MoneyWeek Features Value.Space for Mining Risk Management

“Invest in companies with the tools and technology to help the sector boost output and reduce its environmental footprint,” writes MoneyWeek, highlighting Value.Space.

January 31, 2024

Mining has always been important, but even more so now, with a surge in demand to supply the green transition. As these assets and supply chains are increasingly vital for the world, ensuring they run smoothly has become even more important. Part of that is mitigating developing risks as soon as possible.

MoneyWeek magazine explored how to capitalise on the upcoming mining boom, focusing on the role of new technologies. “Changes in technology, especially with respect to satellites, artificial intelligence (AI), and automation, are transforming the efficiency and sustainability of the industry, as well as creating investment opportunities that do not depend on the success of an individual mine or project,” wrote Dr Matthew Partridge for the magazine.

Value.Space is one of the companies MoneyWeek chose to feature, underlining the benefits that accurate and up-to-date satellite-based risk assessment and monitoring bring to the mining and insurance industry, especially regarding understanding where actual risks are in the operating infrastructure, such as tailings storage facilities.

MoneyWeek’s takeaways from their conversation with Value.Space’s Reijo Pold:

  • While mines are supposed to ensure that these tailings are properly stored so that they don’t leak out into the nearby area, many firms don’t do this properly. The consequences of this can be catastrophic, with the Brumadinho dam disaster in January 2019 costing 270 lives, as well as wiping $19bn off the share price of Vale SA, which ran the mine.

  • While insurers can insist on manual checks of major tailings, the process can take weeks, or even months, can prove costly, and may not be fully accurate.

  • Given that circa 13 catastrophic failings are expected in the next four years, the risk posed by tailing is the equivalent of subprime mortgages for the mining industry.

  • In this context, Value.Space gives its users the ability to effectively identify, monitor and quantify risks at scale and cost-effectively, expect satellite-based systems to become an everyday and standard tool.

Explore the MoneyWeek article by following this link.

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