Operational complexity has emerged as the highest risk for the mining and metals sector heading into 2026, according to EY’s latest Top 10 Business Risks and Opportunities Survey.
The survey of 500 senior mining and metals executives from around the world, including 60 based in Australia, concluded that short-term, operational challenges such as productivity and cost control were top of mind for C-suite executives in the industry.
EY global mining and metals leader Paul Mitchell said that operational complexity ranked high not just because of “uncertainty”, but because executives have recognised they need to rethink traditional approaches as ore grades fall and operations deepen.
“As mines age or are replaced, complexity will inevitably increase, an issue exacerbated by the need to control costs and improve productivity,” Mitchell said.
“But miners who use this moment as an opportunity to accelerate innovation, including through the utilisation of digital and AI, will position themselves for growth when certainty returns.”
EY noted that predictable output is essential for maintaining investor confidence, with miners now prioritising cash generation, capital discipline, and technology-driven productivity improvements
EY Oceania mining and metals leader Michael Rundus said Australian miners are particularly focused on tackling bottlenecks such as regulatory compliance delays, material handling inefficiencies, and labour shortages.
“Australian mining executives highlighted digital transformation as the top capital allocation option, followed by transforming material sourcing, M&A, and vertical integration,” he said.
The report also found that while global investors are favouring productivity and cost efficiency over major mergers, many miners are exploring bolt-on acquisitions, joint ventures, and alternative financing such as royalties and streaming.
Additionally, artificial intelligence (AI) has become one of mining’s most significant investment areas, with one in five global executives planning to increase AI spending by more than 20 per cent over the next year.
In Australia, that figure is even higher, with 55 per cent of respondents expecting to lift AI investment compared to 51 per cent globally.
Mitchell said miners are now moving up the AI maturity curve, but warned that success depends on aligning technology with people and long-term strategy.
“AI isn’t something you just set up and forget about in mining. The companies that will get ahead are those that align digital initiatives, invest in good people, and build strong foundations for new ideas,” he said.
While environmental, social, and governance (ESG) issues have slipped in global ranking, the report warned miners not to neglect their social licence to operate (LTO), which remains the fifth-highest risk.
EY found that Australian miners are more confident in achieving net-zero goals than their global peers, with 55 per cent “very or extremely confident,” compared to 44 per cent worldwide. Executives surveyed also expect greater government intervention on ESG regulation.
Rundus said miners must maintain strong community relationships as governments tighten oversight.
“Australian miners expect more action by government on ESG regulation and increased requirements for stakeholder consultation,” he said.
Additional global risks highlighted by the report include geopolitical shifts, workforce shortages, and sustainability pressures.
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