Minter Ellison reconstruction partner Michael Hughes said there was an opportunity for stronger companies to pounce on distressed assets.

"Some resources companies have been forced into a 'care and maintenance' phase for their assets,” he said.

“Even so, they will still require cash over the medium term, failing which other options will need to be considered.

"Timing is a key issue in potential M&A, including taking into account the distressed aspect of the asset."

Hughes said there was likely to be more companies going into voluntary administration, but noted that companies like Cockatoo Coal had been reconstructed.

"Some companies took on too much debt during the mining boom and it's now clear that reducing the business's cost base is no longer enough,” he said. 

“What we're seeing are more companies trying to fundamentally restructure their businesses, with or without formal processes.”

Iron ore, steel and mining consumables company Arrium is currently in a trading halt over the rejection of its proposed debt restructure.

Minter Ellison M&A partner Ron Forster said mining consumables and iron ore were the two sectors that were likely to see a lot of reconstruction activity.

"Boart Longyear's recapitalisation completed in 2015. Bradken is attracting interest with its share price increasing substantially since Teton Capital, a Texas-based investment fund, became a substantial shareholder in February 2016. McAleese Transport is another instance where some form of restructure appears imminent,” he said.

"While it's always difficult to pick the bottom of the market, given the significant price declines strategic buyers in the resources and mining services sectors that are willing to take a longer term view are on the look out for quality assets."