Sustainable technologies could be the solution to the mining industry’s resource curse.

Next year marks a decade since the signing of the 2015 Paris Agreement , a historic moment when almost all nations — 196 parties — united in a single agreement to combat climate change and adapt to its impacts. Despite the growth of green initiatives, carbon emissions have continued to rise. In 2015, carbon emissions totalled 35.5 billion tonnes and are expected to exceed 40 billion tonnes by 2023 , despite ongoing efforts.

Each year we continue to release unprecedented levels of emissions into the atmosphere, driving significant changes in our climate system.

The effects of rising greenhouse gas concentrations are profound and multifaceted. In 2023, the global mean near-surface temperature was 1.45 ± 0.12°C above the 1850-1900 average, making it the warmest year on record.

To stay within the 1.5°C limit, greenhouse gas emissions must peak before 2025 (less than a year away) and be reduced by about 43% by 2030 compared to 2010 levels. With emissions at 40 billion tonnes in 2023 and 33.3 billion tonnes in 2010, global emissions need to be reduced to around 14.7 billion tonnes by 2030.

Why the mining industry should care about global warming

The World Meteorological Organisation's 2023 State of the Global Climate report highlights how global warming will soon have far-reaching consequences, including an increase in the frequency and severity of extreme weather events such as heatwaves, floods, and wildfires. These impacts are already being felt around the world, affecting ecosystems, human health and economies. For the mining industry, these changes pose significant risks and challenges. Extreme weather events can disrupt mining operations by damaging infrastructure, flooding mine sites and disrupting transport routes. In addition, climate-related droughts can limit the availability of water, which is essential for mining processes, forcing mines to reduce production or invest in costly water management solutions.

In addition, global mean sea level rise has more than doubled in the last decade compared to the first satellite observations from 1993 to 2002 . For the mining industry, this can pose significant drainage problems, as rising sea levels can lead to increased flooding and waterlogging at mining sites, particularly those located in coastal areas or near estuaries. This exacerbates the challenge of managing excess water, which can overwhelm existing drainage systems, cause operational disruption and increase maintenance costs. In addition, saltwater intrusion can contaminate freshwater sources essential to mining operations, further complicating water management and requiring costly infrastructure upgrades.

While mining may seem insulated from global warming, the industry will continue to suffer as temperatures continue to rise.

What role does the mining industry play in global warming?

The mining industry is currently a significant contributor to global greenhouse gas emissions, estimated at 4% to 7% , causing up to ￡2.5 trillion ($3 trillion) in damage worldwide each year, according to a new study. Governments are aware of this and have introduced regulations to reduce the environmental impact of mining.

The mining sector is under pressure from governments, investors and society to reduce emissions, as it is responsible for 4% to 7% of global greenhouse gas (GHG) emissions.

This situation also complicates sustainability efforts as new technologies rely on resources produced by the mining industry. As demand increases and regulations tighten, the mining industry must innovate to meet these needs. Another challenge is the global labour shortage.

According to a 麦肯锡 2023 study, 71% of mining executives report that talent shortages are hampering their ability to meet production targets and strategic goals . This shortage is particularly acute in specialised areas such as mine planning, process engineering, data science and automation. In addition, 86% of mining executives report that recruiting and retaining the necessary talent has become more difficult compared to two years ago.

How the resource curse hurts sustainability efforts

In 1993, British economist Richard Auty coined the term resource curse . Also known as the paradox of plenty, the resource curse describes how countries rich in oil, gas and minerals often face significant social, economic and political challenges. Despite their wealth, these countries often suffer from authoritarian governments, increased conflict and economic instability.

Although the term was coined in the 1990s, discussions about the phenomenon date back to the 1960s. Many speculate that resource-rich governments tend to rely on resource revenues rather than taxing citizens, reducing accountability and transparency. In addition, fluctuating resource prices can lead to inefficient spending and borrowing, creating boom-bust cycles that hinder sustainable development.

Several factors contribute to the resource curse. Natural resources can fuel internal conflict as groups fight for control and funding. Oil-rich countries have higher rates of civil war, while resource revenues can lead to excessive spending on government salaries and inefficient projects rather than on essential services such as health and education.

Tackling the resource curse requires strategic governance and policy choices. Transparency in revenue management and strengthening links between government and citizens can mitigate some of the negative effects. Countries such as Chile, Indonesia, Norway and the United Arab Emirates have managed to overcome these challenges through effective management practices.

In most mineral-rich countries, however, the resource curse persists, complicating efforts to address problems in the mining industry. This can lead to reduced productivity, making it difficult to develop new green technologies, and increased carbon emissions as priorities shift towards profit rather than optimising for efficiency and sustainability.

Promoting sustainability through technology

Fortunately, new technologies offer promising solutions to the many challenges facing the mining industry. For example, Rio Tinto's ISAL aluminium smelter in Iceland uses 100% renewable hydroelectricity to produce approximately 209,000 tonnes of aluminium per year, while maintaining one of the lowest carbon footprints in the industry.

In addition to using renewable energy, Rio Tinto has advanced its carbon capture and storage (CCS) technology at the ISAL smelter. In partnership with Carbfix Carbfix , they have developed a system that captures CO? emissions and permanently stores them underground. These initiatives demonstrate that it is possible to reduce carbon emissions while maintaining profitability and production levels. As companies come under increasing pressure to minimise their environmental impact, the adoption of renewable energy sources and innovative technologies is essential.

In addition, software-enabled technologies are alleviating the mining industry's severe labour shortage by attracting and retaining technical talent critical to ongoing digitalisation efforts. According to a 普华永道 report, 57% of mining companies say the inability to attract specialised talent as the biggest barrier to adopting new technologies. In addition, 73% of companies cite local skills gaps as the main barrier to technological advancement, especially as the sector increasingly relies on automation, digitisation and AI-enabled operations.

The talent shortage is exacerbated by the perception among young workers that mining is not an attractive career option. A survey by the Mining Industry Human Resources Council (MiHR) of Canada found that 70% of 15- to 30-year-olds would not consider a career in mining, highlighting the need for the industry to rebrand itself to appeal to a broader demographic. There is also a significant gender imbalance in the mining workforce, with women holding only 14% of positions, further highlighting the need for inclusive hiring practices.

To address these challenges, mining companies can use software solutions to optimise existing processes and reduce the burden on the current workforce, enabling them to meet increasing demands more effectively.

Kuchera : supporting sustainability efforts in the mining industry

Kuchera's software enables companies to reduce carbon emissions without having to hire technical experts or invest in new, fuel-efficient machinery. Our technology collects data from your fleet and analyses it to provide actionable insights.

Through the Kuchera app, you can optimise your fleet's routes to minimise machine wear and reduce environmental impact. Our software suggests optimal routes to reduce fuel consumption and vehicle stress while providing real-time updates and optimisation suggestions via notifications.

In addition to this, our app continuously tracks vehicles and fuel levels, quickly identifying deviations from standard routes or abnormal consumption patterns and idling times. With live feedback, fleet managers can take immediate action to prevent theft and improve safety, protecting mining operations from costly disruptions.

Kuchera's plug-and-play connectivity boxes make setup simple, providing companies with an easy-to-use interface to comprehensively monitor all their assets.

Want to learn more about how Kuchera can help your mining operations? Kuchera | Get in touch

Article by Bobbi Steele