Leveraging AI for Improved Contracting and Procurement in Mining - SME Annual Meeting 2025

Ensuring effective management of contractual processes is essential for maintaining profitability and operational efficiency in mining. However, due to limited capacity and resources, sites often struggle to manage these processes effectively, leading to oversights and financial losses. Recent advancements in Artificial Intelligence (AI) offer promising solutions to these challenges. Large Language Models (LLMs), like those powering ChatGPT, now enable machines to understand unstructured data like contracts. These can therefore be applied to address these challenges by taking some of the heavy lifting off of humans. In this paper, we analyze a real-world case study of the application of LLM tools for preventing a $400k contractual issue on an underground gold mine in Western Australia. We provide a gap analysis of the failure modes in existing processes that led to the issue. We then describe the application of LLM tools to flag it early and facilitate a collaborative solution between the operator and the supplier. This includes a comparative analysis of base case vs LLM case to evaluate the impact on project cost and time. Finally, we discuss how the integration of AI can foster improved relationships between clients and contractors across a broad range of potential contractual applications, allowing the time required for collaborative and proactive problem solving.