Report: Mining Industry Sees Path to Decarbonization Through Existing Technologies

A recent report from ABB (STO:ABB) reveals that mining leaders are growing increasingly confident that the industry can decarbonize significantly using existing technologies.

For the report, titled "Mining’s Moment," the Swiss electrification and automation firm surveyed 412 mining leaders from 18 countries, asking for their perspectives on the future of the industry through 2050.

As mentioned, a key insight established by the report is the belief that substantial progress can be achieved without waiting for new innovations, an idea 70 percent of the participants agreed with.

Additionally, 77 percent of respondents said they view integrated electrification, automation and digitization as crucial elements in achieving sustainability objectives. Another significant portion — 53 percent of those surveyed — foresee a major transformation in their operations within the next five years.

“Early movers will be ahead of the market having learnt many lessons about low carbon operations,” said Max Luedtke, ABB’s global business line manager for mining. However, he acknowledged that while many leaders appear confident in reaching their sustainability targets, a minority are still grappling with various challenges.

The report from ABB, published on October 29, also identifies three key areas for investment to facilitate the transition: workforce development, technological advancements and process improvements.

A notable barrier identified by 44 percent of survey respondents is the lack of expertise and skills necessary for effective decarbonization. In response, 70 percent of mining companies are prioritizing the reskilling of existing employees to make sure they are equipped for the new demands of sustainable practices.

Furthermore, electrification is highlighted as a significant factor in achieving decarbonization. Approximately 91 percent of leaders assert that electrification is a fundamental component of their decarbonization strategies.

Investments in electric haulage fleets are on the rise, with 42 percent of respondents planning to decarbonize their fleets by 2026, and 68 percent aiming to electrify at least a quarter of their operations by 2030. The shift is expected to enhance operational efficiency, while significantly reducing carbon emissions — a key ESG goal.

Moreover, the mining sector is recognizing the increased importance of automation in boosting safety and efficiency. Automation reduces the need for human involvement in high-risk environments, thereby minimizing potential accidents.

Seventy-four percent of industry leaders view innovations in ventilation systems as critical for improving efficiency and sustainability. These advances not only contribute to safer working conditions, but also result in energy savings.

Digitization remains a key focus area, with the report indicating that the mining industry is still catching up to other sectors in terms of technological maturity. For instance, digital sensors and advanced monitoring solutions are increasingly being used to optimize energy consumption and enhance operational safety. The deployment of remotely controlled robotics is also facilitating safer working conditions, enabling operators to address risks from a safe distance.

The findings of the ABB report come at a pivotal time as the mining industry faces heightened scrutiny over its environmental impact. While the sector is tasked with supplying the critical raw materials necessary for green technologies, it equally bears the responsibility of reaching its goals through environmentally feasible methods.

The report condenses this dual responsibility: to provide essential resources for sustainable technologies, while concurrently adopting practices that mitigate their environmental impact.

Overall, 73 percent of survey respondents expressed excitement about the opportunities arising from the growing acceptance of mining's role in the green energy transition. The integration of technologies that support sustainable operations is seen not only as a business imperative, but also as a critical contribution to global sustainability efforts.

Despite the overall optimism, challenges remain. Approximately 46 percent of respondents indicated to ABB that operational disruptions pose a risk to their sustainable transformation efforts, indicating that more work needs to be done to ensure that the transition to greener practices does not compromise productivity.

As the mining industry navigates this transformative phase, the commitment to sustainability is reflected in the direction companies are going, as more and more industry leaders are becoming increasingly aware of the crucial role of decarbonization in creating sustained, long-term value for all stakeholders.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.