Key Challenges Facing the Mining Industry in 2022

Metals and Mining Review | Monday, September 05, 2022

The shift toward renewable energy sources has increased the demand for the metals and minerals needed for production and storage equipment.

Fremont, CA: In 2020, the mining sector made a strong recovery from the recession, and in 2021, the upswing continued. This path is not without difficulties, though. In addition to the current barriers, new ones will need to be overcome by businesses. In order for companies in the mining sector to maintain their growth pace in 2022, they must address the following issues, and connected worker technologies can provide a solution:

Climate action

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The majority of mining businesses will prioritize environmental preservation in 2022. The sector's adverse effects on the environment are well-known. Climate activists and other stakeholders are putting pressure on miners to cut carbon emissions and lessen their impact on local populations and nature. Some of the major miners in the world promised to reach net zero emissions by 2050 or earlier, according to a statement from the International Council on Mining and Metals. For a sector of the economy that mostly depends on traditional resources, the timescale is intimidating. In order to achieve sustainability, miners need to identify the best options.

Demand uncertainty

The shift toward renewable energy sources has increased the demand for the metals and minerals needed for production and storage equipment. Miners must find funds, obtain a license to operate (LTO), and develop plans to deal with supply chain difficulties.

The potential presented by the energy transition is offset by the threat of substitutes brought about by technological improvements. Projects with long lead periods are dealt with in the mining business—both the demand for commodities and the energy trends change over time.

Technology and innovation

Technologies in mining that use artificial intelligence, data science, and automation are developing quickly. This sector is likewise embracing blockchain technology. These technologies produce initial responses to operational problems. To promote innovation and build future mines, miners must integrate these technologies. Instead of simply installing technology solutions for transformation, they need to identify use cases for them.

Employee opposition to using new technology will undoubtedly exist, especially in sectors outside the digital sphere. A digital initiative's success gets determined by user adoption. Before starting a project, miners should create a change management strategy.

Operational costs and productivity challenges

Due to rising shipping costs, decarbonization initiatives, and input costs, miners are battling challenges to their profit margins. To ease the burden and increase profitability, they must increase productivity and cut operating expenses.

A substantial amount of mining activities have been mechanized thanks to digital technologies. Frontline employees weren't affected by mine's digital transformation efforts, though. Their digital ecosystems can get complimented by taking advantage of this disconnect.

Front-line technicians use paper forms in mines to record data, record work orders, and provide instructions and manuals. Unfortunately, these manual procedures allow for mistakes and inefficiencies, which reduces production.

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