Guide to surviving the global mining crisis launched
This has been a difficult year for mining companies across the globe, with weak commodity prices triggering massive lay-offs, expansions delays and projects being shelved indefinitely, hinting at the end of a decade known as the commodity super cycle.
But according to independent research firm Mondaq, there are some practical steps miners can follow to weather the current financial storm and prepare for the possibility of a challenging next six to twelve months.
In Canada: A Guide To Surviving The Mining Crisis, the authors say the most obvious measures include abandoning non-essential exploration work, postponing hires and focusing on core-business operations.
However they propose a set of other potential solutions, including re-evaluating 2013 market guidance and “shareholder activism.”
During the past six months, at least 3,500 jobs have been eliminated as major companies, including Rio Tinto (ASX: RIO), BHP Billiton (ASX: BHP), Glencore Xstrata (LON: GLEN) and Fortescue Metals Group (ASX: FMG), have closed mines, mothballed projects and/or cut jobs.
You can read a detailed summary here.