For the first time in our annual Mining Risks Survey, access to reserves and resources has displaced commodity price risks from number one spot.
Every year, KPMG surveys mining executives and asks them to rank their top perceived risks for the industry. Our 2016 survey marks the first time that the concern over the ability to access reserves and resources has replaced commodity price risk as the top concern for mining executives.
The 2016 results reinforce that in order to survive in the mining industry, companies need to learn to adapt in the face of scarcity of natural resources, and commodity price cycles whilst still maintaining liquidity. It is also interesting that at a time when the world appears to be bracing itself for increased uncertainty, mining executives are increasingly concerned about resource nationalism, and haven’t forgotten the hard-learned lessons of the past relating to controlling costs, and earning the social license to operate.
Read the full article for a look at the year-over-year trends for top risks impacting the industry, possible underlying factors driving them, as well as some mitigation strategies that are being employed by companies.