Mining could be the “way forward” for Australia post-pandemic, according to KPMG.
According to a new report from KPMG’s global and Australian head of mining, Trevor Hart, recent national data and the success of sector business continuity plans “show that mining remains one of Australia’s most resilient (and critical) industries through the COVID-19 crisis”.
Noting a recent rise in iron ore prices, export earnings forecasts and the sector’s underlying status, Mr Hart said these factors will be “key to the broader ability of the Australian economy and society to successfully cross ‘the bridge’ to the other side of the current COVID challenges”.
According to the global head, miners have been working hard since COVID-19 came onto the radar since 2019 to develop crisis management plans and initial business continuity planning phases.
“Although many commodity prices remain volatile, those of Australia’s major mining exports are robust – that is coupled with a weaker Australian dollar and lower fuel prices,” he explained.
“In addition, we are seeing continued profitability, underpinning about 250,000 jobs directly and many more indirectly, through critical supply.”
He touted that the Australian mining industry is also continuing to provide vital supply lines to critical regional economies, including China, Japan and South Korea.
And while a number of mining commodities are facing different market pressures and price volatility, which led to valuation drops of up to 20 per cent for copper, nickel and aluminium in the March 2020 quarter, “the Australian mining industry is truly a world-class sector”.
“In spite of the COVID-19 challenges, mining remains one of the most resilient and technologically advanced mining industries in the world,” Mr Hart continued.