ABB’s summary report on a unique global survey of mining leaders says the industry’s sustainability challenges are no secret. “The future of mining is undergoing a massive transformation, and the changes are filled with promise and potential,” it says.
Max Luedtke, vice president mining at ABB, is speaking at Resourcing Tomorrow 2024 in London and will give attendees with a deep dive into the report, what it reveals about this transformation, and what comes next, in a keynote address that should not be missed.
InvestMETS.com editor Richard Roberts caught up with him ahead of the London event.
Richard Roberts: The title of ABB’s new report talks about, “Mining’s moment”. What is the significance of the title? Is it a tremendously exciting moment or a particularly worrisome one?
Max Luedtke: Some of the earliest targets set for decarbonisation in mining, in line with long-standing international accords such as the nearly 10-years-old United Nations Paris Agreement, will come to pass in 2030. We say it is mining’s moment because if action has not been taken by now it must happen over the next five years – a timescale that we see as a minimum to take decisive actions that will affect change fast enough.
Our recent whitepaper, which surveyed more than 400 industry leaders from 18 countries, leads with the positive news that 67% are confident that they will hit their 2030 sustainability targets. However, only 15% of those are actually very confident, while 52% are quite confident. This must also be balanced by the fact that 15% of respondents do not believe they will meet their ambitions in the same timeframe. This is the moment for mining companies to act but also the moment for them to get ahead and succeed.
Richard Roberts: The report introduction says, “the future of mining is undergoing a massive transformation”. What are the clearest indicators to you of an actual transformation in mining today?
Max Luedtke: We know that 53% of the respondents anticipate significant or even complete transformation of their mining operations over the next five years, but we have also seen and been an active part of key projects over the last decade.
In line with the finding that 77% of respondents consider electrification, automation and digital technologies as key to successful, sustainable transformation of mining, customers and their technology partners are already driving change. Take for example, the deployment of trolley line systems in openpit and underground mines. ABB has been instrumental in the planning, design and development of major installations, including for Boliden in Sweden and Copper Mountain in Canada.
Mining companies are therefore walking the talk when it comes to reconfiguring their mine sites for the future – an all-electric operation looks very different to a traditional truck and shovel one.
But, behind the use of technologies are primary motivations: safety, regulatory compliance and ESG demands, pricing opportunities, license to operate, talent attraction and retention, ore quality, and community impacts. These areas and more are part of the vision for mining, one that uses the urgency of 2030 targets and moves forward to the bigger picture for 2050 and beyond when mining will have already been part of the energy transition and the lives of people around the world.
Where there are movements and aspirations for social mobility there are technologies and people making a difference for real progress.
Richard Roberts: The report urges the mining industry to make “change management a priority”. The recent IMARC conference in Australia heard – numerous times – that ineffective change management had held back, and was holding back, more significant technology-led change in mining. What do you see as the most important lessons the industry has learned on this front in the past five years?
Max Luedtke: No change on such a scale is ever going to be easy. In a modern world where people expect speed, the mining industry cannot change overnight.
It is on a journey to where it needs to be – this has tangibly been seen over the past five years with shifts in integrated electrification, automation and robotic solutions, for example, but there’s more to come.
Like many industries what is in place today has been built up over decades and into centuries, so redesigning for the energy transition while not only maintaining productivity but increasing it to meet demands is the challenge of our time.
In terms of responses to ABB’s survey, 46% say the risk of disruption to operations and production is a key barrier to adopt new technologies. Given the scale of the change needed there’s a lot of concern about disruption. The answer: 45% of companies are approaching mine decarbonisation with an incremental approach, focusing on individual assets and processes to gradually meet their sustainability goals.
It is wise to a step-by-step approach. We are working with miners to break down their long-term roadmap into short-term actionable projects, piece by piece, to gradually transform their operations. A phased approach enables mines to immediately lower carbon footprints with a limited capital investment, while simultaneously advancing progressively as technology becomes more mature, scalable and cost effective.
Richard Roberts: How can the industry get better, quickly, at change management that opens the door more widely to meaningful technological change?
Max Luedtke: There’s not one company that can do all. We need to work together. Mining companies don’t have to do it all themselves. Collaboration is crucial for overcoming sustainability challenges in mining for more effective, efficient, sustainable, long-lasting, equitable and inclusive change. Seventy-one per cent of respondents deem collaborations and partnerships to be crucial across the mining ecosystem to achieve decarbonisation and transformation goals.
We’ve found that 69% of industry leaders also agree that it’s crucial to have expert integrators in place to coordinate all partners, ensuring everything runs smoothly. And that’s where ABB shines. We’re not just a supplier; we’re a strategic partner.
Richard Roberts: Miners themselves have spoken a lot in recent times about the industry’s burning platform: declining average grades, deeper/more complex operations, lack of better quality projects coming through, capital intensity of new projects rising. Throw in people (attract/retain), cost of capital, energy, access to water, etc, and it’s got to be getting pretty warm at many HQs. Do you expect to see ‘miners’, new or established, challenging standard mining and/or value-chain business models in the next decade? What would be the biggest factor preventing this?
Max Luedtke: Every responsible mining company is already driving change. Sure, not everybody is going to agree but the move is towards more sustainable mining and the supply chain, the investor/shareholder community and the wider society expects this, encouraging more to happen faster.
Ultimately, in business, a sustainable operation will be a more profitable one too. Meeting goals while running a profitable mine absolutely relies on putting people first. We must all recognise the importance of health, safety, wellbeing, and quality employment. These are the highest-ranking ESG drivers across the industry.
Traditionally, a living wage would have been enough to entice a workforce. Today, attracting talent to operate your mines often relies on a strong reputation for a positive approach to people factors. Mining can still be perceived as an old-fashioned industry and this is often the first hurdle that limits its appeal to a new wave of tech-driven talent. It is also the case that any reputational issue that happens is likely to be big – the work that goes on behind the scenes to have a positive human rights record and social conscience within the workforce takes every individual.
Mines don’t just need governmental permission to operate but ‘social license’ too. If a mine is constantly facing protests and/or bad press, it can’t function in a productive – or profitable – way.
Richard Roberts: What are your top three messages at Resourcing Tomorrow?
Max Luedtke: First, there is urgency to act and for that to happen we need to put people first. There is good news: 53% anticipate significant or complete transformation of their mining operations over the next five years.
Developing new skills, particularly in digital technology, is essential to empower employees and prepare them for operating complex equipment in the future. Seventy per cent of respondents say their business is committed to reskilling and training existing employees to provide the expertise needed to drive decarbonization efforts. A larger, more diverse pool of talent is needed to increase production and progress decarbonisation efforts.
Also, Gen Z workers are difficult to recruit but are needed in order to fill the talent gap. Sixty-eight per cent of respondents see technology as a driver of diversity and new opportunities, so attracting Gen Z talent and widening the industry’s talent pool.
Secondly, to support this change, the way forward can be summed up in three words: electrification, automation and digitalisation.
Seventy-seven per cent of respondents believe an integrated approach to electrification, automation, and digitalisation is essential for sustainable mining transformation. Vehicles are the biggest emitter of fossil fuels in mining. Encouraging statistics show companies’ plans for decarbonisation and electrification of fleets, with 42% planning to invest in the decarbonisation of their haulage fleet by 2026 and 68% planning to electrify at least 25% of their fleets by 2030.
Thirdly, an incremental approach to decarbonisation is recommended as it allows for risk reduction, process optimisation, and employee training. Forty-five per cent of those surveyed said they are taking an incremental, step-by-step approach to decarbonisation, focusing on individual assets and processes. Incremental progress, even small steps, contributes significantly to long-term success. As such, tackling sustainability challenges in the mining industry piece by piece is sensible and beneficial.
Richard Roberts: What are the main trends influencing ABB’s mining/metals business fortunes in 2025?
Max Luedtke: At ABB, we are on a mission to help industries outrun – leaner and cleaner.
With our leading technologies in electrification and automation we help all industries run at high performance and become more productive, efficient and sustainable so they can outperform. We call this ‘Engineered to Outrun.’
Our ambition for the mining industry is to drive the transition to sustainable, safe and productive mining operations through integrated electrification, automation and digitalisation.
Everything we do is driven by our ambition to drive a safer, cleaner and leaner industry.
Our ambition is to harness technologies to create mining environments that are safe for workers.
We are dedicated to accelerating the energy transition, helping our customers convert mines from fossil fuel to all-electric.
And we are committed to advancing technology to help our customers achieve their strategic goals, enhancing operational efficiency while reducing costs.
