One trend that is characteristic of the entire sector is that it is becoming increasingly difficult to start a new project. In addition to permits, which have become more complex, mining costs have risen substantially. Part of that last point is due to inflation. Significantly, however, because of resource depletion mining tends to take place deeper and deeper, and in more remote areas.
To help miners in this environment, the likes of Boart Longyear, a mineral exploration and drilling services company, have focused on data. “Mining often occurs in remote or inaccessible areas, and having quick, accurate data allows us to minimize disruptions and make informed decisions on the ground,” says the CEO of Boart Longyear, Jeffrey Olsen. Major Drilling, another drilling services provider, now presents itself as centered first and foremost on data. “Our drilling service is essentially about producing data,” the company’s CEO, Denis Larocque tells us. The industry, Larocque adds, has changed massively in recent years: “We used to say we produced rock samples, but now there is more to it. We gather information while drilling, which helps mining companies understand ground composition and predict what the mine will look like.”
Companies like Dräger, known for its advanced safety equipment, are also having to adapt to the new mining realities. “Digital solutions play a crucial role in today’s mining, particularly in communication and asset management. Communication can be challenging since radio waves do not easily penetrate underground rock, but experiments with drones deploying repeaters are underway,” shares the company’s CEO, Stefan Dräger. Innovations of this kind are key to ensuring that miners are better equipped to handle the challenges posed by more complex and remote projects.
One example of how mining companies themselves can come up with innovative solutions comes from Chesapeake Gold Corp. The Canadian company’s technology is designed to unlock gold deposits that were previously unexploitable. Chesapeake’s interim CEO, Jean-Paul Tsotsos, shares: “Our technology replicates nature’s own oxidation process, which typically takes millions of years, but with our proprietary technology, we are able to do the same in just weeks to months. This approach makes previously uneconomical refractory deposits viable.’
Crucially, fostering a more tech-driven mining industry may be key to tackling one of the sector's biggest challenges in the West. “Money is easier to find than people!” exclaims the CEO of Atalaya Mining, Alberto Lavandeira. This sentiment was echoed by most interviewees. Despite lucrative salaries, young people are not willing to join the high-skilled end of the industry. The main issue is the negative perception of the sector: Seen as technologically backward and environmentally unfriendly, few are inclined to dedicate their careers to mining today. “The negative view of mining has had a dramatic impact on student enrollment in geology and mining engineering courses. In America, this enrollment has dropped by at least 80 percent since the 1970s, and in Canada, by almost 65%,” says Robert McEwen.
If this trend is not reversed, the future needs of Western economies will be in danger, particularly in the context of the green transition. While the labor shortage partly reflects misconceptions about how mining has evolved, it is also clear that the industry needs to change. ‘The mining sector has relied on certain ways of operating for years, but now it needs to adapt and, with our help, it can become more technologically advanced,’ stresses the CEO of SGS, Géraldine Picaud. SGS assists mining clients with ESG compliance, safety protocols, and innovation. But Picaud is quick to note that companies like hers cannot be a substitute for the mining workforce.
The positive news is that the industry is already making strides. Several universities with mining programs are adapting their curricula to reflect these changes. “Seeing autonomous fleets in action, understanding the use of environmental impact measurements, and recognizing the emphasis on safety can be eye-opening,’ says Paul Johnson, the president of the Colorado School of Mines (MINES). These efforts are helping to reshape how students perceive mining. “Over the past three years, we have experienced steady growth in student enrollment in the mining program,” adds the dean of Queen’s University’s Smith Engineering, Kevin Deluzio. This suggests that while challenges remain, efforts to modernize the industry and improve its image are beginning to pay off.