Issue Mining: prices mask declining labour and capital productivity

Summary

This issue argues that high commodity prices are hiding a deeper productivity problem in mining. Across major mining jurisdictions, both labor and capital productivity are falling. EY attributes this to declining ore grades, rising operational complexity and operating models divided into silos. Productivity efforts too often target isolated fixes instead of improving the whole value chain, and without trusted data, digital gains stay fragile. A change is under way, with about a fifth of mining companies planning to raise AI spending in 2026 and focusing on data, asset management and safety-critical uses aimed at better decisions and coordination. Because orebodies are getting deeper and more capital-intensive, EY sees higher productivity as essential to protecting returns.