The mining industry in Australia, like many others, has had a tough time in recent years. Although things are beginning to look up, it is not yet out of the woods. Things are still difficult, and both the mining industry and the companies that serve it have to find ways to survive. Many companies have started to think creatively to stay on their feet. Mining service companies are coming up with tempting offers to help them get the work they need. For example, some have allowed mining companies to pay them using equity.
The downturn in the mining sector has caused the services for the industry to be hard hit. In order to survive, mining companies began to cut their costs. This meant that they were using various services less than they were before. While they save money, the companies that provided equipment and services for them struggled to find the work they needed. This turn of events meant that those services cut their costs in turn. Or they became more flexible to help them secure work. Trading work for equity is just one approach that some firms have taken. Of course, this relies on getting a return on the investment.
Some service providers are biding their time for work to increase. For example, WesTrac Australia anticipates that demands for equipment maintenance will soon rise. Many mining operators have been putting their equipment to good use. If there is more wear and tear than usual, there should be plenty of work for maintenance services. Sales of equipment from firms such as burns equipment have increased in the last year too. They rose 22 percent on the year before, including a 21 percent increase for new equipment and 51 percent for used.
This demonstrates that there are opportunities for sellers of both new and used machinery. However, many are particularly interested in buying used. There has been a significant change toward buying used equipment still in top condition. In fact, there is a lot of mining equipment not currently getting any use. So there are plenty of products available. Many firms are selling equipment at incredibly low prices so that they can get rid of it. This is partly due to major companies cutting their costs and wanting to get rid of any equipment that might be a drain on them. It allows smaller businesses to pick up what they need at much lower prices.
The Diggers and Dealers mining conference was held in Kalgoorlie, Western Australia recently. The mood showed an improvement on the year before. Many are feeling more positive about the industry. Apart from cost cutting, some other factors are helping companies to manage. For example, the cost of diesel fell, which is useful for those that have no other energy source. There could be a boom in the mining of lithium and graphite, which has caused some excitement too.
Australia’s mining industry has had it tough in recent years, but it’s starting to recover. It could continue to improve in the future.