How fast can mining companies downsize? I would imagine pretty quickly as most employees are temporary contract workers, exploration projects can be cancelled and mines can be mothballed. Is this a reasonable assessment?
How fast can mining companies downsize? I would imagine pretty quickly as most employees are temporary contract workers, exploration projects can be cancelled and mines can be mothballed. Is this a reasonable assessment?
Yes SirHenry they can and do downsize very quickly, once the decision is made to do so. There usually is a lot of consideration done before that decision is made. Companies take a looong time and a lot of money to get to the point where actual mining takes place. Therefore decisions about shut downs are resisted, cost cutting, cutbacks and downsizing are usually done first. In mining starts are always very slow, but ends can be very abrubt.
Most who work and/or invest in the industry should be acutely aware of that. Those who work on mines should probably ensure they squirrell off some funds in alternative investments for that rainy day (and not the latest ute).