Mining.com.au is exploring some of the important trends from 2024 that are shaping the mining equipment, technology, and services (METS) industry heading into 2025.
As the second-largest centre of exploration – just behind Canada – Australia is recognised as the world leader across many different commodity segments and technology platforms.
Ahead of the International Mining and Resources Conference (IMARC) in Sydney on 29-31 October, a four-part METS Insight: State of Mining Review series is being published with insights from the whole spectrum of the market – executives of billion-dollar listed companies to privately held startups trying to get a foothold in the industry.
Combined, the mining and METS sector contribute an estimated 15% of Australia’s GDP, creates more than 1.1 million jobs, of which METS businesses employ 300,000 people directly.
While existing concerns about climate change and the global push net zero emissions targets is creating a challenging environment, the mining industry also faces a rising risk of stricter regulations, particularly in areas around noise and water pollution, to name a few.
State of standards in mining
At this year’s Resourcing Tomorrow event in London keynote speaker, International Council on Mining and Metals CEO Rohitesh Dhawan, was less than complimentary about mining standards saying they “hardly set anybody’s heart racing”.
“But they are the absolute bedrock of our industry’s commitment to operating responsibly. Unless a wide portion of the industry embraces responsible practices, the reputation of this industry will not change,” Dhawan said at the time.
Dhawan is calling for higher international performance and believes conduct thresholds are vital to the mining industry’s future even if markets remain largely indifferent about a “level playing field that does not disadvantage responsible producers”.
Mining and METS companies need to adopt innovative approaches to balance profitability with meeting existing and forthcoming regulatory requirements. This involves adopting sustainable tailings management practices, using advanced technologies to reduce noise pollution, and implementing water management systems, for example.
This is one aspect of operating that Russell Mineral Equipment will not compromise on.
Speaking to Mining.com.au following RME winning the 2024 Queensland Mining Industry Health & Safety Conference (QMIHSC) Innovation Award, Company Director Cherylyn Russell says as RME approaches its 40th anniversary, the award recognises the company for raising safety standards in the mill relining industry.
The mill relining systems original equipment manufacturer remains dedicated to maximising the performance potential of the RME Mill Relining System for every customer – past, present and future – regardless of broader market sentiment.
Russell believes safety standards are improving in the mining sector as evidenced by a 65% reduction in the fatality rate in the past decade.
“The inherent risks remain, however, so ongoing prioritisation of workplace safety culture is essential, across training and education, use of safety equipment, risk assessment and management, real-time monitoring, reporting and investigation, and finally, emergency preparedness and response planning,” she tells Mining.com.au.
“Five areas of growing safety focus that we’ve observed in the mining industry since 2023, include psychological safety and mental health, safety beyond the ‘workplace’, extreme weather preparedness, emphasis on diversity, equity and inclusion, and company-wide safety culture.”
Russell says safety is RME’s reason for being: “It was founded in 1985 when our founder John Russell identified a critical industry need to improve the safety of grinding mill relining. Our company motto is fast, reliable, safe. This appears on every item in the RME Mill Relining System and safety is our design, manufacturing and user experience intent,” she adds.
“Our company culture and focus must be consistent with the industry we serve so we pay particular attention to safety trends and standards in the mining sector”
“Our company culture and focus must be consistent with the industry we serve so we pay particular attention to safety trends and standards in the mining sector. More than that, one of our strategic focuses is to be recognised for changing the mill relining industry through demonstrable safety leadership, so we are intentional and invested in making safety changes for the better.
“We observe that safety is prioritised by the broader METS industry, as mining companies and the METS who support them increasingly embrace the balanced scorecard approach inherent in Environmental, Social and Governance frameworks.”
The QMIHSC award recognises RME’s Advanced Technology Mill Relining System for its use of automation to eliminate the need for crew to enter the mill during liner exchange, delivering significant safety and commercial outcomes for customers and the wider industry.
Safety performance
Safe Work Australia is consulting on the proposed workplace exposure limits (WELs) for nine chemicals (respirable crystalline silica, benzene, chlorine, copper, formaldehyde, hydrogen sulphide, nitrogen dioxide, titanium dioxide, hydrogen cyanide).
This consultation seeks feedback from stakeholders on the economic, social and health impacts of the proposed WEL for each of the 9 chemicals as listed below.
Safe Work Australia will open the consultation soon.
Submissions will be used by Safe Work Australia to prepare a report for work health and safety (WHS) ministers to help them decide, for each of the 9 chemicals, whether or not to implement the proposed exposure limit and the timeframe for implementation.
Until WHS ministers make their decision on the proposed exposure limits, including the implementation timeframe, the current WES for each of the 9 chemicals will be retained.
In 2019, Safe Work Australia undertook a review of the workplace exposure standards to ensure that the WES are based on contemporary evidence and provide the best protection for workers and others in the workplace. The WES review resulted in the WEL list.
Ministers agreed to the WEL list and a transition to adopt it on 1 December 2026, replacing the previous list.
A giant player in the space, global engineering firm Worley (ASX:WOR), which delivers projects for the energy, chemicals, and resources sectors, reports the total recordable case frequency rate for employees for the 12 months to June 2024 was 0.10 (per 200,000 hours worked), improving from 0.14 at June 2023.
This metric assesses a company’s safety performance compared to its industry counterparts. It evaluates the frequency of recordable incidents per 100 full-time workers annually.
“Worley is committed to providing a respectful, safe and healthy environment where we support each other and our communities,” the $7.62 billion market capitalisation company says.
Sadly, despite a focus on safety, workplace fatalities and incidents of serious injury still occur.
The International Council on Mining and Metals was founded in 2001 as a CEO-led leadership organisation with the premise of improving sustainable development in the mining industry. ICMM began collating and publishing data on members’ safety performance in 2012 with the intention of driving transparency, learning and continual improvement across the industry.
ICMM compiles, analyses and publishes the safety data provided annually by company members, which collectively represent a third of the global mining and metals industry.
The ‘Safety Performance: Benchmarking Progress of ICMM Company Members In 2023′ tragically reports 36 people from ICMM company members were killed at work in 2023. This compares to 33 in 2022 and 45 in 2021.
The report analyses fatalities from ICMM company members based on the cause (or ‘hazard’) and provides safety performance metrics by county and company. Last year, 10 of these fatalities were related to mobile equipment and transportation, and five fatalities were caused by structural failures.
ICMM member operations in South Africa had the highest number of fatalities (13), accounting for 36% of the total fatalities across its members. However, 12 out of 25 members reported zero fatalities.
ICMM says it stands for mining with principles. It brings together a third of the global mining and metals industry, along with key partners to drive leadership, action and innovation for sustainable development, ultimately delivering a positive contribution to society. Through collaboration, ICMM member companies set the standard for responsibly produced minerals and metals in a safe, just and sustainable world.
Regulatory shifts
Work continues to streamline a plethora of industry operating codes and standards and bring in independent, multi-stakeholder governance to oversee a new rulebook. Developments in operating codes and standards carry substantial implications for mining companies, particularly with mandatory reporting on the horizon.
Following the International Sustainability Standards Board’s (ISSB) first two standards, the IFRS S1 and S2, the Australian Government has announced its intention to align mandatory sustainability reporting requirements with the ISSB.
The standards draw on the Task Force for Climate-related Financial Disclosure (TCFD) in which mining companies must understand and transparently disclose their climate impacts and risks under various scenarios.
The ISSB assumes responsibility for monitoring companies’ progress in reporting against the TCFD. For those already reporting under TCFD standards, more scrutiny over the scenarios modelled is expected as investors increasingly rely on these reports to understand the long-term risks with their investments.
Recent legislative changes, such as Western Australia’s Work, Health, and Safety (General) Regulations 2022 (WHS Regulations), highlight the evolving regulatory landscape for the industry. These regulations now require underground mines beyond 200m to assess and control risks comprehensively.
Another significant development is the Global Industry Standard on Tailings Management (GISTM), which aims to improve the safety and sustainability of tailings storage facilities.
These regulatory measures share the same purpose – to protect workers, local communities, and the environment. Non-compliance has severe consequences, including fines, penalties, and reputational damage for mining companies.
The Queensland Government has passed the Resources Safety and Health Legislation Amendment Bill 2024, helping to improve safety for the state’s resources employees.
The reforms modernise regulatory enforcement powers, ensuring the state’s resources safety and health legislation is both contemporary and effective.
Mine and quarry sites will now be required to introduce critical controls in their safety and health management systems, with enforceable undertakings being introduced for the first time in the Queensland resources industry.
An enforceable undertaking is an alternative to prosecution and allows the regulator to accept an undertaking from individuals and companies where they have breached the safety and health legislation, but not in matters involving workplace deaths.
The changes to the Resources Safety Acts were informed by recommendations from the Brady Review into fatal accidents at Queensland mines, the Queensland Coal Mining Board of Inquiry, the coronial inquest into the death of Gareth Dodunski, and industry consultation.
In tomorrow’s (24 October) final edition of the METS Insight: State of Mining Review series, Mining.com.au looks at talent acquisition and the skills labour shortage.
Write to Adam Orlando at Mining.com.au
Images: Stock, Russell Mineral Equipment, Perenti & Auric
