WA miners wise to gird themselves in case resource upturn more than a ‘Trump Bump’
Western Australia’s miners might need to gird themselves to make the most of rising resource prices and demand, following a downturn cycle.
That’s according to CQUniversity Asset and Maintenance Management expert Dr Subhash Sharma who says it may be difficult for some companies to meet a boost in demand from a standing start, unless they can upgrade their staff capabilities.
Dr Sharma says CQUni is establishing its new campus in the Perth CBD along with postgraduate programs in Asset and Maintenance Management, Engineering, Project Management and OHS just at the right time, when the resource industry could be in upturn mode.
He says the US market generally declines in the wake of a presidential election. For example the market fell on the elections of Obama (5.27% in 2008; 2.37% in 2012), Bush (1.58% in 2000) and Reagan (0.73% in 1984).
“This appears to have had an effect on the resource sector worldwide, while Trump seems ‘not pro-climate’ and Trump and Pence have claimed they will ‘end the war on coal’. His victory is a clear indication of price hikes in coal and iron ore.
“Now iron ore prices have jumped another 6% while coking coal prices are up by 2% . Iron ore premium trading to China is at least at a 16% premium rate. Though it is difficult to predict iron or coal prices, the mood of market does not look like receding.
“If this continues, the Australian mining industry will have to gird themselves as demand is likely to rise.
“Hays recruitment agency has clearly indicated that employment in the mining sector is on the rise. Thus, we are advising industries to start looking up as it may be difficult to meet the demand suddenly. No-one can guarantee the resource sector boom is around the corner because it could also be a Trump bump. However, the downturn cycle appears to be too long and it’s time for an upturn.”