Green Mining Market

Updated on : January 19, 2023

Green Mining Market is expected to grow from USD 11.0 billion in 2022 to USD 17.6 billion by 2027 at a cagr 9.9% during the forecast period. Green mining deals with the technologies, top practices, and procedures implemented by mining companies to make procedures more energy-efficient and reduce the environmental impact related with the extraction and processing of metals and minerals. Some key advantages of green mining include power reduction, fuel and maintenance reduction, emission reduction, water conservation, and mining closure.

The development of cutting-edge green mining technologies aims to raise both the economic and environmental performance of the mining industry. The mining industry will be more likely to be subject to energy and greenhouse gas emission laws due to its high energy consumption and global product trade. The reliability and affordability of water resources and energy supply may be impacted by climate change. For example, rising temperatures will make it more adverse for activities that depend on water in particular mine locations.

The European market is expected to grow at the fastest CAGR of 11.5% between 2022 and 2027, reaching USD 6,387.1 million by 2027. In terms of value, the UK was Europe's largest market for green mining in 2021. The UK market is expected to grow at a CAGR of 15.0% between 2022 and 2027. Europe is expected to dominate the global green mining market during the forecast period. The region has become the largest consumer and promoter of green mining practices as a result of the growth of sustainable practices in countries such as Germany, Russia, France, the United Kingdom, and Rest of Europe. Green mining is expected to be driven by the desire to protect the environment through better technology in this region.

Attractive Opportunities in the Green Mining Market

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Green Mining Market Dynamics

Driver: Growing focus on eco-friendly and sustainable practices in mining industry to curb environmental concerns

The advancement of cutting-edge green mining technologies seeks to increase both the economic and environmental performance of the mining industry. Ores are extracted using a variety of techniques, endangering the environment severely. Mining operations are not sustainable, and the problems they cause have not yet been fully controlled. Therefore, implementing green mining technology helps in achieving sustainable development and controlling problems to the maximum extent. The mining industry is attempting to address the worrying issue of consistent supply since the cost of energy, especially electricity, has increased sharply. The associated environmental costs are likely to rise as a result of factors like declining ore grades, resource intensity, and the amount of waste produced per unit of resource, which will continue to be a constant challenge for the industry's expansion. In an effort to encourage environmental preservation and monitor safety concerns, mining companies are increasingly starting to implement new and greener technologies such as power reduction and the use of renewable energy (solar/wind). The development of green mining technology is driven by different variables, including growing commodity prices, declining productivity, policy changes, and social justice.

Emerging regulations on greenhouse gas emissions, carbon tax, and investor perspectives about environmental, social, and governance (ESG) are encouraging mining companies to adopt low-carbon pathways and work toward the green energy transition.

Restraint: High initial investments creating financial hurdles for adoption of new green mining technologies

Exploring opportunities for capital expenditures and selecting the appropriate projects for execution will be essential in light of recent underinvestment and fairly limited project pipelines. The majority of the increase in these expenses will be made to support modest growth. The move to more remote areas, the necessity to access deeper resources, and the development of autonomous vehicles are the other developments that are anticipated to require mandate increases.

Several companies are concerned by the changes in the mining industry. Green energy equipment will require different equipment utilization and considerable modifications to the infrastructure of the energy supply chain. This will result in a wider variety of equipment and greater machine customization. Thus, the adoption of new technologies in mining operations may be financially difficult because of the high initial investment. This is a key factor responsible for miners still using traditional methods of mining, which are very harmful to the environment.

Opportunity: Use of solar energy to lower environmental risks

Renewable energy (green energy) is produced from resources that replenish over time. The mining industry's most common sources of renewable energy include wind, solar, biodiesel, geothermal, hydropower, hydrogen, and fuel cell energy. Miners employ renewable energy to crush, mine, and process minerals because it is a cost-effective option.

Solar energy, one of the most environmentally friendly forms of energy production, uses the sun's rays to produce concentrated solar power (CSP) or photovoltaic power (PV). The environmental problems connected with nuclear power, water pollution, nitrogen oxides, and other toxic byproducts are not present in solar energy generation. Also, solar energy is available at a lower cost. Renewable energy sources not only reduce the consequences of pollution but also ensure that new technologies in the mining sector operate responsibly. Renewable energy technology is improving the mining industry with cheaper mining operations, more opportunities for engineers to work, less greenhouse gas emissions, support for sustainable development, and increased energy efficiency on mine sites.

Challenges: Illegal mining and its environmental implications

Environmental issues like water pollution, deforestation, poor soil fertility, and restricted access to land for productive agriculture have all been linked to illegal mining activities. Sinkholes, soil contamination, ground and surface water pollution, and biodiversity loss are all results of illegal mining activities. The activities of illegal mining have negatively impacted well-known agricultural practices, such as terracing, crop rotation, utilization of domestic waste/manure, and irrigation of crops. The consequences of illegal mining activities drastically degrade the soil and other resources. Also, illegal mining operations are responsible for the destruction of rainforests and rich topsoil for cultivation. Due to the lucrative nature of unregulated gold rush opportunities, illegal gold mining in many areas is on the rise. This is negatively affecting resilient food systems and sustainable agriculture.

Green Mining Market: Ecosystem

Surface mining is projected to be the fastest-growing during the forecast period.

Surface mining is more productive than underground mining. As a result, this type of mining has a lower production cost. Underground mining equipments are more expensive than surface mining equipments in order to maintain productivity. In addition, an open pit allows for a large production scale. The high proportion of open-pit mines has created the opportunity to mass-produce open-pit equipment.

Power Reduction technology is the fastest-growing technology during the forecast period in the Green mining market.

Power-consuming processes, such as Comminution, is a term used to describe the process of reducing solid materials from average particle size to smaller particle size by crushing, grinding, cutting, vibrating, or other similar methods. It is a high-energy process that involves both crushing and grinding. Because mines rarely have control over energy costs, it is critical that the comminution process meet the requirements while using as little energy as possible.

The Europe is estimated to account for the biggest Green mining market share during the forecast period.

Europe is expected to dominate the global green mining market during the forecast period. Because of the growth of sustainable and environmental friendly practices in countries such as Germany, Russia, France, the United Kingdom, and the rest of Europe, the region has emerged as the largest consumer and supporter of green mining practises. The ambition to protect the environment through technological improvements is expected to drive this region's green mining market.

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Green Mining Market Players

The major players in the Green mining industry are BHP Billiton, Anglo American PLC, Rio Tinto Group, VALE S.A., Glencore PLC, Tata Steel Limited, Jiangxi Copper Corporation Limited, Dundee Precious Metals, Liebherr, among others.

Green Mining Market Report Scope

This research report categorizes the global green mining market on the basis of Type, Technology, and Region.

Green Mining Market, By Type

• Surface
• Underground

Green Mining Market, By Technology

• Power Reduction
• Fuel and Maintenance Reduction
• Emission Reduction
• Water Reduction
• Others

Green Mining Market, By Region

• North America
• Europe
• Asia Pacific (APAC)
• Middle East and Africa
• South America

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In May 2021, BHP partnered with Rio Tinto and Vale to launch the ‘Charge on Innovation Challenge,’ a mining truck electrification initiative. The initiative aims to develop innovative charging infrastructures in parallel with the development of battery-powered electric trucks.
• In October 2022, Rio Tinto collaborated with Scania to establish an R&D unit for autonomous technologies, including electric-powered vehicles.

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