The mining industry has come a long way since its inception and has turned its attention to the future and faces all kinds of risks relating to this business. The mining industry comes with its many risks which face both mining and metals come this 2017-2018. Among some of the biggest concerns are the underground mining technology, digital effectiveness, cyber risks, and regulatory policy. New risks are popping up every day on the mining industry field and companies are finding it stressful to try and keep up with these risks which, if left unchecked, can end up causing a lot of damage to the business or even end up shutting the whole company down.
Let’s dive in and take a look at ten of the biggest risks that affect the mining industry this 2018.
Mining companies have gone digital with the aim of improving their productivity levels and margin across their value chain. Digital mining isn’t a new concept in the mining industry, but with the way the need for technology is shifting, the industry won’t consider it as much in cases of productivity where companies now risk falling competition-wise unless they stay at the forefront of the current technological change.
Cybercrime is now arguably the biggest threat that the mining industry faces currently. And it continues to grow by the day with the way companies are now becoming more and more focused on data collection through Big Data and IoT. Ultimately, these companies become more reliant on the data they collect which, in turn, also breeds the new culture of cyber-attacks. All the mining companies in the industry now need to have clear and cyber-proof digital road maps which incorporate cyber threat programs into their systems to find and head-off any attacks like these.
Competitive shareholder attacks
Loads of cash are ever exchanging hands and being generated in the mining industry which has also seen an increase in the competitive shareholder returns. The level of shareholder activism is currently also on the rise and companies now need to differentiate themselves from the rest by ensuring they make good capital investments plus get good returns in the process. It is becoming harder and harder to try and balance the short-term shareholder returns with their long-term value.
The overall regulatory space found in the mining industry is a forever-changing one and with change comes challenge. Governments are now looking, demanding rather, greater results from their natural resources sectors which are in their jurisdiction. Governments are squabbling on how each can govern the mining industry.
Optimization and access to energy
The mining and minerals-processing operations currently demand large quantities of electricity and the remote area mining operations are now more challenged by the development, maintenance, and operations of the stand-alone power systems. Companies are now opting for a mix of some of the energy sources like hydroelectricity, fossil-fuels, and renewable energy to try and minimize this fuel price volatility issue and ensure that supply keeps flowing through.