The outlook for mining companies in 2011
Now in its second year, our Mining Business Outlook Report 2011-12 expresses the views of 45 mining executives from both small and large resources companies and draws on a series of in-depth, face-to-face interviews covering the economy, capital investment, government policy as well as the sector’s opportunities and challenges.
This year's report found that more than half of the mining executives interviewed (57%) are “very optimistic” about their future growth in the year ahead and 52% are set to increase spending and investment. This is a significant turnaround from last year, when only 38% were very optimistic and only 35% planned to increase capital expenditure. Of those mining executives who are somewhat optimistic (30%) or ambivalent (13%) about their future growth prospects over the next 12 months, the carbon tax is rated the third key reason (12%) for their less positive outlook, after increased costs and tough conditions, both at 29%.
In addition to the carbon tax, the industry’s key challenges for 2011-12 are staff retention and recruitment, cost management, infrastructure constraints and behavioural change management. The report’s Advice to Canberra section reveals more than half of the mining executives interviewed (52%) are calling on the Gillard government to abolish the carbon tax, indicative that opposition to the tax is industry-wide and not confined to the heavy emitting coal companies and other carbon-intensive operators. A further 12% say that the mining tax will be a barrier to the industry’s long-term performance.
According to the report, behavioural change management, a newly identified challenge for the industry this year, is considered key to achieving a zero-harm work environment and improved productivity. It is the ‘how’ to achieve behavioural and cultural change that is puzzling mining leaders.
Our top tips on ‘how’ mining leaders can achieve behavioural change include:
• Be engaged and champion the change – it needs to be a top-down approach;
• Plan, prepare and provide direction to support the change that you are requesting;
• Clearly identify why you are making changes and create an appropriate coaching plan;
• Involve your staff early on in the process so there is a sense of ownership;
• Create a safe and secure environment with a no-blame culture where people can learn from their mistakes.
Download the report here
