Mining in transition phase from era of industrial [631714]

Mining in transition phase from era of industrial
revolution to knowledge -based economy. Status
and prospects
Jan Bondaruk1
Ryszard Marszowski1*
1 Central Mining Institute, Plac Gwarków 1, Katowice, Poland

Abstract. The authors of the article based on the world literature and own
research of GIG undertook an analysis of noticeable process of mining
modernization in the globalized world economy through its transition from
industrial era to a knowledge -based economy. The main source of the ongoing
process i s change referring to the concept of the "Fourth Industrial Revolution".
It shapes numerous processes and phenomena so far unknown in mass
recipients scale. It focuses on combining IT models to strengthen their impact.
At the same time, it aims to involve people in the work of digitally controlled
machines and the universal introduction of practical wireless networks and
information and communication technologies. The described process is directly
related to implementation of innovative and new technical co ncepts and
technological solutions for the mining industry – at the same time and wider
than in the industrial era, information and communication technology and a new
management concept. It can be assumed that the indicated changes will imply
in mining the need to redefine operating principles and organizational models in
order to build sensitive solutions based on innovations – which will shape
modern (intelligent) mining of the future based on the e-mine concept.
1. Introduction
Today, one of the key challen ges for global mining is need for a ski lful and innovative
promotion of modern attitudes and persuading that leaving from the way of thinking prevailing
in the industrial era is purposeful and inevitable, because only turning to the future – through
caring for self -development – can be a guarantee of success [1]. The main determinant shaping
this thesis is change in the paradigm of development of the current model of global economy as
a result of its dynamic transition from era of industrial revolution to a knowledge -based
economy, determined in its development by a new process called Revolution 4.0 [2]. From the
content of this thesis clearly emerges picture of the future in which man, industry and the
surrounding reality will be shaped by the processes of digitization and automation that are
developing with previously unknown dynamics. They can lead to the disappearance of world
dominated by era of industrial revolution and transition to a new era shaped by technologies
determined by the flow of data and th eir analysis. It seems that in this light future of mining will
be determined by two trends. In the first of these, mining will be on the margins of ongoing
processes as a result of mere exclusion from participation in their creation. In a successful
optio n, it will be included on the basis of its development potential in the indicated processes –
and it will derive the resulting benefits from the other participants in economic changes on an
equal footing. This is all the more important because, as Kasztele wicz emphasizes in the 21st
century, energy raw materials are the most important energy carriers. There is no doubt that
country, which will own and exploit its own raw materials, will be economically independent,

* Corresponding author: [anonimizat]

and above all safe for energy. Today, ener gy raw materials are a specific weapon of the 21st
century and a tool of geopolitics implemented by rich raw materials countries [3].
2. Polish hard coal mining – state and prospects in outline
The mining industry is one of the most significant sectors in shaping global economic
situation in the world. In countries with low and medium economic efficiency, it ensures
creation of new jobs, reduces poverty phenomena and improves the conditions for economic
development [4]. It is worth noting here that Pola nd has significant coal resources that will
serve as an important stabilizer of the country's energy security, which is of particular
importance to the dependence of the Polish economy on gas imports (over 70%) and crude oil
(over 95%) [5]. More precisely, in terms of hard coal mining, Poland ranks 10th in the global
rankings and first in the European Union. For Poland, hard coal is a guarantee of energy
security, being currently the primary source of energy [6]. Fully this position corresponds with
the pro visions of document "Energy Policy of Poland until 2030", which states that its main
objective in the field of security of fuel and energy supplies is rational and effective
management of coal deposits located on the territory of the Republic of Poland. [7 ]. It is worth
referring to the work entitled "Twilight of hard coal in Poland", which focuses mainly on
analyzes of coal management, the effects of extraction and use of hard coal and comparative
analysis of Poland's energy policy in relation to the Europ ean Union's Energy Road Map 2050
[8 ]. It seems that the thesis entitled " Twilight of hard coal in Poland" assumed in title of work
seems not justified in the light of the already indicated global positive impact of the mining
industry on developing countr ies' economies and Poland's position due to the existing hard coal
resources in the world and in the EU. In addition, the position expressed can be strengthened
with the following regularities that are characteristic of mining development. The share of har d
coal and lignite in global reserves of energy resources is 64%, crude oil 18% and natural gas
18%. The above comparison shows that coal is the largest carrier of primary and electric energy
in the world [9]. Assuming that the average annual increase in t he population by over 1%
translates into an average annual increase in electricity demand by about 2%, according to
forecasts by the International Energy Agency, the demand for electricity in the 2035 perspective
will increase by over 70% and will reach th e value of almost 32 000 TWh. Out of this overall
increase, 60% will be allocated to developing countries such as China, India and Middle East
countries . It is also important that the demand for not only energy resources will increase, but
also – according to global forecasts – demand for other mineral resources [10]. On the other
hand, ensuring Poland's energy security requires satisfying domestic demand for coal,
guaranteeing stable supplies to recipients and appropriate quality parameters [11]. Taking in to
account the future of hard coal mining, it should be clearly stated that in first half of the 21st
century there will be almost double increase in the global demand for electricity in the world.
To meet these needs, it is necessary to develop energy pro duction from all fossil fuels as well as
renewable and atomic energy. It is highly probable that hard coal will remain the most
important fuel in the next few decades, mainly for the production of electricity with the
simultaneous development of new combus tion technologies and reducing the costs of mining
and reducing emissions to the atmosphere [12]. The thesis written by A. Lisowski, sensitive to
the fate of Polish mining, fits in with this forecast. In which it is noted with full certainty that
the Polis h reason of state requires a base of strategic areas of the economy and energy security
of country not on import – technology and atomic fuel as well as renewable energy technologies
and not on the further import of oil and gas – but on own large reserves of hard coal and lignite ,
and on the own labour resources offered by society [13].

3. Polish mining in the end of industrial revolution era –
selected aspects
The term "Industrial Era" derives from the worldwide process of "Industrial Revolution",
which ca n be defined by its division into three periods called the First, Second and Third
Industrial Revolutions. The first industrial revolution developed in the period from the late
eighteenth to the second half of the nineteenth century. This period was charac terized above all
by the dynamic development of civilization determined by inventions previously unknown to
mankind. The most important historians include the invention of a steam engine in 1769. This
invention has revolutionized the development of, among others mining. The industrial
development process determined by this invention was called industrialization [14]. The
beginning of the second industrial revolution was turn of the 19th and 20th centuries, during
which time humanity got to know new inventio ns, among them the method of refining crude
oil. Along with this invention, a light bulb built by Thomas Edison and a combustion engine is
created by Rudolf Diesel. The indicated inventions determined further development and
modernization of copper and alu minum metallurgy, the chemical industry – including crude oil
processing – and limited the use of low -calorific coal in transport [15]. Automation and
computerization are two key designations of the so -called the third industrial revolution that
lasted in the last three decades of the 20th century. This period was characterized by subsequent
inventions. They were transistor, semiconductor, integrated circuit, optical fiber. With the
creation of these inventions, the high technology industry and the producti on of atomic energy
developed. In this phase of industrial revolution, natural resources and their convenient location
are losing importance as the key factors determining the allocation of industrial centers [16].
The 19th and 20th centuries in Poland – that is, the second and third industrial revolution – were
the period of dynamic development of mining, which determined the flourishing of other
industries, including railways and metallurgy [17]. The beginnings of the first mines were
characterized by num erous unfavorable actions related to improper management, focusing
mainly on maximizing profits from production, while irrational management of deposits. The
technical condition of the mines in this period was characterized by a very low level of
occupatio nal safety. This was the result of a lack of investment, which with the very large
supply of cheap labor became unprofitable [18]. A radical change in Polish mining takes place
after the end of Second World War. The development of this part of the economy in the then
political and economic system of the socialist state determines the development of other
strategic industrial areas. The discovery, investigation and documentation of hard coal deposits
determines the formation of new mining areas and mines. Po land in the 1970s is in the fifth
position in the world and the third in Europe in terms of hard coal mining. It is also the period
in which the extraction of the raw material is maximized at the expense of work safety, while
attempts to modernize the mini ng industry are made. The new paradigm of the development of
the Polish mining industry brought a change of the political and economic system of the
country, ie the period after 1989. As a result, the more than 20 -year period of permanent
restructuring of the Polish hard coal mining industry led to the rationalization and efficiency of
managing coal deposits located on the territory of the Republic of Poland, so that these
resources would serve the next generations of Poles. The Government of the Republic o f Poland
within its competences and possibilities supports all activities related to the diversification of
energy sources and the search for new opportunities to obtain energy, including hard coal. In
turn, the vision of the development of the Polish hard coal mining industry was based on the
assumption that after 2015 mining will be a competitive sector and successfully operate in the
realities of the market economy, characterized by a high degree of occupational safety,
modernity and innovation of the pr oduction process and low degree of negative impact on
environment [19], as well as the stability and flexibility of employment and work systems,

which will foster the scientific and technological development of mining regions. In this light, it
is worth no ting that large resources of hard coal deposits, which in the past were the basis for
development of Polish industry and guarantor of independence of raw materials and energy,
now becoming a supra -generational guarantee of Poland's independence and energy security
[20].
4. Polish mining in era of knowledge -based economy
As it has already been noticed, along with the end of the industrial revolution, Polish hard
coal mining entered the era of knowledge -based economy in a state of profound organizational
and te chnical changes. The described condition of the Polish mining industry is still evolving,
being determined by two processes – already mentioned several times – a dynamically
developing knowledge -based economy and the Industrial Revolution 4.0. The end of t he
twentieth century introduced a new term, previously unknown, i.e. a knowledge -based
economy. According to the definition of this term, it is assumed that economic development is
correlated with the appropriate use of knowledge. This condition determines the decline in the
influence of such factors as capital and labour resources in the areas of productivity,
competitiveness and efficiency on increasing the impact on the above -mentioned areas of
knowledge in the field of technical sciences, economics, org anization and management. As the
literature shows, relationships formed in this way enable the growth of competitiveness of
economies, which are additionally determined by the following key factors: innovative
technologies and products as well as efficient management. In conclusion, the dynamics of
changes taking place in globalized economies is determined by the resources and modernity of
people's knowledge, the quality of work, education and training, the ability to quickly think
innovative and implement new solutions to production, distribution and services [21]. It is also
the same that the knowledge becomes a key potential assigned to a better -educated unit that
serves as an animator of the development of a knowledge -based society. In parallel with the
process of developing a knowledge -based economy, the paradigm shaping the organizational
and technical functionality of hard coal mining follows [22]. The main determinant of the
process is the change referring to the concept of the "Fourth Industrial Revo lution" commonly
referred to as the Industrial Revolution 4.0. The shortest term can be defined as an advanced
stage of business development triggered by digital transformation, in which value chains,
products, services and business models change [23]. The Industrial Revolution 4.0 focuses on
combining IT models to strengthen their impact. At the same time, it aims to involve people in
the work of digitally controlled machines and the universal introduction of practical wireless
networks and information and communication technologies. The described process is directly
related to implementation of innovative and new technical concepts and technological solutions
into industry, with simultaneous and at the same time wider than before IT and communication
instruments and a new concept of enterprise management. The regularities described above
imply in the enterprise need to redefine production management model. Therefore, the company
moves away from mass production responding to needs of a precisely defined grou p of
recipients for personalized production focusing on needs of a precisely specified customer. As a
result of these activities, the enterprise diversifies production and transition to the method of
production management related to the so -called agile pro duction, i.e. permanent improvement,
immediate reaction, cyclical increase of quality, social responsibility and focusing on needs of
the recipient [24]. The indicated method of management implies numerous new terms in the
environment relating to technical and technological solutions. such as: industrial internet of
things, incremental technologies and augmented reality, simulation and information techniques
using large databases, and systems of their processing, which in reality redefine the previously
binding processes and concepts, shaping the directions of progress and civilization development
based on the knowledge society. Along with these processes, importance of cyber -physical

systems, which perfectly connect computational area with physical processe s, is growing
dynamically. These are, in particular, forms of complex systems and models for monitoring and
controlling physical processes operating in the feedback loop, where physical processes are the
source of data for calculating the object control si gnal [25]. The processes indicated above and
trends shaped on their basis determine a new quality in perception and understanding the future
of Polish mining. Currently, in an increasingly broader cognitive area, the premises leading to
plans to build smar t mines in Poland are formulated, i.e. e -mines. E -mines imply the
possibilities of practical control and monitoring of machines based on IT -communication
solutions. The key tasks in area of application of information and communication technologies
will b e remote and local control, aggregation, transmission, visualization, archiving and data
analysis as well as generating reports. The effect of these activities (e -mine) will be primarily
increase of quantitative and qualitative work safety. It will result from fact that workers staff are
removed from areas threatening human life and safety, in which only machines will be present.
Therefore, the main goal of the e -mine is to optimize the unit production costs, through high
technical and economic efficiency o f technological processes, with the simultaneous striving to
limit the negative impact on the natural environment. The concept of an intelligent mine is
dominated by the belief that the growth of human labor as a result of limiting its participation in
the production process, which will be dominated by analytical skills, is high. Human work will
focus on controlling machines and in subsequent phases of their supervision. The same priority
in the vision of the e -mine was assigned to the knowledge and compete nces of future mining
cadres, whose work will be concentrated mainly in remote control centers and monitoring of
machinery and equipment underground and on the surface [26]. The process described above in
real conditions of the organizational and technical functionality of the Polish hard coal mining
sector is becoming more and more In the vision of a future mine in strategic operations of
Kombinat Górniczo Hutniczy Miedź Polska S.A. (further KGHM S.A.) notes that new
"intelligent" production management tec hnologies and systems based on online communication
between elements of the production process and advanced data analysis are key factors
determining success or failure in business. The scope of tasks related to information
management at KGHM covers the fo llowing issues: analysis and standardization of needs
reported by process owners, standardization of technical solutions ("sensing" of processes),
optimization of resource use (hardware, programming), data quality management (verification,
elimination of d isturbances) and supervision over the processes of generating and distributing
information. Against this background, the key areas of activity at KGHM will be: broadband
data transmission in underground excavations, media monitoring: power supply, ventilat ion,
drainage, location and identification system of machines and people underground, robotization
of production and auxiliary processes and multidimensional analysis of data from production
processes. In conclusion, the ultimate goal in the mine of the fu ture remains to ensure the safety
of the crew. In turn, the way to gain a competitive advantage is a skilful analysis of data, using
the latest solutions in the area of Business Intelligence and Big Data. In this context, it is very
important to ensure t he continuous development of competences and qualifications of KGHM
employees in order to fully use the opportunities created by new technologies. Similarly,
Jastrzębska Spółka Węglowa S.A. (further, JSW S.A.) builds its future pursuing the objective
"Towa rds JSW 4.0." [27]. In accordance with the adopted by JSW S.A. key assumptions tool
determining achievement of the main business goal, which is optimization of efficiency, is the
technological strengthening of entire production process from coal to coke, i ncluding:
exploration of coal deposits, extraction process analysis, online knowledge of extracted coal,
optimal increase of underground work safety, inclusion of all production stages into one model
subject to continuous supply of real -time source data an d construction of analytical and data
mining models. In this context, it can be stated that the economy of knowledge and the

Industrial Revolution 4.0 are key determinants shaping the future of Polish mining, in which the
knowledge accumulated in man will dominate.
5. Summary
On the canvas included in the article theses, carried out literature research and the described
megatrends, it can be assumed that traditional hard coal mining determined by industrialization
will disappear. Many factors indicate that th e process of digitization and automation of mining
will be inevitable [28]. It will lead to the – already -mentioned disappearance of the world in
which the industrial era prevailed and the transition to a time when work, progress, prosperity
will be built on the basis of genius technologies by machines. It seems that a breakthrough
factor shaping the future of this industry – coherent with the knowledge -based economy and the
Industrial Revolution 4.0 is – a vision of e -mine construction. It seems that achie ving the
objective of a smart mine can completely redefine the current mining company's development
model in the direction of moving away from traditional mining "shifts" to permanent
development based on the most modern and intelligent digital solutions s upported by hard coal
mining automation. In this process, knowledge and suitably profiled qualified staff will create
the most valuable resource shaping the economic future of hard coal mining [29].
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