The Australian mining industry is at a pivotal juncture, poised to play a leading role in the global transition to renewable energy.
According to BDO’s ‘Annual Mining Report 2025’, the Australian mining sector’s future is intertwined with the increasing demand for critical minerals, including copper, rare earths and lithium.
These materials are essential for powering renewable energy technologies, and their demand is expected to nearly triple by 2030 before quadrupling by 2040.
BDO global leader of natural resources and energy Sherif Andrawes said the surge in demand creates opportunities and challenges for mining companies.
“The mining sector stands at a crossroads,” Andrawes said.
“While the push toward clean energy solutions is essential, the industry must balance the urgent demand for critical minerals with the need to innovate sustainably and uphold its social responsibilities.
“To remain competitive in this rapidly evolving landscape, mining companies must focus on four key areas: technological innovation, economic and social impacts, health and safety, and future workforce planning.”
Technological advances will be crucial to meeting the growing demand for minerals and the industry’s commitment to sustainability. The adoption of artificial intelligence (AI), automation and data analytics has the potential to transform the sector.
“These technologies are not only improving operational efficiency but also enhancing safety standards and reducing the environmental footprint of mining activities,” Andrawes said.
“The integration of AI and automation can be a game-changer for the industry. These tools enable us to mine more efficiently, with fewer resources and in safer environments.”
A focus for the Australian mining industry is the opportunity to move up the food chain and develop an onshore processing industry. There is a real need to develop this capability to diversify and secure supply chain issues.
Mining companies must also consider the social and economic impacts of their operations, especially as they face increasing scrutiny from local communities, regulators and investors.
Andrawes emphasised that proactive community engagement is essential to avoid reputational and operational risks.
“Failure to address local concerns can lead to significant legal and operational challenges,” he said.
To foster sustainable growth, Andrawes believes mining companies must adopt strong environmental, social and governance (ESG) practices.
“These efforts should focus on creating positive relationships with local communities and ensuring that the benefits of mining extend beyond the extraction of resources,” he said.
“Long-term success in the mining industry depends on how well companies invest in the communities and environments where they operate.”
Furthermore, improving health and safety standards remains a top priority for the mining sector.
The BDO report highlights the role of AI and automation in enhancing worker safety by reducing human error and improving conditions in high-risk environments.
“Technology is helping to mitigate risks and ensure safer working conditions for miners,” Andrawes said.
“As the industry faces increased demand for minerals, maintaining a strong focus on health and safety will be key to sustaining productivity and ensuring worker well-being.”
However, a key challenge for the mining sector is attracting and retaining the next generation of workers. As the demand for skilled workers intensifies, particularly in the face of workforce shortages, companies must prioritise workforce planning, diversity and inclusion.
“The mining industry has often struggled with misconceptions among younger generations, who may not recognise the sector’s vital role in the global energy transition,” Andrawes said.
“The industry must tell its story in a way that resonates with younger workers who may not understand this critical role. We need the minerals that mining companies produce to achieve net-zero.
“If we can’t grow it, then we must extract it from the earth. There is a significant role for new generation of workers to play in ensuring this happens in a safe and sustainable way.
“By focusing on diversity and inclusion, mining companies can attract a wider range of young people into a future-ready workforce that’s capable of driving the sector forward.”
Overall, Andrawes believes that the Australian mining industry is well positioned to continue its role as a leader role in the global energy transition.
The country’s vast mineral resources and ongoing commitment to innovation combine make it a key player in the world’s production of critical minerals.
“Australian mining companies are already making significant strides in adopting sustainable practices and engaging with local communities to ensure long-term sustainable operations,” Andrawes said.
“Companies here are leading the way in integrating ESG principles into their operations, demonstrating that profitability and sustainability can go hand in hand.”
Looking forward, the Australian mining sector’s outlook remains positive, but it will require ongoing investment in innovation, sustainable practices and workforce development to meet the growing global demand for critical minerals.
As the industry navigates the challenges and opportunities presented by the renewable energy shift, Australia’s mining companies are in a prime position to not only drive the global energy transition but to also enhance their competitiveness on the world stage.
“By focusing on technological innovation, economic and social responsibility, and workforce development, Australia’s mining sector can use the deep skills gained over many years to play a pivotal role in the future of the global energy market,” Andrawes said.
“The next decade will see the mining industry continue to evolve, but by embracing change and remaining agile, Australian companies can thrive in an increasingly complex and competitive environment.
“Australia’s leadership in this transition underscores its important role in the global mining landscape, and with the right investments and strategies, the sector is poised to remain a key player for decades to come.”
