Currently viewing Global edition

Mining's productivity imperative

The mining industry faces a sobering challenge. In The Boston Consulting Group’s study of 42 mining companies from around the world, the average annual total shareholder return (TSR) for the organisations in our study was 16% from 2002 to 2012 but dropped to negative-18% from 2012 to 2014.

This change points to considerable destruction of shareholder value by the sector during these later years. (See Exhibit 1 below.)

Plummeting industrial commodity prices are partially to blame.