Mining companies are stronger now than they were at the beginning of the year, says PwC Canada’s new mining report. With fluctuating commodity prices, the top priorities for Canadian mining companies in 2017 are capital allocation, strategic deal making, and employing new technology and innovations for sustainability.
“The recent prolonged downturn unearthed many vulnerabilities, such as the use of antiquated technologies,” says Liam Fitzgerald, national mining leader at PwC Canada. “However, this presents an opportunity to invest in innovation.”
Current and future demonstrations of innovation include:
- New practices. Some companies use an electricity and battery-powered underground fleet to eliminate greenhouse gases, and they reduce energy and water consumption through improved mineral-recovery processes.
- New relationships. Working with First Nations, companies create direct employment and opportunities for local businesses.
- Improved efficiency and safety. In 2017, companies plan to introduce new technologies that help digitize and automate processes. This movement beyond the status quo is accomplished through new partnerships.
The 230 mining companies listed on the TSX represent 11% of the market’s $2,596 billion market capitalization (as of August 31, 2016), a 3% increase of the sector from the previous year, reveals the report. Most of those have market capitalizations of less than $150 million; the majority of value remains with the mining companies worth more than $1 billion.
Read the full report here.
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