Theo Yameogo
Over the past decade, metals and minerals have undergone massive changes, unlike anything we’ve seen.
Theresa Sapara
As society commits to a low-carbon and more sustainable future, our sector is embarking on a new era of transformation.
Theo Yameogo
And has an opportunity to rebrand itself as a key enabler of progress that will drive solutions to global challenges.
Theresa Sapara
And shape a more sustainable future for generations.
Theo Yameogo
Each year, we survey senior metals and minerals leaders of major organizations, to find out what’s top of mind.
And this year’s top 10 risks and opportunities revealed some interesting developments, including a couple of new entrants.
Theresa Sapara
With the help of our EY colleagues, Theo and I will walk you through today’s most pressing risks
and explore opportunities we can seize as we prepare for tomorrow.
Let’s begin with Olga Makoyeva, my EY Americas Co-Leader of the Metals and Mining Centre of Excellence.
She kicks the list off at number 10, Innovation.
Olga Makoyeva
Here’s a question. Are you building solutions in a vacuum? Or are you openly exchanging ideas with others?
For mining to be both sustainable and cost effective in the future, bold innovation in exploration and extraction is critical.
But competing budgets often means sticking with tried and tested methods. This can result in delivering the same results, or even less than expected.
However, tried and true low-risk adoptions like optimizing energy sources, streamlining supply chains, or refining business models can all create tangible value.
But the biggest opportunities often come from an exchange of ideas. And that means collaboration is the key to driving innovation.
We know collaboration isn’t always easy. Sometimes, stakeholders’ business objectives aren’t aligned. Opportunities may be missed from limited awareness, or an unwillingness to open doors to a competitor can put the brakes on progress.
However, we’re seeing more metals and minerals companies and associations working together, along with government, community, and thinktanks, to address growing challenges.
And the good news? These collaboration efforts are delivering results.
Committing to innovation means fostering a culture of transparency and trust, backed by the courage to embrace new approaches.
So, are you ready to break away from traditional methods and embrace bold, collaborative innovations?
Now let’s hear from Jay Patel, EY Americas Metals & Mining Strategy and Transactions Leader for number 9, Changing Business Models.
Jay Patel
Are you unlocking the full potential of your value chain, or is it time to turn over some rocks and uncover value in unexpected places?
Metals and minerals companies are finding real opportunities where others see challenges by investing in sustainable practices and building circular economies.
Take recycling for instance, turning waste into revenue and seizing untapped value. Or transforming material sourcing to accelerate decarbonization and lead the charge toward a greener future.
By rethinking their business models, companies are enhancing their value chain in two powerful ways.
Horizontally, by fostering collaboration to build ecosystems that address sustainability challenges.
And vertically, by forming partnerships to co-develop advanced materials and investing in clean energy solutions in the green value chain.
Some companies are changing the game by expanding beyond mining into areas like advanced processing and downstream applications, creating more value across the entire supply chain.
Other metals and minerals companies are adopting a “mining as a service” mindset, delivering customized materials for specific customer needs, expanding into recycling, and investing in community-centred models where they operate.
Together, these approaches don’t just drive profits; they create lasting value for companies, communities, and the planet.
So, are you ready to dig deeper and revolutionize your value chain to uncover hidden opportunities that can redefine your business?
Next, we have a brand-new addition to the list this year. Let’s hear from Jo-Anne VanStrien, Tax Partner and Mobility Advisory Services Lead at EY Canada with number 8, New Projects.
Jo-Anne VanStrien
Are you ready to bridge today’s supply gaps and meet the growing demand for metals and minerals in a future driven by electrification?
The energy transition is fueling exponential demand for resources. We’re mining more ore today than we have in thousands of years, yet the roadblocks to meeting global demand are significant.
Lengthy lead times bringing a mine into production can take decades, with permitting delays and regulatory hurdles adding years.
Mounting taxes and royalties can demand upwards of 40% from mining revenues.
New mines are costly and can be laden with risk.
At the same time, the way new projects are being planned and developed is also changing.
Mining companies are focusing on electrified and sustainable operations.
This is demanding new skills and innovative thinking, opening doors to a new generation of talent beyond traditional mining.
But success starts with trust.
By engaging stakeholders early, mining companies can pave the way for partnerships, shared solutions, and risk distribution.
And by integrating supply chains, metals and minerals companies can de-risk capital projects, reduce costs, and streamline resource allocation.
This can help new projects progress from exploration to production, with greater efficiency.
So, are you ready to disrupt the status quo and lead the way in revolutionizing new mining projects?
Let’s head back underground to Theo for number 7 on the list, Climate Change.
Theo Yameogo
Are you prepared to navigate the complex road beyond net zero, into net positive, while meeting stakeholder demands?
We’re told that our planet is nearing a tipping point on climate change.
Simply put, the challenges are mounting. High integration costs for renewable energy and electrification are putting pressure on budgets.
Trade-offs such as biodiversity concerns, land disputes, and technological limitations, are complicating the path forward.
Nature-based carbon offsets need to be credible and backed by actions, or companies could face accusations of greenwashing.
The old net-zero ambitions remain far from where they need to be, even with mine site emissions intensity decreasing by 10% in recent years.
And on top of everything, stakeholders are no longer satisfied with promises and zero-sum games. They’re now demanding tangible and positive results.
As pressures mount, it’s also clear that countries with developed carbon tax policies and emission trading systems will be at an advantage.
But what about those operating in less regulated environments?
There are opportunities to level the playing field for companies prepared to take the leap.
By forming partnerships to scale innovative, low-carbon technologies, companies can accelerate progress.
Standardizing metrics and improving reporting transparency can rebuild trust and demonstrate accountability.
Focusing on optimizing portfolios to reduce downstream emissions can lead to a lasting impact.
So, are you ready to balance today’s trade-offs with tomorrow’s opportunities, and create sustainable value for generations to come?
Let’s go to Stephanie Porter, EY Americas Metals and Mining SAP Leader, for number 6, Rising Costs and Productivity.
Stephanie Porter
Is your productivity keeping pace with rising demand and rising costs?
Everywhere we look, costs are soaring. And it’s not just higher-than-normal expenses. The sector is being impacted by a whole host of challenges.
Specifically, high labour and energy costs, coupled with market volatility and uncertainty.
Meanwhile, resources have to be shared between the productivity agenda and the growing focus on ESG priorities.
And with a widening skills gap driven by an aging workforce and the advancement of new technologies, the industry faces challenges in attracting talent, potentially impacting productivity and safety.
These are challenges that aren’t going away soon. But there are opportunities to be explored in this space.
For instance, integrating ESG and productivity goals can create alignment.
By using environmental metrics, like carbon intensity, as part of your productivity measures, you can unlock efficiencies while meeting sustainability goals.
Conducting a value chain analysis to optimize processes to capture tangible efficiency gains.
And leveraging predictive analytics can minimize downtime and reduce maintenance costs, keeping operations reliable and cost-effective.
But making meaningful change begins with a clear case for action. One that gains buy-in across the business and efforts go beyond incremental to transformative.
Remember, putting people at the centre of business decisions, and weaving technology around them, can drive both safety and success. And agility is key.
It allows your teams to meet market dynamics as they happen, helping turn challenges into opportunities more quickly.
So, are you ready to position yourself to thrive in the face of change?
Let’s go back underground to hear from Theresa Sapara, EY Americas Metals and Mining Centre of Excellence Co-Leader, with number 5, Licence to Operate.
Theresa Sapara
Are you ensuring your mine’s legacy creates lasting value for all stakeholders, or just a reminder of what’s left behind?
The metals and minerals sector knows sustainability is about more than using resources. It’s also about what we leave behind.
Mining has entered a new age, with a focus on the positive impact on local communities and Indigenous populations, both during operations and long after a mine’s closure.
And while mining is shifting from deficit to surplus thinking, many organizations still aren’t doing enough.
One big challenge? Many lack the tools to measure, report and effectively communicate their efforts. While we may celebrate job creation and social programming, we stop short of addressing how we’re empowering local communities as partners or engaging Indigenous Peoples in the conversation and planning processes.
Leading metals and minerals organizations have stepped up. They know moving the needle takes effort, and that the key is transparency.
They are conducting impact evaluations to better track, measure, and report efforts. But there’s even greater potential here, one that extends beyond community engagement.
What if mining projects were planned with closure in mind from the start?
By establishing sustainable strategies in place today, there is an opportunity to guide decision-making for the future, creating value that endures long after a mine’s life.
So, are you committed to building the long-term trust needed to secure your licence to operate - in the community, and beyond?
Let’s go now to Dean Braunsteiner, EY Canada Metals & Mining Assurance Leader, for number 4, Resource and Reserve Depletion.
Dean Braunsteiner
As net-zero targets intensify, how are you addressing the challenges of replacing your resources and reserves while navigating the complexities of exploring untapped deposits?
The reality is stark.
New deposits are harder to find, and ore grades are in decline.
40 new copper mines are needed to meet global net-zero targets by 2050.
And with long lead times to open mines, looming questions around supply remain unanswered.
So, what can the sector do? The answer lies in asking new questions and finding new solutions.
Commodity prices are volatile, the cost of capital is rising and so financing remains a challenge.
Companies need to adapt.
New techniques will be required to identify new deposits. Metals and minerals companies are investing in new exploration technologies.
AI and machine learning are helping make better and faster decisions.
Predictions are becoming more accurate.
By consolidating efforts and using advanced technologies organizations are better positioned to replenish declining reserves and secure long-term viability.
And then there are the truly creative, thinking beyond the conventional, looking in places we haven’t been before.
Like under our oceans, or outer space.
Are you willing to stretch the boundaries and look at strategic possibilities, or will resource depletion define your legacy?
Let’s hear once again from Stephanie for number 3 on our list, Geopolitics.
Stephanie Porter
As geopolitical shifts intensify, is your business prepared to secure critical mineral supply?
The energy transition is driving an unprecedented demand of critical minerals.
As a result, mining and access to these resources will be required at scale to meet the demands of a growing global population and emerging technologies.
As governments prioritize the energy transition, many are stepping in to secure supply of critical resources.
Countries like Japan are subsidizing up to half the cost of mines and smelting projects.
Others are strengthening their reserves as a matter of national security.
And countries rich in natural resources, like Canada, are increasing focus on processing capabilities.
However, there’s a catch. Countries are becoming more cautious about trade partners, with tariffs and incentives reshaping the rules of engagement, adding complexity to global supply chains.
So, the question is, as global supply chains realign under geopolitical pressures, how transparent are your operations?
Can you track the origins of your resources amid rising scrutiny?
The reality is clear. Geopolitical pressures are intensifying, and metals and minerals companies must be decisive and adapt.
To stay ahead, it’s crucial to secure financing ahead of volatile times.
Partnerships and joint ventures across governments, communities, and the metals and minerals sector will be essential in derisking investment.
Equally important, stress-test your supply chains to close gaps and reduce disruption.
Use AI for demand forecasting and procurement optimization.
There are also new frontiers to explore.
With increased government investment in electric vehicles, energy, and critical mineral supply chains, opportunities abound.
So, is your organization prepared to lead the way and capture opportunities in this evolving landscape.
Let’s go to Gaby Kazour, EY Americas Metals and Mining Risk Leader, for number 2, Environmental Stewardship.
Gaby Kazour
As expectations around environmental stewardship grow, is your business ready to lead in reversing nature loss?
Nearly half of those surveyed in our Top 10 Risks and Opportunities report expressed confidence in meeting their nature-positive obligations.
But with environmental stewardship dropping from first to second priority this year, the question remains—will it be enough?
Sustainability teams are stretched thin by escalating expectations and the introduction of new, evolving standards.
These emerging guidelines are setting the sector’s priorities, because – as we know – what gets measured gets done.
Progressive organizations aren’t waiting to react. They're proactively adopting circular economy principles, minimizing waste, reducing emissions, and reprocessing tailings, unlocking value from waste through innovation.
Technology and data are also becoming indispensable.
Advanced digital tools are offering opportunities to enhance ESG monitoring, improve measurement and address areas of increased investor scrutiny like water stewardship and tailings management.
Universities and think tanks are lending expertise, helping the sector unlock value through innovation.
To thrive, organizations must embrace an integrated approach embedding ESG risks and opportunities across their governance frameworks, while considering the full mining lifecycle, from exploration to reclamation.
With time moving fast, is your business ready to rise above expectations and lead the charge in sustainable mining?
Rounding out our top 10, let’s hear again from Olga with a new number one this year, Capital.
Olga Makoyeva
As capital needs grow amid economic uncertainty and geopolitical shifts, are you adapting your strategy to secure the funding required for critical growth?
Economic downturn, geopolitical instability, and heightened ESG scrutiny are making it harder for metals and minerals companies to raise capital.
A recent EY CEO Outlook survey shows that three quarters of respondents are considering divestments, spinoffs or public offerings, with more than half anticipating M&A activity in the year ahead.
The race for copper, for example, with its high reward potential, is driving new exploration efforts and encouraging partnerships with end users to secure supply.
Yet upstream investments carry risks.
For example, battery mineral producers are slowing development as market demand slows, and political uncertainty has many holding on key investment decisions.
In response, metals and minerals companies are exploring partnerships, joint ventures, and alternative capital sources like commodity traders, supplier funding, and export credit financing to share costs and mitigate risks.
The sector’s role in the energy transition demands evolving capital strategies to demonstrate long-term value and embed sustainability.
So, in today’s shifting funding landscape, are you exploring alternative capital sources to fund innovation and support growth?
Theo Yameogo
So, there you have it, this year’s top 10 risks and opportunities.
Before signing off, we want to share one more observation.
Theresa Sapara
Four categories dropped off last year’s list of risks, governance, digital, workforce and cybersecurity.
Likely because they’ve become business-as-usual challenges, with several categories in maintenance mode.
Theo Yameogo
This shows progress.
Progress that reflects the sector’s ability to adapt, evolve, and rise to meet the challenges of our time.
Theresa Sapara
If the sector is to sustain its forward momentum, now is the time to act on this year’s opportunities.
Driving progress with equal parts innovation and discipline…
Theo Yameogo
Collaboration and courage.
We look forward to seeing what falls off your radar next year, proof old challenges are being overcome.
Theresa Sapara
And working alongside you to shape the future of the sector, driving what’s next, together.
