Challenges faced by the Mining Industry

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Commodity Prices

Mining companies must always be ready for change as commodity prices vary and can be unpredictable. They must adapt with more agility to sustain profit margins and to safeguard the long-term health of their businesses and operations. To ensure confidence in the decisions they make, value-chain-wide data, planning and simulation of alternatives and integrated execution is required.


Resource Quality

With high grade deposits disappearing and geographically easier deposits becoming increasingly tapped out, mining companies are being pushed into more remote locations outside of friendly political climates and deeper beneath the surface. This means that mining and processing must become more efficient. It also requires that as the supply chain is becoming more complex, truck, rail and port facilities all have a role to play in being made more productive.


Focus on ESG

Mining industry stakeholders and investors are requiring more insight into projects, especially as companies are operating in more remote and more politically unstable locations. Governments and local communities want to ensure promised benefits are realized, environmental impacts managed and safe operating conditions maintained. Mining companies are therefore seeking to improve transparency in reporting and monitoring of their operations and how they engage with their stakeholders.


Input Costs

Driven by lower commodity prices and variable demand, profit margins have become tighter due to declining productivity. Mining companies must change the way they operate to become lower cost, much more effective producers.

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