Facing Economic Fracturing: Why Mining Needs to Rethink Its Playbook
With Amy Lomas, Chief Economist and Partner, PwC Australia
As global tensions rise and economic pressures deepen, industry leaders are grappling with more complexity than ever. For Australia’s mining sector, it’s no longer just about supply and demand, it’s about navigating a shifting world order with strategic agility.
Ahead of her appearance in the Thought Leadership Series 2025 (TLS 2025) panel discussion on ‘Economic and Geopolitical Risks’, PwC economist Amy Lomas shares her perspective on the macro shifts shaping the world, future of mining and how leaders can respond with foresight. As an economist, part of Amy’s role involves helping clients interpret uncertainty and apply economic insight to real-time strategic decisions, something she notes is growing in demand.
Economic and Geopolitical Risks will be delivered live at an exclusive event at PwC Perth this week, with the recording available from 18 June. Subscribe to the TLS 2025 mailing list to stay updated on upcoming releases and related insights.
PwC Australia proudly supports the 2025 Thought Leadership Series as a Signature Partner.
A Shifting Global Landscape: Scale, Speed and Unpredictability
“There’s always a level of geopolitical risk”, Lomas begins, “but what we’re seeing now is different. It’s the scale of what’s happening, the speed at which it’s unfolding, and the sheer unpredictability of it that makes this moment so unique. It’s the extent to which it is shaking the foundations of what we have always considered to be true – for example - are US Treasuries really risk free?”
What once felt like isolated tensions have now become a structural shift in the world economy. It is much more than tariffs and elevated tensions between the U.S. and China. The US is fundamentally changing its relationship with the rest of the world, not just through foreign and trade policies, but also domestic initiatives that are prompting investor reactions and aftershocks that are being felt far beyond trade corridors.
“China is now the global leader in electric vehicle production, solar, batteries and wind turbines … while the decline in US manufacturing has left many American’s behind. Now the U.S. is trying to rattle China’s cage, as we saw with the reciprocal tariffs in April, to crimp Chinese exports to the US and stimulate alternative onshore US manufacturing ”.
She adds, “The tariffs were on a scale that no one had anticipated – including Washington-based organisations like the International Monetary Fund”.
The result? Volatile markets, shaken investor confidence, and more fragile global supply chains. “What do you do when you’re trying to make business decisions in an environment where things of that scale happen without warning”, Lomas says, “well you adopt a ‘wait and see’ approach, you take defensive measures and you stop investing”.
How It’s Hitting the Mining Industry
For mining, which sits at the very foundation of industrial and technological progress, geopolitical risk is a constant factor in the world around us.
“The resources sector is fundamentally tied to human needs, and global supply chains”, Lomas says. “For example it provides the raw materials for the things we make, build, feed, care, move, power. And the capital, trade and financial flows that support these are deeply interconnected, complex and global. So when geopolitical and trade policies shift this fast, the mining industry feels it.”
Rethinking Leadership in Uncertain Times
For companies trying to make sense of it all, the traditional tools are no longer enough.
“If you're trying to make business decisions in an environment where the likelihood of unpredictable events is elevated and these have knock-on effects for markets and supply chains, it’s a very difficult environment to operate in”.
She adds: “You need a greater level of sophistication and agility to work those things through in the context of your individual business”.
This moment is also revealing which companies are structurally equipped to handle this complexity and which are not. “Large organisations often have dedicated globally connected economic and market intelligence teams. But many smaller players simply aren’t set up to process this level of macro risk and translate it into strategy”.
And while some businesses are still trying to make sense of it all and it means for them, others have already gathered the information, considered it, taken action and are recalibrating. “It’s highly likely that your competitors are already making moves, both in a protective sense and in terms of potential opportunities”, Lomas notes.
Turning Global Change into Strategic Opportunity
Despite the uncertainty, Lomas highlights her two takeaways on the biggest opportunity for industry leaders to respond with foresight.
“One of the biggest opportunities right now is in the Asia-Pacific region”, she says. “Notwithstanding the cultural and regulatory gaps to bridge, it’s where the growth is. Countries like India, Vietnam, and Thailand have some of the strongest projected growth rates globally and they’re hungry for infrastructure, capital, and resources. We know this because they are already partnering with countries like China on advanced manufacturing, technology and capital.”
But Australia’s approach to trade and investment hasn't fully evolved to meet this opportunity. “In Asia we tend to sell into markets, not invest in countries. Our economic relationships are mostly trade-based and transactional, but there’s a chance for deeper, more strategic partnerships”, Lomas explains.
She also flags automation and AI as transformative opportunities, especially for organisations ready to look inward.
“AI is incredibly useful when you have large pools of data”, she explains. “That could sit in your procurement teams, your operations, your trading data. There’s value in that data that AI can help unlock, often in ways you didn’t even realise were possible”.
What Companies Are Asking for and How PwC is Responding
In the face of this complexity, PwC has seen a clear shift in what clients are asking for.
“The number one thing we’re seeing is a huge appetite for understanding”, says Lomas. “Clients are hungry to know what’s going on, how it affects them, and what they should do about it”.
Many companies don’t have the internal structures to analyse macroeconomic trends or geopolitical risk. “We’re seeing a real increase in demand for global economic and geopolitical insight in boardrooms and C-suites”, she says. “Organisations are realising they need this intelligence embedded in their strategic decision-making”.
In practical terms, this means refreshed scenario planning, more dynamic risk management, and an investment in different internal capability. “Once you understand your exposure, whether it’s to U.S. dollar or trade disruption, then you can start designing a strategy that’s responsive”.
Final Thought: Stay Informed, Think Long-Term
Lomas leaves leaders with a note of caution and a call to action: “There’s a lot of noise. But leaders can’t just react. They need to look five or ten years ahead — to think deeply about the role their organisation can play in this changing world”.
In a rapidly evolving global landscape, those who can read the signals, adapt early, and stay forward-looking will have the advantage.