Green market up from US$ 11.6bn in 2022 to US$22.7bn in 10 years with a Compound Annual Growth Rate (CAGR) of 9.2% during the forecast period, according to a new report by Spherical Insights
In the mining business, “green mining” refers to the use of ecologically friendly methods and equipment. Habitat loss, water pollution, and greenhouse gas emissions are just a few of the detrimental effects of conventional mining that can be extremely detrimental to the environment. While still producing rich minerals and commodities, green mining seeks to reduce these adverse effects. Utilising renewable energy sources, such as solar, wind, or hydropower, to power mining operations is one of the most important features of green mining.
By doing so, mining operations leave a smaller carbon footprint, which helps fight global warming. By cutting waste and improving extraction techniques, green mining aims to maximise resource efficiency. As part of this, materials should be recycled and reused, and energy use should be reduced and a new examination of the worldwide market by Spherical Insights sees opportunities for huge savings and positive environmental benefits.
Companies covered by the report include Anglo American Plc, BHP Group Limited, Dundee Precious Metals Inc., Freeport-McMoRan Inc., Glencore plc, Ma’aden (Saudi Arabian Mining Company), Rio Tinto Group, Sany Heavy Industry Co. Ltd., Shandong Gold Mining Co. Ltd, Tata Steel Limited, Vale S.A.
COVID 19 Impact
The pandemic had an influence on global supply chains, which hindered the accessibility of equipment, spare parts, and other essential supplies for mining operations. This disruption may have significantly hampered the uptake of green mining technologies. Mines had a labour shortage because of lockdowns, travel restrictions, and health difficulties. This might have made it more difficult to employ sustainable mining methods and slowed down programmes meant to improve environmental performance. Numerous mining companies were financially strained as a result of the epidemic’s decreasing commodity demand and shifting commodity prices. This might have reduced their ability to support initiatives and innovations in green mining. The outbreak accelerated the adoption of automation and remote work in a number of industries, including mining.
Surface mining segment is dominating the market over the forecast period, according to Spherical Insights
On the basis of mining type, the global green mining market is segmented into underground and surface. Among these, the surface mining segment is dominating the market over the forecast period. Energy is needed in abundance for surface mining operations. In an effort to reduce their carbon footprint, many mining companies looked into using renewable energy sources like solar and wind to power their equipment. The expansion of the renewable energy infrastructure may have a substantial impact on the sustainability of surface mining operations.
Green mining practises sometimes include process optimisation to save energy and waste utilisation. Utilising cutting-edge drilling, blasting, and material handling technology, for instance, can boost production while consuming less resources. Companies that engage in surface mining have increased their commitment to the protection of biodiversity. Programmes for reclamation and restoration must be implemented in order to reduce the long-term effects on ecosystems and return mined areas to their pre-mining state.
Power reduction segment holds the largest market share over the forecast period
Based on the technology, the global green mining market is segmented into Power Reduction, Fuel and Maintenance Reduction, Emission Reduction, Water Reduction, and Other. Among these, power reduction segment holds the largest market share over the forecast period. Power reduction techniques can significantly lower costs for mining companies. Energy-efficient equipment and practises enable reduced electricity use, which is typically one of the highest operational costs in mining. By lowering their energy expenses, businesses can become more profitable.
Particularly in industries like electronics and automotive that are under pressure to have a lower environmental impact, minerals and metals that are supplied sustainably are in increased demand. Mining companies that can demonstrate a commitment to environmentally friendly mining methods will be better equipped to meet this demand.
Europe is dominating the market over the forecast period
Europe is dominating the market with the largest market share over the forecast period. Many mining companies in Europe have embraced renewable energy sources including wind, solar, and hydropower to reduce their reliance on fossil fuels. Switching to cleaner energy sources not only reduces carbon emissions but also lowers energy bills.
European mining companies have invested in energy-efficient technology and practises to reduce their overall energy use. This includes improving equipment, utilising cutting-edge data analytics, and applying automation and digitization to boost operational effectiveness. Europe places a high premium on the circular economy, which prioritises reducing waste and fostering recycling and reuse. Initiatives to lower waste output and promote moral resource management are how this manifests in the mining sector.
North America is witnessing the fastest market growth over the forecast period. In mining operations, electric trucks, loaders, and other vehicles are becoming more and more common. Electric mining equipment can reduce emissions and operating expenses. Mining companies were investing in cutting-edge technology and automation to boost energy efficiency and reduce waste. This includes the use of data analytics, AI, and IoT devices to optimise mining processes. The green mining sector was receiving investments from both public and commercial sources. Investor interest in mining projects that demonstrated a commitment to sustainability was growing.
Key Market Challenges
The adoption of green mining techniques and technology frequently necessitates a sizable initial investment. Because of their possible negative effects on profitability and financial viability, companies may be reluctant to use these solutions. Lithium and rare earth elements, two essential minerals and metals for green technologies, can be hard to come by. For green mining to flourish, securing a steady supply of these materials is crucial. While green mining encourages the use of renewable energy sources, it can be difficult for mining companies to switch from fossil fuels to renewables. Upgrades to the energy infrastructure and the erratic nature of renewable energy sources might be challenges. Changes in supply chain dynamics, such as responsible waste management and the sourcing of sustainable materials, may be needed to implement green mining practises.
Mining Type Insights
Surface mining segment is dominating the market over the forecast period
On the basis of mining type, the global green mining market is segmented into underground and surface. Among these, the surface mining segment is dominating the market over the forecast period. Operations for surface mining require a lot of energy. Many mining corporations were investigating the use of renewable energy sources like solar and wind to power their machinery in an effort to lessen their carbon impact. The sustainability of surface mining operations can be significantly impacted by the expansion of renewable energy infrastructure. Process optimisation to reduce waste and energy usage is a common component of green mining practises. For example, adopting cutting-edge drilling, blasting, and material handling technology can increase productivity and use less resources. Companies that engage in surface mining have become more committed to biodiversity preservation. In order to minimise the long-term effects on ecosystems and restore mined sites to their original form, reclamation and restoration programmes must be put in place.
Power reduction segment holds the largest market share over the forecast period
Based on the technology, the global green mining market is segmented into Power Reduction, Fuel and Maintenance Reduction, Emission Reduction, Water Reduction, and Other. Among these, power reduction segment holds the largest market share over the forecast period. For mining businesses, power reduction strategies can result in significant cost reductions. Reduced electricity usage, which is frequently one of the biggest operational costs in mining, is made possible by energy-efficient machinery and procedures. Businesses can increase their profitability by reducing their energy costs. Minerals and metals that are sustainably sourced are in greater demand, particularly in sectors like electronics and automotive that are under pressure to have a smaller environmental effect. Mining firms that can show a dedication to green mining techniques will be better able to supply this demand.
