"Unfortunately, primarily due to risk aversion (of cost and technology) there is an old adage in the mining sector that 'miners like to be first to be second,'"
says EY's Business Risks Facing Metals and Mining 2016 report which focuses on ten industry conditions that could create risks or opportunities for mining companies going into the new year. Amongst the risks highlighted by EY, innovation, or rather mining's natural aversion to innovation, makes the No. 10 spot.
"It is clear that compared with most other sectors, there is a deficit of transformational innovation in the [mining] sector," EY reported.
"The first automated truck was seen 20 years ago and yet there is not a complete fleet in existence at a mine."
The closest thing we have seen to having a fully automated fleet is Rio Tinto's Mine of the Future that touts a network of 69 unmanned haul trucks. Rio's competitors are working to catch up, but in 20 years should not the sector as a whole be farther down the innovation cycle with a technology that is clearly beneficial?
EY's point? Those that innovate will survive. Those that don't? Well, you get the idea.