Profits in a slowdown: How Australian mining companies can cut costs and grow stronger

Published: October 18, 2012

Executive summary

Between 2002 and 2011, Australian mining companies saw costs rise and productivity fall as they raced to meet surging commodity demand. The global commodity boom is fading now, undermining growth strategies based on the assumption of ever-higher prices. Falling prices will squeeze profits at firms with boom-era costs. But those that adopt a Fit for Growth* approach — adjusting their cost structure to support key differentiating capabilities, such as improved market awareness or operations — will boost margins, increase production, and create more value even as the market slows. The techniques outlined in this report, using Australian mining companies as an example, show how resource and commodity producers around the world can cut costs while growing stronger.

* Fit for Growth is a registered service mark of PwC Strategy& LLC in the United States.

Download

Profits in a slowdown: How Australian mining companies can cut costs and grow stronger

Get to know the authors

Related Strategy& thought leadership