Digital Transformation in the Mining Supplier Value Chain
Digital Transformation in the Mining Supplier Value Chain
Business Model Description
Business model that enables digital leadership and the use of emerging technologies to bring value to mining suppliers.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Iglesia
- San José de Jáchal
Sector Classification
Technology and Communications
Development need
The technology sector in San Juan is in full development and this favours an increase in investment opportunities. In the province, the knowledge economy is recognised as a social value, a collaborative entrepreneurial microclimate, with trained talents and a cluster of companies in the sector organised to boost their activity. (1)
Policy priority
The Government of San Juan promotes the expansion of the knowledge economy and ICTs through financial and technical assistance and training programmes. Creation of a Scientific and Technological Pole with the objective of linking all the institutions of the Provincial Science, Technology and Innovation system with the local productive sector (1).
Gender inequalities
Only 30% of ICT graduates are women and only 3 out of 10 computer science workers are women. This educational and occupational segregation causes women to lag behind men in the use of digital cognitive skills for the use of technologies and in employment in technology sectors. (2)
Investment opportunities
Emerging technologies that are already being used by mining service providers, such as the use of satellites, sensors, drones, autonomous trucks, electric vehicles, artificial intelligence, machine learning and others (3).
Key bottlenecks
Digital divide in dimensions that go beyond the lack of material access to computers and the Internet. Lack of experience caused by rejection or fear of new technologies; lack of skills due to insufficient use and inadequate education and social support; and lack of opportunities for meaningful use of ICTs. (4)
Technology
Development need
The technology sector in San Juan is in full development and this favours an increase in investment opportunities. In the province, the knowledge economy is recognised as a social value, a collaborative entrepreneurial microclimate, with trained talents and a cluster of companies in the sector organised to boost their activity. (1)
Policy priority
The Government of San Juan promotes the expansion of the knowledge economy and ICTs through financial and technical assistance and training programmes. Creation of a Scientific and Technological Pole with the objective of linking all the institutions of the Provincial Science, Technology and Innovation system with the local productive sector (1).
Gender inequalities
Only 30% of ICT graduates are women and only 3 out of 10 computer science workers are women. This educational and occupational segregation causes women to lag behind men in the use of digital cognitive skills for the use of technologies and in employment in technology sectors. (2)
Investment opportunities
Emerging technologies that are already being used by mining service providers, such as the use of satellites, sensors, drones, autonomous trucks, electric vehicles, artificial intelligence, machine learning and others (3).
Key bottlenecks
Digital divide in dimensions that go beyond the lack of material access to computers and the Internet. Lack of experience caused by rejection or fear of new technologies; lack of skills due to insufficient use and inadequate education and social support; and lack of opportunities for meaningful use of ICTs. (4)
Pipeline Opportunity
Digital Transformation in the Mining Supplier Value Chain
Business model that enables digital leadership and the use of emerging technologies to bring value to mining suppliers.
Business Case
Market Size and Environment
< USD 50 million
According to estimates by companies in the sector, the current estimated market is around USD 5 million.
Indicative Return
15% - 20%
According to the investors interviewed, an expected return profile would result in an IRR between 15% and 20% for a 5-year investment.
Investment Timeframe
Short Term (0–5 years)
According to industry estimates.
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Business - Supply Chain Constraints
Impact Case
Sustainable Development Need
Technological development is a key element in breaking the intergenerational transmission of poverty and a valuable tool for social inclusion (6).
Mining in Latin America presents major environmental challenges: intensive water and energy consumption, technological gaps and high pollutant or waste generation that currently exceeds the ecosystem's capacity for recovery (6).
Gender & Marginalisation
There is a significant gender gap in the number of women engaging in ICT-related careers and in the number of women working in ICT-related industries (2).
Expected Development Outcome
Increase the use of new technologies to reduce the technological gap while streamlining processes by digitising what was previously done manually.
Reducing the environmental impact of mining service providers.
Gender & Marginalisation
In relation to gender and marginalisation: Increase by 15% the number of quality jobs in technological areas where women's positions are taken into account in order to reduce the existing gap.
Primary SDGs addressed
9.c.1 Proportion of population covered by a mobile network, by technology
In Greater San Juan, 89.2% of the population aged 4 and older use the internet, 50.7% use computers and 6.3% use mobile phones. (7)
To ensure that the use of information and communication technologies, especially those that go beyond the use of computers, internet and mobile phones, is increased, especially in companies that can contribute to a favourable impact on the environment.
12.6.1 Number of companies publishing sustainability reports
3199 companies classified as micro, small and medium-sized are located in the Province of San Juan (8) and less than 5% produce sustainability reports.
It is expected that 25% of companies in the Province will produce sustainability reports by 2030.
Secondary SDGs addressed
Directly impacted stakeholders
Corporates
Planet
Indirectly impacted stakeholders
Gender inequality and/or marginalization
People
Outcome Risks
Difficulties in acquiring technological goods and complications in bringing them into the country would lead to an increase in technology gaps and inequalities among firms in the sector.
Impact Risks
Efficiency risk: The expected impact could have been achieved at a lower cost due to exchange rate increases in the price of technology goods and customs delays upon entry into the country.
External risk: Changes in rules and regulations could complicate the activity of mining companies and their value chain of service providers.
Impact Classification
What
Significant positive impact to be generated by achieving efficiency in the processes of companies applying emerging technologies as well as positive impacts on the environment.
Risk
The impact of outreach may be limited due to factors such as lack of information and training of human resources who will help implement the new technologies.
Enabling Environment
Policy Environment
Start-up of the San Juan TEC Technological Development Centre, which aims to develop the knowledge economy as an economic sector of the Province.
Implementation of the San Juan TEC Framework Programme, which promotes the creation of technology-based companies.
Launch of the "San Juan LAB" Incubator, which aims to combine the productive and professional capacity of the local economy with the technological/scientific/productive entrepreneurial potential.
Financial Environment
Tax incentives: The Law institutes a promotion regime with benefits of 60% income tax reduction for micro and small enterprises, 40% for medium-sized enterprises and 20% for large enterprises.
Tax incentives: Up to 70% rebate on employer contributions, 0% rate of export duties on services.
Tax incentives: Stability of benefits and those who export will be exempt from VAT withholdings and perceptions.
Financial incentives: The Ministry of Production has credit lines with preferential rates for investment projects that consider technological innovation aligned with the reduction of environmental impacts.
Regulatory Environment
Law 27506 that establishes a regime for the promotion of the Knowledge Economy for software development activities, geological services, electronics, communications, artificial intelligence, robotics, among others.
Marketplace Participants
Private Sector
Private sector companies, mining service providers as well as the mining operations themselves that can achieve greater efficiency in their processes and less environmental impact by applying advanced technology.
Government
> Secretariat of the Knowledge Economy of the Nation. > Ministry of Production of the Province of San Juan. > San Juan Investment Development Agency."
Target Locations
Iglesia
San José de Jáchal
References
- (1- www.inversionessanjuan.gov.ar / Strategic sectors. 2- Inequalities in the digital world? Gender gaps in the use of ICTs. IDB Report. 3 - Country Circular Publication "Intensive use of technologies, transparent information to communities and sustainability strategy associated with the SDGs: This is how the mining of the future is projected". 4 - Report by Marcelo Alos and Josefina Baca. Technology and regional development in San Juan Province.
- (5 - www.dams.com.ar 6 - ECLAC Report - Sustainability Indicators in Metal Mining - 2021 7 - INDEC Report - Access to and Use of Information and Communication Technologies - Fourth Quarter 2022 8 - National Economic Census 2020-2021, Provisional Results.