Ninety percent agree on the need for closer collaboration with government to streamline permits
A new survey by KPMG in Canada revealed that mining leaders are grappling with rising regulatory demands, community relations challenges, and capital access issues as the world’s transition to clean energy increases the need for critical minerals.
The survey, which polled 100 mining executives, highlights the complexities facing an industry tasked with ensuring a sustainable and secure supply of vital resources such as lithium and copper.
“The outlook for growth is strong, yet the risks and opportunities that lie ahead for the mining industry have never been broader or more diverse,” said Heather Cheeseman, national mining leader for KPMG in Canada. She emphasized that while optimism remains high, the difficulties in developing new mines, particularly around permitting and capital, present significant hurdles.
The International Energy Agency (IEA) warned earlier this year of a potential shortfall in critical minerals if more investment is not directed toward new mines and recycling projects. According to the IEA, by 2035, global lithium supply will meet only 50 percent of demand, while copper resources will cover just 70 percent. Despite these looming supply gaps, 79 percent of mining executives remain optimistic about the industry's five-year growth outlook, a sharp increase from 62 percent in KPMG’s 2022 survey.
Katherine Wetmore, GTA mining leader for KPMG in Canada, noted that government support for critical mineral exploration is boosting confidence among Canadian mining leaders, though concerns remain about the impact of foreign takeover restrictions. “The industry’s overall confidence contrasts with the many challenges companies face, particularly in community relations, commodity prices, and geopolitical uncertainty,” Wetmore said.
The survey also found that 90 percent of mining executives agree on the need for closer collaboration between industry and government to streamline permitting processes. However, concerns over geopolitical risks and the growing complexity of operating in foreign countries continue to mount.
Environmental, social, and governance (ESG) issues also ranked high among executives, with 61 percent stating that ESG initiatives are primarily driven by regulatory and legal obligations rather than stakeholder expectations. Only 40 percent of mining companies have formal net-zero commitments in place.
As the demand for critical minerals intensifies, mergers and acquisitions are expected to play a key role in the industry’s growth strategy. Nearly half of respondents view mergers and acquisitions as crucial to their plans. Despite the challenges, mining leaders remain focused on finding solutions to meet the demands of the evolving energy landscape.
