In an industry shaped by scarce resource, rapidly evolving technologies, and an ever-changing geopolitical landscape, one question remains: how can mining companies continue to innovate and adapt?
This question sat at the centre of a recent event hosted by Women in Mining UK, entitled “Operating and Innovating in a Changing World”. Listening to a panel of mining and geology experts, Senior Audit Manager, Christelle Limjap, was reminded not only of how dramatically the sector has transformed, but also of how much potential for innovation still lies ahead.
Geopolitical landscape in flux
A few hundred years ago, the mining industry looked fundamentally different from what it is today. The industry is defined by global supply‑and‑demand dynamics, with major actors such as China, the United States, and the European Union influencing the sector through distinct strategic approaches.
- The EU leaning heavily on carbon pricing regulations and sustainability frameworks;
- The US focusing on onshoring, supply-chain security, and tariffs, as reflected in recent policy trends; and
- China, whose role continuously evolves, from being a Foreign Direct Investment (FDI) recipient being a resource rich nation to a global investor, strategically positioning itself to control the raw materials through to the downstream industries.
As it stands, we are stepping into a new chapter of possibility driven by technology and Chinese investment. Coupled with fewer restrictions, China continuously demonstrates dominance over the value chain of critical minerals against the West. As a result, supply chain security has become political, and governments around the globe are seeking ways to secure stable access for their citizens.
Rethinking resources: What can geothermal energy bring?
When we think about mining, it is often associated with large quantities of earth moved, water extracted and energy consumed; in short, it comes with a great price. Throughout my career, I have seen firsthand how mining companies find ways to conserve costs through reusing and recycling resources that come as a by-product of the mining process. This is of course driven by sustainability concerns but also by monetary impact and the need to ensure that resources are used efficiently.
There is an increasing interest in utilising geothermal energy in mining especially at abandoned mines sites which provide a natural heat reservoir. The challenge is applying it with the limited experience that most countries have. In this sector, China has a lot to offer, being the leader in direct geothermal utilisation. However, to leverage on this, companies need to understand how they can manage this relationship with China to stay competitive in an increasingly innovative industry.
If we look at the UK alone, there is growing interest from the government to support such projects which would reduce the carbon footprint and align with the UK’s net zero ambition by 2050. In Glasgow, the Bodyheat project is converting human body heat from an event space, and producing approximately 800 kilowatts of thermal energy.
Similar concepts are being used in countries with geothermal resources, like Canada, Poland, Norway, China, Spain. While not identical to mine geothermal systems, this is definitely a technology that can be harnessed and where mining companies could make significant cost savings.
The exploration gap: Can technology bridge it?
Generally mining is not sustainable. Resources are finite, and exploration continues to remain risky and expensive. Over the last 10-15 years, global spend on exploration and drilling has fallen, and yet without exploration, no new resources can be found.
Looking solely at the UK, this is especially evident. Around 300-500 years ago the country was thriving with mines producing tin and many other minerals, but exploration slowly declined and moved elsewhere. In more recent years we have seen mines returning to the UK and reopening in regions such as Cornwall.
With the global challenge that we’re facing with regard to cost and uncertainty of exploration, how can technology come into play? When we talk about innovation, one technology dominates the conversation and that is Artificial Intelligence (AI). There has been growing interest in using AI, data and algorithms to reassess current and the historical resource and reserve data of mining companies. Data is key for digital transformation. This a process that is not only a theoretical feasibility but has already reaped significant monetary rewards in the mining sector.
A new era for mining
Indeed, the mining sector is increasingly dynamic, driven by political agendas as world leaders work to secure reliable access to critical minerals. In this context, companies need to take a moment to reflect and understand the emerging risks and how innovations such as geothermal and AI can support the industry as it continues to transform. For companies that want to automate, understanding how they break traditional processes are critical.
We are entering a new era defined by technology advancement, shifts in the geopolitical landscape, resource competition and decarbonisation as countries prioritise sustainability. The ability of mining companies to innovate and adapt plays a crucial role in ensuring that they stay in this game of trade-offs while remaining resilient in an ever-changing world.
For more information, please contact Imogen Massey or Christelle Limjap.
