DRILLING SERVICES AND SUPPLIERS
CONFIDENCE is returning to the mining industry, which the Australian Drilling
Industry Association (ADIA) hopes will be followed up by consistency.
According to ADIA chief executive Peter Hall, while no records were being broken, “things are ticking over”.
“And if it keeps going the way it is, members are going to be pretty happy with their 2020,” he said.
Mr Hall said that investing back into equipment would require higher pricing to get rigs automation-ready and to keep them up to date with the latest cutting edge safety equipment.
“We would just love to see some consistency and certainty return to the industry,” he said.
“It would boost everyone’s confidence to invest back into the equipment.
“The majority of our members are sitting at about 70-80pc utilisation, so they’re pretty comfortable, and everywhere I go, the outlook is positive for 2020.
“This year, we’ve seen about a 10pc increase in utilisation of drill rigs which is a slowing from the past two years, but growth is still flowing.
“You never know what’s around the corner, but the majority of contractors are looking pretty optimistic for the new year.”
If results from the September quarter can be used to gauge the new year, the ABS has indicated a positive outcome for the exploration sector, with overall exploration expenditure continuing to grow.
The trend estimate increased by 5.4pc ($34.4m) to $671.6m, the estimate being 21.4pc higher than the September quarter in 2018.
The largest contributor to this rise was WA, up 7.2pc ($28.5m).
And relationships between drilling contractors and mining companies continue to improve, even if only incrementally.
Many drillers do however have regrets over the contract awarding shifting from the geos and exploration people, over to the procurement departments, feeling that this is damaging relationships.
Today’s drillers are a far cry from the, crew who learned-on-the-job and did long stints in the field, conditions that garnered them a reputation among geos as being the cowboys of the industry.
They may not wear a suit and tie, but they are every bit the highly skilled professional with a high degree of technical knowledge.
The rigs themselves are now more advanced and complicated than ever before, and the introduction of automation and remote control into the drill rigs will see the level of technical sophistication required by drillers increase dramatically in the coming years.
The entrenched bad blood toward drillers has been a difficult process to break down, but the next generation of contractors has the ability to influence the industry in a very positive way.
ADIA is the peak body representing the drilling industry in Australia.
It is made up of individuals and companies who are dedicated to improving the skills, safety, and overall professionalism of the drilling industry.
ADIA is the voice of its nearly 800 members and provides collective representation of the matters that affect their businesses and livelihoods.
Members have advanced the professional standing of the industry by opening a dialogue with state and federal agencies, industry bodies and the wider public, and ADIA has assisted its members in increasing their skills and knowledge through regular training courses and seminars.
More information: www.adia.com.au.