Mining has made a large contribution to Australia’s well-being and prosperity and has influenced Australia’s history in fundamental ways, shaping the country and its people. The past competitiveness of the industry has been underpinned by technical innovation, good labour productivity, an attractive investment environment and trusted relations with Government. Recently, many of these success factors are at risk. For example, concerns about capital and operating costs in Australia, relative to international competitors. Project delays, energy costs, tax changes and other factors have combined to change the climate for mining and mineral processing.
Australia’s inherent attractiveness remains, but rival suppliers are working hard to match or better Australia in the global marketplace. State and Federal governments, and community attitudes, have led the debate which focuses on sharing the benefits rather than building the industry. Mining as a whole is more than double the size it was in 2006 which means there is a bigger industry to operate, maintain and sustain.
For governments, companies, communities and individuals involved in the sector, this is a time of great challenge.
Existing capital assets have to work more efficiently, and new capital expenditure for a given productive capacity will have to be comparable with competitor countries for new projects to be viable. Operating costs have to be brought into line with international benchmarks and higher energy costs have to be absorbed. Governments and industry need to cooperate to meet these challenges. Service providers, Constructors and Owners need to cooperate and utilise proven project delivery methods to minimise disputes, and meet cost and time constraints. Safety standards must continue to improve, and the environment protected right through from concept to closure rehabilitation.
Some rationalisation of ownership of properties is underway. Different issues affect each commodity group. Some companies are looking to share or divest themselves of non-core assets, infrastructure, or to improve utilisation.
In this environment all industry participants are adjusting their business models. This is where DJG can assist. Our Principals and our Associates embody many years of experience and are available to help through the whole business cycle. We have particular experience in:
- Project initiation, acquisition, divestment
- Due diligence
- Foreign investor assistance
- New business and market entry
- Government and stakeholder relations
- Approval process improvement and planning
- Selection, scoping, briefing and managing service providers
- Review of business plans
- Risk review and quantitative decision making
- Project setup
- Provision of key people to work within or alongside client teams
- Oversight of cost , schedule, quality, environment and safety
- Independent, confidential reporting
Our Principals have been in senior management positions within owners and service providers. They know the industry. They have seen mining industry cycles of the last few decades and bring a balanced perspective. They are optimistic about the future and believe many of the changes required are already underway in the industry, and that the lessons learned from current times will make us stronger.
