A new report has found companies are revisiting talent and diversity, strengthening community relationships, and seeking new ways to create value as the mining industry balances growth strategies with preparation for a possible economic downturn.

The 12th annual Deloitte Tracking the Trends report reveals navigating this complex landscape will require strong leadership, with mining executives expected to have broader skill sets as well as be fluent in everything from technology to environmental impacts.

This year’s edition, Tracking the Trends 2020, explores key trends facing mining companies in their ongoing pursuit of productivity, financial discipline, operational excellence, and sustainable growth.

“Mining has made impressive progress in the past few years, with many firms streamlining their portfolios and establishing more robust balance sheets in order to put themselves in a position of strength regardless of what lies ahead,” says Andrew Swart, Deloitte Global Mining & Metals leader.

“At the same time, they are addressing climate change, developing new opportunities, strengthening community relationships, and investigating new ways to create value. All of this is in the service of pursuing sustainable growth and is reflected in the key industry trends identified for the new edition of our report.”

The report highlights the industry is leading from the front as it continues to face multiple complex challenges, from uncertainty across the geopolitical landscape to the disruptions of digital technology. There is also the increasing–and increasingly divergent–demands from investors, ecosystem partners, workers, and impacted communities.

It outlines companies that succeed will be the ones who lay a proper foundation today by establishing clear strategic goals and aligning operations to achieve those goals through financial discipline and the mitigation of risk.

“Navigating these complex issues will require strong, forward-thinking leadership,” says Swart.

“To lead from the front, mining executives will need to go beyond just good managerial skills, to creating differentiated strategies, creating flexibility in their operating models, and inspiring their teams to accept change and commit to a path.”

2020 mining trends

Trend 1: The social investor – Embedding value beyond compliance into corporate DNA

Trend 2: Getting partnerships and joint ventures right – Looking beyond structure to governance

Trend 3: Seize opportunity amid uncertainty – Why miners should prepare for the next downturn now

Trend 4: Dynamically managing risk – From risk registers to strategic risk management

Trend 5: The path to decarbonization – Miners’ role in reducing emissions

Trend 6: On the road towards intelligent mining – Reviewing lessons learned

Trend 7: Modernizing core technologies – Considerations around cloud, cyber, and revitalizing the core

Trend 8: The intersection of talent and community – Proactively planning for the social impact of digital

Trend 9: Leadership in an Industry 4.0 world – Preparing to manage the mining workforce of the future

Trend 10: Tax tribulations – Concerns over “transfer mispricing” put miners in the spotlight