The mining industry in recent years has transformed in many ways, mainly in an attempt to bypass volatility and disruption.
Disruption in the industry, of course, is still occurring: copper prices have shifted since the Coronavirus outbreak, which has now spread across the globe. Climate change is also a significant disruption in the mining sector, as is the increase in demands from investors.
But if mining companies learned to avoid similar issues before, is there hope for the current year? According to multinational professional services behemoth Deloitte, there is.
2020 Mining Trends: How to Succeed in the Future
On February 3, Deloitte released the 12th issue of its annual mining report. The company bases itself in London, United Kingdom; it is one of the “Big Four” accounting companies.
The record highlights Deloitte’s top 2020 mining trends. It also looks at matters that could transform the industry this year.
According to Andrew Swart, Deloitte Global mining and metals leader, mining companies that lay a foundation by establishing strategic goals will be the ones capable of navigating complex issues that may occur in the industry in 2020.
“To lead from the front, mining executives will need to go beyond just good managerial skills, to creating differentiated strategies, creating flexibility in their operating models, and inspiring their teams to accept change and commit to a path.”
Below are five of the 2020 mining trends outlined by Deloitte.
2020 Mining Trends #1: Update Core Technologies
The mining industry is no stranger to investments: many have led to companies acquiring new technology systems. And yet, even the most significant investment ages. We’re currently in the midst of a technological revolution, and living in a world where the cloud is a normal part of our vocabulary.
To stay at the front line, Deloitte suggests that companies should modernize their core technology. Digitalize data, use the cloud system to store data, and even implement cybersecurity systems to prevent issues like data breaches.
2020 Mining Trends #2: Think About Social Value Rather Than Just Regulation Compliance
It’s no secret that mining companies focus more on complying with regulations than embedding the values of the social investor in the organization. While that’s not a bad thing, we also live in a world that demands more transparency around social and environmental principles.
It’s also not news to say that throughout different circumstances over the years, the mining industry has lost a bit of investor trust and confidence. But in 2020, Deloitte suggests that mining companies can regain this trust by focusing on the social investor.
2020 Mining Trends #3: Prepare for the Next Downturn
Most people know that commodity prices fluctuate with economic trends. According to Deloitte, mining companies can do a few things to prepare for the next downturn.
Specifically, there are five plays a mining company can make: future-proof tomorrow, proceed with innovations, redesign projects instead of abandoning them, obtain resources, and examine existing business relations.
2020 Mining Trends #4: Improved Risk Management Practices
The mining industry has come to a point where it’s not efficient for companies to just rely on risk registers to name potential danger areas.
Companies, because of systematic issues like the “tick the box” mentality, are rethinking the ways that they can predict risks. Deloitte suggests that one of the more essential 2020 mining trends includes companies embracing better strategic risk management practices.
2020 Mining Trends #5: Reduce Greenhouse Gas Emissions
The path to decarbonization will not be an easy one for mining companies. Still, trying to reduce emissions is a major 2020 mining trend, according to Deloitte. And it makes sense: reducing greenhouse gas emissions will not only contribute to aiding the risks linked to climate change, but it also takes into consideration environmental values that stakeholders have shifted their attention to.
Focus on the social investor and their values, and companies will be surprised by the support they can fall back on when issues in the sector arrive.
The mining industry will be around for a long time, it’s just a matter of which companies will lead the frontline, and what future challenges will be. But as Deloitte suggests, mining companies should prepare for the worst ahead of time by doing things such as modernizing technological systems and focusing on the values of investors.
Are there any other mining trends you think will become big in 2020?
Featured image: PixaBay