The top 10 risks identified by global mining and metals companies include commodity price, permitting, access to capital, community relations and social license to operate, political instability, economic downturn/uncertainty, regulatory and compliance changes & environmental risks, global trade war, ability to access and replace reserves and tailings management.

Three-quarters of mining companies indicated that the industry needs to redefine success using more holistic metrics that include social values, community stakeholders, health, safety, and long-term development, the report found.

“The bottom line is no longer the only gauge of success,” said Katherine Wetmore, Partner, Energy and Natural Resources, KPMG Canada. “The priority is to demonstrate greater transparency and accountability related to sustainable and responsible mining practices.”

Australian companies are most concerned about climate change, including natural disasters and global trade wars, while Brazilian and US companies noted community relations and social license to operate among their top three risks.

Canada was the only country where mining companies identified access to capital among their top three risks.

According to the report, almost 60% of companies believe that access to traditional sources of financing has deteriorated, and nearly 70% say new business models are needed, such as strategic partnerships, private equity, and public private partnerships.

“With the traditional public mining company model becoming increasingly difficult to maintain, companies are looking at joint ventures and partnerships as important objectives for growth,” said Wetmore.

“But, even more importantly, we’re seeing a growing recognition from mining companies to be more innovative and use technology to help them become more productive and efficient and to achieve longer term sustainable growth.”

The largest companies – worth over $10 billion – said they do not feel the need to merge and can rely on technology, organic growth, and talent to grow their organizations.

Companies identified organic growth through exploration and capital investment, together with innovation and technology transformation as their two most-important growth objectives for their organization.