The report highlights a shift in focus towards cost control and production optimisation as companies adapt to the cyclical nature of the market.
While the energy transition remains a significant driver of demand for critical minerals, the data shows the enduring importance of infrastructure growth, food security, and urban mining in shaping the industry's trajectory.
The financial metrics of the top 40 mining companies mirror the broader industry trends.
Revenue pressures, driven by declining commodity prices and rising input costs, have led to a 26% decrease in EBITDA and a 44% decrease in net profits in 2023.
These figures highlight the challenges faced by mining companies as they strive to maintain profitability in a volatile market environment.
Looking ahead to 2024, PwC forecasts a continuation of these trends, with further declines in revenue, EBITDA, and net profits.
However, the cyclical nature of commodity prices does hint at potential rebound in the near future.
The winners in this evolving landscape are expected to be those who prioritise cost control, efficiency, sustainability, and technological innovation.
“The reality is the underlying drive for commodities out of infrastructure growth in the developing world is still there,” explains PwC Africa energy utilities and Resources leader Andries Rossouw.
“The underlying drive for commodities to support food security for urbanised community is still there and very key and important.”
Then we are as income levels grow per capita, we see increased demand for consumables
With the global population projected to grow by over 1.9 billion by 2050, the demand for fertilisers, a key mining product, is expected to surge.
Mining companies can play a pivotal role in meeting this demand and ensuring global food security.
Urban mining, or the recycling of valuable materials from urban waste streams, is another area of growing importance.
“We have seen for mature commodities such as copper that's been recycled, in our modern construct, for the last 100 years,” says Rossouw.
“Once mature, a 30% of total demand can be delivered by recycling. And we expect to see similar trends for other commodities.”
As the demand for critical minerals intensifies, recycling offers a sustainable and environmentally friendly solution to bridge the supply gap.
The report explores the benefits and challenges of urban mining, highlighting its potential to contribute to a more circular and resilient economy.
Technological innovation is reshaping the mining industry, with advancements in automation, data analytics, and artificial intelligence transforming operations.
These technologies are enhancing productivity, improving safety, and reducing environmental impact.
However, the increasing reliance on technology also brings new challenges, such as cybersecurity risks and the need for robust supplier relationships.
As the mining industry navigates these complexities, the publication emphasises the importance of optimising the value chain, investing in renewable energy sources, and embracing technological advancements.
“We think the winners in the future will be those who would have to be able to contain their costs, who have cost control and efficiencies around cost management,” says Gifty Appiah, Associate director with PwC Ghana’s tax services.
“Those would be the core winners of tomorrow.”
