Drilling companies say a tight labour market is leading to an increased wages bill, and they expect to push through higher rates in new contracts for their mining clients.
Mitchell’s chairman, Nathan Mitchell, said the tightening labour market was “going to be an issue, going forward for all business, I think in the next 12 months”.that the “pressure is starting to come” in wages, with some areas particularly hot, such as surface drilling. Salt Lake City-based Boart Longyear, which boasts almost 310 rigs operating globally and an ASX listing, also on Friday detailed a statutory full-year loss of $US57.4 million . A large part was due to hefty finance costs of $US88.8 million after long being laden with massive debt levels.
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