As a world leading manufacturer McQuaid Engineering Ltd. are aware of the global market challenges our customer’s face.
A new report from EY has highlighted some of the main challenges facing the mining and metals industries. Here we take a look at some of the main points:
Mining companies are hoping to utilize new digital technologies in order to improve productivity and increase profit margins. However, the implementation of these new technologies brings forth a number of challenges – the foremost being their effective incorporation into the working aspects of the business.
New World Commodities
Mining companies will need to ensure that they maintain the right mix of new and old world commodities in their portfolios, with an increasing focus on renewable energies in other sectors – this disruption could have a massive impact on future demand for other commodities. A particular relevant example given is how the end of petrol cars will have a substantial bearing on the demand for platinum as almost half of all platinum produced globally is used in catalytic converters to minimise diesel pollution. On the other hand demand for cobalt, lithium and nickel should increase as the demand for battery storage rises.
Governments and their regulatory bodies are seeking greater control over and return from their natural resources. New laws and licencing requirements mean that companies need to keep up to date with and maintain open and transparent communications with all levels of government and their regulatory bodies.
Social Licence To Operate
Mining companies have invested heavily in sustainability and community initiatives in order to gain a ‘social licence to operate’ in their strategic locations. Moving forward operators are encouraged to take a strategic and collaborative approach to sustainability, alleviating environmental accidents and prioritising employee safety.
Optimisation Of Energy
With the cost of energy increasing for many mining operators, the effective optimisation of energy could reap significant cost savings. Mining operations in more remote areas have unique challenges in developing, maintaining and operating stand-alone power systems. In order to reduce costs and ensure supply, companies are choosing to use a mix of energy sources — fossil fuels, hydroelectricity and renewable energy.