Pitfalls and Pipelines - Philippine Indigenous Peoples Links

Chapter 1.2: Financial Innovations and the Extractive Industries
47
On the contrary, in a June 2012 survey, undertaken by
the Mining Recruitment Group of global mining company
executives, 20 percent stated they have already begun layingoff
existing employees, while 24 percent had implemented
“company-wide hiring restrictions.” Thirty two percent noted
a reduction or elimination of incentive pay, while eight percent
had cut salaries.
“With drastic cost cutting measures having been implemented
and a fear of the availability of capital,” according to
Mining Recruitment Group, 60 percent of its respondents
did not expect to recruit over the following six months. Even
the remaining 40 percent, which did plan to do so, primarily
sought blue collar, rather than relatively unskilled, workers. 15
Far From Secure Mining Futures
In an attempt to evaluate the previous 15 months’ attrition
of the minerals industry, Ernst & Young in 2009 concluded
that: “At this point in the cycle, Asian investors [have] emerged
as the new buyers, cash-rich and ready to take advantage of
the opportunities that abounded as valuations dropped and
struggling companies became the target of bargain hunters.” 16
Ernst & Young went on: “The emergence of these new
investors, combined with a quick rebound in demand in Asia
and prudent spending, allowed the industry to weather the
storm of unsustainably low metal prices and emerge into the
calm as prices reached more realistic levels.” Ernst & Young
said it was now banking on China and India, in particular, to
“promote a strong seller’s market” in the near future, judging
that “[t]he events of 2008 have fundamentally changed the
way the industry will be financed in future.”
A brief examination of China’s recent mining-related
mergers and acquisitions initially confirmed this prognosis.
The regime’s mineral-dependant industries have undoubtedly
snapped up sizeable chunks of—and a few entire—companies,
as those industries benefited from depressed commodity prices
prevalent during 2009-2011. Those new “ways” of promoting