The ability to access and replace reserves, including access to new projects, was the top perceived risk in the industry in 2016, moving up from second place in 2015 to displace commodity price risk, according to KPMG’s recent Insights into Mining survey.
Since 2014, KPMG has asked mining executives to rank 30 perceived risks in order to get a better idea of the challenges some of Canada’s largest miners face. The 2016 survey – conducted last September – polled 33 leading mining executives. KPMG used the feedback to compile the top 10 industry risks and assess multi-year trends.
The top two perceived risks – replacing reserves and commodity price risk – in 2016 were the same as in 2015. The industry has no control over commodity prices and due to the consumptive nature of the business will always have to replenish reserves, Heather Cheeseman, co-author of the survey, says in an interview.
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