SGS is a Swiss multinational company that provides inspection, verification, testing, and certification services, ensuring quality and compliance across various industries worldwide.
Congratulations on your new role as CEO of SGS, Géraldine. Could you start by giving us an overview of the company’s new Strategy 27?
Thank you. Strategy 27 is built on three pillars. The first is growth. The testing, inspection, and certification (TIC) industry is growing rapidly, much faster than GDP, and SGS has the potential to grow even faster than its market. The second pillar is restoring accountability and agility within the company. This means making decisions faster, reducing management layers, streamlining the organization, and empowering people by eliminating the matrix structure we have had in the past. The third pillar is fostering a performance culture, aiming for a solid financial profile, strong financial KPIs, and a healthy balance sheet. This will allow us to invest further in our labs, to develop our offering by leveraging our technical expertise and make value creating acquisitions to consolidate the market
SGS has a long history as a global leader with the most extensive laboratory network in the industry, allowing us to meet customer needs worldwide. For example, when it comes to the mining sector, we can follow the supply chain from lithium mines in Peru or Chile to battery testing in Germany. This ability to track the journey from mining to end product is unique and a key competitive strength of SGS.
How does SGS assist mining companies throughout the different phases of their projects, especially given growing costs associated with their activities?
Beginning with exploration, our experts go beyond merely testing metals; we provide insights into the concentration of valuable materials and assess whether exploration is worth being pursued, which is crucial in reducing unnecessary efforts. Before exploration even begins, our team conducts geological studies to determine whether a particular field is worth exploring. Our experts are there to advise and guide whether to proceed with drilling.
Once the project is underway, we support clients with CapEx consulting, helping them set up their mining operations. During mining exploitation, we are involved in testing samples and conducting various geochemical analyses. We have a global presence on-site, with over 90 mining operations around the world, providing faster turnaround times and comprehensive support at every stage of the mining process. For instance, we have collaborated on innovative projects in North and Latin America, working on extracting battery metals in a sustainable manner, which is increasingly important for the electric vehicle industry.
Can you share examples of how SGS is making the mining industry more sustainable?
One example is our partnership with The Metals Company, where we have produced the first nickel and cobalt sulfates derived exclusively from the seafloor. This method is less harmful to the environment than traditional open-air extraction. While seafloor extraction can be controversial, we ensure that our processes monitor and minimize the environmental impact, preserving biodiversity as much as possible.
This method stands in contrast to conventional mining, where mountains are often destroyed, and landscapes altered irreversibly.
Our role is to validate and measure these processes, ensuring they have a lower carbon footprint and better biodiversity outcomes compared to traditional methods. This aligns with our mission to support the transition toward greener technologies. We also assist in testing other critical battery metals from seafloor rocks, and I have seen firsthand our impressive labs in Canada, which play a key role in helping the company reshore battery-grade metal production to the U.S.
Can you tell us about your recent joint venture in Saudi Arabia?
Yes, we recently entered into a joint venture with Golden Compass, a leading Saudi Arabian mining consultancy, to establish a state-of-the-art geochemistry laboratory in Jeddah, which is expected to open in 2025. This partnership is part of Saudi Arabia's Vision 2030 initiative to develop its mining sector, which is valued at over $2.5 trillion and includes 48 identified minerals.
Through this lab, we aim to provide world-class geochemistry analysis, sample preparation, and multi-element testing. We will also implement environmentally friendly solutions as part of our commitment to sustainability, helping Saudi Arabia become a major mining hub while aligning with their ambitious growth plans.
How is SGS contributing to the battery supply chain, and can you provide examples of partnerships in this sector?
We have multiple partnerships in the battery supply chain. For example, we have a strategic partnership with Nickel 28, where we are testing and evaluating battery metals in Quebec to support sustainable technological advancement for the EV industry in North America. We are supporting their efforts to improve their ability to supply high-quality battery metals while reducing carbon intensity and preserving nature.
We are also working with FE Battery Metals, optimizing the hydrometallurgical process to extract high-purity lithium carbonate, which is a key chemical in the battery supply chain. This requires the highest level of expertise, with our PhDs in chemistry leading the way to ensure the best extraction methods.
We have received recognition in both Canada and the U.S. for our positive impact on the battery supply chain, and we will continue to drive forward sustainable practices in this field. This commitment motivates our management and employees.
Which aspect of mining struggles most with becoming sustainable? How can SGS help address this?
One key issue is that the industry requires a shift in talent. The mining sector has relied on certain ways of operating for years, but now it needs to adapt and become more technologically advanced. Unfortunately, mining and heavy industries like cement and steel are not seen as attractive to younger talent, which leads to a shortage of skilled workers. Additionally, there is the challenge of investment. As I know well from my experience with large-scale mining operations, transitioning to environmentally friendly processes requires significant capital expenditure, like implementing carbon capture projects. These investments have uncertain returns, making it difficult to secure the necessary funds.
At SGS, we support mining companies by advising on CapEx projects. We help them review their projects, inspect pipelines, and conduct all the necessary measures to make their projects solid enough to attract subsidies and incentives. While we are not a financial institution, we have the expertise to guide companies toward securing the capital they need. Our role is to help them develop strong, sustainable projects that can attract the necessary funding.
Do you think the industry will rely more on external parties like SGS to fill the tech talent gap?
Yes, this is already happening, but mining companies will still need their own people on-site to ensure they deliver results for their investors. SGS can act as a contractor, helping with consulting, advising on cybersecurity, and ensuring digital processes are secure. We support them with the expertise they need and assist them in implementing advanced technologies. While we are not a substitute for their workforce, the demand for our services is growing, especially as companies face talent shortages.
Why should a mining company choose SGS as a partner in this new era for the industry?
SGS stands out for our unwavering focus on sustainability, biodiversity, and environmental protection across all our operations. As the mining industry faces challenges in adapting to more sustainable practices, we offer the expertise to guide our clients in this transition. We have the best network of experts worldwide and the most extensive laboratory network, enabling us to provide innovative solutions tailored to each company's needs.
Our mission is to help clients operate in a way that minimizes environmental impact while ensuring their operations remain efficient and effective. When asked to support electric vehicle supply chains from mining to driving or in working with companies across all sectors of the mining industry, our commitment to sustainability and trusted expertise makes us the ideal partner for companies looking to evolve in this new era.
