Squeezing the margin: Cost pressures continue to build on mining sector

Interest rate rises, wage pressures, and high fuel prices continue to pile on miners’ profits. Andrew Smith, Martin Jones, and Stewart Howe examine these key cost pressures and the path that may lie ahead.

Test... For the first time in over a decade, widespread pressure on prices and steep increases in interest rates, with more expected in the near term, appear to be stemming global growth. Central bankers face the challenging task to contain spiralling inflation and wages without triggering a recession. The Reserve Bank of Australia’s August 2022 revision forecast Australia’s headline inflation rate to reach 7.75 percent by the end of 2022 with Australia’s cash rate increasing again on Octob...

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Authors: Andrew Smith, Martin Jones

Published Date: 18 October 2022