Heavy rains have been a key risk to the operations of Newcrest Mining Limited
The firm is listed on the Australian Securities Exchange as a company that engages in mining and sale of gold. However, despite its substantial success in the lucrative business of treasure, the company has faced constant challenges and risks over the last year, as a result of disruptions such as heavy rains and storms.
Cost Inflation
Another significant risk faced by the company is the progressive issue of cost inflation in matters relevant to labor, suppliers, and energy (Battersby 2006). All these have placed a heavy burden on the company’s operations.
Labour and workforce issues
Newcrest Mining faces the shortage of qualified and skilled labor force necessary for effective productivity.
The capital projects in other regions have also posed great risks to the company’s operations
The company also faces the risk of increased variations in production, due to the co-existence of capital projects at Lihir and Cadia Valley.
These risks have seriously impacted the company’s operations and productivity
These risks have intensified over the last twelve months, thus posing significant challenges to the company’s productivity operations. For instance, the company’s gold production levels have dropped substantially, and this has seriously affected its profitability and outlook in the global markets.
Reference List
Battersby, B 2006, ‘Does distance matter? The effect of geographic isolation on productivity levels’, OECD Economic Studies, vol.42 no.1, pp. 205.