MINEX Eurasia 2024

Western Economies overwhelmingly rely on foreign nations for their critical mineral supply. Until 2022 this import reliance was heavily skewed towards China or Chinese-controlled mines in Africa, South America and Southeast Asia. China’s share of market value for mined materials is rapidly increasing overall, largely due to its growing output of copper and lithium. China has in the past shown a willingness to weaponise its monopoly which has led to an urgent call in the Western Economic Block for diversification away from Chinese sources.  Countries in Central Asia, Mongolia, the Caucasus and the Caspian region could benefit from developing their mining sectors to enhance their sovereignty. As Western markets seek outside sources of critical minerals, these nations can develop new export economics, independent of their past relationships, and redefine their value.

The prospects for sustainable development and investment opportunities in the mining industry in Eurasia are promising yet complex.

By embracing innovative practices, adhering to stringent environmental regulations, and engaging with local communities, the mining sector can contribute to both economic growth and environmental sustainability. Investors, policymakers, and industry leaders must work collaboratively to navigate the challenges and harness the opportunities, ensuring that the region’s rich mineral resources are developed responsibly for the benefit of current and future generations.

The development of critical raw materials across Eurasia is heavily reliant on the financial markets and strategic investors. However, in 2024, many mining companies in the region were negatively impacted by rising costs, inflation, shrinking exports, and the “impact investment” requirements to improve ESG performance by commissioning costly technological modernisation.

The ongoing war in Ukraine and dependence on Russia and China continue to drive up investment risk discounts and the cost of borrowing. To address these challenges, the EU, UK, US, and Canadian governments have helped with developing the Middle Corridor, allowing exporters to bypass Russia. Other long-term initiatives include technical assistance with the acceleration of exploration and the development of large-scale green energy projects.  The question remains whether these promised commitments will remain feasible when geopolitical tensions subside. In the current environment, strategic investors differ from independent investors in that they are endowed with an asset, or portfolio of assets, whose value will be enhanced if the project turns out to be successful. As such, it is in their interest to support long-term initiatives that can lead to sustainable economic growth in the region. The financial market, a broad term describing any marketplace where trading of securities including equities, bonds, currencies, and derivatives occurs, also plays a vital role in providing the necessary capital to fund these initiatives. Therefore, the continued involvement of strategic investors and the stability of financial markets will be crucial in ensuring the success of these initiatives and the sustainable development of critical raw materials across Eurasia.

The mining industry is facing both challenges and opportunities as it moves towards a more sustainable future. The industry is responsible for significant greenhouse gas emissions, with three broad types of emissions including Scope 1 (emissions from diesel), Scope 2 (emissions from electricity generation), and Scope 3 (emissions from the supply chain and transport).

As water stress becomes more frequent due to climate change, mining companies must prepare for climate hazards, as 30 to 50 per cent of copper, gold, iron ore, and zinc production is concentrated in areas where water stress is already high. To protect the environment and promote sustainable development, green transformation, climate management, and mining waste management are crucial. The transition to carbon neutrality will require significant investment in new products and energy technologies. Tax burden stability and the tax environment are also important factors that affect investment planning and the “green” development of mining companies. In 2024, mining companies operating throughout Central Asia, Mongolia, and the Caspian region will need to focus on their ESG (environmental, social, and governance) performance and adopt new technologies and practices to remain competitive and meet the expectations of stakeholders while also remaining competitive in a changing global market.

What Artificial Intelligence and Cloud Computing are Transforming Mineral Supply Chains, Driving Unprecedented Efficiency and Speed in All Aspects of Mining Industry.

The mining industry has long been a significant contributor to the global economy, providing essential minerals and metals for various industries. However, the industry has traditionally been slow to adopt new technologies, relying on manual processes and outdated methods. The advent of artificial intelligence (AI) and cloud computing is revolutionizing the mining industry, transforming mineral supply chains, and driving unprecedented efficiency and speed in all aspects of mining.

Challenges and Opportunities

While AI and cloud computing are transforming the mining industry, there are still challenges and opportunities to be addressed:

Data Quality: The quality of data is critical to the success of AI and cloud computing in mining. Mines must ensure that their data is accurate, complete, and consistent.

Cybersecurity: Mines must ensure that their data and systems are secure and protected from cyber threats.

Workforce Development: Mines must invest in training and development programs to ensure that their workforce has the skills and knowledge needed to work with AI and cloud computing.

Regulatory Frameworks: Governments and regulatory bodies must develop frameworks that support the adoption of AI and cloud computing in mining.

Sustainable mining and post-mining reconciliation are critical components of a balanced approach to resource extraction. As the world’s demand for minerals and metals continues to grow, it is essential to ensure that mining activities are conducted in a responsible and sustainable manner that minimises environmental and social impacts.

Key strategies for achieving this balance include:

Environmental Stewardship: Prioritising the responsible use and protection of natural environments through active participation in conservation efforts and sustainable practices.

Waste Management and Reclamation: Implementing proper tailing management and restoring mined areas to their original state to minimize environmental damage.

Energy Efficiency and Renewable Energy: Investing in energy-efficient technologies and utilising renewable energy sources to reduce the mining industry’s carbon footprint.

Systematic Industry-Government Data Integration: Developing robust frameworks for geological stock accounting and material flow analysis to monitor and model changes in natural resource endowments over time.

Closed-Loop Approaches: Implementing closed-loop management systems that integrate online geo-data with mining intelligence to optimize resource extraction and minimise waste.

Quantifying Uncertainty: Using classification schemes and conditional simulations to quantify uncertainty in mineral resources and improve resource management.

Systematic Frameworks: Developing systematic frameworks for metal accounting and mineral resource extraction to ensure highly reliable approaches.

By adopting these strategies, the mining industry can reduce its environmental impact, ensure the long-term sustainability of mineral supplies, and contribute to global efforts to combat climate change and preserve biodiversity.

Case Studies, Innovative Technologies, and Regulatory Frameworks

Eurasia is a vast and mineral-rich region, home to a diverse range of mineral deposits and resources. The exploration, extraction, and processing of minerals in Eurasia is a complex and challenging process, requiring innovative technologies, effective regulatory frameworks, and careful environmental management.

Innovative Technologies

Artificial Intelligence (AI) and Machine Learning (ML): AI and ML are being used to optimize exploration, mining, and processing operations. These technologies can analyse vast amounts of data to identify promising mineral deposits, optimize drilling and blasting patterns, and improve the efficiency of mineral processing plants.

Remote Sensing and Drones: Remote sensing technologies, including satellite imagery and drones, are being used to map mineral resources and monitor environmental conditions. Drones are also being used for inspection and surveillance tasks.

Automation and Robotics: Automation and robotics are being deployed in mining operations to improve safety, productivity, and cost-effectiveness. Autonomous vehicles are being used for hauling ore, while robots are being used for tasks such as drilling and blasting.

Blockchain: Blockchain technology is being used to track the provenance of minerals, ensuring that they are sourced ethically and responsibly. This can help to prevent fraud and ensure that minerals are not being used to finance conflict.

3D Printing: 3D printing is being used to create customized mining equipment and spare parts, reducing the need for expensive and time-consuming imports.

Regulatory Frameworks

The regulatory frameworks for mining in Eurasia vary from country to country. However, there is a growing trend towards more stringent environmental and social regulations. Mining companies are increasingly expected to minimize their environmental impact, engage with local communities, and contribute to sustainable development.

Challenges and Opportunities

The mining industry in Eurasia faces a number of challenges, including the harsh climate, remote locations, and complex regulatory environments. However, the region also offers significant opportunities, thanks to its vast mineral resources and growing demand for metals and minerals.

By embracing innovative technologies and adopting sustainable practices, the mining industry in Eurasia can overcome these challenges and unlock its full potential. This will not only benefit the industry but also the communities and economies of the region.

The global economy heavily relies on raw materials, which are essential for producing a wide range of goods and modern technologies. However, many industrial countries face a growing concern over reliable access to certain raw materials.

With the diminishing dominance of Russia and China as global suppliers of critical raw materials due to various geopolitical factors, efforts are underway to promote investment in the raw materials sector and develop alternative sources of these critical materials. This creates new opportunities for Eurasian miners to become major suppliers of raw materials for clean energy technologies. As a result, securing the supply of critical raw materials from Eurasia is becoming increasingly important for the EU and other countries seeking to develop clean energy technologies.