Incorporate OpenAl o1 model to your financial research today 🎉🎉

Revolutionizing Underground Mining: The Role of 5G Technology

August 11, 2024

Note: We reveal investment insights through the quotes of top business leaders.

Key Takeaways

  • 5G technology enhances underground mining by enabling real-time data collection, improving productivity, and ensuring compliance with safety regulations.
  • Private 5G networks support business-critical operations and advanced applications, offering robust solutions in challenging environments.
  • Implementation challenges include spectrum availability and regulatory compliance, which can impact costs and deployment timelines.
  • Newmont's investment in all-electric autonomous mining and advanced systems highlights the economic and environmental benefits of integrating 5G technology.
  • Regulatory and compliance issues present significant challenges, necessitating efforts to reduce regulatory burdens and transition to IP-based networks.

cover_img

Current State of Technology in Underground Mining

Newmont is advancing underground mining technology by developing panel systems, implementing all-electric autonomous mining for zero emissions, enhancing pressure and conveyor systems, and appointing a new CTO to drive innovation.

"Underground, it's unlocking panel development. We're clearly opening up PC2-3, so progressing the opening up of the draw points over the next couple of years in PC2-3, ensuring that you're bringing on the development work for PC1-2, and then it's a fine balance between the mine and the processing plant." --- (NEM, earning call, 2024/Q1)

"Additionally, as part of our ESG initiatives, in November 2021, Newmont announced a strategic alliance with CAT and pledged a preliminary investment of $100 with the aim to develop and implement a comprehensive all-electric autonomous mining system to achieve zero emissions mining." --- (NEM, sec filing, 2024/Q1)

"Underground, we are progressing the pressure and conveyor systems and have just safely and successfully completed boring nearly 200 cubic meters of concrete for the underground pressure chamber." --- (NEM, earning call, 2024/Q2)

"Newmont has appointed Francois Hardy as our new #CTO. With decades of experience in #mining, Francois will play a pivotal role in exploring new ways to enhance our operations through innovation and new #tech. https://t.co/Aidp7sbden $nem https://t.co/AzQRT2VVFa" --- (NEM, twitter, 2024/04/22)

Benefits of 5G Technology in Underground Mining

LLM Error: (OpenAI) Error communicating with OpenAI

"5G technology enables higher throughput and lower latency than 4G LTE technology and allows our networks to handle more traffic as the number of internet-connected devices grows." --- (VZ, sec filing, 2024/Q1)

"Cellular connectivity on Private 5G can help improve the performance of mobile AMRs by providing consistent signal strength throughout the site." --- (Verizon, press release, 2024/05/06)

"And as we are deploying our 5G right now, with the mobile edge compute and AI, this is a great long-term opportunity for us using AI." --- (VZ, earning call, 2024/Q1)

""This is another milestone in our digital manufacturing journey that allows us to validate private cellular for additional sites in the future and to accelerate i4.0 use cases for Jamestown in the near term." "Cummins' technology- and innovation-focused approach to doing business allows them to get the most out of this dynamic Neutral Host and Private 5G combination," said Jennifer Artley, Senior Vice President of 5G Acceleration, Verizon Business." --- (VZ, press release, 2024/05/06)

Challenges and Solutions in 5G Implementation

Private 5G networks offer robust solutions for business-critical operations and connectivity in challenging environments. Verizon's reliable and flexible 5G network addresses implementation challenges by providing adaptable solutions. However, spectrum availability remains a significant challenge, often taking 3 to 5 years to deploy.

"Private 5G networks are ideal for supporting business-critical operations, advanced connected applications, edge-compute use cases, and heightened security and data sovereignty, in addition to direct cellular connectivity to connected devices and equipment." --- (VZ, press release, 2024/05/06)

"Our network is the most reliable 5G network in America2 and provides customers the ability to choose a low data rate technology like NB-IoT or a high data rate, low latency one like Verizon 5G." --- (VZ, press release, 2024/06/18)

"Combined with a private network, enterprises can manage both business-critical connected operations (via the private 5G network) and conventional but strengthened public-network connectivity to phones and tablets (via neutral host network), where signals might otherwise be weak." --- (VZ, press release, 2024/05/06)

""The learnings we've all come away with will help to transform the way hockey is both experienced and played, and I look forward to seeing all that's made possible through the power of 5G and joint collaboration." As the Official 5G Network of the National Hockey League (NHL), Verizon already successfully piloted a Verizon Private 5G Wireless Network in the Prudential Center, enabling the use of transformative business solutions such as wireless Officials' iPads for replay review, video coaching, and coach/video coach communications." --- (VZ, press release, 2024/04/09)

"So it is a challenge over time. And we know from the day that the FCC has spectrum to auction out is 3 to 5 years before it's actually out in the market." --- (VZ, conference, 2024/05/21)

Enhancing Safety and Efficiency with 5G

5G technology enhances safety and efficiency in underground mining by enabling real-time data collection, improving productivity through mobile applications, and ensuring compliance with safety regulations. It supports better communication and data management, bolstering fatality risk management and leadership capabilities in the field.

"The Go!Canvas solution helps solve for the industry challenges by empowering customers to deploy easy to add up solution in the field that meets their own specific needs, delivering productivity improvements at the worksite through simple mobile applications, keeping workers safe and enable easy compliance with safety regulations, and reducing the overhead associated with managing worker assignments." --- (NEM, event transcript, 2024/06/06)

"Inspectible cloud and mobile key worker solution, therefore, help customers to efficiently collect real time data, collaborate across worksites, through a digital checklist, make data driven business decision and replace paperwork with smart, simple workflows, which ultimately increase the efficiency and safety in the conscription industry." --- (NEM, event transcript, 2024/06/06)

"Our enhanced approach includes a heightened level of diligence across our entire fatality risk management assurance model, bolstering our leadership work in the field to ensure we have a balanced approach between both the quantity and quality of our critical control verifications, and an increased focus on leaders, coaching leaders and their teams aimed at building and strengthening capability through all levels of our organization." --- (NEM, earning call, 2024/Q2)

"With their unique breadth of user friendly solution, Go Canvas aims to digitalize traditional paper based processes, improve safety and ensure maximum compliance with industry standouts.Following its strong growth we got in recent years with an annual increase in revenue of around 20%, the company generated an annual recurring revenue of US67 $1,000,000" --- (NEM, event transcript, 2024/06/06)

Economic Impact and Cost Considerations

Newmont's capital costs for mining projects range from $950 to $1,050 million, with $434 million already spent. Future costs are influenced by market conditions, interest rates, inflation, and supply chain issues, highlighting the economic complexities and cost considerations of integrating 5G technology in underground mining.

"Total capital costs are estimated to be between $950 and $1,050 million. Development costs (excluding capitalized interest) since approval were $434 million, of which $59 million related to 2024." --- (NEM, press release, 2024/04/25)

"____________________ 1 Project estimates remain subject to change based upon uncertainties, including future market conditions, macroeconomic and geopolitical conditions, changes in interest rates, inflation, commodities and raw materials prices, supply chain disruptions, labor markets, engineering and mine plan assumptions, future funding decisions, consideration of strategic capital allocation and other factors, which may impact estimated capital expenditures, AISC and timing of projects." --- (NEM, press release, 2024/04/25)

Regulatory and Compliance Issues

Regulatory and compliance issues in the deployment of 5G technology for underground mining present significant challenges. Increased costs, litigation risks, and evolving regulations could impact service providers and technology companies. Efforts to reduce regulatory burdens and transition to IP-based networks are crucial to facilitate effective 5G deployment.

"Legislative, regulatory and litigation actions could result in increased costs of compliance, further regulation or claims against broadband internet access service providers and others, and increased uncertainty in the value and availability of data." --- (T, sec filing, 2024/Q2)

"As the regulatory landscape continues to evolve globally, failure to comply with relevant regulation may lead to significant risk to the company." --- (GOOG, event transcript, 2024/06/07)

"Industry groups have appealed this decision in court. Except as disclosed herein, there have been no material changes to regulatory trends as previously disclosed in Part I, Item 1." --- (VZ, sec filing, 2024/Q2)

"We continue to support regulatory and legislative measures and efforts, at both the state and federal levels, to reduce inappropriate regulatory burdens that inhibit our ability to compete effectively and offer needed services to our customers, including initiatives to transition services from traditional networks to all IP-based networks." --- (T, sec filing, 2024/Q1)

"to evolve globally, failure to comply with relevant regulation may lead to significant risk to the company." --- (GOOG, event transcript, 2024/06/07)

See also