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By P Bourke, S Ronkainen

Since the early days of flotation, process technicians have known that the speed at which the froth is recovered over the lip of the cell has a very direct and consistent influence on the grade and recovery of the circuit. No plant would deny that, even to this day, one of the most important aspects of a process technicianÆs job is ensuring that the froth is moving at a desired and controlled speed over the lip. Unfortunately, process technicians cannot watch the froth throughout the entire shift, as there are always other problems to attend to. A considerable amount of work has thus been done to develop a æsystemÆ that automatically measures the speed of the froth. This measurement would then be used in simple controllers to emulate the steps taken by the process technician in correcting deviations of the froth speed from its desired level. Many of the earlier attempts to measure speed were ineffective, as they were unable to cope with turbulence on the froth surface. The FrothMasterÖ instrument makes use of machine vision technologies to measure the speed of the froth over the lip of a cell at a very high sampling rate. This instrument produces an extremely reliable and accurate measurement of the froth speed (as well as other parameters such as bubble size and froth stability). As we will show, the effectiveness of the speed measurement in controlling the performance of the plant is a testimony to its reliability. Three FrothMasterÖ units have recently been installed on the Cadia Hills Gold Mine in New South Wales (Australia). The objectives of this installation were:to control the mass-recovery of two Tank Cells in series on the same level where differences in the hydrostatic head between the two cells result in the cells pulling inconsistently with respect to each other; control of the concentrate grade (per cent copper) from the first rougher; reduction in the frother consumption in the rougher circuit by monitoring the froth speed. A simple controller was designed to react to disturbances in the same way that human operators react. This was done after consultation with the metallurgists and the process technicians at Cadia. The controller had two functions: Stabilisation: The stabilising controller made use of three manipulated variables (level, frother addition rate and aeration rate) to control the froth speed to a setpoint. Optimisation: The optimising controller adjusted the froth speed setpoint based on deviations of the grade (measured in real-time by the OSA) from a setpoint. The plant metallurgist adjusted the grade setpoint based on information about the ore. The results from a 21-day trial have shown the following:The ratio of concentrate mass-recovery between two cells in series on the same level has been successfully balanced, thereby overcoming problems due to differences in hydrostatic heads. It is possible to control the speed of the froth, in mm/s, to within five per cent of its setpoint using the aforementioned manipulated variables. It has also been shown that, for reliable control, it is necessary to control more than just one variable (eg level or air). The grade of the first rougher concentrate has been controlled to within 0.3 per cent of the grade setpoint for long periods of time, which has important implications for the circuit recovery. The frother consumption has been reduced significantly. This paper will thus show that substantial progress has been made to demonstrate the value of using on-line froth speed measurements in flotation plant control to obtain real financial benefits.

Jan 1, 2000

By Steven Putt

The paper presents new results from Datacloud during recent Seismic While Drilling trials in iron ore, metallurgical coal, and hard rock mines around the world. The measurements are compared with wireline geophysical logs, core data, drill cuttings, and conventional measurement while drilling (MWD) systems to validate the technology and show how the data can be used.

Feb 1, 2020

By R. C. A. Minnitt, A. Akpabio

This study presents a rigorous comparison between ordinary kriging and commonly used machine learning algorithms, those being, linear regression, support vector regression, decision trees, random forests (RF), and k-nearest neighbours for spatial interpolation of platinum grade estimates in a complex ore body within the Bushveld Igneous Complex. Using only X and Y coordinates as predictors, both ordinary kriging and machine learning models were evaluated at point and block supports under traditional and spatial block cross validation frameworks. While naive validation results suggested superior performance for k-nearest neighbour and random forest (R² = 0.92 and 0.86, respectively), these were revealed to be overly optimistic under spatial dependence. Spatial block cross validation results demonstrated substantial declines in model performance, with R² often falling below zero, particularly for decision trees and k-nearest neighbour, indicating strong overfitting and limited generalisability. Ordinary kriging exhibited more stable, albeit modest, performance under spatial validation, reflecting its strength in geostatistical interpolation when contextual geological variables are unavailable. The study underscores the critical importance of spatially aware validation in resource estimation and highlights that machine learning models constrained to spatial coordinates behave as interpolators rather than true learners of geological variability. Recommendations are provided for future work incorporating geological information to enhance predictive robustness.

Mar 30, 2026

A novel, low-pressure adaptation of Praxair?s coherent jet technology utilizing CoJet lances was developed for application at Inco&apos;s Copper Cliff Smelter where oxygen is available in large tonnage quantities but only at relatively low supply pressures (< 193 kPa header pressure). The project objectives were to evaluate the effect of coherent jet technology on controlling oxygen lance accretion (?horn?) formation and to increase oxygen efficiency in the Inco Oxygen Top-Blowing Nitrogen Bottom Stirring (TBBS) MK Reactor used for converting nickel- contaminated chalcocite to semi-blister copper. This paper describes the development and subsequent implementation and testing of two CoJet lances in this application.

Jan 1, 2005

By Pat Turner, Abrie Schutte, Tim Olson, Roman van Ommen

The key to good cyclone circuit design and operation in primary grinding circuits will be discussed. Cyclone circuit design issues include individual cyclone design features such as cone angle or materials of construction, as well as orientation and manifold configuration. Cyclone performance issues as well as maintenance considerations will be detailed in an effort to achieve consistent cyclone operation with minimal coarse solids in the overflow. The new gMAXTM. cyclones will be introduced and evaluated using operating circuit data in closed circuit grinding applications

Jan 1, 2003

By S. G. Britton

Thin seam mining presents unique challenges when management or economic conditions require significant productivity increases. These challenges are increased depending upon the presence of various external factors such as labor unions, Federal and state regulations, and market characteristics. This paper explores the turn-around situation occurring at Tanoma Mining Company (TMC), a medium-sized underground coal mining company in central Pennsylvania, USA. Using a systematic approach of improving management controls and direction, labor relations, and communications, coupled with an intensive upgrade/rebuild/replacement program for equipment and systems used at the mine, TMC has begun reversing its&apos; cashflow position from negative to positive within two years.

Jan 1, 1991

By J. R. Patts, J. P. Rider, J. A. Organiscak, A. B. Cecala

"The U.S. National Institute for Occupational Safety and Health completed a 15-month study at an underground limestone mine crusher booth that evaluated three research parameters: (1) the effectiveness of a filtration and pressurization system for improving the air quality inside the operator booth, (2) the relative effectiveness of ? > 99 and ? > 95 experimental prototype filters in the system, and (3) the performance of three different cab pressure monitoring devices. The protection factor was quantified monthly using particle counters in the respirable dust range of 0.3 to 1 µm particle size, and gravimetric dust samples were gathered at the beginning and end of the overall study. Under static (closed-door) conditions, the filtration unit offered a gravimetric calculated protection factor between 10 and 31, depending on the filter type and loading condition. The monthly particle counting analysis shows that the ? > 95 filter offers a protection factor nearly five times that of the ? > 99 filter, where n = 15 samples. The booth pressure monitors were tested and proved to be a valid indicator of system performance over time. IntroductionDesigned and installed correctly, enclosed cabs, operator booths and control rooms offer mine workers protection from noise and physical hazards, such as flying rock and debris, as well as a more comfortable environment in regards to temperature and humidity (Organiscak et al., 2016). While it is easy to quantify the operation of a cab’s air-conditioning unit by measuring the temperature, or observe whether the cab offers protection from flying debris, it is somewhat more difficult to quantify its performance in reducing respirable dust hazards.The U.S. National Institute for Occupational Safety and Health (NIOSH) has been conducting applied research to improve the air quality inside the enclosed cabs of mobile equipment, resulting in the mathematical modeling of enclosed cab filtration systems (Organiscak and Cecala, 2008). The same principles that govern the performance of filtration systems on mobile equipment are applicable to stationary enclosures such as operator booths and control rooms (Noll, Cecala and Hummer, 2015). While stationary enclosures are similar to mobile cabs, the work area can be significantly larger. Workers in booths and control rooms also tend to stay within the enclosure for a greater percentage of the day as opposed to workers on mobile equipment who enter and exit frequently."

Jan 1, 2018

By Elliott Giles

"Measuring a blast’s performance based on the bucket fill time or “diggability” has always been achallenge due to the subjectivity generally involved. The diggability of a blast is often based onopinions and speculation without the data to properly support the claim. This paper focuses howthe blast design can impact diggability and how it can be properly measured."

Jan 1, 2016

By T. R. Ley

"RELIABILITY & SAFETY – TOGETHER. REALLY? I was starkly reminded of the challenges facing by the coal industry while talking with a number of senior mining executives. One said to me: “Safety is the #1 priority in our organization but of course, dollars are very, very important!!!” A coal mine worker at the Bluefield Coal Show claimed: “We know our equipment is bleeding hydraulic fluid all over the place but all that matters is getting the coal out”. We all understand. We want our people to go home safely at the end of the day but the coal industry is bleeding – fluids, dollars and real blood. An issue getting plenty of buzz these days is equipment reliability – in mining too! Achieving an optimal return from the massive investments in equipment is a critical requirement for success within a capital intensive industry like coal mining. You can cut costs by scrimping on maintenance, scavenging used parts and downsizing. Or, you can save money by being smarter with your asset management processes. Can we afford to spend money on both safety and reliability? Is one more important than the other? Many leading edge companies from a variety of industries will tell you that you can’t just cost-cut your way to profitability - or even survival. You need to systematically improve the effectiveness of your business. Do reliability and safety both have a place in improving the performance of the coal industry? According to Ron Moore, of The RM Group, the answer is emphatically YES! Ron says: “If you believe in safety, then you MUST believe in reliability and, more importantly, have the appropriate policies, systems, practices and measures in place. If you want lower costs, you must get your processes right. Simple cost cutting will remove resources from your system without changing the underlying system design, and performance will likely deteriorate.” Figure 1 shows the 5+ year results of a large manufacturing company. When plants are running well (high Asset Utilization), then injuries are less likely. Figure 2 plots data from a number of manufacturing plants. If you want sustainably lower costs get your reliability processes right. But these are manufacturing companies, not coal mining operations! It doesn’t matter. The fundamentals still apply. Mining industry thought leaders tell us that manufacturing is 20-30 years ahead of us and we need to learn from them – and do so quickly. Leading companies, no matter the industry, think in terms of operational excellence. They see this as the meshing of people, process and technology to achieve optimal results. Safety and reliability go hand-in-hand. People and equipment are different – but only to the extent that each requires its own relevant, but related, policies, practices, systems and metrics to achieve effective performance."

Jan 1, 2016

By Doandy Yonathan Wibisono

Shotcrete is a versatile and widely utilized rock support material in mining and civil engineering projects due to its adaptability, strength, and efficient application. It immediately stabilizes rock surfaces, effectively controlling loose materials and preventing rockfalls in underground excavations. This paper focuses on assessing and analyzing data from observations of nozzlemen (shotcrete sprayers) during primary ground support activities in an underground mine. The study highlights the importance of nozzlemen’s skills in ensuring the quality of shotcrete application, which is critical for underground mining operations’ structural integrity and safety. A comprehensive training program and field support were implemented to enhance the nozzlemen’s proficiency. The training set covered theoretical knowledge and practical techniques to improve shotcrete application daily. Proficiency improvement was assessed using quantitative metrics, with rebound percentages decreasing by 5–14% as nozzleman competency increased. The results of this initiative showed significant improvements in shotcrete quality, including increased efficiency, reduced waste, and fewer reworks or rehabilitations. The findings aim to contribute to a broader understanding of best practices in shotcrete application and nozzlemen training, ultimately enhancing ground support application measures in the mining industry.

Feb 1, 2025

By F. J. Sotillo

The reduction in energy consumption has been always important for beneficiation plants. Also gravity separation processes have gained lately great importance due to environmental concerns, especially in the gold and silver Industries. In this sense, the paper point out how to reduce the energy consumption in grinding, and increase efficiency in both grinding and gravity separation are of utmost importance to optimize the use of the country’s resources. For these purposes, chemical additives, such as rheology modifiers have shown great potential, and deserved careful consideration.

Sep 9, 2007

By G Richmond, J R. Glen

Western Metals Mt Gordon Operation is a copper mine and processing plant situated 120 kilometres north of Mt Isa. The unique Mt Gordon copper process utilises a whole of ore acid/ferric pressure leach to produce copper cathode from the Esperanza massive sulfide copper orebody. Esperanza ore contains chalcocite, covellite and minor chalcopyrite hosted in a massive pyrite matrix. These ore stocks will be depleted in late 2003. Recently the process circuit has been upgraded to allow the treatment of lower grade Mammoth ores. These include the installation of a ball mill to complement the existing SAG mill, a single stage rougher flotation circuit and a tailings thickener. The leach bleed neutralisation plant was also upgraded at this time. Commissioning of these new circuits occurred in March 2003 and involved all the challenges of ensuring current production levels were successfully maintained while new process steps were incorporated into the whole circuit. This paper explains the background flow sheet of the patented Mt Gordon process and the reasoning behind the enhancements required for an already successful copper leaching circuit. Included are discussion of the influences of the new ores on individual process components such as comminution, leach chemistry and solid/liquid separation. Longer term ore processing options are also discussed.

Jan 1, 2003

By J. Pancher

"Stainless steel castings are used in abundance in the mineral processing industry. In rotary kiln-based processes, these castings are typically exposed to high loads, corrosive elements, mechanical abrasion and cyclical temperature exposure. In the processing of iron ore pellets, it is typical to use a traveling grate preheater or a straight grate furnace to heat the pellets. Both machines have a conveyor that is mainly comprised of high temperature stainless steel castings. It is these castings which are the focus of this study. The expected life of these castings can be quite short, their cost quite high and the effort to replace them very labor intensive. The goal of this study was to gain a better understanding of the failure modes of these castings. With that basic understanding, modifications to the alloy content could be made to achieve a new operational paradigm. That paradigm could be a cheaper casting, a longer lasting casting or a casting tailored to special operating conditions (for example, highly corrosive gases or sudden temperature shocks). Over the past 4 years, Metso Minerals has sought to achieve a better understanding of the failure modes through modeling, laboratory testing and sampling of used castings from various end-users. In addition, we have tested new alloys in a laboratory setting and also in the field to see how they would perform compared to the existing ""standard casting"". Our testing has revealed interesting data concerning the impact toughness, sigma phase content and formation, chloride attack and other performance attributes of various grades of stainless steel when exposed to cyclical temperatures. Interesting results were also obtained concerning the addition of rare earth elements (Niobium, Boron, etc), nitrogen and manganese to a typical ASTM A297 grade of stainless steel. To date, a few hundred test castings have been installed in iron ore pellet plants worldwide. Many of these test castings have already experienced a year or more of operation with good results.INTRODUCTION Cast stainless steels (ASTM A297 and similar) are a main constituent used in the construction of iron ore pelletizing equipment. A typical straight grate pelletizing machine would contain upwards of 160,000lbs of ASTM A297 Grade HH castings. With a typical casting lasting only two to four years, and a casting costing around $35USD, it is easy to see that the castings are a main contributor to the overall cost of producing the pellets. Grade HH and HI (see chemical composition listed below) became the “go to” materials in the 1960’s and very few changes have been made to this day (the exception being plants that switched to flux pellet production in the 1980’s)."

Jan 1, 2015

By Michael Loken, April Montera

"The process of blending consistent and predictable feed for the roasters is critical to optimizing product quality and controlling production costs. To assist in this process, Online PGNAA Slurry Analyzers have been installed and evaluated at a Sudbury Ontario smelter. They are used to measure 100% of the full process stream to obtain elemental composition data in real time. This paper explains the application details at Sudbury and the benefits achieved from their Full Stream, Elemental Slurry Analyzers.INTRODUCTIONSudbury Integrated Nickel Operations (Sudbury INO), a Glencore Company consists of two underground nickel/copper mines in Sudbury, Nickel Rim South and, Fraser, along with the Strathcona mill and the Sudbury smelter. The facilities are spread throughout the 60 kilometer-long, oval-shaped geological formation known as the Sudbury Basin (Figure 1). The company has been mining nickel-copper ores in the Sudbury area since 1929. Nickel and copper are the primary focus of operations at Nickel Rim South and Fraser. Other base metals such as cobalt and precious metals are also produced."

Jan 1, 2016

By A. Montera, M. Loken

"The process of blending consistent and predictable feed for the roasters is critical for optimizing product quality and controlling production costs. To assist in this process, online PGNAA slurry analyzers have been installed and evaluated at a Sudbury Ontario smelter. They are used to measure 100 % of the full process stream to obtain elemental composition data in real time. This paper explains the application details at Sudbury and the benefits achieved from their full stream, elemental slurry analyzers.INTRODUCTIONSudbury Integrated Nickel Operations (Sudbury INO), a Glencore Company, consists of two underground nickel/copper mines in Sudbury, Nickel Rim South and, Fraser, along with the Strathcona mill and the Sudbury smelter. The facilities are spread throughout the 60 kilometer-long, oval-shaped geological formation known as the Sudbury Basin (Figure 1). The company has been mining nickel-copper ores in the Sudbury area since 1929. Nickel and copper are the primary focus of operations at Nickel Rim South and Fraser. Other base metals such as cobalt and precious metals are also produced.The Strathcona Mill receives ore from Nickel Rim South, Fraser, and third-party miners to produce two concentrate streams. One is a nickel-copper concentrate for use by the Sudbury Smelter; the other is a copper concentrate which goes to other Glencore operations for smelting and refining. The Sudbury Smelter converts the mineral concentrate into a high grade matte containing nickel, copper, cobalt and platinum group metals. This matte product is shipped to Glencore's Nikkelverk refinery in Norway for further processing. In 2015, the Sudbury INO Smelter completed the first phase of the Process Gas Project (PGP); a series of process changes and capital investments designed to reduce sulphur dioxide (SO2) emissions in accordance with Ontario Regulation 194. A critical element of the planned emissions reduction was the elimination of a higher percentage of sulphur contained in input concentrate streams, which can then be captured and converted to sulphuric acid."

Jan 1, 2017

By I. M. S. Moraes

Caraiba Metais has a plant for the purification and the cristallization of the crude nickel sulfate removed from its copper electrolyte purification system. In November 1994, an interdepartmental group was formed to study the Q.F.D. method, through its application on the improvement of the quality of the nickel sulphate hexahydrate. The team, formed with representatives of the following areas : production, technology, marketing, sales, maintenance, laboratory and TQC office, had also the task of checking the applicability of the method to other products of the comp any. This paper describes the main steps such as the survey of customer&apos;s demands, the preparation o1 the quality matrix, stablishing the planned quality matrix, the planned and the designed quality, and the consequent identification of the engineering bottlenecks. It is also shown how these bottllenecks were studied and solved. The application of the method allowed the team to identify means of increasing the production capacity by 40%, to improve the intrinsic quality of the product (including packaging), and to increase the reliability of the process.

Jan 1, 1997

By E. Govender-Opitz, L. Lelia

The South African mining industry plays a significant role in the economy of the country. Nonetheless, the negative impacts on the environment continue to prevail. In regions where mining exists in proximity to communities, mining activities have led to the disruption of modality. Rural communities are mostly affected as they depend on land use for agriculture to sustain their livelihoods. The conversion of land for mining activities often leaves the communities vulnerable when mines close because of the limited life span of mines. An ongoing discourse focuses on how the mining industry can contribute to sustainable development of the communities in which they operate. Post-mining transformation offers an approach for the mining companies to contribute to sustainable livelihoods post-mine closure by strengthening rural-urban linkages, which ensures inclusive development of both rural and urban areas. The paper employs a case study approach to Richards Bay Minerals and the adjacent rural communities of Sokhulu and Mbonambi. It sets out to understand the post-mining transformation employed by RBM and explore the rural-urban linkages that manifest as a result. Findings show that sand dune rehabilitation employed by RBM is successful in restoring soil fertility and establishing the natural ecosystem. The casuarina planted to rehabilitate the dunes is used to spur an alternative charcoal industry post-closure. The main rural-urban linkages that manifest are flows of people due to job opportunities and flows of goods from the sale of charcoal produced. However, there is a lack of communication and lack of authority to ensure responsible management of the casuarina plantation and equitable sharing of benefits. The paper recommends that other post-mining transformation strategies such as eco-tourism should be explored and that the government, at both national and local level, the community and the mine should be involved to ensure overall success and sustainability of the strategy. Keywords Post-mining transformation, rural-urban linkages, alternative land use

Jan 1, 2020

By Georges Croisé, Les-Lee Thompson, Adrien Debergé

Membrane filtration systems have regained focus in recent years as an effective means of liquid-liquid separation to increase the concentration of valuable elements, recover reagents or remove impurities. ORANO Mining (formerly AREVA) investigated this cost optimization process opportunity as early as 2011 for implementation at the Trekkopje project (Namibia). The key focus was to separate and recycle bicarbonate from the uranium bearing eluate solution. The performance targets were successfully achieved at lab- and pilot scale with an ultrafiltration and nano-filtration configuration system. Early 2015, ORANO Mining further launched an investigation into the use of membranes for acid recycling at the KATCO In Situ recovery mine in Kazakhstan based on the favorable results from the original bicarbonate application. KATCO is the world leader in ISR uranium mining with an eluate processing capacity of 80 000 m3/yr. This site consists of two processing plants namely, Muyumkum and Tortkuduk, located 40 kilometers apart, both operating under acidic conditions whereas precipitation and packaging are based in Tortkuduk only. This paper serves to present the results from the integration of a nano-filtration system at the Muyumkum satellite processing plant. The project consisted of screening laboratory bench studies conducted at ORANO-CIME followed by process validation at KATCO through further bench and pilot test work. The feasibility study assessments were successfully concluded which led to the implementation at an industrial scale in Muyumkum of a nano-filtration process to reduce eluate volumes being sent to the uranium precipitation section whilst achieving effective separation of uranium from sulfuric acid. Nano-filtration technology has drawn significant attention due to the efficiency and reproducibility of the process and its moderate capital cost relative to operational savings. The reliability of the previous results is a great opportunity to reduce operative expenditures within ORANO’s next ISR mining project in Mongolia.

Jan 1, 2020

Zircon producers are often required to lower impurity levels to meet customer specifications as most of these impurities adversely effect the end use. For example, zircon sand in foundry applications needs to be free of any surface impurities (eg clay, gibbsite and goethite) which otherwise could cause sintering or fusion between cast metal and the zircon mould. Light coloured ceramic grade zircon, typically low in iron oxides and titania, is preferred in ceramics applications. The presence of impurities in zircon sands is a problem in the magnetic and electrostatic separation stages of their concentration. Previous work (Aral et al, 1997) showed that impurities in zircon sand concentrates occurred in the form of stains on grain surfaces, discrete gangue minerals and in the mineral grains. The gangue minerals such as rutile, garnet, xenotime, monazite, spinels, ilmenite, and aluminium silicates in the concentrate in some cases (Aral et al, 1997) contribute significantly to the impurity content of the concentrate. A careful hand picking of the impurity grains from a Western Australian zircon sand showed that the impurity content of the concentrate could be lowered significantly as a result of the removal of the surface stained grains and gangue minerals. The hand-picked ædirtyÆ fraction, comprised about eight per cent by weight of the concentrate, and consisted mostly of iron-oxide/hydroxide-stained zircon, silica grains and rutile, and occasionally ilmenite, monazite, gahnite and other (unidentified) coloured grains. The chemical analysis of the remaining æcleanÆ fraction showed that the major impurities (Fe and Ti) were reduced significantly (Table 1). The reduction in the uranium content was about 30 per cent. The other measured impurities, P, Mg, Al, Th, and Ca remained mostly unchanged as shown in Table 1. The contribution of ilmenite to the overall iron content of æcleanÆ zircon was insignificant as it comprised about 0.1 per cent weight of the æcleanÆ zircon. Rutile was the major source of titanium contamination (about one per cent by weight). Recent work (Aral and Calle, 1999) on zircon sand concentrates from the Murray Basin showed that, under the electron microprobe, the bulk of the impurities occurred in the dark back scattered electron (BSE) regions of the zoned zircon grains. The impurity contents of the light BSE regions and unblemished (unzoned) grains were low. The impurity content in zoned zircons has been investigated on single, relatively large, crystals (McLaren, Gerald and Williams, 1994; Smith et al, 1991; Romans, Brown and White, 1975). These studies generally aimed to investigate the incorporation of U in zircon as zircon is used extensively for U-Pb geochronology owing to its relatively high content of uranium. Smith et al (1991) identified a striking difference in composition between the areas of lower (dark BSE) and higher (light BSE) average atomic number in the zoned zircon. Their work showed in particular that the zones of lower atomic numbers contained very significant amounts of trace metals such as Y, REE, Nb, U, Al, Fe, Ca, Ba and, by difference H2O. In this paper the impurity distribution in zoned zircon grains was investigated on statistically significant number of grains before and after a leach treatment. The distribution of impurities was also measured in unblemished areas to compare the results.

Jan 1, 2000

By Chee Theng

"What would you do if you are an industry leader and disruptive technology threatens to overturn your business model? Although bearings and seals are in little danger of being displaced in the near future, one company is taking no chances in an age of digital disruption.“For SKF, digital transformation and the Industrial Internet of Things (IIoT) make this time right now arguably the most exciting time in our 100-plus years of history,” John Schmidt, president of SKF USA Inc., said during the SKF Technical Press Day in Philadelphia, PA.The company is not merely integrating digital technologies into its products and services but is taking a forward-looking, strategic approach. “To be successful, legacy companies have to undertake a process called digital transformation. It’s not just an IT initiative but is really about upgrading the strategic thinking,” explained Michael D’Argenio, vice president of digital transformation and customer experience at SKF Americas.Learning from those who went beforeD’Argenio cited the examples of two companies that saw entirely different outcomes in the face of digital disruption. The well-known case is that of Kodak, one of the storied brands in history, whose business was disrupted by the advent of digital photography. Although it invented digital photography, Kodak decided to box it up and put it on the shelf because it was scared of disrupting its business in photographic fim. Instead, it was disastrously disrupted from the outside.Less well known is the case of Encyclopedia Brittanica Inc., publisher of the longest-running English-language, general-knowledge encyclopedia in the world. Sales peaked at 120,000 sets in 1990, plunging to 8,000 sets in 2012. In 20 short years, it saw not one but two massive digital disruptions. The first was in 1993, when Microsoft published the first digital interactive encyclopedia on a CD-ROM, called Encarta, priced at just $99. The second was in 2001, when a communitycurated, free website called Wikipedia launched. Taking the opposite approach from Kodak, Encyclopedia Brittanica looked at its industry, its company and its customers through the lens of the new technologies, made a prediction about the future and, based on that prediction, took a bold move. Having identified its core value proposition as the delivery of reliable, high-value, verifiable knowledge, Encyclopedia Brittanica replanned, restructured and rebuilt its company from the ground up to deliver that same value proposition, only in a different way. It stopped producing the only product that it had known for 244 years and began producing digital products that it sold to educational institutions.“There is a lot to learn from the Encyclopedia Brittanica case,” said D’Argenio. “The company embraced its market change, it embraced its customer change, and it rethought what it needed to do to be successful. Because it owned that disruption internally, it was never disrupted from the outside. It continues to operate today and is as profitable as it has ever been.”"

Aug 1, 2019