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Industry solidarity in face

of pandemic threat

It was unavoidable that Paydirt, like The economic fallout from the pandemic could be even greater;
the rest of the globe, would switch its the cure being worse than the ailment, as the saying goes.
focus this month from everything and As we all adjust to the grim realities of our current predicament,
anything else to the impacts the coro- we inevitably begin wondering what the world will look like when
navirus is having and will continue to we come out the other side of the COVID-19 tunnel.
have on the resources sector. The positive among us will see it as a chance to reset. Global
Our cover story is split into two con- markets have been smashed, regardless of asset class, but this
siderations – the public health implications of the virus for industry may not be a bad thing for the resources sector, particularly the
and the economic effects it has created. junior sector.
On the public health consequences, we have seen the industry The bull run on global markets of the last seven years largely
adjust quickly. Both West Australian Premier Mark McGowan and passed junior miners and explorers by. Conditions for these com-
Federal Minister for Resources Keith Pitt met with industry leaders panies were as tough at the start of 2020 as they were in 2013.
early in the crisis, cognisant of the importance of mining to state The COVID-19 induced sell-off could bring other asset classes
and country. back to the pack, giving juniors an even start instead of the handi-
There has been no inclination to close operations as restrictions cap they were battling against just a few months ago.
have tightened, with miners promising to adhere to strict guide- There will also be wider economic factors which could prove a
lines around physical distancing, hygiene and people movement. boost to mining. After the GFC, the world’s major economies used
Government was satisfied enough to exempt mining FIFO workers infrastructure spending as a way of fuelling economic activity. It
from the closure of state borders, although even those exemptions sent metals prices skyrocketing. Indeed, the period 2009-2012
will likely change as the situation worsens. was probably the best miners of all sizes experienced as economic
It is understandable why governments are trusting the sector. stimulus coalesced with cheap debt to create a flood of construc-
The remote nature of our mines means there is no other indus- tion projects around the world.
try, apart perhaps from the Defence Forces, which can track the It is widely acknowledged that first China, then the rest of the
movement of employees like the FIFO mining industry. world will spend big on infrastructure to reverse the economic
A mining company can trace a worker from the Uber ride they trends created by the pandemic.
get to the airport, to who they sat next to on the flight up to site, The results for commodity supply and demand may be even
to who they share accommodation with and who else was in the more extreme this time around.
mess with them. When prices spiked following the GFC, it was at the end of
When the inevitable first site-based cases are identified, mining an eight-year commodity super cycle which had encouraged in-
companies have the ability to contract trace and isolate individuals creased exploration activity across the globe.
quickly and thoroughly. This time around, exploration is in the doldrums and discovery
The challenge is that the lockdown will only get tighter in the rates are at decades-long lows.
weeks ahead and the industry will come under more pressure to There is also evidence from China that the recovery can be
ensure it is performing above expectations in regards its public swift. Last month Pilbara Minerals Ltd signed a new lithium offtake
health obligations. agreement with a Chinese group, the most positive sign yet for
It will be about collaboration from here on and it appears we have Australian mining that its largest customer is preparing to ramp up
made a good start in this regard. Both AMMA head of policy Tom industrial activity.
Reid and CMEWA chief executive Paul Everingham described to We will need these positive signs for sustenance in the long
me a level of cooperation between peers previously not witnessed. months ahead and Paydirt will continue to seek them out wherev-
“It is a real test of our members ability to be collaborative,” Ever- er they are. As well as our usual print editions, we will be expanding
ingham told me. “People are sharing best practice on health and our digital offering, including new video interviews to keep readers
safety and protecting the workforce and communities we work in.” up-to-date during this phase of isolation.
Reid shared a similar experience. On the conference front, we are working hard to rearrange the
“The information sharing has been fantastic,” he said. “There calendar to fit all our events in. The Paydirt team will continue to
has been an openness across employers. They understand we work, albeit remotely, during the lockdown to ensure that when re-
are all in this together and the most effective way to combat it is to strictions are relaxed and the market returns, we are in a position to
be collaborative and frequently in communication.” provider miners, explorers, service companies and investors with
This approach will need to continue as restrictions become more forums to discuss the future.
severe. Mining is a vital employer of Australians, even more so Please check out the new video interviews we have been doing
given big employers such as retail, tourism and hospitality are in and if you want to start a conversation with the Paydirt editorial
no position to stay open. The country can’t afford to have another team, please do so through LinkedIn, Twitter, Facebook or Insta-
20,000 unemployed over the next few months. gram.
Mining must keep operating for the good of the country but can
only do so if it remains isolated from the pandemic.
dominic@paydirt.com.au @DominicPiper

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