Deloitte Global’s “Tracking the Trends” report, now in its 16th edition, emerges as a beacon for the global mining and metals industries amid a backdrop of significant challenges. These challenges range from global uncertainty and supply disruption to the ever-increasing demands of Environmental, Social, and Governance (ESG) requirements. The report, leveraging the insights of industry professionals, offers a comprehensive suite of practical solutions designed to help companies navigate these obstacles and capitalize on new opportunities within the sector.
The landscape of the mining and metals industries in 2023 has been marked by extraordinary levels of uncertainty, encompassing economic, geopolitical, and environmental dimensions. The ongoing Russia-Ukraine conflict, for instance, has significantly disrupted commodity markets, affecting global supplies of various resources. The situation is further complicated by tensions in the Middle East, which pose additional security implications for raw material supply chains. These factors, combined with the global push to secure critical resource supplies—particularly in mineral-rich central Africa—underscore the pressing need for the industry to adopt agile strategies and engage in effective scenario planning.
One of the pivotal trends highlighted in the report is the industry’s evolving approach to dealmaking for future-focused growth. This shift is largely driven by the broader energy evolution, prompting companies to either pursue mergers and acquisitions for strategic expansion or focus on organic growth avenues, such as Rio Tinto’s investment in tellurium production for solar panels. Notably, the acquisition of OZ Minerals by BHP for its nickel and copper assets exemplifies the strategic realignment towards securing critical minerals essential for sustainable development and achieving net-zero emissions targets.
Moreover, the report underscores the importance of transitioning towards net zero, with mining and metals companies playing a critical role in supporting sustainable infrastructure and low-carbon technologies. Deloitte advises on practical steps companies can take to establish climate leadership, including the development of credible transition action plans (CTAPs) that align with evolving regulatory frameworks and foster collaboration across ecosystems. These strategies are vital for the sector to navigate the challenges posed by climate change and to leverage the economic opportunities that coordinated mitigation efforts could yield.
Deloitte’s insights also stress the significance of rethinking mineral and metal investments in light of the increasing focus on ESG considerations. With the U.S. Critical Minerals list detailing 50 elements crucial for the future, there’s a race to secure access to these resources. The surge in mergers and acquisitions activity, particularly around critical metals, is driven by the dual forces of demand and supply risks. Governments are playing an increasingly pivotal role in facilitating these investments through funding initiatives like the U.S. Inflation Reduction Act and the European Raw Materials Fund, which aim to expedite project development and commercialization.
According to a report by Mining Review, the “Tracking the Trends” report serves not only as a roadmap for navigating the immediate challenges facing the mining and metals industries but also as a strategic guide for futureproofing businesses against the backdrop of global economic and environmental shifts. By highlighting the interconnection between environmental, social, and economic considerations, Deloitte Global provides a forward-looking perspective that encourages companies to think beyond conventional paradigms and embrace the opportunities that lie ahead.
In essence, Deloitte’s latest edition of “Tracking the Trends” offers the mining and metals sector a comprehensive analysis and actionable strategies to tackle the complexities of today’s global landscape. It emphasizes the need for resilience, innovation, and sustainability as companies strive to meet the demands of an ever-changing world, ensuring they are well-positioned for growth and success in the years to come.
