Each year, the mining industry begins to turn its attentions to the future and in particular, the specific business risks that are on the horizon.
Mining companies should focus on using digital to solve the most urgent business problem; improving productivity and margin across the value chain.
Balancing short-term shareholder returns with long term value can be both difficult but key.
Arguably the biggest risk that will only continue to grow. As companies become more and more data focused, through IOT and Big Data, ultimately, they become more reliant on these digital processes and this in turn breeds a culture of cyber-attacks. Having a clear digital road map will prove key, one that fully incorporates cyber threat programs to meet and head-off these risks.
4. Regulatory risk
The regulatory space in the mining industry is forever changing and with change comes challenge. More and more governments the world over are looking, demanding, far greater returns from the natural resources sectors in their jurisdictions. Ministries such as the Ministry of Mining in SA have been up in arms recently, seeking new and improved ways to govern the industry, which has been met with some resistance and this will only look to continue as we head into 2018.
5. Access to and optimization of energy
Mining and minerals-processing operations require a large quantity of electricity. Remote area mining operations have unique challenges in developing, maintaining and operating stand-alone power systems. To minimize fuel price volatility and ensure supply, companies are opting for a mix of energy sources – fossil fuels, hydroelectricity and renewable energy.