OREANDA-NEWS. April 03, 2015. 85% of Metals CEOs and 56% of Mining CEOs worry about the availability of key skills.
Metals CEOs see heightened risks for the industry owing to volatility currently on the raw materials markets, the slowdown of the Chinese economy, and more stringent government regulation. Russian metals companies are also influenced by these factors. However, their position is unique in its own way. Notwithstanding the expected contraction of domestic demand as the Russian economy slips into recession and the rouble’s devaluation at the end of 2014, Russian companies have dramatically enhanced their competitive edge on global markets and moved towards the leftmost point of the cost curve. At the same time, the devaluation effect may come to naught as early as two years from now. Therefore, Russian companies now have a window of opportunity to improve their labour productivity, energy efficiency, and the quality of investment programme management. At the same time, doing this will be more difficult after the next two years.

Evgeny Orlovskiy, Partner, Advisory Services, Mining & Metals