Australia is a globally significant producer of many critical minerals like nickel, cobalt, manganese ore, rare earth elements, tungsten, and vanadium, and our resources sector remains the single largest contributor to our economy, providing the raw materials for economic growth across the globe. However, the sector is now entering an era of significant change.
Organisations in the sector are under increasing pressure from consumers, governments and other authorities to demonstrate adherence to a growing list of environmental, sustainability and governance (ESG) requirements. Escalating demand for rare earth materials is shifting the focus of the sector as a whole, and we’re seeing the emergence of a raft of new, agile players in the market.
Despite decades of growth – or perhaps because of it – many mining organisations are lagging with their overall digital transformation, especially with the emergence of new technologies such as AI and data ecosystems.
Increasing ESG requirements
The need for the resources and mining sector to reduce its carbon emissions and operate more sustainably is widely acknowledged. Almost half of the sector’s leaders say ESG concerns represent the biggest risk to the industry.
While many mining and resources organisations are taking steps in the right direction, the lack of robust digital measurement and reporting tools remains a major handbrake. To retain a competitive advantage – and a social licence to operate - organisations will need to be able to automatically and proactively measure outputs, set targets, optimise processes and proactively lower emissions while scaling to meet the global demand for rare earth materials.
Through leveraging Climate AI to power their climate action strategy, mining companies can address many of the ESG pressures they face. According to Capgemini research, AI-enabled use cases have reduced greenhouse gas emissions by 13% and improved power efficiency by 11% within just two years across sectors.
Shifting demand for rare earth materials
The world’s reliance on critical minerals and materials – such as copper, lithium, nickel, cobalt and other rare earth elements, is increasing exponentially. Uptake of green technologies and battery storage means demand for rare earth materials has doubled and this is shifting the focus of the resources sector as a whole – and especially here in Australia.
Rare earth materials come with a raft of environmental challenges, necessitating optimised processes, automated measurement and digital controls while maintaining sustainable operations. We’re also seeing the emergence of smaller, more agile mining organisations with niche areas of focus, which threaten to take significant market share from more established players.
In order to meet global demand for Australian resources while retaining market share, mining leaders may want to consider creating a Digital Twin of their products, processes, and systems. A digital twin can not only provide insight into how dynamic, real-world systems are currently performing and suggest improvements but can also predict how they will perform in various scenarios.
Efficiencies from process optimisation
Despite considerable progress in recent years, the mining and resources sector is generally lagging in its digital transformation. Many mines, resource facilities, and minerals processing plants lack visibility and real-time access to operational data, and several still use paper as part of their core processes. Without the right information and insights, it becomes difficult for operators to spot inefficiencies - and easy for problems to escalate.
