Speaking at a South Australian Chamber of Mines and Energy luncheon in Adelaide on Friday, HWE operations manager Rob Morrow said a "re-balanced relationship" was vital.
"Contractors were initially focused on simply digging the hole and the operational and resource risk generally sat with the client, the mine owner. But over time, commodity prices fell, projects become longer term and larger, and the mining fleets required became larger and less flexible," he said.
"It became increasingly difficult to differentiate between where the client's responsibility and risk stops, and the contractor's starts."
Morrow said miners were beginning to realise the need for commercially beneficial relationships for both parties.
'There are some welcome signs emerging that resource owners are recognising that passing off risk does not change or reduce it, and that a commercial arrangement that works for both parties is essential for the future sustainability of contract mining," he said.
"Contract mining has a strong role to play in future mine developments in this country but it must be a balanced, beneficial outcome for all."
HWE has been in voluntary administration since February of this year with an information memorandum recently being released regarding the sale of HWE, which currently has 20 mining contracts in place around Australia. Morrow said since administrators had announced commencement of the sale process last month there had been "strong interest from competitors, industrial groups and financial suitors."
A number of HWE's operations have already been sold, including the Bengolan coal project in Indonesia, African Mining Services, Simon Engineering, the Northern Territory Toyota dealership, and the NT and Western Australian civil construction arms
