**Global:** Three PwC mining leaders from Australia, South Africa and Chile warn of a turbulent outlook due to tariffs and market upheaval, highlighting copper’s resilience and lithium’s risks while emphasising the critical role of cross-border partnerships for future industry stability.
Three global leaders from the consulting firm PwC, representing Australia, South Africa, and Chile, convened to discuss the current state and future outlook of the global mining sector amid rising concerns over tariffs and market fluctuations. They highlighted the resilience of copper, particularly noting its diverse industrial applications, and provided insights into the potential challenges facing lithium as an emerging commodity.
Fran Wentzel, partner at PwC Australia and Global Mining Leader, expressed that the rapid changes seen in the first 100 days of the current U.S. administration signal a turbulent period for the mining sector. He stated, “I don’t think we can rule out tariffs being imposed on any commodity,” emphasising the importance for the mining industry to brace for the potential implementation of tariffs across the board.
Andries Rossouw, representing PwC South Africa, remarked on the broader economic implications of a tariff war, suggesting that even without direct tariff imposition, the effects on global growth could diminish demand for metals, thereby impacting prices and overall industrial performance. He pointed out that the next six months would be critical for understanding these dynamics more clearly, noting, “In six months, perhaps the dust will settle and we will have a clearer view of the horizon,” echoed by Germán Millán, the mining consulting leader at PwC Chile.
Focusing on specific minerals, the PwC partners collectively regarded copper as a stable choice for investment due to its widespread utility across various sectors. Millán pointed out that “in this world of uncertainty, partnerships between public and private sectors, companies, and even countries can only help improve your position.” They predicted that the amount of investment in copper is expected to increase, particularly in South America, where significant exploration activity is underway, especially in Argentina.
Conversely, lithium’s future is tethered to consumer choices, notably in electromobility, with the potential for new price cycles hinging on global trends. Rossouw cautioned that although lithium has seen growing interest, it has a more confined range of applications primarily within batteries and electric vehicles, contrasting with copper’s broader demand.
The discussion also delved into the significance of regional collaborations in enhancing the mining value chain. Wentzel underscored the interconnectedness of markets, particularly Australia’s reliance on China, which imports 90% of its mineral production. This relationship mirrors those of other nations, including Chile, emphasising the delicate balance required in international trade and diplomacy.
On the African continent, Rossouw identified opportunities for partnerships among nations like Congo, Zambia, and Zimbabwe to address infrastructure challenges, crucial for processing minerals. He cited plans for a two-way railway linking Congo and Angola, which could significantly expedite export times to the U.S. and Europe by reducing shipping durations by two weeks.
Millán stressed that in today’s uncertain environment, finding stable partnerships is essential. He raised pertinent questions for Chile regarding collaborative strategies for exporting lithium and enhancing copper smelting capabilities, particularly in terms of infrastructure improvements.
The consensus among PwC’s leaders is that the future of the mining industry will likely hinge on increased collaboration, framed by joint ventures and partnerships as the primary drivers of value creation and strategic resilience. Wentzel concluded, “I don’t see a long-term future where another giant like BHP or Rio Tinto emerges; rather, the future will be more about collaborations and partnerships.”
Source: Noah Wire Services
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