Globally, the mining sector – except the gold industry – had a challenging 2024, with declining revenues and earnings before interest, taxes, depreciation and amortisation (Ebitda) as the industry grappled with rising costs and tightening margins.

During 2024, revenue, excluding trading, declined to $689-billion, from $697-billion in 2023, while Ebitda decreased 5% to $193-billion, from $204-billion in 2023, and net profit remained at $92-billion.

The rising costs and narrowing margins placed pressure on much of the industry, pushing overall Ebitda margins down to 22%, compared to 24% in 2023, according to the PwC’s ‘Mine 2025: Concentrating on the future’ report.

The revenue and Ebitda of the top 40 mining companies, excluding gold-focused firms, declined 3% and 10% respectively, while gold revenues increased by 15% amid record gold prices, and gold Ebitda rose to 32% as a result of operating leverage.

In its 2025 forecast, the PwC Mine 2025 report indicated that total revenue, excluding trading, for the global mining sector will reach $698-billion in 2025, with Ebitda of $190-billion and an Ebitda margin maintained at 22%.

However, strategic opportunities are emerging, said PwC Africa energy, utilities and resources leader Andries Rossouw.

Unpacking the report’s focus on the role that mining plays in expanding and interlocking domains of human activity, he explained that PwC examined the ways that value is being put into motion, as megatrends – and the responses to them – dictate developments in supply, demand and investment.

Discussing concentration risk, which arose from the natural endowment of mineral resources that could not be changed and the enabling environments created by countries, he said that, over the years, there had been a rise in the concentration of both reserves and production, as well as the development of substantial mismatches between the two.

“The concentration of mining and processing in a small number of geographies creates the risk that global supply and prices will be affected by location-specific challenges such as natural disasters, wars, social unrest, political or regulatory changes and infrastructure failures.”

Countries have adopted various strategies to secure supply and leverage the value of key commodities.

“Megatrends are transforming the industry, driving the need for new supply chains, influencing national strategies, fostering innovative collaborations and unlocking new value pools,” he continued.

“As the world undergoes rapid urbanisation, transitions to new energy sources and embraces technological advancements, the demand for mined resources continues to grow. These global forces are reshaping industries, making mining central to how we move, build, feed, care for and power society.”

However, if mining companies are to create value for stakeholders in the emerging world of domains, they need to future-proof their businesses.

The growth of these domains also offers potential for mining companies to become involved in other industries that help mines operate more effectively.

These efforts often result in economic development initiatives that provide benefits to the climate and to broader society.

“Beyond the domains of growth, key trends such as population growth, the energy transition, environmental impact, technology innovation and artificial intelligence, access to funds as well as policy and regulation are expected to shape the future of the industry,” said Rossouw.

“However, as we forge ahead, one thing is certain: collaboration will be essential – in 2025, in 2030 and in 2035.”