KPMG’s 2024 Global Metals and Mining Outlook sheds light on significant trends affecting the metals and mining sector, emphasizing the impact of decarbonization, technological innovations, and geopolitical changes. Insights from over 450 executives, including Bob Wilt of Ma’aden, highlight the sector’s focus on sustainability and resilience.
The industry is pivoting towards reducing carbon emissions and enhancing efficiency. Notably, 47% of leaders view technology-led carbon footprint reduction as a vital opportunity, while 55% stress incorporating decarbonization into corporate strategies. Electrification and strategic redesigns are pivotal to this transformation.
Sammy Ahmed of KPMG notes that the sector is at a critical juncture, where combining sustainable practices with operational changes offers a strategic edge for future growth. Electrifying machinery like haul trucks is key to improving efficiency and cutting emissions, with 43% of companies tracking their carbon footprint through KPIs.
Advanced technologies, including AI and ML, are essential for boosting efficiency and supporting decarbonization. AI is deemed crucial by 43% of executives for strategic tasks, significantly reducing the time from exploration to mine commissioning. Wilt highlights a reduction from sixteen to nine years due to AI advancements.
Despite challenges like price volatility and supply chain issues, optimism prevails. 66% of executives have observed increased price volatility, influenced by geopolitical factors and mineral demand. However, 61% are more confident in growth prospects, with 58% investing in new markets and partnerships to mitigate volatility.
Talent acquisition is another focus, with 47% identifying skills shortages, particularly in technology. Companies are addressing this by upskilling and recruiting from tech and renewable sectors, and by strengthening ties with educational institutions.
Regulatory challenges are intensifying, with 66% citing price volatility due to geopolitical events, and 56% using AI to predict regulatory shifts. Emissions regulations are a growing concern, with 33% and 30% noting Scope 1, 2, and 3 emissions as significant risks.
Farhan Muhammad from KPMG Saudi Arabia observes that companies are enhancing compliance through AI and scenario planning. Global trends in AI and innovation for sustainability and efficiency are gaining traction in Saudi Arabia, showing promising results.
