Five hot trends likely to dominate mining industry in 2022

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Highlights

  • The mining industry is responsible for almost 4-7% of global greenhouse emissions.
  • ESG has become a hot topic for the mining industry, thanks to investors and shareholders’ increasing attention.
  • Digitisation can play a significant role by offering new possibilities to increase operational excellence and productivity.

The global metals and mining industry made an impressive recovery in 2021, witnessing groundbreaking success. Commodity prices reached multi-year highs during the year recouping from the lows of the pandemic.

As per McKinsey & Co’s January estimates, the mineral industry is responsible for almost 4-7% of global scope 1 and 2 greenhouse emissions. However, it aims to become more sustainable, efficient, and reliable in the future by implementing high-end technology, digital transformation, and automation. The proposed transformation will help miners to make the entire value chain more efficient, cutting significant cost runs and emissions.

GOOD READ: Take a look at the top 10 global renewable energy stocks

Against this backdrop, let's look at five trends and opportunities for the mining sector in 2022.

1.    ESG (Environmental, Social and Governance)

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Sustainability has become one of the essential prerequisites of every industry. ESG has become a hot topic for miners. Currently, investors are looking beyond the company's financial statements and intend to consider the culture of a mining company.

Many mining giants have already taken a bunch of significant steps to improve their ESG performance, and this trend is here to stay, not just in 2022 but in the future as well.

2.    Decarbonisation

The global transition to a low carbon energy system has provided a vast opportunity to the mining sector as the demand for minerals is expected to remain high to attain energy transition. With demand for minerals on the rise, mining operations too are bound to increase. To achieve net carbon neutral objective by mid-century, miners will have to reduce their emissions.

MUST READ:  Four sustainability trends as green transition heats up

3.    Mining Automation

Mining automation means removing human force from mine sites and implementing automation software and processes. The process of automation will help miners attain high operational efficiency, better safety, and improved working conditions. This will also help miners deal with ongoing labour shortages across the industry.

4.    Big Data in Mining

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Implementation of Big Data analytics could play a vital role in driving better utilisation of assets, enhancing productivity, and addressing delays in material flows in a competitive market, where operational intelligence is necessary. Big Data helps monitor each mining activity on a real-time basis effectively and plays an essential role in achieving better decision making.

Must Watch: How has digitization helped the Mining industry? | Expert Talk with Mr Alex Goulios

5.    Digitisation in Mining

A significant decline in ore grade coupled with volatile commodity prices and rising safety concerns is pushing miners to improve operational excellence and embrace technological innovations. Digitisation can play a significant role by offering new possibilities to increase operational excellence and productivity while meeting the rising expectations of stakeholders.


 


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