Tracking the trends 2018

Bringing digital to life

Using data-driven insights to drive value

Courageous businesses use thorough, rational analysis grounded in data to develop new ideas, investments and innovations both adjacent and transformational to current business. They use analysis to see opportunities where others see challenges or unchangeable customs.

Overcoming innovation barriers

Charting a path towards innovation maturity

Mining executives understand that innovation is necessary for the industry to transform. This isn't confined to just technological innovation; it includes the adoption of more innovative approaches to engaging with stakeholders, re-envisioning the future of work, and identifying the commodities that will be in greatest demand going forward. Despite the imperative, however, industry players cannot yet be considered truly mature innovators partly, because mining companies continue to face a number of systemic barriers to innovation.

The future of work

Re-envisioning talent management in the digital age

As the digital mine becomes a reality, the nature of work is poised to change dramatically—at both the mine site and in the back office. Technologies like robotic process automation (RPA) and artificial intelligence (AI) will enable core mining activities to be performed from locations that can support a more diverse and inclusive workforce.

The image of mining

Changing public, employee, and customer perceptions

Although the sector has taken significant strides to improve the image of mining in recent years, it is still operating under a legacy of weak environmental practices, fractious community relations, stock price underperformance relative to other sectors, and a historic lack of workforce diversity. In a world increasingly influenced by 24x7 news cycles and opinions aired in the court of social media, this type of backlash is only bound to spiral. This mandates mining companies to take proactive steps to address—and change—their reputations.

Transforming stakeholder relationships

The growing need to achieve measurable social outcomes

To expand local employment opportunities, increase tax revenues, and meet spiraling community demands for improved infrastructure and greater environmental protection, many governments of resource-rich countries continue to put pressure on the mining industry. As a result, the industry is increasingly coming to realize that its traditional approaches to community and government relations must change.

Water management

Finding sustainable solutions to a pressing issue

With each passing year, water has become a more critical issue for the mining sector. As ore grades decline, more water is needed to extract the same amount of ore, pushing up water requirements in the industry. As concerns around water availability grow, communities and environmental groups are turning the spotlight on water-intensive industries, including mining. In light of these challenges, mining companies must enhance their approach to water management.

Changing shareholder expectations

Investors demand greater accountability

With commodity prices on the uptick, it's no surprise that shareholders and institutional investors are carefully monitoring the sector to assess if companies are in danger. In some cases, shareholders are making it clear that they expect a return of value as corporate fortunes rise, and in other cases they are becoming more vocal by engaging in activism in a bid to influence operational decisions. As shareholder expectations spiral, mining companies have begun focusing on re—establishing their credibility in the investor community and with analysts.

Reserve replacement woes

Finding a balance between caution and courage

Mining companies are no strangers to the boom and bust cycles typically associated with shifting commodity supply and demand. Thanks to intense cost cutting, a focus on fundamentals, and a commitment to portfolio simplification, the fortunes of many mining companies are on the rebound. Yet this tentative turnaround cannot remedy the supply constraints that currently plague the industry. Mining companies will need to find a more agile way of replacing reserves—one that allows them to engage in exploration and development without sinking in large amounts of capital for long periods of time.

Reserve replacement woes

Finding a balance between caution and courage

Mining companies must embrace the full power of digitization and innovation and attract a new brand of talent, to transition to the mine of the future. Heightened scrutiny from governments, communities, investors, and other key stakeholders mandates new forms of cooperation and collaboration. To repair broken relationships and tarnished reputations, miners must also explore ways to operate more sustainably. These drivers and more make it clear that companies will need to make substantive cultural shifts.

Commodities of the future

Predicting tomorrow's disruptors

Given how inextricably socioeconomic trends link to commodity demand, mining executives have long had to double as futurists. To assess which commodities to invest in, and which to divest, miners need to keep their fingers on the pulse of fluctuating consumer demands, global demographic and economic shifts, and the effects of environmental change.

Blogs

What's in store for miners in 2018? Explore our blog series for further insights into some of the key trends for 2018.

Video

Phil Hopwood, Deloitte's Global Mining Leader, talks about the top 10 trends on the horizon for miners in 2018.