The mining sector is often vilified, yet it is crucial for the green transition - can the dichotomy be reconciled and the industry become greener?
The technology shifts towards electrification, automation and digitalization will shape the future of mining, helping it transform into a green sector.
I have been in the mining industry for 24 years and this is definitely the most exciting time I have lived through; I am sure that in ten years' time mining will become even safer, more productive and sustainable. Over the years we have been a proactive partner for our customers and considering the current context we are working towards also becoming a sustainability partner. Innovation is carved deep into our DNA; during the past five years we have invested in cutting edge technology solutions that should help us on the road of becoming leaders of the industry. We have around 6,500 service technicians located in all mining sites because a skilled workforce is the kernel of managing the new technologies that we will implement.
What are the main challenges that mining companies are facing when transforming into an ESG framework?
In the future, mines will go further underground to find new resources which entails further complexity in relation to safety measures and environmental requirements. For example, the need for ventilation raises in deep mines, which can be a driver for faster electrification - electric machines have no emissions and generate less heat compared to machines with combustion engines. The industry will face more challenges in the future, but all can be overcome through technology. To deliver valuable solutions, the machines need to be up and running non-stop in very remote places of the world, so competitive development is a decisive factor in this case, but it can also turn into a challenge.
Traditionally, North America, Europe and Australia have been leaders in this sector, but today ESG is becoming central for our customers across all geographies. The green transition will be a competitive race and as a mining company we will need to address two big challenges on the sustainability and productivity side. However, this transformation will go categorically faster since it is happening all over the world at the same time. We are also experiencing a mindset shift where business relations are becoming less transactional and more partnership oriented. All the players are starting to understand that they need to be bold and set targets although not all the solutions are ready yet.
Is there a specific criterion by which you are selecting your customers?
One of our partners in South Africa is undergoing a greenfield project with the purpose to go fully electric in their operations. But we are also offering retrofitting services to customers who already have a machine fleet and want to upgrade it. Our final goal is to partner up with as many players as possible and help them achieve their sustainability targets. As such, we have committed that all our underground machines will have battery technology by 2025, while also keeping the classic designs on the table. 83% of our CO2 emissions come from the utilization of the products we develop, but we are also committed to decarbonize as much as possible of all our operations. Although it will probably be financially challenging, we feel that together with our partners we will overcome all difficulties.
How central are the raw materials for the green transition?
Raw materials are crucial for the green transition and this is the reason why the mining industry will adapt and evolve instead of becoming obsolete. Even if we become better at recycling, new mines are still needed to obtain materials like copper, which is essential for batteries for example. A part of our business is related to exploration and our customers work hard to find new raw material sources which are not yet identified.
How is the concept of circular economy integrated across Epiroc’s operations?
Circularity is a central concept in sustainability and we are trying to integrate it in our business model as much as possible. We have an ongoing collaboration with SSAB that has the ambitious goal to produce fossil-free steel - we are currently in the process of building the first machine dedicated to this endeavor. Moreover, through our partnership with Northvolt, we initiated a circular approach where we use batteries to their full potential - first in mine trucks, then in loaders and drill rigs; when there is little energy left, we turn them into storage inside the mines. Once the batteries are completely depleted, we return them to Northvolt where they reuse their components.
What excites you the most about the future of Epiroc?
I have an innovation background and I am really excited about how technology has enabled the industry to transform to something that will be more sustainable, more productive and safer. Right now, not many people know that the machines can be fully autonomous, being managed from the surface in control rooms - this is a consideration that must be stressed upon in relation to common misperceptions of the industry. The coming ten years will be ripe with opportunity for all players and we are prepared to invest all our time and effort in bringing groundbreaking technologies to the market and to support the green transition.
