Top 5 business risks facing the mining industry in 2018

Every year some mining companies begin to divert attention to get a good future, but in the achievement there must be a risks to be faced and will be something positive and negative in the system kerjannya. Ernst & Young has released his research into 10 Business Risks facing mining and metals from 2017 to 2018, in his research there are some concerns that will be risk management that is quite difficult to understand. Of the few risks there is the greatest risk that is in the digital era.

Here are five of the biggest risks:

Digital Effectiveness 

 

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Mining companies should focus on using digital to solve the most urgent business problem; improving productivity and margin across the value chain. Digital mining, as EY points out, is not a new concept, but there is a disconnect between the potential form digital transformation and the poor track record of successful implementation. As the need for technology shifts, it won’t always be a case of productivity, companies risk falling being by competition unless they remain at the forefront of this technological change.

Competitive shareholder returns

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Balancing short-term shareholder returns with long term value can be both difficult but key. Cash across the mining industry is being generated at significant levels again and in turn, this has seen an exponential increase in competitive shareholder returns. Shareholder activism is also increasing and companies need to differentiate themselves by making good capital investments and getting good returns. Companies must become leaders in the industry in order to attract capital.

Cyber 

08.IntelligentManufacturing_WEB_2048Arguably the biggest risk that will only continue to grow. As companies become more and more data focused, through IOT and Big Data, ultimately, they become more reliant on these digital processes and this in turn breeds a culture of cyber-attacks. Having a clear digital road map will prove key, one that fully incorporates cyber threat programs to meet and head-off these risks.

Regulatory Risk 

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The regulatory space in the mining industry is forever changing and with change comes challenge. More and more governments the world over are looking, demanding, far greater returns from the natural resources sectors in their jurisdictions. Ministries such as the Ministry of Mining in SA have been up in arms recently, seeking new and improved ways to govern the industry, which has been met with some resistance and this will only look to continue as we head into 2018.

Access to and optimization of energy

Supervisor showing something to colleague at construction site

Supervisor showing something to colleague at construction site

Mining and minerals-processing operations require a large quantity of electricity. Remote area mining operations have unique challenges in developing, maintaining and operating stand-alone power systems. To minimize fuel price volatility and ensure supply, companies are opting for a mix of energy sources – fossil fuels, hydroelectricity and renewable energy. The decision on energy sources has reputational and social implications for organizations that are facing increased scrutiny on the extent of their emissions and water usage.

Source: www.miningglobal.com