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80% of Australian mining leaders are reducing capital expenditure, up from 44%
last year, a report has found.
The Australian mining industry is bracing for more job losses and mine closures
next year as coal and iron ore prices remain depressed.
Almost 80% of mining leaders are reducing capital expenditure, up from 44% last
year, a report by Newport Consulting has found.
While mining company bosses are still reluctant to spend money or make
investments, the latest Newport Mining Business Outlook Report shows 16% of
mining leaders are cautiously optimistic about their growth prospects for the
next 12 months.
Newport managing director David Hand said more job losses were expected as coal
and iron ore miners fight to remain competitive.
“Miners are likely to make decisions in the next 12 months to shut more
operations,” Hand said.
“There are thousands of jobs hanging in the balance right across New South
Wales.”
The report said coal mining operations in the NSW Hunter Valley were likely to
be affected by weak prices and a similar story was expected to play out in
Western Australia with Pilbara iron ore producers.
“Looking at everybody below Rio Tinto and BHP, it’s a pessimistic view,” Hand
said. “There’s not a lot of optimism about the price of iron ore.”
Further price falls would have a significant impact on small to mid-tier iron
ore miners such as Atlas Iron, Hand said.
Atlas shares have plunged 70% this week after resuming trading and reopening
mines following a capital raising.
Still, Australian miners were among the most innovative and entrepreneurial
businesses and they would quickly make big changes to survive and boost
productivity, Hand said.
“It’s grim, but there’s a future,” he said.
Iron ore is trading just above US$50 per tonne as the Chinese share market
wobbles between losses and gains.
Newport’s report found that for the first time in three years, there was a
flicker of life in the mining sector following a five-year low in mining sector
confidence in 2014.
It said the proportion of mining business leaders who showed no signs of
optimism remained high at 84%, although that number had eased from 93%.
“This suggests that even if there are signs of a recovery, it is early stages
and will be slow,” Hand said.
The annual report surveyed 50 of Australia’s mining leaders from public and
private companies.
Source: www.theguardian.com
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(2015-07-27)
Gina Rinehart Offers Her Roy Hill Mine Workers A Choice: Pay Cuts or Job Losses
(2015-06-25)
Mine Closures, Job Losses on Brazil's Iron-Ore Frontline (2015-06-02)
Fortescue to Cut Hundreds of Jobs Despite Partial Rebound in Iron Ore Price
(2015-05-13)
Ansteel's Karara Iron Ore Mine in Australia to Cut 70 Jobs (2015-03-19)
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