The future of energy and mining: how to produce more reliably, sustainably and affordably in the digital age

To build a more sustainable future, the search for new sources of clean energy is at the center of attention of governments, industries and companies around the world. More than 70% of the world's greenhouse gas emissions come from energy production for electricity generation, transport and heating. About 10% of these emissions come from fugitive sources alone. Traditional businesses are no longer an option in the face of the shadow of climate change. In this context, the use of new technologies has proved to be an essential way for companies to rethink their business in order to obtain more sustainable, safe and efficient operations.

Any business transition must consider mining as around 45% of the world's economic activity is driven by this sector alone. This will only grow as demand for clean energy increases and minerals gain even more relevance as critical components of batteries, turbines, electric vehicle engines and electrical grids. According to the World Bank, demand for these raw materials will grow by around 500% by 2050. The mining industry knows that the world is watching and that, following COP26, it has a key role to play in putting climate change back on track. right. For this reason, major mining companies have committed to being “net zero” for Scope 1 and 2 emissions by 2050 and some are also targeting Scope 3.

So how can the demand for more energy and more raw materials be met in a sustainable way that secures the future of the world we live in? In simple terms, we need to do more with less. We must move from a linear economy that relies on mass extraction and low-cost, inefficient transport through global supply chains to a circular economy that will require less carbon, less waste, less water, less damage, and more transparency. According to Deloitte, the next decade will witness some of the most exciting and transformative years in the history of the mining industry. Some of these changes, for example, are driven by the ongoing impact of the COVID-19 pandemic and the growing need to integrate environmental, social and governance (ESG) commitments with core business functions. However, the way companies design and operate their facilities and interact with their ecosystems is also changing.

Dependence on virtual worlds before committing to the real world will become the new normal. the application of Virtual Twins (Virtual Twins) and 3D experiences bring unparalleled collaboration and intelligent data analysis, as well as reliable modeling and simulation. Not only that, but by being delivered on an integrated technology platform, business processes and resources can run with true confidence. It is a case of “ensuring that someone does something somewhere at a certain time”. It is this same vision that will make Artificial Intelligence, automation and autonomous mining more popular.

Digitization of this kind is not only applicable for achieving sustainability around production systems, but also for processing, supply, governance, rehabilitation and many other areas of business. Typical benefits include potential 10% increase in geological asset value, reduction in project development time by approximately 50%, 60% reduction in late detection of errors, and approximately 35% reduction in resource wastage. 

Improved quality and security of supply will provide important additional benefits. All of this results in much more sustainable operations that are likely to be more profitable as well. Encouragingly, most analyzes show that solutions to decarbonize most emissions will become more cost-effective this decade, addressing both scope 1 and scope 2 emissions. Deploying Virtual Twins allows companies to better invest in their projects development and operations with confidence, knowing that potential risks have already been overcome before they are encountered in the real world.

The way energy is generated and how the minerals needed to support this generation are produced is undergoing a major shift away from centralized, large-scale generation and extraction facilities to more localized and modular supply. The same technologies advocated for mining are already being used in other sectors – for example, to design and operate the meticulously governed nuclear industry, where new, small modular reactors are being favored for their relatively quick and less risky construction as opposed to mega energy installations of the past. Similarly, in mining, an increasing number of smaller precision extraction ventures are emerging that require less infrastructure, energy and other resources than the bulk mining operations of yesteryear, which typically produce three times more waste than ore of interest.

The generation and use of energy are more integrated than in the past, and the sourcing of raw materials and the manufacture of associated products follow a similar pattern. Geopolitical conflicts and the pandemic proved to be the wake-up call industries needed. It stands to reason that some mining companies are looking to develop localized power generation and, in some cases, manufacture end-user products at the source, rather than relying on external networks and elongated supply chains.

The desire to operate more sustainably is being driven on several fronts. The United Nations Sustainable Development Goals (SDGs), the World Bank's Climate-Smart Mining initiative, and the principles of the International Council on Mining and Metals have set the standard that the mining world has chosen to achieve. This ambition goes far beyond addressing climate change, addressing all aspects of a sustainable planet. It is really about harmonizing product, nature and life and requires a special approach.