By: IOL

Global mining is at an inflection point: demand for critical minerals, underpinned by the low-carbon transition, defence spend, transport electrification and data centres is accelerating in an environment where supply is rising, metals prices are volatile and government intervention is scaling up, said BDO Audit Partner and UK Head of Natural Resources and Energy, Matt Crane.

He was writing in BDO's Annual Mining Report 2024, which was released Wednesday. The report found that sustainability has moved from the periphery, to the core of mining strategy. While ESG frameworks and reporting standards are expanding, their effectiveness is however inconsistent.

"Many companies still grapple with fragmented disclosures and struggle to integrate sustainability into operational decision-making," the report found. Recycling and circularity was an opportunity. Recycled minerals could generate up to 80% fewer greenhouse gas emissions than primary production, yet recycling rates for materials like lithium and rare earths remained very low.

Scaling recycling infrastructure was becoming a critical lever for both decarbonisation and supply security.

"The industry is entering a period where long-term resilience matters more than short-term cycles," said Servaas Kranhold, Audit Partner and Head of Natural Resources at BDO South Africa.

"Mining companies are being asked to do more than simply produce commodities. They are now central to energy security, industrial policy, and economic development, particularly in emerging markets. The winners will be those who balance growth with sustainability, innovation, and meaningful stakeholder engagement," he said.

The 2024 report identified a shift in global demand toward critical minerals that underpin the low-carbon transition, electrification, and digital infrastructure. Copper, lithium, nickel, cobalt, and rare earth elements are essential to renewable energy systems, electric vehicles, defence technologies, and large-scale data centres.

Supply responses, however, were uneven. Rapid capacity expansion had created oversupply and price pressure in some markets, notably lithium and nickel, while regulatory intervention and export controls had tightened others, such as cobalt. The divergence had amplified volatility and made the securing of reliable supply chains more important.

The report said government intervention had become a defining feature of the sector. From strategic stockpiling and direct equity investments to export restrictions and local beneficiation policies, states are actively shaping mining markets.

In the US and Europe, securing access to critical minerals was by now firmly embedded in industrial and defence strategy.