The global mining industry has reached a turning point. Rising demand for critical minerals has placed mining at the centre of modern economic growth.
The BDO Annual Mining Report 2026 outlines three major forces reshaping the sector. These include decarbonisation, transport electrification and the rapid growth of AI data centres.
Governments and industries are accelerating the energy transition. Demand for lithium, cobalt and other energy transition metals continues to climb.
BDO’s findings confirm that mining now underpins the global shift to clean energy and advanced technology.
Decarbonisation and Electrification Increase Mineral Demand
The push for net-zero emissions is transforming commodity markets. Global coal demand is forecast to decline by 20 per cent over the next decade and demand for battery minerals is rising sharply.
In net-zero scenarios, demand intensity is projected to increase by 48 per cent for lithium. Cobalt demand intensity is expected to rise by 60 per cent.
Electric vehicles, renewable energy systems and battery storage rely heavily on these materials. This trend strengthens the long-term outlook for critical minerals mining.
The rapid expansion of data centres to support artificial intelligence is increasing demand for copper and other essential minerals.
Mining as the Foundation of the Modern Economy
BDO Australia global natural resources and energy leader Sherif Andrawes reinforced the sector’s importance.
“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.”
These statements highlight the essential role of mining in supporting energy security, digital infrastructure and global supply chains.
Resource Complexity and Rising Development Challenges
Mining companies face increasing operational complexity, despite strong demand, . The report notes that easily accessible deposits are becoming scarce.
“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.”
Companies must now invest more capital and deploy advanced mining technology to access new resources. Exploration programs increasingly target deeper and lower-grade deposits.
These conditions raise project risk and extend development timelines.
Innovation and Technology Will Define Future Success
The BDO Annual Mining Report 2026 stresses that innovation will determine long-term success. Mining companies must adopt game-changing technologies to remain competitive.
Automation, artificial intelligence and advanced processing methods can unlock value from complex ore bodies. Digital transformation will also improve operational efficiency and cost control.
National security concerns are adding another layer to critical minerals demand. Defence spending has become a significant secondary market for minerals used in radar systems, guidance electronics and advanced communications.
As governments prioritise supply chain security, critical minerals mining will remain strategically important.
The global mining industry now operates at the intersection of decarbonisation, electrification and geopolitical strategy. Companies that innovate and adapt will shape the next phase of resource development.
