Mining companies now need to integrate risk and performance management, as well as developing risk-management strategies in order to anticipate and plan for potential negative events.

This is the view of Hein Boegman, African mining leader, and Andries Rossouw, project leader, in PwC South Africa‘s fifth edition of its SA Mine report.

“It is imperative that mining companies rethink risk and the risk landscape in which they operate, as gone are the days when risks for mining companies were limited to health and safety matters,” the authors write in the executive summary of the report.

The scale of the challenges facing the industry is reflected in the relative decline in the JSE Mining Index in comparison to the JSE All Share Index over the last two years.

Despite the JSE All Share Index reaching record levels, and the exchange posting steady increases in overall market capitalisation since 2010, the market capitalisation of the mining sector has declined, according to the PwC research.