Market and product

The mining and metals industry—one of the world’s oldest and most traditional industries—is undergoing a historic transformation. Beyond merely meeting the growing demands of the global economy, the sector is redefining its role: shifting from extraction to responsible resource stewardship, and contributing to the resolution of urgent challenges such as climate change and geopolitical instability.

The Invisible Link Shaping Humanity’s Future

A seemingly unrelated question: What do agriculture, electric vehicles, and artificial intelligence have in common? The answer lies in the minerals that make them possible. Steel, copper, phosphates, and aluminum form the backbone of the global technological revolution—from electrified transport and advanced agriculture to infrastructure development and critical energy technologies.

Demand for these minerals is rising at an unprecedented pace, compelling the mining and metals industry to transform in a comprehensive and multidimensional way. This is not only a challenge but also a historic opportunity for the sector to play a central role in sustainable innovation, resource management, and global progress.

A Wave of Technological Innovation: From Incremental Improvement to Transformational Breakthroughs

Redefining the Nature of Innovation

For decades, mining was not widely recognized as an innovative industry. Technological advances were largely incremental, focusing on process optimization—primarily to reduce costs and, more recently, to improve environmental performance—without delivering truly transformative change.

However, data from the World Intellectual Property Organization (WIPO) tell a very different story. The number of mining-related patents filed between 2006 and 2018 increased by 41% compared to the entire period from 1970 to 2005. This growth not only reflects rising interest but also signals a fundamental shift in how the industry approaches innovation.

This trend is further reinforced by the rise of open-innovation initiatives that leverage external knowledge and technologies to accelerate idea development. Companies are making organizational changes to embed innovation into day-to-day operations. In 2024, the World Economic Forum launched an open-innovation challenge for the mining sector, attracting more than 100 solutions from startups and universities, all contributing new knowledge to transform industry practices.

The Automation and Artificial Intelligence Revolution

Automation and machine learning (ML) are pushing the industry beyond traditional expectations. Recent innovations include fully automated mining operations—from autonomous haul trucks and drone-based surveying to AI-driven predictive maintenance and resource optimization. These solutions have significantly improved safety and operational efficiency.

If these technologies continue to develop at the pace seen in other sectors, the mining and metals industry—and the activities along its entire value chain—could be completely transformed.

Biomining: A Breakthrough Inspired by Nature

One of the most revolutionary innovations is the expanding application of biomining—the use of microorganisms to extract metals from ores or mine waste. Although introduced more than 60 years ago, and with over 20% of global copper production already derived from microbial or biochemical techniques (bioleaching), these technologies are now advancing rapidly and may have a far greater impact than previously imagined.

In particular, biomining is unlocking value from low-grade ores that were once economically unviable. Traditional leaching processes extract valuable metals by dissolving them in liquid solvents—often chemical solutions—breaking down metal compounds and carrying the dissolved metals away.

The key shift lies in replacing chemical solutions (often containing cyanide or sulfuric acid) with living organisms. Overall, this approach poses fewer environmental risks, reduces energy consumption, and recovers higher quantities and qualities of minerals—including metals that were not previously targeted. New technological pathways are also being explored, such as using plants’ natural ability to concentrate minerals and extracting minerals from diverse sources.

Challenges on the Path to Innovation

Despite its vast potential, the innovation journey still faces several hurdles:

• Many solutions must be further developed into commercially viable processes—and, crucially, deployed at scale to achieve real impact.

• Looking ahead, the mining and metals industry must shift from isolated technological advances to integrated, solution-based approaches. By fostering collaboration, the sector can drive deeper, more systemic transformations to address broader sustainability challenges.

• Ultimately, the industry and its ecosystem must continue to advance innovative solutions. Building greater trust among stakeholders—including academia, the private and public sectors, and the financial community—will be critical to success.

From Extraction to Stewardship: Redefining the Industry’s Role

Expanding the Boundaries of Responsibility

Mining and metals companies are taking on responsibilities that extend beyond extraction and refining—the traditional core of the industry. The sector is expanding its capabilities into recycling and nature-positive practices, potentially redefining its role across the entire value chain. It is no longer merely a supplier, but a steward of resources that enable sustainable technologies and industries worldwide. This reinforces the idea that metals and minerals can continuously contribute to the global economy.

The Circular Economy: From Theory to Practice

Mining companies are increasingly adopting recycling processes that reintegrate metals into supply chains and enhance secondary-use opportunities. Given that metals can be recycled almost indefinitely, the sector is well positioned not only to lead but also to gain a competitive advantage.

Several companies have already entered this space—developing new recycling capabilities and partnering with key stakeholders to improve recycling processes and create closed-loop solutions. According to the International Energy Agency (IEA), secondary supply is expected to account for a growing share of total demand for key minerals between 2023 and 2040 under the Net Zero Emissions (NZE) Scenario.

ArcelorMittal and Nucor are among the companies with extensive experience in steel recycling. Rio Tinto is establishing closed-loop recycling systems and internal capabilities to recycle post-consumer aluminum scrap. Vale SA has begun delivering production through circular processes at its operations in Brazil, while Vale Base Metals is introducing “Circular Solutions” for downstream customers. Glencore and SQM are pursuing battery recycling, and other leaders include Anglo American, Norsk Hydro, Umicore, Johnson Matthey, and Aurubis.

Recent regulations, such as the Critical Raw Materials Act (CRMA), are encouraging companies to adopt circularity. The Act sets a target for the EU’s recycling capacity to meet at least 15% of annual consumption of each strategic raw material by 2030. These advances are increasingly important in a world where electronic waste—rich in valuable metals—is the fastest-growing waste stream.

Commitment to Nature and Communities

Mining and metals companies are also increasingly implementing land and water restoration strategies, renewable energy use, ecosystem health initiatives, and nature-positive principles. The World Economic Forum is developing guidance to help mining companies deliver biodiversity-positive outcomes, showcasing practical examples and solutions applicable across landscapes, value chains, and systems.

Moreover, understanding the economic value of environmental assets and ecosystem services—such as freshwater, carbon sequestration, and flood protection—and integrating this understanding into business decision-making can strengthen the business case for action on nature.

A Clear Action Roadmap

The industry must ensure responsible management of minerals and metals throughout their entire life cycle. Moving forward, it must take clear steps to position itself as a resource steward:

• Investing in end-of-life material recovery technologies and working with manufacturers and recyclers can ensure metals are continuously reprocessed, reducing the need for new extraction and minimizing environmental impact.

• Circularity requires more than recycling. There remains significant room to improve the integration of circular principles into mining operations to reduce waste. Beyond recycling, designing for circularity is a largely untapped opportunity. More importantly, a mindset shift across the value chain will be necessary to accelerate circular practices. There is a strong business case—and the mining industry should take the first step.

• Decarbonizing value chains and meeting emissions-reduction targets through cleaner energy technologies and energy efficiency will be critical.

• Resource stewardship demands a holistic approach. Larger companies, working with governments and stakeholders, can help address the unique challenges of artisanal and small-scale mining (ASM), fostering a more inclusive and sustainable mining ecosystem.

IEA data show that ESG (Environmental, Social, and Governance) performance indicators improved from 2019 to 2022, reflecting the industry’s growing commitment to sustainable responsibility.

The Three Pillars of Sustainable Transformation

To drive meaningful transformation toward technological breakthroughs and resource stewardship, the mining and metals industry must leverage a range of enabling factors—from forward-looking policies and robust regulatory frameworks to collaborative partnerships, innovative business models, and strategic capital allocation. This transition is unfolding amid geopolitical shifts, regulatory pressure, community expectations, and environmental challenges, making adaptability and resilience essential.

Pillar 1: Collaboration and Innovative Business Models

Deploying technological innovations, increasing metal recovery, and achieving holistic transformation cannot be accomplished through isolated efforts. Collaboration is shaping how innovation penetrates the industry. Joint initiatives to scale new technologies are delivering project-level benefits and enabling the sector to address economic and environmental challenges on a global scale.
Collaboration between mining companies and technology providers has intensified to develop targeted solutions. For example, BHP and Rio Tinto partnered to accelerate the first trials of Komatsu’s and Caterpillar’s battery-electric haul trucks in 2024.

Amid potential mineral shortages and supply-chain disruptions, joint ventures and vertical integration have proven effective for risk management in large-scale projects. Collaboration across the value chain is also increasing. Offtake agreements highlight the importance of mineral provenance for downstream industries, while integrated supply-chain approaches can streamline processes and improve demand planning.

Automotive companies such as Mercedes-Benz, BMW, and Volkswagen are securing long-term supplies of battery minerals and other critical materials, while signaling demand for cleaner products. Agricultural partnerships are tailoring mineral solutions to support sustainable farming practices. Technology companies are likewise prioritizing secure access to both minerals and critical energy sources to ensure operational resilience.

Pillar 2: Progressive Policies and Robust Regulatory Frameworks

Policy and regulation play a pivotal role in shaping and enabling the industry’s transformation. Governments are increasingly taking a more active and forward-looking role in mineral markets. Many have introduced new policies to strengthen regulation, improve access to resources, reinforce infrastructure, and support development—significantly influencing industry operations.

Flagship policies such as the Inflation Reduction Act (IRA), the Critical Raw Materials Act (CRMA), and the CHIPS and Science Act have strengthened mineral supply security. From 2020 to 2022 alone, more than 100 new policies were enacted worldwide, reflecting growing recognition that policy intervention is essential to meet the needs of the energy transition in a sustainable and responsible manner.

Nevertheless, additional policy support will be required to decarbonize the sector. Greater collaboration between companies and governments can also help develop projects. Engagement with policymakers underscores the industry’s commitment to securing broader support and adopting a more collaborative approach to its role. Through these partnerships, the sector can help shape policies for sustainable development, ethical sourcing, and emissions reduction—delivering long-term benefits and reinforcing its role as a force for positive societal impact.

According to EY, the top risks and opportunities for mining and metals companies in 2025 show a significant shift from 2024, reflecting the sector’s increasingly dynamic landscape.

Pillar 3: Strategic Capital Allocation and Sustainable Finance

Shifting stakeholder expectations, resource scarcity, and climate concerns are driving a move toward sustainable finance—and the mining and metals industry is no exception. Financing strategies for mining projects are evolving to support initiatives that deliver positive impact, long-term sustainability, and financial returns.

As a capital-intensive industry, mining requires substantial additional investment to meet these evolving demands. To satisfy growing global needs, annual investments of USD 300–400 billion will be required through 2030. Unsurprisingly, capital is the most prominent risk reported by senior executives, reflecting heightened investor scrutiny and challenges in accessing sustainable finance.
To overcome these challenges and drive sustainable growth, innovative financing models that integrate diverse funding sources and actively engage multiple stakeholders will be essential. While traditional financial institutions will continue to play a role, local and regional financiers will be critical given mining’s localized impacts.

Multilateral development banks and governments are increasingly key to de-risking investments through guarantees and value-chain support, making mining projects more attractive to investors. Ultimately, international investors will be vital in providing liquidity and flexibility, ensuring the industry has access to scalable and adaptive financing.

A Vision for the Future: Mining as the Foundation of Global Progress

A “moving together” approach must gain greater momentum across the industry—fostering the resilience, accountability, and productivity needed to meet evolving expectations. As the world increasingly demands both sustainability and technological progress, the mining sector is poised to transform far beyond traditional extraction and processing.

Evolving from a mere source of raw materials, the mining and metals industry must become a secure, responsible provider of critical resources—working collaboratively across sectors to address pressing global challenges related to climate, energy, agriculture, infrastructure, and beyond. By advancing environmental and social responsibility, the sector can help create an efficient and accountable future, positively influencing socio-economic systems worldwide.

This vision redefines mining not as a single step in the supply chain, but as a foundational pillar of global progress. Mining has the power to uplift communities, create jobs, and foster partnerships in underserved regions, setting benchmarks for resource stewardship and environmental governance.

As the world moves toward low-carbon energy, smarter cities, and sustainable food systems, mining can lead by example—championing a collaborative, resilient, and sustainable future in which industry progress aligns with the needs of society and the planet.

Note: This article provides an overview of transformative trends in the mining industry, with a particular focus on technological advances, sustainability initiatives, and their connections to global systems. It does not specifically address the unique challenges and contexts of artisanal and small-scale mining (ASM), which require distinct approaches to address their specific social, economic, and environmental conditions.