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Pandemic sways mining concerns

unexpected misfire

Australian miners have revealed climate change and natural disasters as two of their key concerns in KPMG’s latest mining risk report.

These concerns, along with commodity price risk, were conveyed by 46 per cent of respondents.

KPMG partner and mining risk specialist, Caron Sugars said that profound change had occurred since January when the company conducted its 2020 global mining risk survey.

“… Responding to the challenges of a global pandemic has driven the mining sector’s immediate planning, decision making and risk mitigation factors,” she said.

“The risks created by the global COVID-19 pandemic have been broad and varied. For Australia, our mining risk forecast shows that most obviously there has been the impact on the physical and mental health of the mining workforce and mining communities.”

Sugars urged mining companies to ensure cyber risk was more closely addressed as an increasing number of people were working remotely.

In addition, 38 per cent of respondents named price risk emanating from global trade war as a key concern.

This was followed by the price risk caused by economic downturn, representing the sentiment of 35 per cent of respondents.

“A key theme of this year’s Australian mining risk forecast is transition: the Australian mining sector now finds itself at a transition point,” Sugars said.

“Miners must closely monitor and manage the ongoing health crisis prevented by COVID-19 but mining executives must also continue their focus on the medium to long term.”

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