Strategic Intelligence
6 min read
Internet of Things, or IoT, describes the use of connected sensors and actuators to control and monitor the environment, the things that move within it, and the people that act within it. These connected devices serve a range of industrial applications, from inventory management to automated equipment inspections via the use of robots.
Mining, as an industry, faces a range of challenges in the immediate future. Declining ore grades force mining companies to look further and further away from civilisation for mineral deposits, all while digging deeper to retain levels of output. This effect is twofold, as mining companies’ productivity dips while employees must go further away for job opportunities. Mining also has a mixed reputation when it comes to the environment, as it is both an extractive industry, requiring intense regulation, but also one that produces critical minerals necessary for the energy transition. Additionally, mining remains an incredibly unsafe profession. According to research from Spain, the industry is 14 times more unsafe than other sectors on average.
All of these factors have contributed to a significant skills shortage within the industry. According to a 2022 McKinsey survey, 86% of mining executives struggle to recruit and retain skilled workers, with the sector facing a potential deficit of 8,400 workers by 2026 in Australia.
IoT devices have the potential to enhance safety, boost productivity, reduce expenses, uncover new resource deposits, and improve compliance with environmental, social, and governance (ESG) standards, thereby addressing some of the primary concerns of mining industry executives. Furthermore, deploying automation technologies relies on IoT sensors that aggregate large quantities of data. While the global adoption rate of automation technologies such as autonomous haulage and equipment remains modest, it is projected that by 2030, half of the mining operations in Australia will be automated, as reported by the Commonwealth Scientific and Industrial Research Organisation. This shift is anticipated to mitigate Australia's impending skills shortage by reducing the number of staff in hazardous areas by 75%.
Integrating IoT sensors and connected devices is essential to confront the extensive challenges the mining industry is expected to encounter. According to a GlobalData ICT spending forecast for the mining sector, IoT spending from mining companies is expected to increase from $5.8bn in 2025 to $8.2bn in 2027, with a compound annual growth rate of 17.3% between 2022 and 2027.
