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Tough times for mining companies ahead

As Dickens may have said, “It was the best of times, it was the worst of times,” and the current economic climate provides nothing short of a thrill a minute. Many businesses are trying to adapt their strategy to the current times, and new solutions like serviced office locations, available via http://www.regus.com.au/products/offices/serviced-offices.aspx/, are emerging throughout the country. Aside from location, the expenses/venue balance is coming to the forefront increasingly of late. At the same time one of the world’s biggest mining corporations announced the need to cut back and reduce its expenditure, other companies have been able to ride the wave of uncertainty and flourish under, what are largely considered to be, very trying financial circumstances. The business two cities we’re going to be looking at here are Sydney and Brisbane.

Anglo-Australian mining kingpin Rio Tinto PLC has announced its plans to close the Sydney office, in order to cut operational costs as the price of iron ore, a key commodity, plummets. The Sydney office employs 30 people and Rio Tinto has announced that it will continue its operations from serviced offices whenever business brings it back to Sydney.

The news was announced just two weeks after the company communicated that jobs would be lost in Queensland, at its Clermont coal mine. The cut backs were motivated by a decrease in demand for thermal coal which dropped to its lowest rate in two years. Thermal coal is used predominantly to fuel power stations.

Shares in the mining giant are currently trading dangerously close to their lowest in the last three years, as an increase in mining costs and a drop in commodity prices take over. This activity stands in stark contrast to the profits that were generated last year, as the demand from China and Asia as a whole boosted business and productivity. No announcements have made pertaining to the company’s administrative center in Melbourne or any of the regional centres that operate the logistics of the company’s mines that produce diamonds, iron ore, uranium and coal.

While the door shuts for one company, it opens for another and, while some companies are more concerned with cutting back and economising, others are still doing business in premier environments. The Executive Center has opened a new, fully serviced business center in Brisbane, offering only the most exclusive and upmarket services to a discerning clientele.

The Executive Centre operates 47 business centres in 18 cities and is well known for its cutting edge infrastructure and high quality fit outs. The company has entrenched itself firmly in the Australian market over the last decade, and operate four centres in Sydney alone, which cater to the likes of Morgan Stanley, Microsoft, AIG and Cisco.

The new business centre is expected to cater to the whims of multinational and local companies and has identified Brisbane as a mature city with a rapidly growing business scene. Brisbane is the headquarters for a number of multinational enterprises and expanding businesses with an acquired business taste and The Executive Centre has the services and facilities to boot.

The expansion of the company into Brisbane is an integral part of its US$18-million expansion project planned for the Asia-Pacific region. The Executive Centre has enjoyed a 261 per cent growth over the course of the last seven years and its opening of premier business facilities have taken place in cities like Chengdu, Mumbai, Singapore and Shenzhen.

The new centre is located in Brisbane’s Golden Triangle district at One One One Eagle Street, a prime location that is close to leisure activities, lifestyle essentials and an impressive transportation network. It will take pride of place among a number of prestigious businesses occupying the high rise building. The facilities include state of the art technology, Herman Miller modular furniture and a full communications system, complete with video conferencing facilities with a sharp focus on quality and attention to discerning detail. The company has also announced further plans to expand in Sydney and Perth.

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Jenni Proctor

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