PwC has released its 19th annual review of the top 40 mining companies – Mine 2022 – which examines global trends in the mining industry.
Future success will depend on whether or not the top 40 can take a leading role in the world’s clean energy transition and continue to generate significant stakeholder value.
This year’s report suggests that the rewards for those miners that emerge as leaders in the clean energy transition could be immense.
According to recent data, the need for “critical minerals” such as copper, nickel and cobalt is expected to grow over the next three decades, with some estimates suggesting that the annual demand from clean energy technologies will reach over US$400 billion by 2050.
On the local front, Australia’s miners in the top 40 include:
#1 – BHP Group Limited, Commodity focus – Diversified (2021 ranking – # 1)
#2 – Rio Tinto Group, Commodity focus – Diversified (2021 ranking – # 2)
#10 – Fortescue Metals Group Limited, Commodity focus – Iron Ore (2021 ranking – #4)
#25 – Newcrest Mining Limited, Commodity focus – Gold (2021 ranking – #18)
#26 – South32 Limited, Commodity focus – Diversified (2021 ranking – #35)
Australia has one of the largest recoverable resources of critical minerals and rare earths in the world and the Mine 2022 report found that demand for critical minerals is set to soar.
Compared to many nations, Australia also has strong credentials when it comes to environmental, social and governance (ESG) matters and this will prove pivotal in the new energy transition.
Australia’s competitive advantages include:
Critical minerals
The shift to clean energy will require more mining and Australia can be a major player in the decarbonised global economy due to the endowment of natural reserves in critical minerals.
For example, demand for copper, lithium, nickel, graphite, and cobalt is expected to increase by up to six times by 2040.
There is a tremendous opportunity to develop new exports and deepen processing capabilities.
Mine 2022 found that revenues rose by 32% among the top 40 miners globally, and net profit soared by 127% on the back of high commodity prices and prudent cost management.
ESG credentials
At the same time, the future looks rosy due to Australia’s very strong ESG credentials.
The country’s mining sector demonstrates strong workplace relations, and Australia’s miners have a reputation internationally for acting ethically and with integrity.
The sector’s environmental record continues to keep improving as is consultation and coordination with First Nations peoples.