The energy transition continues transforming the mining and metals industry, presenting a unique blend of risks and opportunities. As global demand for minerals and metals grows, companies are navigating challenges such as sustainability, capital discipline, and innovation. A recent survey by EY highlights the key issues shaping the sector in 2025.
About the survey
During June and July 2024, EY surveyed senior mining and metals leaders globally from organisations with at least US$1b in revenue through an anonymous online survey. In total, 353 unique responses were collected, with 17% of respondents at the board or C-suite level, 48% leading departments, business units or commodity groups, and 35% at the president, vice president or director level. Here’s an overview:
Miners are under increased scrutiny from investors, who demand better capital discipline and higher returns. Companies are responding by exploring mergers and acquisitions (M&A), spinning off non-core assets, and considering joint ventures to mitigate risk. With challenging macroeconomic conditions, miners must think beyond traditional yield-focused approaches and explore financing strategies that create long-term value.
Environmental responsibility remains a top priority. Companies are focusing on waste and water management, with innovative projects aimed at achieving a positive environmental legacy. The push toward “nature positive” initiatives—halting and reversing nature loss by 2030—is gaining momentum, driven by organisations like the International Council on Mining and Metals (ICMM).
Resource nationalism continues to challenge the sector, with governments imposing stricter tax rules and ownership rights. For miners, large-scale projects require navigating a balance between national revenue goals and long-term benefits. Joint ventures with local companies and licensing agreements are increasingly being used to mitigate geopolitical risks.
As ore grades decline and exploration costs rise, the sector faces mounting pressure to optimise resource extraction. Innovative technologies, such as advanced leaching processes, are enabling higher recovery rates from lower-quality ores. However, the complexity of sustainable mining and stakeholder expectations demands a delicate balance between capital investment and operational efficiency.
Building trust with local communities and Indigenous groups remains crucial for miners. Strong partnerships can enhance social impact, ensure regulatory compliance, and create long-term value. Mine closure planning is another area where companies can strengthen relationships and leave a positive legacy, although it remains underemphasised.
Labour shortages and high energy prices are driving costs higher. The focus on meeting ESG obligations is also diverting attention from productivity. Companies that integrate environmental metrics, like carbon intensity, into productivity measures stand to gain broader benefits. Addressing workforce challenges remains critical to maintaining safety and efficiency.
Reducing Scope 1 and 2 emissions is a growing focus for mining companies. Progress in renewable energy adoption has reduced mine-site emissions intensity by 10% since 2020. However, challenges remain in scaling low-carbon technologies, such as hydrogen electrolysers, to achieve net-zero targets.
The sector must mine more mineral ores in the next 30 years than in the past 70,000 years combined. Overcoming regulatory delays, high costs, and skill shortages are key barriers to new projects. Companies are addressing these challenges by engaging stakeholders early in the project lifecycle and streamlining supply chain integration.
Sustainability is reshaping traditional business models. Companies are exploring recycling initiatives and integrating operations across the value chain to decarbonise and unlock new revenue streams. Local partnerships are emerging as a way to build long-term societal and organisational value.
Innovation is essential for sustainable, cost-effective mining at scale. While many companies are focusing on low-risk projects like processing, fewer are investing in exploration innovation. The need for new discoveries and technologies is urgent, yet only 30% of survey respondents believe exploration innovation will have a significant impact.
The Road Ahead
EY’s survey underscores the urgency for mining and metals companies to adapt their business models and embrace innovation to meet growing demand sustainably. Rapid transformation is no longer optional; 2025 must be a year of decisive action. Whether through partnerships, advanced technologies, or creative financing strategies, the sector has an opportunity to shape a more resilient and sustainable future.
This analysis is based on EY’s “Top 10 Business Risks and Opportunities in Mining and Metals in 2025” survey. For more insights, visit EY’s official website.