Published at : 17 May 2024
Volume : IJtech
Vol 15, No 3 (2024)
DOI : https://doi.org/10.14716/ijtech.v15i3.5661
Natalya Petrovna Ezdina | Department of Political Economy and History, Plekhanov Russian University of Economics, Stremyanny lane, 36 Moscow, 415054, Russian Federation |
Elena Yurievna Dotsenko | Department of Political Economy and History, Plekhanov Russian University of Economics, Stremyanny lane, 36 Moscow, 415054, Russian Federation |
Evgenia Viktorovna Shavina | Department of Political Economy and History, Plekhanov Russian University of Economics, Stremyanny lane, 36 Moscow, 415054, Russian Federation |
Ylia Sergeevna Valeeva | Department of Economics and Management, Russian University of Cooperation, Ershova st., 58, Kazan, 420058, Russian Federation |
The
advancement of the extractive sector is affected by a combination of external
and internal factors, such as the volatility of world prices with demand for
raw materials and the peak of productivity due to technological limitations. In
this context, the global demand for raw materials may lead to different issues
and an increase in productivity is dependent on the widespread adoption of
technologies, which form the essence of Industry 4.0. Therefore, this research
aimed to identify the influence of convergent technologies on productivity in
the extractive sector of the economy and determine the role of national
technological platforms in facilitating the process. The research methodology
was formed by the works of Russian and foreign economists in the field of raw
materials markets analysis, mineral sector productivity, perspectives and
conditions of Industry 4.0 development, technological convergence, as well as
regulation of innovation interaction between science and production. The
results showed that a recurring cycle of long-term developmental challenges,
"productivity stagnation - slowdown of investments inflow - further
productivity stagnation" was identified by analyzing prices in the global
raw materials market, investment patterns, incomes, and productivity trends
within the Russian extractive sector. In addition, this cycle was supported by
reliance on equipment imports and the replication of outdated technologies. Due
to the advancements of Industry 4.0, a convergent technological approach to modernization
was proposed to increase productivity. In this context, a platform was
developed for the diffusion of convergent technologies based on the analysis of
international practices of using NBIC-convergence in the activities of mineral
complex enterprises. Hyperconvergent technologies were particularly considered
to mediate the transition from the "Internet of Things" to the
"Internet of Everything", facilitating the evolution of automated to
fully unmanned production processes. The results could be used in the formation
of strategic programs for the modernization of the extractive sector.
Extractive sector; Labor productivity; Technological convergence; Technological platform
Currently,
the extractive sector of both global and national economies is facing a
significant obstacle to development, which may have a negative impact on mining
in the context
of growing global demand for minerals. This obstacle consists of the
intersection and further divergence of the trends of demand for raw materials
and productivity in the industries of the mining sector. At the current stage
of development, investment in raw materials extraction is losing its appeal
worldwide for different objective reasons. Apart from market factors, there are
fundamental prerequisites associated with the specifics of the economies. The
World Bank experts reported significant technological risks that lack a strong
correlation with investments, extractive companies facing restricted
opportunities to enhance the level of raw material processing and probabilistic
assessment of indicators with high reliance on supply and tariffs set by natural
monopolies for profitability (The World Bank, 2021).
This specificity of production in the extractive sector directly
restrains productivity growth since a vicious circle of "lower investments
- lower productivity - lower investments" is formed in the conditions of
growing volatility of prices for raw materials. Therefore, productivity in the
sector is the "key" to increased reproduction as a new modernization
which is a radical technological renewal under the achievements of the Fourth Technological
Revolution (Industry 4.0).
Increased global demand for raw materials in 2022-2040 is associated with
the growth of world population at the expense of countries, such as India,
China, and Brazil subjected to "new industrialization" (UN, 2021).
According to the experts of the European Commission, total digitalization of
production and consumption, as well as the development of electric transport
increase demand for natural gas and rare-earth metals (European Commission, 2022). In
contrast, K. Trenberth argues that exogenous factors, such as climate change
increase the demand for raw materials - energy, building materials, and metals (Trenberth, Fasullo, and Kiehl, 2009). This
is specifically important for the Russian economy, where mineral resources and
processed products account for 70% of exports (ROSSTAT, 2021).
Over the past decade, there has been a decline in productivity in the
extractive sector of the main producers and exporters of raw materials. The
reasons include short- and medium-term fluctuations in world raw material
prices, multidirectional forecasts of alternative energy development, reaching
the limits of mining technologies and equipment capacity, closing of raw
material use chains within existing production capabilities, and increased
competition in the global raw material market. The use of more powerful
equipment by mining companies results in the growth of capital and operational
costs to reduce the investors' interest in the mass replacement of production
facilities of the same technological level. Therefore, the reproduction
processes in the extractive sector of the producing countries are slowing down,
which leads to a decrease in productivity.
The background of this research is related to the analysis of problems
related to increasing productivity in the context of the widespread expansion
of Industry 4.0. The slower spread of modern convergent technologies in the
extraction of mineral resources, in comparison with the production of final
goods and services, considers the experience of earlier research. As a result,
the knowledge about the diffusion of convergent technologies should be
supplemented in the industry with provisions for the creation of specific
technological platforms in the mining sector.
Research on factors and sources of productivity growth in the extractive
sector are based on the reconstruction models of mining enterprises (Prokopenko et al.,
2020; Tyurin and Stoianov, 2019; Bak, 2018), the efficiency of
inter-sectoral and inter-sectoral interrelationships in the economy (Hyranek et al.,
2021; Tsounis and Steedman, 2021; Jonek-Kowalska and Turek, 2017),
determination of investment efficiency (Kim, Kim, and Yoo, 2020; Wellmer and Scholz, 2018),
optimization of individual production processes (Gackowiec et al., 2019),
effects of innovation on productivity (Woodhead and Berawi, 2020; Varlamova and Larionova,
2020; Wiratmadja, Govindaraju, and Handayani, 2016).
The impact of Industry 4. 0 and more recent breakthrough innovations on
industrial production are analyzed from the perspective of individual
technological processes (Akundi et al., 2022; Zhang et al., 2022; Maresova et
al., 2018) to
improve labor safety (Malomane, Musonda, and Okoro, 2022; Osunsanmi, Oke, and Aigbavboa,
2019). Similarly, there are theoretical gaps in the analysis of Industry 4.0
technologies on productivity due to the lack of research on convergent
technologies in the modernization of individual processes and the entire
sector.
Several research devoted to the analysis of Industry 4.0 technologies in
the mining sector can be considered. However, the entire range of convergent
technologies is not adequately addressed (Zhironkin and Dotsenko,
2023; Zhironkin and Ezdina, 2023; Zhironkina and Zhironkin, 2023).
The mining industry has the
greatest use of big data collection, processing, and analysis technologies at
21.8%. Approximately 19% of every fifth organization also uses cloud services
and 18.8% of geographic information systems (GIS). Considering the high level
of GIS utilization, the spatial data produced are necessary for the design,
development, and management of industrial facilities. A relatively modest
penetration of IoT (14.6%) is associated with the complexity of
interoperability of physical assets and software solutions. (Gowida, Gamal, and
Elkatatny, 2023).
The next step is the transition to Industry 5.0 to introduce advanced
technologies into production processes while focusing on sustainable
development and human-centric technologies. After Japan announced the
transition to the 5.0 Society in 2016, this model was considered (Qi-Zhang et al.,
2023).
In all branches of industry, there are great prospects for solutions at
the intersection of several directions. These include systems based on "digital
doubles", including elements of IA, the Internet of Things, wireless
communication technologies, and sensors. The market is expected to grow at an
annual rate of more than 50% by 2026 (Yousef et al., 2023). In the manufacturing
industry, digital technologies are introduced more actively and the industry
ranks second after the financial services sector in terms of the cost of
implementing digital technologies (9.2%). However, only 12% of manufacturing
organizations conform to modern digital production. This is because the effects
of investments have been delayed and are felt as companies move from pilot
launches to full-scale implementation of digital solutions (Qi-Zhang et al.,
2023).
The reserves of productivity growth are indispensable for the extractive
sector in effectively adapting to the evolving structure of global demand. This
necessity is evidenced in the proliferation of convergent technologies, which
shows the Fourth Industrial Revolution (Yousef et al., 2023; Ghazinoory,
Hoshdar, and Nozari, 2022).
Technological convergence represents the stage of development of science
and production combined into new types of technologies under the influence.
Conversely, in inter-branch integration of research activities, there is a
response to the increasing demand for production and goods characterized by new
properties. (Lin, Wu, and
Song, 2019) Initially, technological convergence was the object of socio-economic
research in the 1990s as a reflection of information technologies with various
types of material production (Castells, 2009). M.C. Roco, W.S. Bainbridge connected the
concept to the synergy of technological development in the following four
industries (Roco and
Bainbridge, 2003):
- Nanotechnology in materials engineering, chemistry, and robotics,
- information-computing technologies as a unified digital technological
platform for the development of all sectors of the economy,
- genetic engineering as a general basis for the development of
biological sciences and medicine,
- Neural engineering and cognitive technologies, combine human and
machine intelligence into complex systems of "intelligent" robots.
The data analysis and learning capabilities are far beyond the existing
automated systems.
The interest in convergent technology has focused on the analysis of the
end-to-end nature, transforming high-tech industries (Palazzani, 2019; Rao, Bojkovic, and Milovanovic,
2009), the macroeconomic potential (Avdeychik, 2021; Park, 2017), the
formation of a new quality of human well-being (Ballesta, 2021; Marriwala et al.,
2021). Similarly, the lack of research on modernization is reported through
convergent technologies, serving as a cross-cutting for many manufacturing
industries.
According
to Kovalchuk, the primary demand for convergent technologies is from industries
functioning to enhance labor productivity, mitigate non-productive expenses,
and reduce the risks of hazardous production processes, minimizing direct human
participation in operations (Kovalchuk, 2011). Therefore, (Taran, 2019) positioned the extractive sector as the main
recipient of convergent technologies due to the increasing demand for
modernization in the next decade, as well as public pressure on labor and
environmentally hazardous mining operations.
The
mining sector cannot underestimate the latest trend in the development of
convergent technologies, particularly the development of hyperconvergence,
which includes modular and scalable information and cognitive systems (Hewlett Packard Enterprise,
2020).
Hyperconvergence may take the form of a future technological transition from an
"Internet of Things" closely connecting different types of equipment
and remote human operators to an "Internet of Everything" to replace
human operators. In this context, the basis of the theoretical analysis of the
prospects improves productivity in the long term at the expense of the
opportunities related to convergent technologies. The research motivation is to
form theoretical provisions to justify the regulation of innovative development
in the extractive sector.
The
majority of previous publications have an ambivalent position in summarizing
the review of the literature on the research problem. On the contrary, the
analysis of the advanced end-to-end technologies on productivity is associated
with Industry 4.0 and the role in optimizing production, as well as the
capabilities of convergent technologies. The research of technological convergence
affect the development of the extractive sector to the least extent, showing
the diffusion in the manufacturing and high-tech sectors. Therefore, this
research aims to determine the influence of convergent technologies on
productivity in the extractive sector. The achievement necessitates several
tasks, such as analyzing the international dissemination of convergent
technologies, stating the technological intricacies of the contribution to
productivity, and stating the importance of establishing a national
technological platform.
2.1. Initial data
This
research considers the possibilities of long-term productivity improvement
within the convergent technologies of the extractive sector. The methodology is
the analysis of prices, investments, productivity, economies, and foreign
experience. The results are used to form theoretical provisions for the
regulation of convergent-technological modernization of the extractive sector.
Concerning the hypothesis, the diffusion of convergent technologies can have a
significant impact on productivity within a specialized national technological
platform connecting the interests of extractive companies with research and
development entities.
The materials used are the data of Russian and international official
statistics, including The World Bank (2021), the reports, and publications of mining
companies for the period 2008-2022. The criteria of the analysis are relevance
(relevance to the needs of the extractive sector in the new technological basis
of modernization), interpretability (presentation of the results in a form
understandable to stakeholders), usefulness (indication of the necessary
specific actions), and timeliness (accessibility for operational
decision-making).
2.2. Research methodology
The research is based on a convergent method
for the interdisciplinary boundaries of knowledge through the mutual
penetration and influence of various subject areas and information
technologies. Convergence is described as an increasing and transformative interaction
between scientific disciplines, technologies, communities, and spheres of human
activity to achieve compatibility and integration. This variable is important
for the information society, and the analysis of the social consequences can
solve problems. New technologies and knowledge are based on the following
principles, interdependence in nature and society, as well as enhanced
creativity and innovation. Convergence or divergence processes depend on a
holistic system deductive approach, the development of interdisciplinary
high-level languages for new solutions and transmission of new knowledge, and
ideological concepts of modern basic research. This is largely due to the
combination of natural science and information technology to develop methods
and technologies for creating “nature-like objects”, based on the formed
technological convergence. The embodiment in the economy is structural
convergence, when the principle of macro- and macroeconomic proportions changes
from sectoral to technological.
The basis of the approach was the method of structural convergence (Beck, 2021; Scharpf, 2020;
Aiginger, 2015) to show interconnections between the merging of
innovative technologies, the convergence of different branches and sectors, as
well as the convergence of countries with a prevalence of extractive and
manufacturing economy on macroeconomic indicators. Meanwhile, the main
provisions include the following:
- convergent
technologies (AI, digital tweens, machine learning, "smart" robots
and co-bots, as well as nano-biochemistry), as the core of Industry 4.0,
equally cause radical productivity growth in high-tech and extractive sectors.
- structural changes
in the industry under the influence of convergent technologies are universal (Zhironkin et al., 2021) and
can solve the problem of long-term stagnation of investment and productivity.
- convergence of
productivity in the resource and manufacturing sectors of the economy is more
typical of countries where the intellectual rent exceeds the natural rent (Zhironkin, Zhironkina and
Cehlar, 2021).
2.3. Research limitations
The limitations adopted in this research are associated with unequal rates of diffusion of convergent technologies in the basic sectors, depending on the level of innovation infrastructure and financing of the sector. This causes difficulties in predicting the growth rate of productivity during the diffusion of convergent technologies. However, the platform system of innovation development is recognized as equally effective for the sectors of the economy.
2.4. The research Flow
This research was carried out in three stages and covered the period of
2017-2022. In the first stage (2017-2018), an analysis of the state of research
related to the problem of productivity growth in the national and global
mineral resource sector was conducted in line with the expansion of convergent
technologies. In the second stage (2019-2020), an analysis of the influence of
Industry 4.0 convergent technologies on the mining industry was carried out to
consider the main component of the subsystem, namely Mining 4.0. In the third
stage (2021-2022), the provisions were developed for a national convergent
technology platform in Russia to increase the radical modernization of the
extractive sector to the level of Industry 4.0, with access to a higher level of
productivity.
World prices on basic
resources for iron ore and steam coal industries since 2008 and 2016 are under
pressure from volatile demand, as shown in Figure 1. In the short term,
decreasing raw material prices have squeezed the cash flows of major commodity
companies by 25-40%. This has affected investment in technological upgrades,
resulting in a global decline in productivity over the past 15 years.
Figure 1 Index
of world prices for certain types of minerals and productivity in the mineral
complex (2008 - 100%), Author's
interpretation based on reporting data Price Waterhouse and Coopers (2020)
According to the data
in Figure 1, fluctuations in the price of basic extractive sector products
(coal and iron ore) cannot drive productivity growth on a global scale despite
the periods of recovery in 2012 and 2018. In 2012, productivity decreased by
22% compared to 2008 due to a significant decline in investment, which amounted
to a 10% reduction in 2010 as shown in Figure 2 Subsequently, the trend of
reduction in investment since 2014 led to a decline in productivity in
2016-2018. In 2020, the productivity in the global extractive sector reached
the mark of 90% compared to 2008.
Figure 2 Dynamics
of investments and revenues of the world's 40 largest mining companies. Author's
interpretation based on reporting data Price Waterhouse and Coopers (2020)
The
data in Figure 2 reports that the world's largest mining companies increase
revenues mainly during periods of high prices for raw materials. In this
context, the long-term trend of investments and productivity shows stagnation.
According to previous results, the extractive sector of mineral exporting
countries was effective only within the existing structure of prices and demand
(Sick,
Golembiewski, and Leker, 2013). The change in demand for minerals expected
in the next decade may lead to industry crises due to unfolding trends of
decarbonization of internal combustion engines with electric motors, and
replacement of metals with super-strong composite materials. This applies to
the Russian economy due to the volatility in the sector over the last 15 years
as well as a long-term downward trend, and stagnation of productivity.
Figure 3
Indices of investment, labor productivity, and growth in the extractive sector
in Russia, author's
interpretation based on reporting data Price Waterhouse and Coopers
From the data
presented in Figure 3, the growth rate of the extractive industries sector
tends to decline below zero and the index of investments in the fixed capital
shows a similar dynamics. Therefore, the productivity index fluctuates at
102.5%, showing a "technological stagnation" in the extractive sector
of the Russian economy.
Technological stagnation is considered as the
long-term persistence of organizational, investment, and technical problems in
the commercialization of new technologies. The solution includes using the
capabilities of the most advanced technologies to radically increase
productivity in all sectors of the economy.
In this context, "technological stagnation" requires the
diffusion of convergent technologies in the structure of the extractive sector.
The specific risks should be recognized with the breakthrough opportunities
described. Factor analysis of convergent technologies used for productivity increase
is presented in Table. 1.
The economic basis for the expansion of technological convergence and hyperconvergence includes a radical increase in labor productivity and the formation of new forms of attracting investment. Radical increases in labor productivity include the changes within the generations of production due to the extensive use of AI and cyber-physical systems in equipment, process control, design planning, investment, sales, and logistics. In addition, nano-bio-convergent technologies are capable of developing new methods of mineral extraction with significantly lower costs, up to the abandonment of modern mines and quarries. This is achieved by dissolving coal in the subsurface, using copper-eating bacteria, and running underground robots-geodes. The reproductive - component of the convergent-technological modernization is related to the creation of a technological platform.
Table 1
Convergent technologies on productivity in the extractive sector of the economy
Factors affecting
productivity in the extractive sector |
Ways to solve
productivity problems |
Role of convergent
technologies in increasing productivity |
1. Reaching the
productivity limits of existing raw material extraction technologies |
Full automation of
production processes Internet of |
Things for
digital-physical high-precision production systems |
2. Increase in
operating costs due to higher cost of resources and higher safety
requirements |
Optimization of
production processes, energy, and resource consumption |
Equipment combined
with drones, application of "smart sensors |
3. Growth of
personnel costs Implementation of unmanned production systems |
Transition from the
Internet of |
Things to the
Internet of Everything |
4. Price volatility
on the global commodity market |
Introduction of
information and analytical complexes based on AI, allowing modular
reconfiguration of production processes under the dynamics of markets |
Artificial
Intelligence (AI) technologies in the management of companies and enterprises |
5. Deterioration of
minerals due to the gradual depletion of deposits with high availability |
Improvement of
mining planning and forecasting processes |
Transition from
information-convergent to hyperconvergent technologies |
6. Legislative
requirements for full restoration of extractive cluster ecosystems |
Development of
environmental management based on convergent technologies |
Nano-bio-convergent
technologies for complex extraction of mineral resources |
Convergent
technologies of the Fourth Industrial Revolution are represented in the
industry by the achievements of digitalization. New means of production created
with the use of information-cognitive convergent technologies and supplied to
the extractive sector include systems of 3D modeling and design of production
processes, wearable environmental scanning devices, unmanned mine dump trucks,
excavators and drilling rigs connected through the "Internet of
Things", and unmanned mining sites. Convergent information-cognitive
technologies in AI provide equipment with the ability to convert data sets into
automatic predictions of future events. This increases the possibility of
making management decisions without human participation in operational
planning, as well as forecasting technical, natural, and man-made incidents.
Currently, the technological transition from man-machine systems to
"AI-machine" is widely represented by interactive technologies of
virtual and augmented reality. Additionally, digital twins are used by mining
companies for performing advanced modeling and monitoring of work operations as
well as improving the accuracy of operations.
In particular, "smart" protective glasses, which are fitted to
the employees of mining enterprises are capable of giving real-time
instructions to the personnel based on the online analysis of information from
"smart sensors" and video surveillance. In 2017, the implementation
of convergent-technology tools by Freeport-McMoran Copper & Gold achieved a
remarkable 85% reduction in the frequency of accidents to minimize losses and
downtime. Additionally, the adoption enabled the company to save up to $2
million in employee injury payments (Antworp, 2018). The
information-cognitive convergent technologies can also be used to provide
immersive worker training to prepare for contingencies in hazardous
environments and reduce the impact of human error on lost time and property
damage in accidents.
Another aspect of convergent technologies in the extractive sector is the
digital-physical transformation of production, which opens up new opportunities
for using robotics to produce autonomous equipment. Investments in production
are projected at $30 billion in 2025, which is explained by the cheapening of
industrial robots by 70% over 1990-2010. This is achieved with a simultaneous
increase in labor costs for the extractive sector of the U.S. and EU economies (Nadipuram, 2014).
Major mining companies actively implementing digital mining management
and design systems, as well as unmanned equipment, in 2018 reported a reduction
of operating costs and losses from technogenic risks by 12-15% (Price Waterhouse and
Coopers, 2018). Moreover, the global market for AI implementation tools for mining
management and design was valued at $6.8 billion, $9 billion, and $30 billion
in 2018, 2020 (Price
Waterhouse Coopers, 2018), and 2025 (AI Foundations, 2019), respectively. The
COVID-19 pandemic has increased the inclination towards automating and
digitizing mining operations, thereby reducing reliance on manual processes.
Therefore, there is a projected deepening of this trend, with the demand for AI
systems within the industry anticipated to potentially double by 2025.
The convergence in mining engineering is associated with the development
of new method of production coupled with drones. The use of drones can lead to
a significant reduction in labor costs and improve the quality of real-time
information on equipment operation and mineral extraction. Additionally, machines
connected to drones significantly increase productivity and economic efficiency
through the use of autonomous mining and transportation systems (AHS). In the
context of AI, mining equipment using "connected" and self-training
devices, such as intellectual sensors, can optimize equipment performance and
provide preventive maintenance to minimize man-made accidents as well as
related production restoration costs reaching 25% of operating costs.
In 2030, new mines in the USA and Australia will be fully equipped with
unmanned production facilities connected by the "Internet of Things".
The majority of technological processes will be controlled by AI, connecting
the components of the value chain in a single system for analyzing huge volumes
of data in real time as well as making optimal technical and economic
decisions. The capital cost of building an unmanned iron ore mine is estimated
at $750 million, with an expected 24% increase in equipment productivity and a
17% reduction in operating costs. Meanwhile, the payback period should be a
quarter less than the conventional mines (Durrant-Whyte, 2015).
An important aspect of convergent technologies in the extractive sector
is the protection of intellectual property rights as the basis of Industry
4.0's method of production, and the sharing of revenues from the use. In
addition, the use of AI and automated technologies creates the problem of users
being responsible for the decisions made without human inclusion. Industry 4.0 is a concept of a new reality in the economy,
in which the management of most processes will be fully or partially in a
digital format (David, Deepika, and Philip,
2021) and subordinated to AI
(Erboz, 2017) to form full-scale cyber-physical systems (Abu-Abed, 2022). The
diffusion of Industry 4.0 technologies creates a subsystem of innovative
development for Mining 4.0, which is characterized by digital twins of
individual processes and clones of equipment (Vitor, 2022),
blockchain in mining inspection (Pincheira, Antonini, and Vecchio,
2022), widespread use of
smart sensors, machine vision and learning (Kodratoff and Moscatelli, 2021) as well as the expansion of the Internet of Things during the transition
to completely unmanned enterprises. There should be
mechanisms of transfer and protection of rights on information generated when
using licensed technology since the manufacturers of modern mining equipment
are connected by contractual relations with producers of information-analytical
systems and AI. Furthermore, entitlements regarding data usage must be weighed
against the prospective rights to personal privacy of employees after the
enactment of data protection legislation featuring expansive definitions of
personal data.
In the Russian economy, the diffusion of convergent technologies is
constrained by the uncoordinated development of technology platforms. This
served as the most important infrastructural element of innovation investment
in the European Union in the early 2000s. The main feature of European
technology platforms is the participation of universities and research
organizations as well as investment companies and banks in the innovation
process. In Russia, technological platforms were created in the early 2010s on
the initiative of the Government. The following technological platforms operate
within the field of information and computing technology, National software coordinated
by "Sirius" concern, which is part of state corporation ROSTECH, and
unites 65 organizations, including major Russian technical universities (Bauman
Moscow State Technical University, MIEM, MIPT), institutes of management
problems and system programming of Russian Academy of Science and leading
domestic producers of software products (1C, ABBYY, ALT Linux), National
supercomputer technology platform coordinated by Institute of Software Systems
RAS, and M.V. Lomonosov MSU, which includes 42 participants with 20 independent
developers.
The projects belonging to the techno-platforms are
mostly remote from the modernization of the mining sector to improve the
information infrastructure and security creating supercomputers and computer
networks for the needs of public administration and defense. The proposed
technological platform should reflect the impact of convergent technologies on
productivity in the extractive sector presented in Tab. 1. These include
unmanned production systems, "smart sensors" and equipping drones,
increasing use of the "Internet of Things" and transition to the
"Internet of Everything" in mining.
The discussion section of the research contributes
to solving the problem of increasing labor productivity through the
introduction of convergent technologies even though most research of Industry
4.0 focus on the expansion of digital technologies. The analysis of the
accumulated experience in the implementation of end-to-end digital technologies
is related to the manufacturing sector of advanced countries. Furthermore, this
research contains provisions for the platform development of convergent
cyber-physical, nano-biochemical, and cognitive-management technologies as the
main condition for a radical increase in productivity.
Concerning the associated
limitations, the mining sector exhibits minimal adoption of convergent
technologies, resulting in reduced productivity across mineral extraction
operations. Therefore, further research should summarize positive experiences
in this field and develop recommendations for the expansion of a national
platform of convergent technologies within the mineral resources sector.
In conclusion, the necessity to address the decrease in
technological convergence and hyperconvergence over the past decade was
considered when summarizing the analysis regarding potential opportunities to
increase productivity in the extractive sector. The demand for radical
technological modernization of the mining sector was created by volatile
commodity prices, unstable investment volumes, revenues of mining companies,
and the efficiency limits of existing mining technologies. This prevented
possible future energy and resource crises caused by structural shifts in
consumption. In addition, convergent technologies served as the core of
modernization, which manifested as a product of inter-industry diffusion of
innovations and the development of new industries. As the main driving force of
the Fourth Industrial Revolution, convergent technologies led to AI and
unmanned method of production, as well as the integration of "smart
sensors" and the "Internet of Things" into the extractive sector
of several countries. In the Russian economy, the diffusion of convergent
technologies was restrained by the fragmented functioning of technological
platforms, and the productivity in the extraction of raw materials became
stagnant. To overcome this problem, a platform was proposed to decrease the
development of domestic unmanned systems, introduce AI in the planning and
management processes of the enterprise, as well as create modular production
based on the “Internet of Everything.”
This research was financed by
a grant from the Plekhanov Russian University of Economics.
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