Decarbonisation and Digitalisation – Keeping Australian Mining best of class!

Decarbonisation and Digitalisation – Keeping Australian Mining best of class!

By: Rafael Koenig, Managing Director of Weidmueller Australia

The mining sector is in the middle of a massive transformation process. In 2020 Lars Barnewold and Bernd G. Lottermoser from RWTH Aachen University pointed out in the International Journal of Mining Science and Technology that the implementation of digital innovations, and various terms have proliferated in the media, the internet and at conferences, describing these technological advances and associated imminent changes. Decarbonisation and climate change mitigation in mining are further objectives that gain more and more relevance. In this context, Rafael goes into depth on how our industry has a big role to play in protecting our climate and our economic livelihood through the big trends like “decarbonisation”, “fourth industrial revolution”, “smart mining”, or “mining 4.0”.1

In addition, the mining industry is at a tipping point where sustainability and decarbonisation are top items on CEOs’ agendas2. To achieve a 1.5°C climatechange target by 2050, the mining industry will need to reduce direct CO2 emissions to zero. Encouragingly, analysis shows that solutions to decarbonise the majority of emissions will become economic within this decade, addressing both Scope 1 and Scope 2 emissions.

So, what are the big trends and issues that we see and how can our industry drive successful outcomes?

1 https://www.sciencedirect.com/science/article/pii/S2095268620300744

1. Decarbonisation

The mining industry contributes 2 to 3 percent of global CO2 emissions and has a large role to play in emissions reduction. Within the industry, much of the focus to date has been on portfolio shifts (that is, divestment of coal assets); however, the industry is facing increasing pressure from regulators, investors, and customers to decarbonise operations2. The active mitigation of climate change risks is thankfully not just in the hand of our politicians. The reluctant commitment of our political leaders to achieve netzero and the threat of being left behind by the rest of the world are certainly less than ideal. We see an increasing number of initiatives driven by large resources, energy and manufacturing companies to accelerate their efforts in decarbonising their processes and switch to clean and renewable resources for their energy needs. I see our role within our industry as offering vital solutions in renewable energy (Wind, PV, Battery Storage and Green Hydrogen). In addition, using technology to reduce the energy demand for our manufacturing industry will optimise this industry’s cost structure while reducing the carbon footprint. Decarbonisation also means replacing, or at least dramatically reducing, the need for fossil fuels for areas like transport and the use of gas and coal in heat generation in industrial processes. While hardly anyone can solve all these challenges alone, we as an industry can contribute substantially.

2. Digitalisation

The unmined potential for automation of equipment and decisions is the next frontier in productivity improvements in the mining industry. While for most mid-tier players, dreams of the fully digitally-enabled autonomous mine remain some years away, relatively simpler decision automation initiatives are within reach3 .

Digitalisation, IIoT and Industry 4.0 have for some time now been promoted as technologies that will shape the future of our industries. We now must move from buzz words to real-world use. If we can use digitalisation to improve productivity, we increase productivity and remove waste. If we use condition monitoring, machine learning and analytics smartly, we can reduce maintenance costs and increase the efficiency, safety and reliability of most processes. In addition, if we use the data we collect sensibly, we are able to optimise energy usage and contribute even more to reducing our reliance on traditional energy sources and of course the associated costs. While we cannot move away immediately from all uses of fossil fuels, we have in Australia only scratched the surface in making their use efficient. Thankfully it emerges that our mining industry in particular is getting ready to adopt smart technologies to combine sustainability and productivity. In addition, future investments in Oil and Gas, LNG and Coal for example need to drive efficiency and go hand in hand with the eventual transition towards renewable and clean energy sources. Digitalisation is a key enabler in this field and our industry has a responsibility to optimise processes and engineering to drive sustainable outcomes.

2 https://www.mckinsey.com/industries/metals-and-mining/our-insights/creating-thezero-carbon-mine 3 https://www.pwc.com.au/mining/aussie-mine-2019.html

In summary

Automation, Instrumentation and Process control are shaped by organisations with international footprints. As an industry, we have a body of knowledge, experience and capabilities that cannot be matched by individual organisations. Our industry has proven in the past that it can work together to drive common outcomes but also compete where needed.

If there is one thing that I learned from the challenges we have had during the COVID pandemic, it is the realisation that there is no time to wait. Our industry has a vital role in the big picture that is protecting our climate and our economic livelihood. The question is not, “What are we entitled to?“ but, “What can we do now to start change?“.

We believe in a positive mindset at Weidmueller and will translate this into our commitment. We strive to provide our customers with locally designed solutions for renewable energy projects, the ambition and efforts to contribute to the Hydrogen economy while also developing smart solutions for manufacturing, mining and traditional industries. At the same time let’s not forget that we also have an obligation to manage demand and availability of our more traditional products together with our channel partners. Let’s connect.

About Rafael Koenig

Rafael Koenig is the Managing Director of Weidmueller Australia. He holds a degree in electrical engineering attained at the University of Paderborn, Germany and a Master’s Degree in Business and Technology from the University of NSW, Australia. Rafael has more than 25 years of experience in automation technology and innovation management in Australia and Germany.

“If there is one thing that I learned from the challenges we have had during the COVID pandemic, it is the realisation that there is no time to wait. Our industry has a vital role in the big picture that is protecting our climate and our economic livelihood. The question is not, ‘What are we entitled to?’ but, ‘What can we do now to start change?’”.

About us

Weidmueller’s parent Company is part of the German “Mittelstand”, founded in 1850, familyowned and invested in the Australian electrical engineering industry since 1972. The local operations include R&D, production & assembly, sales and marketing. Weidmueller today is an expert in connectivity solutions for power, signal and data in manufacturing, process control and new and existing energy industries. Enabling technologies such as IIoT, condition monitoring, analytics and “Sensor to the Cloud” connectivity are fast becoming core to our contribution to the sustainable development of the industries we serve.