Trade Resources Industry Views Mining Companies Will Continue to Face Challenging Market Conditions in 2014

Mining Companies Will Continue to Face Challenging Market Conditions in 2014

NEW YORK, Dec. 3, 2013 /PRNewswire/ -- Mining companies will continue to face challenging market conditions in 2014 including rising costs, falling commodity prices, supply/demand imbalances, and decreased productivity levels. However, companies that embrace new forms of innovation can lay the foundation for long-term business growth and be best positioned for future success, according to Deloitte Touche Tohmatsu Limited's (DTTL) Tracking the Trends 2014 report released today.

The report outlines that in order to mitigate risks of a volatile industry, companies must adopt more innovative strategies as related to financial, safety and talent management programs, as well as with their stakeholders including relationships with communities, governments, shareholders, and regulators.

"The high cost of doing business has topped our list of mining trends for the past three years, and it continues to dominate thinking in the industry though efforts are turning now to increasing productivity as well as reducing costs. To assist in this, we are also seeing an increased need for business innovation — something that links how mining companies are starting to interact with the local communities and stakeholders — as the use of social media increasingly becomes more prevalent," said Phil Hopwood, Global Mining Leader, DTTL. "While mining companies cannot change global economic trends, they can change the way they operate. Rather than waiting out the market swing, companies should take this opportunity to evolve their business by adopting the processes, technologies, and mindsets necessary to strengthen their long-term operations."

According to Hopwood, mining companies have to build innovation into the DNA of their businesses. "To drive performance improvement, mining companies need to adopt technologies that allow them to operate their mines remotely, automate core mining processes, and use techniques like remote sensing to localize ore deposits," he added. "How companies use their data on a daily basis to analyze their businesses and report needs to become core to their way of thinking."

Now in its sixth year of publication, Tracking the Trends examines the top ten issues affecting mining companies around the world. The report highlights key industry indicators and provides a range of solutions companies can adopt to manage the impacts of shifting industry dynamics.

About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's more than 200,000 professionals are committed to becoming the standard of excellence.

SOURCE Deloitte Touche Tohmatsu Limited
 

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Deloitte Releases Top 10 Mining Trends for 2014: Need to Rapidly Innovate Industry
Topics: Metallurgy