2022-05-20-KPMG_Global-Global_Mining_Outlook_2022_27页_1mb

Summary of Global Mining Outlook 2022

Core Content

The Global Mining Outlook 2022 report highlights the evolving risk and opportunity landscape for the mining industry. It emphasizes the increasing importance of Environmental, Social, and Governance (ESG) factors, which have overtaken commodity price risk as the top concern for mining executives. The report also explores the role of technology transformation, talent challenges, and capital access in shaping the future of the industry.

Main Viewpoints

Shifts in the Risk Landscape

• The global pandemic has moved down from the top 10 risks, indicating that the industry is adapting to a "new normal."
• Commodity price risk remains a key concern, though price volatility is now a more pressing issue than the price itself.
• Environmental risks, community relations, and political instability are among the top risks, reflecting the broader influence of ESG and geopolitical factors.
• Supply chain issues and inflation are emerging as new concerns, impacting the cost of materials and operations.
• Talent crisis is now a top 10 risk globally and ranks as the seventh most significant for individual companies.

Confidence and Capital Access

• Confidence in growth is rising, with over 56% of executives more optimistic than a year ago.
• Access to capital has improved, with 37% of executives reporting better access to traditional sources of funding, though it remains a challenge for some.
• M&A is seen as a key growth strategy, with 37% of executives prioritizing it, up from 31% in 2021.
• The report suggests that organic growth still dominates, with 56% of respondents favoring it.
• New business models such as strategic partnerships, private equity, and public-private partnerships are gaining traction, especially among smaller companies.

ESG with Everything

• ESG is a major driver of disruption and transformation in the mining industry, with 72% of executives expecting significant changes over the next three years.
• Long-term success is increasingly tied to non-financial metrics, with 84% of executives believing that success must be measured beyond financial terms.
• ESG reporting is becoming more complex and demanding, with expectations for greater transparency and consistency.
• Regulatory and compliance changes are a growing concern, with 55% of executives disagreeing that ESG expectations are clearly understood across the market.

Technology Transformation

• Technology is viewed as a critical tool for addressing ESG challenges, with 87% of executives believing it plays a key role.
• Major technological innovation is expected to disrupt the industry, with 46% of executives anticipating this over the next three years.
• Technology adoption is seen as an opportunity rather than a threat, with 83% of executives believing it will be beneficial.
• Innovative applications such as drones, sensors, and 5G networks are already helping mining companies improve efficiency and safety.

Talent Challenge

• Attracting and retaining talent is a growing challenge, especially for specialized roles in technology and ESG.
• The industry needs a new wave of diverse and skilled professionals, including data analysts, environmental scientists, and heritage experts.
• Talent programs and mobility schemes are being used to attract individuals globally.
• Employee engagement and ESG initiatives are becoming central to attracting the right talent.

Key Information

Regional Insights

• Australia:

  • Top risks: Commodity price risk, decarbonizing the value chain, talent crisis, community relations and social license to operate.
  • Highest confidence in the future (75%), and the most positive outlook on capital access (44%).

• Canada:

  • Top risks: Community relations and social license to operate, ability to access and replace reserves, environmental risks.
  • 62% of executives are confident in the future, with moderate capital access improvements (37%).

• Latin America:

  • Top risks: Environmental risks, community relations, commodity price risk.
  • Highest agreement on the need for consolidation (80%), and the most support for new business models (76%).

• United States:

  • Top risks: Commodity price risk, environmental risks, political instability, regulatory changes.
  • 58% of executives are confident in the future, with lower capital access improvements (27%).

Industry Trends

• ESG is reshaping corporate priorities and is a key factor in attracting new talent.
• Consolidation is being considered as a way to manage costs and risks, especially in Latin America.
• Technology is becoming a central component of ESG strategies and operational efficiency.
• Capital access is improving overall, but still a challenge for some companies.
• M&A and new business models are gaining importance as growth strategies.

Conclusion

The mining industry is undergoing a transformation driven by ESG, technology, and talent challenges. While commodity prices remain a key factor, the focus is shifting towards sustainability, community engagement, and long-term strategic planning. The report underscores the need for transparency, innovation, and adaptation to navigate the evolving risk landscape and seize new opportunities.