“Unlike the plantation industry where you can make better estimations by counting the number of trees and seeing the fruits, for us [in the iron ore industry], we will have to conduct investigative work to discover those results,” says executive director and COO Lim Wei Hung of the Malaysia-based iron miner in an interview with The Edge Singapore.
The mining industry is a hugely risky business where the risk-versus-reward calculation involves a high element of chance and lots of digging. Profitability is also not assured given volatile commodity prices and costly operational overheads. This means that fortunes can quickly be made or reversed depending on what you dig up from the ground.
That is the case with Southern Alliance Mining which can now look forward to a better FY2023 ending July 2023 now that it has discovered more iron resources at its Chaah mine in Johor despite reporting lower earnings for its most recent FY2022.
