Palaneeswaran, E. (2009). Factors contributing to the success of equipment-intensive subcontractors in construction. International journal of project management , 736-744.
Tkachuk, V., Yechkalo, Y., Brovko, D., Sobczyk, W.(2023). Augmented and Virtual Reality Tools in Training Mining Engineers. Journal of the Polish Mineral Engineering Society, January 2023.
Torres, R. Á. (2015). Gestión de contratos de servicios a la minería. Santriago: Universidad de Chile.
Tubis, A., Werbi ´nska-Wojciechowska, S. & Wroblewski, A. (2020). Risk Assessment Methods in Mining Industry-A Systematic Review. Applied Sciences, 10(15), 5172.
Tupa, J., Simota, J., & Steiner, F. (2017). Aspects of risk management implementation for Industry 4.0. Procedia manufacturing, 11, 1223-1230.
Uğurlu, K., & Pajo, A. (2019). A Measure Against Unemployment Problem Expected to Occur by Industry 4.0: Cittaslow. Seyahat Ve Otel İşletmeciliği Dergisi, 16(1), 167-185. https://doi.org/10.24010/soid.538540
Ulewicz, R., Krstić, B. & Ingaldi, M. (2022).Mining Industry 4.0 - Opportunities and Barriers. Acta Montanistica Slovaca, Volume 27 (2), 291-305.
Van Hau, N., Khanh Ly, C. T., Quynh Nga, N., Hong Duyen, N. T., & Huong Hue, T. T. (2022). Digital Transformation in Mining Sector in Vietnam. Inżynieria Mineralna, (2).
Vergara, C. (2012). Competitividad mundial en el mercado del cobre. Tesis de magíster en minería, Universidad de Chile. https://repositorio.uchile.cl/bitstream/handle/2250/112543/cf-vergara_cv.pdf?sequence=1&isAllowed=y
Vidal Véjar, R. E. (2021). Variables críticas en la administración de contratos en proyectos mineros (Doctoral dissertation, Universidad del Desarrollo. Facultad de Ingeniería).
Voronov, Y., Voronov, A., & Makhambayev, D. (2020). Current State and Development Prospects of Autonomous Haulage at Surface Mines. E3S Web of Conferences 174, 01028 (2020) Vth International Innovative Mining Symposium. https://doi.org/10.1051/e3sconf/202017401028
Whyte, J. (2019). How Digital Information Transforms Project Delivery Models. Project Management Journal , 50(2), 177-194.
World Bank. (2020). Using Blockchain to Support the Energy Transition and Climate Markets : Results and Lessons from a Pilot Project in Chile. Washington: World Bank.
World Economic Forum. (2017). Digital Transformation Initiative Mining and Metals Industry. Davos Klosters: World Economic Forum.
Zhang, G.,Chen., C.,Cao, X.,Zhong, R.,Duan, X,.& Li, P.(2022). Industrial Internet of Things-enabled monitoring and maintenance mechanism for fully mechanized mining equipment. Advanced Engineering Informatics, Volume 54, October 2022, 101782
Zhironkina, O. and Zhironkin, S. (2023). Technological and Intellectual Transition to Mining 4.0: A Review. Energies, 16, 1427. https://doi.org/10.3390/en16031427
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Journal of Technology Management & Innovation
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
