SUPPLY CHAIN & OPERATIONS
The Mining Supply Chain and OPS
The future of sustainable , renewable alternatives hangs in the balance as mineral supply operations are knocked back by ongoing disruptions
WRITTEN BY : TANMAY PATANGE
Supply chains and procurement operations have always functioned based on the proportionate connection between supply and demand . Thus , supplying raw materials that are high in demand , all parties in the supply chain generate profit . However , the recent disruptions in the ore mining industry could have repercussions that decide the fate of Electric Vehicles , aircraft engines , and wind turbines .
The Electric Vehicle industry , in particular , is expected to face a challenging roadblock due to an insufficient supply of lithium and other minerals . At the same time , the United States and the European Union have been pushing towards replacing fossil fuel-based machines with electric ones . Neither of these parties wants to keep relying on China , which has been controlling a substantial portion of processing minerals like lithium , cobalt , and graphite .
Amidst these geopolitical issues and the ever-increasing demand , the ore industry has to ask itself : is supply more important than cost ?
Problems that Disrupt Mineral Supply Ops For years , organisations have focused on industries that provide substantial profits by delivering supply to the sources that demand the same . Nevertheless , supply chain operations have to follow a unique strategy to align with the instructions from the governments and the big step towards eco-friendly business practices . To be more specific , organisations receive so much pressure towards creating a European supply chain for minerals that spearhead the development of EVs and other modern machines .
Before the pandemic started wreaking havoc across the globe , the industry was getting prepared for the upcoming boom of demand . It was predicted , among other things , that the EV industry would require more than 50 % of the current global supply .
“ The ore industry has to ask itself : is supply more important than cost ?”
90 September 2021