Source Engineering and Mining Journal issue dt Jul/Aug 09

Mine Your Data

Why mining companies must improve efficiency through better management of the data they gather

Driven by a need to maximize return on investment, many mining companies use the latest technologies to squeeze out the maximum recoveries in the ore they process.

Yet most of them do not fully leverage their return on another type of investment-in the data that they have gathered about the mine site. Those that do, can gain a significant advantage in shorter timelines, lower costs and more certain regulatory approvals through all stages of the mine's life.

In some cases, companies have survey and other data that is lost somewhere on microfiche, on paper or other unsearchable Forms. That data could, if accessible, give the company a head start on its next venture-giving the term "data mining" a whole new meaning.

              Data is likely the single most important owned asset that a mining company has, so it is important to treat it as the vital component it is. Data management is an important skill for companies to master.

Consider the following scenarios:              

Exploration geologists have compiled data on the ore body to build a computerized model-not realizing that their data and model could be easily adapted by the team that is doing the groundwater modeling. As a result, the hydro geologists use time and money to gather their own data and develop their own model.

• High-resolution, custom satellite imagery purchased by the environmental scientists to develop a baseline study of the site could be used by the team developing the site plan and access roads-if only they knew it was available. However, the mining company's "stovepipe" culture does not encourage different groups to interact.
• A mining company needs to demonstrate to financial regulators that its closure plans are effective-but the company lacks the data to do so because the site data and report were lost when an independent consultant's laptop was stolen out of his vehicle.

Good data management involves storing information in a secure central repository, following prescribed standards regarding its quality (such as image date), with consistent meta data that describes, among other important aspects, how the information was generated and by whom.

One main benefit of the effective management of data is leverage-the ability to use data for multiple purposes, saving the need to gather it more than once and shortening timelines, thus increasing the return on investment. For example, if some of the boreholes used for reserve delineation can be used to monitor groundwater, the groundwater-monitoring program can be \ completed more quickly and at lower cost These are important considerations given current commodity prices and the need to get a mine into production quickly to start producing revenue.

There are also efficiency benefits: Employees and external advisors can                access the data they need quickly and easily, possibly through a search function displayed on a secure Web browser. Employees in the office, on site, in a hotel room or other location can all use it.

With data centrally stored, management and board members can more easily keep track of the current status of projects in real-time, for better decisions. If one study is completed ahead of schedule, for example, it may be possible to divert staff to projects that are behind.

Another advantage is greater confidence in the data. If it is gathered to meet consistent standards, with consistent meta data to describe it, the mining company as well as other stakeholders such as investors, government regulators and financial-markets regulators will be more inclined to accept reports and plans based on it. Moreover, financial market standards such as the N 1-4310 1 standard of the Canadian Securities Commission require sophisticated, consistent data storage so that investors can be more certain about what they are buying.

There is greater data security if no critical information is permitted to be stored on laptops; for example, there is no breach of security or loss of data if a laptop vanishes from an employee's car or the hard drive crashes. Information can be backed up and stored off-site so that an event such as a fire in the company offices is less of a disaster than if data were only stored in one place. It also protects the company from staff turnover, if key employees leave and knowledge is lost as a result.

Servers to store the data, the ready availability of high-speed data networks to transport it and high-speed, affordable desktop computers that are able to handle large, high-resolution datasets easily and quickly. Add the ability of these networks to accept data from a variety of sources (including external consultants) and the relative ease of secure Web-based access platforms, and the data becomes available to all those who need it. Robust tools for managing data and meta-data help as well.

Increasingly, companies are migrating to standardized data management methods, so that all employees are required to follow standard procedures in keeping data stored centrally rather than hoarding it on their hard drives.

So, what's standing in the way?

Stovepipe mentality-Even within small companies, there is often a ,"stovepipe mentality" in which groups of employees work almost solely among people within that group, often made up of people with similar training and qualifications. They may not be encouraged to I think of the entire enterprise's good, but \ rather to make sure that their own function is handled well even if it increases.  Costs and causes delays elsewhere. I Employees may not be motivated to share their data with other departments-and I those other departments may take a "not invented here" attitude in which they would rather spend time and money developing their own data, rather than work with what is already available.

Management needs to develop an information management culture in which employees see themselves as part of an enterprise as a whole, so that their loyalties lie there rather than with just their own group or members of their own profession or occupation.

Data hoarding-Some employees may like to hoard information in order to increase their power and indispensability, so the company may need to demonstrate that sharing information strengthens everyone’s position by building a stronger organization.

Management needs to set the example and the tone for the company, obligating employees to store data centrally and               making sure that other parts of the company know what is available. In some companies, failing to store data centrally              in accordance with established protocol and with appropriate meta data, is cause for disciplinary action.

Uncoordinated third parties-With much of the environmental, social, archaeological and other specialized work sub-contracted to third parties, there is a tendency for the raw data to stay with those third parties. These consultants may provide their mining-company clients with paper printouts, or possibly the text and diagrams in electronic form so they can be incorporated into other parts of a report. However, since the client company has paid for the work, it is entitled to the raw data as well, and should be able to press the consultant to provide the data in a consistent form, with meta data attached.

The reasons why this does not always happen may have to do with inertia- "we've always done it this way"--or as with some company members, the consultant's desire to hold onto information as a source of power. Given today's market realities, it should be no problem for the mining company client to press for the consultant to provide full data in a consistent format, and this procedure can continue when the market rebounds.

Data and information are powerful               sources of competitive advantage, provided the company takes full advantage of what they offer, through wise use of the tools now available. To do otherwise is like               leaving a promising ore body in the ground rather than extracting it.