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首页文档碳中和资料研究报告矿业和冶金行业风险展望（英文版）--安永

矿业和冶金行业风险展望（英文版）--安永VIP专享VIP免费

Top 10 business risks
and opportunities for
mining and metals
in 2024
Top 10 business risks and opportunities for mining and metals in 2024
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Executive summary
This year’s ranking highlights the complex operating environment
miners will face in 2024. Risks will be numerous but history proves
the resilience and the inventiveness of the sector to turn these into
opportunities. We expect to see more innovation, collaboration and
agility over the next 12 months as mining and metals companies
embrace the upside of change.
“
Paul Mitchell, EY Global Mining & Metals Leader
We see several key themes playing out:
Expectations of investors and stakeholders have been underestimated and continue to
increase
According to our survey respondents, scrutiny from all
stakeholder groups is increasing, particularly around ESG
issues. With these expectations anticipated to continue,
miners will need to balance ESG priorities with other
business goals, including productivity. A number of miners
are now focused on achieving net-positive impact, with
signicant benets for those that get it right, including
improved access to capital, a healthier talent pipeline and
stronger LTO.
Risks today are highly complex, interlinked and impact each other
Executives say that they have a better understanding of
sustainability issues — but they cannot tackle all areas at
once. With ESG becoming more complex and interlinked,
addressing them requires an approach that thinks beyond
meeting regulation and controlling costs. Leaders need
assurance that investments will add genuine value rather
than cause problems elsewhere or in the future. In-depth
scenario planning can help guide prioritization, identify
potential trade-offs and help miners create real, long-term
value.
The pace of change has accelerated
Capital has moved up in the ranking as the sector competes
for investment and incentives to accelerate exploration and
development of minerals and metals vital to the energy
transition. We’re seeing a shift from a short-term focus
on returns to a long-term view of value, encouraged by
recognition that longer-term investment horizons are
required to meet 2050 net-zero goals.
Inationary pressure has fast-tracked technology
development, as miners focus on digital tools that can
accelerate productivity. The pace of digital transformation is
highlighting the importance of cybersecurity, which is new to
the ranking this year. And supply constraints are a catalyst
for consideration of circular economy principles, with miners
more conscious of minimizing waste across the full value
chain and lifecycle of metals.
Building trust and articulating value can evolve the sector’s brand
When trust is an issue, transparency is key. Miners need
to get better at articulating the nancial and nonnancial
value they bring to communities and investors, beyond
merely meeting regulatory expectations. Creating and
communicating a bigger bolder vision of legacy beyond life
of mine can demonstrate a company’s societal commitment.
At rst glance, the 2024 ranking of the top business risks and opportunities in mining and metals
doesn’t dier too much from the last couple of years. Responses to these risks are now clearly
embedded into the strategies of the best operators — particularly environmental, social and governance
(ESG) and license to operate (LTO) — and will remain priorities for a number of years to come.
Top 10 business risks and opportunities for mining and metals in 2024 03
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Top10businessrisksandopportunitiesforminingandmetalsin2024ExecutivesummaryESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics627Cyber8Newbusinessmodels109710Workforce20242023Upfrom2023Downfrom2023Sameas2023Newfor2024“Thisyear’srankinghighlightsthecomplexoperatingenvironmentminerswillfacein2024.Riskswillbenumerousbuthistoryprovestheresilienceandtheinventivenessofthesectortoturntheseintoopportunities.Weexpecttoseemoreinnovation,collaborationandagilityoverthenext12monthsasminingandmetalscompaniesembracetheupsideofchange.PaulMitchell,EYGlobalMining&MetalsLeader02Top10businessrisksandopportunitiesforminingandmetalsin2024Atfirstglance,the2024rankingofthetopbusinessrisksandopportunitiesinminingandmetalsdoesn’tdiffertoomuchfromthelastcoupleofyears.Responsestotheserisksarenowclearlyembeddedintothestrategiesofthebestoperators—particularlyenvironmental,socialandgovernance(ESG)andlicensetooperate(LTO)—andwillremainprioritiesforanumberofyearstocome.Weseeseveralkeythemesplayingout:ExpectationsofinvestorsandstakeholdershavebeenunderestimatedandcontinuetoincreaseAccordingtooursurveyrespondents,scrutinyfromallarenowfocusedonachievingnet-positiveimpact,withstakeholdergroupsisincreasing,particularlyaroundESGsignificantbenefitsforthosethatgetitright,includingissues.Withtheseexpectationsanticipatedtocontinue,improvedaccesstocapital,ahealthiertalentpipelineandminerswillneedtobalanceESGprioritieswithotherstrongerLTO.businessgoals,includingproductivity.AnumberofminersThepaceofchangehasacceleratedInflationarypressurehasfast-trackedtechnologydevelopment,asminersfocusondigitaltoolsthatcanCapitalhasmovedupintherankingasthesectorcompetesaccelerateproductivity.Thepaceofdigitaltransformationisforinvestmentandincentivestoaccelerateexplorationandhighlightingtheimportanceofcybersecurity,whichisnewtodevelopmentofmineralsandmetalsvitaltotheenergytherankingthisyear.Andsupplyconstraintsareacatalysttransition.We’reseeingashiftfromashort-termfocusforconsiderationofcirculareconomyprinciples,withminersonreturnstoalong-termviewofvalue,encouragedbymoreconsciousofminimizingwasteacrossthefullvaluerecognitionthatlonger-terminvestmenthorizonsarechainandlifecycleofmetals.requiredtomeet2050net-zerogoals.Riskstodayarehighlycomplex,interlinkedandimpacteachotherExecutivessaythattheyhaveabetterunderstandingofassurancethatinvestmentswilladdgenuinevaluerathersustainabilityissues—buttheycannottackleallareasatthancauseproblemselsewhereorinthefuture.In-depthonce.WithESGbecomingmorecomplexandinterlinked,scenarioplanningcanhelpguideprioritization,identifyaddressingthemrequiresanapproachthatthinksbeyondpotentialtrade-offsandhelpminerscreatereal,long-termmeetingregulationandcontrollingcosts.Leadersneedvalue.Buildingtrustandarticulatingvaluecanevolvethesector’sbrandWhentrustisanissue,transparencyiskey.Minersneedmerelymeetingregulatoryexpectations.Creatingandtogetbetteratarticulatingthefinancialandnonfinancialcommunicatingabiggerboldervisionoflegacybeyondlifevaluetheybringtocommunitiesandinvestors,beyondofminecandemonstrateacompany’ssocietalcommitment.Top10businessrisksandopportunitiesforminingandmetalsin2024031Environmental,socialandgovernance(ESG)ESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Itisclearthatourindustryhasauniqueroletoplayinsupportinganature-positiveagenda.HayleyZipp,DirectorofEnvironment,ICMM104Top10businessrisksandopportunitiesforminingandmetalsin2024Forthethirdyearinarow,ESGisthebiggestriskforminers,aswellastheirbiggestopportunitytodrivedifferentiationandimprovementsthatwillcreatelong-termvalueforallstakeholders.WhicharetheESGfactorsfacingthemostscrutinyfrominvestorsin2024?Localcommunityimpact64%Tailingsandwastemanagement55%51%Waterstewardship46%Attainingnet-zeroemissionsDiversity,equityandinclusion31%27%Climaticevents26%Ethicalsupplychains26%Health,safetyandwellbeing25%25%Humanrights24%Greenproduction23%22%Biodiversity20%Circulareconomy16%15%Mineclosure9%IndigenoustrustandreconciliationFraudandcorruptionSocialinequityAnti-moneylaunderingRespondentscouldchoosemorethanoneoptionSource:EYmining&metalsBusinessrisksandopportunitiessurveydata2024.Minersareseekinginnovativesolutionstotailingsandwastemanagement“Everyoneisseekingalternativestotailingstoreceiveinvestorattention,comparedwithlessthan5%lastyear.InAugust2023,InternationalCounciltailingsdams,aimingforgreatersafetyonMiningandMetals(ICMM)membersreleasedtailingsandcontrol.disclosurestodemonstrateongoingcommitmentandprovidetransparencyontheGlobalIndustryStandardonSeniorminingexecutiveTailingsManagement(GITSM).2Thepast10yearshaveseenmoretailingsdamsbuiltthanButminersneedmoreinnovativesolutionstomonitorandinanypreviousdecade.Today,safestorageoftailingsismanagetailings,andalsotoextractvaluefromwaste.akeyfocusforstakeholderswhoaredemandingminersTheMiningMicrobiomeAnalyticsPlatformproject3isandomoretoeliminatethefailuresthatcandevastatelocalexampleofprogress.ThiscollaborationbetweenUBC,communitiesandtheenvironment,andcostbillionstoTeckResources,RioTintoandotherpartnersidentifiesfix.Withover200billiontonnesofexistingtailingsundermicrobesthatbindtominerals,toenablenonchemical-managementandanadditional40billionto50billionbasedextractionandremediationstrategies.Forexample,tonnesexpectedinthenextfiveyears,thisisacriticalrisktomicrobescanbindtoseleniumtopreventtoxiclevelsmanage.Fifty-fivepercentofsurveyrespondentsexpectedinminingwastefromleachingintowater.Remediatingslagcontainingresidualcoppercouldbemadeprofitablebyintroducingmicrobesthatbindwiththecopperandenableextraction.Top10businessrisksandopportunitiesforminingandmetalsin202405Investorsandgovernmentsscrutinizewaterstewardship“Wefaceachallengeaslegislationcomesmanygovernmentstoo.TheChileanNationalMiningPolicy2050mandatesthatcontinentalwatermakesintoreducewaterusagetoseewhetherupnomorethan10%oftotalwaterusedinallcopperminescanremainsustainable.Thisisaproduction.Otherdrought-affectedregionsarelikelytolargetransitionalrisk.adoptsimilarrestrictions.SeniorminingexecutiveIt’scriticalthathydrologyismanagedend-to-endgivenwaterimpactssoilcompositionand,therefore,theOverhalfofoursurveyrespondentssaidwaterstewardshipabilitytoregenerateland.Manyminingcompanieswasoneofthetopriskswithsignificantincreasedhavesettargetsaroundtheircommitmenttodrivescrutinyfrominvestors.It’sanissuetopofmindforgoodwaterstewardshipandimprovedisclosuretostakeholders.RioTintowasthefirstminingcompanytopublishwaterusagethroughaninteractivemaponitswebsite.4Diversity,equityandinclusion(DE&I)“WeareslowtothedanceofautomationIndustryassociationsarepushingforfasterprogressthroughtougherprotocols,includingCanada’sTowardsbut,fromatalentperspective,thisneedsSustainableMining:Equitable,Diverse,andInclusivetobedealtwithcarefully,asitcouldWorkplacesProtocol.7Someofourrespondentswipeoutinclusion.raisedconcernsabouttheuseofdemographicquotastoincreasegenderdiversity,worriedtheycouldlimittheSeniorminingexecutivecapabilitiesandvolumeofcandidatepoolsatatimewhenattractingtalentisdifficultenough.OtherssuggestedAllcompanieswespoketohaveDE&ItargetsandthatbuildingKPIsaroundemploymentoflocalpeopleintoimprovementinitiatives—butfewaremakingameaningfulagreementsandremovingsymbolsofexclusioncouldhelpdifference.Theparticipationofwomenremainslow,thoughboostdiversity.HowminerscanaccelerategenderdiversitysomeprogresshasbeenmadeattheC-suitelevel,wheretalksaboutthisinmoredetail.8femaleparticipationnowsitsatabout12%.5Alackofdiversitymayhinderminers’abilitytodriveinnovationandSomeminersraisedconcernsaboutthepotentialnegativeimprovefinancialperformance,bothofwhicharepositivelyimpactofautomationonDE&I,ifnotconsideredcarefully.impactedbyhavingmorewomenonboards.6Ifautomationreducestheneedforadministrators,truckdriversandoperatorsmorebroadly,thiscouldseriouslydiminishgenderandIndigenousinclusion.06Top10businessrisksandopportunitiesforminingandmetalsin2024Healthandwellbeinginitiativesmustexpandinscope“Wearealwaysadapting—psychologicalneedtobroadentheconceptofwellbeingtoconsiderothersignificantissues,includingdomesticviolence.Suiciderateswellbeingisnowpartofoursafetyshare.inminingalsocontinuetoincrease,andarethehighestacrossallsectors—54per10,000workers.9SeniorminingexecutiveBullyingandharassmentclaimsareontheriseinminingMaintainingmentalhealthandwellbeingisanincreasingworkplaces,andthecost(inmanyforms)toemployersischallengeinmining,particularlyforfly-infly-out(FIFO)increasinglynottolerated.However,someminersarestillworkers,withmorecompaniesnotingitsimpactonapproachingtheissuefromalegalperspective,ratherthanabsenteeism,especiallyamongFirstNationscommunities.aculturalone.Thisisamissedopportunity.CompaniesthatSomeminersarerespondingbyincludingpsychologicalcreateasafe,inclusiveworkplacewillgainacompetitivewellbeinginsafetyshares,offeringmorementalhealthadvantageinrecruitingandretainingstaff.supportwithinemployeeassistanceprograms,reviewingrostersandinvestingindowntimeactivitiesthataimtoMinersneedtoassesstheimpactoftheirsystems,reducementalhealthstruggles.Minersalsoacknowledgeaprocessesandworkenvironmentonworkers’psychologicalhealthandsafety.Itisimportanttointegratethemanagementofpsychologicalhealthandsafetyintoallaspectsoftheemployeeexperience.IncreasingscrutinyonhumanrightstherightsofworkersandIndigenouspeoples.Thismeansitismoreimportantthaneverfortheminingsectortoincorporate“Corporationshavearesponsibilitytohumanrightsintotheirbusinesspracticestomanageriskandcreateopportunities.However,progressinthisareahasbeenrespecthumanrights—theymustnotslow.TheResponsibleMiningIndex(RMI)2022reportshowsonlyensurecompliancewithnationallawsthatoverallperformancearoundhumanrightsinthesectorbutalsomanagerisksofhumanrightshasanaveragescoreofonly22%.11Thereporthighlightedharmswithaviewtoavoidingthem.aninconsistentapproachacrosshumanrightsissuesandthelackofattentiongiventothetopicbythemajorityofminersJohnRuggie,formerUNSpecialRepresentativeonassessed.BusinessandHumanRights,HarvardUniversity10FailuretoaddresshumanrightsissuescanleadtopublicTwenty-fivepercentofoursurveyrespondentssaidthatoppositionandlegalconsequences.Someminingcompanieshumanrightsisattractinginvestorscrutiny,upfromonly4%aretakingstepstointegratehumanrightsintotheirlastyear.Minersarenowmoreaccountablefortheiractions,operationsbydevelopingpolicies,addressinghumanrightsincludingensuringsafeworkingconditionsandprotectingintheirannualreports,providingtrainingandconsideringhumanrightsinassessments.However,challengesremaininembeddinghumanrightsprinciplesintoday-to-dayactivities.Top10businessrisksandopportunitiesforminingandmetalsin202407Progresstowardnet-positivebiodiversityisencouragingAquarterofrespondentssaidtheissueofbiodiversityishasrehabilitatedtheecosystemarounditsDamangMineattractinginvestorscrutiny,withthisattentiondrivinggoodTailingsStorageFacility,developinganagroforestrysystemprogresstowardpositivebiodiversity.Generativeecosystemsandself-sustainingwetlandfishingarea.Butfewcompaniesareacknowledgedastheultimategoal,withminerstakingaresettingrealtargetsinthisarea.12AsofNovember2022,arangeofactions,includingpartneringwithresearchers,only8.7%ofminershadtargetsinplacetoachieveapositivemakinggreateruseofdata,andactivelyconservingandimpactandjust7.8%hadatargettopreventnetloss.13protectingecosystems.Forexample,inGhana,GoldFieldsPercentageofcompaniesmakingnature-relatedcommitmentsbyindustryGasutilities10.3413.79Electricutilities3.1315.63Miningandmetals8.77.837.417.41Multiandwaterutilities4.414.41NetpositiveimpactNonetlossOilandgasupstreamandintegratedSteel1.564.69Source:S&Pglobal—biodiversityisstillablindspotformostcompaniesaroundtheworld.Mineclosureisanopportunitytocreatealegacyofvalue“Closuremustcreatefuturevalueforstrengtheningtheirfocusontheissue,aimingtorepurposesites,establishsecondarybusinessesandcreatelong-termourhostcommunities;wemustn’tvalueforcommunities.leaveghosttowns.PartnershipsandecosystemscanhelpminersensurelandSeniorminingexecutivereapsbenefitslongaftermineshaveclosed.Forexample,EYiscurrentlydevelopingaLeadershipinSustainableMineclosureisextremelycomplex,impactingawiderangeMineClosureProgramwithCurtinUniversity,RioTintoandofstakeholderswithdifferent,andincreasinglyhigh,theBradshawResearchInstituteforMineralsandMiningexpectations.ApoorclosurecreatesanegativelegacythatisattheUniversityofBritishColumbia.Itdemonstratesextremelydifficultandcostlytoremediate.Manyminersarewhatgoodmineclosurelookslikeandhowtoachieveit,andgivesparticipantstheskillsandknowledgeneededtoinformclosure-relateddecision-makingacrosstheentireminevaluechain.08Top10businessrisksandopportunitiesforminingandmetalsin2024Whatgetsmeasuredgetsdone—theESGdatadilemma“Environmentalandsocialissuesaretheintegratetheseconsiderationsthroughtheminelifecycle.Ultimately,somethinglikenaturalcapitalaccountingwillbemostchallengingtomeasure,monitorandneededtosupportcompaniesincomprehensiveassessmentsreport,astherearenodefinedorwidelyagainstglobalESGsustainabilitystandards.TheNaturalagreeduponframeworksformeasuringCapitalAccountingfortheMiningSector:BeenupSitePilottheimpact,andthesocietalexpectationCaseStudy,basedonacasestudyatBHP’sclosedandforthedesiredoracceptableimpact.rehabilitatedBeenupmineralsandsminesiteinsouthernWesternAustralia,isthefirstattemptattrialingnaturalSeniorminingexecutivecapitalaccountingwithintheminingindustry.14Formostcompanies,oneofthebiggestchallengesremainsThecorporategovernanceoversightofanynet-positivehowtomeasureandmonitorprogress.ManyESGissuesareprogramiscriticallyimportantandrequiresboard-levelnowcoveredbyregulationandframeworksbut,whiletheseoversightof“how”thenet-positivestoryistoldtoensureitcanhelpdriveaction,theyalsocreatewhatrespondentscalldoesn’thaveunintendedconsequences.an“alphabetsoup”ofregulations.Asoneminersaid,“ItisachallengetokeepaheadofmyriadchangesintheregulatoryAsthesectormovestomandatoryreporting,companiesareenvironmentandthemagnitudeofissuesthatneedtobefocusingonhowtodiscloseandreportinconjunctionwithmanaged,withanexpectationtoaddresstheseintheshortfinancials.Manymid-tierminerstoldusresourceconstraintsterm.”meantheywillhavetosimplifyprocesses.DeterminingabaselinebywhichtomeasurepositiveOneofthebiggestissuesforminersaroundESGremainsdataachievementsisaparticularissue.Thisiscriticaltoestablishintegrity.Asonerespondenttoldus,“Therearesignificantcredibility,ensureintegrityofthesemeasurementsandchallengesingettingtheplatforms,peopleandprocessesweneedtoharnessthedatarequiredtotrackandmeasureESGgoals.”Avoidingdisclosuremisstepsrequiresaclearviewofthehigh-qualitydataneededtoinformdecisions,withstronggovernanceandcontrolsinplacetoensureappropriatesign-offsandprocesses.Nextsteps:•Identifywhereyoucanachieveanet-positiveimpact—•Considerhowchangesintheconstructionandfromexplorationtoreclamation—takingcaretoensureoperationofminescanhelpimprovesafetyandthereisadefensiblebaseline.wellbeingforworkersandcommunities.•Determineyourstrategiestousetechnologyanddata•Strengthenyourfocusonclosuretocreatelong-termtoimproveESGmonitoringandmeasurementacrossvalueforcommunities.thevaluechain—particularlyareassubjecttogreaterinvestorscrutiny,includingwaterstewardshipand•Assessthehumanrightsimpactsofyourorganization,tailingsmanagement.consultbroadlyandintegrateconsiderationsintoenvironmental,socialandhealthimpactassessments.Top10businessrisksandopportunitiesforminingandmetalsin2024092CapitalESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Growthcapitaltosupporttheenergytransitionandbusinesstransformationisbackontheagenda.Seniorminingexecutive10Top10businessrisksandopportunitiesforminingandmetalsin2024Astheenergytransitionaccelerates,futureshortfallsinseveralkeycommodities(includingcopper,lithiumandnickel)arebecomingapparent.Investmentinminingandmetalsisincreasingtomeettheneedformoreexplorationanddevelopment,butthesectorwillneedaccesstosignificantlymorecapitalifwehaveanychanceofmeetingtheseshortfalls.Thisissueisattractingmoreattention,withcapitalmarketsrecognizingthekeyrolecriticalmineralswillplayintheenergytransition.Butcapitalraisedthroughdebtandequityinthefirstsevenmonthsof2023hasremainedsteady(US$196bcomparedwithUS$192binthesameperiodof2022),withthistrendexpectedtocontinueinto2024.Ironandsteel,gold,andcoalcompanieshaveattractedtheUS$2.76bthroughIPOsandfollow-onequityissues.Juniormostcapitalsince2022,butinvestmentisincreasinginlithiumminersraisedUS$560mthroughfollow-onequitynickelandlithium.In2023,largenickelminershaveraisedissues,mostlyinAustraliaandCanada.Capitalraisingbysector/commodity,Jan–Jul2023y-o-y%changeNickel//1,157%Diversifiedmining182%Lithium163%Gold55%Uranium36%-2%Ironandsteel-6%Molybdenum-17%Coal-23%Aluminium-28%Copper-49%Specialtyminingandmetals-83%Cobalt-94%Non-goldpreciousmetalsandmineralsSource:EYanalysisofrefinitivdata.Top10businessrisksandopportunitiesforminingandmetalsin202411SignificantcapitalbeinginvestedindevelopingnewprojectsThesurgeinearly-stagedevelopmentprojectsisexpectedcopper,gold,lithiumandnickelprojectdevelopmentovertodriveanunprecedentedincreaseinthedevelopmentthenextdecade.Three-quartersoftheseprojectsareatofnewoperations.AnalysisofS&PGlobalcapitalcostthepre-feasibilityorfeasibilitystage,withfinalinvestmentannouncementsofoverUS$1bfrom2020to2023revealsdecisionsyettobemade.theprospectofsignificantcapitalinvestmentingreenfieldInitialcapitalcostannouncementsforgreenfieldprojectsoverUS$1bfortopfivecommoditiesJanuary2020–August2023(US$b)43.5416.457.216.214.11CopperNickelLithiumGoldPlatinumSource:EYanalysisofS&PglobalcapitalIQprodata.AsmorelithiumandnickeljuniorminersprogressearlyUS$10.6bmergerofLiventandAllkemcreatedtheworld’sstageprojectsthroughtothefinalinvestmentdecision,largestintegratedlithiumproducer.consolidationshouldincrease.TherecentlyannouncedLithiumprojectsbycountry/regionanddevelopmentstageChinaEU27+UKAfricaNo.ofprojects/minesAustraliaNorthAmericaSouthAmericaEarlystage5985491118Prefeasibility/feasibility103619176Construction2511222Operating64381Expansion242Source:EYanalysisofS&PCapitalIQprodata.12Top10businessrisksandopportunitiesforminingandmetalsin2024Minerstakeactiontomeetfuturecopperdemand“Youcannolongerdevelopbrownfieldsifsofarin2023,we’veseenBHP’sacquisitionofOZMineralsandGlencore’sacquisitionoftheremaining56%ofthereisnogreenpowersupply.Argentina’sMARAcopperproject.Seniorminingexecutive•Expandingbrownfieldcopperprojects:ExpandingsupplythroughbrownfieldexpansionisfarquickerandlesscostlyThecoppermarketoutlookforecastscontinueddeficitsfromorriskythangreenfieldprojects.Butcompaniesshouldbethelate2020s.ThiswillpushcompaniestoconsiderseveralmindfuloftheneedforolderprojectstomeetnewerESGstrategies:requirements,whichmayincludeelectrification,greenenergyandlowwaterusage,towinfinancing.•Acquiringcopperassets:Somecompanieswillconsiderstakesinhigh-margin,long-lifecoppermines.Forexample,•Spin-offofenergytransitionmetals:Somecompaniesarespinningoffenergytransitionmetalsintoaseparateentitytoattractabroaderinvestorbase.Forexample,Valeisconsideringspinningoffitsbasemetalsbusiness.Cross-sectorinvestmentaimstosecuresupply“Strategyforcapitalfortraditionalbuildsinvestinginminingcompanies:GeneralMotorsinvestedUS$650mofequityintoLithiumAmericas,andTeslaiswillbeverydifferent—andwillincludeconstructingalithiumrefineryinTexasandhasofftakejointventuresforofftake,etc.agreementswithminingcompaniesandChineselithiumhydroxideproducers.15SeniorminingexecutiveTheimpactoftheUSInflationReductionAct(IRA)isWithloomingdeficitsofcriticalminerals,companiesacrossexpectedtoattractmoresuchdeals,withananticipatedsectorsareintegratingvaluechainsinabidtoshoreUS$63b+investmentintoUSbatteryfactories–toupsupply.Automotiveandbatterymanufacturersareproducealmost1TWhofcellsby2030(about15%ofexpectedglobalcapacity).16Abroadrangeofcommodities,includingbatteryminerals,haveattractedsomeinterestfromprivateequity,aswellaspensionfundsseekingESG-friendlyinvestments.ESGbondsaresupportingnet-positiveambitions“Ring-fencedgreenfinancecouldbeuseful.largeminers,includingAngloAmericanandHydro,areissuingsustainability-linkedbondstodemonstratetangibleSeniorminingexecutivetargets.17OthercompaniesarerefinancingcreditfacilitiestostrengthenESGambitions.GoldFields,forexample,Inthefirstsevenmonthsof2023,miningandmetalshasrefinanceditsUS$1.2b2019revolvingcreditfacility,companiesissuedUS$1bofgreenbonds,downfromlinkingittofurthergenderdiversity,waterstewardshipandnearlyUS$4binthesameperiodoftheprioryear.Somedecarbonizationtargets.18ThislinkageofESGbondstospecificprojects(e.g.,renewableenergy,biodiversityandinvestinginlocalcommunities),ratherthanlargeoveralltargets,isatrendweexpecttocontinue.Top10businessrisksandopportunitiesforminingandmetalsin202413Explorationbudgetsrise,particularlyintheUS,CanadaandAustraliaThefocusonmineralsandmetalsfortheenergytransitionnewdepositsincountriesconsideredlowrisk.Thesethreehasseenanincreaseinexploration,particularlyinnickelcountriesattractedmorethanhalfofallexplorationcapitalandlithium.TheUS,CanadaandAustraliacontinuetobeinvestedin2022.preferreddestinationsforexploration,ascompaniesseekExplorationbudgetsbydestination2018vs.2022(US$m)Canada1,4422,684Australia1,3292,317US8521,596Chile576713Mexico609633Peru610533Brazil286340Argentina38520182022Source:EYanalysisofS&Pglobalmarketintelligencedata.14Top10businessrisksandopportunitiesforminingandmetalsin2024Thechallengeofbalancingreturnswithresponsibilities“Newminesneedtobecarbon-neutralButcompaniesmustbalancegrowthandeconomicreturnswiththeneedtoinvestindecarbonization,sustainabilityfromtheoutset.andbroaderESGissues.LinkingESGtofinancialvalueandreportingitasavaluedrivercouldsignificantlydriveSeniorminingexecutiveprogress.Oneexecutivetoldus:“Forittomakesense,ithastobelinkedtofinancialvalue,butthisisn’teasy—it’saworkMiningcompaniesarekeepingafirmfocusonexistinginprogressforus.”MakingthefinancialbusinesscaseforESGindustrialmarkets.Thebiggestdealsofthesectorremainininvestmentremainsastruggle.copper,goldandsteel.Thedealvalueofcompletedcopperdealsinthefirsthalfof2023increasedtoUS$11.1basMajorminersarealsoreassessingbusinessmodelstobetterBHPacquiredOZMinerals.Consolidationinthegoldsectoraddresscapitalrisksandopportunities.Acrossthesector,continues,withPanAmericanSilveracquiringYamanaGoldcompaniescontinuedcapitaldisciplineisreapingrewardsforUS$4.6b,andhalfofallannualexplorationbudgetsareforbothshareholdersandbroaderstakeholders.Averageallocatedtofindingnewgolddeposits.InMay,Newmontshareholderreturnsbythetop30minershaveincreasedmadearevisedofferforNewcrestofUS$21b,includingbyCAGRof22%from2019to2022.However,asminersdebt.Thedealisexpectedtocompleteinthefourthquarteradaptmodelsandmakemoredifficultinvestmentdecisions,of2023,pendingshareholderandregulatoryapproval.19theywillneedtomakesuretheybringinvestorsalongonAndCleveland-Cliffshasexpressedinterestinacquiringthejourney.Withinterestratesunlikelytodeclinesoon,U.S.Steel.20companiesmayneedtoworkhardertobalancesustainablealternativeswitheconomicreturns.Nextsteps:•Determineappropriateinvestmentopportunitiesindecarbonization,tools,technologyandinnovation.•Conductscenarioplanningtobuildagilityandensurereadinessforpossiblealternativefutures.•Ensurebalancesheetagilitywhenconsideringoptimumlevelsofgearinganddividendpolicy.•Designtheoptimalportfoliotocatertofuturedemand.Buildingaportfoliofitforthefuturerequires•Reviewfundingandcapitalmodels,includingfundingminerstoconsideramixofstrategies:sources,theroleofgovernmentandinternalallocation,andhowtomakebestuseoftaxbreaksandincentives.•Buildingoutreservesandreplacingproduction•Investinginmineralsandmetalswithstrongdemand•Conductafullstakeholderriskanalysistodrivemoreinformedinvestmentdecisionsthatincorporateprospectsfinancial,technicalandESGconsiderations.•Consideringtheimpactofsupplychainregionalization•Reviewyourportfoliothroughabroaderlensofchangingtalentandsocietalexpectations.Preparetodivestorreshapeforadifferentenvironment.Top10businessrisksandopportunitiesforminingandmetalsin2024153Licensetooperate(LTO)ESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Therealityisthatindustryhasfailedtoearnthebroad-basedtrustofsociety.Changingthatis,firstandforemost,theindustry’sresponsibility,butitisineveryone’sinteresttoseethathappen,forneverbeforehastheworldneededsomuchfromanindustrythatistrustedsolittle.RohiteshDhawan,PresidentandCEO,ICMM2116Top10businessrisksandopportunitiesforminingandmetalsin2024Expectationsofcompaniesaregrowing,withpeopledemandingtheydomoreforthecommunitiesinwhichtheyoperate.Accordingtothe2023EdelmanTrustBarometer,50%ofpeoplethinkbusinessesaren’tdoingenougharoundsocietalissues,suchasclimatechange,economicinequityorenergyshortages.22MiningandmetalscompaniesfacehigherexpectationsthanBuildingtrustiscriticaltomanagingexpectationsandtomanyothersectors.MinerstypicallyoperateonlandthatattainingandretainingLTO.Inthepast,wehavefocusedislicensed,notowned,andnavigatearangeofformalandLTOonIndigenoustrustandreconciliation,butwebelieveitsinformalconditionsaroundhowmineralsareextracted.scopehasexpandedtoencompasstrustatasocietallevel.Sectorbrandneedstoevolve—buildingtrustandarticulatingvalueiskey“Investorstendtobequiteboxedin,soMuchoftheissuestemsfrompoorhistoricalperformance,includingthesector’simpactonland,air,waterandjustaskabouthumanrightsandverybiodiversity,aswellasaperceivedinabilitytopreparebasicDE&Iterms.Thereisnodiscussioncommunitiestothriveafteroperationsclose.Awarenessofaboutwhatsocialsustainabilityreallymining’svitalroleintheenergytransitionremainslimited,means.despitemanyminersworkingcloselywithcountriestodevelopcriticalmineralsstrategies.ICMMCEORohiteshSeniorminingexecutiveDhawandescribesthetwo“deficits”underminingthesector—adeficitofunderstandingandoftrust:“ManyTheminingandmetalssectorrankedlowestinthe2021insocietydonotunderstandwhatwedoandwhyitGlobeScanreportofattitudestowardallmajorsectorsinmatters,andthis,combinedwiththelegacyofaccidents31countries.23SomeUKuniversitieshavebannedmininganddisasters…meansthatsociety…doesnottrustourcompaniesfromrecruitingoncampus,andthenumberindustry.”ofgeologyandminingengineeringgraduatescontinuestoslide.24Companiesalsostillfacechallengesachievingnet-positivesocialimpact,particularlyindevelopingmarketswhereexpectationsaroundtheextentofamine’ssocialimpactcanbehigh.Managingtheseexpectationsrequirescarefulprogramplanningandongoingstakeholderengagement.Buildingtrustthroughgreatercommunityengagement“WeneedtoworkreallycloselywithlocalcriticalmineralsprojectscurrentlyunderdevelopmentareonornearIndigenouslands.25Buildingtrustwiththesecommunitiesformutualsuccess.communitiesiscriticaliftheprojectsaretoobtainapproval,letalonemeetrequiredtimescales—manyexecutivesSeniorminingexecutiveweinterviewedspokeofongoingdelaysinobtainingprojectapprovals.AccordingtoareportbytheUniversityofQueensland’sSustainableMineralsInstitute,morethanhalfofthe5,000+Trustcouldbeenhancedbydoingmoretomeetincreasedexpectationsaroundgreaterstakeholdercollaborationformutualbenefit.Thisrequirestransparency,listeningtoconcernsanddesires,andinvolvingstakeholdersinfindingsolutions.Top10businessrisksandopportunitiesforminingandmetalsin202417InAustralia,forexample,South32isworkingwiththelandandwater,whichcanalsobetiedtotheirphysical,IllawarraLocalAboriginalLandCouncilandUniversityofspiritual,culturalandeconomicwellbeing.TheirvaluableWollongongtoco-designanenvironmentalmanagementtraditionalknowledgeandexperienceinmanagingtheapproachbasedonAboriginalknowledgesystems.26Asenvironmentinasustainablemannermakesthemcriticaltheconceptof“nature-positivemining”gainsground,partnersinthedesignandimplementationofsolutionsforIndigenousknowledgehasacoreroletoplay.AsHayleyhaltingthelossofnature,andsupportingtheprotectionandZipp,DirectorofEnvironmentatICMM,27explains,regenerationofecosystems.”“IndigenouspeoplesoftenhaveprofoundconnectionstoCreatingalegacywithlong-termvaluecommunitiestothriveandimproveenergysecurity.Aswellasresponsiblemineclosure(discussedinthe“ESG”section),“Whatotheropportunitiescanweprogressiveminersfocusoncommunityhealthandchallengethemselvestodomoretocreateapositivelong-termimpactcreateforthecommunitythatreduceoncommunities.Addressingissuessuchasnoise,dust,dependencyonminingbutstillallowthevibrationandairqualityshouldbeminimumrequirements,communitytothrive?withminersalsoconsideringthelong-termhealthimpactsoncommunitiesandensuringservicesareavailabletosupportSeniorminingexecutivepeoplewithhealthissues.Insomeregions,consultationwithlocalgovernmentscanhelpmanagestakeholderexpectations.Minersneedtothinkaboutthelegacytheywanttoleavebehind—tocreatejobs,carefortheenvironment,enableRegulatorsandstandardsetters,includingICMM,OECDandTheCopperMark,havestrengthenedexpectationsaroundcommunityengagementanddevelopment.18Top10businessrisksandopportunitiesforminingandmetalsin2024Takealong-termviewofsustainabilityacrossdifferentdimensions“It’saboutvalue,notjustcosts.AndthisWhentrustisanissue,transparencyiskey.Andinmining,expectationsaroundtransparencycomenotonlyfromperspectiveisgainingspace.thecommunity,butfromtheotherstakeholdersaswell,especiallyinvestorsandregulators.NeverbeforehaveSeniorminingexecutiveminingseniorexecutivesbeensoscrutinizedandheldaccountableforincorporatingalldifferentaspectsoftheExecutivessaytheirunderstandingofsustainability-relatedESGagendaintotheirown.Todate,minersdemonstratedmattershasincreasedsignificantlyovertheyears—buttheirresponsibilitythroughavisionstatementandnowtheyrealizetheycannottackleallmattersatonce.adherencetovoluntarydisclosurestandards.Now,Thebigquestioniswhattoprioritizetocreaterealandnewstandards,suchasIFRSS1andS2,imposeanlastingimpact,achallengemadeharderbythedifficultyofunprecedentedlevelofresponsibilityontheexecutivemonitoringandmeasuringsocialimpact.agenda.28AndtheEuropeanSustainabilityReportingStandardsimpactglobalminingcompaniesiftheymeetcertaincriteria,andthesestandardsarebasedondoublemateriality(bothimpactandfinancial).Activelyengagingwithcommunitiestofirstunderstand,Asleadersconsidertheimplicationsofnewresponsibilitiesandthendeliver,thevaluetheyneedcanalsohelpprioritizeandexpectations,theyshouldconsiderthatasurveybyactions.Anecdotally,thereisacorrelationbetweenthelevelGlobeScanfoundthat“sustainablebusinessmodelsandofmaturityanddepthofengagementwithcommunitiesandevidenceofimpactandactionarethestrongestdriversofbenefitsrealized.Minerswithopen,closecommunicationrecognizedcorporateleadership.”29Responsible,trustworthywithcommunityleadersappeartohavemorehighlygovernanceismoreimportantthaneverifminersaretoengagedemployeesandfewerstrikes,perhapsbecauseretaintheirLTOandsucceedinthelongterm.communitiesseethevalueofminers’contributiontolocaleducation,infrastructureandhealthcare.Nextsteps:•Alignaroundawider,stakeholder-drivenagenda.Movingawayfromanarrowfocusonshareholdersallowsminerstoconsiderhowtocreatelonger-termvalueforcommunities,includingFirstNationspeople,andtheworkforce.•Focusonarticulatingyourpurposeandusethistobuildthebrand.Strengtheningbrandsthrougheffectivelymeasuring,articulatingandreportingonthevaluedeliveredtostakeholderscanhelpminerssecureLTOand,ultimately,gaincompetitiveadvantage.Considerthelegacyyouwanttoleavethatwillprovidethegreatestvaluetostakeholders.•Developastakeholderengagementplanthatarticulatesthevaluepropositionforeachstakeholdergroup,designsappropriateengagementprogramsandensureslong-termvalueisdeliveredinlinewithexpectations.Top10businessrisksandopportunitiesforminingandmetalsin2024194ClimatechangeESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Climatechangehascausedwidespreadadverseimpactsandrelatedlossesanddamagestonatureandpeoplethatareunequallydistributedacrosssystems,regionsandsectors.IPCCclimatechange2023synthesisreport3020Top10businessrisksandopportunitiesforminingandmetalsin2024Climatechangeandclimaticeventsarethetopglobalriskstheworldwillfaceoverthenextdecade,accordingtotheWorldEconomicForum’sGlobalRisksReport2023.31Climatechangeisincrediblycomplex,withbroadimpacts.Minersareexpectedtoprovidemineralsfortheenergytransition,whilealsoreducinggreenhousegas(GHG)emissions.Scientistsagreethatifglobalwarmingexceeds1.5°Celsius,thiswilltriggerseveraltippingpointsforourclimatesystemsthatmayleadtoabruptandirreversibleimpactsonecosystemsandsocieties.Withoutsignificantpolicychangeandinvestment,climatechangeimpactscouldthreatenavailabilityofwaterandfoodinclimate-vulnerablecommunities,manyofwhicharekeyminingregions.Globalrisksrankedbyseverityovertheshortandlongterm“Pleaseestimatethelikelyimpact(severity)ofthefollowingrisksovera‘two-yearand10-yearperiod’”Twoyears10years1Cost-of-livingcrisis1Failuretomitigateclimatechange2Naturaldisastersandextremeweatherevents2Failureofclimate-changeadaptation3Geoeconomicconfrontation3Naturaldisastersandextremeweatherevents4Failuretomitigateclimatechange4Biodiversitylossandecosystemcollapse5Erosionofsocialcohesionandsocietalpolarization5Large-scaleinvoluntarymigrationRiskcategoriesEnvironmentalGeopoliticalSocietalSource:WorldEconomicForum.Climaticeventsontherise“TheseeventsaregettingcloserandmoreOneaffectedminertoldustheyareconsideringbetterpreparationsforfutureevents:“Weareasking:‘Dowefrequent.It’sabouthowweprepareforallocatetwo-daystoppagesperannumtocaterforclimatetheseevents.change?’Itmightnotbeabadideagoingforward.”SeniorminingexecutiveTheimpactofclimaticeventsonproductivityandhealthandsafetymeansminersmustbegintoplanandpreparenow.ClimaticeventscontinuetobeapriorityforminingcompaniesTheWorldGoldCouncilhasidentifiedarangeofadaptationastheyincreaseinnumberandhaveagreaterimpactonstrategiesinitsGoldandclimatechange:Adaptationday-to-dayoperations.RecentbushfiresinCanadaforcedandresiliencereport,33withitsClimateChangeLeadmanyminerstosuspendoperationsandevacuatestaff.32JohnMulliganexplaining:“Withoutconsistent,systematicandwidespreadplanning,theincreasedcomplexity,frequencyandseverityofclimateimpactswillhaveanegativeimpactonthesupplychain.”Top10businessrisksandopportunitiesforminingandmetalsin202421Differentoptionsexploredonthejourneytonetzero“We’recommittedtoclimatechange,butThepathtoScope1and2abatementyouneedtoberealisticaboutwhatitRenewabletakes.Icontinuetosticktothetargetsenergysetbut,inhindsight,IprobablyregretthatIsetatargetfor2025and2030.Scope1andDiesel2emissionstransitionJakobStausholm,ChiefExecutiveOfficer,RioTinto34EfficientequipmentCarboncaptureandstorageMethanecaptureandstorageCFOsareunderpressureastheyallocatefundstoOffsets/creditsdecarbonizationprojectsthatarecostly,withlongtimeframesandreturnsthatarehardtoquantify.AsoneminingexecutiveFortescueMetalsGroupannounceditwouldinvestUS$6.2bsaid,“We’verealizedhowexpensiveitiswithanumberincapitalby2030toeliminatefossilfuelriskandreduceoftrade-offs—wecangotheeasyrouteandmakesupplyoperatingcosts.36Theinvestmentincludesrenewableenergychainchanges,orwecanredesignouroperatingmodel.”generationandbatterystorage,aswellasagreenminingManyminingcompaniesadmittheyarestrugglingtomeetfleetandlocomotives.interimnet-zerotargets(Scope1and2)andarerevisitingstrategies,thoughnonetoldustheywereextendingtargets.CarboncaptureandstorageisdifficultandrepresentsasignificantproportionofGHGemissions.ForundergroundGovernmentsupportinmanyregionsisdrivinggrowthinmines,particularlycoalmines,fugitivemethaneisanrenewableenergycontractsandinvestmentinsolarorwindadditionalissuetodealwiththatwillrequireinnovation.generation.Forexample,in2022,AngloAmericansourced52%ofitselectricityfromrenewablesources,reducingWhileICMMmembershavecollectivelypledgedtoachievenetScope1and2emissionsby7%and11%year-on-yeartozeroacrossScope1and2,fewhavesetnet-zerotargetsfor8.3MtCO2eand5.0MtCO2e,respectively.35ThefallingcostoftheirScope3emissions.ICMMiscurrentlycollaboratingwithrenewableshasseenanuptickininvestment;however,findingtheScienceBasedTargetsinitiative(SBTi)todevelopaScopetheamountoflandneededandnegotiatinglanddealswith3emissionsaccountingframeworkforthesector,toenableitstraditionalownerswilltaketime.Manyminersaresourcingmemberstosetdetailed,transparenttargets.CompaniesalsogreenelectricitytodecarbonizeScope2butfindithardtogetcontinuetoexploretheiroptionstoimproveperformanceongreenenergyatscale.Scope3throughsustainablesupplychains,circulareconomyincentivesandpartnershipopportunities.Vehicleelectrificationremainsexpensive,andminershavebeenconsideringotherdieseltransitionoptions,includingbatterytechnologies,hydrogenandbiofuels.Forexample,CoalassetdivestmentcontinuesManydiversifiedminershaveeitherdivestedtheircoalThewarinRussia-Ukraineslowedprogressonphasingoutassetsorsetadateforphasedclosure(e.g.,BHP’sMtArthurfossilfuels.Thatsaid,StandardCharteredhasrecentlycoalmine).Thosethathaven’tarebeginningtofaceinvestorpledgedtostopprovidingfinancialservicestominingandbacklash.ThirtypercentofGlencore’sshareholders,37powergenerationcompaniesderiving100%oftheirrevenuechallengedthecompany’sclimatestrategyduetoitscoalfromthermalcoal,andHSBChasdeclaredexclusionofcoalassets.38InJanuary,TeckResourcesannouncedaspin-offassetsby2030intheEUandOECD,andgloballyby2040.ofitssteelmakingcoalbusinesstocreatetwoindependentcompanies,TeckMetalsandElkValleyResources.39InJune,GlencoreofferedtobuythemetallurgicalcoalbusinessofTeckResources.4022Top10businessrisksandopportunitiesforminingandmetalsin2024MinersgrapplewithincreasingdemandsfordisclosureConcernsaboutpotentialgreenwashingandemissionsreportemissionsfromdirectoperations,energypurchasesunderreportinghaveledtomandatoryproposedemissionsandvaluechains(Scope3emissions).disclosuresinmanycountries.InMarch2022,theUSSecuritiesandExchangeCommission(SEC)announcedplansWhiletheminingsectorrateswellforthehighquantitytostandardizeclimate-relatedESGdisclosuresforinvestors.ofTCFDrecommendationsaddressed,accordingtotheTheSECproposalmandatespubliclylistedcompaniestoEYGlobalClimateRiskBarometer2022,42thequalityofdiscloseScope1,Scope2andScope3emissions.Finaldisclosurereportingratespoorly.Still,weseeyear-on-yearruleswilllikelybeadoptedinsomeformunderthecurrentincreasesindisclosurecoverageandimprovedquality,administration.41probablybecauseclimaterisksandopportunitiesareincreasinglyintegratedintoorganizationalstrategy,ratherInFebruary2023,theInternationalSustainabilityStandardsthantreatedasaseparateinitiative.Board(ISSB)alsoagreedtorulesrequiringcompaniestoMiners’coverageofemissionsreportingisimproving,butqualityisstilllackingQualityCoverage38%42%68%85%2021202220212022Source:EYglobalclimateriskbarometer2022.Top10businessrisksandopportunitiesforminingandmetalsin202423OffsettingthecostofcarbonToavoidaccusationsofgreenwashing,minersshouldensuretheysourcehigh-qualitycarboncreditsandprovide“Thereisaclearneedtoconsidercarbontransparencyaroundactivitiestoactivelyreducedirectemissions.Land-basedcarboncreditsvianaturearebeingoffsetsinconjunctionwithotherESGconsideredasapriority,astheyalsocanprovideapositivefactors.Ifwearebuyingland,itneedstobiodiversitybenefit.Forexample,RioTintoisexploringtickotherboxesaswell.therolethatnature-basedsolutionsandoffsetscanplayinthedecarbonizationjourney.ThescaleofthefirstroundofSeniorminingexecutiveprojectsissignificant,withthepotentialtogenerateuptoonemilliontonnesofoffsetsperyearby2030.43Partneringforinnovation“AllnationsmustprogressivelypursueAngloAmerican’sPathwaystoSteelDecarbonization45challengesstartupsandsmallandmedium-sizedenterprisesaneconomy-widetransitiontonet-zero(SMEs)tocreatetechnologiesthatreducecarbonemissionsemissions…Activelypositioningpoliciesinsteelmanufacturing.ThecompanyispartneringwiththatencourageindustrytoproducethetheEuropeanInstituteofInnovation&Technology,anEUcriticalmineralsneededforrenewableinstitutionthatseekstocreateplatformswhereadvancedenergy,batteries,andelectricvehiclesresearchandbusinesscancollaboratetosupportinnovation.andappliances.ICMM’sInnovationforCleaner,SaferVehiclesinitiative46MikeHenry,ChiefExecutiveOfficer,BHP44seesitworkingalongsideOEMstopromoteoperationalandtechnologicalinnovationthatwillenableminingoperationstoManyminersarefocusedonR&DtosolvetheiradoptGHG-freesurfaceminingvehiclesby2040.Pilotswilldecarbonizationchallenges.Thebadnewsisthatsometimesrolloutoverthenextfewyears.47therighttechnologydoesn’tyetexist.Thegoodnewsisthatthisisdrivingminerstoformecosystemsandpartnerships,NickelCreekPlatinum,alongwithCarbMinLab,Universityincludingwithstartups,todevelopinnovation.ofBritishColumbia,hasdemonstratedsubstantialcarbonabsorptionfromtheWellgreentailings.48PresidentandCEOStuartHarshawsaid,“Havingalow-carbonnickelproductwillbebeneficialtothedownstreamprocessersofournickel,especiallytheEVmarket,wherereducingthecarbonfootprintisacriticalpartofthegreeneconomy.”Nextsteps:•Determinehowhigh-valueoffsetsandotherfinancialinstrumentscanbeusedtohelpachieveBuildingaflexibletransitionstrategywithpracticalnetzerowhileavoidingaccusationsofgreenwashing.pathwaysrequiresminerstoconsiderarangeofactions:•Considerprojectedfutureclimaticeventswhendesigning,planningandprovisioningmines.•Scenarioplandifferentpathwaystonetzerotocreateaflexible,agiledecarbonizationstrategy.Determinewhichtools,technologyandinnovationtoinvestin,andwhomtocollaboratewithtogetthere.24Top10businessrisksandopportunitiesforminingandmetalsin2024Top10businessrisksandopportunitiesforminingandmetalsin2024255DigitalandinnovationESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Transformationishappeningaroundus,andwearetryingtocatchupwithit.Seniorminingexecutive26Top10businessrisksandopportunitiesforminingandmetalsin2024Economicpressuresareforcingminingcompaniestoelevatethewaytheyinnovatewithdataandtechnology.Leadersanticipateasurgeininvestmentindataandtechnologyfortheyearahead,drivenbydemandacrossthebusinessfordigitalsolutionstoreducecostsandimproveproductivityandESGoutcomes.Thecomplexityofdigitalinvestmentsrequiresminerstoproceedwithcaution.Whatareyourdigitalprioritiesoverthenextone-twoyears?2024Processintelligence(datamining)56%andautomation(RPA)44%41%BusinessandoperationsintelligenceESGplatformtotrackmetrics36%andreporting27%27%Decisionintelligence(AI,machinelearning,AIforESG)17%Remote/integratedoperatingcenters16%16%Digitalassetmanagement12%ProcessminingforESG12%Digitaltwins11%HSEdigitalplatformCloudadoption11%Digitaltrust(blockchain)GreenhousegasinventorytoolNewproductandplatformdevelopment(customerportals,agilefactories)Respondentscouldchoosemorethanoneoption.Source:EYminingandmetalsbusinessrisksandopportunitiessurveydata2024.Top10businessrisksandopportunitiesforminingandmetalsin202427MinersexcitedbypotentialofGenAIbyinefficiencies.Generalapproachesforthesekindsofusecasesarebeingproveninothersectorsandcan“AIhasthepotentialtotransformbetailoredformining-specificconcernsthataresimilarinnature.theindustryatamultitudeoflevels.However,thereisalargehesitationtoHowever,manyapplicationscurrentlyfalloutsidethemoveforward,aspeopleareconcernedpurviewofthemuch-hypedlanguagemodels,suchabouthoweffectiveitmightbeandtheasgeostatisticalapplications,aswellassupplychainimpactsshoulditgowrong.simulationandoptimizationusecases.WhilethenonlanguagebranchesofGenAI,suchasdiffusionJoeCarr,InnovationDirectorforMining,Axora49models,arebeingconsideredbyresearchgroupsfortheirapplicationingeosciences,theyarenotyetGenerativeAI(GenAI)isthemostexcitingnewtechnologywidelyaccessible.forourrespondentsthisyear,withleadersintriguedbyitspotential.Artificialintelligence(AI)couldenhancehowRecentdevelopmentsinAIpresentpromisingminersmanagelargedatasets,butitwillalsoexposeopportunitiesforthesectorbutbringwiththemadditionalunderlyingdataqualityissuesandhighlightstheimportancecomplexityandoperationalmanagementrequirements.ofgettingthefundamentalsofdatamanagementright.IdentifyingandexecutingontheseopportunitiesrequiresthesupportofarobustAIstrategythatunderpinstheMinerswillneedtocarefullyconsidernewAItechnologiesessentialcomponentsofatechnologytrialandalignsandhowtheyapplytospecificusecases.Language-specificdecision-makerswithcompanyobjectives.GenAIcanhelpstreamlineadministrativetasksburdenedModernAIplatformsmakeiteasytobuildademo,butthechallengeisoperationalizingandestablishingthebusinessvalueoftheseefforts.AreaswhereGenAlcanupliftcapabilityinminingandmetalsContractormanagementAssetmanagement•ContractdataextractionforSuppliermanagement•Automatethegenerationofcontext-awaresafety•AccelerateRFPdraftingandreviewandriskmanagementstrategiestailoredtospecific•Context-awaresearchforlegalcanupliftcapabilityinfacilityconditionsminingandmetals•Assistmaintenanceactivitieswithsummaryand•Multilanguagesupportandtransparencysearchofin-housetechnicaldocumentation•Helpingtostandardizesupplycontractlifecycleby•AcceleratecapexprojectplanningWithhuman-identifyingpolicyexceptionsmachinechain-of-thoughtcollaborationESGEnergymanagement•Performinitialmediascantoassesssupplierlabor•Streamlinegreenfieldprojectsbydraftingpracticesubmissionsandplanningscenarios•Assistanceon“greenwashing”screening•Generateriskprofilesforextremeweatherevents•Assistidentificationofstakeholderconcernsandandnaturaldisasters(resilience)sentimentanalysisfrompublicconsultationdataSafetyCompliance•Consolidateanonymousworkplacesafetyincident•Assistedpolicydraftingandreviewtoensurereportingandsuggestionscomplianceacrossregionsandlanguages•Assistwithcreationanddeliveryofsite-specific•Automatedcompliancemonitoringacrosssensitivetrainingmaterialsbusinessprocesses•Identifybreachesofprocedurefromdebrieftranscripts•Monitoringregulatoryandguidelineupdatestoandotherlogshighlightexistingpracticesthatneedreview28Top10businessrisksandopportunitiesforminingandmetalsin2024DigitaltwinsstillunderusedDigitaltwintechnologyisstillunderutilizeddespiteitsprovenabilitytoaddhugevalue,mostlikelyduetolack“Digitaltwinisthesolutioneveryoneofawarenessofthecapabilityandtheupfrontcostofonsitesensorimplementation.Throughremotesensingwantsbutdoesn’tunderstand.capabilities,digitaltwinsenableminerstocollectmorereal-timedataandgainaricherunderstandingofallsitesunderSeniorminingexecutivemanagement.Minershaveanopportunitytocapitalizeonthisreadilyavailabletechnology.RioTinto’sdigitaltwinatProvidinganupsidetoESGinitiativestheGudai-Darrimineiscreatingvirtualminemodelsthatenablethecompanytotestin-the-fielddecisionsaheadof“Bringingdigitaltechnologiestoscaleexecution,improvingbothproductivityandsafety,aswellasoptimizingreturnoninvestmentbyidentifyingapproachescouldreduceemissionsbyupto20%tomaximizeproduction.50by2050inthethreehighestcarbon-emittingsectors:energy,materialsstoreandanalyzelargeamountsofdatafromindividualandmobility.operationalsystems,enterprisesystemsandthird-partysources,enablingminerstoaddvaluebeyondcompliance.ItWorldEconomicForum51allowsthemtoachieveandexecutesustainabilityroadmaps,providegreatervisibilityacrossassetperformanceandDigitalsolutionscanhelpminersaddressincreasingoperations,anddemonstrateactivities’exposuretopressuretoimprovetheavailabilityandreliabilityofESGpotentialadverseenvironmentalandsocialimpacts.Thedata.Digitalinnovationcantransformhowminersgather,EY-Parthenon2022DigitalInvestmentIndexfoundthat26%ofseniorexecutivesreportedapositiveimpactfromdigitalinvestmentsinaddressingESGchallenges,and23%saidsustainabilitywasthetopoperationalgoalforthecompany’sdigitalinvestmentoverthenexttwoyears.52Companiesaremakinggreateruseofdataanalyticstoacceleratetheirnet-zerojourney,trackingtheircarbonfootprintandusingsmartsensorsandblockchaintobettertrack,monitorandmanageScope3emissions.Top10businessrisksandopportunitiesforminingandmetalsin202429Howdoyoumanagedatatoextractmaximumvalue?“It’snotjustaboutcollectingdata,Ifminersaretounlockmorevaluefromdata,theymustfirstidentifywhatdataisimportant,whenitisneededandhowbuthowtomanagedatatoextracttoextractitfrombusinessprocesses.Thisrequiresadeepermaximumvalue.understandingoftheintersectionbetweenorganizationaldataandbusinessprocesslandscapes,andthedifferenceSeniorminingexecutivebetweendatathatisgenuinelyvaluableversustransactionalinformation.Anddatamustbetrusted:keydecision-makersMinersareusuallydatarichbutstruggletocaptureinsightsmusthaveconfidenceinthesourceofdataanditsaccuracy,fromthisdata,despitehugeinvestmentsintechnology.completenessandreliability.Criticalbusinessdataislockedinsilosanddifficulttoaccess,andITisdisconnectedfrombusinessteams.OrganizationsthataremorematureintheirdigitaljourneyTechnologyprojectsmovetooslowly,withproject-drivenhavestrongdatagovernanceacrosspeople,process,datatechnologiesalmostobsoletebythetimetheygolive.andtechnology,andhaveinvestedinunderstandingdatalineage.Thisiscriticaltocreatingafeedbacksymbiosisbetweendecision-makersandthosepreparingthedata.Italsoenablestheembeddingofaconsumer-drivenapproachintotheirdata-driveninnovationculture.Findingtherightmodeltodeliverdigitaltransformation“WouldminingcompaniesbemoreMuchofthechallengeliesindevelopingtherightmodeltodelivertransformation.Withinmanyminingcompanies,ITsuccessfulindigitaltransformationifissiloed.Ourconversationswithminingexecutivesrevealedyoupushdataouttotheoperations?differingviewsonthefunction’srightfulplaceandrole.ShouldITbeinthebusinessorcentralized?CoulditprovideSeniorminingexecutivedataasaservicetooperations,givingengineersaccesstovaluableinsightsfromoperationaldata?Despitethegrowingfocusondigital,manyminersstilllackanintegratedapproachtoitsimplementation.ThisFindingtherighttalentremainsaproblemformid-tierlimitsthevaluetechnologycanbringtothebusiness,andminerswhoareturningtoserviceproviderstohelpdeliverwastesmoneyandtime.AsoneCIOremarked,“Therealdigitaltransformation.Andacrossthesector,minerschallengeisn’ttheabsenceoftechnologybutchangingthearequestioningwhethertheyneedaspecializeddigitalorganizationalculturetobemoreintegratedandfocusedonteamortransversalskillsinengineers.Weareseeinglong-termgoalsratherthanshort-termresults.”bothapproaches.Biggercompaniestendtohaveadigitalteamanddigitalleaders,whilemid-tierstendtotakethetransversalskillsapproach—teachingpeoplewhattheyneedtoknowtogettheworkdone.Tech-agnosticsolutionsenablefutureagility“It’ssoeasytojumptothebrightshinyMinerscontinuetoinvestintechnologystacks,butarchitectureisevolvingatpace.Solutionsthatcanbeconnectedandaddedtoy,andintheabsenceofastrategy,itto,irrespectiveoftheirfoundationarchitecture,giveminersjustbecomesadistraction.theabilitytoadaptforthefuture.Generic,“one-stopshop”solutionsthatpromisetheearthbuthavenoclearscopeorSeniorminingexecutivevalueprofilewastetimeandmoney,andnegativelyimpactthebusiness’sbeliefindataasaninnovator.Wehavebeguntoseeafewplayerstargettech-basedinvestmentsandanticipatethistrendtocontinue.30Top10businessrisksandopportunitiesforminingandmetalsin2024Greatercollaborationandpartnershipscouldspeeduptransformation“WhatistheecosystemweactuallyneedRatherthanadoptingnewoff-the-shelfsolutions,miningcompaniesneedtoincreasecollaborationwithpartners,totohelpusacceleratethebuildingofinfluencewhatandhowproductsaredesigned.AsoneCIOcapability?remarked,“Nooneunderstandsourbusinessbetterthanus,sohowcanweusethatknowledgetopartnertodevelopSeniorminingexecutivethetechnologytogether?”Changemanagementiscriticalforeffectivetechnologyadoption“AsCIOs,weneedtofallinlovewiththewiththeimpactonemployeesandotherstakeholders,aswellasprocesses,wellunderstoodandcommunicated.problem,notthesolution.WeneedtoAsoneminingexecutiveexplained,“Whenwetalkputourselvesintheoperator’sshoes,aboutthedigitaltransformationjourney,it’snotjustabouttotrulyunderstandtheirrealsituation,digital…Weneedtotransformindividualssotheycanuseandbeabletotransformvariousaspectsthetechnology,whichshouldalwaysbeameansandneveroftheirroutine.anend.That’sourchallenge:Howdowemarrytheseconcepts?Howdoweprepareouremployees?”SeniorminingexecutiveMinersneedtoassembletherightteamswithsubject-matterTechnologyadoption,anditssuccess,differsbetweenexpertsacrossstrategicchange,datascienceandminingminers,withourresearchrevealingthatorganizationsthatdisciplineswhocanasktherightquestionsandmakethechampionnewtechnologyatanoperationalleveldobest.rightchanges.SuccessfulorganizationsdeliverresultsandPeoplemustbeatthecenterofanydigitaltransformation,insightsfastandhaveaclearplanforindustrialization.Theyalsouseanalyticssprintstoiteratethroughbusinessquestions,startingsimplyandbecomingmorecomplex.Thisallowsnewinnovationstobeembeddedatscaleintodailybusinessoperations.Nextsteps:•Collaborateandpartner.Companiesthathaven’talreadyshouldactnowtoformcollaborationsand•Puttherightstructureandprocessesinplaceallianceswithtechnologyanddatamanagementtoenabletruebusinesstransformation.Investingcompaniestodevelopandimplementnewdigitalinchangemanagementtosupporttechnologysolutions.adoptioniskey.•Takeastrategicapproachtoinnovation.Thesupplyof•Extractmoreinsightsfromdata.Betterdecisionsinnovativeideasisnottheconstrainingfactorforminingstartwithdata.Minersthatmakesmarterusecompanies.Rather,thechallengeistoensuretheseofdataandtechnologytoimprovescenarioinnovationsarefocusedondeliveringthecompany’splanningcanbuildtheagilityneededtorespondtostrategyanddrivingacompetitiveadvantage.ongoingvolatility.Top10businessrisksandopportunitiesforminingandmetalsin2024316CostsandproductivityESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Inflationhasimpactedcostsacrosstheboard—it’sstrongerandhigherthanweallanticipated.Seniorminingexecutive32Top10businessrisksandopportunitiesforminingandmetalsin2024140Index100=2019120Inflationarypressuresarenoweasingsharplyaroundth1e0w0orld,andpolicyratesinthemajoradvancedeconomiesareprobablyat,orverycl8o0seto,theirpeak.Inothercountries,suchasChile,ratecutshavebegun.53OxfordE6c0onomicsthinkspolicyratecutsnextyearwillbegradual.54402019202020212022Inflationisdown,buthighercostsareimpactingmarginCospperCobaltGoldSilverNickelZincDespiteinflationeasing,miningcompaniesnotedthattheLaborcosts—Index100=2019positiveimpactonrealizedcostswilltaketimetofeed140through.EnergyandlaborcostsrosehigherthanofficialinflationIndex100=2019120numbersandareremaininghigher.Increasedenergycosts,100asafalloutofthewarinUkraine,arepersisting.Laborcosts80202020212022havealsorisenduetoatighttalentpipelineandagrowing60shortageofskilledstaffinmanyminingregions,including40Australia.Asthetalentshortageincreases,weexpecttoseemorewageinflation.2019InAustralia,miningcompaniesarealsoraisingconcernsCopperCobaltGoldabouttheimpactoftheproposedindustrialrelationsSilverNickelZincreformsoncosts;forexample,thereformswillrequireemployerstopaylaborhireworkersthesamerateasdirectemployeesperformingthesamejob.55Otherrisingcostsinclude:Energycosts—Index100=2019•Royalties:Amidhighercommodityprices,someIndex100=2019140jurisdictionshaveincreasedroyaltyratestoensure120sufficientreturns.Forexample,Chileintroducedanew100202020212022MiningRoyaltyLawinAugust2023thatsubjectsmining80operatorstoanadvaloremcomponentandamining60marginaccordingtotheirlevelofsalesandthetypeof40mineralsexploited.Comingintoeffecton1January2024,thelawhasthepotentialtoincreasethetotalcashcostsof2019copperandlithiumproducers.CopperCobaltGold•Decarbonization:Decarbonizingoperationsiscostly.SilverNickelZincForexample,Fortescue’sdecarbonizationplanwillrequireUS$6.2bofcapitalinvestment.56Sour1ce4:0EYanalysisofS&PglobalcapitalIQprodata.Index100=20191201008060402020202120222019Top10businessrisksandopportunitiesforminingandmetalsin202433CopperCobaltGoldDespitetheseincreasedcosts,highercommoditypriceshavesupportedmargins,buttheseareonthedecline,accordingtoanalysisofEBITDAmarginsofmajorminingcompanies.Marginsarenowcloserto2019figures,evenascommoditypricesstayhigh.Commoditypricesremainhigherthanin2019%change1H2023vs.1H2019Lithiumcarbonate336%Newcastle137%thermalcoalNickel97%Silver54%USHRCdomestic48%Gold48%Copper41%Metcoal(Aus)32%Ironore30%Aluminium28%Platinum21%ChinaHRCexport21%Lead9%Cobalt7%Palladium7%Zinc4%Source:EYanalysisofS&PcapitalIQproandrefinitiveikondata.CapitalprojectsfaceoverrunsAreviewof132developmentprojectsrequiringoverUS$1bofcapitalinvestmentshowedthatnearlyoneinfivefacedCapitalproductivityhaslongbeenaconcernfortheminingcostoverruns,withanaverageblowoutofUS$500m.57andmetalssector,withrecentvolatilityanduncertaintyexacerbatingtheproblem.Aswellasincreasedinputcosts,higherinterestratesarepushingupthecostofcapital.34Top10businessrisksandopportunitiesforminingandmetalsin2024Managingtheever-increasingcostofcarbonAsof2022,46nationalorregionaland36subnationalpricingiscausingmajordiscrepanciesinimpact.Astudyjurisdictionshavesetapriceoncarbon.PerhapsmostnotablebytheMiningAssociationofBritishColumbiaindicatesoftheseistheEU’sCarbonBorderAdjustmentMechanismthat,duetovariancesincarbonpricingstructure,aminein(CBAM),whichtargetscarbon-intensivesectors,includingBritishColumbiawillincurthehighestfunctionalcarbontaxmining,toaddresscarbonleakageandreduceemissions.ofanymajorminingjurisdictionintheworld.58Minersbelongingtolow-middleincomecountriesmayfaceThepriceofAustraliancarboncreditunitscoulddoublegreaterexposuretoCBAM-liketaxes.Forexample,currentbefore2035,accordingtomodelingfromtheEYNetZeroEUcarbonfuturespricesofUS$87pertonnewouldaddCentre,increasingfromaroundAU$40/tonnetodaytoaroundUS$420mtothepriceofMozambique’sexportsaroundAU$80/tonne.59totheEU.Ifmorecountriesadoptsimilarcarbontaxesonimports,theimpactwillbefeltincountrieswhereenergyisAndevenwithincreasedcarbonpricing,currentcoveragestilllargelyprovidedbyfossilfuels.ofexistingschemessitsat12gtofCO2emissions,whichaccountsforonly23%ofglobalGHGandlessthan50%ofIntheUS,thefederalgovernmentisyettoaddresscarbonreductionsrequiredtoreachthe1.5°Ctarget.Thisindicatespricing,butafewstateshaveintroducedcarbonpricingthatminerscanexpectcoverageforcarbonpricingschemes.InCanada,inconsistentapplicabilityofcarbontoincrease.Productivitychallengesrequireasystemicapproach“Theapproachtoimprovingproductivitysomecases,trainingdoesnotadequatelyprepareworkersforthejob,hamperingbothproductivityandisstilldefinedbypointsolutions.safety.WearealsoobservinganoverrelianceonpointWeneedtogetphysicalandfinancialtechnologysolutionstocompensatefordiminishingdatatoaccuratelyforecastwhat’soperationalexperience.happeninginoperations.•ESGprioritiesareovershadowingtheproductivitySeniorminingexecutiveagenda.SomeintervieweescommentedthattheybelievethefocusonproductivityhasdiminishedintheOurdiscussionsrevealnewchallengestoproductivity:wakeofESGstrategydevelopment.•ThelackofexperiencedoperatorsandmanagersisAbroaderproblemisthesector’slackofasystemicbecomingacute,negativelyimpactingproductivity.Inend-to-endapproachtoproductivity.Thishasbeenachallengeforoveradecade,anditremainsaweakness.Operationsaremanagedforlocallyoptimizedsolutionsinthevaluechain,butthiscandiminishproductivityacrosstheentirevaluechain.Top10businessrisksandopportunitiesforminingandmetalsin202435Nextsteps:•Focusonbuildingalong-termsustainablecostbase.Ensurenewmeasuresadd,ratherthanerode,Improvingproductivitywilldependuponacombinationvalue.Improvingassetproductivitycanhaveaofdata,information,knowledgeandwisdomthatissignificantimpactoncostreduction,givenhighcenteredaroundpeopleandpoweredbytechnology.maintenancespend,andanimpactonproductivityifassetperformanceisnotoptimized.Options•Buildanintegratedoperatingmodel.Manyminerstoconsiderinclude:stillhaveasiloedoperatingmodel,withlittleintegrationbetweenoperationsandmaintenance•Switchingtolower-costrenewablesourcesandalackofinventoryoptimizationstrategiesandofenergyplans.Aligningaminingcompany’sbusinessmodel,howitcreatesandprotectsvalue,withitsoperating•Encouraginginnovationandpartnershipsthatwillmodeliskeytoensuringproductivityimprovement.reducecostsinthelongertermTypically,valueerodesfromtheresourcebasethroughtomarket.Theroleofeachplanning•Reviewingcapitaltiedupinhighlevelsofpre-horizonistoensurethaterosionisbothtransparentstripping,advancedevelopmentandstockpilesandmanaged.Integratingallplanninghorizons,fromlifeofassettoclosure,enhancesdecision-•Consideringtheuseofcontractminingversusmakingandoperationalstability,unlockingvaluesaleorleasebackacrossthevaluechain,andprovidesafoundationforoperationalexcellenceanddiscipline.•Reviewingsupplierandservicecontracts•Transitionfromtime-basedtocondition-based•Creatingstrategicjointventurestooptimizeand,eventually,predictivemaintenance.Thishelpseconomiesofscaletoimprovethereliabilityandavailabilityofphysicalassets,andtominimizerisksandoperatingcosts.•Reducingback-officecoststhroughautomationoroutsourcing36Top10businessrisksandopportunitiesforminingandmetalsin2024Top10businessrisksandopportunitiesforminingandmetalsin2024377GeopoliticsESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Resource-richcountriesarelikelytoimposemorecontrolonthesupplyofminerals,whileforimportingcountries,ensuringresilientsupplychainsofgreenmineralswillbeanincreasinglyimportantgeostrategicimperative.CourtneyMcCaffrey,EYGlobalGeostrategicBusinessGroupInsightsLeader38Top10businessrisksandopportunitiesforminingandmetalsin2024Geopoliticshasmovedtoseventhplaceontherisksindex,downfromsecondlastyear.Thechangeinrankinglikelyindicatesthelackofnewgeopoliticalrisksontheagendathisyear.However,ongoingissues—includingtensionswithChina,thewarinUkraineandtheintroductionofnewlawsinkeycountries—meanminingandmetalscompaniesmustremainvigilanttogeopoliticalrisksandopportunities.Wenowliveinamultipolarworld,accordingtotheEYWithinthisvolatileenvironment,theraceformineralsand2023GeostrategicOutlook,driveninlargepartbymetalsrequiredfortheenergytransitionisaccelerating,US-Chinatensionsandtherisingassertivenessofmiddleandso,too,arearangeofgovernmentincentivesandpowers.60Risingpopulismandnationalismhavealsorestrictions.TheUSIRAisanotableexample,attractingcontributedtoaweakeningofmultilateralinstitutionsinvestmentintotheUSandalliedcountries,butalsoraisingasgovernmentshaveexertedmorecontrolovertheirthespecteroffurtherglobaltradetensionsduetoitseconomies.Thesetrendswereacceleratedbytheonshoringandfriendshoringprovisions.MiningcompaniesCOVID-19pandemicandsuperchargedbythewarwillneedtobeagile—readytomanagetheriskofinUkraine.governmentinterventioninthesector,whilealsobeingopentocapturingnewinvestmentopportunities.Whatactionsdoyouexpectgovernmentstotakeoverthenext12months?Increasedtaxesandroyalties67%54%EnhancedregulationrelativetoESGApriceoncarbon26%Increasedrequirementsfor25%stakeholderconsultation24%22%AmendedmininglawstospeedupthegrantingoflicensesIncreasedtaxtransparencyrequirementsIncentives21%Policiestoattract20%foreigninvestmentNationalization16%Mandatedbeneficiation13%Increasedexportduties8%Respondentscouldchoosemorethanoneoption.Source:EYminingandmetalsbusinessrisksandopportunitiessurveydata2024.Top10businessrisksandopportunitiesforminingandmetalsin202439Navigatingresourcenationalism,politicalchangeandcarbontaxesWithdemandforcriticalmineralshigh,countrieswithThismeansthatmining,extractingandexportingisgoingthesevaluableresourcesaremovingtooptimizetheirtobecomeharderforminers.Morecountriesarebuildingeconomicreturns.Expecttoseeanincreaseingovernmenttheirownprocessingfacilitiesandexpectingmaterialsminedparticipationinmining,aswellasmoretaxes,royaltiestobedomesticallyprocessed.61Indonesiahasgeneratedandrestrictions.Insomecountries,criticalmineralsmaysignificantrevenuebyensuringnickelisprocessedbenationalized.domestically,forexample.62NeworannouncedgovernmentactionssinceDecember2020Aug22Aug22Mexico—nationalizedlithiumassetsUS—updatedregulationstofurtherreducedependencyonChinaNov22Canada—newlimitsonforeignDec22state-ownedcompaniesinvestinginZimbabwe—exportbanonunprocessedlithiumcriticalmineralsJun23Jan23Namibia—exportbanonunprocessedPhilippines—consideringexportbanlithiumandcriticalmineralsortaxonnickeloreAug23China—restrictedexportsofgalliumandgermaniumTheimplementationoftheEUCBAMislikelytopushOngoingregulatoryandpoliticalchangesreinforcethemorecountriestoimposesimilarrestrictions,toensureimportanceofminingcompaniesmaintainingvigilanceandequityfordomesticproducersandlimittheimportofstrongrelationshipswithgovernment.Forexample,theembeddedemissions.CBAMbeganitstransitionalperiodonlead-uptoEcuador’snationalelectionsinAugust2023saw1October2023andcoverssteel,ironore,aluminiumandsomecallstobanallminingintheChocoAndinoregion.somedownstreamproducts.SomecompaniesareworriedDundeePreciousMetalstookpreventativeaction,signingabouthowitwillaffecttaxrates,whileconcernshavealsoaninvestmentprotectionagreementwiththeEcuadorianbeenraisedabouttheimpactondevelopingcountries’governmenttoensureregulatoryandtaxstabilitycompetitiveness.CBAMmaystillbechallengedundertheandongoingaccesstotaxincentives.64InternationalTradeLaw—India,forinstance,hasopenlyopposedit.6340Top10businessrisksandopportunitiesforminingandmetalsin2024MiningcompaniesfacestrongcompetitionforgreenincentivesAsgovernmentsdoubledownonenergytransitiongoals,demandmorethansupply,butdon’talwayseliminatethemanyareintroducinginitiativesaimedatfast-trackinghurdlesforminers,includingaroundenvironmentalpermitsrenewableswhilealsoreducingrelianceonothercountries,andsociallicensing.Somefearthismayresultinwideningparticularlystrategicrivalsandincriticalsectors.Thethegapbetweensupplyanddemandofcriticalmineralsinpursuitofself-sufficiencyiscreatingaplethoraofgreentheneartomediumterm.67incentivesandsubsidies,includingtheEuropeanCriticalRawMaterialsActandtheUSIRA.TheseareinfluencingTherearealsoconcernsthatclimatechange-relatedinvestment,withcountriesreshoringtechnologyandregulationsandsubsidiesindevelopedcountrieswillenergy,aswellastheminingandprocessingofmineralsexacerbatetheglobalwealthdivide,particularlyforandmetals.65AccordingtotheAmericanCleanPowerthosecountrieswithoutresourcewealth.Resource-richAssociation,privatecompanieshaveinvestedUS$271bincountriesinAfricaandelsewhere,ontheotherhand,havedomesticutility-scalecleanenergyinvestmentsintheUSanopportunitytoplaythebigpowersoffeachotherassinceAugust2022.66countriesscrambleforinfluencein,andaccessto,mineralresourcesinemergingmarkets.InAfrica,investmentMiningcompaniesareseeingsomebenefitsandflow-onfromChinameansgovernmentshaveincreaseddebtstoinvestmentsfromtheseschemes,eitherthroughofftakethecountry.ButChina’sdominancecouldbechallenged,agreementsorevendirectinvestment,butitseemswithboththeEUandUSeyeingAfrica’sroleinthebatterydownstreamsectorswilllikelyreceivethebulkofstimulusmetalvaluechain,offeringindirectsupportthroughfordecarbonizingtechnology.Subsidiestendtostimulateincentivesandgrants.ProactivestrategiescanmitigategeopoliticalriskInJanuary2023,theEYCEOOutlookPulseSurveyfoundcertainmarketsand32%havehaltedaplannedinvestment.allenergyandresourcesCEOshavealteredstrategiesinMorecompaniesarealsocreatingroleswiththespecificresponsetogeopoliticalchallenges.68Forty-onepercenthaveremitofmanaginggeopoliticalrisk.reconfiguredsupplychains,39%areexitingbusinessesinNextsteps:•Collaboratewithtradeandindustrygroups.WorkingtogetherwiththesegroupscanhelpminersMitigatinggeopoliticalriskrequiresminingandbetteradvocatearoundfuturetaxationschemes.metalscompaniestotakeaproactive,diversifiedapproach.Nowisthetimeto:•Influencetaxesandpoliciesthrougharticulatingtheimpactofchangesonminingandmetals•Integratepoliticalriskintobroaderstrategiccompanies,andrecommendingimprovements.planning.Considertheimpactofgeopoliticaltrendswhenmakingstrategicdecisions,andensure•Investigategovernmentincentives.Miningthereisclearownershipofpoliticalriskwithintheandmetalscompaniesthatmakethemostorganization.ofgovernmentincentivesorco-investmentopportunitiescanfast-trackinnovationand•Engagewithstakeholders.Companiesshoulddecarbonizationwhilereducingcosts.proactivelyseekopportunitiesforcloserengagementwithstakeholders,includinggovernments,todemonstratehowminingcreateslong-termvalueforcommunities.Top10businessrisksandopportunitiesforminingandmetalsin2024418CyberESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Miningcompaniesareunderattack.Thesectorwasn’taprimetargetbefore,butthere’sbeenariseinminingcompaniessufferingattacks.Chiefinformationsecurityofficer(CISO)42Top10businessrisksandopportunitiesforminingandmetalsin2024Cyberisbackontherankingforthefirsttimesince2020asminingandmetalscompaniesfaceincreasedattacksfromcybercriminals.GrowingITandoperationaltechnology(OT)convergence,digitaltransformationandremoteworking,aswellasthewarinUkraine,haveseencyberincidentsskyrocket.TheWorldEconomicForumhashighlightedcybersecurityasbothashort-andlong-termriskthatmustbetacklednow.69AmorecomplexthreatlandscapespansITandOT“OTisn’tasmatureasIT—itbecomesaToday,allminingorganizationsaredigitalbydefault,operatinginavast,connecteddigitallandscapewhereeveryweakpointinthesystem.assetrepresentsanothernodeinthenetworkandincreasestheattacksurface.TheEY2023GlobalCybersecurityCISOLeadershipInsightsStudy70found74%ofminingandmetalsexecutivessayintegratingtechnologyisakeychallenge,comparedwith37%forallsectors.Someofourclientsareseeingarapidincreaseinthenumberofattacksonoperationalsystems,includingattacksspecificallydesignedtotargettheseenvironments.TopfiveinternalchallengestocybersecurityapproachMiningandmetalsGlobalIntegratingemergingtechisn’tprioritized37%74%Toomanypotentialattacksurfaces61%52%Difficultybalancingsecurityandinnovation48%50%Non-ITworkforcenotfollowingbestpractices35%38%Inadequatecybersecuritybudget22%36%Source:EY2023Globalcybersecurityleadershipinsightsstudy.ManyCISOsweinterviewedsaidtheywereresponsibleforThe“humanfactor”isamajorissueincybersecurity,andtheOTenvironment,buttheexperienceon-siteissomewhatahugegapinminingandmetals.Thesectorneedsastepdifferent.TheyareoftenblockedbyoperationsorOEMchangeincybercultureandawarenesstobuildcyberproviders,whofearcybertestsandimprovementinitiativesresilienceandpreparedness.Everycompanyshouldacceptwillcauseshutdownsandimpactproductivity.that,whenitcomestocyberattacks,it’snotacaseof“if,”but“when.”Top10businessrisksandopportunitiesforminingandmetalsin202443NewfocusonIPcyberrisksgrowinginvestmentinR&DaroundESGinitiatives(suchasdecarbonizationprojects).It’sasignthesectorisshiftingitsOursurveyhighlightsagrowingconcernfromminerscyberfocusfromanarrowviewofprotecting“availability”toaroundintellectualpropertycyberrisks.Thismaybealsosecuring“confidentiality.”drivenbyaneedtoprotectevent-sensitiveinformation(suchasduringM&Aornegotiationsforlandrights)andConcernaboutcybersecurity-relatedriskstotheorganization%veryconcernedMiningandmetalsGlobalTechnologyinfrastructurerisksIntellectualpropertyprotectionrisks48%30%47%Financialrisks43%39%48%Reputationrisks30%Supplychainrisks33%PhysicalrisksEmployeerisks30%28%22%25%17%18%Source:EY2023globalcybersecurityleadershipinsightsstudy.44Top10businessrisksandopportunitiesforminingandmetalsin2024Cyberthreatsrequiregreaterboardattention“CybersecuritythreatsareverymuchseenOnly40%ofboardsintheEYGlobalBoardRiskSurvey2023areconfidenttheyunderstandthebiggestcyberasatechnologyproblemintheindustry,risksfacingtheorganization.72Cyberreportstotheboardwherereallyitneedstobelookedatasainfrequently,withCISOsoftenseenascybertooloperatorsbusinessrisk.ratherthanbusinessriskmanagers.AsminersexpandintomorebusinessesrequiringagreaterlevelofIPandinsightRobLabbé,CISO,MiningandMetalsInformation(suchashydrogenpowerandgreensteel),financialrisksofSharingandAnalysisCenter(MM-ISAC)71cyberattackscouldincreasesignificantly.Ifboardsaretomakeeffectivedecisionsaroundcyberrisk,theyneedacybersecurityreportingandriskframework,andarisk-focusedmindsetthatenablesthemtoaskbetterquestionsofmanagement.MixedfeelingsabouttheimpactofregulatorychangesNewcyber-relatedregulationwillelevatecybertotheraisedconcernsaroundadditionalstressplacedonboard’sagenda.Forexample,newrulesproposedbythealreadyunderresourcedteams.ThishighlightstheneedSECwillrequirepubliccompaniestodisclosehowboardsforregulatorstogetthebalancerightandforbusinessoverseecyberrisk.73toincreaseinvestmentincybercapability.OurresearchsuggeststhatcybersecurityfundinghasnotkeptupWeaskedCISOswhethertheythoughtextraregulationwiththegrowingrisk,with22%ofsurveyrespondentswouldhelporhindercybersecurityprograms.Ninetysayingbudgetsarelowerthanrequiredtoaddresscyber-percentofCISOsweinterviewedfeltitwouldhelp,butmanyrelatedchallenges.Top10businessrisksandopportunitiesforminingandmetalsin202445NewstrategiestofillthecybersecurityskillsgapUpskillingthecurrentcyberworkforceisthebiggesttalentprocesses.Thegapbetweendemandforcybersecurityskillsstrategytoprepareforfuturethreats,with78%ofsurveyandworkersiswidening,withcyberOTprofessionalsevenrespondentssayingthisisasignificantortoppriority.Manyhardertofind.Miningandmetalscompaniesthatco-sourcecompanieshavebuiltinternalcapabilities,butchangingtheseskillscangainthecapacitytheyneedwhileupskillingbusinessdemandsseesomeoptingtooutsourcecriticaltheirowncybersecurityteams.Towhatextentinyourorganizationprioritizingthefollowingtalentstrategiestoprepareforfuturecybersecuritythreats?%ToporsignificantpriorityMiningandmetalsGlobalStandardizingandautomatingprocessestoreducestaffingneeds35%28%Diverseworkforceretentionandrecruitment35%30%Outsourcingmorefunctionsandcapabilitiestothird-partyspecialists30%32%Source:EY2023Globalcybersecurityleadershipinsightsstudy.Nextsteps:riskscenariosthatarebusinessunitspecific(10to15scenarios)andcommongroup-levelscenarios)Buildingcyberresiliencerequiresminerstoconsiderandleveraged“riskbow-tie”principles(i.e.,criticalkeyquestions:preventativeanddetective/recoverycontrolsthatarewelldefinedwithclearmetricstocontinuallyHavewealignedourcybersecuritystrategytoenableassesscontroleffectiveness)?businessobjectives?Whendidwelastconductcybertestingoradeep•Ifyes,howistheorganizationstructuredtobringdiveintoOTcybersecurity?thediverseskillsetstoadviseandinfluencekeystakeholdergroupsacrossITandOT?•Adedicatedindustryframework,calledtheMITREATT&CK®MatrixforICS,outlinesthetacticsand•Ifno,doweneedtoreviewtheaccountabilitiestechniquesusedtogainunauthorizedaccessandframeworkandappointaseniorexecutivetoexecutemaliciouscommandsinanOTnetwork.championthechange?•Ifanexercisewasrecentlyperformed,howeffectiveHoweffectiveareourcybercontrolstomanageourwerecontrolstoprevent,detectandrespondtopfiveenterprise-widecyberriskscenarios?tounauthorizedactivities.Moreimportantly,istheresufficienttransparencyandvisibility•Arethesecyberriskscenariosknownandassessedtomonitorthecompletionofshort-andperiodicallybytherightteams?medium-termimprovements?•Hastheapproachincorporated“bottomup”analysis(e.g.,identifyingandassessingthemultiplecyber46Top10businessrisksandopportunitiesforminingandmetalsin2024Top10businessrisksandopportunitiesforminingandmetalsin2024479NewbusinessmodelsESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce20242023“Ourbusinessmodelisbeingchallenged-ledbychangesindigital,ESGandaccesstocapital.Wearereassessingourportfolio,consideringverticalintegrationaswellashowtoinvestinrenewableenergy.Seniorminingexecutive48Top10businessrisksandopportunitiesforminingandmetalsin2024Miningandmetalcompaniesarerampingupprogressonnewbusinessmodels,bothverticallyandhorizontallyacrossthevaluechain,tomaximizevalue.FocusonimprovingminetomarketflowWeseeagreaterfocusonexploration,beneficiationandIndonesiahaveimplementedhigh-pressureacidleach(HPAL)materialsproduction,tohelpimproveminetomarketflow,technologytoprocessnickelore,and,aroundtheworld,generateincrementaldemandforcommoditiesandallowinglithiumminersareintegratingminingintoprocessingandcompaniestoleveragemarginswhilereducingvolatility.batterymanufacturing.CollaborationacrossthevaluechainAdvancedprocessingisattractinginvestment,ascountriesisalsoincreasingasOEMsseektosecurerawmaterialsupply,seekanalternativetoChina.Forexample,companiesinandminingcompaniessecurecapitaltobuildnewmines.Moreinnovationingreenproducts“Premiumsarenotyetavailableforonembeddedemissions.InitiativessuchastheEU’sCBAMwillincreasescrutinyofhowmetalsareproducedandhowallcommodities.muchcarbonisemittedineachprocess.SeniorminingexecutiveSomeexamplesofgreenproductsinclude:Miningcompanyexecutivestoldustheyseegreenminerals•Greenaluminiumtechnologytoproducelower-andmetalsasthefutureofthebusiness—butnotallarecarbonproducts.Forexample,NorskHydro’sREDUXAseeingapremium.Onesaid,“Theymightbecomeavailable,technologyproducesaluminiumproductswithlessthanandtheobjectivetoachievenet-positiveimpactwillserve4kgCO2/kgofaluminium,comparedwiththeindustrytheneed.”However,someproducersarealreadyreceivingaverageof16.7kgCO2/kgofaluminium.75apremiumforgreenmetals,particularlycopperand,asdemandincreases,itisexpectedthatpremiumsmay•Greensteelrawmaterials,includinghigher-gradeironincrease,especiallyifsupplydoesnotkeeppace.74oresordirectreducediron(DRI).Forexample,ValeisusingconcentrationtechnologytoraiseferrouscontentDemandforgreenproducts,andtheassociatedtransparencytoaround67%atitsCarajáscomplex76andisexploringrequired,isexpectedtorampupinlinewithagrowingfocushowtoproducecarbon-neutralsteel.77•Greensteel,ssuchasthatproducedbyBHPandHatch’strialoftheelectricsteelfurnace,canproducesteelfromDRIusingrenewableelectricityandhydrogen.78InvestmentinadjacencieshelpsmitigateriskCompaniesarealsoinvestinginadjacencies,particularlyinvesting,ratherthanreturning,agreaterproportionofthosethatsupportorde-riskotherinvestments,capital.Forexample,AngloAmericanpartneredwithEDFincludinginfrastructure,energyandtechnology.RenewablestoformEnvusaEnergy,whichwilldevelopHorizontalintegrationallowsminerstoincreasescalearenewableenergyecosysteminSouthAfrica.Theandinvestmentbydecreasingriskinanonfamiliarprojectisexpectedtogenerate3GWto5GWofcleangeographyorcommodity,drivingavaluemodelchangeenergyby2030,boostingtheresilienceofSouthAfrica’stogaincompetitiveadvantage.Itisalsoanoptionforelectricitynetwork.Top10businessrisksandopportunitiesforminingandmetalsin202449Balancingnewbusinessmodelswithcoreactivities“ReshapingbusinessmodelsisaThequestionofwheretoinvestforgrowthisnoteasytoanswer.Scenarioplanningisvitaltoensureagility.Ithelpschallenge.Whileweinternallyseetheunderpinmedium-andlong-termbusinessplans,prepareneed,shareholdersarelesswillingtoforalternativefuturesandforecasttheimpactofpotentialenterthatconversationbecauseofthescenariosondemand.impacttoreturns.OursurveyrevealsminersareconsideringarangeofSeniorminingexecutiveinvestmentoptions.Digitalisagrowingfocus,possiblybecauseincreasingcostsandinflationhavehighlightedtheroleoftechnologyinimprovingproductivity.TherisingimpactofAIisalsoafactor.ThechallengeforminersisaddressingtheneedtoinvestChangeinimportanceofoptionschosenbyrespondentsinnewbusinessmodelswhilemaintainingdiscipline(%change2024vs.2023)andreturns.EYanalysisshowsmostcompaniesarefocusinginvestmentintraditionalorcoreactivitiesDigital11%suchasexploration,miningandprocessingtoensurereturnsremainstrong—andcanfundinvestmentsinTransformmaterialsourcing11%sustainability,technologyandnewbusinessmodels.M&A3%EYanalysisofinvestmentsof12majorminingcompanies2018–22Verticalintegration3%5%Transform0%Oilandgas/Spin-offassets0%power-1%Communityinvestment11%Technology-1%Integraterecycling42%15%-2%HorizontalintegrationMiningandMetal-7%Buildexplorationprocessing-11%Divest27%Source:EYminingandmetalsbusinessrisksandopportunitiessurveydata2023and2024.Decarbonization/greensolutionspower–doesnotincluderenewablesSource:EYstrategyedge,march2023.50Top10businessrisksandopportunitiesforminingandmetalsin2024Sustainabilityisalsoabigdriverofinnovation.Beyondexample,Fortescueisexpectingapreliminarylicensetoinstallrenewableenergy,companiesareinvestinginstartups,agreenhydrogenplantinBrazilandrecentlyannouncedtheincludinginenergystorage,batteriesandhydrogen.ForacquisitionofahydrogenhubinPhoenix,Arizona.79GreeninvestmentslargelyinenergystorageandhydrogenNo.ofinvestmentsbytop12miningandmetalscompanies(2018–22)PrivateplacementM&AEnergystorage363Hydrogen262Renewables94Wastemanagement/recycling65CCUS31Source:EYanalysisofcompanyreportsandpublicinformation.Top10businessrisksandopportunitiesforminingandmetalsin202451“IgnoringthecirculareconomyasaWearealsoseeingsignificantprogressinthecirculareconomy.Miningcompaniesareconsideringhowtousesourceofsupplywouldbefoolish—butcirculareconomyprinciplestobettermanagewastetobetransformational,itneedstobeaacrossthevaluechain,integraterecycling,andimprovesignificantinvestment.However,thiscollaborationandtransparencywithmanufacturerswouldchangeacompany’sriskprofileandcustomers.Capitalizingonacirculareconomywillandmayimpactinvestors.requireminingcompaniestomakeaholisticanalysisofallmaterialflowsandconsiderlifecyclebenefitsSeniorminingexecutiveandimpacts.Estimated%ofcumulative2050demandthatcanbemetthroughrecycling6159584739AluminiumCopperNickelCobaltLithiumSource:IEA2022andworldbank202052Top10businessrisksandopportunitiesforminingandmetalsin2024Moreminersareinvestinginrecycling,which,whileneversuchascopper,zinc,nickelandlead.Weexpectthistrendabletofullyovercomestructuraldeficitsinthemarket,toexpandasminingcompaniesandothersinthevaluewillbecomeasignificantsourceofsupply,particularlychainmoveintoatruecirculareconomywithclosedasbatteryrecyclingincreases.Forexample,Glencorehasmaterialloops.beenadvancingbatteryrecyclingalongsidebasemetalsImplementingcirculardesignintotheminingandmetalsvaluechainValuechainActionBenefitExtractionProcessingRemoveinefficiencies,Improvedresourceefficiency,Logisticsre-useresourcesandbetterwastemanagement(e.g.,water)anddesignManufacturingwasteoutofprocessesConsumeruseTransformationReprocesswastes,CreatebyproductsandkeepStrategytailingsandscrapmaterialsandproductsinuseEnablerDataanalyticstoReducecosts•CirculardesignforoptimizefreightRemovecarbonemissionslongerproductlifeSainsburry’sisswitchingfromusingplastictocreatingitssignature•Newbusinesscoffeepodsoutofaluminium,modelsandwhichisinfinitelyrecyclablerevenuestreamsCollaboratewithcustomersReducecosts•ReversecyclestodevelopnewproductsthatMinimizewaste•Eco-systemcanbere-usedinthefutureImprovedresourceefficiency•ChannelstrategyDataandtechnologytoIncreasedinvestmentenabletransparencyofGreateraccountabilitysourceofmaterialsReductioninillegalpracticesNextsteps:•Preparetodivestorreshapeforadifferentenvironment.•Conductscenarioplanningtobuildagilityandensurereadinessforpossiblealternativefutures.•Usecirculareconomyprinciplestobettermanagewasteacrossthevaluechain,integraterecycling,•Considerinvestmentinadjacenciestohelpandimprovecollaborationandtransparencymitigaterisk.withcustomers.Top10businessrisksandopportunitiesforminingandmetalsin20245310WorkforceESGCapitalLicensetooperate1Climatechange82Digitalandinnovation43394Costsandproductivity55Geopolitics267Cyber8Newbusinessmodels109710Workforce2024202354Top10businessrisksandopportunitiesforminingandmetalsin2024Findingtalentcontinuestobeamajorchallengeforminingandmetalscompanies.Inanincreasinglycompetitivelabormarket,thesector’spoorbrandandperceptionsaroundLTOaredeterringworkers,especiallyyoungerones,withsomeattractedtoenergytransitionprojectsinstead.Atthesametime,existingworkforcesareaging,andthepotentialofautomationandtechnologytorelievetalentpressureshasnotbeenrealized,accordingtohumanresourcesofficers(HROs)wesurveyed.Mostarenowrapidlyrethinkingrecruitmentandretentionstrategies.Recruitmentstrategiesadapttoincreasedcompetitionforscarcetalent“Wearereviewingourrecruitmentprocess•Upskillingorfillingroleswithinternalcandidates,wherepossibletoeliminateend-to-endstructuralbarriers.•Consideringtalentwithtransferableskills,ratherthanSeniorHRexecutivepurelydirectexperienceRecruitmentforon-siterolesisparticularlychallenging,given•Recruitingglobaltalent—however,logisticsandthelackofdesiretoworkremotelyandlocalcommunityimmigrationprocessescanbelengthyandexpensivetalentbeingexhausted.Asminersstruggletofillspecialistpositions,includingITrolesandmid-seniorlevelengineers,•Recruitingyoungertalent,leveraginguniversityandtheyarerollingoutinitiativesincluding:experientialprograms,andparticipatinginschoolcareerfairs(creativeapproacheswillberequired—arecentsurveyofyoungpeoplebytheCanadianMiningIndustryHumanResourcesCouncilfound70%saidthey“definitely”or“probablywouldnot”workintheminingsector)80Inspiringanddevelopingtalenttoimproveretention“Weneedtolookatsustainabilityforminers,whichfaceannuallaborturnoverratesof30%to35%,accordingtoTomReidoftheAustralianResources&tomorrow—weneedtoretainexistingstaffEnergyEmployerAssociation.81orfaceamajorissue.SkillsmapscanhelparticulategrowthopportunitieswithinSeniorHRexecutiverolesandsupportupskillingforrolechanges,rotationsandcertifications.RotatingearlycareerengineersOneHROtoldusthatthenumberonequestionposedthroughdisciplinescanhelpavoidpigeonholingandmaybyyoungerworkersininterviewsis:“Howwillmycareerimproveretention.develop?”Developingattractivecareerpathwayscanhelpinspireworkerstoseetheirfutureinmining,andimproveMinersmayalsoneedtore-evaluatetheirbroaderemployeeretentionrates.Theissueisheightenedformid-tiervalueproposition.Workers,particularlyGenZ,wanttobeinacompanywithvaluesandapurposethatreflecttheirown.ManyHROsarefocusedoncreatingamoreattractiveworkculture,highlightingmining’sroleintheenergytransitionandsupportforlocalcommunities.Top10businessrisksandopportunitiesforminingandmetalsin202455Upskillingandre-skillingarepriorities•Awhole-of-organizationapproach“UpskillingistheNo.1priority—itneeds•Thelong-termview,comparedwithtraditionalquarter-to-quarterthinkingtobeembeddedintoourDNA.•Mobilityacrossallfunctionsandsites(tobreakdownsilos)SeniorHRexecutive•BroaderESGcapabilities—beyondtheoperationalSectorleaderswespoketoagreedthatupskillingandperspectivere-skillingmustbecoretoeveryHRstrategy.Minersneedtodefinetheskillsandcapabilitiestosucceedoverthenext•Just-in-timetrainingforoperatorsandmaintainers18monthsandbeyond,considering:•Re-skillingopportunities(oneHROsaid,“We’vegot[diesel]engineers,[but]weneedthoseengineerstobeelectricalengineers.We’vegotthebaseskills,wejustneedtomovethemtotheadjacency.”)Overlookedonboardingshouldsoundalarmbells“WeneedpeopletohaveaccesstotheCurrentonboardingprocessesoftenlackgovernanceandrelytooheavilyonsupervisors,manyofwhomarenewtolearninganddevelopmentwherevertheythesectorthemselvesandlackexperience.Thiselevatesare,whichisamassiveculturalchange.safetyrisksandhasanegativeimpactonmoraleandproductivity.Insomecases,trainingdoesnotadequatelySeniorHRexecutiveprepareworkersforthejob—skillsneededon-sitemaybeverydifferentfromthosegiveninatwo-dayoffice-basedMinershaveachievednearzeroharmonsite,butneartrainingcourse.AIorvirtualrealitysimulationscouldhelpmissesareincreasing.Someminingunionsarecallingforfilltraininggaps,offerreal-timeopportunitiestoimproveincreasedreportingtoidentifytrendsandpreventseriousskillsand,ultimately,improvesafetyon-site.Thereisainjuriesinthefuture.82clearneedtoupliftbasicdigitalanddataskillsforallintheworkforce,tohelpeveryoneusenewtechnologiesinfrontlineroles.Organizationsshouldinvestintheirsystems,makingthemmore“app-like”tocreateaneasyuserexperience.56Top10businessrisksandopportunitiesforminingandmetalsin2024HRseekinggreaterdatatodrivedecision-making“WhatcanIanticipatewillhappenviaDataoffersenormousvalueinhelpingtrackandunderstandemploymenttrendsandmakemoreinformeddecisions.businessintelligence?WeseemoreHRleadersseekingrobustdataaroundretention,genderbalance,absenteeism,on-siteoccupancy,SeniorHRexecutiveandhealthandsafety.HRismakinggreateruseofmorerobustdatatotracktrendsDatacanalsohelpdeepenunderstandingaroundtheandmakeinformeddecisions,particularlyaroundretention,complexleversdrivingproductivity.In2022,mininglaborgenderbalance,absenteeism,on-siteoccupancy,andhealthproductivityfell7%intheUS83and5%inAustralia,withandsafety.similartrendsexpectedinothermarkets.MiningLabourProductivity2005-2021130.0120.0110.0100.090.080.070.060.050.020052006200720082009201020112012201320142015201620172018201920202021ChileCanadaAustraliaAggregateSource:EYanalysisofcountrystatisticalwebsitesManyminersstillfacechallengesinorganizingdata,Keytorealizingthefullpotentialofanynewtechnologyextractingvaluefromitandensuringallprivacyandsecurityisawhole-of-organizationapproach—unlesseveryoneprotocolsaremet.Therighttechnologyiscritical,butweunderstandsandembracesthetechnology,itwillnotbefoundsuccessfuladoptionvariesacrossthesector.Largerused.OneHROcommented,“Verylittleemphasishasbeencompaniesthatusechangemanagementteamstohelpmoveputontrainingtheworkforcetoensurereadinesswhentonewtechnologyfarebetterthansmallercompaniesthatimplementingachangeintechnology—ithasbeenassumedattempttofigureoutchangesthemselves.thatwecanadopt,andthenwefailtolaunch.”Top10businessrisksandopportunitiesforminingandmetalsin202457AnewlensonleadershipforsuccessfultransformationWithminingorganizationsfacinganunprecedentedlevelofchangeonmultiplefronts(environmental,political,social,technological,etc.),leadersmustshifttheirapproachtotransformation.Inarecentreport,EYandtheUniversityofOxford’sSaïdBusinessSchoolidentifiedsixkeydriversthatincreasethelikelihoodoftransformationsuccessto73%.84Theseareasfollows:InspireLeadCareuniteleadershiponpurposeshiftto“we,”not“me.”buildaculturewhereopinionsandvision.areembracedandencouraged.EmpowerBuildCollaboratefocusonclearrolesanddecision-linkyourtechnologyroadmaptobuildacultureofmakingauthority.skillsdevelopment.interdependentteams.Thisapproach,whichengenderspsychologicalsafetyforallworkers,cancreateamoreinnovativecultureandamoreproductiveworkforce.Nextsteps:•Developattractivecareerpathwaysandskillsmapstoinspireworkerstoseetheirfutureinmining,and•Setthetonefromthetop,consideringwhetherimproveretentionrates.HRneedsaplaceontheboardtoeffectivelydriveapeopleandculturestrategy.•Ensureonboardingisfitforpurpose,improvingitsefficiencyandspeed,whilemaintainingafocuson•Makeupskillingandre-skillingcoretothesafetyandcompetence.HRstrategy.•Rethinkyouremployeevaluepropositionandrecruitmentpracticestoattractadiverseworkforcewithfuture-readyskills.58Top10businessrisksandopportunitiesforminingandmetalsin2024Outlook:mitigatingAboutthesurveyrisksandmaximizingDuringJuneandJuly2023,wesurveyedorinterviewedover150opportunitiesminingexecutives,includingthoseintheC-suite,aswellasleadersinhumanOurrankingofrisksandopportunitiesresources,sustainabilityandtechnology,revealsthatminingandmetalsacrossallmajorminingregions.companiesfacehugedisruptionandrapidlychangingexpectationsthat,ESGisacomplicatedissuewithmanytogether,mayimpacttheirabilitytosubtopics.Becauseofthiscomplexity,buildsustainablevalue.MitigatingrisksweseparateclimatechangeandLTOandmakingthemostofopportunitiesfromthebroadertopicofESGtoallowrequirescompaniestomakesignificantdeeperfocusontheseissues.changestotheirbusinessthroughaproactive,diversifiedapproachthatisintegratedintostrategyandbroaderplanning.Minersthatdososuccessfullywillgainacompetitiveadvantage.Top10businessrisksandopportunitiesforminingandmetalsin202459Endnotes1“MiningandMetals:TheOpportunitytoContributetotheGlobalBiodiversityFramework,”ICMM,June2023,https://www.icmm.com/website/publications/pdfs/environmental-stewardship/2023/factsheet_nature-gbf.pdf2“GlobalIndustryStandardonTailingsManagement,”GlobalTailingsReview,https://globaltailingsreview.org/global-industry-standard/,accessedon21August20233“MiningMicrobiomeAnalyticsPlatform(MMAP)—DigitalSupercluster4“Water,”RioTintowebsite,https://www.riotinto.com/en/sustainability/environment/water,accessed28August20235“Womeninmetals,miningmakemodestgainsinleadershiproles,”S&PGlobalMarketIntelligence,23May2023,https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/women-in-metals-mining-make-modest-gains-in-leadership-roles-757590826“TheBoardImperative:Howtoday’sboardscanmeettomorrow’schallenges,”EY,14July2021,https://www.ey.com/en_au/risk/how-todays-boards-can-meet-tomorrows-challenges7“NewTSMprotocoltochangethefaceofCanada’sminingsector,”MiningWeekly,23June2023,https://www.miningweekly.com/article/new-tsm-protocol-to-change-the-face-of-canadas-mining-sector-2023-06-238“Howminerscanaccelerategenderdiversity,”PaulMitchell,EYGlobalMiningandMetalsLeader,28September2022,https://www.ey.com/en_au/corporate-responsibility/how-miners-can-accelerate-gender-diversity9“SuicideRatesbyIndustryandOccupation—NationalViolentDeathReportingSystem,32States,”PetersonC,etal.,,MMWRMorbMortalWklyRep,69(3):57-62,202010“IntegratinghumanrightsintoAustralianbusinesspractice,”AustralianHumanRightsCommission,https://humanrights.gov.au/our-work/employers/integrating-human-rights-australian-business-practice,accessedon28August202311“TheRMIReport2022,”ResponsibleMiningFoundation,2022,https://2022.responsibleminingindex.org/en12“Rehabilitationandbiodiversity,”GoldFieldswebsite,https://www.goldfields-ghana.com/rehabilitation-and-biodiversity.php,accessedon4September202313“Biodiversityisstillablindspotformostcompaniesaroundtheworld,”S&PGlobal,15December2022,https://www.spglobal.com/esg/insights/biodiversity-is-still-a-blind-spot-for-most-companies-around-the-world14“Naturalaccountingfortheminingsector:Beenupsitepilotcasestudy,”BHP,January2023,viahttps://www.bhp.com/-/media/documents/environment/2023/230502_bhpbeenuppilotcasestudynaturalcapitalaccountingreport.pdf15“WheredoesTeslagetitslithium”BusinessWeekly,19June2023viaFactiva,©2023Zimpapers16“USclimatelawcues$63Bspendingspreeonbatteryfactories,”S&PGlobal,9August202317“AngloAmericanlaunches€745millionsustainability-linkedbond,”AngloAmericanPressRelease,14September2022,https://www.angloamerican.com/media/press-releases/2022/14-09-2022;“NorskHydroInksUS$200MMSustainabilityLinkedLoanForSwitchToNaturalGasAtAlunorte,”AluminiumInsider,3April2023,https://aluminiuminsider.com/norsk-hydro-inks-us200-mm-sustainability-linked-loan-for-switch-to-natural-gas-at-alunorte18“GoldFieldsannounces$1.2bnsustainability-linkedloan,”MiningWeekly,5June202319“NewmontEntersintoDefinitiveAgreementtoAcquireNewcrest,”Newmontpressrelease,14May2023,https://www.newmont.com/investors/news-release/news-details/2023/Newmont-Enters-into-Definitive-Agreement-to-Acquire-Newcrest/default.aspx;IncludesadditionaldetailsfromMergermarket.20“BidforUSSteelpromisesnationalsecuritythroughconsolidation,”FinancialTimes,18August202321“Mistrustinminingshouldworryusall,”Euractiv,26June2023,https://www.euractiv.com/section/energy-environment/opinion/mistrust-in-mining-should-worry-us-all/22“2023EdelmanTrustBarometer:globalreport,”Edelman,2023,https://www.edelman.com/sites/g/files/aatuss191/files/2023-03/2023%20Edelman%20Trust%20Barometer%20Global%20Report%20FINAL.pdf23Asreferencedin“WorldMiningCongress–KeynotebyRohiteshDhawan,PresidentandCEO,ICMM,”InternationalCouncilonMiningandMetals,27June2023,https://www.icmm.com/en-gb/stories/2023/world-mining-congress-keynote,accessedon29August202324“FossilfuelrecruitersbannedfromthreemoreUKuniversities,”TheGuardian,1December2022,https://www.theguardian.com/environment/2022/dec/01/fossil-fuel-recruiters-banned-from-three-more-uk-universities;“Urgentactionneededtostemslumpingeosciencegraduatesglobally—report,”Mining.com,31January2023,https://www.mining.com/urgent-action-needed-to-stem-slump-in-geoscience-graduates-globally-report/25“Energytransitionmineralsandtheirintersectionwithland-connectedpeoples,”/Owen,J.R.,Kemp,D.,Lechner,A.M.etal.26“South32,theIllawarraLocalAboriginalLandCouncilandUOWresearcherstoco-designanenvironmentalmanagementapproachbasedonAboriginalknowledgesystems,”UniversityofWollongong,8July2022,27“ICMMworkstowards‘nature-positive’mining,”MiningWeekly,3March2023,https://www.miningweekly.com/article/icmm-works-towards-nature-positive-mining-2023-03-0328“ISSBissuesIFRSS2newclimate-relateddisclosurestandard,”EY,26June2023,https://www.ey.com/en_gl/ifrs/what-you-need-to-know-about-new-issb-standard-ifrs-s229“2023SustainabilityLeaders:Report&Webinar,”GlobeScan,June2023,https://globescan.com/2023/09/06/2023-globescan-sustainability-leaders-survey-report-webinar/60Top10businessrisksandopportunitiesforminingandmetalsin202430“Climatechange2023:Synthesisreport,summaryforpolicymakers,”Intergovernmentalpanelonclimatechange,ContributionofWorkingGroupsI,IIandIIItotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange[CoreWritingTeam,H.LeeandJ.Romero(eds.)],2023,https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_SPM.pdf31“GlobalRisksReport2023,”WorldEconomicForum,11January2023,https://www.weforum.org/reports/global-risks-report-2023?gclid=EAIaIQobChMImdyO4qb0gAMVmyKDAx0ylw8sEAAYASAAEgIRrvD_BwE32“Wildfireshutdownssignalthatclimatechangeisbecomingbiggerthreattominers,”FinancialPost,19June2023,https://financialpost.com/commodities/mining/wildfires-signal-miners-need-to-worry-about-climate-change33“Goldandclimatechange:Adaptationandresilience,”TheWorldGoldCouncil,8November2022,viahttps://www.gold.org/goldhub/research/gold-and-climate-change-adaption-and-resilience34“RioTintobosssaysheregretsambitiousemissionstargets,”WAToday,5May2023https://www.watoday.com.au/national/western-australia/rio-tinto-boss-says-he-regrets-ambitious-emissions-targets-20230505-p5d5za.html35https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group-v5/PLC/investors/annual-reporting/2022/climate-change-report-2022.pdf36“Fortescueannouncesexecutionplanforindustryleadingdecarbonization,”ASXrelease,20September2022,viahttps://cdn.fortescue.com/docs/default-source/announcements-and-reports/2439388.pdf37“BlackrockbreakswithGlencoreoverenvironmentpolicy,”FinancialTimes,10September2023,viahttps://www.ft.com/content/5b0d426a-87fe-4998-a3d6-3cf9f5669e6a,accessed11September202338“Glencoreshareholderspushbackagainstclimatestrategy,”FinancialTimes,27May2023viahttps://www.ft.com/content/ce903dea-da51-4803-ac48-d7c2ab749a7f39“Tecktospinoffsteelmakingcoalbusinesstoshareholders,”TeckResourcespressrelease,21February2023,viahttps://www.teck.com/news/news-releases/2023/teck-to-spin-off-steelmaking-coal-business-to-shareholders40“GlencorePressRelease,12June2023,https://www.glencore.com/media-and-insights/news/glencore-confirms-that-it-submitted-alternative-proposal-to-acquire-tecks-steelmaking-coal-business41“SECEyesOctoberforClimateDisclosureRegulationsRelease,”Bloomberglaw,14June2023viahttps://blogs.law.columbia.edu/climatechange/2023/08/08/new-california-legislation-would-be-a-major-step-forward-for-climate-disclosure/42“Whenwillclimatedisclosuresstarttoimpactdecarbonization,”EYAustralia,27September2022,https://www.ey.com/en_au/climate-change-sustainability-services/risk-barometer-survey-202243“ClimateChangeReport2022,”RioTinto,22February202344“MikeHenryspeechatWorldMiningCongress2023,BHPPresentations,27June2023,viahttps://www.bhp.com/news/media-centre/reports-presentations/2023/06/mike-henry-speech-at-world-mining-congress-202345“EITRawMaterials&AngloAmerican“PathwaystodecarbonizingSteel”InnovationChallenge,”RawMaterialsHub,15March2023,viahttps://www.eitrawmaterials-rcadria.eu/news/eit-rawmaterials-anglo-american-pathways-to-decarbonizing-steel-innovation-challenge46“CleanerandSaferVehicles,”ICMM,viahttps://www.icmm.com/en-gb/our-work/cleaner-safer-vehicles,accessedon21August202347“CollaborationforInnovation:AcceleratingtheImplementationofZeroEmissionVehiclesfortheMiningandMetalsIndustry,”ICMM,14November2022,viahttps://www.icmm.com/en-gb/stories/2022/accelerating-implementation-of-zero-emission-vehicles48“NickelCreekPlatinumannouncesconfirmationofthecarbonabsorbingcharacteristicsofboththetailingandwasterockanticipatedattheNickelShawWellgreendeposit,NickelCreekPlatinumPressReleases,13June2023,viahttps://www.nickelcreekplatinum.com/investors/news-releases/press-release-details/2022/NICKEL-CREEK-PLATINUM-ANNOUNCES-CONFIRMATION-OF-THE-CARBON-ABSORBING-CHARACTERISTICS-OF-BOTH-THE-TAILING-AND-WASTE-ROCK-ANTICIPATED-AT-THE-NICKEL-SHW-WELLGREEN-DEPOSIT/default.aspx49“MininglookstoAIforedgeinfindingnewmetal”S&PGlobalMarketIntelligence,5July2023,viahttps://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/mining-looks-to-ai-for-edge-in-finding-new-metal-7634590950“RioTintoOpensGudai-Darri,itsMostTechnologicallyAdvancedMine,”RioTintopressrelease,21June2022,viahttps://www.riotinto.com/news/releases/2022/Rio-Tinto-Opens-Gudai-Darri-its-Most-Technologically-Advanced-Mine51“Digitalsolutionscanreduceglobalemissionsbyupto20%.Here’show,”WorldEconomicForum,23May2022,viahttps://www.weforum.org/agenda/2022/05/how-digital-solutions-can-reduce-global-emissions52“Howcanyourdigitalinvestmentstrategyreachhigherreturns?,”EYParthenon,5April2022,viahttps://www.ey.com/en_gl/strategy/digital-investment-report53“Chilemapsoutinterestratecutsto8%thisyearafterparingeasing,”YahooFinance,6September2023,viahttps://ca.finance.yahoo.com/news/chile-slows-pace-rate-cuts-211744508.html54OxfordEconomics(addtitleofmacroupdate)55“BHPwarnsof$1.3bcostblowoutfromnewIRlaws,”SmallCaps,23May2023,viahttps://smallcaps.com.au/bhp-warns-cost-blow-new-mining-ir-laws/56“Fortescueannouncesexecutionplanforindustryleadingdecarbonization,Fortescuepressrelease,22September2022,viahttps://fortescue.com/docs/default-source/announcements/fortescue-announces-execution-plan-for-industry-leading-decarbonisation.pdf57Analysisof132projectsinS&PCapitalIQProdatabaseofminingandmetalsproperties58“BC’sminespaythehighestcarbontaxintheworld,”MiningAssociationofBritishColombia,viahttps://mining.bc.ca/carbon-pricing/Top10businessrisksandopportunitiesforminingandmetalsin20246159“WhytheSafeguardMechanismsupportssteepreductionsinemissionsandsteeprisesincarbonprices–withapossiblesting,”EY,22June2023,viahttps://www.ey.com/en_au/sustainability/australias-safeguard-mechanism-and-the-transition-to-net-zero60“2023GeostrategicOutlook:Howtobuildarobuststrategyforavolatileworld,”EY,December2022,viahttps://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/geostrategy/geostrategy-pdf/ey-2023-geostrategic-outlook.pdf61“Thenewcommoditysuperpowers,FinancialTimes,8August2023,https://www.ft.com/content/0d2fba79-940f-4a28-8f4f-68f1e755200f,accessed21August202362GovernmentincreasesownershipasFreeportdivestsanother20%ofsharesRISK&OPP—IndonesiaBusinessPost63“SmokyAffair.EU’sCBAMisunfairinprinciple,”TheHinduBusinessline,3August2023,viahttps://www.thehindubusinessline.com/opinion/eus-cbam-is-unfair-in-principle/article67154996.ece64“DundeePreciousMetalssignsIPAforEcuadorcopper-goldproject,”MiningTechnology,21August2023viahttps://www.mining-technology.com/news/dundee-ipa-ecuador-copper/65“Deglobalisationor“slowbalisation?,”OxfordEconomicswebinar,5July202366“CleanEnergyInvestinginAmerica,”AmericanCleanPower,https://cleanpower.org/investing-in-america/,accessed17August202367“IRASubsidiesMightCreateEnergyMineralsSupplyShortages,”Forbes,17August2023,viahttps://www.forbes.com/sites/davidblackmon/2023/08/17/ira-subsidies-might-create-energy-minerals-supply-shortages/?sh=4cb70221379e68“TheCEOImperative:HowwillCEOsrespondtoanewrecessionreality?EYCEOoutlookpulsesurvey,”January2023viahttps://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/ceo/ey-ceo-outlook-pulse-survey-jan-2023-global-report.pdf?download69“TheGlobalRisksReport2023,”WorldEconomicForum,January2023viahttps://www3.weforum.org/docs/WEF_Global_Risks_Report_2023.pdf70“Cyberrisk:Achievesecuritythroughimplification,”RichardWatsononLinkedIn,8September2023,https://www.linkedin.com/feed/update/urn:li:activity:7105733635617562624/71“Miningcompaniesurgedtotakeactiontoboostcyberresilience,”CIMMagazine,2August2023,viahttps://magazine.cim.org/en/news/2023/mining-companies-urged-to-take-action-to-boost-cyber-resilience-en/72“Whatifthedifferencebetweenadversityandadvantageisaresilientboard?,”EY,26July2023,viahttps://www.ey.com/en_au/global-board-risk-survey/what-if-the-difference-between-adversity-and-advantage-is-a-resilient-board73“SECAdoptsRulesonCybersecurityRiskManagement,Strategy,Governance,andIncidentDisclosurebyPublicCompanies,”USSecuritiesandExchangeCommissionpressrelease,26July2023viahttps://www.sec.gov/news/press-release/2023-13974“Europeandemandfor‘green’copperincreasing;premiumsalreadybeingpaid:sources,”FastMarketsMB,17August2023,viaFactiva,accessed28August202375“HydroREDUXAlow-carbonaluminium:Pushingtheboundariesforhigh-quality,greenerlow-carbonaluminium,”Hydro,viahttps://www.hydro.com/en/aluminium/products/low-carbon-and-recycled-aluminium/low-carbon-aluminium/hydro-reduxa/accessedon21August202376“Valeforsakesvolumeforvalueinboosttoironore’snascentpricerecovery,”Mining.com,7December2022,viahttps://www.mining.com/web/vale-forsakes-volume-for-value-in-boost-to-iron-ores-nascent-price-recovery/77“ValeandSHSsignMOUtodevelopdecarbonizationsolutionsinsteelmaking,”Valepressreleases,10June2023,viahttps://www.vale.com/w/vale-and-shs-sign-mou-to-develop-decarbonization-solutions-in-steelmaking78“BHPandHatchcommencedesignstudyforanelectricsmeltingfurnacepilot,”BHPPressReleases,23March2023viahttps://www.bhp.com/news/media-centre/releases/2023/03/bhp-and-hatch-commence-design-study-for-an-electric-smelting-furnace-pilot79“FortescueexpectsinitiallicenseforBrazilgreenhydrogenprojectbySeptember,”Mining.com,23August2023viaFactiva,accessedon25August2023;Australia’sFortescueBuysPhoenixHydrogenHubinUSExpansionPush,”OPISnewsalerts,21July2023,viaFactiva,accessedon25August202380“Miningyearinreview:nationaloutlook2021,”MiningIndustryHumanResourcesCouncil,March2021,viahttps://mihr.ca/wp-content/uploads/2021/03/MIHR-National-Outlook-LMI-Report-2021-E-web.pdf81“Miningskillshortagespersistent,nottransitory,”Miningnews.net,14July2023,viahttps://www.miningnews.net/leadership/opinion/1456031/mining-skill-shortages-persistent-not-transitory82“Dozensof‘significant’Qldminingincidents,MEUcallsforurgentmeetingwithResourcesMinister,”ABCNews,21June2023,viahttps://www.abc.net.au/news/2023-06-21/significant-qld-mining-incidents-urgent-action-needed-union/10249913483“Laborproductivitydownin69manufacturingandminingindustriesin2022,”USBureauofLaborStatistics,8June2023,viahttps://stats.bls.gov/opub/ted/2023/labor-productivity-down-in-69-manufacturing-and-mining-industries-in-2022.htm84“Howdoyouharnessthepowerofpeopletodoubletransformationsuccess?”EY,20October2022,https://www.ey.com/en_gl/consulting/how-transformations-with-humans-at-the-center-can-double-your-success62Top10businessrisksandopportunitiesforminingandmetalsin2024HowEY’sGlobalMining&MetalsEYBuildingabetterworkingworldteamcanhelpyouEYexiststobuildabetterworkingworld,helpingThetransitiontoalow-carbonfuturedemandsthatminingtocreatelong-termvalueforclients,peopleandandmetalscompaniesreshapetheirroleinwhatwillbeanewsocietyandbuildtrustinthecapitalmarkets.energyworld.Bolderstrategiesthatembracedigitalinnovationcanhelpovercomeproductivityandcostpressures,createEnabledbydataandtechnology,diverseEYlong-termvalueandsecureastrongerLTO.EY’sGlobalMiningteamsinover150countriesprovidetrustthrough&Metalsteambringstogetherthebreadthofexperienceandassuranceandhelpclientsgrow,transformtalentneededtoapproachtheentiretransformationprocess.andoperate.Byconsideringfourkeypillarsofchange—structureandculture,customers,technology,andskillsandcapabilities—wecanhelpWorkingacrossassurance,consulting,law,youadaptfortodayandreaptheopportunitiesoftomorrow.strategy,taxandtransactions,EYteamsaskAndtogetherwecanbuildabetterworkingworld.betterquestionstofindnewanswersforthecomplexissuesfacingourworldtoday.EYcontactsJapanAndrewCowellEYreferstotheglobalorganization,andmayrefertooneormore,EYGlobalMining&andrew.cowell@jp.ey.comofthememberfirmsofErnst&YoungGlobalLimited,eachofwhichMetalsLeaderisaseparatelegalentity.Ernst&YoungGlobalLimited,aUKcompanyPaulMitchellIndialimitedbyguarantee,doesnotprovideservicestoclients.Informationpaul.mitchell@au.ey.comVikramMehtaabouthowEYcollectsandusespersonaldataandadescriptionofthevikram.mehta@srb.inrightsindividualshaveunderdataprotectionlegislationareavailableAfricaviaey.com/privacy.EYmemberfirmsdonotpracticelawwhereQuintinHobbsNordicsprohibitedbylocallaws.Formoreinformationaboutourorganization,quintin.hobbs@za.ey.comMagnusEllströmpleasevisitey.com.magnus.ellstrom@parthenon.AmericasandCanadaey.com©2023EYGMLimited.TheoYameogoAllRightsReserved.theo.yameogo@ca.ey.comOceaniaMichaelRundusEYGno.009424-23GblBrazilmichael.rundus@au.ey.comAfonsoSartorioBMCAgencyafonso.sartorio@br.ey.comUnitedKingdom&IrelandGA152151736LeeDownhamChileldownham@uk.ey.comEDNoneAliciaDominguezVarasalicia.dominguez@cl.ey.comUnitedStatesInlinewithEY’scommitmenttominimizeitsimpactontheenvironment,RonButlerthisdocumenthasbeenprintedonpaperwithahighrecycledcontent.ChinaandMongoliaronald.butler@ey.comLibbyZhongThismaterialhasbeenpreparedforgeneralinformationalpurposesonlyandisnotintendedlibby.zhong@cn.ey.comMetalstoberelieduponasaccounting,tax,legalorotherprofessionaladvice.PleaserefertoyourBobStalladvisorsforspecificadvice.France,Luxembourg,robert.stall@ey.comMaghreb,MENA,Francophoneey.com/miningmetalsSub-SaharianAfricaChristianMionchristian.mion@fr.ey.com
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