I’ve become a bit obsessed recently with the concept of ‘mini mines’; not the kind that Lego sells, but the notion that successful businesses can be built upon portfolios of small-scale assets, or those which are designed to be modular and/or mobile.
Of course, this goes against everything the mining industry stands for to date. From trucks that can haul 400 tonnes of ore (or more), to the vast pits that are dug to access orebodies, the ‘bigger is better’ mentality is clear, even to the layman. This is mineral extraction on steroids. And in a linear, take-make-waste economy, it works.
But the linear economy is on borrowed time and, ergo, so are the companies that depend upon it. Recognition of this is evident in the number of cost-cutting regimes and optimisation programmes that are feverishly underway. Traditional mining companies and their operations are built to leverage economies of scale. Within these types of portfolios, smaller, short-life assets would be lost. The juxtaposition between rates of return means they simply wouldn’t make the cut.
But what if businesses were built differently, if their models centred entirely around smaller, short-term and low-impact assets? What possibilities might this unlock in environmental and social performance? Many critical metal deposits – lithium, for example – lend themselves well to this approach, while others, like copper, tend not to.
It’s important to note that there is no right or wrong answer here. The world needs responsible bulk commodity producers as much as it needs battery metal miners. I do wonder though if, in time, we’ll see an industry divided…? Davids and Goliaths. ‘Good’ miners and ‘bad’ miners [note the apostrophes] seen through the eyes of the public. It’s important that we have these discussions now to avoid such pitfalls.
There’s more on this to come, on topics ranging from mine design to new business models, and modular mines to capital projects. Enjoy, and let me know your thoughts too.
Carly
The mining industry has long championed a ‘bigger is better’ mentality, but as the linear economy falters, a new model is emerging. We explore the potential of ‘mini mines’, modular, low-impact assets that challenge traditional economies of scale and offer a glimpse into a more sustainable future.
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“AI chatbots won’t save the world. AI mineral exploration might”
TerraAI