Mat Matthews CEO CONUNDRUM AI

What opportunity did Conundrum AI see in the market for launching its software?

In the world of advanced process control (APC) software, Traditional APC suppliers offer solid platforms based on linear control, which does not quite fit the unpredictable and nonlinear challenges found in industries like mining and cement production. Traditional APC systems merely alert operators when parameters go off track, leading to prolonged downtime while the teams analyze reports and try to fix the problem. Simply put, if a change is made in a single area, like crushing, it can take up to 7 to 12 months to re-optimize the entire plant due to a cascade effect.

Our solution, however, is adaptative and fully closed-loop, constantly adjusting and re-optimizing the plant's performance in real-time. For example, in one of our client's plants, the whole process control is autonomous our platform is changing 300 setpoints every 10 seconds and 5000 tags per minute, which resulted in an additional $100m revenue in 2023. By autonomously controlling plant processes, we open up endless possibilities for plant managers to choose their goals. For example, if commodity prices shift in one direction or another, a plant could change its goal (decreased energy usage or increased recovery) and see the results in 40 minutes, not 6 months. This makes plants, plant managers and companies in the industrial sector far more adaptable to changing conditions. This adaptability means that our platform can automatically change goals without manual intervention. In which countries does Conundrum operate?

We are based in the UK, but today, we operate in Australia, Peru, and South Africa, and we are expanding into new regions, with three new projects in Saudi Arabia, especially in the cement sector. What sets us apart is that we are currently running the world's only autonomous process control plant. In 2021, we started working at one of the largest nickel mines, making their process control fully autonomous, covering the entire operation and increasing annual revenue by US$100 million. On the other hand, during a pilot phase, we demonstrated a potential increase of US$31 million due to grinding optimization at a large copper plant in Peru. It is not just about talk, but about demonstrating our capabilities in real-world production. We have been proving this for the last four years, as our platform has been in production. How can we improve sustainability targets?

Clients in Australia are focusing less on ramping up production and more on energy optimization, trying to maintain output while reducing diesel and electricity use. Many of their plants are remote, running entirely on diesel that must be trucked in at a high cost. Our focus there has been on reducing energy use. If we can cut down kilowatts per hour of diesel consumption, it will extend their reserves and lower their operating costs. We are seeing an energy saving of between 2% and 6%.

We are also investing millions of dollars in improving our platform, especially in addressing the needs of industries like cement. People often underestimate how advanced those operations have become. Unlike other products, cement has a fixed market price, so boosting profits means finding ways to lower expenses. That is where we come in helping them optimize operations and control energy use, directly impacting their bottom line.

Something we are working on that will greatly benefit the sector as a whole is automated carbon credit reporting, allowing plants to track and bill for reduced emissions instantly. For these companies, it is no longer just about throughput; their main concern is energy efficiency. Now, they are focusing on metrics like "How much less energy did I use today compared to yesterday?" or "How much did I save this month versus last month?" It is all about tracking sustainable improvements over time. What is one of the biggest challenges to implementing your solutions, and how do you overcome it?

Skepticism. Plant operators who have managed systems for decades often react with disbelief, thinking, "I don't believe you; I have been running this plant for 20 years. This won't work". However, our technology is only as effective as the data it receives without quality data, we cannot operate effectively.

To overcome it, we typically engage in a three or four-month pilot. We install our lightweight platform, operational within two weeks, and begin optimizing based on the client's goals, such as reducing energy or increasing recovery. After an eight-week test with their equipment and materials, they can see firsthand the results, which usually leads to a license purchase. For example, at a very large Copper mine, we ran a year's worth of data from their grinding mill through our platform, and we demonstrated that, if Conundrum had been used, they could have achieved an additional 527,000 tons in throughput, translating to US$31 million in revenue. What is Conundrum's outlook for Saudi Arabia?

In mining, KSA is still in the early ages and mainly focused on exploration, so we have yet to have a mine implement our platform from the concept stage, though it would be ideal. Most of the metal mining operations are relatively small in scale. In contrast, Saudi's cement sector is massive, and the demand for cement over the next 20 years is expected to be among the largest globally.

Additionally, Saudi Arabia's vision for AI aligns well with our platform they aim to lead globally in industrial AI, and their cement demand needs increased production alongside energy efficiency. We are confident we can achieve a potential 7% reduction in energy consumption in cement plants, with a potential reduction of natural gas consumption of up to 30%.

All in all, Conundrum's vision resonates deeply with Saudi Arabia’s AI-led transformation. The mining sector is pivotal to Saudi Arabia's economic diversification goals, aligning with the Kingdom's aspirations for increased efficiency, sustainability, and technological self-sufficiency. By integrating AI to optimize energy use and reduce emissions, we aim to directly support the Kingdom’s environmental sustainability targets and projects within Vision 2030, such as NEOM and SPARK.

Our AI-driven platform is designed to improve process efficiency and unlock value from industrial operations core to Saudi Arabia’s drive for economic modernization and resource optimization. As a partner, Conundrum brings cutting-edge expertise in AI for industrial automation, enabling Saudi companies to lead in efficiency and innovation on a global stage. Together, we can help fulfill the vision of a tech-enabled Saudi Arabia that leads the world in sustainable industrial advancements.

Saudi Arabia seeks to leverage AI to create high-tech jobs, attract foreign investment, and grow new tech industries within the country. Through AI, the Kingdom aims to boost sectors like smart cities, energy management, and sustainable practices Conundrum actively empowers these goals in the industrial sector.