By Rob Starr, Content Manager, Big4.com
A new report from Deloitte , Tracking the trends 2013, provides commentary and analysis of the top 10 issues most likely to impact the mining sector in 2013 and provides a range of responses that companies can adopt to prepare for shifting industry dynamics. It states that Canadian mining companies should be investing now to ensure they can fulfill future global demand for commodities even as they face a series of immediate challenges affecting the global mining sector.
According to the Deloitte report, now in its fifth year of distribution, miners need to set a solid strategic direction and hold the course amidst shifting industry realities in order to prosper when global demand for commodities rebounds in the longer term. Higher costs remains the number one trend for the second year in a row. Currency volatility, high operating costs, and lower grades are affecting decisions around continued production, expansions and the delinking of corporate equity from commodity prices. To get costs under control, mining companies must pinpoint their cost drivers, automate, improve asset efficiency with analytics, improve their operating model and streamline the supply chain initiatives.
The Deloitte report concludes that mining companies that proactively resolve these endemic issues will be better able to meet future commodity requirements despite today’s volatile conditions and are likely to increase their role in the advancement of local communities, support of undeveloped economies and growth of jobs and skilled talent around the world.