The Future of Mining: Logistics Trends for 2022

The mining industry is one of the most important contributors to our global economy. With mining, we are able to extract natural resources and turn them into usable products for everyday life. And mining will only become more important as time goes on - by 2023, mining operations will be responsible for $1 trillion in economic activity per year!

However, mining is also a very complex process that requires significant investments in logistics infrastructure. This article discusses some of the trends related to mining logistics over the next five years (between now and 2027).

Increased Demand for Mining Products

One of the most important trends is the increasing demand for mining products. As our world population continues to grow, so too does the demand for metals and minerals that are used in everyday items. In 2018, the mining industry was worth $1 trillion per year - but it is expected to have a value of $5 trillion by 2027! The implication for mining logistics over the next five years is that mining projects will be more complex than ever before - mining companies will need to transport equipment into remote areas where mining is occurring, and mining operations will be more closely monitored on a day-to-day basis. In order to meet this demand, mining companies will need to invest in additional logistics infrastructure - including transportation, storage, and processing facilities.

Future Trends in Autonomous Mining Operations

Another mining-related trend is the shift to autonomous mining operations. Companies are already making investments in technologies that allow for more automated mining processes, which can reduce costs and improve safety throughout mining sites. For example, mining equipment manufacturers like Komatsu and Caterpillar are working on producing mining trucks that will be able to handle mining operations without the presence of human drivers. Another example is mining drones, which can automatically inspect mining sites and mine planning areas. This increases safety and productivity throughout mining sites, since these mining drones don't need to stop mining production in order to inspect the mining site. All mining operations are different, and many will need to work on improving current processes before they can automate their mining equipment. However, mining companies around the world will likely discover investment opportunities in mining robotics, since these technologies could help mining companies grow their market share within the mining industry while also reducing mining costs.

New Mining Technology and On-Shoring/Near-Shoring

Finally, mining operations are continuing the trend of advanced mining technology. With increased regulatory scrutiny, many mining operations are on-shoring, and moving toward a more centralized mining model. On-shoring and near-shoring of mining operations will not only allow better oversight, but also reduce logistics complexities. Over the last decade, mining operations have gradually shifted to emerging markets, such as India and Africa. Emerging mining markets have a significant labor pool who can be trained for mining operations. Previously these workers made mining more cost effective, even with the costs associated with shipping mining equipment to and from the US. Current regulatory trends combined with significant increases in shipping cost will flatten and possible reverse this trend.

Get Ready for the Next Stage of Mining Industry Logistics Evolution

The mining industry is evolving rapidly, and companies need to be prepared for the challenges that lie ahead. By 2023, we can expect to see even more advances in mining technology an services. A mining company’s ability to innovate in mining logistics will put them in the best position to succeed in this highly competitive space (and extract profitable minerals). To position your mining operations for success in the future, contact our mining industry logistics specialists today. CAP has a dedicated team of US-based human experts ready to assist you with shipping, supply chain, and uptime planning.