How Australia’s miners can catalyse huge value creation in the coming decade

First, the good news. A shakeup of the global economy in the next decade will trigger a surge in demand for products mined from the earth. Traditional industries as we know them—with vertical, linear value chains—are set to transform into domains centred on fundamental human needs: how we move, how we make and build things, how we feed and care for ourselves, and how we fuel and power society.

Now for the even better news. PwC research and analysis shows how this great restructure of the global industrial system could produce broader, deeper value pools for Australia’s mining companies. In fact, we estimate that a reconfiguration of the global mining and quarrying sector (valued at US$3.28tn in 2023) could yield US$4.23tn of total value by 2035.

However, to reap the rewards of tomorrow’s transformational changes, mining companies need a shift in mindset today. Because as industries reshape into these ‘domains of growth’, companies will be defined not by what they produce, but by the problems they solve. This will require far greater integration between miners and the organisations they interact with—from chemical and industrial manufacturers to tech companies to all the other players along the value chain.

In such a capital-intensive industry, with long life cycles, Australia’s miners must be prepared to play an active role in unlocking these expanding and interconnected domains. In this article, we explain how Australia’s mining companies can turn this extraordinary decade to their advantage.

The Asia Pacific region’s rapid urbanisation and increasing population will be at the centre of global growth in the decade ahead. Australia’s mining companies must seek to diversify and deepen their relationships in emerging markets (e.g. India, Vietnam, Thailand) which are hungry for infrastructure, capital, and importantly—minerals.

PwC research reveals the staggering size, scale and possibilities for Australia’s miners in the Asia Pacific in the next decade:

• Today’s gross value add (GVA) available to miners in the Make domain of US$555bn is anticipated to hit US$773bn by 2035.
• GVA available in the Fuel & Power domain, currently around US$407bn, is forecast to grow to US$567bn by 2035.
• GVA available in the Build domain is anticipated to grow from US$24bn to US$34bn by 2035.

Geopolitics and government policy will have an increasing impact on where miners can set up their operations, and into which markets they can sell their product, with which tariffs. So, Australia’s mining leaders need to contribute to targeted, collaborative government regulation and deepening regional economic ties.

For Australia’s mining companies to create value for stakeholders in the emerging world of domains, they need to future-proof their businesses. And we have already seen encouraging developments.

In 2023, the Australian Government launched its Critical Minerals Strategy with a vision to diversify mining production and resource locations. And minerals companies are contributing towards Australia’s commitment to meet the UN’s 2050 net-zero emissions target by investing in clean energy and infrastructure to decarbonise production. Miners are also exploring potential roles in emerging innovations such as iron air batteries, and green iron and steel.

Furthermore, in a high-labour-cost environment, leading miners are investing in automation and investigating how AI will help to redefine extraction, safety, and efficiency. For example, BHP and Microsoft have partnered to harness AI and improve the copper grade recoveries at BHP’s Escondida operations.

These are early indicators that Australia’s miners can rise to the global economic reset that’s coming. From here, the task will be to move further and faster.

This will require a fundamental rethink of traditional business models, products, and services. And this may not come naturally to some miners. Over the past five years only 28% of global mining CEOs¹ have competed in new sectors—10% less than their global peers.

Decisions need to be made either to go downstream by directing investment into other industries, or to seek partnerships and joint ventures with innovators and customers. Long and short-term pressures such as labour, capital, governance and regulation must also be considered—not to mention the trajectory of commodity prices and demand in the Asia Pacific.

There are more signs that Australia’s miners are up to this challenge. Some larger enterprises are already seizing opportunities as they evolve from core operations to commodities of the future (e.g. iron ore majors diversifying into emerging growth minerals and products, and lower-carbon energy).

And while some mid-tier companies remain focused on pure plays (e.g. gold), others are pursuing critical minerals exploration where there are many opportunities to grow supply. For example, Australia has 16% of global cobalt reserves² but accounted for just 1% of 2024 global production.

To address challenges of scale, pioneering mid-tier firms are collaborating and diversifying. Partnerships are being established with global customers and supply chains, and joint investments are being made to nurture emerging supply chains. Fortescue, for example, is pursuing a joint venture with OCP group for green energy in Morocco. And Lynas has invested in processing at its rare earths facility in Kalgoorlie, connecting local processing with supply chains closer to customers in Southeast Asia.

We’re also seeing mergers and acquisitions (M&A) activity to increase capacity, build competence, and improve resilience to volatility in markets and supply chains. For example, Pilbara Minerals’ acquisition of Latin Resources, which owned the Salinas Project in Brazil, diversifies its lithium portfolio beyond Australia.

In an industry that requires long-term timelines and capital investment, Australia’s miners must make strategic decisions now to ensure they can take advantage of the opportunities and mitigate the risks created by systemic change.

As demand increases for critical minerals, the appetite for other mined commodities will be further heightened as industries reconfigure into domains of human need. For example, in the Make domain, virtually all manufactured goods will contain inputs from mining; in the Fuel & Power domain, essential minerals will be required for renewable energy and storage technologies; and in the Build domain, numerous mined commodities will be required in construction projects.

To build on the momentum we’ve described above, mining companies should revisit three core strategic areas: sustainability, collaboration and technology.

In the decade ahead, we expect to see leading Australian miners further reduce dependency on single markets or materials. To do so, they will build on their core capabilities—picking the right commodities, identifying deposits and mining them efficiently—to pursue opportunities in emerging minerals essential for the global push towards decarbonisation.

Australian miners can turn this to their advantage by:

• Engaging in growth domains that provide benefits to the climate and to broader society.
• Consolidating supply chains and competing internationally as rock-solid providers of sustainable, ethically sourced minerals that come with a strong safety record.
• Pursuing innovations to further minimise the carbon emissions and environmental impacts of operations, while engaging with local communities to deliver shared value for all.
• Diversifying into new minerals that align with the global energy transition and expanding into new regions to reduce concentration risk.

As industries reconfigure and miners diversify into new markets and minerals, companies should consider the role they want to play in new supply chains and seek collaborations with players in other sectors to serve emerging domains of human need. Examples might include:

• Supporting downstream research, development and commercialisation of mining products (e.g. platinum group metal producers supporting hydrogen initiatives).
• Collaborating with host communities and government to improve mutually beneficial infrastructure (e.g. transport, water, electricity, education, health) to strengthen mines’ long-term sustainability.
• Partnering with the tech sector, universities and education institutions to encourage young digital natives to pursue mining careers.

In the coming decade, there is huge potential for technology advancements to further improve mining equipment performance, allowing for higher output with reduced resource consumption and improved safety. Priority considerations for miners include:

• Attracting and retaining skilled technologists. PwC’s 2025 Global AI Jobs Barometer survey shows demand for AI-augmented roles in mining increased by 135% between 2019-2024. This survey also finds that mine workers with AI skills command a 15% wage premium.
  
• Technology-driven M&A and partnerships to fast-track productivity and performance.
• Unstaffed autonomous vehicles in remote operations to reduce operator risk, improve productivity and increase equipment operational uptime.
• Innovations like remote sensing, drones, and digital twins to optimise exploration and extraction, making them more precise and less invasive.
• Due to the capital-intensive, long-life-cycle nature of mining, large-scale technology changes should first be implemented at new mines. Existing mines should then consider specific areas of adoption where it makes economic sense.

To seize the potential in the decade ahead Australia’s miners must act decisively. As global megatrends create new opportunities, it is imperative to broaden horizons, foster collaborations, and prioritize innovation. By integrating with diverse sectors and aligning with critical mineral strategies, our mining industry can redefine its role in the global economic landscape. The time to future-proof operations and pivot towards sustainable, value-creating models is now.