Canadian mining companies should invest now to ensure they can meet future global demand for commodities even as they face a series of immediate challenges affecting the global mining sector, according to a report from Deloitte, Nov. 29.
The report, Tracking the trends 2013,
provides analysis of the top issues most likely to impact the mining
sector in 2013 and provides a range of responses that companies can
adopt to prepare for shifting industry dynamics.
Deloitte says miners need to set a solid strategic direction and stay the course in order to prosper when the global demand for commodities rebounds for the long term.
Beyond finding ways to control costs, Deloitte says mining companies should prepare for mergers and acquisitions activity in 2013, strengthening their relationships with local governments and find innovative ways to cope with a looming skills shortage.
"For the second year in a row, mounting costs tops the list of the key issues affecting the mining industry," said Glenn Ives, Americas Mining Leader, Deloitte Canada. "This is expected to worsen in the short term as commodity prices continue to dip, workers demand higher wages and regulatory costs rise. But rather than halting production in the face of shareholder demands for more immediate returns, miners should be making investments today to meet the expected long-term demand for commodities."
"This continues to be a challenging environment for mining companies, in Canada and around the world," said Jurgen Beier, National Mining Leader, Deloitte Canada. "By focusing on some key areas, such as combatting corruption, enhancing corporate social responsibility practices and making increasing use of information technology and data analytics, companies can improve their prospects when global demand inevitably rebounds."