Mining recovery not all good news

Reports of WA’s “mining bust” being over could be bad news for Collie, according to the town’s chamber of commerce and industries president Glyn Yates.

The Reserve Bank of Australia assistant governor Christopher Kent announced on Tuesday the passing of the worst damage from the end of the mining boom.

Mr Kent said there were good signs for the economy and he expected the unemployment rate – which was at 6 per cent in WA – to fall.

Mr Yates said if the mining bust recovery forced the price of labour to go up, it could have a negative impact.

But he said the attraction of “living at home” while working in the mining industry worked in favour of the community.

Mr Yates said while mining in Collie was a long-term indu-stry it would not necessarily benefit from the RBA’s announcement.

“From our perspective we are in different scenarios,” he said.

“We certainly have economic challenges we need to work through.

“We need to turn to profitability first to drive our industry and community.”

Collie-Preston MLA Mick Murray agreed with Mr Yates and said the fixed price of coal meant the RBA’s news would have little impact.

“We are not really on the open market,” he said.

“What does concern me is the wind-back Statewide in the mining sector, which will affect fly-in, fly-out workers in the South West.”

Mr Murray said the news that Griffin Coal’s Indian owner Lanco Infratech had invested millions of dollars in the company was positive for the region’s mining sector.

The first annual figures by Griffin Coal in four years were released last week and revealed the mine lost $37.7 million in the 12 months to March 31, well up from $25.1 million the year before, lifting its accumulated losses to nearly $373 million.

But the report also revealed that Griffin Coal’s survival is dependent on the ongoing support of Lanco Infratech.

“It just shows that Lanco still has faith in the mine,” Mr Murray said.

“If they can get through their problems there could be some positives.”