The second quarterly Australian Mining Business Sentiment Survey has revealed that Australian mining professionals are starting to release budgets previously frozen as a result of the global financial crisis.
Forty four per cent of respondents said they were looking to specify/authorize/purchase more than $100,000 of expenditure in the next three months, up from 32.1% in April 2009.
Miners are also increasingly optimistic about the future of their industry over the next three months, the survey found.
More than 65.7 % of industry professionals said they were either very optimistic or optimistic about the about the future of the Australian minerals industry over the next three months, up from 55% in April this year.
Job cuts and redundancies have decreased since April 2009, with 44.8% of respondents indicating there have been job cuts at their workplace over the last month as a result of the global financial crisis, down from 53.1% in April 2009.
The Survey found that 35.8% of respondents selected economy instability as the major factor affecting mining operations, with major factors also including commodity prices and capital raising.
More than 12,000 subscribers to MINING DAILY, Australian Mining’s daily mining news service, were asked to complete the Sentiment Survey over two weeks from July 1, 2009.
Full results
How optimistic are you about the future of the Australian minerals industry over the next 3 months?
<table
<td
July 2009
<td
April 2009
Very optimistic
<td
14.2%
<td
6.2%
Optimistic
<td
51.5%
<td
49.8%
Neutral
<td
26.1%
<td
27.3%
Pessimistic
<td
6.7%
<td
15.8%
Very pessimistic
<td
1.5%
<td
1%
What are the key issues affecting your operation?
<table
<td
July 2009
<td
April 2009
Production
<td
11.2%
<td
4.8%
Commodity prices
<td
16.4%
<td
19.6%
Capital raising
<td
11.2%
<td
9.6%
Economy instability
<td
35.8%
<td
43.5%
Recruitment
<td
2.2%
<td
2.4%
Efficiency
<td
6.7%
<td
7.7%
Human resources
<td
6.7%
<td
2.9%
Other (please specify)
<td
9.7%
<td
9.6%
Which of the following areas do you plan to specify/authorise/purchase in the next 3 months?
<table
<td
July 2009
<td
April 2009
Safety Equipment
<td
43.3%
<td
35.4%
Minesite Vehicles
<td
17.9%
<td
11.5%
Electrical Equipment and Cables
<td
11.9%
<td
13.9%
Contract Mining and Services
<td
17.2%
<td
15.3%
Bulk Materials Handling
<td
6.7%
<td
6.7%
Quarrying, Crushing & Screening
<td
10.4%
<td
6.7%
Minerals Processing Equipment
<td
14.9%
<td
10.0%
Instrumentation & Process Control
<td
14.2%
<td
11.5%
Pipes, Valves, Pumps and Compressors
<td
14.9%
<td
10.0%
Motors and Drives
<td
11.9%
<td
10.5%
Mine Ventilation and Dust Control
<td
6.0%
<td
6.2%
Environmental Management
<td
13.4%
<td
9.1%
Materials Handling
<td
18.7%
<td
9.1%
Cranes & Lifting
<td
11.9%
<td
5.7%
Maintenance
<td
26.1%
<td
24.9%
Drill & Blast
<td
8.2%
<td
4.8%
Wear Resistance
<td
11.9%
<td
7.2%
Mine Automation and Remote Control
<td
6.0%
<td
4.8%
Pneumatic & Hydraulic Equipment
<td
9.7%
<td
6.2%
Shotcreting & Support
<td
3.7%
<td
3.3%
Other (please specify)
<td
22.4%
<td
22.0%
How much will you personally specify/authorize/purchase in all business spending in the next 3 months?
<table
<td
July 2009
<td
April 2009
None at all
<td
22.4%
<td
33.5%
$20,000 to $100,000
<td
33.6%
<td
34.4%
$100,001 – $500,000
<td
21.6%
<td
15.3%
$500,001 – $1,000,000
<td
9.0%
<td
7.2%
More than $1,000,000
<td
13.4%
<td
9.6%
What key factors affect your operation’s production levels?
<table
<td
July 2009
<td
April 2009
Safety incidents
<td
22.4%
<td
17.2%
Recruitment
<td
11.2%
<td
8.1%
Maintenance/wear resistance
<td
22.4%
<td
13.9%
Economic conditions
<td
50.7%
<td
63.2%
Onsite conditions
<td
23.9%
<td
22.0%
Commodity prices
<td
26.9%
<td
27.3%
Other (please specify)
<td
6.7%
<td
7.7%
What impact has the state of the global economy had on your business?
<table
<td
July 2009
<td
April 2009
Severe negative impact
<td
10.4%
<td
15.3%
Negative impact
<td
55.2%
<td
63.6%
No affect
<td
24.6%
<td
13.4%
Positive impact
<td
9.7%
<td
7.2%
Excellent impact
<td
0.0%
<td
0.5%
Have there been job cuts at your workplace over the last month as a result of the global financial crisis?
<table
<td
July 2009
<td
April 2009
Yes
<td
44.8%
<td
53.1%
No
<td
55.2%
<td
46.9%
Respondents profile:
Primary function:
Equipment and product distribution/supply 20.9%
Engineering/Technical 26.1%
Contract management 6.0%
Recruitment/human resources 3.7%
Exploration 3.7%
Mine management 8.2%
Purchasing 5.2%
Communication and marketing 7.5%
Maintenance and/or skilled work 9.7%
Heavy vehicle operation 2.2%
Process engineering 3.0%
Occupational health and safety 9.0%
Environmental management 3.7%
Other 17.2%
Sector:
Exploration 9.7%
Mining & mineral consultation 14.2%
Metal ore mining 24.6%
Iron ore mining 19.4%
Coal mining 38.1%
Mining services 31.3%
Contract mining 8.2%
Precious stones 5.2%
Other (please specify) 19.4%