Deloitte Canada has launched its Mining Evolution Platform aimed at helping mid-tier and junior mining companies improve visibility across operations as complexity grows and investment decisions become more difficult.
The platform built on SAP Public Cloud ERP integrates financial, operational and supply chain data into a single system. It’s subscription-based software that runs core business functions online, rather than on company-owned infrastructure. Deloitte positions it as a standardized pre-configured enterprise resource planning system that can be deployed in stages and expanded as companies grow.
“Operational complexity keeps industry leaders up at night, but that’s exactly what enterprise resource planning solutions like our Mining Evolution Platform is designed to alleviate,” said Kay Ampofo, manager at Deloitte Canada’s SAP Enterprise Solutions practice. “Companies relying on static, fragmented digital cores can’t provide insight into the kinetic nature of mining operations.”
The push comes as miners face a mix of strong commodity prices, cost inflation, geopolitical disruption and deeper, more complex orebodies. It’s all increasing the need for better real-time data to guide capital allocation and project development decisions. Fragmented systems can have hidden risks such as poor margin visibility, unseen downtime drivers and mismanaged inventory.
Navigating dynamics
Commodity prices have strengthened, particularly for gold, but companies remain cautious about committing to major expansions amid uncertainty over how long those conditions will last, Deloitte said. Mergers and acquisitions are also accelerating, with large miners reshaping portfolios while new projects advance towards production, the company said.
“The industry is booming and commodity prices are through the roof – especially gold – but will the prices we see now hold before a mining company goes ahead with a major expansion?” said Marius Van Jaarsveld, partner and industry leader for energy and resources at Deloitte Canada.
At the same time, the operating environment is becoming more complex, driven by factors that extend beyond systems. Deposits are becoming harder to access, particularly for commodities such as copper, while new projects are increasingly located in remote regions with different regulatory and logistical challenges, the Deloitte d. Geopolitical tensions and shifting trade routes are also forcing companies to rethink supply chains and distribution strategies, the company said.
Interest in critical minerals such as lithium and cobalt is also adding pressure, alongside cost inflation and heightened competition for new discoveries, the company said. These dynamics are increasing the need for real-time visibility across operations as conditions change rapidly, the company said.
Legacy systems
Many mining operations still rely on fragmented information systems, with different departments using separate systems for finance, maintenance and supply chain management, Deloitte said. In some cases, operations continue to depend on spreadsheets or basic accounting software, limiting their ability to track integrated real-time performance and creating gaps between what is happening in the field and what is recorded in corporate systems.
In these environments, changes in production, maintenance or logistics may not be reflected consistently across systems, increasing the risk that decision-makers are relying on incomplete or outdated information, the company said. That disconnect becomes more pronounced as operations scale or as companies add new assets, particularly in different jurisdictions with varying regulatory and operating conditions.
That lack of integration can lead to what Deloitte describes as hidden risks, including incomplete or misleading data used for decision-making, the company said. One example is “blunt margin insight,” where performance is measured on an aggregate basis across assets, masking underperformance in individual operations.
In practice, this can mean that a high-performing asset is effectively subsidizing a weaker one without management having a clear view of the underlying issue, the company said. Over time, this can distort capital allocation decisions and reduce overall returns, particularly in multi-asset operations where differences in geology, access and operating conditions are significant.
Inventory control
Inventory management is another pressure point. Companies may over-order critical parts to avoid downtime when systems cannot accurately track stock levels, tying up working capital and reducing efficiency, Deloitte said. In some cases, site managers build informal buffers by holding additional inventory outside formal systems, further reducing visibility.
“Rather than ordering one pump that’s needed on an emergency basis, someone orders three,” Ampofo said.
Kay Ampofo, manager at Deloitte Canada’s SAP Enterprise Solutions. Image supplied.
The reverse can also occur, when insufficient inventory forces companies to pay higher costs for expedited orders, particularly when parts are needed to keep operations running, the company said. This dynamic can be especially challenging in remote operations, where supply chains are longer and less predictable, and where delays can have an outsized impact on production.
“If you know you’re going to need a part in three months and it’s going to take six months to be delivered, you need to order it well in advance,” said Emeldah Difatlhi, Manager, M&A Valuations | Deloitte Technical Mining Advisory (DTMA) in Canada.
Deloitte said these issues are compounded by the increasing volume of data generated by modern mining equipment, which is not always fully used. Haul trucks and other mobile equipment can generate large amounts of operational data, but without integrated systems, companies may struggle to analyse that information effectively or identify patterns that could improve performance.
Proactive maintenance
As a result, maintenance issues may be addressed reactively rather than proactively, leading to higher downtime and costs, the company said. Engineers may suspect recurring problems but lack the integrated data needed to confirm root causes across fleets or sites, the company said.
The company also pointed to broader risks linked to fragmented systems, including inconsistent controls over system access and spending approvals, particularly in operations that rely heavily on contractors. In some cases, approval processes may be informal or poorly documented, increasing compliance risk and making it harder to maintain consistent governance across operations.
Deloitte said that as companies grow, these challenges can compound. New assets or acquisitions may be added using different systems or processes, leading to parallel structures that increase complexity and reduce standardization across the business.
Van Jaarsveld said short-term fixes often mask underlying problems rather than resolving them, particularly in operational environments where immediate solutions are prioritized.
“A duct tape solution may get the job done,” he said. “But it doesn’t really solve the problem.”
The firm positions its platform as an alternative to the current suite of ERP systems, which can be costly and time-consuming to implement. By using a standardized approach based on industry practices, Deloitte said companies can start from an established framework rather than building systems from scratch, reducing both cost and implementation risk.
Scalable modules
The platform is designed to be scalable, allowing companies to adopt specific modules as needed and expand over time as projects move from development into production, Deloitte said. This approach is intended to support junior miners as they transition into operating companies, as well as mid-tier firms managing single or multiple assets.
For larger companies, the platform can also be used at the site level within broader enterprise systems, allowing individual operations to maintain a degree of autonomy while still integrating with corporate reporting structures, the company said.
Emeldah Difatlhi, Manager, M&A Valuations | Deloitte Technical Mining Advisory (DTMA) in Canada. Image supplied.
A staged rollout approach is intended to limit disruption by starting with financial systems before expanding into operational data and advanced analytics, Deloitte said. The first stage focuses on establishing a single source of truth for financial data, followed by integration of supply chain, maintenance and production systems.
Subsequent phases can incorporate analytics, automation and predictive tools, allowing companies to move from basic reporting toward more advanced decision support, the company said. The staged approach reduces the need to pull key personnel away from operations for extended periods, a common concern in large-scale ERP implementations.
“Company’s initial assumption when they hear about SAP implementations is that they’re looking at a budget blowout costing millions of dollars with contractors flowing through their door disrupting your operations,” Ampofo said. “We are aware of these fears, but implementing our Mining Evolution Platform doesn’t have to be scary.”
New shift
Deloitte said its approach reflects a broader shift away from highly customized systems towards standardized platforms that can be updated more easily over time. As technology evolves, maintaining flexibility and the ability to incorporate new tools is becoming increasingly important, particularly as companies look to integrate automation and artificial intelligence into their operations.
Treating ERP systems as ongoing platforms rather than one-time implementations allows companies to adapt more quickly to changing conditions and avoid falling behind as technology advances.
Delaying investment in systems can increase long-term risk as operational and financial issues accumulate, Difatlhi said
“It’s always an easy solution to do nothing,” she said. “But problems will compound over time, cost more to resolve and disrupt your business.”
The preceding Joint Venture Article is PROMOTED CONTENT sponsored by Deloitte Canada and produced in co-operation with The Northern Miner. Visit: https://www.deloitte.com/ca/en.html for more information.
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