Mining companies are in a predicament. Poor brand perception, capped valuations, particularly in comparison to other, more fashionable sectors, threats from new entrants and the circular economy, as well as emerging demand disintermediation all contribute to an industry approaching a tipping point in long term value creation.
The mining & metals ecosystem represents the value chain from extraction and refining of raw materials to manufacturing of consumer products and end of life management. The sector is often seen as the ‘weak link’ in this value chain; an issue that is being amplified by demands for a greater the circular economy.
However, the mining sector continues to be crucial in providing the raw materials for much of society’s needs, and paradoxically, is a vital to society’s transition to a low carbon economy. This is often overlooked by stakeholders that rely on mined materials, and the associated economic benefits the sector creates.
In front of the sector are some fundamental challenges which have consequences that will amplify in impact in the short, medium and long term if not addressed. Two loom large in this regard.