Internet of Things (IoT) in Mining – Strategic Intelligence

Mining companies are investing in IoT technologies to enhance productivity, safety, cost efficiency, and mineral discovery. Mining companies are pouring investment into IoT initiaves and will continue to do so.

The 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. Industrial use cases include predictive maintenance, collision avoidance for autonomous vehicles, wearable technology, and drones. GlobalData forecasts that the global IoT market will reach $1.8 trillion in revenue by 2028.

IoT enables the automation of the mining process
Autonomous mining represents the future, with mining companies of all tiers investing in it. IoT-enabled sensors and actuators allow for automation of the mining value chain, enhancing safety, productivity, cost-effectiveness, and environmental, social, and governance (ESG) compliance. Predictive maintenance, autonomous haulage systems (AHS), tele-remote and autonomous equipment, automated inspections, and remote monitoring of asset status are all facilitated by IoT actuators and sensors. The mining industry has been struggling to replace lost talent over the past decade; according to McKinsey, the sector will face a potential deficit of 8,400 workers by 2026. Automation of the mining value chain is necessary to fight the industry's labor challenges.

IoT sensors are necessary for ESG compliance
Mining is an industry that extracts natural resources from the earth and provides necessary metals for the energy transition. IoT-enabled sensors facilitate easier tracking of a mining company's ESG performance through various monitoring methods. Monitoring water quality, dam structure, dust levels, driver fatigue, acid mine drainage, tailings storage facilities, and emissions are all key to meeting environmental targets while improving safety in a dangerous industry.

Further mine-site IoT adoption faces significant challenges
Mine sites are often remote and several hundred meters underground, hindering internet access and the adoption of connected devices. Additionally, cybersecurity remains a significant concern. To enhance IoT adoption in the sector, 4G, 5G, and cybersecurity infrastructure must improve, potentially using satellite communications.

IoT technologies enable automation of the mining process, while ensuring ESG compliance. IoT technologies also facilitate predicitive maintenance, the technology most invested in by mining companies as per the Global mine site technology adoption survey. IoT-enabled technologies represent the future of mining.

Scope

This report provides an overview of the future of work theme and how it will impact the mining industry.

The report predicts how the future of work in mining will evolve, including the key challenges it will solve.

It includes selected case studies highlighting who is innovating in mining using future of work technologies

The report also includes a comprehensive data analysis, including market size and growth forecasts for the future of work.

Key Highlights

IoT technologies can be deployed across the whole mining value chain, from prospecting to reclamation. Its spread has been encouraged by reduced latency, increased computing power, and the falling price of sensors, leading to a faster ROI from the nascent technology. IoT solutions enable mining companies to automate workflows, improve efficiency and safety while reducing costs, and bolster ESG Initiatives. IoT applications in mining include drones, wearable tech, predictive maintenance, tailings management, proximity detection sensors, and autonomous haulage systems (AHS).

Sensors on mining machinery allow for predictive maintenance when paired with AI and other technologies. These sensors allow mining companies to track and monitor the performance of assets throughout a mine site, transforming operations from reactive to predictive models based on the asset’s condition. With the rise of Industry 4.0 and sensor technology, predictive tools are getting smarter and sleeker, collecting larger amounts of data on mining assets to provide real-time insight into operations while allowing companies to intervene before a problem occurs. Said sensors also enable teleoperation and autonomous modes, whereby machinery can be operated without human piloting.

Monitoring sensors designed to gauge geological parameters, as well as weather and environmental stations, are essential throughout the exploration, development, and reclamation phases. Conversely, drones for aerial surveys, along with radar and seismic sensors to discern geological formations, are predominantly utilized during the exploration and resource evaluation phase. Feasibility studies, mine planning, and mine development require IoT technology for digital twin modeling and further geological data collection for feasibility assessments. Mining companies can also use IoT sensors to gather information on factors such as soil moisture, temperature, rainfall, and seismic shifts; all of which can provide early warnings of dam collapse.

In terms of mining and extraction, mining companies use IoT-controlled drilling, blasting equipment, autonomous trucks, automated sorting technology, and IoT-optimized energy management solutions for processing. The marketing and reclamation segments should focus particularly on the app and services layers. This is because, in these cases, the link with customers is closer, and it is more about presenting data already collected for quality assurance purposes, for example. Also, the reclamation segment relies on the services layer, as system integration and consulting services play a key role during mining abandonment and subsequent reclamation projects.

Enhancing safety throughout the value chain is essential for mitigating risks in the mining industry. IoT sensors facilitate the use of wearable technology, AHS, collision avoidance systems, drones, and predictive maintenance—all of which are instrumental in preventing workplace accidents. Wearable technology allows mining companies to monitor workers' locations and fatigue levels, enabling the timely removal of operators who exhibit dangerous levels of fatigue or alerting them when they enter hazardous zones. AHS and drones reduce the need for human presence in two of the most perilous aspects of mining: haulage and shaft inspections. Predictive maintenance, powered by IoT sensors, can track the condition of machinery and equipment, facilitating proactive maintenance scheduling and providing miners with advanced warnings to work around equipment downtime. Despite technological advancements and a decline in the overall fatality rate, mining remains an inherently hazardous industry. To further enhance safety, the mining industry must embrace IoT technologies on a larger scale.

The mining sector is poised to confront a multitude of challenges in the near term. These include diminishing ore grades, disruptions in supply chains, geopolitical instability, escalating demand for transition metals, shortages of skilled labor, and the intensification of environmental, social, and governance (ESG) objectives. Collectively, these issues contribute significantly to the concerns that keep mining executives awake at night. According to a 2023 GlobalData poll, the primary objectives to address these challenges include reducing operational emissions, enhancing exploration activities, producing transition metals, boosting productivity, and augmenting safety measures, as illustrated in the diagram below. IoT-enabled sensors can assist in all these aspects, from improving asset tracking and maintenance to monitoring environmental waste to remain compliant with regulations. According to a GlobalData ICT spending forecast for the mining sector, IoT spending from mining companies is expected to increase from $5.8 billion in 2025 to $8.2 billion in 2027, with a CAGR of 17.3% between 2022 and 2027. Mining companies have already invested significant sums into IoT and must continue to investigate further use cases to remain competitive.

Reasons to Buy

GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.

This report is essential for senior executives at minining companies to understand the critical benefits from integrating future of work technology into their operations. Mining companies who fail to implement future of work solutions will fall behind.

In addition, the report identifies the leading future of work adopters in mining, as well as specialist tech vendors in this space.