Clearly the mining service industry is experiencing challenging times. Many mining service companies face the need to make significant changes to their business model in order to survive, with little hope of growth in the short term. However, there are strong opportunities for mid-sized METS companies that embrace thorough strategic planning to adapt and flourish through innovation. The sector is also fragmented and now is a great time for better performing companies to achieve growth through M&A. Rio Tinto Australia MD Phil Edmands shares some great ideas in this article
WE NEED a better Mining Equipment and Technology Services sector. That is the word from Rio Tinto Australia managing director Phil Edmands at a mining conference yesterday. Supply Side by Australia’s Mining Monthly editor Noel DysonEdmand’s comments were later echoed and expanded upon by Rio Tinto group executive, technology & innovation Greg Lilleyman. Australia is in a unique position to capitalise on a burgeoning METS sector. However, as Edmands points out, the nation faces some issues – not least that it is a high cost economy. Basically, Australia needs to become more competitive and make the most of every competitive advantage it can get – through the enabler of technology and innovation.