We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedRisk

Mining: Balancing risk and reward

The ninth in the series: CFOs in the mining and raw materials sector must deal with daily risks

Article comments

“In this context of cost and schedule pressure, mining and metals companies delivering a portfolio of capital projects face a growing level of execution complexity and risk,” Paul Mitchell says in the EY report.

With such huge sums of money at stake, CFOs in the mining and raw materials sector must be on their guard, because, while Twain’s observation may not be truly accurate today, mining is an industry pitted with risk.

Top 10 mining trends for 2012

1. The cost of doing business: With commodity prices surging, accelerated production has become the mantra of most mining companies. The result is an increase in costs across the board.

2. Commodity-cost chaos: On top of prices being high, prices are volatile, making informed decision making in need of forecasting capabilities that “many companies lack”.

3. The battle to keep profits: Large public deficits are tempting governments around the world to increase tax, and the mining sector is a key target.

4. Restless stakeholders: As mining companies are increasingly in the media spotlight the need for transparency has never been so great. Corporate social responsibility is at the top of the agenda.

5. Labour pains: There is a chronic lack of the required skills in many of the far-flung regions mining companies are now doing business in. [Source: Deloitte]

Read also:

The first in the series - Media & Entertainment: The challenge for CFOs is to stay on top

The second in the series - Communications: Where CFOs face an uphill battle in an ever-changing industry

The third in the series - Retail: CFOs find their priority is all about the data

The fourth in the series - Financial services: The problem with bankers and regulators

The fifth in the series - Oil and Gas: Big gains but a high risk game too

The sixth in the series - Transport: Life in motion is rarely dull for finance chiefs

The seventh in the series - Manufacturing: Sparking a quiet revolution

The eighth in the series - Consumer goods: Recognising the need to improve forecasting


Recommended Articles


Mining: Balancing risk and reward

Managing the costs of arbitration when a deal goes wrong

Managing the costs of arbitration when a deal goes wrong

CFOs should be involved in international deal negotiations from the startmore ..

Home Depot confirms breach

Home Depot on Monday confirmed that intruders broke into its payment networks and accessed credit and debit card data of an unspecified number of customers who shopped at its U.S. and Canadian stores.more ..

Home Depot breach could potentially be as big as Target's

In what could turn out to be another huge data breach, Home Depot on Tuesday confirmed that it is investigating a potential compromise of credit card and debit card data belonging to an unspecified number of customers.more ..

EU fines Samsung, Philips and others for smartcard cartel

The companies exchanged sensitive commercial information on pricing, customers and contract negotiations, the Commission saidmore ..

The making of a cybercrime industry

And they're employing tried and tested above-board business methodsmore ..

Is there a bulwark against the rising pound for UK exporters?

Currency volatility has prompted a surge in the use of hedging tacticsmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..


* *