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PwC report adds cybersecurity to risks in mining industry
INSIGHT
By Robyn Grimsley
The recently published PwC report SA Mine 9th edition , looked at trends in the South African mining industry for the 2017 financial year , identifying cybersecurity as a risk for the first time .
The ninth edition of PwC ’ s annual publication highlighting trends in the South African mining industry — SA Mine — was published in September 2017 .
According to the report , the 2017 financial year was tough for stakeholders in the mining sector , with regulatory announcements — the new Mining Charter — in June , resulting in market capitalisation dropping to June 2015 levels despite improved financial performance . With the suspension of the Mining Charter and improved exchange rates , there was a small recovery to the end of August .
The PwC report indicates that there has not been a significant change in the risks identified by mining companies over the past few years . Those previously identified and unchanged risks are : volatile commodity prices and foreign exchange fluctuations ; the regulatory , political and legal environment ; socioeconomic environment around mines ; sustainable business plans or budgets ; labour relations ; operating costs ; reliance on third-party infrastructure ( water supply and power security ); employee safety and health ; liquidity and capital management ; and compliance with environmental standards .
In 2017 , however , a new risk was added to the list : cybersecurity . Given the major cyberattacks that took place this year , this fact is unsurprising . According to PwC ’ s Global State of Information Security Survey 2017 data , the compound annual growth rate ( CAGR ) of detected security incidents increased by 66 % year-on-year across all industries since 2012 .
The outbreak of the WannaCry ransomware in May this year made international headlines , as it affected hundreds of thousands of computers in 74 countries in around 24 hours , and more than 150 countries by the time it was over . Then , six-and-a-half weeks later , a second cyberattack made headlines . The outbreak , which initially appeared to be a second ransomware attack , spread across Ukraine — and the world — for five days before activating on 27 June . Among those affected were steel manufacturing and mining company Evraz .
The increasing prevalence of telematics and big data in the mining and construction sectors also increases both the potential impact of cyberattacks and the potential points of entry into connected systems and networks .
According to Deloitte ’ s Tracking the Trends 2017 report , mining companies are exploring digitisation as a way to improve operations . However , the same report points out that over the past few years , most major mining companies have experienced attacks , with their information technology ( IT ) security technologies unable to protect against increasingly sophisticated and malicious online threats . The report highlights that ransomware has become one of the most prevalent forms of cyberattack over the past year , with many companies , including those in the mining sector , being subject to this type of attack .
The growing use of telematics and data analytics , the increase of data in the cloud , the convergence of IT and operational technology ( OT ), and the uptake of the Internet of Things ( IoT ), amplify the potential cybersecurity risk . Malicious viruses or worms “ explicitly target critical systems ,” and autonomous vehicles are also a concern , not just because of potential disruptions , but because of the potential safety implications .
Despite the increased risk , the Trend Micro white paper Cyber Threats to the Mining Industry states that while the sector is under threat from cyberattacks and the exploitation opportunities are significant , it is an area that almost no one wants to talk about .
Gavin Bodill , managing director of IT infrastructure and support services company Executive Solutions , says that while cyberattacks are definitely increasing , people ’ s awareness of the risk is also increasing , resulting in a higher perceived prevalence of attacks . “ South African companies are now at a point where they are focusing more on the issue of cybersecurity and are more willing to assign budget to this area as they become more aware of the risks ,” he explains . n
40 _ QUARRY SA | NOVEMBER 2017