Powered by momentummedia
nestegg logo
Powered by momentummedia
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Invest

Why mining might build COVID-19’s metaphorical bridge

  • April 21 2020
  • Share

Invest

Why mining might build COVID-19’s metaphorical bridge

By Grace Ormsby
April 21 2020

Mining could be the “way forward” for Australia post-pandemic, according to KPMG.

mining

Why mining might build COVID-19’s metaphorical bridge

author image
  • April 21 2020
  • Share

Mining could be the “way forward” for Australia post-pandemic, according to KPMG.

mining

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.

Why mining might build COVID-19’s metaphorical bridge
mining
nestegg logo
Advertisement

Advertisement
Advertisement
Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

About the author

author image

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

more on this topic

Listen
Watch
Read
Financial terms made easy

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.