Mining firms to hire more staff

Despite the unpredictability of the global mining industry including Ghana, the prospect of hiring more staff is on the cards, according to a survey by Pedersen & Partners.

From the 160 companies surveyed across the sector, 33 per cent indicated that they will be hiring more staff, while 50 per cent said they will maintain their work force. Fifteen per cent suggested that they will be restructuring, while the remaining five per cent indicated they will be bringing back staff that were laid off.

The survey noted that the overall perception is that miners appear to be cautiously optimistic with most firms predicting that 2013 will be very similar to last year or improving somewhat.

However, it was not all good news as 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.”

Forty-seven per cent of the respondents expect mergers and acquisitions to be a part of their growth strategy this year, while 31 per cent said it will be considered for the right opportunity and 22 per cent 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.