It’s been a tough few years in the mining industry, with 2015 being a particular low – a shift away from fossil fuels and poor commodity prices forced many Australian mining companies to abandon projects and cut jobs. A new year brings all sorts of new possibilities with it though, so what’s in store for 2016?
Copper of the future
Professor Peter Dowd from Adelaide University’s Institute for Mineral and Energy Resources recently spoke of promising projects that won’t rely on commodity prices, such as the South Australian government’s copper strategy. “I think this is the only way to at least mitigate the cyclical fluctuations in the industry,” he said.
The government wants to promote exploration in order to make Australia the third-largest copper producer in the world. This would attract more investment in the mining sector and help combat some of the damage done to companies over the last couple of years.
The continued fall of iron ore and coal
Iron ore has fallen below US$40 per tonne and many analysts are predicting that it will continue to fall – potentially below US$30 per tonne.
The future of coal is looking similarly bleak, as approximately two thirds of coal miners are making a loss. Many companies, such as Anglo American, have been forced to restructure and let thousands of employees go. And with the increasing shift away from fossil fuels in the global market, this trend doesn’t look set to change any time soon.
Tough to call
Overall then, the future is looking uncertain for the mining sector, but arguably brighter than it was last year. As always, we at Drake Trailers – your transport trailer manufacturers – will keep you updated on all the latest industry news to ensure your business can adapt to any changes.
Trailers for the mining industry
Here at Drake Trailers, we’re the go-to trailer manufacturers in Australia for mine site trailers, heavy transport trailers, and heavy equipment trailers. Whether you need heavy haulage trailers to move your vehicles from one mining project to another or specialised mine site transporters, we can help. Contact a member of our experienced team to find out more about how we can meet your mining equipment needs.