Mining transformed by digital revolution and clean energy shift

The mining industry is undergoing a core transformation — from the way operations work to the rising demand for base metals. Propelled by technology, pressing ethical standards and the fourth industrial revolution, the mining sector has been rethinking its approach to business since 2017.

Leveraging on the global energy transition propelled by governments and companies around the world aiming to reduce carbon emissions, as well as demand for metals for use in infrastructure in emerging economies, miners are working to meet the needs of a changing world.

S&P believes copper and zinc will be in the spotlight in the near future. In fact, China’s zinc demand could rise more than predicted in 2019 as infrastructure fixed asset investment growth accelerates to 10% from 3.8% last year, while a pick-up in construction is likely to spur zinc demand and heat up the market, according to Bloomberg Intelligence.

In anticipation of the expanding production of electric vehicles, demand for battery metals is growing, becoming the main opportunity in mining. Demand for lithium is expected to soar, as well as graphite, nickel and copper, confirming the trend for the use of base metals in batteries and storage. Copper is a fundamental metal for electric vehicles, and according to the International Energy Agency, their number will increase 1,389% — to 125 million from three million — by 2030, and 3,333% in 2040 to 300 million.

“Looking back just 20 years, it’d have been hard to believe that nickel, lithium, cobalt and graphite would be an affordable way to power batteries,” says Phil Hopwood, Global Mining Leader at Deloitte. “Today that is the reality and a potential growth opportunity, particularly with the emergence of electric vehicles.”

Hopwood also highlights that in order to succeed in this changing scenario, companies need to think long term when implementing their strategies, by studying trends and market opportunities and embracing digital innovation. “I see mining really making changes in terms of adopting digital technology and innovative thinking,” he added.

The integration of disruptive technologies into operations and risk management can be one of the pivotal points to enhance activity. Artificial Intelligence, AI, has proven very beneficial. Scenario planning enhanced by AI offers a structured way to consider unpredictable futures, equipping executives and engineers with information they can use to make more strategic choices.

Thanks to the power of AI mining, companies can identify ore bodies in greenfield and/or remote areas without access to pre-existing geological data. EARTH AI, for example, uses machine learning to analyse geophysical data to identify unexplored mineralisation opportunities in Australia. Since April 2018, it has discovered 18 new greenfield prospects with significant copper, zinc, lead, and vanadium mineralisation.

Blockchain, another hyped disruptive technology, can offer multiple advantages to mining companies. An ever-growing consumer awareness means that ethical and corporate responsibility has become a central concern for companies. With the use of blockchain, all the steps in natural resources exploration can be recorded and disclosed, holding companies to account.

Blockchain technology has the capacity to store a huge amount of data on an open, secure and accurate platform. A decentralised digital ledger network can record, track, verify and share each and every element of all the assets in one single network, which is open to public access. It can pull together links all along the chain, from raw material providers right up to retailers. Such technology can help fight slavery, child labour and environmental concerns.

In the realm of precious metals, palladium is surging, also promoted by automotive industry demand. For the first time in more than a decade, palladium is rivalling gold in value. The key drive to rising prices is increasing demand combined with long-term constrained supply.

The palladium price reached as high as $1 400/oz in January 2018, making it ‘the most precious of precious metals,” says Mining Review.

In terms of industry revenue, growth will be stable but much less impressive compared with the sharp increase seen in 2017. For the world’s top 40 miners, 2017 was an outstanding year due to the continuing recovery in commodity prices, fuelled by general economic growth, resulting in revenues rising dramatically by 23 per cent.

For 2019 and 2020, S&P Global Ratings expect relatively flat revenues across the upstream and downstream sectors.

Keep an eye out for our upcoming episode on Financial Fox about new trends in mining and the impact on digitisation. Follow us on @cassiopeia_ltd and subscribe to our YouTube channel.

New approach to the mining sector.

St-Georges Eco-Mining Corp. operates as a mineral exploration and production company. The Company explores gold, platinum, palladium, rhodium, copper, cobalt, nickel, and other base metals. St-Georges Eco-Mining develops its projects in Canada and Iceland.

St-Georges is developing new technologies to solve the some of the most common environmental problems in the mining industry. Part of the strategy of the company is to invest and develop technologies that address corporate responsibility issues underlying the mining industry, and by addressing these flaws, will make mining more sustainable and accountable.

The Company controls directly or indirectly, through rights of first refusal, all of the active mineral tenures in Iceland. It also explores for nickel on the Julie Nickel Project & for industrial minerals on Quebec’s North Shore and for lithium and rare metals in Northern Quebec and in the Abitibi region. Headquartered in Montreal, St-Georges’ stock is listed on the CSE under the symbol SX, on the US OTC under the Symbol SXOOF and on the Frankfurt Stock Exchange under the symbol 85G1.

St Georges’ business model is straightforward: the company develops metal processing technologies to be deployed to change the environmental impact of mining operations around the world, while improving the profitability and the financial bottom line of current base metals producers.

Golden Saint (GST) preparing for LSE Standard listing as new revenue-generating business

The new Golden Saint is about to be listed on the main London market under the ticker of GST: a global technology investment company leveraging on its integrated Information Communication Technology (ICT) strategy to offer tech solutions worldwide.

GST is the result of a reverse take-over (RTO) of AIM listed Golden Saint Resources (GSR), incorporating the well-established tech business EMS Wiring, which has been supplying governments and large private organisations with intelligent building solutions for the last 20 years.

Although the diamond licences in Sierra Leone were believed to have good potential, the costs of progressing the work and bringing production to a substantial revenue proved too high for a small company like GSR. The capital required was high, the work to be done before any results could be seen was substantial, . Such a business became unfit for an Aim company, as most investors are looking for progress and news. The future looked hard. GSR tried but possibly failed to keep investor support amid the challenges involved in mining operations, market conditions, and Ebola hitting the country in 2016.

The Board therefore decided to evaluate alternative opportunities to bring back value to its shareholders.

Golden Saint left the past behind and focused on putting its revenue- generating strategy into action. The rightt opportunity then arose through Singaporean contacts in the technology business.

Renowned private equity executive Tone Goh saw the value in taking over GSR, deciding to bring in his business EMS Wiring to fast-track its expansion. In December 2017, after suspension, Golden Saint Resources delisted from AIM, and after a share consolidation started to prepare a new listing on LSE Standard.

“We saw the opportunity in EMS as a business which has cash flow and profits,” said the then CEO of Golden Saint Pierre Fourie in an interview with FinancialFox. Hehighlighted that this change in the business’s direction was aimed at giving investors better returns.

Having completed the various pre-Admission steps, Golden Saint is now ready to proceed with Admission. GST builds on the consolidated cabling business to develop solutions the current needs of the ICT industry. Through the previous EMS Wiring, GST has been supplying governments and large private organisations with intelligent building solutions for the last 20 years. This extensive experience bodes well as the company now places itself within one of the fastest growing markets with opportunities expanding by the minute.

The global ICT market has grown consistently over the last decade. By next year, forecasts show that the global ICT market, including TV and video services, will be worth a total of more than 4.4 trillion euros. The emergence of other technologies such as artificial intelligence and internet of thigs (IoT) promise to keep widening the path for ventures in the ICT space and calling for more innovative solutions.

Golden Saint Technology is strategically positioned in the ICT (Information and Communication Technology) market. Although the company operates worldwide, its hub is in Asia, where the ICT industry is brewing and expanding at a fast pace and fueling opportunities for GST.

GST is at full steam as it has already laid out plans for after the listing: “We are very excited because after our listing we are entering the Indian market on a great opportunity to provide internet infrastructure for one million homes and we will have good profit from there,” said Chairman Tone Goh, at GST Investor Presentation in London last summer.

In an interview at the show FinancialFox

Golden Saint has a brand-new website. Visit goldensaint.com.