The energy transition continues to drive innovation in the energy sector, with a particular focus on technologies that help to capture, store and distribute clean and renewable energy.
As the application of these technologies ramps up, this shift is fuelling demand for rare earth elements and critical battery metals, such as lithium, cobalt, nickel and vanadium. While, in the short term, these commodities are experiencing challenging market conditions, this will improve as the demand for decarbonation continues to grow, highlighting the important role of both mining and energy and the accelerating convergence of these sectors.
“Our energy future is underpinned by the energy sector’s efforts to find new efficiencies and develop new technologies. It is also supported by the mining sector and the many critical resources that it produces,” says James Christian, Managing Partner for UKMEA. “Without these sectors, the energy transition simply cannot happen.”
As energy technologies and strategies evolve, mining sector leaders are pivoting their commodity strategies to meet changing demand. Many organisations are also turning to alternative energy solutions, like hydrogen and natural gas, as part of decarbonising their own operations, smoothing the transition to renewable energy technologies. “With this shift we are seeing traditional sector boundaries blur and a deepening of the already complex relationship between mining and energy,” James continues. “This change is creating unique challenges and leadership opportunities for senior executives to move between mining, energy and the intersection of the two.”
Here we consider how the energy transition and convergence of mining and energy has shaped the leadership landscape and the type of leaders that both sectors need.
What do leaders in mining and energy need to succeed?
Achieving any significant organisational change requires strong leadership. “The energy transition is one of the most significant challenges of our time and the performance of today’s mining and energy sector leaders will be measured by their ability to tackle this challenge, and to leverage its opportunities,” says James.
- To future proof the energy sector, businesses must be able to attract and retain leadership talent that values innovation and can guide the commercialisation and scaling up of new technologies.
- A similar requirement exists in mining, with a focus on developing future focused skills to meet demand and deliver on shifting critical minerals strategies.
- Across both sectors, leaders must understand and be able to harness the value of technology, understanding where it can take their organisation and how to get there in terms of people, skills and the evolution of strategy.
“Leadership roles in dynamic and converging markets like energy and mining are well suited to individuals that are agile; have refined deal-making skills; and thrive on working collaboratively, understanding the partnerships and opportunities that will help them to move forward,” says James. “Leaders with the ability to confidently navigate geopolitical dynamics and risk; and those who have previously straddled significant organisational change, are also well equipped to succeed and well suited to leading at the frontier of this transition.”
Future proofing the workforce:
Finding fresh skills and perspective across the talent divide
In addition to appointing strong leaders, performance in the mining and energy sectors is shaped by having the right people in place at all levels.
“Leaders in these sectors must also be able to attract, develop and retain a workforce with the right skills, experience and capacity,” says James. “To remain competitive while navigating significant change, business leaders must also keep one eye on the future, ensuring talent strategies align not only with current demand but also with where the market is headed.”
Many recruitment strategies in mining and energy are currently focused on achieving:
- The breadth and capacity to deliver on growing and changing demand
- Flexibility to adapt to changing energy and critical mineral strategies
- Expertise to improve productivity and find efficiency gains
- Experience defining and delivering on organisational change and transformation strategies
- Skills and aptitude to drive innovation, commercialise and scale up new technologies.
“Given the shortage of skilled labour across many industries, building and maintaining this type of workforce may require leaders to look for talent in unconventional ways, or in unconventional places,” says James. “While there has always been an element of talent crossover some unique leadership opportunities are emerging as mining and energy converge, allowing for greater movement within and between these sectors.”
“What’s particularly interesting about mining and energy right now, is that clients in each of these sectors are actively seeking talent from the other,” says James. “The benefit of this approach is that it allows organisations to tap into a wealth of knowledge, expertise and unique perspective to drive their strategy forward. It also creates opportunities for senior leaders to grow their value, gaining diverse experience across critical minerals and the energy spectrum.”
The value of trusted advisors
For James, the talent and leadership landscape at the intersection of these sectors remains nuanced and interconnected. “Deep industry connections are critical to advising on senior appointments and talent strategies in mining and energy,” says James. “This is why as consultants we are out there every day, listening to clients and candidates and learning from what’s happening in the market.”
“This exposure helps us to understand both the macro and micro factors affecting our clients and talent networks. It also means that we know where the capital is coming from; where these markets are moving; which regions are growing and developing new projects; and where the talent networks are,” says James. “We draw on these and other insights to help leaders shape the next stage of their career journey; and to help clients understand and deliver on the current and future talent requirement for their organisation.”
With diverse and established talent networks and substantial experience working across mining critical minerals, traditional energy and transitioning energy markets, we enjoy helping candidates to broaden their horizon and connecting clients with talent from within and outside of their respective sectors. Connect with James or reach out to Gerard Daniels today to discuss your next leadership opportunity, or to shape your performance and legacy of your organisation.
