Australian miners warn of labour shortage, higher costs
Australian mining firms said a dearth of skilled labour hit output and warned of lower production in fiscal 2022 and 2023, while also grappling with a surge in costs.
Strict border restrictions in the mineral-rich Western Australia state were lifted in March this year, but rising Covid-19 cases in the country, due to Omicron variants, have led to increased absenteeism, leaving firms scrambling to find mine workers and train drivers.
Here is a round-up of what the miners have flagged:
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BHP GROUP
The global miner warned that a tight labour market, supply-chain snags and inflationary pressures would continue through fiscal 2023, and reported a fourth-quarter iron ore output that missed estimates.
RIO TINTO
The Anglo-Australian mining giant warned pandemic-related labour shortages in Western Australia and rising inflation would hit its underlying earnings in the second half.
WHITEHAVEN COAL
The coal miner flagged that general labour shortages "remain a key challenge" for its operations, even though it posted a jump in fourth-quarter production and forecast record core earnings for the coming year.
YANCOAL AUSTRALIA
The coal miner cut its 2022 output forecast, signalling a hit from floods in New South Wales and pandemic-led labour shortages.
ALLKEM
The lithium miner expects lower ore output in fiscal 2023 due to a skilled labour crunch in Western Australia, although prices for the metal are expected to be higher in the current quarter.
SOUTH32
The diversified miner said adverse weather conditions and pandemic-led labour disruptions impacted its quarterly total coal production.
