Transformation a must to meet future demands

The mining industry is at a critical juncture, where the need for innovation, smarter investment, and new talent is more urgent than ever, Australia’s biggest mining event has heard. Speaking at Sydney’s International Mining and Resources Conference and Expo (IMARC), McKinsey & Company senior partner Richard Sellschop said as global demand soared and decarbonisation targets loomed, mining must transform to stay relevant and competitive. With almost $5 trillion in capital projects forecasted for the next decade—almost double what’s been spent over the last 20 years— Mr Sellschop warned that increased spending alone was not enough. “Today, two-thirds of mining projects experience delays, with nearly half over budget by 20 per cent or more,” he said. "The mining industry will need to nearly double its capex from the past two decades to achieve growth and decarbonisation, but without greater efficiency and smart project planning, this investment risks falling short.” Part of the solution would come from new technology, particularly AI and data analytics, which could help make mining operations more efficient, he said. "Future miners need to be data-driven; harnessing data and AI can help reverse productivity declines that have plagued the industry," Mr Sellschop said. These tools can enable mining companies "to optimise equipment use, manage energy more effectively and bring a level of consistency to operations that hasn’t been possible before, ultimately cutting costs and reducing environmental impact." But technology isn’t the only focus. Mr Sellschop said success depended on people. With 33 per cent of the industry expected to be automated by 2030 in Australia, new skills will be in high demand. However, the industry is facing a talent shortage: 70 per cent of young people aged 15–30 have little interest in mining careers, and mining engineering enrolments have dropped by 63 per cent since 2014. To address this, Mr Sellschop highlighted the importance of showcasing mining as an innovative, purpose-driven field to attract new talent. "People are central to the future of mining. If we want to attract the next generation, we need to prove that mining isn’t just about extraction – it’s about solving big, global challenges in sustainability and technology. It’s about providing meaningful work in a positive environment, with real chances for personal and professional growth." Mr Sellschop also pointed to the need for collaboration across the sector to meet sustainability goals. He cited partnerships in battery and equipment manufacturing that aim to reduce emissions and create sustainable supply chains. “This is a team sport: achieving decarbonisation requires new forms of collaboration across the industry.”

Transformation a must to meet future demands

Industry Queensland

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