The mining industry is facing a range of new challenges. Demand for commodities is putting pressure on supply, tier-one deposits are becoming more difficult to find and our existing orebodies are maturing. Now more than ever we have to deliver results as efficiently as possible to meet the demands of our stakeholders.One way to meet these challenges is through the smart use of new technology. The traditional picture of mining is very different to what you see at our sites today, largely as a result of advances in technology. Given these advances, we must now ask ourselves what do the next ten, 20, 50 years look like and how is technology going to shift the future of mining. From our perspective we are also asking how Rio Tinto can lead this transformation.We have seen, and expect to continue to see, unprecedented demand for commodities like iron ore, aluminium and copper, driven largely by the needs of emerging economies._x000D_
Demand for our products continues to be propelled by the emerging economies in Asia, Africa and South America. With iron ore alone, it is projected that the world will consume as much in the next 30 years as it has over the last 10 000 years.The question for everyone in the mining industry is: How are we going to meet that demand?Our existing orebodies are maturing, and we are finding fewer untouched tier-one deposits. In general, we are seeing a move from surface deposits to below water table and underground ones, adding costs, time and difficulty. The deposits we find in the future are likely to be of lower grades or have a more complex mineralisation.New deposits that are being found may be located in challenging geographies, often where we have not historically had a presence, such as Mozambique, Guinea and Mongolia. Importantly, our industry is facing heightened expectations from stakeholders and shareholders to deliver improved sustainability and environmental performance, lower carbon emissions and to more efficiently use resources.Finally, low productivity growth and rising cost structures in Australia have contributed to deteriorating international competitiveness over recent years. The multifactor productivity in the mining sector- measuring the output per combined input of labour and capital - has continued to decline. To meet these challenges we will have to find, manage and develop resources in ways we have never done before. Our industry-leading Mine of the FutureTM program is an example of how technology and innovation can provide some solutions.Technology is an increasingly important success factor in mining. Improvements in technology can change the way we look at mineral deposits. Orebodies that would once have been uneconomic may become economic, as a result of these new technologies.New underground techniques will enable faster and more efficient access, and innovative processing techniques may improve ore extraction.The Mine of the FutureTM program is not a single mine site or initiative. It is the approach we are taking across Rio Tinto to find advanced ways to extract minerals more efficiently, while reducing environmental impacts and most importantly, further improving safety.It's about working smarter. It's about staying ahead of our competition and leading the industry in technology._x000D_
*This is an abstract only. No full paper was provided for this abstract.* CITATION:McGagh, J, 2012. The importance of innovation to the mining industry, in Proceedings Eighth Open Pit Operators' Conference , pp 3-4 (The Australasian Institute of Mining and Metallurgy: Melbourne).