Southeast Asia, a key producer of metals like nickel and copper, is expanding its downstream processing industry, particularly in Indonesia. By leveraging digital and analytics (DnA) technologies, the sector could unlock $4-5 billion in value by improving productivity and efficiency.
Indonesia's shift from exporting raw ore to building downstream processing capabilities, driven by government policies since 2019, has led to a rapid increase in smelters and processing capacity.
Despite this growth, the industry hasn't fully tapped into the power of data. DnA solutions, such as AI-driven analytics and digital control towers, could enhance decision-making and optimize operations, potentially improving throughput by 8-10% and recovery rates by up to 3%.
To achieve this, companies must undergo a “triple transformation”—aligning business strategies, reshaping organizational culture, and upgrading technology infrastructure. This comprehensive approach could help Southeast Asia's processing industry leapfrog toward becoming a global leader in metals and mining, enhancing its competitive edge in a rapidly evolving market.
Article courtesy of McKinsey. Read more here or in the PDF below.