Mining is a challenging business. Mines are a large, complex and risk-laden industry. So, it’s no surprise that the mining industry is facing complex challenges from all directions. If the mining companies and shareholders do not want to be left behind and want to be sustainable, not only they have to face and address these challenges but they also have to make it a priority.
Here are the 7 major challenges that need to be addressed and mitigated by the mining industry:
- Environmental
Mining is known to have a significant impact on the environment. Even though mining has advanced the economy and society of local communities, the environment as a place to live needs to be considered. Mining companies need to make efforts to mitigate environmental problems and leave a positive legacy that lasts long after mining operations end.
- Health & Safety
Mining is a risky business in terms of the health and safety of employees. Toxic gasses, severe heat, and geological instability that can result in cave-ins. The chances of accidents also rise while operating complicated and heavy equipment in such a high-stakes environment. Consequently, mining companies have to place safety technologies as their investment priorities.
- Uncertain Demand
Energy trends change over time and so does the demand for commodities. For example, the world is now moving towards renewable energies, gradually increasing the demand for metals and minerals required for battery storage and electric vehicles. So, the mining companies have to be built as a flexible business that can deal with fluctuations from unstable prices, uncertain demands, and the threat of product substitution.
- Constant Innovation and Technology Change
Innovation and technology is a source of constant challenge and change. In mining, Artificial Intelligence, data science and automation technologies are evolving rapidly. Mining companies need to keep pace and keep investing in innovation and technology where the efficiency and productivity gains are proven. They need to integrate these technologies in each of their operational aspects to drive innovation and create mines of the future.
- Maintenance Skill Workers
Mining companies are the focus must be on an inclusive culture with solid career paths open to everyone. And this means improvement in working conditions, benefits, culture, and training. Mining companies need to overhaul their training process to make sure the young workers do their jobs correctly.
- Operational Costs and Productivity Challenges
Mining companies are facing increased shipping costs, decarbonization programs and input costs. They need to improve their productivity and reduce operational costs to boost profitability. Digital technologies is one of the solutions. By creating a digital ecosystem, mining companies will eliminate barriers to excellence and increase profitability.
- Geopolitics
Colder relations between the West and China, the war in Ukraine, and European Union instability have all directly and indirectly affected the mining sector. These geopolitical tensions lead to a decline in demand for new investments and, therefore, the demand for raw materials. Mining companies will need to be proactive in dealing with geopolitical issues. This will require a multi-faceted approach that actively engages with suppliers, governments, and trade bodies to ensure that the long-term supply chain is sufficiently robust.
