For miners, KPMG can’t remember a more challenging or exciting time. The landscape continues to grow increasingly complex as issues and opportunities emerge or change in their urgency. For more than 10 years, KPMG's Global Mining Survey has provided the shared insights of leaders in the sector from the major mining regions of the world as we analyse the feedback from across the globe.
The 2020 Mining Risk Survey Report offers deep insights into the views of mining leaders from around the world and the significant risks, challenges, threats, and opportunities ahead for us all.
Commodity prices and permitting risk once again occupy the number 1 and number 2 risks, respectively. Along with the access to capital, community relations and social license to operate these were the top four risks identified by respondents for the second year in a row.
Despite this consistency there is a clear message from 75 percent of respondents identifying the need for the industry to better measure and report on success factors beyond financial results, based on the recognition of a broader range of stakeholders. We have seen a notable shift in focus by the industry to a higher regard for holistic measures reflecting ESG-related risks. Environmental risks jumped 3 spots from number 10 to number 7, and tailing management made a debut in the top 10 risks. At the same time, financial risks such as controlling capital and operating costs declined in relative ranking as compared to previous years.
Not surprisingly, we continue to see a trend of increasing regard for disruptive technology as an opportunity, as opposed to a threat, with companies identifying technology disruption as the number 2 strategy for achieving growth, up from the number 4 spot. Equally relevant is the relative decline in technology/innovation as a “risk” year over year. While the top growth strategy identified by companies continues to be organic growth, one of the strongest messages from the survey is that companies are increasingly seeing technology as a key enabler to executing on growth strategy.
According to the 16 countries surveyed:
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