Major Challenges the Mining Industry is Facing

Major Challenges the Mining Industry is Facing

The mining industry plays a vital role in the global economy, supplying important resources for several sectors. However, this industry worldwide is also facing some complicated challenges. Environmental and climate change pressures, geopolitics and trade wars, changing and uncertain demand, changes in technology, mantainence skill shortages worldwide are just a few examples. Dealing with such challenges should be the primary focus when it comes to the long-term sustainability of mining.

Shareholders, as well as the mining companies, must face these challenges head-on. If not, they will be left behind in the high-pressure mining sector. Even though such challenges are substantial, they also present opportunities for efficiency improvements, innovation, and long-term success. Here are a few major challenges that must be tackled by the mining industry.

1. Health & Safety

Regardless of whether it is open ground or underground, mining is a dangerous business when it comes to the health and safety of workers. This industry has always been this way. The dangers have not changed much over the years and won’t change likely in the future as well. But, at the current time, the industry has a fresh approach to deal with the likelihood of risks i.e. connectivity and digitalisation. A very good example is geo-location tools that help businesses learn the instant physical location of the employees underground in relation to risks like gases and large vehicles. Numerous companies are working hard to develop electric trolley systems that will be ideal for replacing loud and high-emission diesel systems.

2. Quality and Scarcity of Resources

Another major challenge faced by the mining industry currently is that there are very few ore deposits remaining to develop. The new ones exist primarily in remote as well as tough-to-access areas. As a result, the lead times, costs, and risks linked with developing and operating new mines are consistently on the rise. Plenty of current mines are starting to mature, leading to the extraction of ore grades that are actually lower.

Finding new resources is becoming very tough since the majority of accessible and top-quality resources have already been mined. Businesses are facing more pressure in regards to accessing deep and remote resources, which can indeed lead to an increase in mining costs and make it very challenging to extract resources.

3. Shortage of Skilled Labour

The shortage of well-trained and skilled labour is also a concern for the mining industry. This includes mining geologists, project designers, and engineers. A very large percentage of the industry’s workforce is known to be ageing. Although experienced workers might have deep industry knowledge, most of them are uncomfortable with adjusting to digital innovations and partnership work.

The younger generation is familiar with digital technologies but might have very little knowledge of mechanical-physical operations and be less compliant with standard corporate hierarchies. The shortage of skilled workers to take on complicated mining jobs puts a lot of pressure on current staff to do more with less, negatively impacting employee productivity and leading to an increase in the costs of retaining current talent. Even the best civil construction company in Brisbane can face such challenges.

Wrapping Up

It is a fact that the work for mining companies is becoming increasingly difficult due to the challenges mentioned above. However, if they can find a way to tackle such challenges, it will be easier for them to achieve their goals.