Ninety-Seven per cent of Australian mining companies optimistic about the year ahead, according to research report
The Equinix Mining Technology Report, a paper published today by Equinix, Inc., has revealed resounding optimism across the Australian mining, oil and gas industry.
The report found that 97% per cent of the mining leaders interviewed are very optimistic about their prospects, with a quarter expecting sales revenue to grow between 20% and 50% in the next 12 months. This growth is primarily driven by strong market demand despite challenges faced over the last two years, including economic slowdowns, increased operational complexity, greater health and safety considerations, and pandemic-induced business disruptions.
To capitalise on this growth, more than 90% of mining leaders are increasing their IT investment in the next 12 months, focusing on data analytics, artificial intelligence and integrated automation. They are also exploring greater collaboration through partnerships and joint ventures to meet demand for Australian minerals, and the adoption of hybrid and multi-cloud services will play a critical role in enabling this increased collaboration. For example, collaborative data environments that make it easy to transfer information to and from mine sites.
Additionally, there is a commitment to continue the transition to a high-tech industry, with increased investment planned in technology and innovation to address Australia’s Environmental, Social & Governance (ESG) goals. Mining leaders see their investment in technology will help them reach their sustainability, growth and productivity goals, reporting that these are the big-ticket opportunities. For 74% of survey respondents, sustainability is the most important business priority.
Digital infrastructure will play an important role in the future mine, with automation, AI, IoT and other advanced technologies considered essential to both enhance operations on-site and move certain functions off-site. Technology will also play a critical role in other ways, such as the use of digital twins and data analytics in hypothesis testing, prediction and exploration as well as improving supply chain efficiency.
Despite high levels of investment, miners are also challenged by workforce issues – recruiting and retaining talent. Other top challenges facing the industry include IT/OT security, the pandemic and CAPEX.
Additional Insights
- Mining leaders expect market demand and organic growth (34.6%) to be the biggest drivers of growth for the year, followed by acquisition, partnership and joint venture (25%). Productivity-led growth (10.6%) was also reported as key to the future, enabled by increased investment in technology.
- There are several ongoing challenges in using technology to meet ESG goals. In particular, respondents noted that insufficient preparation for extensive automation, the need for transparent reporting, issues with implementation and logistics, and lack of technology support could be possible barriers.
- With mining sites and locations distributed globally, the increasing need for remote connectivity and global exchange of information is a trend expected to continue and ramp up.
Minerals Council of Australia CEO, Tania Constable, said that Australian mining has a good story to tell.
“It’s about our industry continuing to be world-leading and a major contributor to global societal change, playing a significant role in the transformation that is occurring across the world. It’s a story that brings forward technology and innovation, and emphasis the quality of our products.
“We are a reliable supplier of minerals to the world, and we that in a sustainable way. Technology must be at the forefront of our thinking because it plays a key role in today’s safety considerations, the need for greater sustainability, the fact that we need to decarbonise as a society at a domestic level, but also internationally.”
Guy Danskine, Managing Director, Equinix Australia, said the inaugural mining research report has revealed some fascinating insights on what is happening now and in the immediate future.
“It is evident the future mine will be digitally enabled, with increasing adoption of automation, artificial intelligence, internet of things and other advanced technologies.
“This future mine will generate massive surges in data volumes, which will necessitate investing in the right digital infrastructure.”
