License to operate remains top mining risk, with high-impact risks a close second

- The COVID-19 pandemic brings dynamic shifts in the risk rankings

- Increased geopolitical risks are likely to impact operations in key mining regions

- Growing stakeholder focus on environment and climate issues can create new opportunities

LONDON, Sept. 29, 2020 /PRNewswire/ -- Global mining executives rank license to operate (LTO), high-impact risks¹, productivity and rising costs as the top three risks facing their business over the next 12 months, according to EY mining and metals survey, Top 10 Business Risks and Opportunities - 2021. The survey of more than 250 global mining executives shortlists the most significant risks shaping the industry, and the reshuffled ranking reflects how the COVID-19 pandemic has unexpectedly disrupted commodity demand and prices and reframed the risk landscape. LTO, disruption, environment and geopolitical risks are all becoming more prominent as social responsibility and broader stakeholder demands intensify during the COVID-19 pandemic.

The survey highlights the way in which the pandemic has heightened stakeholder expectations around safety, environmental management and corporate responsibility. This is driving the urgency to address external perceptions of the industry, as investors look to understand value beyond the financials.

Paul Mitchell, EY Global Mining & Metals Leader, says:

"The industry has dealt with the impact of the COVID-19 pandemic extremely well, leading a prompt and effective response that allowed many mines to continue operating. However, maintaining business continuity has come at a cost, with mines facing added expenses relating to new procedures and protocols, the introduction of health testing equipment and ensuring that the workforce is supported appropriately. At the same time, the pandemic has heightened stakeholder expectations around how miners prepare for, manage and monitor all high-impact risk exposures."

Heightened geopolitical risks as economic protectionism grows

Geopolitical issues have become top-of-mind for mining and metals leaders, as the shifting balance of power between the world's largest economies is changing industry dynamics. The survey further highlights concern around how a rise in domestic protectionism could affect miners' ability to operate in key markets in the wake of COVID-19.