A Digital Strategy Must Be Thoroughly Planned: EY

Q: Which of your services best aligns with the needs of the mining industry?

A: EY has over 10,000 professionals engaged in various mining-related services worldwide. Several years ago, we established the Mining and Metals Center of Excellence for the Americas.

The Center of Excellence in Mining and Metals at EY is a specialized division within the global professional services organization, focusing on the mining and metals industry. This center assembles multidisciplinary teams of experts who provide strategic insights and consultancy services to companies within this critical sector. Their mission is to assist client organizations in grappling with complex market challenges such as price volatility, regulatory demands, technological innovation, operational risks, and environmental, social, and governance (ESG) issues.

By operating in a globally integrated capacity, the Center of Excellence in Mining and Metals at EY disseminates best practices and specialist knowledge on key matters concerning the mining and metals sector. This includes areas such as ESG, operational efficiency, cost optimization, digital transformation, capital projects and assets management, and more.

The center’s key service lines are:

• Technical Mining Services: Advising across the mining lifecycle, from exploration to production, to enhance operation efficacy and sustainability.

• Operational Technology and Asset Management Solutions: Deploying advanced technological solutions that not only boost efficiency and safety but also optimize the lifespan and performance of physical assets critical to mining operations.

• Digital Solutions and Artificial Intelligence: Applying digital technology and AI to transform raw data into valuable insights, thereby improving decision-making processes, optimizing mining operations, and increasing productivity. 

• Sustainability and ESG Strategies: Assisting businesses in adopting sustainable practices that align with ESG standards, thereby constructing operations that are more resilient to stakeholder expectations.

In addition to these specialized offerings, the Center of Excellence forms critical partnerships with innovation and mining development centers such as the Mining Hub in Brazil and Norcat in Canada. These collaborations extend to specialized service providers, industry engineering firms, universities, mining associations, and other interested stakeholders. These partnerships are pivotal in enhancing trade knowledge, pioneering innovation, and promoting the uptake of advanced solutions and sustainable practices within the mining and metals sector.

Moreover, EY provides a suite of traditional services including audit and assurance, consultancy, strategy and transactions, alongside tax and legal services, all tailored to the specific challenges faced by the mining and metals industry.

In summary, the Center of Excellence in Mining and Metals at EY stands as a trusted partner for companies in the industry, guiding them towards achieving their business goals in an ever-dynamic and increasingly complex global environment. Through its strategic partnerships and extensive range of services, the center is a key player in aiding businesses to navigate and flourish in the constantly evolving mining and metals landscape.

Q: What are the most commonly quoted concerns among Mexican mining companies approaching EY?
A: EY study of the "Top 10 Risks and Opportunities in Mining and Metals" is an annual report produced by EY, synthesizing insights from a wide-reaching analysis that involves mining executives, internal and external industry experts, as well as relevant data from across various geographies, minerals, and metals.  

ESG considerations have been at the forefront of our annual survey on business risks and opportunities, standing out for the third consecutive year as relevant across all sectors. This relevance is echoed in Mexico, where the management of natural resources, such as water and energy sources, is especially critical. Efficient and sustainable resource management is not only vital for meeting environmental standards but is also intricately linked to securing the operational license. Moreover, this responsible management is directly connected to social issues and climate-related actions, as the community and environmental impact of resource use are increasingly scrutinized.

Furthermore, governance plays a pivotal role as it relates to these aspects, underpinning the need for systematic and transparent approaches to ESG. Robust governance ensures that the strategies implemented for natural resource management, social engagement, and climate change mitigation are effective and accountable. For organizations operating in Mexico, exemplary ESG practices are becoming essential criteria for obtaining the license to operate. They also serve as key attractors for capital investment; investors are actively seeking out companies that can demonstrate transparency and decisive actions in managing their environmental impact and contributing positively to societal and climate change issues.

Digital transformation is swiftly becoming a cornerstone in the evolution of modern businesses, and in the mining industry of Mexico, its importance is especially pronounced. The country faces the dual challenge of managing natural resources effectively, particularly in the face of water scarcity, and preparing for a burgeoning demand for strategic metals. Digitalization is the catalyst that can transform these challenges into opportunities, significantly bolstering productivity and reducing operational costs, which are essential for sustainable mining practices.

By embracing digital technologies, the Mexican mining sector can accelerate the exploration and development of new reserves, making processes quicker, more efficient, and more cost-effective. Furthermore, digitalization plays a pivotal role in enhancing ESG management. Robust digital systems provide precise tracking and real-time monitoring of environmental impacts, streamline reporting, and ensure adherence to social and governance standards. This level of management through digital tools assures investors that risks are well-managed, imbuing them with confidence to invest securely.

In summary, the integration of digital technologies is not merely an operational upgrade; it is a transformative force that reshapes every aspect of mining operations, from ESG compliance to productivity enhancement and cost reduction, laying the foundation for a sustainable and forward-looking mining industry in Mexico.

Q: What strategies can mining companies implement to balance the need for extracting minerals with ensuring cost-effective operations? 

A: In the face of an ever-changing global landscape, mining companies must adapt and evolve to ensure their longevity and profitability. This adaptation involves a multifaceted approach that touches on everything from financial strategies to the embrace of technological innovation.

To begin, there is a pressing need to reconfigure supply chains in order to meet the stringent requirements set by ESG imperatives. For mining companies, this means ensuring operations are sustainable in the long term and designing supply chains to minimize the carbon footprint. By doing so, companies not only fulfill their societal role but also establish more sustainable and cost-effective practices—a win-win for both the company and the community at large.

Next, mining companies must rethink access to capital. In a market where investor confidence is paramount, establishing an asset footprint that simultaneously mitigates risks and heightens investor returns is essential. This prudent financial structuring can lead to enhanced resource efficiency and strengthen the overall financial health of the company.

A critical part of this evolution involves reassessing operational models to emphasize innovation and the adoption of new technologies. Shifting the organizational mindset in this manner allows companies to unlock remarkable value. Scorning complacency, these firms can thereby drive down costs and elevate operational efficiency, ensuring they remain competitive in a world where technology is in constant flux.  Special attention to cyber risks affecting both IT and OT systems.

It is also vital for companies to speed up productivity gains while simultaneously reducing operational costs. Delivering metals in a way that is more reliable, faster, and competitively priced is key to staying ahead. Concentrating efforts on maximizing asset productivity and vigilant cost management can achieve this aim and propel a company to the forefront of the industry.

Lastly, the integration of geopolitical risk into strategic planning cannot be overstated. The mining industry does not operate in a vacuum; global events can have immediate and impactful reverberations throughout the sector. By establishing robust ties with government entities and relevant stakeholders, mining companies can navigate these waters with greater agility and foresight.

Through these strategies, mining companies can not only weather the storms of disruption but can also ride the waves of change to a more sustainable, efficient, and profitable future.


EY is a leading global organization that provides audit, tax, and consulting services. It serves clients across a wide range of sectors, leveraging its expertise to provide insights and solutions.