Tipping Point Inflation Creep At Australias Mines To Erode Margins


MELBOURNE – As Australia’s big miners gear up for a new round of expansion after years of belt tightening, prices for everything from labor to fuel to equipment have begun to rise, driving up costs and eating into margins.

Having repaired their balance sheets after a harrowing shake-out from a decade-long mining boom in 2013-2014, miners are again plowing money into new projects.

Companies say they can wring yet more savings from already low-cost operations while investing for expansion, but rising costs suggest their fattest margins may be behind them.

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