A fundamental choice for Critical Minerals development: "Fascism or radical democracy?"

The global demand for critical minerals like lithium and copper is surging, but how we attempt to quickly extract them, argues Katherine Teh , Executive Chairman of Spektrum Development , presents a fundamental choice: embrace authoritarian tactics that disregard communities or pursue transparent, consent-based development. In this pivotal moment, the stakes are high-ranging, from environmental destruction to lost economic potential. Which path should be chosen? Katherine Teh of Spektrum Development addressing the 2024 ACFID Conference WE ARE AT a crossroads in the energy transition. The gap between what the mining industry promises and what it delivers has been widening, creating not only delays but the potential for significant socio-economic and environmental risks. As the demand for critical minerals like copper, graphite, and lithium increases, we’re facing mounting challenges in securing these resources quickly enough to support the transition to renewable energy. The Problem Cri

Future of Mining: AI as a Catalyst for Clean Energy’s Critical Mineral Supply

According to new research by Australia’s Monash University and the University of Tasmania, integrating AI could revolutionise the extraction of minerals essential for clean energy and electric vehicles, helping nations overcome barriers to the net-zero emissions targets set by governments and mitigate the looming mineral supply shortfall. 


THE WORLD is at risk of an insufficient supply of critical and rare minerals essential to meet government deadlines for clean energy, electric vehicles, and batteries for solar energy, unless the mining sector adopts artificial intelligence (AI), according to research from Monash University and the University of Tasmania.

In a paper published in Nature Communications, their researchers suggest that AI can revolutionise the mining of minerals such as copper, lithium, nickel, zinc, cobalt, and rare earth elements, all of which are crucial for clean energy technologies.

Critical and rare minerals are vital for achieving net zero emissions by 2050. However, the International Energy Agency (IEA) has highlighted that it takes 12.5 years to transition from exploration to production, making investments appear risky. The IEA estimates that a US $360-450 billion investment is required by 2030 to meet a projected supply of US $180-220 billion, indicating a potential shortfall of up to US $230 billion.

This shortfall could hinder future supply, increase the cost of decarbonisation efforts, and potentially slow them down. The research suggests that AI could address these challenges by improving processes like mineral mapping through drone-based photogrammetry and remote sensing, accurately calculating mine lifespan, and enhancing mining productivity, including drilling and blasting performance.

The Role of AI in Managing Investment Risks

AI can also reduce the required rate of return on investment by forecasting the risk of cost overruns and improving equipment planning, predictive maintenance, and management to minimize repairs.

Associate Professor Joaquin Vespignani from the Tasmanian School of Business and Economics at the University of Tasmania noted that their research introduces the concept of a back-ended risk premium, which refers to the additional risk for investors in critical mineral projects with unaddressed technical and non-technical barriers, particularly those involving lithium and cobalt.

The back-ended risk premium raises the cost of capital and could reduce investment in the sector. However, advancements in AI may reduce this risk premium by shortening the duration of mining projects and lowering the required rate of investment by mitigating associated risks. 

The researchers conclude that substantial government investment in AI mining technologies and research is essential to lower the costs of energy transition and prevent clean energy initiatives from becoming prohibitively expensive.

Australia’s Strategic Position in Asia’s Mineral Supply Chain

In Asia, Australia holds a significant advantage with the world's largest proven reserves of nickel and zinc, the second largest reserves of cobalt and copper, and the third largest reserves of bauxite. Additionally, Australia is the leading producer of bauxite and lithium and ranks third in cobalt production.

 To capitalise on these resources, AI must be integrated throughout the mining process, according to Deputy Dean of Research at Monash University, Professor Russell Smyth. He emphasised that AI can make the mining industry more efficient, cost-effective, less risky, and environmentally friendly.

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For more details, refer to the full paper in Nature Communications: "Artificial intelligence investments reducerisks to critical mineral supply" (DOI: 10.1126/sciadv.ado6566).