2022 Industry Outlook: A new operating climate for mining, energy and infrastructure sectors.

Whether or not one believes in the science of climate change, there’s no denying it’s growing impact on the future of the resources sector. From emissions targets through to increased operational and maintenance costs, there’s growing evidence of a need for prioritised technical adaptation strategies.

Add to this nationalist policies and ever-changing consumption patterns, the landscape of the resources industry is rarely stagnant for long. In the middle of a global pandemic, the current times have called for pivots left and right, with many companies working through uncharted territory.

Projections on Future Conditions.

Mining, metals, oil and gas, and infrastructure will increasingly become prone to volatility and swings in market demand post-pandemic. According to KPMG’s 2022 forecast report, some of the key areas of focus for companies to navigate will be:

International Relations; global uncertainty has the ability to undermine international cooperation, and to be a breeding ground for resource nationalism arising from self-interest and government interventions.

Commodity Price Risks; the aggressive and cyclical nature of resource sectors continues to be a factor in capital costs and a focus on maximising the efficiency of operations.

Access to Talent and Health; health and safety has gained a heightened focus post-pandemic, with stricter measures and immunisation rollouts placing strain on labour supply and access to talent.

Environmental Risks; extreme weather events and climate action failure remain high on the list of threats, with regulatory responses to environmental damage carrying its own set of challenges.

Cyber and IT security risk; with an accelerating shift towards increasingly technology heavy operations, cyber risks are entering a new era within the resource sector. Response preparedness will be key in minimising potential threats of disruption.

Keeping One Step Ahead; Joining the Resource Revolution.

Many of the developments into next year and beyond are not new, but the ways in which companies adapt to them will require a fresh approach to stay on track.  McKinsey & Company have identified a path forward for resource executives, marking out five key areas to reset thinking and be ready to capitalise on value creation.

  1. Interlocking Resource Shifts

Decline of rock and mineral demand from a weakening demand for steel and increased recycling could see copper demand rise by up to 50 percent.

  1. Resource Productivity

Greater energy efficiency and the substitution of coal and oil by alternatives including wind and solar, could improve global energy productivity by almost 75 percent over today’s benchmarks.

Business capturing this value has proven possible, with some manufacturing plants already seeing sizable drops in energy demand through retrofit efforts, including sensor installation.

  1. Unexpected Business Opportunities

Although car-sharing services already exist, in their infancy, there is plenty of room for newcomers to disrupt the transport and infrastructure space. In addition, sustainability problems such as battery storage are still yet to be solved. The technologies underlying these opportunities already exist or are being explored.

  1. Responsiveness to Technology-driven Change

Companies must step up their ability to digitise and harness data analytics, better connecting data to workflows and energy needs. Identifying efficiency opportunities are where the big players will come out on top.

  1. Water to Replace Oil?

Advances in water management will become increasingly critical, with a global imperative of zero waste and maximum recycling and regeneration.

When companies truly understand the repercussions of disposal costs, water-pumping and heating expenses, they may turn their attention to water-conservation efforts.

Seizing Opportunity with Concentis.

For resource companies new and existing, the game is changing with the uncertainty and declining sources of traditional growth. This will require a focus on agility and harnessing new technologies and a back-to-basics approach around throughput, capital cost reduction, spending, and labour.

In the emerging resources landscape, established and upcoming businesses will compete to develop viable business models. It's a game not everyone can win, but partnering with the right resourcing solutions is your step in the right direction.

Sourcing and assigning resourcing industry professionals into specialist roles, we elevate existing capabilities to help you deliver projects safely, on time and on budget.

To get in touch, call us on 07 3607 6305 or email us at hello@concentis.com.au

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