anisations rely heavily d IT management, and with a declining market further. But what does ross the industry? Ash rector at Pulse Mining, hat the future holds for mining companies.
FINGER ON THE PULSE
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