Metals in demand: the strategic moves of gold, silver and copper producers for competitive advantage

As the cost of production rises globally and the availability of new projects dwindle, precious and base metals companies are looking to enhance long-term competitiveness by investing in sustainable practices, adopting advanced technologies and optimizing supply chains. However, the path to that ultimate goal can vary by subsector.
 

Gold companies are applying cost-effective and responsible operational practices, along with proactive efforts towards emerging growth opportunities. Silver companies, on the other hand, are looking to gain an advantage by relying on the adoption of responsible mining practices coupled with innovative extraction processes and digital technologies. Meanwhile copper miners – gold and silver’s base metal ‘cousin’ – are seizing growth opportunities by prioritizing exploration, expansion and sustainable practices.
 

This heightened need for innovation comes as the mining industry faces a critical challenge. Over the next 30 years, the industry must mine more mineral ores than humans have mined over the past 70,000 years to meet demand for minerals crucial to the energy transition.
 

Regardless of the path chosen, success depends on a disciplined approach to cost management and an emphasis on circular economy.
 

Gold’s evolution through innovation

As gold prices rise to record levels – up more than 20% so far this year – and new discoveries wane, gold miners are increasingly integrating sustainable technologies into their operations to unlock long-term value from challenging deposits. Adopting these advanced technologies across the gold mining value chain aims to drive cost reduction and improve operational effectiveness.
 

Crucially, establishing a sustainable profile stands to boost gold’s attractiveness as an investment option, reinforcing its appeal as a key asset for investors. This push toward responsible mining has also led to the development of standards within the industry. Such a unified stance on responsible mining is perceived by investors as a positive step to enhancing the subsector’s transparency and credibility.
 

One such effort includes the Consolidated Mining Standard Initiative (CMSI) which seeks to streamline the existing mining standards and foster improvement of ESG practices throughout the complete mining lifecycle. The initiative consolidates four established standards: The Copper Mark, the Mining Association of Canada’s Towards Sustainable Mining (TSM), the World Gold Council’s Responsible Gold Mining Principles and the International Council on Mining and Metals’ (ICMM) Mining Principles.
 

Indeed, this reinvigorated focus on environmental stewardship and sustainability is translating into an increased push to explore responsible and economically viable gold recovery processes. Companies like Canada-based Barrick Mining Corp. are teaming with research institutes to develop cyanide-free gold processing methods and minimize reliance on the chemical, used in more than 90% of global gold production, in a bid to extract more value from resources while minimizing environmental impact.
 

Traditional exploration processes remain a lingering challenge for gold miners as less than 0.1% of prospected sites become productive gold mines, according to the World Gold Council. Therefore, gold companies are looking to adopt innovative exploration technologies to help unlock previously inaccessible value from remote deposits, reduce exploration risks and align with broader sustainability goals.
 

Encapsulating these efforts is Gold Fields Ltd applying Fleet Space Technologies’ Exosphere technology at its remote Salares Norte mine in Chile; the company is using a satellite network and smart seismic sensors to generate 3D subsurface imaging and provide actionable insights resulting in minimal environmental impact.
 

But gold companies are also eyeing non-traditional sources for new extraction opportunities, including recovering precious metals from electronic waste. Recycling one (1) million mobile phones is expected to recover approximately 34 kg of gold, enhancing the current contribution of approximately 10% of industrial gold recycling to the overall recycled supply.
 

Silver demand spurring smart mining

Silver prices have also soared. With 2024 prices averaging 44% higher than the past decade, global demand for the shiny metal continues its uptick, helped by increased industrial usage and a rise in safe haven buying amid geopolitical tensions. In 2024 alone, global silver demand was up some 2% to 1,219 Moz.
 

But as supply pressures tighten on growing demand, silver producers are focusing on boosting production with sustainability in mind. Indeed, silver companies are increasingly considering responsible mining practices, innovation extraction processes and digital technologies as long-term competitiveness drivers.
 

Hecla Mining Co., for instance, is integrating new extraction methods to improve operational efficiency. Its implementation of the Underhand Closed Bench (UCB) method, which uses advanced drilling and blasting techniques at its Lucky Friday operation in Idaho, has resulted in improved control of fault-slip seismic events. This has strengthened safety while producing more silver in seven months than the mine typically produced in one year.
 

The adoption of digital technology and geophysical methods are also supporting reduced investment risks and speeding up exploration in the sector, creating sustained value.
 

Aya Gold & Silver Inc. completed its exploration program at its Zgounder silver mine and the Boumadine Project in Morocco, using high-resolution spectral imagery and geophysics technology. Meanwhile, other companies are deploying autonomous vehicles to enhance safety and slash costs.
 

Mirroring their gold mining counterparts, silver miners are adopting sustainable mining practices as the push for responsible resource extraction grows. With a focus on minimizing environmental impact, addressing social and community challenges and ensuring long-term viability of the sector, seven of the top 10 silver mining companies adopted the Silver Institute’s Responsible Mining Practices. Additionally, the CMSI’s unified standard across various sectors is expected to enhance the transparency and credibility of associated silver mined.
 

Silver mining companies are also prioritizing decarbonization by integrating renewable energy sources such as solar and wind, along with energy storage systems and alternative fuels. To that end, in a bid to reduce carbon emission by up to 25% at its San Dimas mine in Durango, Mexico, First Majestic Silver Corp. is looking to Liquified Natural Gas (LNG) in place of diesel generators used for on-site backup power.
 

Bridging the copper supply gap

Copper companies are facing an uphill battle. While exploration spending reached a decade high of US$3.2b in 2024, the sector is wrestling with long-term supply issues due to a lack of new discoveries, longer development times, declining ore quality and skyrocketing discovery costs that are now four times higher than 20 years ago.
 

Copper discoveries have declined from 15 in 2007 to a single discovery in 2021, with no new discoveries recorded in 2022 or 2023.
 

To combat this, copper companies are boosting production, adopting sustainability and leveraging digital innovations while embracing circular economy principles to drive long-term value and bridge the expected supply gap.
 

To bolster exploration success, companies are seeking out cutting-edge digital technologies, geophysical techniques and real-time data capture to de-risk investment and accelerate discovery.
 

Through artificial intelligence and satellite technology for instance, groups like Eagle Mountain Mining at its Silver Mountain project are probing deeper into the earth’s surface to identify untapped mineral systems.
 

The application of advanced mineral processing is also optimizing recovery and enhancing productivity with leaching technology proving particularly beneficial in recovering metals from lower ores. Copper companies are achieving recovery rates of up to 85% by using bioleaching processes to extract copper from primary sulphide. Reprocessing tailings and the implementation of closed-loop systems are also gaining traction, enabling the extraction of valuable resources while minimizing waste and emissions.
 

Copper miners are also working with what they already have by integrating recycling into their operating models. With copper boasting one of the highest recycling rates of all metals – recycled copper accounted for 32% (8.7 mts per year) of the world’s copper supply in 2023 – companies are optimizing the recycling potential of electronic waste. To this end, miners are increasingly working with cleantech companies to give new life to the mineral from recycled scrap to create more sustainable copper supplies.
 

Path to competitive advantage

Gold, silver and copper mining companies are at a critical juncture where long-term competitiveness hinges on their ability to innovate, adopt sustainable practices and optimize operations amid rising costs and limited new project opportunities. While each subsector is forging its own path, whether through advanced technologies, responsible mining standards, or enhanced recycling efforts, all share a common goal of striving to meet the growing global demand for essential metals while minimizing environmental impact and maximizing value.
 

To reshape the future, producers of these sub-sectors must act with urgency, reimagine business models, embrace innovation and build strategic partnerships. Companies leading with agility and collaboration will unlock new value, gain a competitive advantage and position themselves to meet growing demand.

Summary

Gold, silver and copper producers are navigating rising costs and limited new deposits by embracing innovation and sustainability. From advanced exploration technologies and responsible mining standards to recycling and circular economy models, each subsector is charting its own path to meet surging demand for transition metals while reducing environmental impact.