Mining productivity has dropped by half over the past two decades even as demand for critical minerals surges, according to analysis released Tuesday by consulting firm McKinsey.While manufacturing productivity more than doubled between 1997 and 2023, and agriculture increased by 1.5 times, mining saw its productivity cut in half, the report states, citing OECD data.The industry faces mounting pressure from declining ore grades, deeper pits, longer hauls and remote operating locations. These challenges have pushed many mines below historic performance levels at a time when demand for critical minerals is increasing.The report identifies emerging technologies that could reverse the trend, including artificial intelligence, automation, robotics, advanced chemistry, improved connectivity at remote sites and electrification. Key bottlenecks in the mining process — loading and hauling, comminution and processing — show the highest potential for technological improvement.According to the analysis, mining companies need to structure innovation around continuous feedback loops involving aspiration, innovation and execution phases. The report emphasizes that technology deployment should focus on solving specific business problems rather than implementing technology for its own sake.Sean Buckley, a senior partner at McKinsey, said in the report that future success will depend on companies addressing their core business challenges with clear goals and disciplined execution. He noted that while some miners may succeed based on their geological assets alone, most will need to innovate to reduce costs and remain competitive.Richard Sellschop, also a senior partner, said the mining industry has a history of innovation but current challenges require a more strategic approach. He suggested companies need to make deliberate decisions about their role in the innovation landscape and which specific problems they will prioritize. (ICE TORONTO)

Fonte notizia: https://www.cpecn.com/