The mining industry needs to address the barriers initially, for paving the path for industrial revolution 4.0.
The global pandemic has changed the working dynamics across the industry. Specifically, the mining industry incurred maximum loss due to COVID 19. At the same time, the mining industry was undergoing a transition by adopting disruptive technologies in its operations. A report by World Economic Forum points out at the ways; the mining industry can prepare for the pandemic.
Embracing the Environmental, Social and Governance (ESG) Principle
Mining causes severe deforestation, environmental pollution and health hazards, which becomes perilous to the health of individuals. Without no proper guidelines or law established, it leads to the exploitation of nature. Due to its aggressive exploitation of the environment, the report points out that following the ESG principles have become imperative. ESG principles involve generation of social license to operate (SLO) so that only registered companies can conduct mining.
Integration of AI, Data analytics and Innovation across Mining
Just like other industries, disruptive technologies are impacting the mining sector as well. The mining companies are integrating AI-enabled robots to perform efficient mining. In contrast, big data analytics is incorporated for predictive analytics and determining the number of cycles required for extracting the metal. Similarly, automation is aiding to ease out the task of complex machinery and evaluate the data. The report points out that in the coming decade, these technologies will bolster the new era of innovation across the mining sector.
Impact of Supply chain and geopolitics
The mining industry is heavily governed by the supply chain and international relations globally. With the change in the geopolitical diaspora, a shift will also be observed in the supply chain and demand of many metals. The mining sector needs to be prepared to acknowledge these changes and proactively take measures that can maintain the metal supply chain.
Moving towards no Carbon Emission world
Due to the climate crisis, nations and big tech organizations are increasingly taking the pledge to make the world carbon-free by 2050. Additionally, organizations are working towards using renewable energy technologies to perform operations. Henceforth, organizations must take steps that maintain production of renewable energy. The report points out that the mining sector must remember that the critical factor limiting mineral extraction is not confined to physical challenges but also involves environmental, social and economic challenges as well.
Redefining Strategies due to COVID 19
The COVID 19 pandemic has presented opportunities for mining companies to re-evaluate their strategies pertaining to COVID 19 pandemic. Specifically, related to which metals they intend to invest in according to the changing global landscape. It has also made organizations focus on which projects they want to expand, and which projects they want to drop. As the mining sector is undergoing a transformation, it needs to be more vigilant about their investments, which can provide them with opportunities.
The preparation for any change embarks with understanding the current barrier that is thwarting the growth of a sector. Henceforth mining sector needs to primarily address the challenges hindering the development of industry, before deploying solutions for industrial revolution 4.0