Top 10 risks to the mining industry – by Dominic Ellis (Mining Global – February 9, 2022)

EY report highlights 10 key risks to the mining industry – and chief among them ESG and decarbonisation

Disruption is fast reshaping the mining and metals sector’s perception of where the biggest challenges – and paths to growth – may lie, according to EY’s annual review of risks and opportunities in the global mining sector.

The climate crisis and rising stakeholder expectations are increasingly significant forces of change. Environment and social took the number one spot in our rankings for the first time, followed by decarbonisation and then license to operate (LTO), which had held the top position over the past three years.

Two new entrants to the ranking – uncertain demand and new business models – highlight the ongoing volatility in a market still impacted by the COVID-19 pandemic. Still, the report found more opportunities than risks for miners willing to make the transformational changes that can drive long-term value for organisations and the communities they serve. Here are the top 10 risks:

10: Productivity and costs

The COVID-19 pandemic means demand is up, but so are the costs of inputs, shipping, talent and decarbonization programs. Reducing costs and improving productivity is a balancing act for miners that must achieve short-term gains while creating long-term value.

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