Reshaping the mining landscape: Future transformations and global energy impact

Accounting and advisory firm BDO’s 2024 Mining Report offers a deep dive into the latest trends, challenges and opportunities in the UK and global mining sectors. The mining industry has always been important to the UK’s economy and has emerged as pivotal to the green energy transition.

This report provides valuable insights into the global mining industry's key trends, including sustainability, consolidation and the shift towards minerals for sustainable energy and highlights the industry's awareness and response to the world's low-carbon transition and investor interests in sustainability.

It acknowledges that the mining industry is driving investments in critical minerals such as cobalt, nickel, copper, lithium and zinc. The metals that will enable the development and production of most of the clean technologies required to reduce carbon emissions.

Increasing investment in and the use of innovative technologies by the mining sector to reduce carbon emissions and other environmental impacts includes the use of EVs, drones to ease hazardous work procedures, robotics and automation, and the uptake of renewable energy sources such as solar, wind and hydro.

"With the world's low-carbon transition in progress, the mining industry has a pivotal role to play in driving investments in critical minerals. Adopting sustainable solutions can enable mining companies and the rest of the value chain to meet the demand for these essential commodities while reducing their carbon footprint,” says BDO representative Matt Crane.

Mining M&A

The report also examines trends in mergers and acquisitions (M&A). In terms of values, the global mining industry is experiencing an upward trend as it continues its recovery from the Covid19 downturn. The significant trend is the increased prevalence of high-value M&A transactions, and mega-deals, over the past decade. From 2021 to 2023, M&A activity experienced a downward trend in the number of deals while there was an increase in total deal values. Mining companies are pursuing consolidation to secure long-term development, focus on sustainability and decarbonising operations.

The report has been produced by BDO UK. BDO is the world’s fifth largest accountancy firm and work with natural resource and mining companies across the globe. BDO has drawn on its international network of mining experts to provide invaluable insights into the mining sectors trends and changes. BDO helps mining companies be successful by assisting them with regulatory, operational, financial and ESG challenges.