In its latest report on the mining industry, KPMG said that decarbonisation is increasingly becoming a priority for metals and mining executives. Companies are working to reduce the carbon footprint of their activities.
While more renewable practices are being sought after, global demand for critical minerals is set to double by 2040, owing to the technology needed for clean energy. The report therefore also finds that miners are switching their focus to such critical minerals.
Trevor Hart, global sector lead for mining at KMPG International, said: “Mining and metals companies are pivotal in the energy transition. In 2023, the KPMG Mining and Metals Outlook focused on the crucial role played by the mining and metals industries in enabling the global economy to shift to a carbon-free future.”
“In 2024, the key theme is the efforts being made by mining and metals companies to reduce their carbon emissions. They are doing so in an environment of greater volatility in commodity prices, geopolitical change, and a technology capability and skills shortage presenting both great challenge and huge opportunity for the sector.”
The report also notes how commodity price volatility has increased over the past ten years, mainly driven by new risks. Of the 453 C-level executives that took part in the survey for the report, 66% said that the volatility of output prices had increased in the past two years and 53% said input price volatility had increased.
“The last time there were such elevated levels was prior to the global financial crisis of 2008–09, when increased capital expenditure and higher cost structures led to subsequent asset write-downs. Much of the past decade has been spent rebuilding balance sheets, and executives should bear this in mind as they invest in new technology and decarbonisation projects,” Hart added.
