Mine 2021: Great expectations, seizing tomorrow

Now in its 18th year, PwC's Global Mine report examines the performance of the world’s 40 largest mining companies, and the trends impacting the industry.

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Mining is one of the few industries that emerged from the worst of the COVID-19 pandemic economic crisis in excellent financial and operational shape. In fact, 2020 was a banner year for the mining sector.

The Top 40 mining companies have never been in a stronger financial position to make a big, bold pivot towards the future.

And the future is already visible today: The world is in the midst of an era-defining transition to a low-carbon, sustainable economy. Making ESG – environmental, social and governance issues – the core of organisational strategy provides miners with a compelling path to build trust, grow, and produce sustained outcomes for the future.

64%

increase in market capitalisation to $US1.46 trillion
US$545bn

total revenue (excluding trading) up 4% from last year
15%

increase in net profit to $US70bn

Make ESG the top of your growth agenda

Companies with higher ESG ratings demonstrate stronger long-term performance in shareholder and market value.
Products and services made with low-carbon inputs are increasingly in demand and beginning to attract premiums.
Relationships are key: identify your ESG stakeholders, listen to their concerns, and proactively engage.
Strong ESG performance can open the door to new capital and lower interest facilities.

Seize the ESG deal opportunities

Significant M&A opportunities lie on the ‘growth side’ of ESG, in gaining access to materials necessary for customers to meet bold net-zero targets; the IEA predicts a possible six-fold increase in demand for critical ‘clean energy’ minerals by 2040.
The shift away from thermal coal will continue, but it is mostly a defensive strategy; miners should challenge their current deal evaluation criteria to proactively align M&A activities with their ESG priorities.

Take control of your tax story

If you don’t tell your own tax story, someone else will: tax transparency gives miners the chance to highlight their significant financial contributions to their communities and the resulting improvements in education, infrastructure, and quality of life.
Tax transparency is a key ESG metric, but it involves more than merely reporting the amount of taxes a company pays; it includes being open about your tax policy, tax risk management, governance strategy and more.

COVID-19 - embrace the new normal

Miners have responded to the pandemic successfully. It’s time to think about how to handle the altered landscape in a ‘COVID-19 normal’ world.
- Embrace ‘hybrid’ models of working to meet the growing demand for flexible work.
- Build supply chain resilience through real-time visibility.
- Fast track automation and digitisation to protect worker health and safety and improve efficiency.