Almost 80% of Australian mining leaders are reducing capital expenditure, up from 44% last year, a report has found
The Australian mining industry is bracing for more job losses and mine closures next year as coal and iron ore prices remain depressed.
Almost 80% of mining leaders are reducing capital expenditure, up from 44% last year, a report by Newport Consulting has found.
While mining company bosses are still reluctant to spend money or make investments, the latest Newport Mining Business Outlook Report shows 16% of mining leaders are cautiously optimistic about their growth prospects for the next 12 months.
Newport managing director David Hand said more job losses were expected as coal and iron ore miners fight to remain competitive.
“Miners are likely to make decisions in the next 12 months to shut more operations,” Hand said. “There are thousands of jobs hanging in the balance right across New South Wales.”
The report said coal mining operations in the NSW Hunter Valley were likely to be affected by weak prices and a similar story was expected to play out in Western Australia with Pilbara iron ore producers.
“Looking at everybody below Rio Tinto and BHP, it’s a pessimistic view,” Hand said. “There’s not a lot of optimism about the price of iron ore.”
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