[ET Net News Agency, 30 January 2019] As the industry shifts into a new stage of
growth, miners must take an ever-expanding range of issues - from stakeholder engagement,
to talent, geographic risk, and dwindling access to key input commodities - into account
when setting corporate strategy, according to Deloitte Global's 11th annual mining report
released today.
Leveraging analytics to manage risk and optimize the supply chain, going beyond
compliance to positively impact communities and society at large, and transforming
perceptions of the industry to attract and retain a diverse workforce are among key focus
areas, it added.
"Miners will need to go a step further and articulate what they stand for by developing
differentiated business models designed to drive long-term value." said Phil Hopwood,
Deloitte Global Mining & Metals leader.
"The mining sector is at the earliest stages of building a digital supply network (DSN).
The organizations that determine how to interlink their supply chains, from pit-to-port,
can do more than break down operational silos. They can also gain the end-to-end
visibility needed to enhance their asset utilization, operational efficiency, and
productivity - realizing hard dollar savings as a result." Kevin Xu, Deloitte China Mining
& Metals sector leader, also emphasized.
In the past, mining companies typically anchored their strategic planning around
producing the highest volumes of ore at the lowest possible cost. This led to the drive to
build ever-larger mines in pursuit of superior returns, underpinned by the expectation of
constantly-rising commodity prices.
"Mining companies need to broaden their strategic outlooks. When done well, strategic
planning cycles consider a range of issues in addition to producing at lowest cost,
including the role of individual assets in the portfolio, the path to value creation, the
balance between risk and return, and how the company is differentiating itself in the eyes
of its stakeholders," said Hopwood.
"These key choices should ultimately drive a mining company's investment allocation
strategy, the partnerships it creates, and the kinds of capabilities it decides to build."
he added.
The report also identified additional trends like (1) The frontier of analytics and
artificial intelligence, (2) Managing risk in the digital era, (3) Driving sustainable
shared social outcomes, (4) Exploring the water-energy nexus, (5) Decoding capital
projects, (6) Reimagining work, workers, and the workplace, (7) Operationalizing diversity
and inclusion programs, and (8) Demanding provenance. (KL)