Top 10 Risks and Opportunities for the Mining Sector in 2021
While the COVID-19 outbreak has been a truly disruptive, global event, the mining and metals sector has managed to weather its impact extremely well, thanks in no small part to the governance and culture that was already in place throughout the sector.
The factors that have allowed the sector to formulate an effective response to the pandemic are:
- The safety-first culture that prioritised people’s health and well-being
- Excellent governance that enabled agile change management with the right checks and balances in place
- Collaboration with governments, the sector, health experts and communities to ensure leading practices were followed
- Changes made on expert advice that were embedded across operations to ensure a consistent, effective response to the pandemic
As a result of these measures, several mines have remained operational and productive during the pandemic, despite having less people on site. However, business continuity has come at a cost due to the added expenses of new processes, procedures, protocols, health testing equipment and support for the workforce.
Therefore, it is clear to see that as we move into 2021, COVID-19 will continue to impact all industries, including mining and metals. While some markets are beginning to show a semblance of economic recovery, others – particularly those in significant mining geographies – remain heavily affected by the virus.
As a result, an EY report has listed 10 business risks and opportunities for the sector in the coming year: