Theo Yameogo
The metals and mineral sector is undergoing continual transformation.
Olga Makoyeva
Governments are waking up to the importance of metals and minerals for society, economic prosperity and defense. Global demand for critical minerals is accelerating.
Theo Yameogo
Yet in a world where demand is at an all-time high and supply is tighter than ever. Achieving this transformation is no small task.
Olga Makoyeva
From providing the metals and minerals we need to enabling advanced manufacturing,
Theo Yameogo
from ushering in artificial intelligence to operating autonomous mines,
Olga Makoyeva
the next chapter is poised to shape a bold new future for metals and minerals.
Theo Yameogo
As we do each year, EY surveyed metals and minerals leaders from across the sector to find out what's top of mind,
Olga Makoyeva
what strategic risks and uncertainties weigh on them.
What fuels their passion for mining,
Theo Yameogo
and where do they plan to focus their efforts this year?
Olga Makoyeva
Last year we brought you our top ten list from Deep Underground. This year, we're standing in a more of a blank canvas,
Theo Yameogo
a canvas ripe for AI transformation, much like the mining sector is in 2026.
Olga Makoyeva
So, with the help of our colleagues, let's walk you through each of today's most pressing risks
Theo Yameogo
and uncover some of the greatest opportunities. If organizations seize those opportunities.
the potential rewards are simply too significant to overlook.
Olga Makoyeva
And with that Theo kicks off this year's list. Starting off at number 10 - Changing Business Models.
Theo Yameogo
How can exploring new business models unearth opportunities that could transform your ambitions?
In a world where challenges abound mining companies are hard at work in the boardroom, reinventing business models to boost supply, resilience and competitive edge. And we’re seeing many ways this sector is succeeding.
Mining companies looking to rely less on overseas operations can find value at the source transforming trials into triumph.
Vertical integration is opening doors to the future, capturing more links in the value chain through domestic processing and refining.
Innovative joint ventures or district strategies allowing for shared costs, risks and resources while reducing capital outlay.
Consider the potential of collaborative mines that work together to ramp up production without redundant investment, driving efficiency and growth.
Circular and closed loop systems have become true game changers.
By reprocessing tailings and recycling waste, companies are not only lowering the environmental footprint, they are unlocking new supply that redefines sustainability.
To thrive in this rapidly evolving landscape companies can benefit from strategic partnership, policy incentives and clean technologies, all of which drive coveted long-term value.
Are you ready to embrace transformative business models to unlock sustainable value in your operations?
Before we send it over to rest of our colleagues, I'll throw it back to Olga to hear how last year’s, number two on our list has fallen to this year’s number 9, Sustainability.
Olga Makoyeva
Are you prepared to ride the sustainability pendulum, or will you jump off at the wrong time?
While nature positive commitments remain robust, we're witnessing a shift.
Sustainability initiatives are stalling. Environmental stewardship dropped from a top priority to ninth place this year.
While more than half of those surveyed are reassessing or delaying sustainability commitments in the wake of market volatility, forward thinking companies aren't waiting for change to come to them. Instead, they're actively innovating to tackle sustainability challenges head on, not just to be prepared, but because it's the right thing to do.
By harnessing the power of digital solutions and advanced analytics, they're enhancing transparency and tracking progress setting ambitious nature positive goals.
Innovative projects like biofuels initiatives and groundbreaking water free mining techniques are not just setting new industry standards. They're proving that sustainability can drive both environmental impact and economic value.
To truly thrive in this rapidly changing environment. Organizations must weave sustainability into the fabric of their operations. They should integrate it across the life cycle, from exploration to reclamation, while embedding ESG risks and opportunities in governance frameworks.
The need for sustainability will bring with it new challenges.
Is your business resilient enough to act quickly, innovate and embrace a bold vision for environmental stewardship?
A sustainable future is calling. Let's meet the climate challenge together.
Now it's time to bring in Stephanie with a slightly adapted category from last year. For number 8, we've added Digital to Innovation.
Stephanie Porter
As digital transformation accelerates, is your business ready to ride the tide of innovation to unlock a wave of new possibilities?
AI is taking center stage, with 21% of leaders preparing to invest 20% more budget in AI capabilities in the coming year. But while many are still exploring proofs of concept, the game changer lies in scalable solutions that seamlessly integrate into core operations.
What sets successful miners apart? They're the ones aligning digital initiatives with business goals.
Backing unified data and technology platforms with strong governance to deliver consistent, trustworthy solutions that enhance productivity, safety and sustainability.
Implementing AI isn't one and done. It's a journey built on robust governance frameworks. Yet fewer than one third of miners have taken this crucial step, presenting a golden opportunity to take the lead.
Looking ahead, AI is set to evolve from a supportive tool into an autonomous powerhouse. Imagine agentic AI systems that monitor processes, identify issues, and take action all on their own.
With humans managing risk through oversight and accountability, this shift can supercharge human capability and drive unprecedented value.
To truly unlock potential strong foundations and a skilled workforce will be key.
A staggering 69% of mining organizations report a pressing need for digital skills, highlighting the importance of cultivating a talent pipeline and breaking down silos.
Collaboration will be the key to driving innovation. By partnering with universities and industries beyond mining, companies can adopt innovative digital solutions to tackle critical challenges like water management, net zero emissions and biodiversity – head-on.
To thrive in this digital era miners must focus on initiatives that unlock value, establish common technology platforms and cultivate a vibrant culture of innovation.
With strong executive support ecosystem cross-collaboration and outside the sector partnerships the doorway to transformation opens ever wider.
So, as we stand on the brink of a digital future. Will your organization harness end-to-end innovation?
Not only to adapt, but thrive in an ever-evolving mining landscape?
Let's embrace the future of AI together. Next on the list, let's explore how world events will shape our direction. Here's Joanne with number 7, Geopolitics.
Jo‑Anne VanStrien
As geopolitical dynamics shift, are you prepared to navigate rising trade barriers, or will you simply be blocked out?
The demand for critical minerals is creating supply gaps with profound security and economic implications across the globe.
Accustomed to risk, the mining sector has adopted a pragmatic approach to volatility.
As governments ramp up tariffs and reciprocal export restrictions to protect national interest competition is heating up. National security concerns triggered U.S. tariffs on steel, aluminum and copper, impacting the availability of essential materials.
While countries like China are evolving export policies strategically to reflect domestic priorities shifting trade dynamics are reshaping geopolitical influence, lifting new partners up in the critical minerals supply chain.
Resource nationalism is on the rise in Africa and Latin America, where governments are tightening controls through higher taxes and royalties, while others are fast tracking investment to attract foreign capital.
With carbon pricing gaining traction as an economic lever, governments are reassessing supply chain resilience and sustainability obligations.
This evolving landscape presents both challenges and exciting strategic opportunities in mining.
A proactive approach to mitigating geopolitical risk will be critical. You'll want to actively monitor the geopolitical landscape and incorporate resulting insights into strategic frameworks for future horizons.
Diversifying export destinations and realigning trade routes, as seen with Australia's coal producers, can reduce dependence on any single buyer.
Building strong relationships with host governments can help align mining activities with geo strategic priorities, unlocking regulatory support and infrastructure investment to propel business forward.
How will your organization adapt to seize new opportunities?
Together, we can navigate this complex terrain and shape the future of mining rather than be shaped by it.
And with that, Antoine is here to take a closer look at one of the most critical forces when it comes to mining's future.
New on this year's list at number 6, Workforce.
Antoine Mindjimba
As the sector faces a skills crisis, is your business ready to tackle labor shortages that can derail productivity and project timelines?
With more than half of the US and Canadian mining workforce expected to retire in the next decade, and newer talent looking elsewhere, the sector faces a great tsunami, leaving critical roles unfilled.
It's time to change the narrative.
Mining isn't simply hard hats and heavy machinery. It's about innovation, sustainability and designing the digital future.
It's time to showcase exciting roles in AI, sustainability and community relations and attract fresh talent.
Inclusivity will be essential to success, valuing diversity as a driver of innovation and don't overlook untapped potential in indigenous communities.
Aligning on sustainability goals can create powerful opportunities.
The time has come to rethink training and education, taking an ecosystem approach.
When industry players collaborate training can be uplifted when new talent pipelines, upskilling employees and streamlining operations.
Safety is non-negotiable.
Embedding critical controls, prioritizing worker protection and giving your people exceptional learning and career pathways will be critical in showcasing metals and minerals as a thriving and evolving sector.
The future of mining is bright. Let's built a vibrant workforce together and lead the charge into a new era.
Now, for a category that consistently holds a mid-range position in our annual list, let's hear from Theresa. With number 5, License to Operate.
Theresa Sapara
As expectations soar, is your business ready to meet the challenge of responsible mining?
While metals and minerals organizations help build stronger communities where they operate negative incidents can quickly tarnish reputations and delay vital projects.
In recent years, mining activities have sparked hundreds of protests and conflicts annually, especially in emerging economies, stalling key projects and even resulting in revoked permits. This underscores the critical need for trust and open communication.
With increased scrutiny on sustainability and governance companies are navigating complex permitting processes shaped by regional objectives.
Building strong relationships with government stakeholders is essential to secure license to operate.
Engaging local communities in decision making is vital, especially with so many energy transition minerals located on or near indigenous lands.
Respecting rights and ensuring informed consent are crucial, but transparency is key.
Organizations must showcase their contributions to local economies, from job creation to investments in education and health care.
Collaborating with stakeholders is also imperative to restoring ecosystems. It can leave a positive legacy long after mines have closed.
By viewing license to operate as opportunity rather than obligation, a powerful force for development miners can build trust and create shared value.
As the mining landscape evolves, what are you doing to embrace responsible practices, strengthen license to operate and foster community trust?
Together, let's bring to light the community opportunities of responsible mining and the many benefits it leaves behind.
Next on the list, Jay digs deeper into what's happening as supply decreases. With number 4, Resource and Reserve Depletion.
Jay Patel
As the sector faces demand intensity, are you ready to innovate as depletion outpaces discovery?
The earth has finite resources and while innovation has turned many into reserves, we are living the reality of declining ore grades.
As demand skyrockets, a fresh approach will be necessary. We'll need a staggering $5.4 trillion in investment by 2035 to meet growing commodity demand, despite deficit budgets threatening to widen the supply gap.
With the mine life expectancy of 30 years and average annual depletion rates hovering around 3% there's a palpable need for innovative resource management strategies.
Declining ore grades are escalating costs and complicating operations.
Costs of developing new mines has soared. Finding ways to extend mine life can boost yields.
But with challenges can be exciting opportunities. Accelerating exploration in new regions through new technologies can help in discovering new deposits. Forming partnerships and joint ventures, can distribute costs and risk and unlock difficult deposits to sustain growth.
Recycling metals offers a scalable pathway to securing critical minerals. Urban mining of end-of-life electronics and batteries can supplement supply, especially for copper and lithium.
Exploring the potential of ultra deep mining is an exciting frontier, and innovations like nano robotics can help access deeper reserves while addressing ventilation challenges.
Resource and reserve depletion presents complicated challenges, but it can also drive innovation and investment.
As the landscape evolves how will your organization adapt as you secure resources for the future?
The time to innovate is now. Let's lead the charge together.
Speaking of securing resources, let's hear from Dean with what was last year's number one, but down slightly as this year's number 3, Capital.
Dean Braunsteiner
As capital currents shift, are you ready to drill back for growth?
For the past several years, companies have ramped up expenditures while returns have dipped.
Maintaining a growth mindset has been crucial in the face of supply gaps and favorable commodity prices.
Mergers and acquisitions are targeting future facing minerals.
Recent deals, particularly in copper, highlight how sector transactions while complex, continue to drive activity.
Miners are divesting lower growth or carbon intensive assets to focus on higher margin strategic minerals critical to the energy transition.
Organic growth continues to be a priority. Companies are emphasizing growth through the drill bit, aiming for reserve increases at lower costs. Yet discovery challenges remain, with fewer major fines in recent years.
New projects face rising capital costs and longer timelines. With a cost of capital at 8 to 10% management teams are being asked to justify investments and bridge supply gaps.
Access to capital is uneven, leading miners to blend public support with alternative financing models like royalty agreements and sustainable finance to fund critical projects.
Strategic partnerships and collaborations on district level projects is reducing risk and lowering costs, while optimizing resource development.
The use of AI and real time analytics can help build discipline around project execution and capital allocation enhancing capital and operating efficiency.
As the mining landscape evolves, what will it take to strike gold and secure the capital you need to deliver sustainable growth?
The time to innovate and invest is here. Let's lead the way together.
Now it's time for Iain to shift us from accessing funds to how you spend those funds. With Rising Costs and Productivity coming in at number 2.
Iain Thompson
As operational costs rise, is your productivity stepping up or stepping aside?
While higher commodity prices may boost revenue, they can also mask deeper productivity roadblocks.
Declining ore grades, skill shortages and changing regulatory demands require immediate action.
With prices expected to fall and the sector facing long standing skills crisis, mining companies are turning to cost control and productivity solutions to reduce expenses and enhance sustainability.
This includes optimizing energy use and embracing increasingly affordable renewables.
Higher royalties are intensifying cost pressures. In 2024, corporate tax and royalty rates climbed to almost 41% as governments sought to maximize revenues from high demand minerals. Additionally, escalating tariffs and disrupted supply chains are driving up logistics costs, creating inefficiencies that erode margins and hinder agility.
From siloed operations and asset reliability issues to skills gaps and other workforce challenges, unaddressed constraints demand a broad-based approach.
Integrated models and scenario planning teams enable organizations to adapt quickly to market changes, while advanced analytics and predictive maintenance help reduce downtime.
By keeping people at the center of improvements companies can foster sustainable gains supported by technology.
Accelerating the integration of renewable energies can help stabilize costs. Hybrid and off grid models, which are becoming standard in some regions, can mitigate supply risks to enhance energy security.
Proactively engaging with investors and building confidence can enhance trust and access to capital.
Will your organization drive productivity to cut through the clutter or just scrape the surface?
And finally, we've made it to the top of our list. Amazingly, it's a brand-new entrant for 2026. At number 1 here’s Gaby, with Operational Complexity.
Gaby Kazour
Amid increasing operational complexity, how can you innovate and improve reliability while simplifying?
Declining ore grades and deeper mines require specialized knowledge in earth sciences and logistics, compounding issues related to aging assets and unpredictable factors.
New on this year's list and important enough to take top billing among surveyed leaders mining teams are facing significant challenges around operational complexity.
Earning shortfalls can trigger share price dips, emphasizing the need for transparency and effective communication.
Reliable outputs are harder to achieve, making predictability crucial for investor confidence.
Relying on traditional mining methods is hindering progress. The time has come to rethink mine design by exploring alternatives like smaller trucks and in-pit crushing.
Bottlenecks from regulatory compliance, labour availability and logistic constraints are impacting production.
Declining grades, remote locations and skills shortages are creating risk, driving up costs and straining resources.
Processing plant capacity is often underestimated, and infrastructure bottlenecks are capping value.
Additionally, slipping maintenance discipline sacrifices long term gains for short term fixes.
If you haven't already, now's the time to reassess previously uneconomic waste.
The opportunities lie in establishing a robust management operating system that aligns planning, asset management and execution to supercharge operational efficiency.
Prioritizing end to end integration and deploying predictive tools can help anticipate disruption and maintain schedules. Because as the mining landscape evolves, every small enhancement or improvement adds up.
The time to innovate is now. Let's lead the way together.
Theo Yameogo
Being at the forefront of change means balancing both traditional and ever evolving risks. For those willing to embrace the challenge, a wealth of opportunities await innovators who can transform these challenges into catalysts for smarter, more resilient operations will be poised to thrive.
Olga Makoyeva
And as the sector shifts to lower grades and high expectations, productivity will be a game changer.
Leaders who use technology, collaboration and adaptive leadership will enhance resilience and position their businesses to succeed in a competitive, resource constrained future.
Theo Yameogo
2026 will not be the time to stand still. It's your time to reshape the sector,
Olga Makoyeva
to decide whether you want to stay firmly planted in the past, or leap forward and thrive as part of mining's bright future.
