FINGER ON THE PULSE nisations rely heavily IT management , and ith a declining market urther . But what does oss the industry ? Ash ector at Pulse Mining , at the future holds for mining companies .
How do you believe the industry is changing ? The mining sector is subject to a cycle of investment largely dictated by global demand and economics . Exchange rates and international commodity prices give tangible and clear indicators of where we are in relation to a particular cycle .
High and healthier levels of growth frequently result in lower levels of productivity , particularly in the larger organisations with broader margins and greater market control and influence . A ‘ production at any cost ’ mentality prevails .
In periods of decline , the less profitable assets that struggle to make returns to the extent required in the context of a larger organisation are divested and often picked up by prudent investors who acquire at bargain prices and operate at a fraction of the cost .
Given that the mining industry is currently in the midst of a prolonged downturn , with low commodity prices , increased rates of company liquidations and declining exploration activity , productivity improvement is essential for miners to ride out the crash .
As the current downturn has
13