Tag Archives: EY

United thinking on mining, water solutions can save money and protect the environment, Worley says

Base metals, Environmental, Mining services, Sustainable mining, Water management, , , , , , , , , , , , ,

Today, the need for extraction and refinement of copper and other transition materials is essential to world development, as we navigate a transition to more sustainable energy technologies, Saleem Varghese and Carola Sepulveda* write. But as its importance has grown, copper ore grades have decreased at a rate of approximately 25% over the last decade – increasing demand pressures on the commodity – meaning miners need to process more material to achieve the same output.

Today’s copper mines also need a lot of water. A 50,000 t/d ore copper mine will consume around 30,000 cu.m/d of fresh water. This isn’t a problem in some geographies, but it’s critical to the viability of operations in some of the most copper-rich regions on earth, such as the Americas.

Copper miners in the Americas are united by the need to secure their water supply, reduce water consumption and manage their environmental impacts. What can they do to overcome these interrelated challenges, while meeting their production targets?

Where are we now?

Mining and processing depend on vast amounts of water, and for South American miners this leads to complications. The copper mines of the Americas are frequently located in arid and mountainous regions where water is scarce. Indeed Chile, a leading copper mining nation, is currently enduring a ‘mega-drought’ of 13 years and counting. Here, water is a national security issue, leaving some rural communities reliant on tankers to supply fresh drinking water.

This importance is recognised by miners as well, with local community impact and water management being the industry’s top ESG risks, concerning 78% and 76% of respondents, respectively, according to research by EY.

Indeed, by 2040, all Chilean copper mines are expected to be in areas suffering from water stress. Likewise, water efficiency is increasingly becoming a serious problem, with the water-energy nexus shifting and water becoming more expensive. For water-intensive mining processes, lack of access and an increasing price per litre can be potentially difficult hurdles to overcome.

For modern copper miners, there is a historic separation between mining and water operations which must be reengineered to improve water access and use. As mines see their speed to market and output slowed due to water stress, there are three key challenges which, if solved, will help the industry as it extracts the materials to electrify the world. Only by managing water and mining operations together and bringing in collaborative expertise, can miners tackle the challenges before them and deliver at pace.

Understanding the three critical factors for mining success

Water management is the key ESG factor copper miners face today, and this manifests in three key issues: one historic, one present and one which poses a challenge now and will only get worse.

The first challenge is securing a reliable water supply.

The second challenge is reducing water consumption and increasing water efficiency, to ease pressure on water supply.

And the third challenge is minimising environmental risks.

Overall, water issues could affect the viability of mining projects in many regions around the world. Mining operations require significant amounts of water for processes including mineral extraction, ore processing, dust suppression and more. However, in many areas such as in Latin America water is becoming scarce due to drought, climate change and overuse.

Supplying modern mines

To supply mines and refining plants, mines have recently moved away from shared groundwater supplies to desalinated water. Desalination is more expensive but offers less impact on local communities and environment. Given that mines in the Americas are usually distant from the coast and at higher altitudes, desalination represents a difficult challenge for engineers to make feasible. Alternatively, to secure groundwater lifting licences, consumption needs to be effectively managed, and any water put back into the environment must be treated effectively.

Solving the supply challenge by altering water consumption

In effect, the first problem, supply, can be eased by tackling the second issue: water consumption. If supply is the historical issue, using water more efficiently to alter consumption is the issue of today. Whether it’s water use in particle flotation or lost in tailings slurries (for transportation and storage), making sure these processes are done as economically, efficiently and sustainably as possible is key. This is where new technologies and solutions come in.

An example of this is seen in the storage of tailings. Where water cost and procurement are not an issue in different locales and climates, the storage of tailings in a slurry form is common. In arid conditions where water resources are strained, the economic sense behind storage slurries evaporates. Slurries not only take water out of the operational system and into a closed storage system (which will need to be replaced), but it also allows the potential for water loss through evaporation and seepage.

Dry storage techniques – which have increased in scale in recent years – are the obvious solution with greater water reclamation from tailings and increased safety in storage. Moreover, high-altitude mines and liquid-based storage pose a potential risk to those downstream, making dry storage safer and more effective.

Copper tailings from an old mine that are deposited between rock berms that help contain the sediment

Another example of reducing consumption can be through greater efficiency when appraising the ores to be processed. This can be done with advanced ore sorting technologies such as those offered by NextOre, a cutting-edge technology able to provide real-time analysis of newly extracted ores. Rather than typical analysis methods which can detect mineral particles at or near the surface of ore, NextOre’s magnetic resonance technology can evaluate and sort much coarser ore with accuracy and speed. This allows miners to selectively remove the waste or lower grade material before it enters the processing plant – ultimately saving water, with only the best ore to be utilised.

A common misconception about water projects is that they are expensive and require significant resources to implement. While water projects can be costly, it is important to consider the long-term benefits that they bring, such as increased water availability, environmental impact mitigation, improved access to clean water for communities, and further growth for industry.

Saving water, and protecting the local environment

The third issue, which is increasing in importance by the day, is managing the risk of localised environmental issues, especially acid mine drainage that can contaminate the natural environment.

This is an issue that is only going to become harder to tackle as the ores we are required to mine become lower grade and the ability to avoid sulphur-forming ores is lost. In this respect, new technologies can help as more challenging ores are treated.

Overall, the challenges faced by the industry cannot be addressed by a single solution, or by siloed teams attacking from all angles. A unified, collaborative approach will be needed for the best results.

The design and implementation of a water management approach should be tailored to the specific mine site needs and context of the community and stakeholders involved. For projects to succeed in the future, they must integrate mining, water and environmental capability under one roof – from front-end studies to delivery, and operations through end-of-life. Miners will benefit from working with a collaborative partner to consider mining operations and water issues holistically, and how new mining technologies can operate synergistically to help tackle these water challenges.

Why internal and external collaboration is key for businesses

The mining industry will struggle to solve its water challenges alone. And it doesn’t need to. The complexity of modern mine operations – and need for diversified expertise – simply reflects the scale of the energy transition, and the need to continuously improve environmental outcomes to maintain the social licence to operate.

The answer is not straightforward and requires a deep understanding of operations, mining, water management and the surrounding community. Collaboration needs to be coordinated to develop and implement real solutions for the enduring issues facing miners.

If done right, copper mining will bring lasting value to communities through low-impact operations that share the benefits of water infrastructure and provide meaningful local economic contributions. This is the responsible way to ensure we deliver the copper our world desperately needs.

*Saleem Varghese is Copper Growth Lead at Worley, while Carola Sepulveda is Water for Mining Lead, Peru, at Worley

Exyn’s drone-based mining autonomy ambitions taking flight

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Having already achieved the highest documented level of aerial autonomy – level 4A – with its drone-based solutions, Exyn Technologies is striving for further industry firsts, Raffi Jabrayan, VP of Business Development and Commercial Sales, says.

One of its more recent breakthroughs came in Germany at the K+S’ Werra mine site, where a team demonstrated the use of the ExynAero™ and ExynPak™ at an underground salt mine.

Over the course of three days underground, Exyn’s field engineers successfully flew multiple autonomous missions in hard-to-reach areas while capturing rich, high-fidelity point clouds in a fraction of the time it would take traditional cavity monitoring systems, according to the company.

Jabrayan explained: “Several drone companies had previously attempted an autonomous mission to scan the immense cavities this specific site has, but the dust interference meant most of these missions ended within seconds.

“We were able to fly in some cavities completely beyond visual line of sight, mapping areas in a fraction of the time the teams would normally take for such manual inspections. In all, we were able to carry out a six-minute autonomous flight at the site.”

While the company did not carry out any specific modifications to its ExynAero platform to conduct such a flight, Jabrayan acknowledged that ongoing design and software improvements over the last year had enabled the company to accurately detect both dust and thin wires underground.

In addition to this, the company also displayed the capabilities of its handheld ExynPak solutions while on site in Germany.

The ExynPak, according to Exyn, can provide the world’s first real-time colourised point cloud visualisation on a handheld LIDAR scanner, capturing precise, colourised 3D models 20-30 times faster than a traditional stationery tripod or terrestrial scanner.

Powered by ExynAI™, the ExynPak ‘drapes’ real-time RGB information captured through two hemispherical fixed cameras onto point clouds created by a gimballed Velodyne LIDAR Puck LITE, providing operators a complete colourised 360° view of their environment, Exyn says.

At the Werra mine site, the Exyn team was able to capture a colourised cloud where the stratification of the rock could be clearly seen in the scan, enabling the K+S team to obtain data it would likely never be able to replicate in any other way, according to the company.

Jabrayan says such information could see operators plan their mining processes around the colourised captures, following mineralisation identified by the scans to ensure no economic ore had been missed after mucking out.

At the Werra mine site, Exyn’s field engineers successfully flew multiple autonomous missions in hard-to-reach areas while capturing rich, high-fidelity point clouds in a fraction of the time it would take traditional cavity monitoring systems

 

The ExynPak is likely to become a core part of Exyn’s next aerial autonomy offering for open-pit mining, powered by ExynAI, which enables safe flight in the most dangerous industrial environments.

“We have done some work in terms of moving our flights to the surface,” Jabrayan said. “It could cover various aspects – tailings monitoring, highwall scans…there are lots of requirements for it. We are actively working on integrating GPS into our ExynAI stack for outdoor autonomous flights, however, it’s not ready to be pushed to customers just yet.”

The company is currently working on surveys of ground-based resources, such as stockpiles, using a handheld ExynPak, plus carrying out aerial flights in manual mode.

Reaching the level of autonomy it has underground will most likely involve the help of its collaboration partner, EY, and a third company providing “software and visualisation input”, Jabrayan says, adding that he expects to see this autonomous solution come to light in 2023.

Earlier this year, Exyn, in partnership with Maestro Digital Mine, presented an aerial drone fitted with a Maestro gas monitoring Industrial Internet of Things (IIoT) device.

This new gas monitoring drone, which integrates critical gas sensors onto the ExynAero and ExynPak platforms, is effectively the “quickest and safest mobile gas monitor on the planet”, Michael Gribbons, CEO and Co-founder for Maestro, said.

Powered by ExynAI’s multi-sensor fusion capabilities, gas sensor readings are captured while the robot is in flight and displayed in real time via a ruggedised tablet, Exyn explained. These sensor readings are saved with precise coordinates in a high-fidelity point cloud that can be exported and examined in a variety of mining software.

Jabrayan says a lot of mines have reached out to the companies since first presenting the solution at the SME MineXchange Annual Conference & Expo in Salt Lake City, earlier this year.

“They are interested in the benefits such a solution could provide in terms of safety and productivity,” he said. “By flying the gas sensing drone underground soon after a blast, it could take the necessary readings and issue a notice to another system that it is safe to re-enter the area.”

This could see more mines shift away from re-entry processes based on out-of-date manual gas readings, to a system that is much more accurate and shaves – potentially – hours off operational downtime.

Exyn is closing in on a long-term trial agreement with at least one miner in Australia looking to test out this gas-sensing drone solution, according to Jabrayan.

“The long-term plan is to develop a drone-in-a-box solution that can reside underground and be flown immediately after a blast to offer the quickest possible readings,” he said. “Remote autonomous mapping of this type could see Exyn provide data to shift operators as they are heading underground, allowing them to get a picture of the environment ahead of reaching the location.”

The incorporation of such data into mine site operational processes could see drone-based solutions become vital to the running of mines in the future, and Exyn, through its post-processing pipeline, ExSLAM, is looking to enable this.

ExSLAM extracts the raw cloud from robot logs and refines it for third-party software, using a factor graph optimisation algorithm to create low-drift point cloud maps.

Jabrayan says the company continually receives plaudits from customers about the ease of use of this solution, explaining that Exyn is one of the few companies that georeferences its maps inside an existing coordinate frame.

“From there, we are able to detect all the survey points, download them, georeference them and push the data to any end-user software,” he said.

Exyn, Jabrayan says, is software agnostic when it comes to this process, but he did admit the company was in advanced talks with some leading mining software companies that could see its mapping data integrated directly into their platforms.

“We are also working with certain companies to use robotic process automation to make it a one-button process to scan, go directly into the end-user software, and create a mesh that can be used,” he said.

“We remain focused on using our technology and R&D to provide the best solution to customers in order for them to be as productive as possible and, of course, work in a more efficient and safe manner.”

EY addresses Americas mining and metals company needs with new Centre of Excellence

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EY Canada has announced the launch of an EY Americas Mining and Metals Centre of Excellence that, it says, will offer companies across the Americas access to cutting-edge services and innovation-led solutions that meet the most pressing needs of mining and metals businesses, today and in the future.

“Post-COVID-19 investments in infrastructure, combined with demand to sustain the energy transition, will drive significant growth in the mining and metals sector over the next three to five years,” Theo Yameogo, EY Americas Mining and Metals Leader and the man leading the centre’s charge, said. “But capitalising on these opportunities is going to require a major pivot – and we want to be there to support companies as they navigate the path forward. While working cross-collaboratively with our colleagues in the Americas to combine our business and technical expertise with emerging technologies, the centre will ground us under one unified vision to help companies drive meaningful and long-term growth.”

Powered by EY wavespaceTM, the centre’s integrated, business-led and technology-enabled approach will, EY says, support the growth ambitions of mining and metals companies by focusing on four key areas:

  • Technical expertise: bringing advanced knowledge and understanding of the unique business landscape, including reserves and resources, mine planning and tailings management;
  • Digital transformation: connecting the dots to link investments to value realisation through strategic roadmaps, prioritisation of initiatives and disciplined execution;
  • Operations management: improving efficiency and productivity in operations through data-driven diagnostics, culture uplift and integrated planning and execution; and
  • Decarbonisation and ESG: supporting adoption of carbon footprint analytics, greater energy optimisation and increased health and safety.

Jad Shimaly, EY Canada Chairman and CEO, said: “The mining and metals industry is an integral part of our Canadian fabric, and is poised to be an increasing contributor to job and economic recovery moving forward.

“We’re excited the centre will allow us to play a role in enabling Canada’s journey in the energy transition, while supporting mining and metals companies as they look to develop innovative and sustainable solutions that deliver long-term value for stakeholders.”

The first Americas Mining and Metals Centre of Excellence will be hosted in Canada, with an additional location operating in Latin America later this year, according to the company.

IMDEX evaluates the mining industry’s emerging trends

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IMDEX says its global footprint in key mining regions throughout the world gives it an important glimpse of the some of the emerging trends and challenges facing the sector, trends that were taking shape prior to the onset of COVID-19.

Leveraging technology, or, more specifically, the cloud, is one development the Australia-based company has noted in recent years.

“The global minerals industry has turned to technology to improve safety, enhance efficiencies and reduce the cost of exploration and extraction,” it said.

When people think about innovation, most minds turn to autonomous haulage or remote operations, but there is an enabler to this innovation, according to IMDEX: the cloud.

Companies, not least of which those in the mining services and resources sector, are utilising cloud platforms to store data remotely and retrieve it via the internet. Remote mining operations using an array of software, sensors and communications are becoming routine because of these systems, IMDEX says.

But the cloud also provides the opportunity to improve productivity.

IMDEX General Manager, Product Development, Dr Michelle Carey, said clients were increasingly wanting to use the cloud because it enabled them to get data faster and in real time.

“We refer to it as the single source of truth,” Dr Carey said. “Accurate, reliable data delivered in real time that can be seen simultaneously by many people, which then enables real-time decision making.

“It also means there are no issues about the chain of custody. Using the cloud gives clients the confidence that no-one has tampered with the data so they can make decisions based on data they trust.”

Business’ enormous appetite for the collection and storage of data is making these platforms increasingly popular, according to IMDEX. A decade ago, it would have been unthinkable that companies would be sharing computing and IT resources over the internet. “Today the cloud is a business imperative,” it said.

The resources sector, once satisfied its concerns regarding access and data security were met, have been quick to capitalise on cloud computing.

Cloud computing of course does have its downside (similar to any technology). To work properly, cloud systems require reliable internet access. That is increasingly becoming essential on even the most remote mine sites.

EY’s September 2019 poll of mining executives indicated that ensuring digital (and data) effectiveness continues to rank within the top risks for their respective organisations. EY also noted further that cloud-related investment will account for the largest share of technology spend (over the next two years) in more than 50% of companies.

IMDEX has been in the cloud for over 10 years and is renowned for its real-time, subsurface intelligence solutions with numerous sensors on the drill site, at the core farm and increasingly on the bench collecting high-quality data, it said.

These technologies can be connected to IMDEXHUB-IQ™ – a cloud-based web portal that collects, stores and provides critical operational data. This data is protected through a validated chain of custody and a secure database, accessible from any internet connection to smart phone, tablet or PC, according to IMDEX.

Social licence to operate

According to IMDEX, the notion of licence to operate is evolving, with society expecting more from organisations.

“Once, companies in the minerals and resources sector focused primarily on ensuring compliant operations,” IMDEX said. “Today, compliance is just ‘step-one’… the minimum standard.”

The company added: “External stakeholders are scrutinising companies more than ever; how an organisation is managing environmental responsibilities and the health and safety of their workforce. They are insisting on local content and strong community investment; ensuring there’s support for local indigenous communities and that a company is committed to addressing climate change.”

The effective management of these requirements ensures the community will have confidence in an organisation, granting their social licence because they trust the company.

Earning trust and confidence is seeing a shift in how organisations structure the management of community stakeholders, according to IMDEX.

IMDEX said it will include additional economic, environmental and social impacts of its activities in its 2020 annual report, with the aim of preparing a sustainability report in accordance with Global Reporting Initiative standards within three years.

Dr Carey said IMDEX already had a suite of products and services that supported the sustainable operation of mining industry stakeholders.

“Our technologies improve productivity by providing information that affects decisions throughout the life of the mine, but they also have sustainability and environmental benefits,” Dr Carey said.

“The technologies enable clients to understand material properties accurately at a finer scale, and in real-time, enabling them to mine with less waste and process ore more effectively.

“Improved precision in exploration, drilling programs and mining means a reduction in waste. Things like our Solids Removal Units and BOS tool means reducing the use of water during the drilling and the size of the footprint disturbed during drilling.”

Mine electrification hinged on reskilling, collaboration and mine design, EY says

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A recent survey of miners and mining original equipment manufacturers (OEMs) has shown that electrification of mines offers a lot more than lower carbon emissions and improved worker benefits.

The survey, commissioned by EY and conducted by the Sustainable Minerals Institute at The University of Queensland (Australia) and The Norman B. Keevil Institute of Mining Engineering at The University of British Columbia (Canada), deduced that reaping the full benefits of an electricity-powered mining future would require “reskilling, reaching out across sectors and rethinking the fundamentals of mine design”, EY said.

Paul Mitchell, EY Global Mining and Metals Leader, said the mining sector was on the verge of an electrification revolution, driven by significant cost reduction potential, lowered carbon emissions and improved worker health benefits.

“This is critically important, given the World Health Organisation has declared that diesel particulates now belong in the same deadly category as asbestos, arsenic and mustard gas,” he said.

Four key themes emerged from the survey, according to EY.

  • Electrified mines improve economics and strengthen licence to operate;
  • Collaboration will unlock better electrification solutions;
  • Mine design needs a rethink to build in optionality for future innovation, and;
  • Electrification needs different skills, and advances technology deployment.

EY explained these four in more detail:

“Demand for carbon reduction in the sector is inevitable, and electrification is one way to achieve it,” the company said. “Diesel engines cannot be replaced with carbon-generating electricity and therefore electrification needs to be accompanied with a move to renewable power.

“The survey finds that electrification reduces not only operational costs, but also up-front capital costs because it reduces the infrastructure needs of ventilation shafts in underground mines. More significantly, the reduction of diesel particulates results in improvement to worker health and safety.”

Partnerships and co-creation of solutions with OEMs, other mining companies and governments are needed to successfully integrate electrification in mines, according to EY.

“The survey finds that, in the case of electrification, miners are clear that they can’t go it alone. This is leading to a more open perspective around the role of suppliers as strategic partners, which expands the possibilities for miners to benefit through innovation, cost reduction and competitive advantage.”

Newmont Goldcorp has taken such an approach at its Borden gold project, in Ontario, Canada – partnering with Sandvik and MacLean Engineering on developing what it says will be the world’s first all-electric underground mine – while Nouveau Monde Graphite has built up a taskforce of its own to progress its plans for an all-electric open-pit graphite mine in Quebec, Canada.

In terms of mine design, decoupling mines from diesel is not an easy task. This is due to the diverse range of technical and financial challenges in mining various deposits.

EY said: “Getting full value out of electrification requires a thorough consideration and understanding of the technology road map, in parallel with the strategic plan for the mine. The survey highlights the need for a phased implementation with a flexible design that provides for technology improvements of the future.”

And, lastly, mine electrification will require different worker skills as it enables other advanced technologies, requiring less maintenance and human intervention, according to EY.

“Analysis of the survey findings reveals there will be increasing demand for data and digital literacy skills across all phases of the mining value chain, as the human-to-machine interface evolves and becomes more prevalent,” the company said. “In developing economies, this means challenging the assumption that a mine provides employment only for people doing physical labour.”

Mitchell added: “It is important to start thinking about building agility into mine design to leverage the potential benefits in asset flexibility, lower ventilation requirements and the human footprint.

“The future of electrification in mines requires a paradigm shift in thinking – from existing known and proven technologies to new emerging technologies. We must realise that the challenges of the sector can be solved faster by collaboration – and a robust strategy, underpinned by gaining the right capabilities and an agile approach, is critical.”

Technology revolution set to transform mining jobs in Australia: EY report

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Innovation, people and skills combined with technological advances will deliver a more globally competitive minerals sector that delivers fulfilling careers in highly paid, high-skilled jobs, according to a report released by accountancy firm EY.

The release of EY’s Skills Map for the Future of Work – commissioned by the Minerals Council of Australia (MCA) – provides a comprehensive examination of future skills and training and technology trends in the Australian minerals industry, according to the MCA.

The key findings by EY, according to MCA, include:

  • Seventy-seven per cent of jobs in Australia mining will be enhanced or redesigned due to technology within the next five years;
  • Productivity increases up to 23% can be achieved with the rollout of new technologies, costing more than A$35 billion ($25 billion);
  • An injection of A$5 billion to A$13 billion in workforce capability will be needed over the next decade to unlock future productivity gains, and;
  • Australia education and training systems need to be modernised to deliver higher certification and fit-for-purpose degrees.

“New technology and innovative practices will enhance the performance and productivity of 42% of Australian mining jobs, with a further 35% of occupations being redesigned and up-skilled leading to more valuable employment opportunities,” MCA said. “Automation will give the opportunity for reskilling into other areas.”

EY’s study also identified Australia’s education and training system needs to be modernised by offering improved course structures and enhanced movement between universities and the vocational education sectors, according to the MCA.

“Future university degrees will need to have a mix of the latest scientific, technical and trade skills along with soft skills including collaboration, team building, communication and creativity,” the council said.

“A decade-long investment by industry and government in general skills incorporating mathematics, data analytics, computing and change management will boost productivity in the minerals sector.”

Jobs that will be made future-ready through large investments will include metal fitters, machinists, building and engineering technical and experts in electronics and mechatronics, the MCA added. “For example, a shot-firer working on a drilling team will have the opportunity in Australia’s future minerals workforce to use drone technology to monitor automated rigs.”

The MCA said: “Australian mining will continue to take advantage of innovation, technology and new ways of working to create high-paying, high skilled jobs.”

The Skills Map includes two major reports: The Future of Work: the Changing Skills Landscape for Miners and The Future of Work: The economic implications of technology and digital mining.

Annual EY mining business risks report ranks licence to operate at top

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More than half (54%) of global mining companies rank licence to operate (LTO) as the biggest risk to their business, according to the 11th annual EY Top 10 business risks facing mining and metals in 2019-2020 report. The survey of more than 250 global mining executives sees LTO climb six places to first position amid rising nationalism, changing community perceptions of mining operations and the impact of automation on the workforce.

With the sector seeking to redefine its image as a sustainable and responsible source of the world’s minerals, the report cites rising societal expectations, the impact of advancing technology on stakeholders and a need for greater collaboration with all stakeholder groups as drivers for escalating risk.

Paul Mitchell, EY Global Mining & Metals Advisory Leader, says:  “Licence to operate has evolved beyond the narrow focus of societal and environmental issues. There are now increasing expectations of shared value outcomes from mining projects. Any misstep can impact the ability to access capital or even result in a complete loss of license – particularly in light of the increased use of social media, which makes potentially negative publicity more globally visible than ever. Miners need to take responsibility for helping to overhaul the image of the industry by communicating the value they are adding to local communities and economies, and by working to ensure that key stakeholders are taken along on the journey.”

Last year’s top risk, “Digital effectiveness,” falls one position to second place in the 2019-2020 ranking. The implementation of digital remains a key challenge to the sector. While miners are making significant strides in applying digital solutions to single issues, the findings indicate that they are failing to do so across the whole value chain. Indeed, 72% of respondents say they are investing 5% or less of their budgets on digital. Meanwhile, a recent EY poll of more than 600 mining and metals executives, found that 37% of management have little or no knowledge of the digital landscape.

Mitchell says: “The stark reality is that digital is the key to achieving sustainable productivity and margin improvement for mining businesses. It is, therefore, not the time to stand still in an age of turbocharged business transformation that is largely driven by digital. To respond to disruption across the sector, businesses need to adopt an end-to-end digital program.”

Disruption is a new entrant to the report ranking, entering at eighth position. With automation already disrupting workforces, and 31% of respondents stating that technology companies have the potential to play a more dominate role in the sector, disruption is pervasive throughout this year’s top 10 risks.

Mitchell says: “We are now in an era of constant disruption, and it is coming from unexpected places. Instead of seeing it as a threat, mining businesses should see it as a great opportunity to innovate, collaborate, evolve and thrive. If dominant players respond slowly or ineffectively to sector and external changes, market leadership could be lost as newer participants such as technology companies and sovereign states make inroads.”