William H. Wilkinson: An Interview With The 2009 SME President

What is your assessment of the current state of the minerals industry? It is no understatement that domestic mining is facing a severe crisis at this time. The sharp decline in commodity prices and demand is putting a great strain on domestic and worldwide mining, causing major declines in profits and market capital of mining companies. This, in turn, has lead to major production cuts, layoffs, shut-downs of operating properties, and the deferral of new and expansion projects. These changes in the minerals industry have played a major role in the health of the economy. Operationally, the industry continues to develop new technologies that are making our work more efficient, more cost effective and more environmentally acceptable and safe. During downturns like this, companies generally pay closer attention to operational efficiencies and process optimization. Historically, new technologies and processes tend to be developed during down markets, and I believe we will see the same thing as companies strive to preserve liquidity and maintain or improve their margins. On the positive side, the drop in commodity prices has resulted in a reduction in operational costs, as the costs for fuel supplies and construction materials have decreased.