The mining and minerals sector finds itself at a pivotal juncture. The intertwined challenges of resource scarcity and environmental sustainability, alongside the urgent pursuit of decarbonisation, the imperative to attract investments, and the swift evolution of market demands, are fundamentally transforming collaboration within the mineral sector.
The global transition to clean energy and decarbonisation occupies a prominent position in numerous events, forums, and national agendas; however, the successful realisation of this transition is profoundly dependent on the availability of critical minerals. The inquiry at hand pertains to the methods by which we, as participants in a global mineral value chain, can establish a robust investment ecosystem that will stimulate the growth of the mineral sector.
Throughout my extensive 38-year career in the mining sector, I have engaged with a diverse array of commodities, including coal, nickel, and precious metals and minerals, such as palladium and diamonds. My tenure as CEO of De Beers and Chairman of Norilsk Nickel has afforded me a profound understanding of the complex dynamics inherent in mining operations, as well as the essential elements required for their establishment and sustainability.
The discourse surrounding the establishment of a resilient investment ecosystem must be approached with a clear end goal, laying the groundwork for enduring success and innovation, ensuring that long-term growth and sustainability are assured. In my view, it establishes a basis of stability and assurance that draws the interest of both local and international investors, thereby facilitating the sector’s complete potential.
To establish the context, let us examine four essential pillars: regulatory stability, access to capital and talent, technological advancement, and sustainability.
The foundation of a robust mining ecosystem is anchored in regulatory stability. Mining initiatives necessitate substantial financial investment, often amounting to billions of dollars, and extend over decades. Therefore, the establishment of stable and enduring policies is crucial for both attracting and maintaining investment. In the absence of such stability, even the most affluent nations find it challenging to obtain the necessary financial support for their development. This regulatory stability is not merely a luxury; it is an essential component for cultivating a flourishing industry.
Saudi Arabia presents a noteworthy illustration of effective regulatory reform. The Kingdom’s Mining Investment Law of 2020 exemplifies its dedication to establishing a solid and transparent framework for investors. Through the alignment of its policies with global best practices, Saudi Arabia has established itself as a paragon of regulatory stability, as underscored by the Mining Journal World Risk Report 2023.
While still in the nascent stages of its mining endeavours relative to established centres such as Canada and Australia, Saudi Arabia’s strategy illustrates how consistency and reliability can elevate a nation to a premier investment locale.
The availability of both human and financial capital constitutes a fundamental pillar of resilience. Mining projects necessitate considerable financial investments, and asset management firms such as Ninety-One play a crucial role in directing capital towards these initiatives. However, mere financial resources are insufficient. The significance of human capital, encompassing skilled geologists, engineers, and technicians, cannot be overstated. Establishing a resilient industry necessitates not only the acquisition of talent but also the cultivation of it through initiatives that emphasise education, training, and capacity development.
The sector ought to adopt a courageous approach by allocating resources to human capital with the same vigour as it does to initiatives.
Capacity building holds a fundamental role in mining operations, akin to the significance of investment; it serves as the initial step towards fostering sustainability, scalability, and enduring success within the industry.
The mining sector is undergoing a transformation driven by technology, evolving in ways that would have seemed inconceivable merely a decade prior. Advancements in resource extraction, efficiency, and environmental stewardship are reshaping the landscape of competitiveness.
Advocates for mining, such as Robert Friedland, have articulated the industry’s capacity to delve into renewable energy and other innovative methodologies to achieve its long-term objectives. These innovations transcend the mere pursuit of market dominance; they are fundamentally concerned with preserving the sector’s significance in an ever-evolving landscape.
Ultimately, the future of mining should be anchored in the principle of sustainability. It transcends mere mitigation of environmental impacts; it involves the profound integration of circularity within the industry. Through the strategic procurement of local resources, the optimisation of energy consumption, and the minimisation of waste, mining enterprises can achieve cost reductions while fostering enhanced relationships with surrounding communities. This, consequently, will augment their social license to operate—a crucial element in securing regulatory approval and garnering community support.
These challenges require resolution and a deeper exploration into policy and action. To achieve this, we must establish platforms that facilitate substantive discussions among policymakers, industry leaders, and stakeholders to identify viable solutions. Among the numerous assemblies in this domain, the Future Minerals Forum (FMF) distinguishes itself, transforming the discourse and reshaping the principles governing the future of mining and minerals.
The FMF convenes government representatives from various nations alongside distinguished individuals from the comprehensive mineral value chain in Riyadh, aiming to directly tackle pressing issues and establish enduring initiatives for their resolution.
The obstacles we face are substantial, yet the possibilities are equally significant. Through the implementation of appropriate frameworks, strategic investments, and steadfast commitments, we can guide the mining sector towards a prosperous future characterised by resilience, accountability, and meaningful impact.
source: mining weekly
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