Mining Districts Could Unlock Billions, GEM Study Finds

Mining companies could unlock billions of dollars in additional value by treating nearby operations as integrated districts, rather than standalone assets, according to a new study by GEM Mining Consulting.

The firm's latest Perspective report introduces the District Potential Value Index (DPVI), a tool ranking mining districts by their ability to generate and sustain long-term value. 

For the report, GEM screened a database of 1,641 mines and projects worldwide, before narrowing it down to 49 districts for a more detailed evaluation.

The study concluded that economic scale, shared infrastructure and operational coordination are more important than geographic proximity to resources alone.

"The industry can no longer afford to evaluate mines in isolation," says Juan Ignacio Guzmán, CEO of GEM Mining Consulting. 

"The greatest opportunities increasingly come from connecting nearby operations through shared infrastructure, coordinated development and long-term territorial planning, allowing companies to capture value that individual assets cannot achieve alone."

Highest scoring districts

Based on GEM’s DPVI score, the highest-ranked districts are Australia's Altura-Pilgangoora lithium district, Chile's Collahuasi-Quebrada Blanca and Andina-Los Bronces copper districts, Poland's Lubin-Polkowice-Sieroszowice-Rudna copper district, and Argentina's Salar de Olaroz-Cauchari-Olaroz lithium district. 

The study also found that Oceania leads globally, combining large resource endowments with strong social performance and relatively manageable environmental constraints. 

Chile's northern copper districts also scored highly, demonstrating how established infrastructure and operational continuity can create enduring competitive advantages.

Genesis Minerals made a similar case for its proposed A$5.6bn merger with Vault Minerals, arguing that the proximity of their Leonora and Bardoc-Mt Monger operations in Western Australia means it would unlock more than A$1.5bn in unique synergies. 

This would largely be done by routing ore through existing processing infrastructure, rather than building new plants.

Global demand pressures

The report suggests operators need to adopt “district-level thinking” as a default, and sooner rather than later. This is due to declining ore grades, tighter water availability and slower permitting timelines, which are all squeezing the returns individual mines can generate on their own.

GEM's analysis also suggests companies that share infrastructure and coordinate development across nearby assets can lower their costs, improve productivity and extend mine life beyond what any single asset could achieve in isolation.

The report warns that geology alone cannot guarantee value anymore, as districts with strong mineral resources can still underperform if water scarcity, permitting uncertainty, social conflict or weak governance prevent development. 

"Proximity creates the opportunity, but it does not create value by itself," Guzmán says. "Successful mining districts require economic scale, operational compatibility and the ability to sustain development over decades through effective environmental and social management."

What needs to happen next

GEM's report separates districts into three categories: mature clusters ready for integration, emerging districts that still need investment, and clusters too fragmented to justify coordinated development yet.

The firm says the DPVI framework could help miners prioritise acquisitions, infrastructure investment and long-term regional planning, particularly as demand for critical minerals continues to climb. 

We are already seeing the trend emerge in cases like the Genesis Minerals' proposed merger with Vault Minerals. BHP also recently made a similar case in Chile, extending the life of Cerro Colorado alongside Escondida and Spence under its Pampa Norte division, rather than developing new sites.