Land Mining

Industries / Mining

The mining and metals industry is recovering from its most challenging period in decades. Cutting costs, achieving automation, and improving operational efficiency are critical.


In order to achieve energy transition, it is expected that the demand for most mineral products will be high. Although fossil fuels have improved the living standards of people around the world since the 18th century, the greenhouse gases they emit have contributed to global warming.

 

In order to avoid the eventual catastrophic impact of rising global temperatures on the planet, countries must decarbonize their energy systems in the middle of this century. Since the energy transportation system with low carbon emissions is more intensive in minerals than the energy transportation system based on fossil fuels, this energy transition presents huge opportunities for the mining industry. At the same time, the mining industry must also reduce its own carbon emissions. The mining companies most likely to sell low-carbon, high-quality mineral products use renewable energy to produce, operate electric or hydrogen-powered trucks, and integrate the circular economy into their value chain.


Enterprises need to enter remote mining areas. As the world-class mineral resources in low-risk areas have been exhausted, mining companies must master new mining and processing technologies, or venture into remote mining areas-the previous economic conditions could not meet the requirements of mining in these areas. Automation and digitization will lead to more targeted and efficient mining technologies.


Investors are increasingly interested in higher-risk mining areas. When looking for high-quality mineral deposits, governments and companies are increasingly exploring deep sea beds and asteroid mining areas. Although these technologies will open new paths for mining companies to maintain stable prices of existing resources or have the right to acquire new resources, for them, business models, business processes, and potential social and environmental externalities are entirely new areas.


As mining companies try to control risks, new financing and production models will become more popular. In order to diversify the risks of new capital-intensive projects, companies may continue to develop these financing options. Like the oil and gas industry, joint ventures can be developed to reduce their risks to a specific project or in a specific mining area, and service agreements can also be considered.