Opportunity for miners to lead the clean energy transition

PwC recommends mining firms captialise on their recent strong performance to drive global efforts towards clean energy.

Future success for miners depends on whether the top 40 mining companies can take a leading role in the global clean energy transition, according to a report from PwC.

PwC's 19th annual review of the top cohort of miners highlights the strong financial results for 2021, with revenues and net profits rising by 32% and 127% respectively due to high commodity prices and prudent cost management.

The professional services firm recommends that mining firms use their strong current financial position to meet the challenges of development timelines, price volatility, geopolitical risks, stakeholder expectations, economies of scale and economic resource scarcity.

Many companies in the UK, particularly material intensive manufacturing companies, are looking to reduce rising raw material prices as part of the energy transition and other inflationary factors.

Drew Stevenson, PwC UK’s Energy, Utilities and Resources leader, says, 'Demand for the range of critical minerals needed to power the energy transition journey is unlikely to diminish as countries such as the UK accelerate towards their Net Zero target dates. The mining industry has a key role to play not only in discovering and delivering essential commodities to drive this decarbonisation pathway, but in identifying and integrating cleaner, greener methods of extraction with electric or hydrogen powered engines and minimising waste.'