Special Report: Mining is a big deal in Australia having  delivered a record $455bn in export revenue during FY2023, however, its operations on the ground are still struggling to adopt two megatrends sweeping the business world.

We speak of course about big data and artificial intelligence (AI), the biggest investment themes in business that have been described as the next industrial revolution with McKinsey forecasting the latter could about double GDP growth and Microsoft projecting it will add USD$10T to global GDP over the next 10 years.

Big data involves the collection of large amounts of data from many different points that could provide valuable insights to solve business problems and make informed decisions. AI meanwhile enables computers to analyse data and make recommendations, among other things, by leveraging big data techniques.

For miners, these two trends have the potential to massively improve productivity through streamlined operations, centralised remote management and ultimately autonomous operations while simultaneously reducing safety risks.

However, the adoption of big data and AI has constrained by the lack of reliable connectivity in remote locations – ie the actual mining operations at the ‘coal face’ – due to the inability to collect real-time and high-speed data.   The main limitation has been the historical use of the power couplers available in the market that do not allow for high-speed data transfer.

 

Power solutions for a data-enabled world

Connec – an Australian technology company focused on providing a solution to the mining industry – has developed a patented solution  that is gaining significant traction with global players.

The company was founded 12 years ago to create  medium voltage coupler systems (MVCS) that radically improve the design versus existing systems to make electrical infrastructure, starting with mining, fundamentally safer  and drive more productivity.

This led to the development of a product constructed out of proprietary polymer rather than steel or metal, is far safer as it is less prone to explosions and electrocution due to its non-conductive properties and design characteristics.

Compared to incumbent systems, the company’s next-generation MVCS product is also ~50% lighter, ~40% more efficient and are much easier to connect leading to increased output, reduced downtime during maintenance, and other multiple design benefits.

This is well timed given the global trend towards electrifying the industry – spurred on by examples such as Fortescue’s landmark AUD$3.8bn partnership with Liebherr to create one of the world’s largest zero-emission mining fleets,

Connec’s patented integration of continuous fibre optic data  transmission through the coupler uniquely enables data speeds of 250x faster than incumbent solutions opening up various use cases.

Incumbent coupler system (left) vs Connec’s latest product. Pic: Connec

 

“This is a watershed moment for Connec. Twelve years ago, we set out to build a superior range of 1kV to 25kV coupler systems that can transmit power in a safer and more efficient way. But adding real-time data transmission capability changes the game for us because it has made our product a must-have in the sector,” executive chairman Kim Manley said.

Importantly for the company, the capabilities of its products, which have been patented and passed all the relevant IECEx and Australian and New Zealand standards certifications and  been tested and installed at an Australian underground coal mine, places it many years ahead of any competitors in the $4.4bn mining coupler market.

The range of improvements means that mines could adopt the company’s products for different reasons, be it data highway productivity, safety, efficiency, sustainability or even for electrification of their operations.

“We are now the world’s only company that can offer a combined power/data solution at a bandwidth that unlocks technologies that are common in most industries but have been inaccessible to the $1 trillion global mining sector so far,” Manley added.

 

Drawing attention

With Connec’s technology demonstrated in real-world conditions to representatives from some of the world’s largest companies, it is unsurprising that interest in its products is growing.

Already, the company is experiencing a rapid acceleration of its project pipeline, with initial purchase orders already received from leading miners.

Connec is currently selling its products through a two-pronged strategy, the first of which is selling directly to operators in the mining and tunnelling sectors through an experienced internal sales force and the second through partnerships with global players in the ecosystem.

The first has already resulteds in the total addressable market growing markedly, with new doors opening in North America as the company continues its commercialization.

The second offers significant blue-sky potential with the company estimating that a successful partnership could multiply its revenue forecasts to over $100 million within the next five years.

These strategies are led by infrastructure veteran Murray Woolcock, who cut his teeth with LendLease and Apollo Global Management portfolio companies, and is using his global network to find partners that can help boost Connec’s growth beyond just direct sales.

“As a key enabler of both electrification and big data, two megatrends firmly underway, the scope of application of Connec’s solutions is enormous on the global stage.   Connec is already proving to be extremely valuable for product-based mining solutions, with the wider application of its patented intellectual property to other industries presenting exciting new growth pathways  ” he added.

Click Here to hear directly from Connec Directors Kim Manley and Murray Woolcock on how their technology is unlocking electrification and big data for the $1 trillion global mining industry.

 

Not sitting still

Connec continues to innovate on its product offering.   This includes new features in development such as luminous cabling and GPS tracking that are uniquely enabled by Connec’s patented design.

“All Mining companies want to reduce the risk of potential harm or fatality to their employees . Connec provides the potential for remote condition and performance monitoring, which reduce the need for employees to be exposed  to dangerous environments,  and to optimise their processes,” Manley said.

“Secure, reliable high-speed data transmission, integrated with the supply of power is the key to this. By way of example, the future of mining is a business intelligence team remotely monitoring a system that is fed by thousands of sensors underground in real time for a highly effective operation with minimum staff at risk.”

All of the above was not lost on Connec’s largest investor – Reach Markets – with Managing Director Patrick Nelson stating “We invested in Connec back in 2021 because their technology was already leagues ahead in safety and efficiency. But with the rapid rise of electrification and big data in the mining sector, we are seeing that Connec’s product is rapidly evolving from a ‘nice-to-have’ to an essential part of the mining technology stack”.

 

This article was developed in collaboration with Connec, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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