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View all search resultsMinistry eyes more underground mining amid declining reserves
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Workers walk on Jan. 4, 2022, near a tugboat carrying coal barges at a port in Palembang, South Sumatra, Indonesia, in this photo taken by Antara Foto. Antara Foto/Nova Wahyudi/ via REUTERS (Reuters)
T
he government expects an uptrend in underground mining to take hold in the country as surface mineral reserves continue to decline.
Irwandy Arif, the Energy and Mineral Resources Ministry’s special staffer for the acceleration of mineral and coal management, said excavating minerals below the surface will double the operational costs of surface mining, while its capital investment is projected to triple or quadruple the amount needed for open pit mining.
He added that these higher costs would cover additional expenses for equipment including ventilation and caving support. Moreover, underground mining is expected to result in higher amounts of material waste, which will need to be removed to obtain the ore.
“Although [underground mining] requires more investment, higher costs, more advanced technology and more expertise, it has the potential to reduce the risk of environmental impacts compared to surface mining,” he said in Jakarta on Friday.
The world underground mining market is expected to experience a 3.62 percent compound annual growth rate (CAGR) over the 2023-2033 forecast period, bringing the value of the sector to US$34.97 billion by 2033, according to a report published by consulting firm Research Nester.
Growing requirements for various minerals such as iron, copper and coal have significantly pushed the demand for underground mining, according to Research Nester.
The market insights company also pointed to the rapid shift to renewable energies such as solar and wind, as well as electric vehicle (EV) batteries, as major drivers in the mining of cobalt, lithium and other rare earth elements.
