Seven years on and we’ve seen some important shifts happening in the Australian mining sector. Each year, the Mining Business Outlook Report aims to canvas the current outlook, challenges and opportunities across the mining industry.
This year’s Mining Business Outlook Report shows that for the first time in more than three years, miners are optimistic about plans for growth, not just for survival.
We spoke with Gina Rinehart, Chairman of Hancock Prospecting Pty Ltd and Roy Hill Holdings Pty Ltd, and captured her insights on the sector’s state of play.
After last year’s cautious optimism, there has been a huge surge in sentiment among miners, suggesting an industry revival. Following a period of focusing on recalibration and cost reduction, miners are more positive about boosting profitability through growth in the long-term.
Our interviews with 50 mining leaders across key commodities, as well as an exclusive interview with Gina Rinehart, yielded some key insights:
Growth outlook is upbeat for the first time in years.
For the first time in more than three years, the mining industry is showing signs of confidence, with a more upbeat outlook among leaders and a swing towards revival.
Miners are focused on growth; not just survival.
In recent years, survival was the key business strategy. For the year ahead, growth is firmly back on the agenda, suggesting top line and bottom line growth.
Good news: Miners are starting to spend again.
There are early signs of increased capital expenditure in the sector, with companies planning to moderately or significantly increase Capex over the next 12 months.
Prices to stabilise; another sign of the tide turning.
Commodity prices are set to stabilise over the next 12 months, paving the way for increased capital spending and a more positive outlook for miners.
Fewer companies reducing staff; more hiring.
Last year, most miners were reducing staff. This year, there is a slight increase in new recruits, with more companies planning to hire over the next 12 months.
Poor market conditions still concern leaders.
Despite this new phase of confidence for miners, poor market conditions, low commodity prices and capital constraints remain key concerns.
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