Opportunities in the Contract Mining Industry

Thank you for the opportunity to speak at this important conference attended by aspiring mining professionals, some of whom will become the leaders of the mineral resources industry that forms the solid foundation of AustraliaÆs past and that will fuel the exciting growth of AustraliaÆs future.I want to briefly touch on the history of our business, then look at the opportunities that exist in the contract mining industry and finally comment on what the educators need to consider in their curriculum to meet the needs of our business. Byrnecut started out as an idea in early-1987 developed by a group of four mining people. At the time the industry was on the high end of a mining boom, the era of the Bonds, Connels, Skases and so on. Riding on this wave of euphoria we borrowed $600 000 from the National Australia Bank and, without having enough knowledge to lose sleep over the potential risks, started business in mid-1987. The euphoria quickly evaporated with the 1987 October stock market crash. The bank pulled our overdraft, equipment finance rates increased to over 20 per cent per annum and my house was mortgagedseveral times over. The business learning curve was extreme for a young mining engineer who had developed his trade in the relatively sheltered environment of a large public mining house, namely WMC. We were somewhat bitter that the banks had done a runner. We were a private company, backing the business with personal assets with our shoulders to the wheel, whilst the Bonds of the world had theirnoses in the trough ripping off mum and dad shareholders. All of this had a sobering effect, namely keep your feet on the ground, stick to the knitting, work hard and worship cash flow. Since that stressful but adrenaline pumping beginning the company now employs over 600 people and is now working for major mining houses at over a dozen locations in Australia, east Africa and WesternEurope and the National bank is again our banker. On this basis I consider myself qualified for the subject of this speech.