The 21st edition of PwC's "Mine 2024" report offers a detailed analysis of the current landscape and future prospects of the global mining industry. Among other conclusions, the document highlights the fundamental role of major companies in the sector in addressing global challenges such as food security, the transition to a low-carbon economy, and the growing demand for infrastructure and consumer goods.
The report highlights a complex year for the global mining industry, despite increased production. In 2023, revenues were US$844 billion, a decrease of 7% compared to 2022, while EBITDA contracted by 26% to US$216 billion. Net profits fell by 44%, reaching US$89 billion. The outlook for 2024 is not optimistic, with an estimated revenue decline of 6%, a reduction in EBITDA of 21%, and a 36% drop in net profits.
Technological innovation, especially the integration of artificial intelligence (AI), is essential to improving productivity and sustainability in mining. AI-based systems are revolutionizing various aspects of mining operations, from precision in metal separation to logistics optimization. Additionally, urban mining or recycling of metals, such as copper and platinum group metals (PGM), is gaining importance, helping to reduce the environmental footprint and improve resource efficiency.
Mergers and Acquisitions (M&A)
Mergers and acquisitions continue to be a fundamental strategy for mining companies in their quest to maintain a competitive edge and secure essential resources for future growth. In 2023, the total value of deals in the sector increased, with a significant focus on critical minerals such as copper and lithium, essential for renewable energy applications and advanced technologies.
Similarly, M&A decisions are increasingly influenced by sustainability factors, which is why more and more companies are investing in renewable energy projects and decarbonization initiatives.
Commitment to Sustainability
The "Mine 2024" report highlights the critical role of mining in global food security. Essential minerals used in fertilizers, water treatment, and soil improvement are crucial for agricultural productivity. This is why mining companies are investing in sustainable technologies and processes, including renewable energies and efficient water use, to meet sustainability goals and improve operational efficiency.
The industry is adopting urban mining to reduce its environmental footprint and improve resource efficiency. Metal reprocessing reinforces responsible production practices, responding to the growing demand for environmentally conscious production methods.
"In a challenging global context, the adoption of innovative technologies and sustainable practices is not only crucial for the survival of the mining industry but also fundamental for its future growth. We believe that the integration of artificial intelligence and urban mining are essential steps towards a more efficient and responsible mining industry, aligned with sustainable development goals," concluded Leonardo Viglione, partner at PwC Argentina.
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Eramet Acquires 100% of Argentina’s Centenario Lithium Project
French company Eramet has completed the acquisition of Tsingshan Group’s 49.9% minority stake in Eramine Sudamérica, the subsidiary operating the Centenario project, a strategic resource in Argentina’s Lithium Triangle. The transaction, which impacts the Group’s net debt by US$699 million, grants Eramet full ownership of this key asset in its lithium expansion strategy.
McEwen Copper Secures Additional US$35 Million Investment From a Rio Tinto Company
Canadian company McEwen Copper, a subsidiary of McEwen Mining with operations in San Juan, has closed a new US$35 million investment made by Nuton LLC, a company led by Rio Tinto. "This investment is part of a previously announced financing offer, consisting of a private placement of up to 2,333,333 common shares at a subscription price of US$30 per share, for a total of up to US$70 million."
Posco Launches the First Commercial Lithium Hydroxide Plant in Argentina
Posco Argentina, a subsidiary of the South Korean mining company Posco, has taken a crucial step in developing the country's lithium sector with the inauguration of the first commercial lithium hydroxide plant. Located in the General Güemes Industrial Park in Salta Province, the plant has an annual production capacity of 25,000 tons and represents an investment of over US$800 million. "This facility positions Argentina as a key supplier in the global lithium-ion battery market, essential for high-end electric vehicles," provincial government officials stated.
San Juan: Sable Starts the 2024-2025 Field Season at the Don Julio Project
The exploration junior Sable Resources Ltd. has commenced its field activities at the Don Julio Project, located in the province of San Juan. The company, listed on the TSX Venture Exchange, has confirmed that all exploration expenditures for this project are fully funded under an Earn-In Agreement signed in 2021 with a subsidiary of South32 Limited.
With its Environmental Impact Statement, a new era begins in Hualilán
The Hualilán project received its Environmental Impact Statement for production. Sonia Delgado, Director of Challenger Gold and Vice President of Golden Mining S.A., comments on this significant date for the venture located in the Ullum department, San Juan province.
ARS 400 Million Investment to Upgrade 300 km of Mining Roads in San Juan
The project includes construction and expansion work on mining roads, with the objective of ensuring transit between mining areas of interest and local communities or production centers.
NGEx Kicks Off Phase 3 Drill Program at Lunahuasi
NGEx Minerals Ltd. announced that its Phase 3 drill program has begun at its 100%-owned Lunahuasi property located in San Juan province, Argentina. The Phase 3 program follows a highly successful Phase 2 program completed in the first half of 2024, which delivered some of the highest-grade copper, gold, and silver intercepts drilled anywhere in the world and confirmed that Lunahuasi has both unusually high grades and large size potential. Phase 3 drilling intends to grow the deposit through step-out drilling and provide enough closer-spaced data to develop an initial Exploration Target as provided for in NI 43-101.
Salta: Lindero Gold Mine Reaches its Quarterly Targets and Produces Over 70,000 Ounces in the Year
Lindero Mine, the first open-pit gold mine in Salta province, has reported strong performance during the third quarter of 2024, remaining on track with its annual gold production projections. During this period, gold production reached 24,345 ounces, a 6% increase compared to the previous quarter, largely due to higher ore grades and increased ore processing.
Argentina, at the Center of the Global Lithium Map?
The movements of a constantly evolving industry and the political-economic transformations are directly impacting the country's prospects and possibilities.
The Global Impact on Argentina’s Economy: A View From JP Morgan
Global volatility and its effects on Argentina were the central theme of JP Morgan’s analysis at the region’s largest lithium conference. The country's mining potential, fully influenced by international circumstances, and the need for swift decision-making on the domestic front.
Technology and Innovation: Adionics Inaugurated Its Lithium Plant in Salta
The French firm took another step toward the industrialization of lithium in the Lithium Triangle, this time in the province of Salta.
AI Symposium in Salta: A Space to Deepen the Advantages and Challenges of AI in Mining
With the presence of national and regional mining sector leaders, the second edition of the Symposium on Artificial Intelligence Applied to the Mining Industry will take place at the National University of Salta. Laplace (Argentine Mining Workers Association), Royón (Lithium Task Force), Cacciola (Argentine Chamber of Mining Companies), and representatives from companies and industry chambers will be present.