Recently the global firm of Ernst & Young surveyed over 250 mining and metal companies worldwide to pinpoint the top 10 business risks facing this sector.
In descending order, they are:
#10 – New World Commodities
# 9 – Fraud
# 8 – Disruption
# 7 – Future of Workforce
# 6 – Energy Mix
# 5 – Rising Costs
# 4 – Cyber
# 3 – Maximizing Portfolio Returns
# 2 – Digital Effectiveness
# 1 – License to Operate
Mining companies are experiencing tremendous disruption being brought about by societal changes, digital impacts, and pressures from technology and auto companies demanding new world commodities. However, the license to operate may in fact be the number one critical factor that determines whether a mining company continues to operate successfully in the future. According to the study “the stakeholder landscape is shifting. There is more information, bigger platforms and more at stake than ever before. Underestimating the power of each and every single stakeholder would be a mistake.”
Truly understanding the risks inherent in maintaining a license to operate requires a detailed assessment of all the factors that will impact your activities including social, environmental, stakeholder expectations, automation of jobs, transmission of rapid digital information, collaboration and branding. The future may well see new business models being developed to respond and resolve issue-based stakeholder participation.