Cost focus for 2016 mining: Deloitte

Consulting firm Deloitte has picked ten trends which it says will dominate the mining industry in 2016, including further pressure for producers to reduce costs and adoption of innovations from other industries.

Deloitte national mining lead Nicki Ivory said business cycles in the industry were lengthening, with an upswing potentially still years away.

She said the operating environment remained volatile.

Miners needed to be more willing to adopt innovations from other sectors, including 3d printing, digital workforce engagement and enhanced asset management, an example of which was the increased use of sensor equipment, Ms Ivory said.

Strategic alliances should be considered, too, to share resources.

On the mergers and acquisitions front, deal activity will soon pick up in gold and then in copper and nickel.

Deloitte also advised miners not to divest but to buy counter-cyclically.

Other changes will include a rise in alternative financing.

It comes after September quarter GDP growth figures show mining expanded 0.3 per cent nationally, second only to financial services.