A new report from PwC suggests mining is still suffering from poor public perception. And that’s a big issue.
The company’s Mine 2019:Resourcing the future says the world’s 40 biggest miners-with over half world production-had a record 2018, but still saw their market capitalisation fall by 18% to $757B.
PwC blames consumer sentiment. In particular it says the public still sees mining negatively despite a growing demand for more metals products like technology, cars or air conditioning.
In fact the PwC’s head of mining Chris Dodd said in a recent Australian Mining interview that “some investment mandates are getting rid of mining companies, and not just coal producers”.
Does it matter? It sure does. A negative investment story means it’s harder for companies to raise money, harder to grow, and much harder to be innovative and invest in new technologies.
It also goes to the heart of community approval, or license to operate. With new mining deposits getting harder to find and often in sensitive geographical locations, public backing is crucial.
Miners are obviously in a tough place. More and more I see mining companies publicly talking up sustainability, innovation and diversity, but I’m not sure its sticking with the public.
Chris Dodd isn’t either. ““Why is the world not interested that mining is doing so well? It’s almost like people disassociate the use of mining from the supplier of mining.”
I suspect mining has a bit of catching up to do with public opinion especially in a decarbonised & greener world. Ironically copper is helping to usher it in via electric vehicles & renewable energy.
Copper miners have also just launched Copper Mark. A new platform for the assurance of responsibly produced copper available for mines, smelters and refineries.
It’s a great start, but we have a long way to go if we’re not going to be left behind.
See PwC report (pdf): https://www.pwc.com.au/industry/mining/mine_2019.pdf
Cheers, John Fennell