Mining equipment and services firms are being buffeted from all sides and the crude oil slump could’t come at a worse time:
“Traditionally, the industry has taken all the risk and service providers have had a jolly good time. Now we demand that they partner in our risk,” said Mark Bristow, chief executive of Africa-focused gold producer Randgold .
Competition among suppliers has been stiff for the last few years, as mining firms began to come under pressure from investors to cut back. They have already slashed a total of $20-25 billion (13-16 billion pounds) in costs, according to Ernst & Young.
But a further plunge in prices this year has made the pressure relentless — just at the time when the oil sector too is suffering, forcing its own suppliers to consolidate.
Continue reading at The West Australian.
2 Comments
Ron ronny
If your project is that good, why would you want a partner
Zulugroove
Simplistic one liner responses like Ron’s must drive people dealing with these complex issues mad! They show how people’s lack of intelligence make issues even more difficult to deal with. Personally glib one liners I find offensive & rude.