A good story today from BRW:
Allan Ruming has watched Mackay’s fortune unravel at close quarters. As mining companies slash spending in the face of falling commodity prices, the revenue of his engineering company will plunge from $7.4 million to $2.4 million this financial year – and $1.9 million of that came in the six months to December.
“It didn’t slow down – it dropped off a cliff in late August into September, pretty much in a week,” says Ruming, who is managing director of conveyor belt specialist Group Engineering.
“Every one of the major mining companies was cutting back and cancelling projects, they stopped jobs and put things on hold and that set the pattern for the next three to four months. That period got really uncertain.
“Then it all just went to hell in a handcart for many companies.”
Ruming’s company employs just four people. Last year he had a team of 35.
Welcome to the dark side of Australia’s mining boom. Home to the Hay Point coal terminals, the main gateway between central Queensland’s vast coal reserves and the outside world, Mackay and its many businesses were among the biggest beneficiaries of the resources boom.
And on it goes. Got to take a trial to read the full story but it’s a ripping yarn. And to think, I reckon coking coal has another 20-30% downside, hope I’m wrong…
