LEADERSHIP

Disruption and volatility the 'new normal'

But are miners ready for it?

Staff reporter

This article is 5 years old. Images might not display.

The 11th annual Deloitte Tracking the Trends report has highlighted the challenges and opportunities for miners in the fourth industrial revolution.

Sanders said mining companies needed to broaden their strategic outlooks.

"In addition to producing at the lowest cost ore, mining companies need to consider a range of measures to make the most of this period of growth, including focus on the role of individual assets in the portfolio, re-imagining the path to value creation, finding balance between risk and return, and understanding how their company can differentiate itself in the eyes of its stakeholders," he said.

Key trends were around disruption, including artificial intelligence and analytics, digitisation of the supply chain (coupled with supply chain transparency), changing workforces, and the differing risk profile of the digital era.

Sanders said today's market realities were very different to those of the past.

 "Disruption and volatility has become the new normal. The pace of change is challenging theindustry's ability to adapt," he said.

"Australian mining companies must not only adapt to the disruption of industry from a technical viewpoint, but the disruption being brought about by changing community standards and attitudes towards mining."

Driving sustainable shared social outcomes was identified as a key trend, with companies urged to learn from the mistakes of the past when embarking on a new wave of capital projects.

Sanders pointed to the Royal Commission into banking in Australia, which brought renewed attention to the activities of large corporations.

"In this new world order, miners will not attract talent, investment or community support if they only focus on communicating the discrete value they currently bring to communities," he said.

"Miners need to go a step further by developing differentiated business models designed to drive long-term value for their organisations and for the Australian community."

Diversity and inclusion programs were seen as another trend, with Deloitte recommending greater collaboration between the mining sector and education institutions.

Other trends for 2019 included water shortages constraining metals supply.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.