Across the mining sector, electricity demand is rising, data centres are expanding, and critical mineral supply is falling behind demand
Jonathan Price, president and CEO of Teck Resources, said, “A state-of-the-art AI data centre can be built in as little as nine months. A new mine can take as long as 20 years. Demand moves in years; supply moves in decades.”
The question is how the mining industry can respond quickly enough. While greenfield projects remain important, the most effective near-term route to increasing critical minerals production is likely to come from brownfield mining projects. To do this, miners will need to rethink the cost structures that have previously constrained mature operations.
Transitioning to a lower-carbon future depends on responsibly and sustainably producing larger volumes of critical minerals and rare earth elements, which underpin the technologies necessary for the energy transition. The majority of the conversation about meeting this demand focuses on the discovery and development of new mines, without addressing the missing link between critical-minerals ambitions and brownfield project economics.
The long lead times of greenfield mining ventures have resulted in growing recognition that it is faster and more practical to initially focus on growth opportunities in mature mining operations. Several existing mines have access to additional mineral deposits that were considered uneconomic given the mining methods and technologies available at the time.
If viewed from a different perspective, mine operators could utilise the value of certain existing infrastructure, while introducing innovations to transform the cost structure.
Re-evaluating existing resources
Cost factors, along with their respective energy consumption and infrastructure constraints, have previously dictated whether mining could continue on a viable basis. As mines became deeper or ore grades declined, operating costs increased until the economics no longer supported further extraction.
However, the market conditions that determined those decisions have changed. Critical minerals now occupy a strategic position in national industrial policies, energy transition plans and supply chain security strategies. Governments and mining companies are both seeking ways to increase production without waiting a decade or more to permit and develop new mining operations.
As a result, previously marginal ore zones, deeper extensions of existing mines, and dormant operations are being revisited, creating the challenge of how to harness alternative mining approaches to unlock these assets economically.
Looking beyond the conventional
One of the most significant shifts within the industry is a growing emphasis on life-of-mine economics rather than short-term capital decisions. For example, conventional mobile fleet haulage has served the mining industry for decades, but its limitations have become more apparent as mines deepen and production requirements grow. Expanding a haulage fleet requires additional vehicles, operators, maintenance facilities, ventilation capacity, and energy consumption, thereby increasing costs and production demands.
For brownfield projects, this scaling model can make potential resources unattractive. This is where mining companies are increasingly exploring infrastructure-based solutions that change the cost structure of material movement.
Lower operating costs over life of mine
One alternative is autonomous rail-based haulage systems, which offer reduced operating costs over extended mine lives. Rail-based systems rely on fixed infrastructure designed for long-term operation. Once established, these systems can move large volumes of material with lower ongoing costs.
For mines seeking to unlock additional ore reserves in mature operations, lower haulage costs can transform project economics. Resources that may have appeared uneconomic under conventional haulage assumptions can become viable as transportation costs decline.
Reducing energy and ventilation demands
Energy consumption has become increasingly important across the mining sector, with companies facing growing pressure from investors, regulators, and customers to reduce carbon emissions. Oil price volatility also complicates financial planning and management, adding unexpected costs to operations.
The deployment of diesel-powered equipment in underground mines requires ventilation, with implications for infrastructure and ongoing energy use. Ventilation systems are among the most significant energy consumers in many underground operations. As mines go deeper, ventilation demands increase, further raising costs.
Fully electric haulage systems offer an alternative. By reducing reliance on diesel-powered haulage fleets, mines can decrease ventilation requirements while lowering overall energy consumption. For brownfield operations considering life extensions or deeper mining horizons, these savings can materially change project economics while supporting broader sustainability objectives.
Unlocking deeper, more complex ore bodies
As easily accessible mineral deposits become scarcer, mining companies are forced to extract resources at greater depths and in more challenging geological environments. Many mature operations contain substantial resources below existing mining horizons, but the cost of applying conventional haulage systems is often prohibitive.
Rail-based haulage systems can provide a practical solution offering predictable performance and lower operating costs.
Economies of scale without fleet expansion
An inherent challenge of truck-based mining systems is that production growth generally requires proportional increases in fleet size. More tonnes mean more trucks, more operators and more maintenance personnel. This relationship heightens cost pressures as the mining zone deepens and extends further from the process plant.
Infrastructure-based haulage systems operate differently. Capacity can be increased through system optimisation and operational adjustments instead of continual fleet additions.
Integrating into brownfield operations
One advantage of modern rail-based haulage technology is its ability to integrate into existing mining environments. Brownfield projects benefit from existing shafts, declines, processing facilities, power infrastructure, and permitting frameworks. The challenge is to find ways of expanding production without creating major disruptions to operations.
Autonomous rail systems often require a smaller infrastructure footprint than large-scale fleet expansions, enabling mining companies to utilise their existing assets without unduly investing in additional surface and underground development. The result is a more efficient pathway to resource recovery and production growth.
Rethinking traditional approaches to material haulage allows mining companies to unlock resources that were previously considered uneconomic.
