What Brazil's Political Crisis Could Mean for the Brazilian Mining Industry

Demonstration in Brasília outside of the National Congress Building.

If you've been paying any attention at all to global news reports, then you're aware that for some time, there's been trouble brewing in Brazil. To summarize an excellent article appearing in CNN Money, the unrest is due largely to dissatisfaction with rampant political corruption, a tanking economy, and wildly soaring stock market values.

Throughout the month of March, while rumors of President Dilma Rousseff's impeachment flew, demonstrators took to the streets in many cities across the country, with huge movements in São Paulo even leading to clashes between police and anti-government protesters.

What does all of this mean for the Brazilian mining industry?

In the short term, nothing good. Anything that disrupts the smooth operation of a country negatively affects the country's industries, and the mining industry is no exception to this. If the protests continue, Brazil may struggle to retain even its current (questionable) level of economic stability. No one would desire to see this situation develop.

On the other hand, these protests could benefit Brazilian mining in the long run. If the protests lead to a national movement to abolish corruption improve the national economic policies and general governance, then Brazil's tanking economy has a chance of turning around, benefiting all industries - including mining. However, just like an ultra-class haul truck, national economies the size of Brazil's don't turn on a dime. Any turnaround in the economic fortunes of Brazil will probably take a couple of years at the very least.

As you know, we've been following this story as it has developed throughout March, and we plan to follow it to its conclusion. If you have questions, comments, or concerns, feel free to sound off the comments.

As always, remember that we carry a full line of OTR tires for all of your mining needs. Feel free to contact us for information on our product lines or to consult on our current deals.

Image credit: By Agência Brasil CC BY 2.0, via Wikimedia Commons

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Possible Blueprint for Turning the Australian Mining Industry Around?

It's no secret that the Australian mining industry has been in free fall for quite some time. Mines and plants are closing, jobs have been cut, and small towns that rely on the mining industry for their ongoing economies are drying up.

Although we have discussed in previous posts that the situation could soon turn around, the evidence so far has not supported such optimistic hopes. Even as recently as early March, news that more than 2,000 mining jobs are set to be cut during 2016 made its way into the Sydney Herald. Clearly the downward spiral continues.

Recently, individuals within the industry have begun asking some tough questions. One of those questions asks this: Why isn't more attention being paid to ongoing innovation and the sort of technological development that set the Australian mining industry apart through the early Nineteenth and Twentieth Centuries?

Almost no profiling has been provided when discussing the benefits of innovation and technology within the resources sector that has demonstrably provided over a sustained period some of the most effective innovation and new technology developed in Australia and historically the industry has also been early adopters of new technology (Australian Mining).

If the Australian mining industry has indeed been known for developing new ideas as well as being early adopters of new global technologies, might not this be a good time to play to those strengths? Companies could channel these newly unemployed (but knowledgeable and experienced) miners into areas of research and development, therefore increasing the odds that the Australian mining industry will not completely stagnate while simultaneously combating unemployment.

Do you have questions or comments about this idea? Feel free to sound off in the comments. As always, Remember that we carry a full line of OTR tires for all of your mining needs. Feel free to contact us for the best deals.

Image credit: Blue Diamond Gallery

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