Could you begin by introducing The Weir Group? What can you tell us about Weir’s operations in mining?
Weir is an engineering company with a long history, over 150 years, and we've recently transitioned to focus on mining technology. This is because the world is shifting from a fossil-fuel based economy to a metals-driven economy since metals are at the heart of many low carbon technologies. We're passionate about achieving net zero emissions, and we want to help other companies do the same.
We believe that the global economy must decarbonise as soon as possible. For Weir, this provides a compelling opportunity for us to innovate in ways that increase profitability and sustainability at the same time.
That's why we sold our oil, gas, and other non-mining related engineering businesses. Now, we support around 4,000 to 5,000 large mines worldwide. We make equipment used in mining processes and have a broad service center network, meaning that our customers have Weir’s expertise and products close by so they can continue to operate efficiently.
Our annual revenue is nearing £3 billion, and we have over 12,000 employees globally. We help produce copper, gold, lithium, and other battery metals. In the mining value stream, we provide everything from ground engaging tools for excavation, to equipment used for crushing, grinding, separation, and pumping. We also help with pipeline transportation and tailings management. We offer integrated solutions wherever possible. It's a challenging but rewarding place to be within this metals-driven economy. We have a great team of people, and we're excited to be at the forefront of this important transition.
How does Weir contribute to making mining operations more sustainable and efficient?
The upcoming gap in the supply of essential metals like copper, nickel, lithium, and cobalt is a real concern. Significantly more metal is needed if the world is to get to net zero, and while recycling will play a part, the fact is that many more tonnes per annum will need to be mined versus annual supply today. At Weir, we're focused on developing solutions to help mining companies increase production and operate more sustainably.
Our R&D team is working on technologies that can improve productivity, reduce energy and water consumption, and be more environmentally friendly. These innovations are essential for mining companies to get the social license to operate and meet environmental standards.
For example, we're developing technologies that can reduce energy consumption in crushing processes by up to 50% compared to traditional methods. This is a huge deal, considering that 3% of the world's electricity every year is used on the crushing processes that mining needs. We're also working on improving material classification and reducing water consumption – some of our technologies, such as the high pressure grinding rolls (HPGR) are water free.
We're also collaborating with other mining tech companies to develop end-to-end solutions that can address the challenges of recirculating load and inefficiency. The mining industry can be slow to adopt new technologies, but we're working hard to demonstrate the value of our innovations through prototypes, trials, and reference sites.
How has Weir been affected by fluctuating commodity prices?
Fluctuations in commodity prices do create cyclicality in the mining industry but our business is somewhat inelastic to that. We're focused on helping our customers address the key challenges they face and reduce their downtime. We do this by delivering high-performance equipment, extensive service support, and replacement parts (spare parts).
So one of the things that makes us resilient is that a lot of our business is aftermarket, which means we're not as affected by the ups and downs of the mining cycle. Even when commodity prices are down, most mines still need spare parts to keep operating and avoid downtime.
Downtime can cost miners millions of dollars a day. We invest in technology and capabilities to offer our customers the best wear life and lowest total cost of ownership, and our service center network means they have access to spares and support as and when they need it, reducing costly downtime.
What are the key steps the West needs to take to ensure we have the necessary resources, like copper, to facilitate the green transition?
The most pressing need is for Western nations to acknowledge the indispensable role that mining new metals must play to achieve net zero targets, however many countries have set emissions reduction targets without fully considering the entire value chain. The fact is, that everything you see around you is either mined or grown – and consumers do not always appreciate the role of mining and metals in the things they rely on every day. I’m optimistic though, there is positive progress. For example, some Western nations have now instituted critical minerals policies, but we do need to do more to accelerate the development of new mines. The current permitting, licensing, and planning processes take too long, mainly due to administrational inefficiency, which makes exploration less profitable and slows down the introduction the new mines.
The industry also has room to improve. Environmental and local constituency concerns are important, and the industry needs to address these issues more swiftly and creatively to meet stakeholder expectations. The lead time to open a new mine has doubled over the last decade, - that is to say it now takes twice as long to build a new mine. If the West doesn't expedite these processes, countries with more autocratic regimes will forge ahead in securing these critical resources.
If we want more copper, or any other metal for that matter, we need policy reforms and quicker decision-making processes to avoid being left behind in the global race to secure essential metals for the green transition.
Can you provide more insights into how specific technologies, like AI and machine learning, are being deployed at Weir?
Combining technical engineering skills with AI is critical if the global mining industry is to become more efficient and more sustainable. The Motion Metrics business we acquired in 2021 is already using AI to help our customers monitor and analyse the flow of ore through their excavation and processing equipment, improving safety and productivity, and reducing energy use.
We also have our own proprietary digital technology called Synertrex, which captures real-time data from equipment, and then uses AI to predict failures, prevent failures, and optimize performance. In particular, we're developing a closed-loop control system for separation and classification machines like cyclones, to ensure these operate with maximum energy and output efficiency.
Vision recognition technology and real-time data analysis are central to our strategy. By combining these technologies with customer data on energy consumption, we're building the most efficient end-to-end processes in the mining industry.
Our holistic approach to optimization - where each piece of equipment and every stage of the process works in harmony - has the potential to deliver even greater energy savings and reductions in CO2 footprint for our customers.
I'm confident that our early adoption of AI, and our ongoing investment, will help us to drive sustainable mining forward, and I'm excited to see what the future holds.
