The year 2012 saw a slowdown in the mining industry due to falling commodity prices and global economic uncertainty. Mergers and acquisitions in the mining sector fell over 30% in the first half of the year. Many mining companies instituted hiring freezes and spending cuts as profits declined. The coal industry was particularly hard hit, shedding over 2,000 jobs by September. However, mining industry consultancy Confiance assisted many clients through downsizing and finding new opportunities arising from the market conditions. Confiance also helped preserve industry expertise by connecting talented candidates with new opportunities. While challenges remained, Confiance aimed to enhance productivity and effectiveness for mining organizations through tough industry cycles.

1. Newsletter – November 2012
2012 - The Year in Review
As 2012 began, it looked to be another busy year for In the midst of lethargic deal making the axe began
mining mergers and acquisitions following in the to fall. Job losses and mine closures were across the
wake of two stellar years for the mining industry. board, as market conditions made the profitability of
Glencore International announced their mega bucks many ventures seem impossible. The coal industry
deal, a $53.6 billion bid for Xstrata, plus a handful of was hit hard with the loss of over 2000 jobs by
other billion dollar projects were floating around for September. Our skills shortage problem was a thing
good measure. The stage was set, and the year was of the past as talent flooded the market.
shaping up well for the mining industry as a whole,
and we at Confiance were rolling our sleeves up, Confiance like all mining industry players
ready for any challenge. Our biggest problem at that understands the cyclic nature of our industry.
point, was how to solve the growing skills crisis to Markets don’t grow in a straight line and the slower
support our bullish and highly optimistic clients. phases simply offer different opportunities. Newer
players enter the market taking advantage of lower
Not for long however. The foreshadowing was there valuations to enter merger and acquisition
on the commodities market. Although still performing discussions, and corporations looking to new and
reasonably well, there was definite decline from the creative ways to fund their projects.
previous year. The mineral development and mining
companies were cautious, but still forged ahead with Taking advantage of the rich candidate pool on offer,
growth and expansion projects, despite the Confiance has been able to assist new players find
continuing debt troubles in Europe, and the slower some great talent, and more importantly helped the
pace of growth in China. industry preserve the extraordinary intellectual
capital. Confiance also identified a need in the
There is no doubt the global economic uncertainty market place to help organisations with their
and the drop in the commodity prices had a restructuring needs, including downsizing and out
significant effect, and led to a marked slowdown in placement. In particular, Confiance have been
merger and acquisitions in the first half of 2012. In instrumental in providing out placement counseling
fact, the volume of global mining M&A deals fell more and assistance for affected personnel.
than 30% in the first half of 2012. Investors were
beginning to lose faith. Mining companies were In tough times, corporations have to take advantage
beginning to feel the pinch. We started to see the big of every opportunity to improve productivity.
players freeze recruitment and commence spending Confiance has continued to assist companies
cutbacks. utilizing video performance analysis techniques to
train and improve operator performance, thereby
The second half of the year continued on a similar improving mine productivity.
note. There were small signs of recovery in mid-
September after the US and European banks 2012 has had some peaks and a pretty long trough
announced stimulus plans. The gains were moderate to negotiate. The challenges have been plentiful, the
at best, however, the investment jitters persisted. In solutions resourceful and the outcomes rewarding.
addition, the introduction of the mining and carbon Confiance will continue to partner with organisations
taxes on the 1st July did not aid our international in the heavy industry sector to enhance their
competitiveness. productivity and effectiveness through these tough
times in our industry. Roll on 2013.
Miners of course felt the squeeze. Companies who
had in recent years, been riding the wave of high
commodity prices. Spending cuts and project delays
started to be the norm, while the market tried to gain
some traction and maintain a more solid footing.
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Email: info@confiance.com.au Website: www.confiance.com.au