The Australian mining industry must accept “the new normal” and accelerate its ability to implement innovative thinking in order to survive the higher volatility of the global market, says a report released by Deloitte.
The report details the 10 key trends facing the global mining industry in 2015, highlighting the imperative for companies to break away from boom-time thinking.
Deloitte’s national Reuben Saayman says this is critical for Australian companies saddled with a high starting cost base compared with their global competitors.
“People have been seeing innovation as driverless trucks and the like, but it goes way beyond that. It needs to be the way that you share your infrastructure, the way you secure your funding. You need to adapt your whole business style and innovate the way you do business,” Mr Saayman said.
“We are seeing junior miners exiting the market . . . and it is a real challenge for those that want to continue to operate. You have to be doing everything you can to get yourself to the right side of the cost curve.”
(Source: The Singleton Argus)