Miners stepping up tech investment: White & Case survey


Staff reporter

Most respondents to a mining and metals 2025 outlook survey by global law firm White & Case see miners stepping up investment in “the tech space” this year, “though their capital spend will grow from a low base”.

The firm’s ninth annual survey of industry participants – this year involving 112 decision makers in the mining and metals sector – indicated technology was at the heart of miners’ investment plans for their social license to operate.

More than three-quarters of respondents cited “some form of tech deployment, investment and IP acquisition” as the most effective responses to decarbonisation pressures.

“Mining and metals firms are also part of the AI boom, incorporating it into mine planning, smelting and refining optimisation, safety and exploration technologies,” White & Case said.

“Improvements to productivity will be critical for miners practicing capital discipline and protecting dividends given market prices and balances, but the potential to increase supply from existing operations and improve yields at brownfield expansions or greenfield projects will help close expected supply gaps for copper and other metals forecast to fall into deficit in the medium-term.”

White & Case said AI’s potential to realise operational gains for production and mitigate accidents and other risks “adds another wrinkle to the management of market gluts”.

“One respondent notes miners will conduct more VC tech acquisitions because VC deals are critical to secure access to disruptive technologies used for greenfield projects,” the firm said in its report.

Its authors said geopolitics fragmenting markets was overwhelmingly cited by respondents as the strongest trend driving activity in the sector in 2025.

“As markets fragment sector participants face a new reality,” they said.

“There is no single market, nation or unifying trend driving activity.

“Companies and sector investors face competing, diffuse push-and-pull factors.

“If 2024 was a race to lock in financing, projects, or partnerships ahead of volatility, in 2025 firms will operate on a chessboard with swiftly changing rules.”

Intensifying trade wars, growing scrutiny on M&A and FDI, and market gluts driven by weaker demand growth in China and Chinese sponsors’ supply response would all influence the rule changes.

“Though the IMF is still forecasting 3.2% global GDP growth in 2025 the synchronised slowdown of growth in China, the US, and Europe, a stronger dollar and slower US rate cuts, and potential yuan devaluation, pose headwinds for metals prices and asset values,” White & Case said.

 

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