A

Mini Project
Report
On
Mining Industry
A detailed study done in
“Mining Technologies”

Submitted In Partial Fulfilment for The Award of Degree

Master Of Business Administration

RTU Batch “2021-2023”

Semester-II

RAJASTHAN TECHNICAL UNIVERSITY

Submitted By: - Submitted To: -

Vanshika Vijay Dr. Bhumija Chouhan

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Acknowledgement

I express my sincere thanks to my seminar report guide, Ms. Bhumija Chouhan

for guiding me right from the inception till the successful completion of the report. I sincerely
acknowledge him/her/them for extending their valuable guidance, support for literature, critical
reviews of the report and above all the moral support he/she/they had provided to me with all
stages of this report preparation.

(Signature of Student)

Name of the Student

Vanshika Vijay
Mba Semester 2

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 TABLE OF CONTENT

CONTENTS PAGE
NO.
Objectives of the study 4

Introduction about mining Industry 5-10

Key emerging technology trends 11-24

Types of technologies and their applications 25-27

Trends of technological adoption globally 28-30

Impacts 31-41

Top trends and opportunity 42-45

Conclusion 46-48

Reference 49-51

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 OBJECTIVES OF STUDY

Functions & Objectives

The main objective of the Department is to scrutinize and accord sanction for
the implementation of the plans/schemes/policies related to the critical task of
(a) Geological investigation/exploration of minerals
(b) administration of mines and minerals by the Directorate of Mineral
Resources.
The main activities of the Directorate are:-
• Systematic exploration of mineral deposits for preparing mineral
inventory.
• Development and conservation of minerals.
• Encourage value addition of minerals through promotion of mineral
based industries.
• Strengthen mineral administration.
• Enforcement of mineral laws and rules.
• Collection of royalty/cess to generate revenue.
• Ensure scientific mining, safety & welfare measures.
• Contribution by way of Grant-in-Aid and share capital to the Meghalaya
Mineral Development Corporation (MMDC) for mineral development
activities.

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 INTRODUCTION

Technological advances in the mining industry are an integral part of the Fourth
Industrial Revolution (WEF, 2017), characterized by more productive machines
and automation of certain operational tasks, digitization, greater and faster
connectivity, and the application of intelligent networks across all parts of the
value chain.
We expect mining processes to be smarter, leaner, more efficient and more
flexible in terms of employment, and arguably more sustainable. Technological
innovation has accentuated the growth in productivity and efficiency on a scale
never before experienced.
It has an immense potential to increase global incomes and the quality of life of
many people across the world (Schwab, 2016). At the same time, it raises
legitimate concerns of deepening inequality and potential labour market
disruptions, owing to the looming jobless growth caused by labour-substituting
technologies (Brynjolfsson & McAfee, 2014).
Although technological innovation is nothing new, the mining sector has yet to
experience the type of disruption already faced by other sectors like
manufacturing, telecommunications, and finance. What is different today is that
the type and pace of change are occurring at a speed and scale never seen
before (Schwab, 2016).
What is potentially game-changing is that these dynamics will not only radically
transform the face of the mine. They will profoundly transform the way people
live, work and relate to machines and to their workplace (Marr, 2018).
More fundamentally, it will revolutionize the established relationships between
the industry (mining, suppliers) and host countries (governments, local
communities, other non-state actors etc.) (WEF, 2016b).
Only a handful of business or government leaders are currently focused on
anticipating and understanding the extent of opportunities and challenges that
such systemic changes are expected to bring.
More worryingly, even fewer are thinking and designing sustainable solutions to
embrace opportunities and manage the likely negative impacts.

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Unaddressed, the increased adoption of disruptive technologies can pose a
major social and political risk in host countries and can threaten mining
companies’ social licences (Conference Board of Canada, 2018).
Managing these dynamics will require more than a focus on technological
innovations. It calls for new approaches and enhanced partnerships to leverage
the best of artificial intelligence and the best of human intelligence.

This compels a holistic approach to transformation, which will need to be

designed, implemented and monitored by a range of actors, working collectively
to:
i)Mitigate the potential negative socioeconomic impacts of the various types of
technologies.
ii) Take advantage of new opportunities unlocked by technological innovation to
create more value.
(iii) Work together to adapt capabilities and skills of the labour force and other
economic actors to adapt to modern technologies.

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 (iv) Adapt the institutions and policy environment to foster partnerships across
industries (among mining industries and between mining and non-mining
industries), between the mining industry and the local communities and
between the mining industry and public authorities, to manage the transition
together and better capture potential opportunities.

The U.S. mining industry consists of the search for, extraction, beneficiation, and
processing of naturally occurring solid minerals from the earth. These mined
minerals include coal, metals such as iron, copper, or zinc, and industrial
minerals such as potash, limestone, and other crushed rocks. Oil and natural gas
extraction (NAICS code 211) is not included in this industry. Metals and other
minerals are an essential source of raw materials for the U.S. building and
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chemical industries and are also a critical part of the production of everyday
electronics and consumer products. For example, over 65 different minerals are
required to produce a modern computer. Furthermore, coal accounts for nearly
50% of electric power generated in the United States. 1

ECONOMY

In 2006, the U.S. mining industry produced shipments worth $78.65 billion
(excluding oil and gas).2

GEOGRAPHY

The mining industry plays an important role in all 50 states. In 2009, an

estimated 1,400 mines were operating in the United States.1 As a supplier of
coal, metals, industrial minerals, sand, and gravel to businesses, manufacturers,
utilities and others, the mining industry is vital to the well being of communities
across the country. The map below shows a distribution of types of mining in
the United States.

PRODUCTION AND SUPPLY

The United States is the world's second leading producer of coal, accounting for
nearly 17% of world production. About 1 billion tons of coal is produced annually
in the United States.1 The United States is also the world's leading producer of
beryllium, soda ash, and sulphur, and the third largest producer of gold and
copper.1 In 2006, the U.S. mining industry processed 1,162.8 million tons of coal,
59.4 million tons of metals, and 3,128.9 million tons of industrial minerals.

Minerals are mined either underground or through surface methods like open-
pit mining. Approximately 66% of coal and 97% of non-fuel minerals are
extracted through surface mining methods. Both mining methods go through a
process involving three general stages. The first stage is extraction, which
includes blasting and drilling to loosen and remove material from the mine. The
second stage is materials handling, which involves transporting the ore and
waste from the mine to the mill or disposal area. The third stage, beneficiation
and processing, occurs at the processing plant. This stage recovers the valuable
portion of the mined material and produces the final marketable product.
Beneficiation operations primarily consist of crushing, grinding, and separations,
while processing operations involve smelting and/or refining. Each of these
stages is dependent on large amounts of energy from varying sources, including
electricity and diesel fuel.

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ENERGY

The mining industry consumed an estimated 551 trillion British thermal units
(Btu) in 2002.3 Major energy sources include fuel oil, electricity (purchased and
produced on-site), coal, and natural gas. The energy-intensive nature of mining
is evident by the recovery ratio of the various materials being mined. Coal, with
an average recovery ratio of 82%, requires the mining of 1.2 tons of material to
recover 1 ton of coal. Industrial minerals have an average recovery ratio of 90%,
while metals have an average recovery ratio of 4.5%. Thus, to recover 1 ton of
metal, 22 tons of material will need to be mined.

MARKETS

Minerals are essential to nearly every aspect of our lives and our economy. Key
markets include utilities, the primary metals industry, non-metallic minerals
industry (glass, cement, lime), and the construction industry.

EMPLOYMENT

Mining operations are often the leading employers in the communities where
they operate. More than 500,000 people work directly in the U.S. mining
industry.1 The industry also indirectly supports an additional 1.8 million jobs in
manufacturing, engineering, and environmental and geological
1
consulting. Each coal mining jobs provides an additional 3.5 jobs elsewhere in
the economy, and coal miners make an average of $73,000 annually. 1

1. National Mining Association

2. Annual Survey of Manufactures, U.S. Census Bureau
3. Manufacturing Energy Consumption Survey.

History:
The mining industry can be dated as far back as 41000 BCE, to a mine in
Swaziland. The mine, called the Lion Cave, is where natives mined hematite to
produce ochre, a red pigment. Other mines found that existed during the same
time frame were flint mines, which humans used for tools and weapons during
the time.
The Ancient Egyptians developed quarry mining about 4,000 years ago in order
to find gold, rock, and other ores that they needed. The Romans and Greek
used similar techniques as the Egyptians in later times but further advanced

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how water was used in mining, as well as removed from mining pits, with the
use of aqueducts.
In the medieval times, demand for metals such as iron, copper, and bronze
further advanced the mining industry. This demand needed new techniques;
including using pyrotechnics to blast away rock and earth to speed up the
extraction and discovery of ores.
Mining eventually became very prevalent in the Western Hemisphere in the
19th century. The industry has continued to shape the lives of people who are
often pulled from one location to another by the promise of work. Entire
communities and towns have sprung up as a result mining opportunities.
Leaders:
Mining consists of two operations: exploration for the sought after resource,
and the actual mining process. Exploration is typically handled by smaller
companies or individual entrepreneurs. Mining is done by very large,
sometimes multinational, companies due to the fact that establishing a
modern day mine requires significant capital. Some of these big industry
leaders include Alcoa, which produces aluminium, and ArcelorMittal; as well
as BHP Billiton, Vale, and Angelo American, which are all diversified mining
companies.
Trends:
Technology has come to play a greater role in the industry, making way for
better safety measures and reducing the amount of workforce needed for a
job. The steel industry has especially benefited from this, with some
companies reducing manpower by up to 90 percent.
Environmental effects have long been a concern for this industry. Many
countries require mining companies to follow strict environmental guidelines
to prevent erosion, sinkholes, groundwater contamination, and loss of
biodiversity. There are provisions pertaining to the rehabilitation of the land to
either its former or better condition. Gold mining companies often operate in
fragile ecosystems, leading to charges of demand to the environment and the
displacement or abuse of native populations. Environmental impact should be
monitored in the near future since several national leaders have pledged to
protect the environment, especially after the conference in Copenhagen where
many of these issues were discussed. China, long maligned for their lack of
regard for the environment, is now looking to decrease the carbon footprint by
their steel mills according to their most recent five year plan.

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Trade laws and international competition create a great deal of friction in the
industry. Companies such as South Korea’s POSCO and Japan’s Sumitomo-
Nippon Steel, two leading steel producers, export many of their products to
countries such as the United States, where unions and steel companies
complain of illegal dumping by offshore steel producers.
Recently there has been a large focus on rare earth metal mining due to ever
advancing technology. The term rare, hints more at the difficulty of mining or
extracting these metals than their actual abundance in nature. Their extraction
ironically is being helped by newer technologies, exactly what they are needed
to create and improve. China is the lead producer of rare earth metals,
controlling 97 percent of production.

KEY DRIVERS AND BARRIERS OF TECHNOLOGICAL CHANGE :

Globally, the mining industry has lagged behind other industrial sectors in
embracing major technological innovations (EY, 2017b). While production
techniques have modernized over time, the changes have not been
fundamentally disruptive. In recent years, there has been a noticeable change
in approach, in part to catch up with other industries, in part because it has
become a business imperative, but more fundamentally because rapid
innovations in a variety of fields—such as GIS, artificial intelligence, cheap
sensors, 5G wireless, big data processing—have suddenly allowed for cost-
effective synergistic applications in ways that are revolutionizing the way mining
is done.

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KEY DRIVERS OF TECHNOLOGICAL CHANGE

The following are key driving factors of technological innovation in the mining
sector:
i. Reducing Risks to the Health and Safety of Workers:
Some mining operations can take place in extreme environments and/or in
distant locations McKinsey and Company (2018). Moving operators to the mine
face (whether by flying them in, moving them underground, or from shaft to
face) is time-consuming, expensive and can be dangerous for workers’ health
and safety. Therefore, any technology that can minimize the presence of
workers at complex and deep mining operations or at remote locations will
contribute to improving their safety conditions and hence reduce risks of
accidents and fatalities—a critical concern for mining companies and workers
alike (WEF, 2017).

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 ii. Reducing (Existing) Operating Costs, Improve Productivity of Assets :
External factors, such as market volatility, unpredictable commodity cycles and
the slowdown of growth in the global economy have put the mining industry’s
cash flows under acute pressure, making increased efficiency of operation an
imperative. New technologies offer mining companies new avenues to manage
operating costs when faced with such challenges (Conference Board of Canada,
2018). Also, much of the technological innovation aims at driving up production
volumes and boosting productivity, aiming for leaner and more efficient
production and organizational systems.

iii. Reducing Costs of Asset Development

There are still large mineral deposits to be explored and developed globally.
However, costs of asset development are more significant for frontier assets.
This has to do with rising upfront capital investments, increasingly remote
location of new assets, and difficult access or depth of resources deposits,
among others.
Technological solutions are a way to reduce the cost of development for these
assets (Deloitte, 2017). Given the large upfront capital investments expected,
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successful adoption of cutting-edge technology is, however, conditional on the
economic and technical feasibility of investment projects. Expected returns will
be affected by (among other things):
• Expected increases in productivity (e.g., ability to mine lower-grade ore bodies
at a competitive rate and at longer haul distances from the mine face).
• Expected increase in the lifespan of the project (i.e., ability to improve the
extraction rates in maturing mines).
• The value of the resource deposit (investment more likely for high-value ores).
• Characteristics of the resource deposit (e.g., other things being equal, highly
variable deposits are poor candidates for full automation; extremely deep
deposits are good candidates for automation/electrification).
• Costs of upfront investments (retrofit are usually more costly than greenfield
investments).
• Social, economic and political cost of replaced labour as well as new labour
required.
(iv) Rapidly Aging Workforce, High Retirement Rate and Subsequent Rising
Wages
In advanced and emerging economies, the mining sector is facing a rapidly aging
workforce and an increase in anticipated retirement rate. It is estimated that in
1980, there were on average across OECD countries 20 people aged 65 and over
for every 100 people of working age (20–64). This figure reached 28 in 2015 and
is expected to almost double between 2015 and 2050. As the workforce gets
older, the retirement rate increases.
For example, in a survey conducted by the Canadian Mining Industry Human
Resource council mining companies indicated that about 20 per cent of their
workforce would be eligible for retirement in the next five years, with significant
spillover impacts on operational continuity, organizational know-how and
operational experience (EY, 2017d). These dynamics in turn are translating into
large wage premiums due to skill shortages (including low uptake of post-
secondary programs). Those are seen as additional factors prompting decisions
to adopt new technologies.

(v) Reducing Costs of Technology Development

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 The cost of technology development and adoption is falling faster when
compared with other costs such as labour, making it more affordable to
industries (China Briefings, 2016). Additionally, many parts of the mining cycle
are already well-suited to the integration of market-ready technologies (e.g.,
data optimization, automated vehicles, high-risk applications, drones for
exploration, manual tasks suited for substations, etc.). These represent low-
hanging fruit for rapid technological adoption. However, it is acknowledged that
some segments of the mining industry may transition more quickly, as well-
tested technology opportunities emerge commercially.

(vi) Changing “First-to-Be Second” Attitude:

Mining is catching up in digital intensity Generally, companies who are first
movers in implementing new technologies bear a significant amount of risk
(WEF, 2017): these are financial (if technologies are untested, they may be
difficult to finance) but also regulatory, as they may not be approved by
regulators if there are uncertainties regarding the technology’s performance.
Those risks can cause significant project delays. Traditionally, despite the fact
that many mining companies had innovative ideas about process improvements,
many preferred to remain “the first to be second” (Hilton, 2019), i.e., to
implement new technologies only once those were tested, costs went down and
approval processes significantly improved. In that sense, first-commercial
implementation had already happened in some mines or elsewhere in the
economy, and it was seen as an advantage for the industry. Adoption risk was
lower and benefits could be demonstrated (Meyers Norris Penny, 2011).
However, the “first-to-be-second” attitude is now changing quickly, with
significant increases in technology spending observed around the world. The
industry recognizes the pressing need to innovate, in part because of the
growing competition from tech companies (Leach, 2014).

(vii) Environmental Performance:

The mining industry is faced with rising domestic and external pressures to
adapt and implement more environmentally friendly operational practices. This
is not only becoming an investment imperative (Jagannathan, Ravikumar &
Sammon, 2018)—the so-called environmental, social and governance (ESG)
criteria—but also seen as crucial to enhancing the overall environmental

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footprint of the industry, in line with sustainable development commitments. As
a result, mining industries are increasingly adopting green technologies across
their supply chains in an effort to reduce water and energy consumption,
greenhouse gas emissions and recycle wastes among others (El-Kassar & Singh,
2018).
MAIN BARRIERS TO TECHNOLOGICAL ADOPTION
There are a number of obstacles that slow or prevent adoption of new
technologies in the mining sector including:

• Disrupting existing value chains:

New technologies may disrupt—or face barriers from—longest established
value chains. Long-term contracts or established procurement methods may
hinder or slow mining companies’ ability to pursue innovations within their
operations.

• New safety challenges: Rapid integration of new technologies may create

hazards for workers not accustomed to working with them (e.g., failure
rates of new technology, reliability, interoperability and connectivity
issues in mine environments). They can create unintended challenges for
mining investments (Eldridge, 2017).

• Managing labour transitions: As mentioned later in this report, challenges

may arise when striking the balance between managing the transition
toward a smaller workforce and filling labour gaps without losing the
sector’s licence to operate in communities that depend on mining jobs.
• High upfront costs: Upfront costs of some technologies may hinder
adoption until the sector can develop a better understanding of new
financing models for high-tech applications.
• Standard, costs and regulations: Interoperability is a key issue in mining
applications, as connected technologies come from a suite of providers
(Gleeson, 2019c). As well, the implementation of proper codes and
standards—along with effective mining regulations—will be critical to
managing the rate of diffusion of these technologies.

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 • Disrupting existing value chains—political economy dynamics: Despite the
economic rationale for the adoption of technologies, political economy
can potentially block the adoption of technological innovations. Where
there are expected socioeconomic losses from the adoption of new
technology, local communities or host governments may work against
change. Local communities can react by strongly objecting to project
development, through union demonstrations, site blockages etc.
Governments can react by tightening regulatory frameworks to force
mining industries to provide or guarantee local economic benefits,
through tighter local content requirements. Alternatively, mining
companies may unilaterally refrain from adopting the most efficient
technologies, anticipating these sorts of reactions, especially in the
context of a retrofit of existing operations.

KEY EMERGING TECHNOLOGY TRENDS

Emerging technologies, and in particular “disruptive” technologies—i.e.,
innovations that displace current technologies and reshuffle the way the
business environment operates—are becoming more prominent in the mining
sector (McKinsey Global Institute, 2017c).
The past decade has seen an acceleration in the pace of technological innovation
and adoption, expected to have impacts unlike anything seen before in this
sector, catching many businesses and governments unaware. From artificial
intelligence and the rise of chatbots, to robotics and the Internet of Things (IoT),
emerging technologies and innovative business models are driving huge
paradigm shifts that many established industries and governments are simply
failing to grasp (EY, 2019).
Mining companies and governments in the 21st century need to look beyond
the world as they know it today. The choice is simple—either they drive the
debate regarding technological disruption or they run the risk of being
disrupted: if they don’t manage change, it will come back and hit them hard.

WHAT ARE THE KEY EMERGING TECHNOLOGIES?

Before assessing the impacts of technological changes, it is important to have a
clear understanding of the different technologies being developed and applied
in the mining sector. As noted above, different technologies will have different
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impacts, some will cause challenges, notably for the labour market (EY, 2017c),
but others will create significant opportunities that can be leveraged to create
more value in the economy at large. Disruptive technologies relevant for the
digitalization of the mine have the following characteristics:
(i) Access to big data,1 i.e., databases that are too large to be processed by
humans. Big data is critical to provide fast, accurate and comparative
analysis. Combined with advanced analytics and real-time information
management, it can significantly improve mining efficiency and minimize
risks for workers and machine breakdown.

(ii) An enabling environment that supports large data sharing, functional

networks and digital platforms able to share the information in real time.

(iii) Availability of cost-effective and well-performing digitalized ecosystems

with secure, predictable and high-speed connectivity.

ENABLERS OF DIGITALIZATION:
(i) Augmented intelligence technologies such as smart sensors, which
allow people and organizations to collect digital data about all
aspects of operations in huge volumes and in real time and relay
them to operating machinery and/or central controllers (Gartner,
2018). Examples include smart sensors; connected wearables;
satellites and drones.
In the mining sector, smart sensors and wearables are applied across various
parts of the value chain to support other technologies in boosting the
operational performance and efficiency of mining processes. Goldcorp, for
instance, uses smart sensors in its Éléonore mine in Canada to lower energy
costs, by turning off lights and power when people are not in a particular area
(CISCO, 2015). Such technologies improve worker safety during blasting
operations and help manage the air filtration systems to direct fresh air to
where it is most needed. Goldcorp assessed that it managed to save between
USD 1.5 million and USD 2.5 million per year on energy as a result of air
filtration management (World Economic Forum, 2017).

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 (ii)Connected wearables, such as tablets, watches, vital sign trackers, glasses
and helmets, are used to augment the ability of the workforce and foster
seamless communication by allowing mine and plant management to
capture critical real-time information (EY, 2016). These technologies enable
remote expert assistance when those are required as well as conduct real-
time diagnosis and guidance to solve problems and repair damaged
equipment. A number of mining companies in Australia, such as Rio Tinto,
BhP Billiton, Anglo American and Newcrest Mining have equipped their
employees with technologies such as Smart Caps aimed at monitoring
brainwaves in order to measure fatigue. These were first introduced for truck
drivers and machine operators to reduce the risk of injuries that could be
caused by fatigue (WEF, 2017).
(iii) Assisted intelligence technologies such Global Positioning Satellite (GPS)
navigation programs: In open-pit operations, some mining companies have
introduced GPS technologies on blasthole drills and electric cable shovels to
obtain more accurate and real-time three dimensional visualizations of the
location of the drill point or the shovel tracks. Information thus obtained
allows operators to precisely steer the drill from blasthole to blasthole,
maintain a desired shovel grade, or face position from a distant location
(World sensing, 2018).

(iv) Unmanned aircraft systems such as drones are flying mini-laboratories.

They can be used for a range of purposes including geological data
collection, site planning, rock face inspection, real-time blast control,
collection of water samples, assessing weather and environmental
conditions and safety monitoring. They are also versatile and can be fitted
with a wide range of accessories that can then perform site and
equipment inspections from angles and areas that are more challenging
for humans to access. Data collected is instantly transmitted to other
systems and operating centres. Mining companies like Freeport-
McMoRan are already using drones to monitor and evaluate blasting
operations. Similarly, in Canada, experience suggests that unmanned
aerial vehicles survey teams can operate up to 20 times faster than
ground-based teams of surveyors in the mining sector (Conference Board
of Canada, 2018).

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TECHNOLOGIES THAT ACT AS INTEGRATORS AND/OR TRACKERS OF
BIG DATA TO ENHANCE PERFORMANCE :
These types of technologies are aimed at improving the efficiency of mining
operations (EY, 2016). Their use is expected to grow at an exponential pace in
the forthcoming decade, and allow the mining environment to be more
integrated for real-time problem solving. They include technologies such as:
(i) (Industrial) Internet of Things platforms, which are based on the
interconnection of smart devices, services and systems. The goal is to permit the
transfer of data from all devices to networks with limited human intervention.
This is meant to improve efficiency, minimize costs, optimize equipment
management, increase asset utilization and improve real-time performance
monitoring of operations. The advent of 5G networking is expected to unlock
the significant potential and improve the performance of IoT platforms. In 2015,
Deloitte (2015) estimated that the incremental global contribution of IoT
technologies was expected to more than double between 2014 and 2018, rising
from USD 400 billion to USD 1 trillion. This is expected to double again by 2020
to reach USD 1.9 trillion.
(ii) Blockchain is a tamper-proof digital ledger used to document the
provenance and characteristics of products, making information accessible to
users at every stage (Devan, 2018). It improves trust and transparency and
allows the automatic detection of fraud, which in turn, reduces the risk of
round-tripping and double-financing. The diamond company DeBeers
developed a blockchain platform to track progress of its diamonds. The
platform, called Tracr, creates a digital trail for each diamond (Mining
Technology, 2018a). It established an “end-to-end baseline of trust” that helps
overcome challenges of authenticity and compliance. Blockchains can be
similarly used for smart contracts, which enable buyers and suppliers to
monitor the fulfillment of contractual obligations (detect breaches for instance)
and therefore trigger necessary payment actions without human involvement.
Blockchain technologies are already in use in other industries like supply chain
management where they are used to track containers during shipping and in
the retail sector, where Walmart can now retrace mangoes to their original
source within 2.2 seconds (EY, 2019). In the mining sector, blockchains are
particularly being used to track responsible supply chains downstream, notably
to better manage the sourcing of minerals from conflict-affected areas.

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TECHNOLOGIES THAT OPTIMIZE OPERATIONS AND PROCESSES,
MAINLY THROUGH THE USE OF BIG DATA.
Some technologies allow machines to understand, learn, and then act on
information gathered to adapt actions as circumstances change (PwC, 2017).
These types of technologies are likely to be omnipresent in the next 10 years,
with a wide range of functions and uses. They have the ability to optimize
operations, making machines perform cognitive functions traditionally
associated with human minds, such as perceiving, reasoning, learning and
problem solving.
Specific technologies include:
(i) Machine Learning and Data Analytics Machine learning enhances
the capacity of machines by using algorithms to quickly and
accurately analyze very large data sets, learning from the
relationships discovered there. The result is an improved ability to
perform the sorts of descriptive, predictive and prescriptive tasks
traditionally performed by humans (Muro & Whiton, 2019). One
example of this is predictive maintenance, in which in which
millions of data points on past machine performance and repair are
combined with real-time data from existing machinery—for
example fed by sensors that detect anomalies in temperature or
vibration— to assess the remaining useful life of components, to
better plan for repairs, maintenance and interventions (Deloitte,
2018a). Such technologies are crucial to reduce downtime and
operating costs while improving production yield. They allow better
organization of stocks and orders.
(ii) The combination of data analytics with algorithms is a powerful tool
that mining companies are using to make more strategic decisions,
based on insights from data. For instance, companies can use such
analysis to (Accenture, 2016a):
• Control mineral characteristics through drill and blast enhancement and
improved blending to help meet required output
• Better plan mine operations based upon predictive alerts
• Enhance asset management through predictive assets maintenance

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• Improve workers’ safety through fatigue monitoring.
(iii) Automation/ and or remote operation, through the use of data,
software and person-less machines. There are different types of
automation processes:
(a) Software automation tools help mining professionals maintain real-time
control over operations for better safety and efficiency. These tools can
perform jobs like creating reports and therefore provide more time for
professionals to focus on solving more complex problems, further enhancing
efficiency. Some examples include tools such as modular information
management solutions, like those developed by the Swedish company Sandvik,
which are coupled with autonomous assets. These technologies have been used
in the development of a new underground mine in Mali (see Box 1), which is the
first fully purpose-built automated mine in the world.
Two of such systems are:
Opti Mine, which is an information system that offers a real-time view of
underground mining operations, notably through a three-dimensional visualizer
for the mine; a drill plan visualizer as well as other tools for drilling (Sandvik,
n.d.a). It also provides accurate real-time location data for machines and
equipment.
Auto Mine, combines mechanized tools and equipment with other software to
telemonitor and remotely control their use. It allows for autonomous operation
of single pieces of equipment as well as entire fleets of trucks, loaders and
drillers both underground and on surface (Sandvik, n.d.b).
(b) Robotic Process Automation (RPA) tools, which perform repetitive tasks
such as back-office finance operations and supply chain management. The next
generation of RPA tools is expected to include cognitive technologies such as
optical character recognition, natural language processing and generation to
augment the efficiency of machines (EY, 2017b).
(c) Hardware robotics and autonomous assets are powered by artificial
intelligence and machine learning. Automated equipment is able to replace
manual human labour, although the assets still require remote control
operation by human workers. Some of the fully automated technologies on the
rise include ore truck driving, rock drilling, automated and driverless trains.

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(iii) Digital twin2 applications provide an immersive virtual environment
through accurate, electronic and digital representations of the mining
environment and operating facilities. Well-designed digital twins of assets
significantly improve planning, management and decision making. Digital twins
combine data obtained from connected items such as sensors and wearables to
other information such as product demand, inventory, maintenance and
planning (Leonida, 2018). Together, these provide a platform for advanced
analytics to reproduce, simulate, predict, and optimize mining processes and
operating environments. This results in more efficient planning and
management of operations over different time horizons.
For example:
• Mining companies are able to simulate virtual “what if” scenario planning to
test new methods of processing and production (Accenture, 2016b). Digital
data, combined with technical characteristics and economic modelling, can help
decide on the appropriate levels of spending on new capital and operational
projects.
• Digital twin applications provide virtual visualization of physical mining
locations. This has multiple advantages: it gives an overall view of the mining
environment, which helps more precise analysis and decision making. It allows
various specialists to work on different problems at the same time, which is not
possible when done physically. It is an immersive constant training tool for
employees (Leonida, 2018).
• Simulations enable deeper insight into equipment assets, allowing them to
predict and prevent failures and to improve mine efficiency.

TECHNOLOGIES THAT IMPROVE MINING PROCESSES :

Mining is one of the world’s most energy- and water-intensive industries—one
of the main ongoing struggles therefore is to secure uninterrupted and cost-
effective access to both resources.
Today, growing concern over the environmental footprint of the industry is
increasing the pressure on the industry to optimize its energy mix to reduce its
GHG emissions and use greener sources. New technologies are therefore being
used to “green” mines and minimize and optimize water usage. Relevant
technologies include:

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(a) Advanced process control, such as the optimization of energy use in
processes such as crushing; greater use of machine learning to map large
amounts of accumulated real-time data on incoming material characteristics
(grade, hardness, etc.) to improve the efficiency of operation.
(b) The use of renewable power generation technologies: In Chile, Barrick Gold
has announced that by 2020, its Zaldívar Copper Mine will be powered with 100
per cent renewable energy, which will enable the company to reduce GHG
emissions by 350,000 tons annually (Benton, 2018).
(c) Clean technology to further reduce carbon emissions through the use of
electric vehicles. This has the twin benefit of reducing greenhouse gas emissions
and minimizing exhaust gases that must be vented—a particularly important
health concern in underground mines.
(d) Water-management technologies, viewed both as a sustainable and a
pressing issue, to manage risks of water scarcity, pollution and avoid conflicts.
Mining companies face increasing supply risks due to water scarcity. Companies
are therefore investing in process innovations to minimize water use and
improve its management, notably through techniques such as closed-loop
water recycling, evaporation control and dry tailings disposal. As part of its
Future Smart Mining Program, Anglo American aims to eliminate the use of
fresh water from its mining processes, in particular in the separation and
transport of ore and waste (tailings). Three innovations include closed-loop
water recycling, evaporation measurement control and dry tailing disposals
(Anglo American, 2018). Mining companies also face environmental risks due to
effluent leakages and toxic floodwater runoff resulting from severe climatic
conditions. For example, in Viet Nam, flooding in 2016 arising from heaving
rainfalls caused water to run off from 16 open-pit coal mines. This was a major
cause of concern regarding the impact of toxic contamination on the health of
the local population.

OTHER TYPES OF TECHNOLOGIES THAT MAY AFFECT PROCUREMENT

Additive manufacturing processes are transformative technologies for
industrial production. They enable the creation of lighter, stronger parts and
systems, reducing lead time for production and delivery. They can help produce
specific spare parts on demand and tailored to the characteristics of what has
to be replaced and significantly reduces downtime, as spare parts can be
manufactured closer to the industry. They are more than just about products,

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and have the potential to revolutionize the manufacturing sector. Firms will be
able to produce almost anything, within the boundaries of a single printer (EY,
2019) and a single location. Some examples include:
(i) Mass customization of objects: a single machine will be able to
custom-make products or prototypes, based on specific needs of
any industry, including mining;
(ii) The development of 3D modelling software will significantly
improve collaboration between procurement departments and
product developers;
(iii) 4D printing, which adds an element of time to 3D printing.
Expected impacts are likely to be felt in maintenance services (including on
people performing those services) and suppliers of procurement items (not
necessarily in a negative way, because local suppliers will be able to acquire
the technology to manufacture inputs closer to the market—"local” can
become an advantage over “imported”).

TYPES OF TECHNOLOGIES AND THEIR APPLICATIONS

When new technologies are being developed, there tends to be a lot of
attention, speculation and promises about what those technologies can or
cannot do. Of course, not all promises are likely to materialize, and there are
often more questions than answers regarding their likely impacts, be they
positive or negative (Gartner, 2018).
For example:
• How does one distinguish the hype from what is actually commercially
viable and sustainable in the long term
• Within what timeframe can we reasonably expect such technologies to pay
off (if at all)
• What will be the speed of adoption and how fast will those be replaced for
more advanced techniques
• Are there substantial labour market changes at stake If so, to what extent,
what job categories are most at threat? Which types of tasks will change and
what new opportunities are expected to be created
• Will there be any (political or societal) obstacles to the adoption of certain
types technologies Although the speed of adoption is very context-specific,

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 there are nonetheless some trends that are emerging and spreading rapidly
across the globe. all parts of the mining value chain have already embraced
new technologies, enabling the mining sector as a whole to operate faster
and more efficiently.

EXAMPLES OF NEW/EMERGING TECHNOLOGIES ACROSS THE

MINING VALUE CHAIN :
At the exploration phase, for instance, the amount of data being collected
digitally and the ability to combine it through digital twinning will significantly
reduce the cost of exploration because more precise simulations will allow
better planning and operations scheduling. When combined as well with other
technologies such as sensors, data twinning will further help assess the
profitability of projects as well as the efficiency and productivity of future mines
(EY, 2017a). Information relayed will enable mining companies to analyze in
greater depth the characteristics of the ore in the ground and run probability
modelling, a critical advantage in making decisions about project development.

The processing phase is probably the one where most advances are being made
at the same time. Sensors provide real-time data for more effective planning.
They can also help companies manage their operations remotely. Predictive
maintenance and automatic spare-parts replacement software can avoid or
minimize equipment downtime while improving life-cycle management. The
increasing use of autonomous equipment in blasting and drilling improves
drilling precision and efficiency and reduces risks of worker accidents.

New technologies are increasingly being applied to the downstream part of the
value chain to increase efficiency and productivity. Activities in areas including
logistics, trading and end-to-end value chain management are using the IoT and
digital twinning to optimize planning and scheduling, with the aim to
significantly reduce costs, manage stockpiles and monitor on-time delivery
(McKinsey Global Institute, 2016).
For example, built-in GPS and detection technologies in vehicles can boost
routing of delivery traffic from pit to port/shipping, thus improving fuel
efficiency and reducing delivery times. The combined use of sensors can further
improve monitoring and enhance both the performance of vehicles and the

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behaviour of drivers, in particular regarding stress and fatigue. Real-time
applications can provide advice to drivers about traffic and best routes, as well
as providing guidance regarding when to speed up or slow down. Minimizing
vehicle stop time is costefficient, optimizes fuel consumption and reduces
maintenance costs overtime.

WHAT TECHNOLOGIES ARE MOST LIKELY TO BE ADOPTED IN THE

SHORT TO MEDIUM TERMS?
Despite growing efforts to embrace technological innovation across the globe,
the mining industry seem to be only slowly catching up with other sectors, a
situation which is rather surprising given the perceived opportunities (EY,
2017b).
One of the main reasons is that the context in which mines operate may not
always allow for fast technological innovation. Based on specific geological
conditions, adoption may be faster or slower.
Other determining factors include the availability of digital infrastructure, the
cost-benefit calculations of investments as opposed to expected returns given
the quality of ore grades or quantity of resource endowments etc. Further,
aversion to change may still create some reluctance within the industry’s
leadership to make rapid investment decisions (EY: 2017b).
In 2017, the consulting firm Accenture conducted a survey, looking at the
technologies that are most likely to be embraced by mining companies in the
next five years (see Figure 3). The survey highlighted the speed and readiness of
technological adoption across various stages of the mining value chain by 2022
(Accenture Consulting, 2017).

DIGITAL TECHNOLOGIES BEING ADOPTED MORE QUICKLY BY

MINING OPERATIONS BY 2022.
Most of the changes occur at the mine-processing phase. The top four
technologies are not surprising: they are
(i) robotics and automation (over 50 per cent expected);
(ii) the use of unmanned vehicles and drones;

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(iii) the use of wearables and other connected items; and
(iv) remote operating centres, necessary to control all of the three other
technologies (Accenture Consulting, 2017). Taken together, those are sufficient
to reshape the organizational and operational structures within the mining
industry and the relationship it will have with its employees, suppliers, local
communities and host governments. But this is just the tip of the iceberg,
considering the potential of technologies in the pipeline.
Indeed, miners are looking at more sophisticated and cutting-edge technologies
in the medium term (Accenture Consulting, 2017), to maximize the benefits of
the digital, automated and integrated environment, currently being put in place.
The next phase of investments will deepen advanced process control systems,
to create greater convergence and stronger horizontal connections across
different processes within mines, and most importantly across the different
parts of the value chain, from mines to markets.

TRENDS OF TECHNOLOGICAL ADOPTION GLOBALLY :

This section collates additional examples of technological adoption. It provides
insights about the uses and implications of new and emerging technologies
relevant to the mining sector.
The examples below highlight different types of technologies being deployed
across the world. For instance, companies like Gold Fields,6 BHP and Anglo
American have pioneered specific programs looking at technological innovation
in their mining operations, to help them improve their productivity and
efficiency. In Africa, investment in automation is not new.
In the Northern Cape of South Africa, the Finsch diamond mine has been
operating fully automated “driverless” trucks in haulage loops for over 10 years
(Modern Mining, 2018). In 2014, similar investments were made, notably in the
greenfield Venetia underground diamond mine in South Africa’s Limpopo
province, where Anglo American invested in fully automated trucking loops,
drills and haulage trains (Modern Mining, 2018).

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The Kibali mine in DR Congo (Creamer, 2017) is an underground mine that has
undergone significant investments to improve productivity through automation
and mechanization. The mine’s profitability, however, rests on the availability of
affordable power.
In that regard, the mining company invested in hydroelectric power to secure a
reliable supply. The mine is equipped with an integrated, automated ore-
handling and shaft system, the first of its kind in Africa. It includes features such
as multiple driverless loaders that load and haul on a single haulage drive, and a
smooth, high-strength roller compacted concrete haulage surface, which
improves haulage speed with minimal spillage.
On the surface, drones are used for pit and stockpile measurements. In DR
Congo, Ivanhoe is developing its Kamoa/Kakula copper project, expected to
become the second largest copper mine in the world. It is expected to be a highly
mechanized underground operation (Modern Mining, 2018).
In Ghana, the modernization of the Obuasi mine (which had remained under
caretaker for five years) by Anglo Gold Ashanti was made possible due to
investments in more mechanized operations and by shifting to contract mining
(Modern Mining, 2018).
In 2014, this entailed reducing the workforce by 87 per cent (The Economist
Intelligence Unit, 2014)—from 4,300 jobs when the mine closed temporarily for
retrofitting, to 550 in the newly reopened mine (Ghanaweb, 2019).
In Latin America, Chile has been driving technological innovation in the mining
sector for over a decade. Since 2008, Codelco, the state-owned copper mining
company and the world’s largest copper exporter, has operated 18 autonomous
trucks at its open-pit Gabriela Mistral mine in the Antofagasta Region (Invest
Chile, 2018).
In Chile, BHP has successfully tested a technology to detect driver fatigue
(Yeomans, 2017). This technology called “Smartcap” is equipped with an
electronic strip that sits on the driver’s forehead. It is able to measure
brainwaves that show fatigue.
The sensors in the cap communicate wirelessly with a small unit in the truck’s
cabin warning the driver and supervisors. The Minera Centinela mine in the
Antofagasta Region is testing a new generation of drones that will be completely
autonomous (Airobotics, 2018).

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These drones will draw maps and carry out volumetric measurements and
topographic surveys. The data is connected to a data processing software to
allow data analysis, planning and decision making. Anglo American is using
digital twins (Leonida, 2018) to boost the productivity and safety of its mine
operations. At the Los Bronces mine in Chile, digital twins are used to track the
performance of haulage.
Similarly, the technology is being used to monitor the 500 km slurry pipeline in
Brazil to prevent future leaks. To date, digitized technical equipment has led to
a 30 per cent improvement in the business (15 per cent productivity
improvement and 15 per cent cost savings) (Collins, 2018). In Brazil, Vale has set
up an Artificial Intelligence Centre (Mining Technology, 2019) to collect and
analyze data from its projects, with a view to improving the efficiency of its
infrastructure.
One of the "high-impact" projects focused on predicting rail fracture on the
Carajás railroad, where the most common and serious incidents occurred
(Intelligent Mining, 2019b). The combination of data with analytics resulted in
Vale saving USD 8 million at its Salobo mine, increasing the life of off-highway
truck tires by about 30 per cent in one year (Intelligent Mining, 2019b).
In Canada, an increasing number of mines are using digital tools and technology
to improve their productivity. At Glencore’s Onaping Depth mine, digital
systems are used to plan shift-level tasks, monitor task progression, and track
delays and equipment availability (Hatch, 2018).
The objective is to reduce operational variability and improve productivity, using
an integrated people-process technology approach. In Central Asia, in
Kazakhstan, the Kacharsky mine has invested USD 10 million into a new modular
automated system for production processes, which it has integrated into the
existing geographic information system (GIS) and enterprise resource planning
system (Leotaud, 2017). The mine can be monitored in real time by sensors that
can detect where changes should be made in the mining process to improve
productivity. The government announced in 2017 that it will support digital
technologies in the mining sector to prepare it for the Fourth Industrial
Revolution (Leotaud, 2017).

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 IMPACTS
This section lays out the overall impacts expected from the adoption of new
technologies, with the caveat that the impacts of the Fourth Industrial
Revolution—in particular on employment— are challenging to predict with
certainty. As well, the impacts of new mining technologies are difficult to
describe at any level of generality.
As described above, “new mining technologies” represent a suite of very
different innovations and applications, each of which will have different sorts of
impacts. As well, the impacts of each are highly context-specific, playing out
differently in different types of operations and locations.
That said, although it is hard to make quantitative forecasts, there are still some
predictable aspects of those impacts, as follows:
(i) New Technology Will Improve Productivity
EY (2019b) explored the impacts of digitalization and technological innovation
across the minerals industry value chain. The study anticipates a total overall
improvement in productivity of between 9 per cent and 23 per cent due to the
adoption of digital technology, with stages in the value chain such as mining
operations estimated to achieve productivity improvements of up to 25 per cent
(EY, 2019b). Mines optimized for efficiency and productivity will reduce the
sector’s overall energy use and GHG emissions, thus improving its
environmental footprint.

(ii) Different Technologies Will Have Varying Impacts

The impacts of technological innovation are multidimensional: technological
innovations are likely to have different implications, some more positive than
others. Research estimates that by 2025, 30 per cent of commercial trucks will
become autonomous. From a safety perspective, this would reduce accidents
by between 70 and 90 per cent. Such autonomous vehicles are also expected to
increase fuel efficiency by up to 40 per cent (McKinsey Global Institute, 2013).
However, the picture is starkly different from a labour perspective, where
employment is expected to fall by between 80 and 90 per cent. In Canada, a
recent report forecasts that 37 per cent of the workforce employed in the
trades, transport and equipment fields in the mining sector will be negatively

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impacted by the adoption of autonomous vehicles (Conference Board of
Canada, 2018).
(iii) Some Tasks Are More at Risk Than Others
The speed of technological adoption and the expected impacts will vary across
different types of technologies. However, it is worth noting the obvious fact that
technological change is not a matter of a homogeneous disrupter acting with
uniform impacts. Some tasks are more at risk from some technologies, like
automation, than others, and some jobs will be affected more than others—
both negatively and positively.
Risks to employment are higher for occupations related to trades, transport
and equipment operation. Research consistently finds that the tasks most likely
to be threatened by technologies such as automation are those that are manual,
repetitive and predictable, whose workers are also lower-paid, lower-skilled
and less-educated.
Although the number of jobs that will be lost is difficult to predict with certainty,
occupations in the frontline for full automation include truck driving, rig drilling
and blasting (Baggaley, 2017). In Australia, it is estimated that 60 per cent of
mining jobs in certain regions are at risk of disappearing in the next 10 to 15
years as a result of technological advancement (Sparkes, 2016).
On the other hand, occupations expected to benefit the most from technological
disruption include engineers, computer network technicians, software
developers and data analysts (to name but a few). New jobs will tend to be filled
by highly educated and skilled workers with the capacity for creating and critical
thinking (Boy, 2013).
(iv) Uptake, and Thus Impact, Is Inherently Context-Specific
Different technologies are most suitable to different contexts. Australia is a
leader in automated trucking in part because of its wealth of resources in open-
pit settings in remote locations that require fly-in/fly-out workers with
conventional hauling technologies. In 2015, a study estimated that by 2025, 80
per cent of Australia’s professional drivers of road and rail vehicles would be
replaced by automation (PwC, 2015).
Some technologies, like the optimization of crushing using sensors and machine
learning, can be retrofitted to existing operations relatively easily, while others
would require extensive system changes.

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 The combination of electrification and automation is particularly suited to deep
operations that would require costly air conditioning and venting of exhaust in
convention operations.
(v) Size of Mines Will Impact the Rate of Adoption
Arguably, large-scale and mega-mines have more financial capacity to invest in
advanced technologies compared to mid-sized or smaller mines. While one
would expect higher uptake on the part of larger firms, they may face greater
barriers associated with risk-aversion and organizational barriers that influence
the adoption of unproven technologies.
This is linked to the fact that they have traditionally been less engaged with tech
firms, and more with engineering firms, who by nature, tend to implement
projects, rather than provide innovative solutions, due in part to their limited
involvement in R&D.
(vi) Impacts Will Vary According to Countries’ Level of Development
Technological changes will affect developed and advanced countries differently
(McKinsey Global Institute: 2017d). As a rule, rollout of new technologies is
likely to be faster and more ambitious in advanced countries (and in particular
in remote areas).
These countries have a more diversified economic base and are well equipped
with reliable and fast connectivity infrastructures, which greatly facilitate the
adoption of newer technologies. Governments in advanced countries may also
be less intimidated by rapid adoption, although they also face unique
challenges, such as the need to support workforce transition in impacted areas.
The mining sector already has highly integrated mining projects across the value
chain, also easing technological adoption. A country where digital infrastructure
enabled faster adoption of automation is Australia, where investments were
made right through to the logistics part of the value chain (Nieponice, Vogt, &
Koch, 2019).
This may not always be possible in other countries with infrastructure
difficulties or with low-quality connectivity. Recent innovations in Mali (the
Syama mine) and DR Congo (Kibali mine) were only made possible because the
mines made significant upfront investments in IT infrastructure to secure
connectivity that compensate for the gaps at the national level.

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This can impede investment decisions if costs are too high or not shared by
governments. In developing countries, greenfield projects are most likely to be
embedded with advanced technology, while retrofits might have to be carefully
negotiated due to the need to manage the transition between lost
opportunities (in particular for labour and local procurement) and new
opportunities, provided the requisite skills and capabilities are available.
Failure to do so would pose serious threats to social and political stability. This
is particularly important in lesser-developed countries that are heavily reliant
on mineral resources and who are therefore likely to bear a heavier burden
arising from technological disruption. Impacts are expected to be more
significant on employment and on local economic development.
In least-developed countries the impacts may be exacerbated, with even less
scope to redeploy people in the formal sector due to the lack of other strong
economic sectors.

THE CHANGING ROLES AND NATURE OF FIRMS

New technologies can reshuffle mining value chains, disrupting both existing
business models and the traditional roles and relationships among mining
companies, their customers, their suppliers and even competitors. Some
changes may include:
(i) The operational structure of the mining industry itself will change: Many
companies have already switched from owning capital equipment to leasing it.
Others outsource parts of their operations to contract suppliers (e.g., Anglo
Gold Ashanti at Obuasi in Ghana).
(ii) New types of operators, such as tech providers or automotive
manufacturers, may become strategic investors in mining projects (EY, 2018).
(iii) Universities, R&D centres of excellence, and technological hubs will play a
more prominent role in providing innovation ideas, solutions and high-tech
services to the value chain (Nedelkoska & Quintini, 2018).
(iv) Technological innovation will come from new fields, such as biochemistry;
bio-engineering; computer science. These disciplines are outside the traditional
core competence of the mining sector, implying a need to either bring new areas
of expertise on board, form strategic partnerships, or purchase/license new
technologies developed by others.

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This section explores five sets of policy options that governments and mining
companies might consider in seeking to address the disruptive impacts of new
technology:
(i) Increased focus on skills development
(ii) Increased focus on some types of local content
(iii) Rethinking community engagement
(iv) New arrangements between host governments and mining companies
(v) New technology as part of the new deal.

TECHNOLOGIES IN EXPLORATION, MINING, AND PROCESSING :

Mining involves a full life cycle, from exploration through production to closure
with provisions for potential postmining land use.
The development of new technologies has benefits for the mineral industries
throughout this full life cycle and for every major component of the mineral
industries: exploration, mining (physical extraction of the material from the
Earth), processing, associated health and safety issues, and environmental
issues.
The committee recommends that research and development be focused on
technology areas critical for exploration, mining, in-situ mining, processing,
health and safety, and environmental protection.
The mining industries are constantly undergoing incremental or evolutionary
changes as uses are found for new technologies developed for other
applications. Occasionally, revolutionary changes occur when new technologies,
developed either inside or outside the industry, take hold.
Provides examples of past evolutionary and revolutionary changes. Given the
current rapid pace of technological development in broad areas (from
information technology to microbiology), the committee envisions that mining
industries will be able to take advantage of some of these developments to the
benefit of consumers, producers, workers, and the environment.
Progress towards these revolutionary changes will produce concrete
developments for industry. These revolutionary changes can result from basic
research, applied research, or technology development.

IMPORTANCE OF MINING TO THE U.S. ECONOMY :

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Finding: Mining produces three types of mineral commodities (metals, industrial
minerals, and fuels) that all countries find essential for maintaining and
improving their standards of living. Mining provides critical needs in times of war
or national emergency.
The United States is both a major consumer and a major producer of mineral
commodities, and the U.S. economy could not function without minerals and
the products made from them. In states and regions where mining is
concentrated, this industry plays an important role in the local economy.

HEALTH AND SAFETY RISKS AND BENEFITS :

Finding. Advances in technology have greatly enhanced the health and safety of
miners. However, potential health hazards arising from the introduction of new
technologies, which may not become evident immediately, must be addressed
as soon as they are identified.

INCREASING FOCUS ON SKILLS DEVELOPMENT :

The development and application of new technologies in the mining sector
require different competencies in the labour market (OECD, 2019). Successful
adaptation to a new working environment will depend on the learning evolution
of the labour force, meaning the extent to which workers are able to acquire
new skills and adapt their competencies to remain fit to perform more
sophisticated tasks.
This is still an uncertain and unknown variable in many countries. To adapt to
the coming changes, governments and mining industries will need to have a
profound understanding of the gaps and future skills needs.
Today, it is estimated that there is a limited pool of people who have the
requisite skills, in fields such as data science, analytics, predictive modelling and
mechatronics (EY, 2018).
Training programs, curricula and institutions will have to be adapted to respond
to those changes. Social protections programs will have to been revised to take

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care of the most vulnerable workers who might fall out of the system (World
Bank, 2019).

Challenges in Implementing Optimal Monitoring and Sampling

Practices :
Historically, the primary focus of RCMD sampling and monitoring efforts had
been based on compliance with federal regulations. Additional sampling efforts
were undertaken by coal mine operators to support improvements in mine
ventilation and other dust controls, for instance to resolve noncompliance
conditions.
Over three decades, the compliance-driven approach led to a significant
reduction in the rates of lung diseases associated with occupational exposure to
RCMD among U.S. coal miners. However, it has not resulted in attainment of the
ultimate goal of the Coal Mine Health and Safety Act of 1969, which is to
eliminate such diseases.
To continue progress toward reaching this goal, a fundamental shift is needed
in the way that coal mine operators approach RCMD control, and thus sampling
and monitoring.

Relative to the findings in this report, it is clear that an optimal sampling and
monitoring strategy needs to support RCMD control efforts that go beyond
compliance with regulations.
This report offers a detailed discussion of various components that might
comprise such a strategy, and it identifies several possible challenges to
implementation. It is important to note that the coal mine industry has faced
similar challenges previously in the realm of beyond-compliance efforts.
Most notably, the industry has worked for widespread adoption of a
comprehensive safety management systems approach for pursuing the goal of
zero accidents and injuries.
As part of that approach, the industry recognized compliance as only a starting
point in an effective process of safety risk management.

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The following conditions are required to address the knowledge and
skills challenge:
1. Skills development programs and educational systems will require some
adjustments to enable workers to embrace the technological shift:
(a) The general education level, in particular in developing countries, will have
to be significantly improved. In many cases, inadequate primary and secondary
level schooling makes it impossible for workers to take vocational training aimed
at preparing them for the mining jobs of the future.
(b) Education systems and training institutions will require significant
adaptation. They have to focus at an earlier stage on data and digital literacy, a
core competency to be required for most jobs of the future. Additionally, they
need to place much more emphasis on STEM subjects: science, technology,
engineering and mathematics. Science should not be left to be a field “option”
in school, but rather a competency in itself (Committee for Economic
Development of Australia, 2015), which should start from early childhood. This
is already the case in Australia, where STEM learning is integrated in basic
literacy, in early childhood education, as a step to prepare the next generation
with appropriate competencies (The Senate Australia, 2018). Firms in particular
should be encouraged to take science subjects at school.
(c) Higher education and training systems (including university, technical and
vocational training schools) will have to deliver the foundational skills that will
allow learners to embrace new technological opportunities and to keep a
competitive edge over machines, since those skills are (still) the least
automatable and replaceable (OECD, 2019).
These skills include:
• Human skills such as
(i) critical thinking or proficiency to challenge normative ideas and find
solutions and responses beyond what is conventional,
(ii) emotional intelligence,
(iii) analytical skills,
(iv) cognitive skills
(v) creativity,
(vi) interpersonal and communication skills;
(vii) collaboration.

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 • Digital skills, as a rule, as a basic competency for all workers of the future.
At a more advanced stage, these are skills needed to create and manage data
and develop software, ensure digital security etc.
• Practical management skills to design and manage projects and business
processes.

In Canada, academic institutions are responding to the evolving needs of the

mining sector by reviewing their curricular and research programs and by
facilitating work placements to enable real-work exposure in a wide variety of
dynamic operating conditions. Institutions have also established better
partnerships with the mining sector. In the future, mining engineering schools
may seek to become more interdisciplinary.
One way would be to amend curricula to attract students from emerging
disciplines, such as genomics, computer science, and nanotechnology
(Conference Board of Canada, 2018).
(d) Academic training will have to be combined with cognitive skills, social
science and creativity. Lifelong training programs will be crucial to constantly
equip employees with new competencies. The most nimble or versatile workers
ideally need to have a blend of those different skills, to be able to adapt to future
markets and workplaces (World Economic Forum, 2018a). These workers are
likely to be in higher demand, as the mining environment evolves and becomes
more flexible and collaborative.
People with a blend of scientific and foundational skills (dubbed STEAM skills—
science, technology, engineering, arts and mathematics), are expected to
advance into more senior roles. However, they are also likely to be more volatile
or more mobile across industries, which implies employers will have to pay them
higher wages to retain them (Boy, 2013).
2. Training programs need to successfully embrace the generation shift. The
existing workforce must be educated to the new world of work through
innovative training programs and methods and retraining/ reskilling tools, both
critical for smoothing a transition toward new types of tasks (WEF, 2019).
To achieve this, training programs must facilitate continuous and dynamic
learning over the career life-cycle of employees, to ensure that people keep pace
with technological progress and other factors of change. This is crucial for

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employees performing tasks most at risk of technological disruption. Programs
must be adapted to different age groups. For example, “millennials”9 (Heather,
2017) have a natural predisposition for technology, as they grew up in
“connected societies,” notably through social networks.
This new generation of employees is easier to train, and skills strategies will have
to adapt to their capabilities. Mid-career and close-to-end-of-careers employees
will need particular tailor-made support, as some of them may take more time
to adapt to new working environments and to new software and machines.
3. Lifelong training is key to continuously upskill workers and empower them to
pursue other interests and careers. This is a clear opportunity for mid-career
workers, who are experienced, and can therefore improve their productivity, by
astutely combining new skills learned with their experiences.
Today, unless provided by the industry, mid-career workers are not encouraged
to take flexible training on their own, in part because this often has a financial
cost, but also because it is not always possible to take paid leave to do so
(International Labour Organization, 2018). In the future, as continuous learning
becomes more important, industries and employees will have to find a way to
address this challenge.
4. Nurturing innovation and new technology requires adapting skills and
capabilities of staff to better work together, away from the traditional silo
approach (separate teams responsible for different parts of the value chain).
Collaboration—in particular among workers who have never worked together—
will be key. Working ecosystems will be more interdependent and
interdisciplinary.
5. Talent retention within the industry will be key to minimizing direct
competition with other sectors. The sector is too often perceived to be less
attractive to the younger generation. It will need to give attractive salary
packages as well as tailored reward programs to retain talents.

NEW ARRANGEMENTS BETWEEN HOST GOVERNMENTS AND

MINING COMPANIES :
• If tangible benefits (such as employment, community investment, funding for
social supports, etc.) for communities are set to diminish over time, there is

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 a need to rethink and develop alternative programs and policies to ensure
the benefits of mineral development are shared equitably.

• These can include gradual changes to regulation, fiscal regimes and industry–
public engagement. Failure to agree on a joint collaborative approach may
lead to increasing difficulty to secure the necessary public support for future
mine development.
• For instance, this may result in unilateral decisions by policy-makers to
increase taxes or royalties levied on mining firms that employ fewer people.
Such a decision would be based on the assumption that new technologies
would bring significant and sustained profit streams as a result of more
efficient operations and more productive mines, and therefore may be
subject to higher taxes.

• This is, however, not a certainty, as upfront investments are very substantial
for greenfield projects, and brownfield retrofits face declining ore grades,
and improved productivity does not necessarily guarantee higher profits. In
the longer run, rents get competed away, and new technologies may simply
become a prerequisite to staying in business.

• A more nuanced version of tax reform might see tax rates somehow indexed
to profitability (i.e., a resource rent tax). Another possibility may be to rethink
government ownership of mining resources. The aim of such strategies
would be to derive more national benefits from the resource.

• Several options are available, including increased state-controlled shares,

like the one between DeBeers and the Government of Botswana (IGF, 2018)
or by entering into contract arrangements along the lines of production-
sharing agreements that exist in the oil sector.

• However, lessons must be learned from the failures of past state-owned

initiatives as these may lead to risks of corruption and bad governance as a
result of patronage and rent-seeking that may arise from bids to control
financial resources. Success would depend on mines being competitive in
global markets (so that the state does not end up subsidizing operations) as
well as on the existence of well-governed transparent and accountable
institutions.

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• Governments may also seek to promote national champions (Cosbey &
Mann, 2014; UNECA, 2014). Those can be privately owned large companies
or state-owned companies. Best practices would be instructive, such as in
Codelco in Chile and Office Cherifien des Phosphates in Morocco.

• As with community economic development funds, a critical condition would

be to ensure that increased funds to the government—in this case, in terms
of a stream of profits or dividends—are effectively translated into tangible
benefits at the level of the affected communities.

• Another potential advantage of those new forms of arrangements is that

parties may be more willing to use local content in their operations, in ways
that increase local benefits. Again, it should not be done at the expense of
the competitiveness of the industry.

Top Trends and opportunities for the Mining Industry in 2022 :

2022 is going to be another amazing year for the mining industry. Many
companies are looking to make improvements this year surrounding
sustainability and safety in particular. Here we look at five trends and
opportunities we will be seeing in 2022s mining sector.

1.Licence to operate :
Mining companies having a licence to operate allows them to contribute to
economies and communities as well as protection of heritage sites. LTO creates
value for the future of investors, and secures the operation.

2. Safety Innovation:
Safety innovations are becoming increasingly important not only due to the risks
in the mining industry but also because of the pandemic. Mine workers are at
an increased risk of lung conditions, and miners with these conditions are more

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likely to suffer the symptoms of covid, which makes precautions more
important.

3.Decarbonization :
Decarbonization is not only important for a sustainable future, but also
important for the investors in the mining industry. Most investors and
companies are moving away from thermal coal. Mining companies moving
towards decarbonization and net zero are currently reviewing their
technology, assets, and funding.

4.Workforce :
Mining companies are creating a better future for their workforce with better
career pathways and safe culture. Mining jobs are becoming increasingly
competitive which means jobs are becoming more beneficial for workers, with
mental health programs and quality training. For investors diversity in the
workforce is an important factor.

5.ESG :
ESG and sustainability is becoming increasingly important in every industry,
and is now a priority to investors and stakeholders. Mining companies are
doing more to make their projects and operations more sustainable. Some of
the most important factors to investors are water management, operation
closures, and biodiversity. Mines and Money in support of ESG in the mining
sector, had an ESG award at their event last year.

• NEW TECHNOLOGY AS PART OF THE NEW DEAL :

New technologies have impacts far wider than reduction in labour force. It is
possible that some of the beneficial impacts of new technologies could help to
offset or compensate other negative impacts from reduced local employment
and procurement. If shared or put to the benefit of local communities,
technological infrastructure:

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e.g., IT, energy- and water-saving technologies—can potentially provide gains
that minimize the negative impacts in the medium to long term, unlocking
economic opportunities that would not have otherwise been possible.
Access to energy through the sharing of mines’ energy generation or access to
water (resulting from the industry’s efforts to minimize the use of fresh water),
can provide scope for non-mining industrial activities, which can in turn provide
significant economic benefits.
In South Africa, Anglo American has developed a pathway to minimize (or
eliminate when possible) the use of fresh water from its mining processes. The
company has committed to reducing the use of fresh water in water-scarce
regions by 20 per cent10 and increasing its water recycling levels to 75 per cent
by 2020 (Leonida, 2019).
Water savings thus generated had helped to ease tensions over access to water
that emerged in 2016 in Limpopo province between agriculture and the mining
sector. The fully connected mine operation generates a great deal of data, and
if shared some of that may create benefits for local populations. Local
communities, for example, might benefit greatly from real time data on tailings
dam stability or effluent water quality.
Similarly, host governments might benefit from access to operational data that
would help them track quantities and qualities of final product; one of the
challenges in addressing base erosion and profit shifting is precisely accurately
verifying that data. In closing, it is worth underlining that none of the policy
options surveyed above is likely to be a perfect solution.
Some may address some challenges in some contexts. Further exploring their
various strengths and weaknesses will help policy-makers, mining companies
and affected communities better understand the options on the table and be
better prepared for the coming changes in the mining sector.

TRENDS IN DISEASE EPIDEMIOLOGY AND MINING PRACTICES :

The purpose of the Federal Coal Mine Health and Safety Act of 1969 was to
protect the health and safety of the nation's coal miners. The regulatory focus
on controlling the RCMD mass concentration and silica-mass concentration has
not changed over the past several decades.
That approach has been associated with a substantial decline in rates of coal
workers' pneumoconiosis (CWP) from 1970 to 2000 across all coal mining

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regions in the United States. However, since around the year 2000, an increase
in cases of rapidly progressive pneumoconiosis has been observed in various
hot-spot geographic areas.
Changes in mining practices and conditions (for example, increases in
equipment size and horsepower and mining increasingly thinner coal seams)
have resulted in an increased extraction of rock.
Crystalline silica, silicates, and other RCMD components contributed by rock
extraction likely play an important role in relationships between exposure and
health outcomes.
The requirements of the 2014 dust rule that went into effect on February 1,
2016, lowered the allowable airborne RCMD mass concentration in
underground mines. However, most miners incurred much of their exposures
when previous regulations were in effect.
Given that the latency period of CWP disease onset is typically 10 or more years,
sufficient time has not elapsed to assess the effect of the 2014 dust rule on
disease incidence.
It is important to note, that compliance with regulatory requirements by itself is
not an adequate indicator of the rule's effectiveness in protecting miners'
health.

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Conclusions :

New and current mining projects are expected to incorporate the lessons from
past mining activities and thus solve their detrimental colateral effects on
environment and public health.
As these effects often relate to contamination from tailings and acid mine
drainage produced during and after mining operations, the EIA of mining
projects should encompass the entire life cycle of the mine, should incorporate
the assessment of negative impacts and societal benefits also, and must
incorporate the liability and the cost – and thus make funding provisions timely
– for postmine environmental rehabilitation.
The rapid growth in mining receipts has also had an impact on the directly
affected industries and regional areas, as well as the rest of the economy.
Activity within the mining industry has spilled over into domestic activity
through its demand for labour, intermediate inputs (especially services) and
investment, its payment of taxes and royalties, and the boost to Australian
incomes through the ownership of mining equities.
Overall, the available data suggest a little over half of the total receipts from
current mining operations accrued to Australian residents, with around half the
value of mining investment also spent within Australia.

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Recommendation :
The statement of task asked the committee to identify important research gaps
regarding monitoring and sampling protocols for controlling miners' RCMD
exposures. The recommendations provided in this section include research and
development activities to address the gaps identified by the committee. It is
important to note, however, that the committee makes no recommendation
concerning the requirements of the 2014 dust rule or the implementation of
those requirements.

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