Australia’s mining industry trends in 2024 and beyond

Australia’s mining industry is widely recognised for its historical significance and its position as a global leader in an industry at the forefront of innovation and sustainability. 

The nation takes pride in its rich mining history, with mineral resources ranging from coal and iron ore to gold, copper, and rare earth elements that will be key to the green revolution. This historical depth has not only shaped the country’s identity but has also laid the foundation for its expertise in mining technologies and practices. 

One of the standout features of Australia’s mining sector is its dominant position in the global export market. According to the Australian Bureau of Statistics, mining contributed a record $455 billion in export revenue for Australia in the 2022-23 financial year, highlighting, once again, the industry’s prowess in extracting and processing minerals has made it a key player in meeting the increasing demand for resources worldwide. This not only boosts Australia’s economy but also strengthens its trade relationships with numerous countries. 

Australia has been proactive in ‘futureproofing’ its mining sector, embracing technological advancements and sustainable practices. The industry has made significant strides in adopting automation, artificial intelligence, and data analytics, improving efficiency, safety, and environmental impact. This commitment to innovation positions Australian mining as a trendsetter, influencing global mining practices and setting a standard for responsible resource extraction.

Economically, the mining sector is the powerhouse behind Australia’s economic success. Accounting for a staggering 13.7% of the country’s Gross Domestic Product (GDP), it is critical to sustaining economic stability and growth. The sector’s direct employment of over a quarter of a million people underscores its role as a major contributor to job creation and economic prosperity.

As the Australian mining industry continues to evolve, it remains at the forefront of global mining excellence, setting benchmarks for others to follow. In this article, we will explore some of the important trends in 2024 that are shaping the mining industry.

Climate change and achieving net zero.

Mining has long been a significant source of income for Australia, generating around AUD 455 billion of export revenue in the 2023 financial year. However, the current push toward net-zero targets necessitates an annual 11% reduction in global coal production, aiming for a complete phase-out of unabated coal power by 2040, leading to a complete phase-out of unabated coal power by 2040.

Despite this, mining companies are critical in producing essential minerals and metals needed to transition to a decarbonised economy. Australia’s mining sector, blessed with abundant mineral resources, has the potential to contribute positively to this transition.

The CSIRO’s Critical Energy Materials roadmap estimates an annual demand for metals and minerals exceeding 700 million tonnes by 2050. This includes nearly 9 million tonnes of lithium (used in energy storage), over 130 million tonnes each of silicon (essential for EVs) and copper (required in wind turbines and batteries), and 48 million tonnes of nickel (necessary for batteries). This underscores the increasing demand in the minerals and metals sector.

Maintaining a balance between climate impact and actions supporting decarbonisation is crucial forensuring the mining industry’s role in a net-zero world is a net-positive one. With increasing pressure from investors, stakeholders, and Australia’s global trading partners setting net-zero targets, the sector faces growing risks.

Although the Australian government has a long-term net-zero target of 2050, state and federal governments continue to support new fossil fuel projects. To remain competitive in the evolving global economy, mining companies should prioritise decarbonisation without waiting for regulations to come into effect. This proactive approach not only aligns with global sustainability goals but also positions them as leaders in responsible resource extraction.

Regulatory shifts.

These developments carry substantial implications for mining companies, particularly with mandatory reporting on the horizon. Following the International Sustainability Standards Board’s (ISSB) first two standards, the IFRS S1 and S2, the Australian government has announced its intentions to align mandatory sustainability reporting requirements with the ISSB.

The standards, drawing heavily upon the Task Force for Climate-related Financial Disclosure (TCFD), will require mining companies to understand and transparently disclose their climate impacts and risks under various scenarios. Starting in 2024, the ISSB will assume responsibility for monitoring companies’ progress in reporting against the TCFD. For those already reporting under TCFD standards, more scrutiny over the scenarios modelled is expected as investors increasingly rely on these reports to understand the long-term risks with their investments.

The introduction of international net-zero targets poses further risks to Australian mining exports. Given that several of Australia’s top trading partners have committed to net-zero targets, there is an inevitable reduction in reliance on Australian coal. Policies such as the European Taxonomy and other carbon border mechanisms will likely impact Australian exports significantly, underscoring the need for the mining industry to adapt to evolving global standards and expectations.

Stricter rules in mining for safety and sustainability.

In addition to the ongoing concerns about climate change and the global push for net-zero targets, the mining industry faces a rising risk of stricter regulations, particularly in areas like noise and water pollution. Recent legislative changes, such as Western Australia’s Work, Health, and Safety (General) Regulations 2022 (WHS Regulations), highlight the evolving regulatory landscape for the industry.

The WHS Regulations now require underground mines beyond 200 meters to assess and control risks comprehensively. This shift emphasises the industry’s commitment to ensuring the safety of mining personnel in challenging underground environments. Another significant development is the Global Industry Standard on Tailings Management (GISTM), which aims to improve the safety and sustainability of tailings storage facilities.

These regulatory measures share the same purpose: to protect workers, local communities, and the environment. Non-compliance has severe consequences, including fines, penalties, and reputational damage for mining companies. Mining companies need to adopt innovative approaches to balance profitability with meeting regulatory requirements. This involves using advanced technologies to reduce noise pollution, implementing water management systems, and adopting sustainable tailings management practices. Such investments ensure compliance and showcase a commitment to responsible mining, positively influencing the industry’s reputation.

Investment in rare earth metals.

Australia, alongside China, stands as a major provider of rare earth minerals, essential for the energy transition due to their strong magnetic properties and vital for defence applications. These rare earth elements find applications in diverse technologies, from electric vehicle motors and wind turbines to sophisticated weaponry like laser-guided missiles and fighter jets.

friendly nations to build out its critical mineral industry. This could add more than A$170 billion to its gross domestic profit by 2040 if it can capitalise on its mineral wealth.

The Australian mining industry is currently experiencing an exceptionally exciting period. To fully capitalise on this opportunity, strategic investments in advanced technologies are absolutely imperative. This proactive approach is crucial not only for maintaining regulatory compliance but also for establishing a competitive edge in the global market.

Minetek, with over 30 years of experience, offers innovative and technology-driven solutions in air ventilation, water management, sound attenuation, and power supply and distribution, providing valuable support to Australia’s mining industry during this transformative period.

How is Minetek shaping Australia’s mining future?

Minetek is at the forefront of shaping Australia’s mining industry’s future through a commitment to world-class engineering, groundbreaking technology, and intensive research and development. Our underground Ventilation Technology is a testament to our dedication, offering unmatched economic, operational, and safety benefits that set a new standard on a global scale.

Our High Output Axial Fan, purpose-built for mining applications, boasts a high-pressure steel fabricated impeller, representing a pinnacle in technological innovation. This fan represents the forefront of technological advancements, featuring a high-pressure steel fabricated impeller. It allows operation at previously unachievable pressures, ensuring a prolonged fan lifespan even in the harshest mining environments.

We are also recognised for our expertise in Peredaman Suara and noise management solutions; Minetek provides OEMs and mining operations with machinery that stands out as the quietest in the industry. Our Sound Packages, with a track record of over 1,200 installations across more than 90 OEM-approved models, ensures that mining equipment operates quietly while meeting rigorous regulatory and community expectations. Crucially, our noise reduction solutions do not compromise machine integrity, airflow, maintenance requirements, or operating capabilities.

Our dedicated team of experts have successfully delivered the world’s quietest mining machines, achieving remarkable noise reductions of up to 50%. This achievement significantly mitigates the impact of mining operations on surrounding communities and the environment.

Minetek is also a distinguished provider of highly effective Water Management Solutions, featuring the world’s largest and most cost-effective water evaporator. With savings up to five times greater than traditional water management methods, our solutions excel in managing excess water in critical mining infrastructure and improving water quality management in outflow processes.

With over 200 Minetek Water Evaporator systems operational globally, we have solidified our position as an industry leader. Each system plays a pivotal role in enabling industry leaders to achieve safe and compliant operations. Our advanced technology has not only addressed water management challenges but has also delivered substantial cost savings and improved operational efficiency, making Minetek a preferred choice for companies seeking cutting-edge solutions in the mining sector.

Most recently, Minetek launched a new division in Minetek Power. Drawing upon our proven track record of providing complex power solutions to industrial and mining operations as part of our Minetek Air and Water projects, Minetek Power is now offering complete and custom solutions to mine sites globally.

Minetek Power is a direct response to the industry’s need for reliable and efficient power suppliers, and the division is focused on delivering end-to-end tailored solutions quickly, often months faster than industry-standard lead times. Our experienced and knowledgeable team is there every step of the way offering a truly consultative approach.

Conclusion

Minetek, with its world-class engineering and innovative solutions, plays a pivotal role in shaping Australia’s mining future. From underground ventilation technology to sound attenuation and water management solutions, Minetek offers a comprehensive suite of services that meet industry standards and contribute to a sustainable and responsible mining sector.

During this transformative period in Australia’s mining industry, Minetek stands as a key partner, driving excellence and setting new benchmarks for the mining industry’s future.