By Ben Lee
Australia’s mining industry is facing a reckoning — and not because of what’s in the ground, but because of how we think about it.
A few weeks ago, a Swedish tech services manager told me:
“In Sweden, we try to get everything we can out of the orebody. In Australia, you guys just chase profit.”
It stung. But the more I considered it, the more I realized how deeply short-termism is baked into our mining culture.
After years of conversations with engineers, planners, and mine managers, one thing is clear: Australian mining professionals want to optimise orebody recovery, invest in their people, and plan responsibly. Yet they work in a system that rewards survival, not stewardship.
The evidence is everywhere: delayed development, slashed planning budgets, frozen hiring, and a dependence on price cycles rather than proactive strategy. As soon as commodity prices rise, the cycle repeats.
Compare this with countries like Sweden or Canada, where industry, government, and academia collaborate to steward mineral resources as national assets, planning across generations instead of quarters. In Australia, we burn through talent, squeeze tonnes, and call it efficiency — while others build long-term capability and maximise value over decades.
This mindset doesn’t just threaten productivity — it threatens the entire sector’s future.
A Subprime Strategy
Australia’s mining strategy today feels eerily reminiscent of the pre-GFC financial system. Consider:
- Policy alignment is weak. In Sweden, €18 million in grants is flowing to mining innovation, guided by cohesive policies and strategic frameworks.
- Technology is underused. Companies like Deswik are proving that simulation and optimisation work — but too often, these tools are seen as optional, not essential.
- Pragmatic profit-chasing prevails. Instead of fixing problems, companies defer maintenance, burn cash, and hope metal prices fix the balance sheet.
- Hedging has collapsed. Globally, only five tonnes of gold were hedged this year, leaving the market exposed.
- Capital expenditure is shrinking. Capex is down 18% across many Australian mid-tier and major producers, with projects shelved and cash stockpiled rather than invested.
It’s a system designed to work only when prices are high. When they fall, there is no backup plan.
A Better Long Game
There are positive signs that some Australian companies see the need for change.
Fortescue, for example, is pursuing hydrogen-powered trains, electrified fleets, and a bold 2030 decarbonisation agenda. Deswik is working with engineers to design mine plans that consider cost, recovery, and long-term legacy before operations even begin.
Meanwhile, Sweden and Canada continue to plan for the long haul. Sweden’s state-owned mining giant LKAB is a global leader in hydrogen-based steel, while Canada has built trust-based partnerships with Indigenous communities to support stable development timelines and reduce the industry’s traditional boom-and-bust cycle.
What ties these successes together? True stewardship. It means building systems that prioritise generational thinking over quarterly profits:
- Investment before crisis
- Simulation before failure
- Planning that outlives executive bonuses
If you had to mine the same orebody for the next 20 years, how would you operate differently?
That uncomfortable question should drive Australian mining to rethink its entire culture — before the next price crash does it for us.
About Ben Lee
Ben Lee is a seasoned global mining recruitment and investment specialist with a deep background in connecting high-calibre technical, operational, and executive talent across the international mining sector as Partner and International Business Director at Raw Earth Recruitment.
Throughout his career, Ben has advised mining companies on how to align talent, technology, and capital to achieve long-term growth. He is passionate about modernising the sector, bridging the gap between traditional mining practices and emerging technologies, and fostering leadership that thinks beyond quarterly profits.
Beyond his corporate work, Ben is an influential industry commentator and writer. His insights on mining workforce trends, investment strategies, and operational excellence have resonated with audiences across professional networks, where he frequently contributes articles and thoughtful commentary on the future of mining.
Ben brings a unique perspective informed by hands-on experience across contractor and owner teams, enabling him to navigate the complexities of mining’s boom-and-bust cycles and advocate for more resilient, future-focused solutions. He is committed to helping mining evolve into a more sustainable, innovative, and strategically managed industry. You can connect with Ben on his LinkedIn.
