Mining is one of the oldest industries, possibly dating back to the Neolithic (Chalcolithic) times. For the most part, mining has had a significant impact on some of the strongest global economies throughout written history.
As per the statistical estimates, mining makes up 12 percent of the Global GDP, measured as the sum of revenues and products sold. Just like our ancestors, we need mining to fulfil our needs. So will future generations.
Significance of Mining Industry
The global mining industry ensures that adequate raw materials are available for the production of essential daily-use items. From constructing roads and hospitals to building automobiles and houses and generating electricity, mined minerals provide for the many goods and services that consumers enjoy.
It is also crucial for processing some of these raw materials into usable equipment, including aluminium cans, cell phones, and computers.
Mining Industry Today
According to Statista, the revenue of the top 40 global mining companies, which represent a vast majority of the whole industry, amounted to some 656 billion U.S. dollars in 2020.
That shows that despite the ongoing COVID-19 pandemic, the global mining industry has managed to sustain itself. It is one of the few industrial sectors that came out of the pandemic in impeccable financial shape. In fact, the physical restrictions brought about by COVID have forced industry giants to rethink and redesign their modus operandi. Furthermore, the global discussion regarding environmental sustainability has created a landscape for genuine, transformational change in the mining industry.
As can be seen from the total revenue of the mining industry during such unprecedented times, it has the financial standing to move towards long-term value and growth.
Future Of Mining Industry
Despite its financial standing, the mining industry still faces serious challenges to its future growth. The ever-growing population means that the need for minerals as raw materials keeps on increasing. However, semi-old mining practices and the depletion of natural mineral resources have made the entire process much more challenging.
The general trend is shifting towards technology-oriented innovations and practices. Therefore, it is essential to explore what the future looks like for the mining industry.
Going Digital
The rapid evolution of technology has transformed every industry in its wake, for better or worse. The same is the case for the global mining industry. For many years, skeptics have resisted the digitisation of mining processes carried out manually for centuries. However, they fail to understand the benefits that such technological advancements have to offer.
Just like in any other industry, technological advancements in mining processes allow operations to become “smarter.” That is made possible by the availability of digital tools and resources that automate the process, eliminating the risk for human errors.
Historically, the approach towards mineral extraction and processing has always been reactive instead of proactive. With the latest mining technology, digital information through software channels can help rectify issues that arise without the need for human intervention.
In addition, advanced surveillance programs allow continuous monitoring of the mining process. One such cutting-edge digital technology is called the Industrial Internet of Things (IIoT). Experts have predicted that IIoT will be unanimously adopted by major mining companies in the coming years, owing to its unparalleled efficiency. IIoT consists of motion sensors connected to the Internet that allow collecting real-time data of the mining processes. IIoT drastically improves the efficiency of haulage operations and helps cut down maintenance costs.
Pushing for Sustainability and Environmentalism
In the last decade or so, the adverse effects of climate change have been quite imminent. Due to the irreversible environmental destruction caused by human activities, climate change activism is in full force. Environmental accords like the Paris agreement have amassed immense pressure on mining companies to review and improve their practices.
Once again, technology seems to be the solution to this problem. Most of the digital innovations mentioned earlier help in reducing emissions by minimising fuel and water consumption. Furthermore, there is also a need for companies to devise comprehensive waste management plans to ensure that the marine ecosystem is protected.
According to environmentalists, the mining industry should take a step towards concepts like “green mines” and “zero waste mining.” The primary objective of such an approach is to lessen the environmental impact of mining processes and focus more on technology-driven sustainability.
The Takeaway
The future of the mining sector is bright. However, the growing population, coupled with the ever-increasing demand for mineral resources, poses some serious challenges for the mining industry. Fortunately, advancements in technology and the willingness of mining companies to adopt sustainable practices have placed the industry on the right track for the future by providing golden opportunities to enhance efficiency, boost production, and reduce costs, all while creating a safer work environment.
Lastly, the recent mining exploits in the deep sea and outer space mean that the mining industry has more avenues to explore.
