Navigating uncertainty in the mining and metals industry

As the mining and metals industry navigates this complex landscape, it must prioritize operational efficiency, stakeholder engagement and license to operate, workforce development, and sustainability.

- KATRINA F. FRANCISCO

he mining and metals industry is entering a new phase of uncertainty, with operational complexity identified as the primary risk for 2026, as highlighted in the EY Top 10 Business Risks and Opportunities survey, which gathered insights from 500 senior executives in the sector globally. This article discusses four of the top risks identified in the survey.

OPERATIONAL COMPLEXITY

The growing complexity in mining operations stems from ageing mine sites and the need to replace old mines to meet rising demand. As mines go deeper and ore grades decline, challenges such as geotechnical issues and water management become increasingly intricate throughout the mine’s lifecycle. In the Philippines, the implementation of regulations related to environmental, social, and governance (ESG) factors, including watershed management and biodiversity conservation, adds another layer of complexity, although highly necessary, requiring companies to adopt compliance measures. This heightened complexity not only impacts productivity but also raises operational costs and shifts expectations regarding brownfield expansions and the initiation of new mines.

Predictability is essential for maintaining investor confidence, securing capital, and ensuring strategic flexibility. Therefore, rethinking mine design and operations to simplify processes while adhering to regulations is crucial.

LICENSE TO OPERATE