What recent trends have you noticed in the local mining industry, and how has that reflected in the demand for KPMG’s services?

KPMG is certainly seeing an increase in demand for our services around ESG strategy and decarbonization. We have developed a decarbonization hub that helps companies implement decarbonization strategies including at the operational level, and are helping companies execute their ESG strategies throughout their business, such as in capital allocation processes and implementation of technological advancements. We are also seeing a focus on sustainability reporting and how companies are getting the message out and meeting the ever-evolving requirements, regulations, and voluntary frameworks associated with ESG.

Can you speak to the new International Financial Reporting Standards (IFRS) and how they will impact the local mining industry?

New IFRS Sustainability Disclosure Standards have been issued by the International Sustainability Standards Board (ISSB) in 2023, but the Canadian and US securities regulators, who dictate what is required of public companies in Canada, have not yet published their regulations related to these. Therefore, it is still not certain what will be legally required in terms of the new standards.

The first two standards released by the ISSB are intended to provide a consistent and hopefully globally adopted and accepted framework for sustainability disclosure. The standards state that you would release your sustainability information at the same time as your financial information. To date, most mining companies put out a sustainability report, but typically at a much later date than their financial information. Aligning these two processes will be a significant undertaking for companies as there is limited capacity within companies to obtain, review, and consolidate all the information needed to meet these new disclosure requirements; it is a time-consuming process.

We have been discussing with our mining clients how they can change their processes and controls to align the timing and ensure the accuracy of the underlying data before the information is disclosed. KPMG has subsequently launched a mining roundtable series for sustainability reporting, allowing mining companies to get together and learn from each other and us.

What can the Canadian mining sector do to build a robust critical minerals supply chain?

Given the nature of exploration and development, the timeline for establishing a mine is inherently long, but a significant inhibitor along the way is the permitting and related processes, which are not very well aligned across Canada and cause additional delays. There are also benefits for both the mining industry and the public in the development of infrastructure required for new mines, particularly in more remote areas, and the government’s support in building this infrastructure is critical. As part of its critical mineral strategy, we have started to see the government put more tax incentives and funding towards critical mineral extraction and processing, but we also need to see more investment in infrastructure and workforce development.

What can the mining companies do to attract a more diverse workforce?

In terms of women specifically, facilities and equipment need to be accessible and designed for women as well. There is a Canadian safety clothing manufacturer that specifically designs proper-fitting PPE for women in mining and the trades. Similarly, there are aspects of Indigenous communities that need to be considered that would be important to them concerning their heritage and culture and demonstrate a company's commitment to a diverse workforce. Companies should push themselves in the small things that can signal that they want their mine to be a comfortable place for a wide range of people and their families.

What are KPMG’s key priorities for 2024?

KPMG is focusing on three main pillars which support what we see as the future of the industry. One is innovation and technology, which is critical to increased operational output and the ESG agenda. There are some fantastic technologies and advancements that can help companies change and improve their operations and make them safer and more sustainable. Second is the workforce, we want to help bring a voice to the industry and attract talent. Third is the energy transition and how we can help companies in their ESG journey.