Although the mining sector has seen a recent subsidence in prices, a surprising 47% of global mining executives are either optimistic or moderately optimistic about 2009.

That’s according to a survey of 130 mining executives released this week by Canada’s Bedford Consulting Group, an executive search and recruitment firm for the mining industry.

While this group expects to see improvements by the latter half of the year, 45% are expecting improvements no sooner than fourth quarter 2010.

Not surprisingly, 84% of those surveyed indicate that industry improvements are most likely to come from the gold sector.

“Gold is often considered a stable alternative currency and a safe haven, especially during times of economic uncertainty,” says Russ Buckland, managing partner of the Bedford Group. “The rise of gold leads to increased production and stimulates employment growth in the mining industry, and other sectors affected, including retail.”

The survey also indicated four factors holding back the recovery of the industry:
• lack of available credit (84%);
• declining markets for metals (83%);
• volatility of commodities (81%); and
• finding new sources of investment financing (72%).

When asked to identify what is needed to stimulate recovery, credit flow was the top ranked priority (89%), followed by the start of new infrastructure projects (54%).

As the mining sector adjusts to new economic realities, a full 92% anticipate capital project delays and 72% indicate that more shutdown of operations are to be expected. Further consolidation among sector juniors are presumed by 59% of respondents and 43% see a major selling of assets.

A strong focus on employee retainment (25%), leadership development and skills training (54%), and building relationships with schools and universities (64%) were also identified as recovery tactics in the report.

“It’s crucial for organizations in the industry to retain top talent, especially in mining where talent across all levels is expected to decline in the next five years,” says Buckland. “When the industry emerges out of this turbulent economy, organizations armed with the best management and workers will prosper.”

A resurgence of jobs is predicted to emerge with industry recovery, survey respondents project a strong need for Mining Engineers (66%) and Project Managers (62%). There will be a need for mining skills (40%), general management (38%), geologists (37%), and trade skills (35%) following recovery.

IE