Keep calm and carry on mining
Professional services firm Deloitte published its Tracking the trends 2015 report. Here’s a synopsis of what they see for this year.
1. Back to basics
To increase efficiency and productivity, mining companies need to reevaluate their operational processes and embrace new cultural norms.
2. Innovation is the new key to survival
In order to apply innovative methods directly into the way they work, mining companies need to start by embedding innovation into corporate DNA; thinking big, testing small and scaling fast; leveraging emerging technologies; becoming part of an innovation ecosystem; and preparing for new operational realities.
3. The new energy paradigm
Mining companies need to consider a new approach to energy use, including incorporating unconventional fossil fuels and obtaining stakeholder buy-in to develop renewable energy facilities.
4. Dwindling project pipelines
To prevent potential future supply constraints, mining companies need to find a better balance between meeting short-term investor and analyst expectations and maintaining project pipelines by creating strategic partnerships and shifting from global to local production.
5. Financing’s great disappearing act
Junior mining companies may need to woo foreign investors, pool their resources, explore alternative financing options and position themselves for private equity to unearth alternative financing solutions.
6. Survival of the juniors
To mitigate the issue of shifting ownership patterns, juniors should get their assets in order and consider options, from partnership and joint ventures to sale and consolidation.
7. Seeking new skillsets
Companies embracing the innovation imperative need to commit to diversity, explore new talent management systems, recruit talent in high demand better and invest in more targeted training.
8. Riding the waves of geopolitical uncertainty
Response strategies for negotiating geopolitical uncertainty include lobbying for greater policy clarity, leveraging mining associations to influence government policy, becoming more risk intelligent and planning for myriad scenarios.
9. Rising stakeholder engagement stakes
Companies need to learn to communicate in new ways, work with mining associations to negotiate with local communities, improve their corporate giving practices and consult with community stakeholders to plan mine closures.
10. Engaging with government
Some strategies to counter regulatory uncertainty include working to build better government relationships, becoming more vocal in industry association and through social media, measuring social impact, and helping to set the policy agenda.