**aussie gold producers to go bust?**, page-16

Hi Tas

Mining contractor costs have gone up 30% in the last 12 months. Its real. Input costs have gone up, not contractor margins.

Contractors are also lowering decline development rates, etc as they cannot train skilled people up quick enough to match experienced personnel.

That is killing these new projects, and will also come out as new contracts are negotiated at established operations.

Whether it is long term who knows. Everything is cyclical.

Cheers
ac