Digitalization and changing value propositions for mining regions: Options for action

• Published in: Resources policy 2024-04, Vol.91, p.104861, Article 104861
• Main Authors: Storey, Keith, Halseth, Greg, Murphy, Laura, Markey, Sean
• Format: Article
• Language: English
• Subjects: Canada; Digitalization; Mining; Value propositions
• ISSN: 0301-4207
• DOI: 10.1016/j.resourpol.2024.104861

Digitalization has the power to fundamentally change many of the longstanding characteristics of mining, from the ways work is done, to where it is done and by whom. In particular, digitalization may decrease the direct value that mining can deliver to mining communities. Based primarily on Canadian experience, the paper frames a range of possible impacts and implications as digitalization changes the ‘value proposition’ of local resource extraction, and identifies a suite of possible actions that the main players in natural resource extraction regions may contemplate as they face digitalization. Addressing the impacts of digitalization and working to rethink the value proposition are in the interests of all parties affected, which argues for greater collaboration among the players if the full benefits of mining are to be realized. •Digitalization provides companies with new revenue and value-producing opportunities.•Digitalization may decrease the value of mining activity to mining communities.•A social licence to operate may consequently become more difficult to achieve.•Collaboration among communities, companies and governments offers the best hope for developing new value propositions.