EXPERT EYE
WHAT’S IN STORE FOR THE MINING INDUSTRY IN 2022?
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021 was a year of strong performance and high volatility in metal prices due to a demand and supply mismatch. Several commodities reached new historical highs such as gold, iron ore and copper leading to a strong profitable sector for producers and explorers. The global push towards a green transition and a low-carbon economy continues to gather momentum, bolstered by the latest agreements at the COP26 summit in November 2021. The pace, trends and demand versus price of critical raw metals and minerals needed to accelerate the global energy transition will remain top of mind in 2022 for explorers and producers as they assess the opportunities and risks. It is clear the energy transition presents exceptional challenges for metals and mining companies, who will need to innovate and rebuild their growth agenda faster and cleaner than ever before. In addition to climate change, perceived gaps between investment and technological capabilities, supply chain constraints, government intervention and rising stakeholder expectations will continue to pose 8 | Africa Outlook issue 94
new era. 2022 is looking to be a strong performing year for the mining sector, but it won’t be ‘business as usual’ anymore. We look at some of the key issues for 2022.
SUPPLY CHAIN CONSTRAINTS:
Boris Ivanov, founder of Emiral Resources Ltd – a global mining group that focuses on exploration, mining and the production of Earth’s mineral resources, explores future predictions for the sector Written by: Boris Ivanov, founder of Emiral Resources Ltd as challenges. Miners will also face pressure to meet ESG criteria to access project funding and wider buy-in. This is likely to raise the vulnerability of players to issues such as community opposition and water access. The mining industry is bracing for change companies will need to shake off their ‘dinosaur image’ to adapt to a
Lockdowns hamper operations and put pressure on demand for key commodities which in turn disrupts global supply chains. While vaccination programmes are gaining traction, they have not proved the absolute protection many hoped. This has curtailed operations at mines – particularly those who have had outbreaks of the COVID-19 Omicron variant in the workforce. One added complication is that some important supplies – particularly mineral and metal deposits needed for low carbon technologies are generally concentrated in specific regions like South Africa, Democratic Republic of Congo (DRC), Chile and Bolivia. This can result in supply bottlenecks should investments in production capacity not meet demand, or if there are disruptions and breakdowns in their institutions, regulations, or policies. Changes
