Caterpillar Inc Heavy Equipment CSR by GineersNow Engineering GineersNow Engineering Magazine November 2016 | Page 43

greater collaboration, and
accountability.
Innovation
There is new technology
everyday
and
mining
companies seem to not
embrace
modernization.
But when they do, if at all,
they don’t engage with it
externally and only adopt
with the old techniques.
Mining companies need to
take advantage of networks,
machine learning, genomics,
wearables
and
hybrid
ships that will drastically
improve operations . In the
manufacturing side, it’s
possible to have collaborative
ecosystems, digital workforce
engagement, improved asset
management, 3D printing
and modularization.
China’s pivot
Being a powerful nation
with a global impact, China
has domestic trends that
change the miners’ markets
– especially now that they
decided to change the way
they manage currency
value. Large-scale mining
companies
should
be
aware of the repercussions
of China’s decisions, and
develop plans relative
to China’s investment
initiatives and leveraging
Chinese expertise in design,
construction, and financing.
Adjustment to the new
normal
It’s likely that the trends
won’t change for a while,
so miners should be able to
adopt somehow. One way
to do that is to ramp up
in production, in an attempt
to reduce unit costs and to
consolidate market shares.
Finding
that
balance
between current and future
demand factor require the
ability to scale production,
labor and other inputs and
outputs.
Photo by Bolour Kavir
Global energy mix
The biggest threat for mining
companies is renewables. Its
flourish has been apparent in
recent years, losing the gains
of miners.
But ironically, fossil fuels are
needed in the production of
alternative power sources.
What mining companies
could do is pay close attention
to global energy demand
patterns and shift to the likely
stronger demand for uranium
(for nuclear generation) and
commodities used in battery
storage (to address the
intermittency of renewable
generation).
Stakeholder dialogues
Miners are also affected by
the increased expectations
from stakeholders, making
it harder to survive in the
thriving industry.
The challenge is to find a
way for new tactics that
work, because the old ones
will no longer do. They need
to explore a new form of
stakeholder engagement to
meet demands of multiple
groups
Capital crisis
For an industry going
downwards, it’s difficult
to attract capital. Mining
companies will be at
risk if they don’t seek for
alternative sources of
financing to push through
their operations.
They have to be creative for
sure in finding new financing
options. Suggestions include
commercializing dormant
assets, pooling resources,
pursuing debt reduction
strategies,
considering
crowdfunding, and seeking
government funding.
Tax management
There are new regulations
that change the tax
implications associated with
a range of business activities.
This affects miners through
heightened scrutiny of their
tax compliance, substance
and transfer pricing policies.
Miners could assess their
operational and corporate
structures, on top of
understanding the financial
implications of the new tax
rules.
Mergers & acquisitions
Contrary to predictions,
the mining M&A has been
disappointing. Deals in the
mining industry are mostly
divestments and rescue-type
deals in the recent years.
But amid the situation,
today is the best time to
make acquisitions, especially
uncontested assets.
Safety,
health
security,
and
Workers should never be
discounted in the equation.
Actually they have to
be empowered, through
expanding their safety,
security and health. Mining
companies need to enhance
safety records and security
postures, by strengthening
their
safety
analytics,
adopting more robust mental
health policies, improving their
security protocols, employing
risk monitors, conducting risk
assessments and improving
crisis management.
NOVEMBER 2016
Mining Engineering and Its Importance
43