The ongoing energy transition is significantly reshaping the mining and metals sector, as highlighted in the latest EY Top 10 Business Risks and Opportunities Survey for 2025. The survey, which polled senior leaders across key global geographies, reveals that companies are struggling to meet the growing demand for minerals and metals while balancing various pressures, including capital discipline, sustainable mining practices, and rising stakeholder expectations.
These competing priorities underscore an urgent need for mining and metals firms to rethink their strategies to thrive in a rapidly evolving landscape. Notably, two new risks have emerged this year—resource depletion and the need for new projects—indicating that industry leaders recognise the necessity for change.
Paul Mitchell, EY Global and APAC Mining & Metals Leader, stated: “This year, aside from the perennial cost and productivity risk, there has been a noticeable shift in the risks towards strategic issues to meet future demand. Fortunately, miners are not losing sight of ESG obligations, which are critical to attain and retain their license to operate. However, it is alarming that 55% of respondents did not consider workforce challenges as a key risk, given the sector’s ongoing struggle to attract and retain the talent required for growth.”
The survey identified capital management as the top risk facing mining companies. Increasing pressure to effectively manage capital while making strategic investments in growth has shifted the focus from mergers and acquisitions (M&A) to the need for building new mines. This necessary pivot may reduce short-term returns but is essential for long-term sustainability.
Lee Downham, EY EMEIA Mining & Metals Leader, commented: “What’s clear from this year’s study is that capital has emerged as the number one risk for mining companies, signalling a need to shift gears. Miners must transition from a focus on short-term returns to prioritising long-term value creation. While they have a strong track record of capital discipline, it is now crucial to balance this with strategic investments that drive sustainable growth.”
Environmental stewardship has emerged as a critical issue for the sector. Mining companies are increasingly prioritising nature-positive initiatives to align with growing investor expectations. Nearly half of survey respondents (46%) expressed confidence in their ability to meet nature-positive obligations. Waste management, too, has come under increased scrutiny, with companies adopting closed-loop processes and focusing on reprocessing mining waste.
Resource depletion and the timely introduction of new projects are becoming significant concerns as demand for minerals rises. The survey ranked resource depletion as the fourth highest risk, while new projects were ranked eighth. Achieving global decarbonisation targets by 2050 will necessitate a dramatic increase in mining output, with projections indicating that over the next 30 years, we will need to extract more minerals than we have in the last 70,000 years. Yet, exploration budgets are declining, particularly for critical minerals like copper, which are vital for the energy transition.
Theo Yameogo, EY Americas Mining & Metals Leader, remarked: “With few major copper discoveries in the last decade and an average of 15.7 years to bring a new mine online, we are facing a critical supply gap. Copper is essential to the energy transition, yet exploration budgets have been slow to shift towards critical minerals. Without accelerated investment and innovation in exploration, the world’s decarbonisation goals are at serious risk.”
For further insights on the mining and metals sector and to access the full report, visit the EY website.
