When it comes to the mining industry, there have been many historic highs and lows. Although the mining industry has been enjoying strong and stable commodity prices in recent years, vigorous change seems inevitable. But, does that mean that mining companies are ready to accept and learn the lessons from their past? Are they prepared to effectively react with the changes in order to succeed in a new environment? These two questions need to be given great consideration as the coming years will determine which companies remain successful and which companies are not able to handle the pressure. This post looks at the top 10 trends in the mining industry. In order to thrive in the mining industry of today, companies need to act fast and capitalize on new opportunities. The traditional mining model has become outdated and it is about time that change becomes the new norm.
The digital revolution has seen explosion in just about every industry. The operational realities are shifting and the top 10 trends in the mining industry have to be taken into account. This post will help you keep a track of the latest trends to transition in the new digital world and to anticipate any possible disruptors. It is up to you to turn the disruption into an opportunity. But, a long-term view is crucial for assessing how these emerging market trends will impact demand for certain commodities. So, what are you waiting for? Let’s find out what the 10 trends impacting the mining industry actually are.
- Social Investor
As global warming picks up pace, more and more consumers around the world are becoming aware of the effects of the mining industry. This is why it is more important than ever before for corporations to incorporate social values into their mission and vision statements. The rise of social investor is making headways. Hence, in order to succeed, mining corporation need to ensure that they follow social values into their projects for society to benefit from such projects as a whole.
- Partnership & Joint Ventures
Another popular trend in the mining industry that has to be considered is partnership and joint ventures. More mining corporations are choosing to partner with local corporations or joint ventures to make profits. It helps reduce the risk of going at it alone. Thus, it might be a good idea to consider partnering with a local corporation near the anticipated project. Many companies are looking to take advantage of such opportunities to collaborate and bring their separate expertise with them.
- Brining Digital to Life
In the past, mining corporations were measured by how well they extracted resources. However, the mining industry has seen a shift towards value proposition that is how well a mining corporation acts based on available information in order to optimize production, improve safety, increase efficiency, and reduce costs. Data is leading this change. It provides businesses with the ability to process, manage, and organize information. Thus, it is a competitive differentiator. To succeed, one must have a clear vision of how to incorporate digital aspects into the core mining process to achieve transformation. Information needs to captured and analyzed to optimize mining systems and catering to the customer.
- Accomplishing Innovation
The mining industry has various innovation barriers which need to be overcome to succeed. The reason why it has become necessary to overcome innovative barriers is because for decades, the design of processing plants and mines had been the same. Despite the fact that commodity prices have slowly recovered, many top mining executives have a fear of another downturn on the horizon. Hence, they are over-cautious and restrained when it comes to innovation. It is vital that steps are taken to achieve innovations. Corporations need to use more innovative processing plants and machines such as the JXSC Machine and other machines to boost productivity.
- Future of Work
As corporations go digital, the nature of work is also changing significantly. Automation will replace repetitive human actions and autonomous equipment will improve safety and reduce labor intensity. Artificial intelligence will help workers increase productivity and to work more efficiently. Such changes will support a more inclusive and diverse workforce.
- The Idea of Mining
Although the mining industry has contributed heavily to the world’s economy, it still has a tarnished reputation in many countries as people continue to have a perception that mining leads to environmental damaged. This has a negative impact on the mining community and how they engage in practices abroad. Social media influences the world around the clock. Therefore, if there is a backlash, it would only be further fueled against mining activities. It would force mining corporations to take proactive steps in order to change and address their reputation. Thus, there would be an increase in PR investment.
- Transformation in Stakeholder Relationships
To ensure greater environmental protection, improved infrastructure and to meet the demands of the public, tax revenue would need to be increased. Many governments around the world are only going to continue putting pressure on the mining industry. This will result in mining corporations facing great obstacles to investment which could be in the form of local demands, tax rules, and other challenges.
- Water Management
There has been a decline in ore grades and in order to extract a similar quantity, more water is required. This has led to a greater demand for water by the mining industry and the available supply of water is not sufficient to offset the growing demand. As the risk of water scarcity increases, mining corporations have to be better at water management.
- Change in Shareholder Expectations
There has been significant change in shareholder expectations. Mining corporations have started to focus on improving their credibility when it comes to the investor community. Thus, a higher degree of financial discipline is crucial.
- Commodities for the Future
In order to effectively decide which commodities one has to invest in and which ones to get out of, mining corporations have to actively monitor the changing demand for commodities to continue operating in the future.