Almost 80 per cent of mining executives believe the industry can meet growing demand for clean energy minerals, according to a recent global survey from KPMG.
The global mining outlook report analysed results from more than 430 mining executives across the world for their views on the mineral demands of a carbon-free future.
The majority of respondents told KPMG they were either confident (53 per cent) or very confident (26 per cent) of the industry’s ability to supply the minerals needed to build the energy systems of tomorrow.
Respondents were also bullish on their ability to reconcile growth while achieving ESG and net zero objectives – with 55 per cent expressing confidence and 24 per cent very confident of a positive outcome.
Optimism was broad but not universal, with 6 per cent of respondents not confident and two per cent not at all confident of the industry’s ability to meet growing global metal demand without compromising on ESG and net-zero targets. The report comes as the world experiences a dramatic uptick in demand for critical metals.
“The global mining sector knows there is a great deal of heavy lifting ahead to achieve net zero targets – and that time is of the essence,” KPMG global mining leader Trevor Hart said.
“Our report shows metals and mining company executives understand that to succeed in reconciling ambitious growth targets with stringent carbon-reduction initiatives, they will have to design their operating model to accommodate both objectives.
“Achieving net-zero carbon emissions by 2040 or 2050 may seem a long way off, but now is the time to integrate those ambitions into enterprise strategy.”
Dale Henderson, chief executive of ASX-listed lithium producer Pilbara Minerals, said he was particularly excited to deliver as a miner in a world unconstrained by previous precedent.
“Given that it’s a relatively new industry, there’s no playbook to follow,” he said in the report.
“But thinking deeply and carefully around this landscape, there’s a big opportunity to get it right.
“That’s certainly where I am spending my time. It’s been a crazy journey for our business, but it’s exciting.”
Perth-based rare earths developer Iluka Resources was equally confident in the industry’s ability to meet global needs. Iluka says by 2027 it will produce the “overwhelming majority” of heavy rare earths globally, outside of China.
“The expectation is widely acknowledged in the industry that there is going to be a shortfall in global supply into the early 2030s, though, and we’ll be looking to meet some of that shortfall,” chief executive Tom O'Leary said.
Despite the overall optimism, just 28 per cent of respondents said they had integrated ESG and net-zero objectives into a long-term strategy. A further 34 per cent had only just started.
A further 41 per cent of respondents said they had deliberately set targets less stringent than their peers so they wouldn’t have to compromise on hitting their production targets.
Technological changes were considered the most important factor affecting five-year demand projections, with a focus on advances in exploration and extraction technology, AI, 5G networks and the internet of things highlighted.
More than 40 per cent of respondents said they expected operational cost efficiency through technology investment to be their biggest opportunity over the period, while 43 per cent highlighted technology’s potential to transform the carbon footprint.
Overall, Mr Hart said the report highlighted the balance to be struck between business and the world’s net-zero ambitions.
“How does the mining industry pivot rapidly toward carbon-free solutions without harming the environment, while, at the same time, developing a strategy that aligns with the interests of shareholders, workers, communities, consumers and governments.
“It’s encouraging the sector is confident it can deliver on growth and net zero, but we’re not saying it will be easy.”
