Mining Transportation: Most Common Challenges Faced in 2021

Mining Transportation
Mining Transportation

Australia is a developed country, and a major part of its economy depends on mining. Because of the richness in the subsoil, many mining companies have their mines in Australia. But the most crucial factor behind the mining industry’s success is the transportation and logistics expertise found in the freight services Perth and other places in Australia. 

The mining logistics and transportation have to constantly adapt to unexpected circumstances to prevent unnecessary delays in the supply chain, which is crucial for the project’s success. This blog discusses some of the major challenges that mining transportation usually faces in this present scenario.

Climate Changes in Mining Transportation

One of the significant challenges that the present world is fighting is climate change. This problem also affects the mining supply chain in many ways.

According to leading climatologists in the world, the earth’s temperature has significantly increased in more than a century, while many colder parts on the planet have also become relatively warmer. It is alarming information for the ecosystem. Because of such a significant increase in temperature, the human world is experiencing now include:

  • Weather disruption has become more frequent.
  • There has been an increase in natural disasters like hurricanes, tsunamis, earthquakes, storms, cyclones, and landslides.
  • The rainy seasons are also shifting from their regular schedule.
  • Heatwaves are frequently giving rise to devastating wildfire over a vast area of land. 
  • The melting of ice is a direct result of climate change. Combined with torrential thunderstorms, it has raised water levels and global sea levels, which has increased the risk of flooding.
  • Another two common climate issues include extreme winter temperatures and freezing rain.

All these climate issues pose significant problems to mineral transportation.

According to the 2018 report by the International Red Cross organization, shocks and dangers associated with climate change have increased by four times compared to those recorded in the 1970s. Because of these issues, freight forwarders are finding it too tricky to work with mining companies collaboratively. 

Financial Challenges

Economic challenges are also expected to occur shortly. The reasons are as follows. 

  • Investments in the mining industry are closely related to the market supply and demand for a particular natural resource. 
  • As per experts, mining finance depends on several things such as the operating expenses, the stock exchange value of a particular ore, and the high demand that a mining project can bring good profits. 
  • The COVID-19 pandemic is still on, and it has already affected the global economy to a more significant extent. The mining market is also no exception and has suffered huge losses.

Lack Of Human Resources

Another major challenge that the logistics and transportation sector of the mining sector is currently facing is the lack of human resources. Below we have mentioned the main reasons behind this problem.

  • One of the significant factors that control the availability of people willing to join work is the geopolitical environment. So, if the political situation of the mining area is pretty unstable, it will be difficult for miners to find staff.
  • Another major factor is the social acceptability of the project. If the local people do not accept the project, transporting mining products will be complex, risky, and unsuitable.

Increase In The Aging Population

Though not affecting as much as the other issues, an increase in the number of aging people is also expected to affect mining transport services soon. Many mining experts are approaching their retirement, but in contrast, the number of young skilled experts has become relatively less.

Read More: 10 Steps to Follow: How to Start a Transportation Business?

What To Do To Combat Climate Change Issues?

According to top climate experts, the mining companies should take the following measures.

  • They should remain highly alert to any potential natural calamities.
  • The weather forecast reports should be studied with special attention.
  • The companies should build a close collaboration with mining actors.
  • Emergency plans like prevention, planning alternative transport routes are some of the essential strategies companies should take.

With all these measures in the right place, the companies can quickly react to unexpected weather conditions. 

Right now, the mining industry is undergoing a number of changes to fight the global warming effects. 

  • Mines focus on saving more and more energy to gain more profits. 
  • They consume less energy, thus decreasing their production costs while also reducing the environmental footprints. It also allows them not to compromise with efficiency. 
  • There is always a pivotal point between productivity, cost, and the demand for a natural resource to keep the greenery intact. For example, lithium should be extracted and transformed before making an electric car battery.
  • The transport vehicles are also becoming electricity-run. As electric cars do not require fuel, it is considered a long-term solution to the increased rate of global warming.

What Is The Solution To The Aging Population Problem?

The working scenario in the mining industry has also changed a lot because of digitalization. But still one has to learn a lot from the experienced and aged experts. 

  • The knowledge must be passed on from the older generations to the younger generations.
  • As the mining market has also become pretty competitive, people must have the most advanced skills and knowledge. 
  • The younger professionals now have to deal with the latest forms of technology. So, it will be essential for them to have the knowledge of both traditional logistics and other details needed in the modern market. You can understand how challenging the job can be.
  • Therefore, it is crucial to find competent candidates and ensure the knowledge gets transferred to the younger generation. Otherwise, the future of the Australian mining industry cannot be as successful as it needs to be.

Final Words

There are many freight forwarding companies based in Perth. But, while choosing one of them for your mining purpose, you should always go for the most reputed one. Building a close relationship with a reputed freight forwarder will help you thrive even in the global market.