By Thomas Tobin, EVP of Sales and Marketing, Railveyor
Across the mining sector, one theme is becoming increasingly urgent: electricity demand is rising, data centres are expanding rapidly, and critical mineral supply is falling further behind demand. Jonathan Price, President and CEO of Teck Resources, captured the scale of the challenge when he observed: “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 unlock that potential, however, miners will need to rethink the cost structures that have historically constrained mature operations.
Transitioning to a lower-carbon future is dependent on responsibly and sustainably producing much larger volumes of critical minerals such as copper, nickel, cobalt, lithium and rare earth elements which underpin the technologies driving the energy transition. Much of the conversation around 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.
Given the long lead times of greenfield mining ventures, however, there is growing recognition that it is faster and more practical to look first at the growth opportunities in mature mining operations. Many existing mines have access to additional mineral deposits which have previously been considered uneconomic – based on the application of mining methods and technologies available at the time. Viewed through a different lens, though, mine operators could leverage the value of certain existing infrastructure while introducing key innovations that transform the cost structure.
Re-evaluating existing resources
Historically, cost factors such as haulage and ventilation – and their respective energy consumption and infrastructure constraints – often dictated whether mining could continue on a viable basis. As mines became deeper or ore grades declined, operating costs often increased until the economics no longer supported further extraction. However, the market conditions that shaped those decisions have changed dramatically.
Critical minerals now occupy a strategic position in national industrial policies, energy transition plans and supply chain security strategies. Governments and mining companies alike are seeking ways to increase production without waiting the decade or more often required to permit and develop entirely new mining operations.
As a result, previously marginal ore zones, deeper extensions of existing mines and even dormant operations are being revisited. The key question now is how to harness alternative mining approaches to unlock these assets economically.
Looking beyond the conventional
One of the most important shifts occurring across the industry is a growing emphasis on life-of-mine economics rather than short-term capital decisions. For instance, conventional mobile fleet haulage has served the mining industry well for decades, but its limitations become increasingly apparent as mines deepen and production requirements grow. Expanding a haulage fleet typically requires additional vehicles, operators, maintenance facilities, ventilation capacity and energy consumption. Costs, therefore, tend to rise in parallel with production demands.
For brownfield projects, where economics can be particularly sensitive, this scaling model can make potential resources unattractive. This is where mining companies are increasingly exploring infrastructure-based solutions that fundamentally change the cost structure of material movement.
Lower operating costs over life of mine
Such alternatives include autonomous rail-based haulage systems, which offer reduced operating costs over extended mine lives. Unlike truck fleets, rail-based systems rely on fixed infrastructure designed for long-term operation. Once established, these systems can move large volumes of material with significantly lower ongoing costs.
For mines seeking to unlock additional ore reserves in mature operations, lower haulage costs can have a transformative effect on project economics. Resources that may have appeared uneconomic under conventional haulage assumptions can suddenly become viable when transportation costs are reduced over decades of operation.
Reducing energy and ventilation demands
Energy consumption has of course become an increasingly important consideration across the mining sector. Mining companies face mounting pressure from investors, regulators and customers to reduce carbon emissions by moving away from reliance on diesel. Oil price volatility also complicates financial planning and management – often adding unexpectedly to operating costs like haulage. The deployment of diesel-powered equipment in underground mines also requires significant ventilation – with implications for both infrastructure and ongoing energy usage. Ventilation systems in fact represent one of the most significant energy consumers in many underground operations. As mines extend deeper, ventilation demands typically increase, further raising operating costs.
Fully electric haulage systems offer an alternative pathway. By reducing reliance on diesel-powered haulage fleets, mines can decrease ventilation requirements while also lowering overall energy consumption associated with material transport. 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 across the globe, mining companies are increasingly forced to pursue 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 – especially those with spatial flexibility and steep gradient capabilities – can provide a practical solution offering predictable performance and lower operating costs.
As mentioned, an inherent challenge of truck-based mining systems is that production growth generally requires proportional increases in fleet size. More tonnes typically mean more trucks, more operators and more maintenance personnel. This scaling relationship exacerbates cost pressures as the mining zone deepens and extends further from the process plant.
Infrastructure-based haulage systems operate differently. Capacity can often be increased through system optimisation and operational adjustments rather than continual fleet additions. This creates powerful economies of scale that become increasingly valuable as mines seek to expand production from existing assets.
Integrating into brownfield operations
Perhaps one of the most compelling advantages 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 ongoing operations.
Autonomous rail systems typically require a smaller infrastructure footprint than large-scale fleet expansions. This allows mining companies to leverage their existing assets without having to invest unduly in additional surface and underground development requirements. The result is a more efficient pathway to resource recovery and production growth.
By rethinking traditional approaches to material haulage, mining companies can unlock resources that were previously considered uneconomic. Technologies such as fully electric, autonomous rail-based haulage systems can transform project economics, helping operators to accelerate their access to critical minerals.
About Railveyor Technologies Inc.
Railveyor is the one of the world’s most innovative mining bulk material handling systems. Fully-electric and TrulyAutonomous, its narrow-gauge light rail system is propelled by low-horsepower stationary power plants adjacent to the rail route. Railveyor’s goal as an enterprise is to maximize efficiency of mines’ haulage operations, doing this in a safe, sustainable, and scalable way using the most durable and efficient mechanical system driven by a leading software solution.
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