Digging deep to support sustainable mining

New York Times columnist Thomas Friedman is known for proclaiming we’re in the middle of three climate changes, but only one is environmental. The other two, he says, are globalization and technology.

Digital transformation and new technologies offer mining companies golden opportunities to become more efficient, boost production, and cut costs while making the work environment safer. Especially now, as governments navigate the blame game and economies reopen after the initial wave of the COVID-19 pandemic, the global climate seems to be shifting from interconnected to interdependent. Decreased commodity prices, market volatility, continued regulations, geopolitical risk, shifting consumer sentiment, and public perception of the mining industry are impacting its brand and future.

At the same time, citizens in societies around the world are adapting to an operating climate filled with a dizzying number of technological innovations, many of which can influence both profit and purpose in the mining industry.

Mining faces a brand challenge with markets and millennials

The top 40 global mining companies were faring better in 2019 than the previous five years in terms of revenue and productivity, dividends, capital developments, operational excellence, reduction in impairments, and debt repayment. But the markets—and millennials—don't appear to like mining. Investors and stakeholders carry concerns about vital issues such as safety, the environment, technology, and consumer engagement. And as the baby boomer generation retires, a new wave of talent—a technology fluent generation—needs enticement if its members are to fill mining industry roles.

The mining industry should focus on being a fundamental builder of economic and societal capital and sustainable value and use that position to move away from the brand perception of mining companies as unsafe, unethical excavators that pose environmental risks. This requires both digitization and democratization.

We’ve identified three critical areas of attention to help the mining industry evolve and thrive in the future: embracing openness and collaboration, enabling integrated and intelligent workflows, and embedding culture and skills.