The global metals and mining industry posted one of its strongest financial performances in two decades last year, earning $700 billion in profits despite a 6% drop in revenue, according to McKinsey’s newly released Global Materials Perspective 2025.
The report highlights that while profitability remains robust, the sector faces mounting challenges from declining ore grades, complex mining conditions, and stricter environmental and labour standards. All of these factors are driving up costs and squeezing margins, McKinsey said, noting that sustained investment in technology, electrification and digital tools will be crucial to maintaining productivity gains.
Profit pools have shifted from coal and steel toward copper, gold, and aluminium, as productivity has rebounded by roughly 1% annually since 2018, led by Latin America and North America. The industry’s structure continues to fragment: the market…
