Introduction
The automation of mining operations, including the implementation of an Autonomous Haulage System (AHS), has significant social effects on communities. Newmont Goldcorp can consider investing in different types of mining technologies, including the autonomous drill technology and AHS, to improve productivity and decrease accidents. Blockades that were organized by trucking contractors and the representatives of local communities at Peñasquito mine in 2019 seem to add to the development of Goldcorp’s technology implementation plan (Jamasmie; Newmont Mining Corporation 12). The implementation of this system will result in reducing the impact of trucking contractors on activities at Peñasquito mine as potential influences can include blockades, the violation of schedules, and the failure in completing plans. Thus, specific social effects of this operational change include the potential expansion of mining activities in the region, job losses for community members, and improved safety.
Main body
Goldcorp has an experience in implementing automation at Peñasquito mine with a focus on the autonomous drill technology. This solution has increased the mine’s productivity in terms of optimizing processes, facilitating the speed of working on holes, and increasing the number of holes made during a set period of time; and the use of the AHS can potentially lead to similar positive outcomes for productivity (Gleeson). Improved productivity may result in the expansion of operations to neighboring lands, affecting communities of Cerro Gordo, El Vergel, Cedros, and Mazapil (Trujillo 38-45). Therefore, there is a risk of polluting more soils, using more water resources, and provoking local communities’ further opposition.
The use of the AHS at Peñasquito can also result in decreasing the number of job positions for local community members, affecting the quality of their life. Still, it is possible to expect that not all employees replaced by the AHS will be fired, depending on their qualifications (Trujillo 40-48). Accordingly, much attention should be paid to investing in training to involve affected employees in the process of implementing innovation (Kansake et al. 1-2). There is a risk that community members will perceive automation at Peñasquito and related dismissals as unfair treatment.
Another social effect is the reduced rate of mining accidents caused by employees’ activities because of decreased human involvement. If the number of accidents for people at the mine is decreased, the number of affected breadwinners in the community is also decreased. The implementation of the AHS at Peñasquito mine is an advantageous alternative to improve the safety of mining operations as higher standards need to be followed (Calderón Arteaga). Operations at Peñasquito mine provide the company with 33% of its revenues, therefore, the improvement of safety is a priority for Goldcorp (Mullan). Automated trucks are preferable to be used, increasing productivity and quality of operations.
One more effect on the local community associated with AHS adoption is reduced use of fuel and other resources. In the context of Peñasquito mine, reduced consumption of resources because of automation and improved cost distribution can result in positive impacts on social attitudes of Cedros and Mazapil communities (Saminather; Trujillo 38-40). The reason is that the application of the automation will lead to using less water and other resources associated with contaminating water and soil. Goldcorp is focused on improving local water supply systems, and automation is one of the steps in this project because it is important to decrease the pollution of water resources and provide the base for implementing new technologies for building and developing local water supply systems.
Much attention should be paid to the stakeholders’ involvement in order to guarantee that the implementation of the automation will lead to positive results for the community. Goldcorp will decrease its dependence on local track contractors and reduce the power of the local government on their operations. Instead, it will be possible to attract more skilled stakeholders interested in taking positions associated with controlling the work of the AHS. It is important to inform the public that the implementation of the AHS is critical for making operations more effective and safe for all people working at Peñasquito mine. As a result, it will be possible to stabilize the situation regarding the impact of the communities and the government on the operations of Goldcorp. Stakeholders should be involved in the process of resolving the blockade-related issue as the solution is in finding the variants to remain the payments for workers stable but the impact on the environment in terms of dust and water pollution decreased. One of the important steps is the discussion of the perspectives of applying the AHS with all the involved stakeholders to demonstrate the benefits of this decision and avoid opposition.
Conclusion
Goldcorp will be able to decrease operation costs and improve productivity with the help of the AHS at Peñasquito mine. Consequently, the overall operational excellence can be achieved at the mine, but there is also a risk of community members’ dissatisfaction. These changes can potentially lead to the further growth of the mine’s activities and further annexation of local communities’ lands without providing the adequate compensation for them because of increased automation.
Works Cited
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Gleeson, Daniel. “Goldcorp’s Peñasquito Mine Seeing Benefits of Fully-Autonomous Drilling.” International Mining, 2019, Web.
Jamasmie, Cecilia. “Newmont Goldcorp Resumes Operations at Peñasquito Gold Mine in Mexico.” Mining.com, 2019, Web.
Kansake, Bruno Ayaga, et al. “Preparedness of Ghanaian Mine Stakeholders for the Adoption of Autonomous Surface Mining Systems.” SME Annual Meeting, vol. 2, 2019, pp. 1-12.
Mullan, Laura. “Goldcorp’s Peñasquito Mine: A Shining Example of Digital Innovation in the Mining Industry.” Mining Global, 2018, Web.
Newmont Mining Corporation. Newmont Goldcorp Technical Update. 2019, Web.
Saminather, Nichola. “Newmont Goldcorp to Suspend Peñasquito Operations in Mexico due to Blockade.” Reuters, 2019,
Trujillo, Nayeli Armendariz. A Critical Analysis of Corporate Responsibility in the Mining Industry: The Case of Goldcorp in Peñasquito Mexico. Thesis, Copenhagen Business School, 2016.