Former Anglo American CEO Mark Cutifani says mining companies risk becoming takeover targets as technological innovation lags behind increasingly complex mining operations, deeper deposits and lengthy project approval processes.
The global mining industry is facing growing pressure to modernise its operations, with former Anglo American chief executive Mark Cutifani warning that companies failing to invest in innovation could lose their independence to outside buyers.
Speaking at the International Mining and Resources Conference (IMARC) in Sydney, Cutifani highlighted the challenges of accessing deeper mineral deposits, replacing depleted resources and developing new mining technologies. He said mines are becoming approximately 40 metres deeper every year, while obtaining permits for new mining projects can take up to 20 years.
According to Cutifani, these challenges are exposing a significant technology gap across the mining industry. He warned that within the next decade, mining operations could be working 400 to 500 metres deeper than today, requiring advanced technologies and new approaches to extraction.
Innovation Gap Threatens Mining Industry
Cutifani argued that mining companies have not invested sufficiently in technologies capable of addressing the industry’s long-term operational challenges. He recalled a conversation in 2010 with former General Electric CEO Jeff Immelt, during which he warned that the mining sector could eventually struggle to supply essential materials to other industries because of its slow pace of innovation.
He believes that major mining companies continue to prioritise short-term financial performance over long-term technological development.
During his leadership at Anglo American, Cutifani promoted the FutureSmart Mining programme, which focused on improving productivity, operational safety and environmental sustainability through technological advancements. He attributed part of the company’s performance during his tenure to innovation and operational efficiencies.
Takeover Risks and Industry Consolidation
Cutifani suggested that mining companies failing to improve productivity and develop new technologies could become attractive acquisition targets for major businesses outside the traditional mining sector.
As demand for critical minerals grows, companies may increasingly look towards acquiring established mining operations rather than spending years developing new projects.
The warning comes amid increasing strategic activity across the global mining industry, particularly in copper and gold, where access to established mineral resources has become an important consideration for major producers.
Northern Star Resources Faces Strategic Challenges
Cutifani’s remarks also come as he takes up a non-executive director position at Australia’s Northern Star Resources. His appointment follows a recommendation from activist investor Elliott Investment Management.
Northern Star is currently advancing its expanded KCGM gold operation in Kalgoorlie while preparing for a major investment decision on its Hemi gold project in Western Australia. The company is targeting a final investment decision by mid-2027 for the project, which contains an estimated 13.2 million ounces of gold.
Cutifani also emphasised the importance of understanding the full potential of mineral deposits before committing to major mining projects. He estimates that fewer than 30% of mining projects worldwide are designed or operated at their full potential.
He encouraged mining companies to assess different commodity price scenarios, plan infrastructure around the long-term potential of deposits and ensure projects remain financially viable even under challenging market conditions.
Technology Investment Becomes Critical for Future Growth
Cutifani’s warning highlights a broader challenge for the mining sector: balancing immediate profitability with long-term investments in automation, digital technologies, advanced mineral processing and sustainable extraction methods.
As mineral deposits become more difficult to access and global demand for critical minerals increases, technological innovation could become a decisive factor in determining which mining companies remain competitive.
His message to the industry is clear: companies that fail to innovate risk losing their competitive position, while those that embrace technological transformation could strengthen their operations and long-term growth prospects.