Cutifani warns mining sector’s failure to innovate opens door to takeovers

Former Anglo American (LON: AAL) CEO Mark Cutifani has warned that mining companies risk being acquired by outsiders unless they accelerate innovation to overcome deepening deposits, lengthy permitting delays and dwindling resource replacement. Speaking at the International Mining and Resources Conference in Sydney this week, Cutifani said mines are getting an average of 40 metres deeper each year, while permitting new projects can take up to 20 years. He argued that the industry is failing to develop the technologies needed to address increasingly complex mining conditions. “So, we aren’t able to replace the resources that we’re mining,” he said.