The mining industry faces challenges

For the past 12 years, KPMG has surveyed global risks and opportunities in the mining sector. After commodity risk topped the list of respondents each year, climate-related risks, environmental risks and regulations have become number one in 2022. In the 2022 Global Mining Outlook, commodity price risk was relegated to second place for the first time. In third place are social license to operate and community relations. Seventy-two percent of executives surveyed see major changes in the industry over the next three years due to environment social governance (ESG). Environment, social and governance are important, not just success in the financial sense of the term, but a closer look at the stakeholders involved.

The survey was conducted before Russia’s invasion. And so, the risks of political instability and nationalization came in fourth place. The global trade conflict made it to fifth place. A new risk was also added this year, the so-called talent crisis. Technical skills to cope with climate change and expertise in markets are particularly in demand, he said. So, mining companies increasingly need to consider challenges that affect the environment and social issues. Australians saw commodity prices as the number one risk, while Canadians see community relations and social license to operate as the biggest risk. The good news is that the mining industry is well capitalized and well funded to address issues.

One mining company that is very concerned about ESG is Sibanye-Stillwater – https://www.youtube.com/watch?v=Eq9yX508m9s . It continuously pursues a sustainability strategy (path to CO2 neutrality, human rights, etc.). Sibanye-Stillwater is a major palladium, platinum and gold producer and is also involved in battery metals. The area of operations is in South Africa, Zimbabwe and the USA.

Tier One Silver – https://www.youtube.com/watch?v=ehXXANrBHsQ -, for example, also strives for safe, socially and environmentally sustainable working practices. The company is active in Peru (Curibaya project) in the field of silver.

Latest corporate information and press releases from Tier One Silver (- https://www.resource-capital.ch/en/companies/tier-one-silver-inc/ -) and Sibanye-Stillwater (- https://www.resource-capital.ch/en/companies/sibanye-stillwater-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 – 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/