Future Directions in Mine Contracting

Australian contract mining as it is known today had its origins in the early-1980s. Before this time there were numerous examples of underground mine development, and specifically shaft sinking being carried out by contractors. However, these were typically international contracting companies who came to Australia for specific projects. Growth in the underground mining industry in the 1980s opened up the opportunity for contractors. Mine owners had a need for contractors who could bring technical and operational capabilities to a project combined with capital in the form of equipment. In the early years the contracting industry was dominated by smaller players who focussed on mine development. The relationship between mine owner and contractor was loose and typically contract documents were rarely referred to. Through the 1980s and 1990s the underground contracting industry in Australia grew to where today there are over 20 underground contracting companies operating in an industry with an estimated annual value in excess of $1 billion. Of these 20 companies approximately five dominate with annual turnovers exceeding $100 million. Underground contractors now provide all facets of underground mining including development and production. Over the last 20 years the underground contracting industry has been able to consistently lower costs to mine owners through a combination of:equipment productivity, labour productivity, and technical innovation.