Managing Change

Tracking the trends 2012

The top 10 trends mining companies may face in the coming year

Contents

It’s not raining; it’s pouring ............................. 2 1. The cost of doing business .......................... 4 2. Commodity price chaos .............................. 6 3. The battle to keep profits ............................ 8 4. Restless stakeholders................................. 10 5. Labour pains ............................................. 14 6. Capital project quandaries ......................... 18 7. Non-traditional financing .......................... 20 8. The big get bigger .................................... 22 9. Volatility is the new stability ...................... 24 10. Legislative Olympics ................................ 26 From competition to collaboration ................ 28

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As nations around the world industrialize and populations strive to improve their standards of living, mining has come to take a more central role on the world stage. Gone are the days when conversations about commodity prices were confined to industry analysts. Today, mining is front page news – every day and across the globe. For mining companies, this greater visibility comes with greater responsibility.

Glenn Ives, Americas Mining Leader, Canada

Tracking the trends 2012

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It’s not raining; it’s pouring

the mining sector. Looked at in isolation, each challenge may seem familiar. Looked at through a macroeconomic and geopolitical lens, however, it becomes clear that the difficulties afflicting the industry are rapidly reaching an unprecedented level of extremity.

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t could be argued that the burning issues facing the mining industry tend to remain largely unchanged over time. While this may be factually correct, it fails to take into account the extent to which shifting social, economic and political trends affect

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Tracking the trends 2012

Cost inflation is not new, but it is higher. Changes to fiscal and government...