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The year 2023 will highlight how crucial the mining and metals sector is to endeavour to transition the world's energy supply. Supply issues for a variety of commodities deemed essential to the effort that are predicted to materialise as early as 2024.
Challenges and opportunities ahead for metal and mining industry globally
There will be an increase in government policy initiatives that concentrate on meeting crucial materials requirements through domestic and regional supply chains. However, all of this will definitely bring challenges and opportunities in the industry. The biggest concern will remain relatively higher on the environmental, social, and governance (ESG) side, as it is becoming more complex and wide-ranging. Geopolitics tension continue to remain, resource nationalism, necessitating that miners gain a deeper comprehension of how it affects the overall strategy.
In 2023, ESG will continue to be the key risk and opportunity for mining and metals industries as mentioned above. As the role of ESG in strategy is expanding, there will be demand to enhance reporting and transparency. Due to the issue's influence on practically every facet of operations, business strategies are now firmly interwoven with it. Naivedya Agarwal, Co-founder, Runaya added, that “The need for greater diversity, equity, and inclusion as well as a longer-term, more strategic approach to mine closures and rehabilitation are among the most pressing ESG improvement topics. Better, quicker judgments will result from investment in data capabilities.
With new technology innovation such as use of drones, remote operating centres and autonomous trucks, the companies will seem to gain benefit from all in terms of cost, productivity, and safety.” “Despite hopeful developments, the sector as a whole continues to take a mainly compartmentalised approach to digital and innovation,” added Naivedya Agarwal. The return on investment would grow and miners would be better able to address their most difficult concerns, such as ESG and productivity, with a more integrated strategy across the value chain.
As the trade tensions and international strife draw attention, the need to build more relationship-building opportunities increase. Therefore, the geopolitical risk should be integrated into larger strategic planning in 2023. The time has come for businesses to reconsider their business models as the demand for some commodities is predicted to rise and sustainability is becoming a bigger priority.
As the best chances might be found in developing stronger ties with the government, enhancing cooperation with stakeholders, such as trade and sector groups, and investigating the possibility of government incentives and co-investments. Companies that take immediate action to future-proof their operations will be better able to withstand disruption, navigate shifting trade relationships, and ultimately gain competitive advantage.
The foundation for the growth of a resource-efficient and sustainable society will be built through cutting-edge circular economy systems and sophisticated recycling technology. Circularity in metal makes a significant contribution to this by assuring necessary portions of the supply of raw materials for high-tech goods and, at the same time, lowering CO2 emissions in their manufacturing.
China and the EU have recently reinforced their rules and regulations regarding the recycling of materials and waste, including electronic waste (e-waste). In 2023, India will extensively work towards in the same direction with right policies and government support to curb the growing wastage.
