Mining’s transformation in 2016 has been astonishing – although we are not quite out of the woods just yet and it will take time for the improved conditions to filter down the mining chain. After starting the year at the lowest of ebbs and with little sign of hope, a series of subsequent circumstances has seen optimism and fortunes turnaround.
The mining industry has let itself down with its tardy response to taking care of the environment. In most cases mining companies do what they have to in terms of environmental regulations but this has largely been a reactionary response rather than a proactive process. It is little wonder that environmental groups seem to have the upper hand in the increasingly important debate about preserving and enhancing the environment as not only has the mining industry been on the back foot, but it has also been poor in promoting what it is doing.
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.