Posted by Nicolas Maennling on April 16, 2019
The mining and metals industry is recovering from one of its most difficult periods in decades. Market volatility and a downturn in commodity prices have created a new normal where cost cuts, automation and operational efficiency are vitally important.
Meanwhile, industry-specific issues related to regulation, geopolitical risk, legal limits on natural resource use, shareholder activism and public scrutiny have created additional challenges. While we believe that demand for minerals will grow in the coming years, there are several trends that will determine which types of mining companies will prevail in the future. We have identified the following seven drivers that we believe will shape the mining and metals sector.
1. Transition to a low-carbon economy
Demand for most minerals is projected to be high in order to achieve the energy transition. While fossil fuels have helped to improve living standards around the world since the 18th century, their associated greenhouse gas emissions have led to global warming. In order to avoid reaching temperatures that will have catastrophic consequences for the planet, countries must decarbonize their energy systems by the middle of this century….