These last few months have been challenging for Australia’s mining sector with border closures, falling exchange rates and a loss of investor confidence. COVID-19 has resulted in some mines mothballed and others considered critical to the economy. As a result, projects that were due to begin execution mid this year have now been pushed out to December or even the start of next year, forcing many people out of work.
If you are one of those impacted, don’t despair. Evidence points toward the big diversified miners being in better financial shape compared to the GFC in 2008 and the last commodity market downturn in 2015. There is less debt, stronger cash flows and no toxic investments on the balance sheets, making it far easier for big companies to weather the storm without having to tap shareholders for cash.
Green shoots are also starting to arise with big miners looking to capitalise on mine closures around the world and the subsequent rise in commodity prices. Australia is now looking to overtake China in gold production with prices rising over 12% from January 1 this year. Additionally, the market has been kind to other precious metals like silver and platinum as well as industrial metals like nickel and copper.
So, what does this mean for jobs in the industry? When talking to my networks, it means a focus on licence to operate projects, including environmental responsibilities, and production-oriented projects. Brownfield and sustaining capital projects are championing the workforce, with new projects and larger CAPEX works to resume when border and travel restrictions ease. These restrictions are due to end in July, with remote mining sites extending the bio-security travel ban until September.
It is important to note that as a country, we are heading towards the light at the end of the tunnel, with life to largely return to normal in July. Holistically, the mining industry is well poised to make a bounce back into regular project cycles across the country with construction to resume on a larger scale.
My advice to any job seekers at the moment is to continue making regular contact with your internal networks and get a feel for what their workspace will look like come September. If you can, secure the promise of work. Otherwise hang in there and feel free to get in touch if you’re currently seeking work.
