Mining giants in 'crisis of confidence' Miners need to focus on driving productivity, a report says. THE mining industry is suffering a crisis of confidence as investors question the outlook for commodity prices and the ability of resources companies to control costs, a new report has found. Miners need to focus on driving productivity, rather than mindless austerity, to again position themselves as attractive investment propositions, according to analysts at accounting firm PricewaterhouseCoopers. Highlighting the poor recent performance of the sector, PwC's annual review found the world's 40 largest miners announced a massive $45 billion in writedowns last year. At the same time, their return on capital employed - a ratio that highlights the profitability of a company's investments - slumped to a decade low. The winds of change blowing through the sector have also produced significant change at the top, with five of the world's 10 largest miners replacing their chief executives since April 2012. In another threat to the health of the Australian industry, the report finds the sector's centre of gravity continues to shift. Half of the 40 largest miners by market capitalisation - a list which includes BHP Billiton, Rio Tinto, Newcrest and Fortescue - now have the bulk of their operations in emerging economies. Half of the world's top 40 miners also now come from emerging economies, with China the most heavily represented with seven companies making the list. Production by the top 40 increased by 6 per cent last year but a plunge in commodity prices kept combined revenue flat at $731 billion - only the second time in a decade that revenue did not increase. Net profit slumped 49 per cent to $68 billion, pulled down by lower commodity prices, escalating costs and massive impairment charges. Despite the challenges for the sector, the report concludes long-term demand for commodities remains healthy. "Now is the time to show that the industry can deliver in good times and bad," the report concludes.