Deloitte Itemizes Hurdles Ahead for Australian Mining in 2009


"There is neither a magic bullet nor a one-size-fits-all solution to the challenges mining companies face. But there is opportunity."

The top issues put forward for the mining sector by Deloitte's Energy & Resources Group takes in the predictable forecast of a roller coaster ride for commodity prices. Issues noted include a double squeeze of higher costs, growing difficulty in finding quality assets, lower prices and the tightening of credit.

The survey also warned of challenges with a tightening regulatory environment, electrical power shortages, talent and equipment shortages, political and tax policy volatility and the imperative to consolidate.

Despite these hurdles, the longer-term outlook remains strong. Between managing costs, mitigating shortages, reducing risk, streamlining consolidation and improving compliance, the mining sector can continue to lay the foundation for growth despite current economic conditions.

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