Page 12 - RMAI Bulletin July - September 2021

RMAI BULLETIN JULY TO SEPTEMBER 2021

would ensure minimum damage to the life and Y Health and Safety: Mining industry is always
property. weighed by minerals on one hand and the risk
associated with on the other. As mines get deeper,
Any change in the work process, changes the whole the danger of collapse increases. Also, with the
dynamics for the workers; hence they are the ones who temperature change in the mine the working
must be first aware of the changes that have taken place condition can prove to be fatal. Hence, proper
to avoid workplace hazard. Follow up inspections and ventilation and temperature control technique has
checks should also be done adequately for the better to be deployed for the safety of the miners'.
documentation and training wherever needed.
Y Talent Shortage: As the industry is failing to attract
the young blood due to the safety concerns, the
Challenges Associated with Mining mining industry is getting ageing population to get
Industry: the work done. This impacts the speed, accuracy,
dependency and also the cost to the company in
While there is risk in the sector, the mining industry is providing them extra medical facility. While the
trying to manoeuvre and clear of the headwinds that ageing people may have deep knowledge of the
are coming as a challenge to keep the industry in profit
mines and mining but they are not used to the
and intact. From volatility in the market demand to the
modern technologies used in the field and this
scarcity of resources, the challenges facing by the
may hamper the production process. Less number
industry has kept them thinking of the future prospects.
or talents joining and more workers are retiring,
makes the company to ask more from the less and
As, everything we use in our office, home, schools etc. which leads to physical stress on the workers.
are somewhere related to the mines and minerals Growing demand is just adding to this challenge.
extracted from it. But, in recent times due to some
changes in the surrounding the extractions of minerals Y Capital: Access and allocation of capital is the
is also changing like the environmental issue, limitless major issue in this sector. The production and
increase in urbanization, seismic shifts in the equipment is getting expensive with time but the
technology which eventually is pressurising the capital to raise those are not sufficient. Hence, the
industry in significant ways. companies are forced to merge with the smaller
companies where the not so trained people get
The sector we rely upon for so many things from the responsibility of arranging capital to save the
energy to the kitchen utensils has to come with a fair company from loss and have some profit margin.
share of challenges. These challenges can be taken Flexible finance has become so popular that it
over only when we have the idea of what these are saved so many companies from shutting down as
and their gravity it has. So, let us look few of them in the investor are nervous in investing in high risks
detail: projects. The ongoing rapid expansion of middle
Y Energy: The very characteristic of mining industry class in the counties like India, China, parts of
is that many of the operations will be done in the South America etc., continue to fuel this voracious
remote areas and inhospitable places. Hence, demand of these commodities.
building permanent power grids is not feasible to Y Price Volatility: This challenge makes it extremely
the pocket and the already scarce resources there. difficult for the companies to plan its income and
To solve this issue many companies are now using expenditure. Significant amount of projects are
micro off grid technology rather than traditional started in the boom years, but before the project
power generation techniques which is less reaches its production capability the market goes
expensive. Power rental is also an option to down. The current geopolitical trend has forced so
overcome this challenge. many companies to stop their production. This

Moving to renewable energy sources would be uncertainty in market is not suitable for such high
helpful, but the technology and environmental scale industry where it is not easy to adjust with
conditions becomes constraint at few sites. For the trends. Companies have to cut down
this, we need to adopt new technology and try to operations or reduce its workforce to meet is
capture the energy and control the grid. expense and does not make a loss in the market.

10