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Despite the unpredictability of the global mining industry, the prospect of hiring more staff is on the cards, according to a survey by Pedersen & Partners. For the 160 companies surveyed across the sector 33% indicated that they will be hiring more staff, while 50% said they will maintain their work force.
The results show that:
- 28% indicate they will be hiring new employees,
- 5% indicate they will be bringing back staff that were laid off,
- 50% will maintain their current staffing levels, and
- 15% suggest they will be restructuring.
The survey noted that the overall perception is that miners appear to be cautiously optimistic with most firms predicting that 2013 will be similar to last year or improving somewhat.
However, it was not all good news, several small mining firms with market caps below $10m will not survive through the next year, the survey stated.
"Those with proven projects and strong management reputations may be subject to acquisitions or find more fluid funding through private equity, streaming, flow through shares and eventually, some institutional financing."
According to respondents 47% expect mergers and acquisitions to be a part of their growth strategy this year while 31% said it will be considered for the right opportunity, and 22% ruled it out altogether.
The last five years have been a turbulent time for mines with the global recession, operational restructurings, production cuts as well as expenditure reduction. This resulted in flagging confidence in the mining sector.
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