The mining and metals sector is experiencing significant disruption as the energy transition continues to drive the leadership agenda, according to EY’s top 10 business risks and opportunities survey for 2025.
The survey reveals that industry leaders are grappling with the challenge of meeting mineral and metal demand while balancing capital discipline, sustainable mining practices, and elevated stakeholder expectations.
Capital has emerged as the top risk for mining companies, signalling a need for a strategic shift.
Lee Downham, EY EMEIA Mining & Metals Leader, emphasises the importance of balancing short-term returns with long-term value creation.
Environmental concerns have become a standout ESG issue, with companies prioritising nature-positive initiatives to meet investor expectations.
Nearly half of the respondents (46 per cent) expressed confidence in meeting their nature-positive obligations.
Two new risks have appeared on this year’s radar: resource depletion (ranked 4th) and new projects (ranked 8th).
These concerns are driven by soaring demand for minerals and rising exploration and construction costs.
Achieving global decarbonisation targets by 2050 will require a significant increase in mining activity. The industry faces the daunting task of mining more in the next 30 years than it has in the last 70,000 years.
Theo Yameogo, EY Americas Mining & Metals Leader, highlights the critical supply gap in copper, a mineral essential for the energy transition.
With few major discoveries in the last decade and long lead times for new mines, the world’s decarbonisation goals are at serious risk.
Paul Mitchell, EY Global and APAC Mining & Metals Leader, expresses alarm that 55 per cent of respondents did not consider the workforce a key risk, despite the sector’s significant challenges in attracting and retaining talent.
As the mining and metals sector navigates these complex challenges, industry leaders must rethink their strategies to thrive in an evolving landscape.
The focus on capital management, environmental stewardship, and addressing resource depletion will be crucial for companies aiming to meet future demand while maintaining sustainable practices.
