Licence to operate has been identified as the biggest risk to mining, a new report by professional services firm EY shows.
The report, which is based on a survey of the top ten business risks facing mining and metals in 2019 and 2020, states that the stakeholder landscape is changing and miners need to adapt.
Additionally, EY says there has been an advance of nationalism globally and that the need for digital transformation also drives the need for a stronger licence to operate.
“Licence to operate has evolved beyond the narrow focus on social and environmental issues. There are now increasing expectations of true shared value outcomes from mining projects.
“Mining and metals companies need to transform their business models to remain more competitive and bring all stakeholders on board,” the report notes.
Moreover, digital effectiveness is key to gaining a competitive advantage in the sector, the report shows.
Worryingly, EY polled more than 600 sector executives and it was revealed that 37% of management have little or no knowledge of the digital landscape.
“CEOs need…
