Key issues facing the mining sector


Mining spotlight on: Key issues facing the mining sector

Issue 3 – Remaking mining

A series of short articles focused on key issues facing the mining sector

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Remaking mining

Exploring the innovation imperative

Commodities may be broadly moving back into global market balance and even surplus, but the mining sector’s challenges are far from over. In a world of deeper mines, more complex ore bodies, rising energy costs, social and geopolitical risks, infrastructure shortages and resource nationalism, mining companies remain under exceptional pressure to control costs, heighten efficiency and improve safety performance.

Although there are no easy solutions, it is becoming increasingly apparent that technology will play a growing role in the mine of the future.

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Commodity market imbalances

Commodity market imbalances: Strategies for managing volatility

Strong commodity demand pushes up prices which, in turn, impels mining companies to ramp up production. When prices drop however, prices plummet, supplies build up and marginal projects become considerably less attractive.

Whilst mining companies cannot hope to consistently predict commodity demand or price movements, there are some strategies they can use to manage market volatility:

  • Strengthen portfolio management
  • Link value to price
  • Integrate production and trading operations

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Sliding productivity and spiraling costs

Sliding productivity and spiraling costs: Strategies for reclaiming efficiency in the mining sector

This first publication in the series examines what’s pushing productivity down and costs up, and provides mining organizations with some strategies they can consider to buck the trend, including:

  • Budget and risk management
  • Workforce planning
  • Operational excellence
  • Technology improvements

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