Mining is showing signs of life after the post-boom downturn, but there is still a long way to go in the up-cycle with some bumps and humps to negotiate. Most industry forecasters agree that there are positive signs with more optimism, slowly improving commodity prices, slight share market recovery, increasing capital flow and some M&A activity.
Coal is here to stay as an energy source but the key to its success is development of low emission technology. Innovation along with the ongoing drive for efficiency and optimisation at exploration, mining, beneficiation and logistics levels will see coal miners survive the current industry downturn.
WITH the short-term outlook for commodities remaining negative there is little likelihood of any relief for the next 12 months, which means more belt tightening, more mine closures and job losses, more financial hardship and more pain.
Economic instability and uncertainty which have characterized the global economy since the financial crisis continue to cast a shadow worldwide, particularly in the mining space. While the US has recovered somewhat, the Eurozone continues to be curtailed by uncertainty and Australia has been hit hard by depressed resources prices, high cost of doing business, over-reliance on mining and lack of capital for exploration, mine development or expansion. Despite the doom and gloom, the global outlook is becoming more optimistic and there are signs that the mining industry may have hit rock bottom.
Based in Melbourne, Victoria, Australia, John Miller has been working as a mining journalist for The ASIA Miner for the past seven years, focusing on mining developments throughout Asia and Australia. He was promoted to editor, The ASIA Miner, during July 2010, is editor of Coal Age Indonesia and has responsibility for E&MJ Australian coverage. John has more than 30 years experience as a journalist. He is also an author with more than five historical books published and a biography published. He has also served his community as a city Councillor and was mayor of Orange from 2002 to 2004.