Nornickel expects USD 400 mln in economic gain from digital transformation by 2030

By 2030, Nornickel’s digital transformation programme is expected to generate an economic effect of USD 400 mln, said Vladimir Trapezin, Nornickel’s Director for Automation and Production Information Transformation, speaking at MINEX Russia 2020 forum.

n 2015, the company launched the Technology Breakthrough programme, which consists of 40+ projects. It seeks to build multiple scenario planning and automated operational control system with synchronised indicators.

“We have completed basic production automation and are currently building an integrated management system by introducing mining and geological information solutions, supporting main production processes from operational control centres, working on the metal balance, and much more,” said Mr Trapezin at the forum, which was held in Moscow on 7-8 October 2020.

“These projects have already boosted the Company’s output by 7%, and, by 2030, we expect an economic effect of up to USD 400 mln that will help us recoup our investment and provide a net positive cash flow. The digital transformation will result in highly efficient and adaptive digital production technologies and improved business processes,” commented Mr Trapezin.

In 2019, Nornickel’s investment in digital and automation projects amounted to RUB 6.73 bn, up 1.55 times y-o-y.

This year, due to restrictive safety measures for large-scale events, MINEX Russia was a hybrid event, which combined in-person and online participation. At the end of the first day, organisers recognised the winners of the mineMovie short film festival. The Best Film about Innovations award went to Technology Breakthrough, a movie about Nornickel’s programme on operating efficiency improvement, which included the implementation of 44 new systems. The Forum also hosted the Russian Mining Excellence Awards 2020, also known as the Mining Oscars. Nornickel won in the Innovative Solution of the Year category for its Underground Mining Infrastructure and Control Programme, which is being implemented at seven mines.

Darya Kryachkova, Nornickel’s Vice President, HR, spoke at the Forum about the Company’s adaptation to COVID-19 realities. “We were quick to redirect our teams’ focus from regular performance indicators to clear goals and objectives: to enable remote work and ensure the maximum safety of those who have to be present in the office or on site,” said Kryachkova. “It’s important to trust each other and feel like we’re part of a team. Interpersonal relations within the company make a great deal of difference in such situations,” she added.