Critical minerals are essential for the ramp up of clean energy. Image: ultramansk/shutterstock.com

The global mining industry has reached a decisive inflection point, cementing its role at the centre of modern economic growth as demand for critical minerals surges, according to a new report from BDO.

The BDO Annual Mining Report 2026 identifies three primary forces reshaping the landscape: the push for decarbonisation, the electrification of transport, and the rapid expansion of data centres to support artificial intelligence (AI).

While coal demand is forecast to drop by 20 per cent over the next decade, the trajectory for energy transition metals is climbing. In net-zero scenarios, demand intensity is set to jump by 48 per cent for lithium and 60 per cent for cobalt.

BDO Australia global natural resources and energy leader Sherif Andrawes said the industry has cemented its place as a cornerstone of the modern economy.

“The global mining industry stands at the centre of a world that is more dependent on minerals than at any point in history,” Andrawes said.

“Every aspect of modern life, from energy and transport to communication, healthcare and national security, relies on a secure supply of mined materials.”

Despite the favourable demand outlook, Andrawes said the operating environment is becoming increasingly challenging. The report said the era of “low-hanging fruit” in mining has likely ended.

“However, meeting this demand is becoming more challenging. The era of easily accessible, near-surface deposits in traditional stable jurisdictions is largely over,” Andrawes said.

“New discoveries are deeper, more remote and more technically complex, requiring greater capital, advanced technology and longer development timelines.”

According to the report, the industry’s future success will hinge on innovation, with companies forced to adopt “game-changing technologies” to unlock value from deeper or lower-grade resources.

The report also highlighted the growing role of national security in driving demand. Defence spending has emerged as a significant secondary market for critical minerals, which are vital for technologies such as radar, guidance electronics, and advanced communications.

Subscribe to the Mining newsletter to get the latest news that matters to Australia’s premier industry.

The post From energy to AI: Mining at the centre of global growth appeared first on Mining Magazine Australia.

Mining Magazine Australia

Message History

Delivery option(s)