20 + 20

Celebrating the first 20 years of the Melbourne Mining Club 2001 to 2021 Inside covers: Oblique perspective of a digital terrain model of Victoria, looking NW from above Bass Strait. Behind Port Phillip and Westernport bays, the uplifted and undulating Central Victorian Goldfields extend north to the flat plains of the Murray Basin.Image courtesy of Geological Survey of Victoria. 20 + 20

Celebrating the first 20 years of the Melbourne Mining Club 2001 to 2021

1 2 “The Melbourne Mining Club is a remarkable organisation that has no Constitution or Articles of Association, no elected Board, no paid-up capital and has distributed a dividend every year. “It is run by a (volunteer) Steering Committee which for the first five years had no Chairman.”

Sir Arvi Parbo AC, 11 August 2011 (his closing remark: “I wish I could buy shares in it!”)

3 MMC 20 + 20 book The Melbourne Mining Club is operated by an honorary Foundation Members 20 + 20 – celebrating the first 20 years of Steering Committee as a joint venture between the Minerals Amira Global, ANZ, Arete Capital Partners, BASF, BHP, the Melbourne Mining Club – 2001 to 2021 Council of Australia and the AusIMM. Deepcore Drilling, E L & C Baillieu (Ord Minnett), EMR Capital, EY, GHD, IMARC, Kirkland Lake Gold, KPMG, Mitsui & Co Published in 2021 by the Melbourne Mining Club ACKNOWLEDGMENTS (Australia), MMG, Newcrest Mining, OceanaGold, Orica, Rio The Melbourne Mining Club Principal writer: Martin Summons Tinto, RSM, RTL Mining and Earthworks, Sovereign Hill, St Other writers: Graham White, Rowan Callick OBE, c/o MCA-Victoria Barbara, Weir Minerals, Worley. Chairman’s Supper: Mincore. Barry FitzGerald, Tim Duncan, Richard Morrow and Event safety: Jody Lambden (NOSIC). ABN 21 191 309 229 Corporates (various) Media distribution: Boardroom Media. Level 8, 10-16 Queen Street, Melbourne VIC 3000 Editor: Gavan Collery OAM Government Partner: The Victorian Government. Email: [email protected] Project Managers: Gavan Collery OAM and Jenny Neales Website: www.melbourneminingclub.com Designer: Casey Wong (CORE) STEERING COMMITTEE Telephone: +61 (0) 3 8614 1802 Photo enhancement: Geoff Pinney (3dEscape.com.au) Richard Morrow FAusIMM (Chairman) Printed and bound in Melbourne: White Laws Bindery Sam Street (Deputy Chair) All rights reserved. No parts of this publication may be Photography: Paul Scott (Paul Scott Photography) and Gavan Collery OAM (Founder, MMC Steering Committee), reproduced, stored in a retrieval system or transmitted Carli Adby (UK). Dr Tim Duncan, Adjunct Professor Richard Schodde, in any form by any means – electronic, mechanical, Rowan Callick OBE, Rebecca Irwin, Matt Chambers, Barry photocopying, recording or otherwise – without the written PARTNERS AND SPONSORS FitzGerald, Kristie Batten, Janenie Mohgan, Matthew permission of the publisher and copyright holder. Principal Sponsors Stevens, Simon Jemison (retired May 2021), James Sorahan Every effort has been made to ensure that this book is free (MCA), Brigid Meney (AusIMM). from error or omissions. However, the publisher, writers, MMC Secretariat and Administration: led by Jenny Neales. editors, administrators or respective employees or agents shall not accept responsibility for injury, loss or damage International Advisory Board occasioned to any person acting or refraining from action New York: Robert Kennedy, United Kingdom: Phil Beard, Hong Kong: Sally Cox, China: Peter Arkell. as a result of the material in this book, whether or not such Founding Partners injury, loss or damage is in any way due to any negligent act or omission, breach of duty or default on the part of Life Members Founding Patron Co-Patrons the publisher, writers, editors, administrators or respective Ian Howarth Sir Arvi Parbo AC Hugh Morgan AC employees or agents. Lyn Collins Leigh Clifford AO Copyright ©2021. All rights reserved. All interviews, except for the extract from Sir Arvi Parbo’s address, ISBN: 978-0-6451148-0-5 (hardback) conducted between December 2020 and May 2021. Order of Planned date of publication: August 2021 Cutting Edge Series Australia acknowledgements reflect book publication date. Printed: July 2021 The MMC acknowledges the long-term support of Swann Global, 2001-2018, as a Principal Sponsor.

Placement of venue images in this book do not necessarily imply the keynote speaker or speakers featured on that page, spoke at that venue. The purpose of the images is to acknowledge the five venues that have hosted MMC events over 20 years. In order of usage, they are: the Melbourne Town Hall, Plaza Ballroom, Zinc, the Grand Hyatt and Docklands Stadium.

View PDF of book 4 Foreword

The MMC rapidly built credibility as a unique platform for the latest information and for discussion of key issues – substantially, through two key virtues: it is run with great professionalism and competence, and by enthusiastic volunteers. Leigh Clifford AO (left) and Its Melbourne base has been crucial for its success, affirming the Hugh Morgan AC (right), major role that the city plays on the global mining stage, and co-Patrons, the Melbourne Mining Club communicating that through great media coverage of its events, spreading that message nationally and, in time, internationally. The Melbourne Mining Club started life at an extraordinary time for the global economy. Doomsayers were warning that mining – and The club developed, and has maintained, a truly global perspective. with it, continued Australian prosperity – was inexorably sliding It has hosted large-scale speaker and networking functions in downwards, with technology providing the sole path to the future. Shanghai, Beijing and Jakarta, as well as a series of MMC major events in London. Such forecasts were dashed with the bursting of the dotcom bubble in 2000 and the steady recovery of the mining sector – including It began with 200 people attending luncheon events, growing to through its smart development and adoption of ground-breaking new up to 700 at the magnificent Melbourne Town Hall, addressed by technologies. more than 100 keynote speakers. The highly-popular Cutting Edge Series, launched in 2003, highlights small- and mid-cap companies. Our industry has also become, more clearly, a leader in training and developing new skills, in sustainable development. It supports, The value of the networking that these events generate is across the supply chain, one in 10 jobs in Australia, including today incalculable. In cash terms, surplus funds of about A$900,000 employing over twice as many indigenous Australians than it did have been steered into educational programs in Victoria and when the Melbourne Mining Club began. elsewhere, especially in the Science, Technology, Engineering and Maths (STEM) disciplines. In the financial year ending mid-2020, mining directly contributed 10.4 per cent of Australia’s Gross Domestic Product and produced 60 per Such successes can be attributed in part to the club’s hands-off cent of the country’s entire exports. role with speakers. It does not presume to suggest an agenda for them, but does use the forum to display the high quality of Such great results are not achieved without hard work, brave and leadership that drives our industry. canny finance industry support, and some mis-steps along the way. Here, in this publication, we present 30 of those keynote speakers, The Melbourne Mining Club (MMC) has been there alongside to chart with their modern-day views not only on the achievements and all this – both challenges and achievements. challenges of the past 20 years, but also (intriguingly) of the next We could sense, from our own first involvements, the significance of 20 years. We are sorry that we could not find the space to invite all, the club’s role in the industry’s rise – underwritten by the enthusiastic but we are confident that these gems, representing each of the engagement of that great mining figure, founding Patron the late MMC’s past 20 years, will offer insights to stimulate your excitement – Sir Arvi Parbo AC. and discussion – about our great industry and its future.

5 Contents

Speakers (and friends) 2011 – 2021 40 2011 – Diego Hernández 44 2011 – Cynthia Carroll 46 Foreword 5 2012 – Ivan Glasenberg 48 From the Chairman 7 2012 – Nick Holland 50 Speakers (and friends) 2001 – 2010 8 2013 – Ian Smith 52 2001 – Sir Arvi Parbo AC 12 2014 – Mark Cutifani 54 2001 – Barry Cusack 14 2014 – Chuck Jeannes 56 2002 – Hugh Morgan AC 16 2015 – Alberto Calderon 58 2003 – Andrew Michelmore AO 18 2016 – David Harquail 60 2003 – Pierre Lassonde 20 2016 – Mike Henry 62 2004 – Robert Friedland 22 2016 – Graham Kerr 64 2004 – Charles “Chip” Goodyear 24 2017 – Iván Arriagada 66 2005 – Scott Hand 26 2018 – Andrew Cole 68 2006 – Don Lindsay 28 2019 – Elizabeth Gaines 70 2007 – Leigh Clifford AO 30 2020 – Peter Bradford 72 2008 – Owen Hegarty OAM 32 2021 – Sandeep Biswas 74 2009 – Andrew Forrest AO 34 Keynote Speakers – Melbourne 76 2010 – Inés Scotland 36 Keynote Speakers – Offshore 78 Depicts the city or nation where 2010 – Tom Albanese 38 Cutting Edge Series 79 MMC keynote addresses were given.

6 From the Chairman

Little did the first wave of Melbourne Mining Club members know This reach has helped establish like-minded clubs across that 20 years after the club’s first luncheon event, we would still the world. The Melbourne Mining Club has a presence and be going strong – globally recognised as a premier forum for the a level of respect across the virtual world, with our world’s resources industry leaders. representatives active in leading global mining forums while embracing the world of social media to meet our mandate of More than 200 people crammed into the Melbourne Town Hall’s providing a forum to promote and discuss the resources Supper Room to hear our first speaker, the late Sir Arvi Parbo AC, sector in general and the Australian sector in particular. deliver a keynote that is as fresh today as it was when delivered in August 2001. The goodwill towards our club often amazes our Steering Committee, made up of volunteers from senior positions Sir Arvi, the club’s founding and long-serving Patron, offered across the mining, mining services, media, financial services insights that you just don’t get anywhere other than at a and associated sectors. Founder of the Steering Committee, Melbourne Mining Club (MMC) event. As you read through this Gavan Collery OAM, says this goodwill has been there since 20th anniversary commemorative publication, there is a wealth RICHARD MORROW day one. of knowledge and considered opinion garnered from our roll call of keynote speakers, brought together especially for this book. I’d like to acknowledge the support of our founding organisations, the Australasian Institute of Mining and Every speaker who has taken to the MMC podium has left a Metallurgy (the AusIMM) and the Minerals Council of lasting impression for our audience of members and guests – and Australia. For two decades, these organisations have more widely. Some keynotes have thrown down the challenge for supported the club’s endeavours, with the MCA hosting the resources industry to lift its collective game or to consider a our Secretariat. fresh approach. All have been innovative and inventive. Finally, when you read through these pages, you can see Who can forget Nick Holland’s speech in July 2012 where he that the mining industry is anything but stuck in the past. challenged the gold sector to have a realistic look at reserves and Our contributors were asked not just to reflect on the past returns from mining gold? Nick has once again contributed in the 20 years, but to look ahead at the next two decades pages that follow. (hence, the theme: 20+20). Their insights are intriguing. Today, the Melbourne Mining Club has more than 3,000 Enjoy! members, and has links and associations with mining organisations all over the world. Global leaders come to Melbourne and to Victoria because they know their words will Richard Morrow FAusIMM reverberate throughout the industry. Chairman The Melbourne Mining Club. The club’s reach has extended to offshore events – with spectacular impact – to London, Beijing, Shanghai and Jakarta. Who will forget the wide-ranging and incisive London address from Glencore’s Ivan Glasenberg and his view in 2012 on M&As or the maiden address in London one year later from BHP’s Andrew Mackenzie?

7 8 20 | 01 – 20 | 10

9 20 | 01 – 20 | 10 From the podium

10 Across the seas

11 20 + 20

Public perceptions This long-standing stable does not guarantee success 20 | 01 and relationships with environment changed in if public opinion and public governments have always the early 1970s. The reasons policy are unfavourable. been important to the for the change should be Sustainable development minerals industry because, analysed by people more has become a key concept. after all, the minerals knowledgeable in these Companies are increasingly belong to the States and the matters than I, but it seems SIR ARVI PARBO AC publishing extensive reports companies merely obtain relevant that the emergence (Founding Patron) on their environmental, WMC a licence to produce them, of the negative attitudes was occupational health and albeit after having first not limited to Australia and safety, and community (To follow is an extract of the had the privilege of taking not limited to the minerals support activities in addition inaugural keynote address to the high financial risks in industry, but directed at to financial and operational the Melbourne Mining Club, discovering the deposits. economic development reports. One important by its Founding Patron, the generally. late Sir Arvi Parbo AC) The early relationships with lesson learned from this governments were, at times, The level of prosperity, which has been that it is essential I appreciate the compliment turbulent as witnessed by had by then been reached to be open and honest – in being invited to be the the Eureka Stockade; the first in the developed world, “transparent” in current first speaker of the new in-depth debate between was probably one of the jargon. The worst thing to Melbourne Mining Club. government and the miners reasons – it seems to be a do is to leave the impression The minerals industry, in on mining taxation. human characteristic not to that one is trying to hide or appreciate what becomes gloss over something. the past, has not been Overall, however, for the readily available and to take good at explaining itself to first 130 years of mining Let me now ruminate on things for granted. the public. It has therefore in Australia, the public what might happen in the suffered at the hands of understood and appreciated In Australia, the great Australian minerals industry those much more skilful at the benefits from mineral minerals developments in the in the future. publicity, and for various developments and 1960s were the main source Predicting the future is not reasons not friendly towards applauded these. There was of the new level of prosperity. an occupation in which you it. The activities of this club wholehearted community The industry’s very success would wish to be paid by should help to redress the support and encouragement was most likely a cause for results, and predictions of balance, and I wish you for the industry, which in the change in attitudes. the future of the minerals every success. turn led to the establishment Subsequently, the industry industry have not been great of manufacturing and recognised that the very successes. service industries. best technical performance

12 In principle, the future of the Will the Australian minerals The present production The reasons are complex the market value of Australian Australian minerals industry producers be competitive in and further growth of the and you should ask someone companies in, say, US dollar depends on the answers to world markets? industry comes largely from now active in exploration to terms, has been reduced. major deposits discovered explain the problems, but it four questions: The demand for minerals Maintaining competitiveness many years ago, and their is essentially a question of continues to grow. The is, as we all know, an ongoing Will there be a continuing extensions. Large mineral access to prospective land and population of much of the battle. Our competitors world demand for the developments have very long assurance that any discoveries developed world has reached in other countries are products? lead times from discovery, can be developed into a plateau and has started to continuously improving their let alone the beginning of profitable production. Does Australia have the decrease, but in developing productivity and efficiency, exploration to production. mineral endowment to supply countries it is still increasing In general, Australia’s minerals and we must at least match a part of this demand? rapidly. All in all, there is Australia should now be are at present competitive them. We can never relax. no doubt that there will be discovering the orebodies which in world markets. The low Will it be possible for the a growing demand for the will be the main producers 20 exchange rate of the Australian industry to explore for products of the minerals to 30 years from now. In spite dollar assists in this, although minerals and, if successful, industry. of continuing improvements in it is a double-edged sword bring the discoveries into exploration technology, this is because it also means that production? not happening.

13 20 + 20

20 | 01 The challenge for miners is to diversify their customer bases. It will be difficult to find customers to compete with China which enjoys abundant labour, cheap energy and advantages of scale.

to shareholders’ benefit, have curtailed new investment, and Clearly, the challenge in the BARRY CUSACK increased to more than three supply and demand moved into next 20 years is to avoid such Rio Tinto per cent since 2011. better balance in 2019; mine boom-and-bust cycles. Both capacity is about 24Mt and commodities have dominant In the past 20 years, there Twenty years ago, I addressed production 20Mt. Annual players on the supply and were major economic the Melbourne Mining Club, long-term demand is about 3.2 demand sides. Chile has a disruptions, including the identifying three foremost per cent and at 870Mt of mine quarter of world copper mine 2007-08 Global Financial challenges for the mining reserves (double the 2000 supply, and Australia and Brazil Crisis (GFC) that triggered industry: total) supply is secure. Mining dominate the seaborne iron a 20 per cent fall in global industry discipline post-2014 is ore trade. China dominates • to lift returns on capital and industrial production, and reflected in better prices and smelting demand for both avoid creating over-supply, a commensurate lack of returns. commodities. China will leading to productivity demand for commodities, continue to diversify its supply gains being passed on to leading to over-supply and Second, iron ore demand was sources and encourage new buyers through lower prices; price collapses. The disruption strong post-GFC and the price mine production in developing • to continue to attract the of “today” is the COVID-19 hit US$180/tonne in 2011 due projects, both for price and best talent and not be seen pandemic. Its effects are mainly to a boost in China’s security. Even for iron ore, with as “yesterday’s industry;” not yet fully evident while steel production. However, Brazil over-coming current and governments around the world new mine capacity and over- issues, there is significant new stimulate their economies production caused a price • to convince the world capacity planned in Africa. In to keep demand robust. drop to US$40/tonne in 2016 that mining is, and can be, a dominant position, China will Eventually, the piper must be although demand remained conducted sustainably. exert its power over suppliers. paid: an economic downturn strong. Then a supply How have we done 20 years on? will transpire. disruption in Brazil in 2019 The challenge for miners is Returns on investment have (due to a tailings dam collapse to diversify their customer Consider two commodities improved, with the average at the Córrego do Feijão mine), bases. It will be difficult to find vital to Australia. First, copper lifting from just covering the coupled with demand, led to customers to compete with supply outpaced demand, cost of capital to now making a price recovery to US$120/ China which enjoys abundant doubling from 2004 to 2014 returns competitive with tonne – well above the long- labour, cheap energy and with a resultant price drop. This other industries. Dividends, term average. advantages of scale. Ironically,

14 the world manufacturing Neither challenge will be met environmental issues, safety, revealed positive signs, yet It’s unattainable for mining response to over-dependence by the mining industry simply connection with indigenous trust in mining remained to be universally respected, on China is to re-focus on doing more efficiently what it and local communities, and questionable. There were but the industry must supply security and re- does now. Innovative solutions sensitivity to social issues. positives for regional and continually improve its public examine domestic or reliable are required. This relates back But it has not done enough indigenous communities, but engagement. The challenge is alternative sources. This may to attracting the best talent to combat public perceptions a perception that financial to respond rationally to critics be an opportunity. and creating a climate for that it is inadequate on these benefits were not widely without opposing populist mining to flourish. Enlightened fronts. Community opinions, felt. (This may have changed views. To exploit this, the supply leadership is required, often uninformed and during the pandemic, given line must be competitive – a focusing the available talent simplistic, are loudly expressed that the industry has been difficult undertaking in many to meet the industry’s future and inform political and other reported as underpinning markets for bulk commodities needs. Fortunately, this has decision-makers’ responses. Western Australia’s position such as iron ore where been and remains a strength in and making a substantial economies of scale are vital. In A 2017 national perception Australian mining. improvement to Australia’s many ports, efficient lighterage survey undertaken by the status.) Concerns linger may be a key issue. For copper, Finally, the industry must Commonwealth Scientific over mining’s environmental the technical challenge is to convince the world that it can & Industrial Research impacts and effects on water combat declining grades and operate sustainably. It has Organisation (CSIRO) across supply. deeper mines. improved substantially on more than 8,000 respondents

15 20 + 20

20 | 02 There have been tremendous improvements in indigenous engagement (particularly job creation) and in land management, notwithstanding some well-publicised mistakes.

Not to mention the advance Globally, the impact of all this actions. We employed trained HUGH MORGAN AC of information technology and has been overwhelmingly professionals, lots of them, to Western Mining Corporation the new opportunities of nano- beneficial. The improvements engage meaningfully with our technology. I have noted have enabled critics – and there have been Like many of my colleagues, recovery of lower-grade important advances. The monuments to these my time in the minerals mineral deposits; the advances are there for all to Some of those advances industry has been consequence is an exponential see: The Big Pit at Kalgoorlie, were new, others were not. characterised by two parallel increase in the proportion the deep underground The rehabilitation of large themes: technological advance of the earth’s crust that has operations at Olympic Dam areas around Broken Hill, and social complexity. been turned from an essential and the huge logistics exercise known as the Regeneration mineralisation into a valued The technology is easier to that are the Pilbara iron ore Project initiated by BHP’s resource. The remarkable track. From the “bog, bore and operations. Each of these is, Albert Morris in 1936 (the first urbanisation of Asia, with the fire” approach of my youth, we in its own way, a showcase restoration project of its type re-housing of perhaps a billion entered the Japanese national of technology. The dividends in the world, for example) long people from hovels to modern rebuilding revolution of the flow to all of us – yes, even pre-dates the emergence of apartments, is visible proof of 1960s; a period which laid the those on welfare. popular environmentalism. the benefits of the use of new foundations of managerial and This march of progress is mineral resources previously There have been tremendous technical excellence which still far from ended. Processing advised by world authorities improvements in indigenous guides our industry today. improvements are on the cusp as being exhausted. engagement (particularly From there, it has been of delivering the ability to job creation) and in land That is the technical revolution. spectacular progress – from extract very fine amounts of management, notwithstanding The social complexity is, well, 35-tonne haul trucks to valuable product from ores. some well-publicised mistakes. more complex. 400-tonne monsters, to the This will revolutionise the Advances yes, but the steady growth of remote and mining of minority products From the 1970s onwards, our process was complicated by automated services (with like rare earths and make industry made ever-more- the emergence of a core of parallel improvements in accessible a range of materials serious efforts to engage ideologically committed activists. safety), to advances in solids which will transform our lives. with the broader community; separation materials handling to address the social and and logistical management. environmental impacts of our

16 Their influence has been Take for example NGO of its local associates). Quite objections; a feeling that For the moment, the sheer leveraged by the dissonance activists operating in a commonly, the company just industry should be spotless technical excellence of between the global minerals developing country. They avoids all LDCs with poor white coats and not large mining – its efficiency and its industry and the broader are quite properly alert for reputations regardless of dusty haul trucks. environmental responsibility urban populace. any suggestion of corruption mineral wealth or simply quits – are carrying the day. Yes, The basic premise is that there or ESG failures – quite the venture – a PR triumph for the occasional and entirely Across the developed world, is no limit to the resources properly because any such the NGO – and the project may inexplicable glitch occurs, but mining has rarely been of the earth, given the failures, like corruption, be taken by, or pass to, some these are relative rarities in a popular, but increasingly it massive positive changes to represent a siphoning-off less scrupulous partner. continuous global program. now is “on the nose.” More technology throughout the of value, whether condoned of the population is today One has only to look at industry. If there are shortages, Perhaps, at times, some at the higher levels of the engaged in the provision of the paucity of reputable it is because they are man- forgiveness is in order. company or not. It fosters bad services than ever, so there is developed world investment made for whatever reason governance and dislocation of Much of the world still awaits a clear disconnect between in developing regions to see – not because the resources resources. the life-improving products urban consumers and the the impact. The developed don’t exist. that only mining can supply. producers of material goods, But NGOs have also found world is a much-preferred For that, there is no easy with little tolerance for any that sensitivity to corruption investment location, but it Despite the occasional industry solution. We must work untidiness in the process. is frequently greater among leaves the LDCs at the mercy error, history, I hope, will be patiently through the system, developed world shareholders of corporations from countries grateful for the industry’s That is not a complaint – it clearing each newly-raised than among developing world with the lowest ESG standards, efforts. is simply an observation. It obstacle in turn. It is tedious victims. If you want to hurt frequently perpetuating or usually manifests itself in long and inefficient, but necessary. the company, that is where even encouraging the worst delays over project approvals, you raise the alarm. Anger the practices. Personally, I think rather than refusal, but adding investors, hurt the share price. the NGOs have much to review to costs and disruption to of their objectives. I am not responses to market demands. One consequence of sure to whom dodgy partners It plays its part in encouraging shareholder response is are a benefit. concentration of the industry, that large corporations with for smaller firms cannot the highest standards have Even outside of the developing always survive this marathon become wary of developing world, however, it is still man- negotiation. It is painful, but world ventures. The damage made problems that present mostly survivable. from being linked to such the greatest challenges to allegations can be brutal, miners. These challenges are That pairing of committed regardless of who in the chain almost universally the product activists and intrinsically of command is implicated (the of hostility to the concept of hostile consumers can lead to company directly or one mining rather than to concrete some strange outcomes.

17 20 + 20

20 | 03 Decarbonisation is a technology play. Give it time, but we can’t also 2008, 2012 flick a switch – we need a robust plan. Carbon sequestration will come and London 2016 through, but it won’t be a panacea – it needs a plan.

ANDREW MICHELMORE AO WMC Resources When I joined Western It’s now across many industries three-and-a-half years with (Zinifex, MMG) Mining Corporation (WMC) – from manufacturing, to Nabalco in the Northern in the 1990s, the company farming, to construction, and Territory, engaging with the My early work in the 1970s had averaged three deaths not just mining. Yolgnu community of 13 clans was in the chemicals and annually for the preceding 17 with roughly 100 in each. To be In the past 20 years, petrochemical industries years. There was acceptance allowed in the area of Nabalco, approaches to safe mining where, historically, safety had that fatalities occurred in we needed permits to enter, have been a major change. not been a priority area of underground mining. There leave and work. I attended So, too, the industry’s attitudes focus. ICI’s Runcorn plant near had been no improvement. the regular meetings of the towards environmental Cheshire, UK, manufactured The imperative was to change Laynhapuy Homelands group matters which remain under caustic chlorine and sodium attitudes, to educate people and visited with their elders. It greater focus. It’s easy to hydroxide and in the 1960s to believe they could operate informed me; gave enormous, think you’re doing a good leaked chlorine gas across a without fatalities; no job was first-hand understanding job technically, but external local school with dire effects. so important it couldn’t be of their culture and the parties’ constant scrutiny It marked a massive step- done safely. It wasn’t just necessary communication and and calls to “do better” have change in company attitudes, WMC, but the whole industry. engagement. helped mining to come a long with diligence into how to We grouped together to way from its earlier practices Most important was to listen prevent recurrences and change attitudes and instil – from tailings dam collapses to the elders’ discussions to fostering belief that serious a belief that people could and limited mine rehabilitation, learn what they wanted and accidents and fatalities were work safely, and fatalities to acid-leaching rock dumps. needed – housing, schooling, preventable. could be eliminated. Attitudes water, funeral ceremonies, Changing attitudes towards I entered mining in the 1980s towards fostering safe roads, vehicles and airstrips indigenous communities have and found that fatalities working environments have for supplies and people improved markedly. They’re remained common-place. totally changed, but the issue movements. In the past, we still important. I worked for remains not to be complacent. told them what we thought Changing people around in they needed, rather than their jobs is a big part of this, removing the rote workload.

18 listening to their needs and construction of mines and The ongoing problem is Carbon sequestration will But no Australian government priorities. We realised we were infrastructure to the benefit of that there’s often too much come through, but it won’t is putting together the proper doing things the wrong way, indigenous communities. misinformation and use of be a panacea – it needs a plan to get there. and while trying to be helpful disinformation. plan. Mining is here, but we We’ve come a long way: For mining, we can’t cherry we were in fact appearing need collaboration to get to Aboriginal leader Professor In defined areas, mining pick. We have to work as an to be condescending and there – to become low-carbon Marcia Langton has delivered competes for people, industry for the long term superior. emitting, sustainable, reliable lectures at the University of technology and mineral on these issues while we and affordable producers. This engagement enabled us Melbourne about how 1960s resources. Where the industry compete in finding orebodies, to set up Yirrkala Business miners were the indigenous doesn’t compete, it must When the National Energy extracting the metals and Enterprises and provide peoples’ biggest enemies, work together on ESG issues Guarantee (NEG) was managing our workforces. training for indigenous people and how 1990s miners were to become a leader in safety, abandoned, we re-entered They’re the competitive to tender for jobs on their their biggest supporters environment and community cherry-picking territory. It elements. Surrounding this is terms, using our facilities and partners – it was mining relations. Mining is under didn’t mean shut down all the issue of driving confidence – cutting trees, driving companies that assisted pressure worldwide; the coal-fired power stations now, in the communities where we bulldozers and trucks; for the with education, training and issues are so big we need a but determine their phase-out operate. We’re working on women, collecting seeds for employment, and funding to united approach to share our over time to provide reliable, doing the right things, we’re propagation, and ultimately improve standards of living – learnings and continue to affordable and sustainable trying to do them well, and all for the men mining around not governments. That’s why improve and communicate. energy. It spawned “experts” for the benefit of society. But and protecting their sacred it’s a shock – when it takes calls for gas-fired power, we can always do better. The starting point is: “is sites (men’s business). It was a tens of years to build up trust subsidised renewables and there a demand for what we win-win. and safety – to witness a potential use of nuclear power. produce?” Clearly, there is. recent mining event blowing it It was formative. It guided my Why else does Tesla look all away in one instance. later work in Australia, Laos, at buying a lithium plant? Peru, the Congo and even Communication remains You can’t replace many of Russia – to listen and talk with forefront. Alcoa collected data the valuable metals now in the local people to understand for 40-plus years and one key widespread, essential use. their needs, their perspectives. finding in its annual surveys Hence, the importance of In Australia in the 1990s, the in the 1990s showed that – clever use of new technologies relationship working with despite improvements in its when so many companies are indigenous communities (in communication levels decade massive energy sinks. which CRA was foremost) on decade – people wanted Decarbonisation is a improved significantly, and greater communication. That’s technology play. Give it time, helped the development of a microcosm of society; people but we can’t flick a switch sustainable design and want greater information. – we need a robust plan.

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I believe that once realisation grows of how far we have departed 20 | 03 from traditional norms of investment and return, the switch to gold will become a flood.

PIERRE LASSONDE Newmont Mining The formula is the gold price But is it? Could the stresses on get any sort of return. The (and Founder, Franco-Nevada) per ounce compared to the the global financial system be term “secure investment” has Dow Jones Industrial Average. approaching the equivalent of become an oxymoron; bonds, those that drove gold to parity realistically, offer no return. The Forecasting the gold price The two have come into with the Dow in 1933? I am continuous creation of more can be a near obsession in our alignment just twice in the past going to postulate that they are. (ever more) debt – debt which industry. The complexity of 110 years – both at times when offers close to zero return and estimating supply and demand, the global financial system was Currently, there is around little prospect of repayment – and calculating the investment in extreme stress. The first was US$18 trillion of bonds simply devalues cash. appeal of various asset classes, at the height (or more correctly washing around the system creates endless permutations trough) of the great Depression – almost entirely created by I do not hold out much hope for debate – never more so in 1933 when the Dow slumped governments and bearing for politicians to retrieve than in times like the present to a measly 36 and gold was interest rates below one the situation. Their instinct, when the world is in uncharted US$35 and ounce. per cent; bonds that, to the the instinct of politicians waters regarding government- investor, are virtually worthless. everywhere, is always to Again in 1980, the Dow and created credit. simply kick the can along gold achieved parity; the Dow That has some serious the road a little further; to Rather than try to calculate at around 800 and gold at consequences. For endowment move the problem into the the impact of these individual approximately US$800 per funds, which have to manage next electoral cycle. I do changes, I have derived a ounce. Again, at a time of their operations on this negligible not foresee any immediate simple historical formula which currency turmoil. return, or people living off prospect that excess liquidity appears to have asserted itself capital, it is a grim outlook. periodically in times of crisis. The two have drifted a long will go away. way apart since then. The gap Not only are bonds earning With a new crisis looming, I In that scenario gold, secured is now a staggering multiple close to zero return, but the await the correction that will by its scarcity, gains value. of 15 – gold at near US$2,000 spectre of inflation hovers, bring it into play again. Cash, with its near-zero returns an ounce and the soaring Dow constantly threatening to and vulnerability to inflation, testing 30,000. Parity seems so devalue the holding. Investors loses. far off as to be almost fanciful. are tempted – almost forced – to look to riskier options to

20 Already around half of all gold Not that gold is currently in purchases are for investment any crisis. The industry is in – and the pressures are surely good shape with most gold growing for that proportion producers ticking along nicely. to rise. I believe that once If there is any long-term realisation grows of how far we shadow over the industry, have departed from traditional it is the declining success norms of investment and of exploration. The pace of return, the switch to gold will discovery has been slowing become a flood. for decades now and if it is not reversed, we will eventually Gold is in effect insurance see a production shortfall. against the devaluation of cash – and when fire is licking A sharp rise in the price of gold at your walls you will pay will, of course, see an increase generously for insurance. You in exploration, although will pay a premium for the the long-term nature of the security of gold. Perhaps a discovery slowdown suggests handsome premium. scientific and technical breakthroughs are also needed. Don’t dismiss the probability Perhaps they will come. (implausible as it may now seem) that we will see Dow- In the meantime, a return to gold parity again. Whether something more like Dow-gold that is from a fall in the Dow parity seems the brightest or a rise in gold – or perhaps hope. History is on our side. some of each – I cannot say with certainty, but my money is on gold.

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Expect carbon pricing (whether taxes or cap-and-trade schemes) 20 | 04 to become not only a tool for abatement, but also a prescription for also 2011 levelling the playing field on trade.

may resonate for far longer limit emissions. To this point mass of gasoline, although it than many anticipate. A in time, this is one of the few can cycle that charge more ROBERT FRIEDLAND great generational shift is policy initiatives that has than 1,000 times and the Ivanhoe Mines under way. Governments are galvanised almost universal conversion efficiency is much stimulating their economies support from governments higher in an electric motor It is a tragedy of the human and money has never been around the world. We can than in a conventional internal- condition that as you get cheaper. Humanity faces expect that one result will be combustion engine. What does older, you tend to learn more threats and challenges that a vast mobilisation of capital lower energy density imply and more about less and less. require commitments to a dedicated to the “greening” of for mining? It means that for Famed Italian Renaissance level of inter-governmental our planet. the same amount of energy artist Michelangelo worked coordination that we have that is stored, we will need to It is already evident that the on his Rondanini Pietà marble never before achieved. produce far more of the metals world is going electric – and statue for more than a decade, required in the manufacturing Safeguarding our environment, it will be doing it renewably. until just days before his death of these batteries: copper, and its ability to sustain the Cars and trucks are just in 1564 – leaving his third Pietà nickel, cobalt and lithium. civilisation we have built, the beginning. We should unfinished. Before he died, he perhaps will prove to be the expect existing legacy power- People have yet to fully said he was just beginning to defining challenge for the next grid infrastructures to be appreciate the implications learn how to carve marble. few decades. Geological time overhauled in coming decades that this mega-change I’ve been 50 years in mining. shows us that our environment to accommodate vast solar holds for mining. We are It’s one of the most important is always changing – including and wind electricity generation entering an era that I call ‘The of all human activities because our climate – and that the systems. It will require massive Revenge of the Miners.” Just it is a pre-condition to outcomes are never as investments in energy-storage imagine the implications as modernity that will continue quantifiable and predictable as technologies, such as batteries. the world moves to reduce, to influence lives everywhere. we may imagine and desire. and ultimately virtually stop, It’s worth noting that this is But we are entering an era burning oil and coal – and That said, based on the best the first energy transition that none of us can really starts placing an astronomical science we have, the potential undertaken by humanity that understand, let alone forecast. burden on a handful of scale of the impacts of climate will result in a regression in elements in the periodic table. The COVID-19 pandemic change require us to apply energy density. A Tesla vehicle Those metals will become is dramatically changing the precautionary principle, battery stores far less energy incredibly valuable, as will our world. Its implications and to do what we can to than an equivalent volume or

22 the strategic imperative to procurement paradigm for • processing will be On inflation, it has been the Age of Enlightenment of control them. History, for components simply doesn’t required to treat oxidised so long since we have the 17th and 18th centuries, example, shows that Ford work when you need to secure ores, something we’re experienced it that people the separation of Money Motor Company was not the the volumes of metal that demonstrating at the have forgotten how corrosive and State could be equally largest beneficiary of the this transition requires. If the Sunrise Battery Metals its effects can be on wealth. momentous. This remains past century’s automotive automotive industry is serious Complex in central New an unpopular view for many One of the uncertainties we revolution. It was Standard Oil. about building its supply chains South Wales. Mining must today – especially those all face is the impact that responsibly and sustainably – adapt. within the gold industry I also expect markets to new technology will have on not simply pushing the carbon – who widely view digital become far more efficient • Expect government policies fiat currencies. With inflation impact from the tailpipe to the currency as nothing more and nuanced in the way to be highly proactive and repressive debt levels, shovel – it will need to work than a hollow promise backed commodities are priced. on critical and strategic we cannot presume that very closely with the mining by zero collateral and built Certification and auditing will minerals. Whether this is to government-backed money will industry. There will be clear for speculation. But then become standard practice, support domestic industry be the preferred medium of winners and losers. The winners again, show me any financial as will emissions accounting. or to further a country’s exchange. We can already see will be the fastest to adapt. The innovation that has not started Block-chain technologies defence or national security the disaggregation of financial losers? Well, it is existential. this way. could enable far greater interests, the focus will services, in places such as pricing transparency and I foresee some very important be on building reliable China and Africa, away from Love or hate disruption, differentiation than exists knock-on effects from this and safe supply chains. the licensed banking system there is no hiding, but we today. Expect carbon pricing energy revolution. Countries such as Australia and towards new, tech-driven can anticipate and adapt. (whether taxes or cap-and- and Canada, hosting large service platforms. Remember, The seismic shifts we are • If we want to capture trade schemes) to become not resources of many of it has taken humanity almost seeing – driven by exponential the true benefits of only a tool for abatement, but these key minerals, will be 10,000 years to mine 200,000 technologies and the need decarbonisation, there is also a prescription for levelling obvious beneficiaries. tonnes of gold worth, today, to address the planet’s an imperative for mining the playing field on trade. • The Balkanisation1 of raw- US$11 trillion. In less than a environmental problems – will to reduce its energy Everything will be priced in material supply chains decade, the value of all traded soon be reverberating all the consumption, effectively relation to emitted gases that to service China, North crypto-currency has reached way up the supply chain. In the manage waste, and recycle. contribute to climate change. America and Europe will almost US$2.5 trillion. mining sector, we can already Comminution technologies be highly inflationary. It feel these tremors. When the The automotive industry has are fundamental in Just as the world was will require duplication music stops the only question been slow to recognise that it reducing energy usage. profoundly and irreversibly of infrastructure, take is – how many chairs are left? is already in a game of musical New thinking changed by the separation of time to build and require chairs. The old “just-in-time” around hydromet Church and State during development of entirely new resources to support.

1. Balkanisation: a term for fragmentation of a larger region or state into smaller regions or states.

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Confidence in the industry is still being rebuilt as society, 20 | 04 shareholders, boards and management teams redefine the role the mining industry plays in the global landscape.

So, many people were saying: resources arena. Previously, the trajectory of mineral “do we really need mining?” China would enter the market consumption we’d seen in the CHARLES “CHIP” GOODYEAR There were all kinds of for two or three years then US, western Europe, Japan and BHP-Billiton questions, not only about what disappear – so how much South Korea as their middle Mining and resources have we did and how we did it, but capacity do you build when classes emerged following been under pressure for what was the need for doing the longevity of their presence World War II? it? is so uncertain? several decades – with I spoke to this at an MMC occasional periods of sunshine Towards the end of the 1990s, In the early 2000s, it became function in 2004. I said: “you – and for the most part the the pressure on the industry apparent that not only was may not know or think that 1980s and 1990s were tough and its role in the economy China’s presence real, it was the world is changing in terms times in the business, given and society presented major sustaining. It had been visible of resources, but if it is, what slow global economic growth. challenges. At that point, the before, but with uncertainty does that look like in terms of People questioned the need industry said: unless we do about its market longevity. demand for the next 30 to for mining. There’s always something about our role in What was telling was seeing 50 years?” society and how we function, all commodity prices rising been a disconnect between It was a turning point – the we’re going to lose our licence simultaneously – here was people living middle-class first time a mining executive to operate. a major economy growing or better lifestyles and the had openly presented such rapidly and driving demand perception of the resources It was Bob Wilson at Rio an optimistic possibility growth for most major industry. People love modern Tinto (co-founder of the after decades of lack-lustre commodities. conveniences, but disconnect International Council on resources demand. I didn’t this from the activity of Mining & Metals – ICMM) who In the first few years of the say it would happen, but we actually developing and did an amazing job aiding 2000s, the issue of the BRICs need to think about if it does producing resources, and the industry’s repositioning (Brazil, Russia, India and happen. creating products they to think about its role in, and China) emerged and we began The numbers were such that recognise. relationship to, society. At thinking about our business we could never meet the the same time, China started differently – what if China and demand that China and India showing up on the radar, and India and other developing moving into the middle-class there was great scepticism countries moved into the would bring. When I joined about its role in the global middle-class and followed

24 BHP, its market valuation was In the first nine months of Given our operating and US$12 billion. When I left in 2003, it became clear that financial successes, the 2008, it was US$240 billion. China was consistently challenge was how to Mining, previously an after- entering the market and rationally allocate the funds thought in consumer and creating a whole new demand we generated. Should we financial markets, in a short push across the commodity invest it back into the business period became recognised spectrum. We now had or return it to shareholders? as a critical industry across to focus on the growing BHP was highly disciplined the world – and a great needs of our customers, the and did both. The industry investment. governments who controlled had to assess – having earned access to resources, the the confidence of investors, At my first BHP news communities adjacent to our governments and communities conference, a reporter operations and our overall – how to put money to work asked why I’d joined an old, global impact. It created the in reasonable ways, and how forgotten, has-been industry need for significant changes in to keep investors happy by instead of a computer or the company’s management not wasting capital. It worked internet business. I said: structure. We also needed to well until 2008-09 when the “without what we do, none of attract bright young people to industry became sloppy in the other things happen. You “yesterday’s business.” putting money to work. This need us. We are across every triggered a loss of shareholder part of the modern economy.” We focused on our role in confidence in boards and serving our customers and There’s no case in the world’s boards’ lack of confidence in assisting communities adjacent history where an economy management teams. Hard- to our operations by creating moved from subsistence to earned respect from the jobs, developing infrastructure, for modern life, but do so A key to the future will be middle-class without natural financial community eroded. and bringing education and in an increasing complex increased communication resources. General Electric’s This created a whole set of health care to the community. environment. Confidence and transparency that will slogan was: “we bring good challenges that are still being It attracted young people who in the industry is still better inform all parties in things to life” – that’s what we worked through today. appreciated that we based being rebuilt as society, this complex discussion. We do in mining (they just stole our business on a strong set Casting forward, now is as shareholders, boards and all want the world to be a the idea!) of values, and that we made a complex a time as I’ve ever management teams redefine better place for our children. difference to our communities seen. The industry still must the role the mining industry With this goal and willingness and our customers. identify and produce the plays in the global landscape. to work together with materials necessary shared understanding and a constructive approach, we can get there.

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the SEC. I had spent two years the mining industry overall Ontario mining complex, 20 | 05 in President John F Kennedy’s was challenged by higher but it was not to be as other Peace Corps in the 1960s in energy prices; and mining companies – Xstrata, the hinterlands of Ethiopia. • the breakdown of the USSR Teck, Phelps Dodge and Vale I wanted an international in 1991-92, and metals – joined the fray and Inco was career and did I ever get it flooded into the West. For bought by Brazilian-based with my 34 years with Inco! nickel, it was like a 25% Vale for US$19 billion. Inco was trading in the $20s before the You might wonder how a increase in supply in less SCOTT HAND takeover fight began – it sold lawyer came to be the CEO of than a year. At Inco, we Inco for $84 a share. Inco. I said that perhaps I was struggled mightily, but Congratulations to the such a lousy lawyer, Inco had survived. Xstrata then bought Melbourne Mining Club on its to find something else for me But then China opened up and Falconbridge, Rio bought 20th anniversary. I remember, to do. So a lot of “on the job” their leaders decided to build Alcan, Freeport bought Phelps well, speaking at the club training at Inco’s mines and a major economy, and we in Dodge and then Glencore in 2005. plants around the world, and the mining business began to bought Xstrata. negotiating deals in places see China and other countries As I look back, 2005 turned Then came yet another crisis like Indonesia, Labrador and in Asia as the “promised land” out to be the beginning of in 2007 – the Global Financial New Caledonia, to name a whether it was iron ore, coal, a major restructuring of the Crisis – and it soon looked few, allowed me to make some nickel, copper – you name it. mining industry, particularly like the takeovers were made meaningful contributions to in Canada, where I am living Things looked pretty good at the top of the market. Inco. today. in 2005, but by 2008, many Shareholders rebelled and the When I look back at my years mid-sized mining companies majors went through some I joined Inco way back in 1973. in the industry, there were very – WMC, Inco, Falconbridge, tough times. In those days, Inco was the good times followed by some Alcan, Phelps Dodge, Xstrata dominant nickel producer In Canada, there were very challenging times. And it – disappeared in perhaps the in the world, but with the complaints about the was not just business cycles, biggest takeover wave in the increased importance of “hollowing out” of the mining but some important events history of our industry. the LME and the entry of industry with the Canadian which hit us hard. To name a new producers, Inco had to It started with BHP’s Government taking no action couple: compete just like all others in acquisition of WMC in 2005, to stop the takeovers. True, but the mining industry. • the oil crisis of 1976, when topping a bid for WMC by Inco shareholders, along with OPEC decided to hike the Xstrata. shareholders at Falconbridge I was a New York lawyer oil prices fourfold. It killed and Alcan, laughed all the way before joining Inco, but I had In 2005, my company agreed a nickel project we were to the bank. little interest spending my to buy Falconbridge to building in Guatemala and career filing documents with consolidate the Sudbury,

26 The result – a consolidation Indonesia is an interesting Aboriginal caves in Australia As I often said, you needed of the industry with the example of a country and the recent major oil spill a stainless steel stomach majors – Rio Tinto, BHP, Anglo becoming a major nickel in Northern Siberia – but we’re (hopefully with a lot of nickel) American, Vale and Glencore. producer – on the way to making good progress. to survive, but survive we did. And, of course in gold, Barrick being the largest country And we saw prosperity too. For me, life after Inco has and Newmont. source of nickel production kept me in the industry, but in My best to another 20 years in the world, requiring further The industry has moved on – a different way. Rather than plus for the Melbourne Mining metals processing in the China demand has continued retire to a big house in a warm Club! country and taking control to be strong. Indeed, in spite place to play golf, I went into of existing nickel producers – of the worldwide COVID crisis, the mining venture business, resource nationalism. mineral exports to China have fortunately with more held up reasonably well and When I spoke to the Melbourne successes than failures. I’m metals prices have recovered. Mining Club in 2005, I stressed involved in a growing copper And, of course, gold has hit the importance of being a mine in Morocco. At Inco, records. good neighbour. I think I when I was CEO, we had some learned from my Peace Corps 11,000 employees. My copper As we look to the future, new experience to be sensitive to mine in Morocco has 100. Many sources of demand are arriving the needs and concerns of the challenges to be sure, but fun - most notably with electric local communities. It was key and rewarding. vehicles (EVs) which will use to Inco’s success at Voisey’s substantial amounts of nickel, I’m fortunate to still have a Bay in Labrador. As CEO of cobalt and other materials (in continuing connection with Inco, I listened first-hand (no the battery) and copper (in the Australia with my board pun intended) to the concerns electric motor system). service at Karora Resources of the Inuit and Innu people in and its growing gold mining And medium-sized companies Labrador. operations near Kalgoorlie in – such as HudBay, Lundin, Today, we talk of the WA. Karora attracted big press Nexa, Capstone – continue importance of ESG – in 2018 with its much-heralded to grow. Entrepreneurs environmental, social and Father’s Day gold discovery. like Andrew Forrest AO corporate governance. Not and Robert Friedland have My time in the mining industry just because it is the right become important players has been great and I’ve thing to do, but because our in the industry. And, of enjoyed meeting and getting investors are insisting on it. course, Chinese Government to know people all around the We have a way to go – witness companies have been all over world. Were there challenges the dam tailings failures in Africa and South America. to overcome? Yes indeed. Brazil, the destruction of

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For greater social acceptance, Ultimately, there was a 20 | 06 downturn from 2012 to 2016, mining must give back more to communities with copper prices alone declining for five consecutive in which it operates. years. There had been growth for growth’s sake, overlooking and won’t change. And the accelerated and institutions shareholder returns. CEOs DON LINDSAY broad interconnections, became trillion-dollar entities. perceived that to be successful Teck Resources collaborations and friendships Investors needed bigger they had to show growth, (formerly Teck Cominco) of like-minded mining people positions. They needed liquidity and at any cost. The goliaths globally – from Cape Town in those public companies, competed on tonnes produced In 2005, I addressed a group to Miami to Vancouver and so the companies needed to instead of dollars, and the of geologists in Townsville Melbourne – will remain get bigger – for the size of broader industry paid the on the theme of mining as important. investment required plus the price for it. It’s now better “A Licence to Dream.” That size of the investment vehicles. Looking back 20 years, the disciplined. The open question sentiment hasn’t, and won’t, That five-year phase (2003- industry consolidation and for the next 20 years is: will change. All miners dream 08) really set up a series of “value stretch” that occurred value over volume prevail? about the next exploration behaviours for the balance of across 2003-08 remain a hole and what it might reveal. the following years. As for the future? Mining has dominant element in how always been innovative. In There are two types of today’s industry operates. It became difficult for the past two decades, new geologists: good ones work Combined, it was a notable companies to grow because technologies really started hard for long hours, are event in the industry’s they were so big that to do to ramp up and the next observant, solid with detail, structure, ending up with five anything meaningful they had 20 years will be the golden and highly analytical. But great 1 goliaths at the top in “mineral to bet on even bigger projects. age of technology: big data geologists are passionate wars” – the rest a step-change They allocated capital too analytics, digitisation, real- about their projects. They below. It was neither a good quickly. It caused over-supply time sensor monitoring and jump up and down and leave thing nor a bad thing, but a and led to the industry’s automation. Teck has hired their footprints on my desk. necessary thing. poor reputation as stewards 180 digital engineers from The “licence to dream” is of capital. While brownfield places like Google, Microsoft pervasive. It drives us and It provided for strengthened extensions were easier to and MIT. They live and work draws people to the industry. balance sheets for companies execute, elsewhere there were in downtown Vancouver, but When we’re old and looking to be able to undertake big project execution “disasters” travel the world (when they back, we won’t regret this. It’s projects and align with the that scared investors away. can) – from Alaska to Chile characteristic of the industry technology-driven investment world as asset gathering

1. Anglo American, BHP, Rio Tinto, Vale and Xstrata.

28 to Beijing – to make a huge communities are vital. Teck geophysical techniques and difference in how our business has more than 80 agreements aeromagnetics. There won’t be runs. with indigenous peoples from big company consolidations Alaska to Chile. At Teck’s Red but, rather, selective There will be fewer people Dog zinc mine in Alaska, the investments and go-aheads to located at mine sites and more workforce comprises 55 per develop mines. highly-skilled technologists cent local indigenous peoples. operating remotely. At This is the road to increased Teck’s US$5 billion QB2 In the coming 20 years, new- production, not large-scale copper project in Chile, 32 generation miners will start mergers. autonomous trucks will be from a better place. The rise Twenty years on, China will controlled from Santiago, of NGOs, full disclosure and likely be the major global hundreds of kilometres from active ESG practices, coupled power. It’s committed to the mine site and 10,500 with institutional investor climate change and will kilometres from Vancouver. pressure, will ensure this. drive the next iteration of These kinds of developments Mining’s demographics will carbon capture. Minerals attract people to mining. For change to favour younger and commodity demand will new university grads, it’s now people, and progress already increasingly come from India, a cool industry. made with gender parity will Vietnam and the emerging accelerate; the whole cultural For greater social acceptance, markets. The world will need dynamic will change to the mining must give back more more tonnes of metals, and point where this is the norm to communities in which mining will need alternative and a non-issue. it operates. Two decades energy-generation sources to ago, the industry was under Post-GFC, exploration efforts produce them. pressure to reduce its diminished and have since Mining is vital to the low- footprint. Mining practices recovered. But grades are carbon and high-tech have advanced, the industry declining and there are few economy – even the “cloud” is now proactive. There’s big exploration finds – all the is made of metals, particularly an improved approach to easy stuff has been found. copper. Remember, everything biodiversity, and to tabling Technology has improved we use in our lives comes from mine closure timelines enormously and rapidly, and one of only two sources: if you and rehabilitation before miners have found resources can’t grow it, you have to seeking permits to proceed. that are “out-of-sight” given mine it. Interactions with indigenous advances in seismic surveying,

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. . . we must be innovative, open to new ways and allowed to be 20 | 07 lightning quick when we see the opportunities. . . also 2002, 2004

Of course, mining is an at Broken Hill epitomised The Japanese clearly thought extractive industry, but it’s this. But that all changed with they were too dependent on LEIGH CLIFFORD AO always so much more. The Australia’s Olympic Dam, us. After the strikes in the Rio Tinto key to it has always been the a blind discovery guided Pilbara in the 1970s, they industry’s ability to bring new by geological theory and encouraged the Brazilian iron In mining, as in other ideas and technology to bear. knowhow. ore industry and Carajás was businesses, every generation In the 1970s in Broken Hill, we constructed. The Japanese For a time, we thought in will think they face unique still had hand-held rock drills steel mills responded to Australia that our great challenges. So it’s worth and the occasional square set industrial problems in our deposits were already found. pointing out, for instance, that timber stope. Bowen Basin and Hunter Valley The tremendous resources we one of the great environmental mines by financing some very At the same time, over the located in the 1950s and 1960s contributions made by average coking coal in Canada. other side of the continent would never be repeated. the Australian industry Over-supply reduced coal in the Pilbara, Hamersley People thought the same was undertaken by Zinc prices – to Australia’s cost. Corporation in Broken Hill in Iron pushed technology to about Victoria’s goldfields the 1930s. They committed to its limit with the heavy-haul for over a century. Yet all China will do what it can re-vegetating vast swathes of railroad over hundreds of around the country, we are to diversify away from the surrounding country which kilometres. Our predecessors seeing new gold discoveries dependence on Australian had been denuded of trees to would be staggered at the role – often encompassing new iron ore and coking coal. The feed the mines and smelters in technology is now playing; technology, new thinking and fact is that capital is flexible. the 50 years before. remote-controlled trucks, top environmental standards. Companies will go anywhere trains and drills in open cuts where there is a commercial Although our markets are This was a pioneering and remote-controlled and opportunity. But there are truly global, we often worry environmental and community even automated loaders huge markets for competitive about our dependence on a relations program – as good as underground, to name a few. suppliers, and we’ll find particular market. Are we too anything in any industry for the them in the industrialising Since time immemorial, dependent now on China, just time – and it marked the birth of economies of South-East and mineral exploration has been like we were dependent on the a genuinely socially responsible Southern Asia – just like we about locating outcrops or Japanese steel mills and power industry in Australia. found them in South Korea signs of them. Charles Rasp utilities in the 1970s? and Taiwan.

30 Our industry has demonstrated Mackay – and the financial extraordinary resilience and opportunities that sprang from adaptability. We’ve always had them. Mining opened regions a problem explaining what we and underpinned Australia’s do and how significant we are balance of trade. This is still to the nation. Despite this, we the case, and even more so in must keep talking about our recent decades. businesses, the jobs we create Now, the story is the and what we contribute to the electrification and nation. decarbonisation of the world. Remember, most Australians Australia has the metals have never seen a mine. needed within its reach: We’ve overcome the copper, lithium, nickel, rare challenges we experience earths. The next generation because we have continued can make a difference with to attract talented people these and other critical inputs who see that our industry – and they’ll have great careers can provide them with great in the process. careers. We’ve also been able As always for Australia, it’s to promise that in progressing an oft-unnerving challenge these careers, they can make a to keep it all in balance. Have difference. world class regulation by all Some time back, “making means – our industry needs a difference” was all about it because we need the playing a role in national community legitimacy that development. It started goes with it. But we must be with the copper found in innovative, open to new ways Moonta (South Australia) and allowed to be lightning and coal in New South quick when we see the Wales. Mining made great opportunities which are always towns and cities: Kalgoorlie, there. It’s a great time for our Broken Hill, Ballarat, Bendigo, industry. We are making a Rockhampton, Mt Isa, difference.

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Given the likely demand in world economic forecast, a tightening 20 | 08 of mineral supply looks inevitable. also 2004, 2021 industrialisation of Japan It is not hard to foresee a time So, we can expect some upturn and South Korea, but then when four of the world’s five in discoveries, but sufficient? morphing into the apparently biggest economies (including OWEN HEGARTY OAM I do not under-rate the insatiable appetite from China. Japan) are in Asia. Most will be Oxiana capacity of our industry It has long been expected net importers of metals. (EMR Capital, 29Metals) leaders to rise to the challenge that Chinese demand would Exploding demand across so – we have some really great begin to moderate, but The coming years promise many commodities and so leaders and the pool is recent forecasts from the to be among the most many continents is probably growing – but the task is Middle Kingdom call that demanding in the long history unparalleled. Meeting new formidable. into question: latest official of the minerals industry – demand on that scale at the forecasts suggest China’s Much the same can be said and quite possibly, the most same time as meeting a near- economy will double in the about development, although rewarding. doubling of Chinese demand next 15 years. here the challenges multiply. seems likely to deplete even Demand is likely to be strong. The direct physical challenges Supplying that prodigious the world’s great deposits. The challenge will be our (greater depth, lower grades, need would seem a challenge capacity to supply. The pipeline of world-class greater ore complexity) are in itself, but it is going to Events are aligning that will discoveries does not currently generally being met, albeit at be exacerbated by parallel see unprecedented demand seem adequate to meet the a cost. demand from India (and for an extraordinary array of shortfall. Bangladesh, Pakistan and the Automation, ever-expanding minerals – traditional materials whole Indian sub-continent) I say “currently,” because scale (remember when we like steel and copper, new-wave and from Indonesia and South- discovery is historically closely thought 30-tonne dump materials to create the batteries East Asia as well as from connected (albeit lagged) to trucks were giants?), nano- to power electric vehicles and Central Asia (inspired by the exploration, and the mining technology and improved more obscure products like rare multi-trillion dollar Belt and behemoths on whom large- data handling are all playing earths for uses that are only Road initiative). Plus Africa’s scale development will largely a part. You have only to look now being discovered. exploding populations. depend are financially strong at the handling improvements Demand for traditional and well placed to accelerate in the Pilbara to get a sense India alone is expected to minerals like iron and copper their efforts. Many have, in of what is possible – now, let become the world’s third has been high for decades, recent years, strengthened alone in the future. Technology biggest economy by 2050 and initially sparked by the their ties with promising is a great source of comfort. Indonesia is climbing the ranks. exploration juniors. The frightening scale of future volumes should not daunt us.

32 But the human challenges a century, has delivered a to produce a staggering and governance principles, Given the likely demand continue to grow. program to produce more four million further ounces – policies and performance. inherent in world economic copper – for many more equivalent to 125 years of past This is manifesting itself in forecasts, a tightening For those of us in the industry, years. That will almost production – over the next much-improved relations of mineral supply looks it is tempting to bridle against certainly be boosted by 15 years. An historic relic is between mining companies, inevitable. Technology can the unrelenting growth of greenfields discoveries, but now one of the most exciting governments and host help bridge the gap, but the regulation, but in truth a large the core program is based projects in Australia, set to communities. sheer volumes of metals part of it is inevitable. More on systematic assessment become Queensland’s biggest required seem sure to test the and more humans inhabit Our obligations are not of historic information. gold mine. capacity of the exploration the planet and they consume simply defined by the royalty Painstaking improvements and development pipeline. more and more minerals. The These examples are by no agreements struck with central in understanding the nature potential for conflict grows means unique. There are or provincial governments; I helped popularise the phrase and structure of deposits are constantly (and hence so does many examples of modern agreements which do not “stronger for longer” 25 years reaping huge benefits. further regulation). I do not technologies boosting the always translate into direct ago to describe an Asia-driven foresee a great change in that Similarly, Golden Grove in reserves of historic mines – benefits for local populations. world economy. We could in the near future. WA, a site already worked for enough give hope that the then barely have foreseen that Modern approaches, which around 30 years, has delivered prodigious output needed to China’s growth would continue Notwithstanding all those see ESG measures as more resource and production plans meet that expected demand at the same hectic pace challenges, recent history a partnership with the local that could take it out another may yet be met, at least in the beyond the year 2040, or that gives us one big cause community, are building 30 years. medium term. India, Indonesia and the rest for hope: incremental stronger bonds. These of South-East and Central Asia improvements in mining Most spectacular of all is It is easy to forget how steady can include such simple would join the dash. technology and knowledge. Ravenswood Gold, south of incremental improvements can measures as policies that Townsville, which was already quickly equate to step-change ensure everything possible is Neither the Global Financial These are already delivering a boom town in 1895 when progress – whether that be in sourced locally. This spreads Crisis nor COVID seem to have spectacular benefits. Banjo Patterson was penning resources volumes, in mining, the benefits throughout seriously slowed progress. To take examples from our a ditty about a drowned in processing practices, in the town and helps build it A global minerals shortage own EMR camp in Australia, swagman and so immortalising energy efficiency or in capital into a regional supply and now looks a very real two established mines have the phrase Waltzing Matilda. and labour productivity administrative centre – with possibility – or opportunity. recently made sizeable Over those 125 years, it has generally. the additional benefit of additions to reserves without produced four million ounces providing a cushion against the Another area of improvement extensive greenfields of gold. It was long thought day mining begins to decline. which bodes well for exploration. Capricorn Copper, to be past its glory days, ESG can be more than a legal the future has been the a site in the Mt Isa copper but rigorous reassessment, obligation – a genuine bridge industry’s embrace of ESG belt which has been mined using modern understanding, to long term sustainability. – environmental, social sporadically for more than has resulted in a program That is the ultimate goal.

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Mining is – and will continue to be – 20 | 09 a major employer, but in different ways.

that younger generations the country you’ve mined to its companies being judged more can look to and say: “I’d like former state or better (it might on their actions, not words. to be like them.” We don’t be different, but not worse) That said, humans will always have that now. If they knew right from the outset. make better decisions than ANDREW FORREST AO that mining is community machines, but machines will Three things the mining Fortescue Metals Group focused, is environmentally make more reliable decisions. industry has got right are: sensitive, is at the cutting If there’s a repetitive set of Recent experience has clearly edge of archaeology and • its acceptance and actions needing a repetitive demonstrated the importance anthropological heritage – adoption of advancing set of decisions, then of the mining industry to and makes mistakes but technology; machines do that better. In any Australia’s economy. The learns from them – then • developing a strong unpredictable environment, opportunity we now have is to younger generations would community identity; and I’d always rely on human tell the story of our broader say: “That’s an industry I want judgement. community integration, the • as a result of these two to join.” Mining is among the impact of our decisions things – supplying the Mining is – and will continue most-advanced industries and investments and, at the global community with its to be – a major employer, but technologically and is always highest level, how our actions needs to progress from the in different ways. Economies innovating to see how it can and what we stand for are developing to the advanced reliant on manual labour have do what it does better. understood. world. the highest unemployment It requires a great deal Three opportunities where rates. Economies that have We’re as essential as the health of patience when you’re mining can clearly improve are: embraced technology have sector is to the overall health exploring, acquiring tenements the lowest rates. At Fortescue, of society, and to maintain • taking the community with and even thinking of building we used to employ 8,000 our sustainability, it’s up to it on the mining journey; a mine. Your Number One role people, and now we’re almost us to better explain what the should be making sure that • being sensitive to the fully automated we employ industry does and how we once the business model is in environment and all 15,000. We need more people contribute to addressing our place, you’re communicating stakeholders; and as we become more efficient, planet’s biggest challenges. that model and its impact on • effectively communicating keep growing the business and We need to be seen as the – and positive effects to – the our business worldwide. reduce costs. defenders of the environment, community. And you must Turning to technology, and Those costs have gone from defenders of remote be completely certain from Fortescue Metals Group $57/tonne to $12.78/tonne via communities and as citizens an independent scientific continues to be a global leader a flywheel of improvements of the global community perspective about returning in automation; an example of and technological innovations.

34 There’s no one hero or hero from within your community, and everywhere we operate style system to operate. He a systemic shift. So now we’re technology, but thousands of taking extra steps to – we instil 10 values that questioned what I’d do with committed to demonstrating innovations and technologies establish training centres and drive culture and foster 3,000 people on the payroll. green hydrogen in global-scale that have incrementally integrating employment from local sustainability and My reply was that we would – environments, as we eliminate reduced costs. Our innovation your local community, that’s a empowerment. We can predict and now do – have systems to fossil fuels from our own projects have provided strong pathway to building a and promote independent support our 10 values, not the supply chains on our journey significant development sustainable operation. decision-making in these other way around. to be a major clean and opportunities, with more than locations because our local renewable energy exporter. It’s the employment Finally, and most importantly, 3,000 team members trained employees understand our opportunities and the ability our industry must join the Mining is a fantastic industry to work with autonomous motives and values. Under to communicate these to the global battle to defeat climate with massive potential to be a haulage. no circumstances do they communities within which you change. Fortescue has world leader in environment, countenance the breaking Further, we have our Trade operate that create a positive committed to achieve carbon in technology, community of our cultural values. They Up program to take workers social, physical and economic neutrality by 2030, and to development and heritage. embody a credo that is out of trucks and mines, environment that, in turn, leads do that we are turning our And it is in the strongest culturally mandated – not and provide them with an to long-term sustainability. An energy sources to renewables. position to be the world leader an imposed, legally binding accredited pathway to a trade accounting mentality alone is Across our operations in the in converting heavy industry employment condition. qualification. And this program not workable. Pilbara, we use 650 million over to purely renewable has a large representation of When I started Fortescue with litres of diesel annually, and green energy. It’s up to our Fortescue is a significant Aboriginal people, especially 30 employees, a leader at this will increase to over one leaders to make all of this employer in Argentina and women. If you’re employing BHP told me I’d need a BHP- billion litres if we don’t make potential a reality. Ecuador. In these countries –

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Decarbonisation will be pivotal. While technological advances 20 | 10 are inevitable and happening, they’re a long way from being universal, and they’re costly.

Talk to 20-year-olds today, energy, but you can’t make Mining’s social licence to INÉS SCOTLAND particularly outside Australia use of renewable energy operate will be an increasingly Citadel Resources Group because Australians are quite without us being able to big deal against a “not-in-my- knowledgeable about mining provide the inputs. Kids pick backyard” syndrome – and During the past two decades, compared to the rest of the up and use a smartphone, “my backyard” is increasing mining hasn’t prepared its world, and they see miners as but have no understanding in size and location globally. positioning for the future. people in boots, wearing hard about its origins. Two or more Licence to operate had always Historically, it has been hats and driving big trucks. decades ago, the Minerals been a big issue for mining considered to be in the There’s not been any global Council of Australia made an companies, but I think it’s “grubby business of digging communication that mining advertisement highlighting going to become more of an holes.” Over this course, and has moved far beyond this. that all society used was issue until the industry is seen even recently, there have been mined, manufactured or as more of a solution. a number of environmental Mining must reposition itself grown. To make the point, the catastrophes. as part of the solution rather Attracting younger people ad featured a house being than as part of the problem. It to the mining industry will But as we know, mining has stripped to show how little was needs to be communicating to be a huge challenge. As Big evolved – and continues to left without mining’s inputs. people that renewable energy Bank and Big Tech companies evolve – quickly and adopt is fantastic, but that mining is That message continues to now make up the majority of new technologies, such as a key input to its development. need being broadcast, but the market indices around sensors and GPS-guided And that as responsible via modern mechanisms – the world and – of course driverless vehicles and other miners, we’re doing great targeted global education – financial institutions’ mine-based automations. things internally to make sure campaigns on social investment portfolios, mining This is well known within that we are a part of that media platforms and new companies are a small the industry but, as in the renewables story. smartphones carrying data percentage in the top 500. So, past, it hasn’t been well about the mineral products if you’re a young maths guru communicated to the wider So, people need to understand they contain. chasing an enticing career, audience. what mining contributes: are you likely to join a major we can move to renewable miner? Probably not, you’re

36 looking to the Big Techs – of wants and needs, and the The investment community Tesla, Google or Amazon, reality of what provides the will continue to push hard among others. You’re not resources to fulfil them. on mining to operate within thinking about a career in environmental parameters in a China’s mining push will be mining. A career in mining decarbonising world. significant. It operates under a covers a diverse range of markedly different paradigm Look at The Sovereign professions, trades and skills, to other nations, with different Wealth Fund of Norway for and offers the opportunity to commercial and legal example – the world’s largest make a difference both at the structures under “China Inc” – which continues to sell off local community and global – and it’s not a commercially- investments in companies levels. listed company. It will mine producing carbon emissions. Financing for exploration where major miners will not Other ethical and “green” and project development will go, and engage with local funds are also launching remain difficult. As global governments and operate new environmentally-based investment funds search for on financial bases that multi- investment products which sustainable development national mining companies will exclude mining companies. credentials, this will prove not sanction. Where miners face a shrinking problematic and tricky Decarbonisation will be capital pool, it follows that – particularly for smaller pivotal. While technological production supply will be companies that can’t utilise advances are inevitable and constrained. Mining is an sophisticated environmental happening, they’re a long increasingly capital-intensive offset products and adopt way from being universal, business, but for fund leading edge technologies. and they’re costly. They will managers, mining equities What challenges lie ahead? be built into mines yet-to-be- can be higher risk without Securing your social licence discovered and developed. the associated reward. Yet to operate and reputation The big question for miners mining remains a key part of will be foremost. Mines will with short-term budget the technology solutions for increasingly be opposed horizons is: at what stage do reducing the carbon footprint globally, with social action they commit to large capital and generating renewable against new mines. Yet expenditures, and at what energies. That’s the dilemma. opponents don’t understand stage does it pay off? the consequences of this: there needs to be a decoupling

37 20 + 20

With demand growth continuing, commodity prices will move higher. 20 | 10 Capital returns to miners will move higher. Balance sheets will be also Melbourne 2008 improved. Dividends are likely to be higher and more consistent. Everyone will like this except host governments.

TOM ALBANESE expectations is going to be all stakeholders’ expectations. Resources Super Profits Tax challenged – there are greater debate of 2010-11. Rio Tinto We have also witnessed a demands from all aspects of “changing of the guard” in Among the profound sea- We are amidst three potential society, and all industry is being the US Administration, the changes for mining has been – and disruptive – cusps pressed to make influential and rise of social and cultural industry innovation (which of change. In the first, the effective low-carbon changes. issues including the Black has been a progression for commodities demand profile Decarbonisation, while it has Lives Matter movement, and the past 20 years) and it will is changing. It’s not like when been on-radar for some time, the social media dynamic in continue apace. For example, China will rise and all boats has moved from a second-order which it has crossed the tipping 10 years ago Rio Tinto was will rise with it. Some will rise, issue to a first-order issue. point to lead the mainstream making inroads on automation some could remain anchored. Many of these are parts of media rather than the other way at mine sites and remote And some – like oil and gas trends we witnessed at the start around. operating centres – activities and coal – would sink. It’s of the 21st century, particularly now ever more on the agenda a winners-and-losers type Resource nationalism, closely the changes associated with given the COVID-19 pandemic- scenario. linked to licence to operate, China’s economic rise 15 years induced “work-from-home” is an issue that emerges In the second “winds of ago and its allied “demand movement. during times of prosperity change” setting, we’re moving shock” as everyone tried to for miners with onlooking We’re just beginning to see beyond a benign post-Cold supply its growing needs at the governments seeking a share the effects of this on mining. War type scenario where trade same time. of the gains by applying There’s been a fundamental restrictions were not a barrier, Environmental and social increased fiscal pressure. As shift under the pandemic; it’s and there was a period of co- governance (ESG) – despite and when it emerges, it’s likely been the catalyst for another operation and collaboration. having been on mining’s to impose an added burden on generation of innovation. The current situation is going agenda for the past 20 years – companies opting to operate to be a far more complicated While there’s still a long way to is speeding up. Its overlay will in developing countries. It phase. go for such things as artificial make it harder for miners to will also be a greater risk in intelligence, the changes will In the third, what we thought develop new mines, given the OECD countries. In Australia, be better for well-heeled was the mining sector’s ability tighter demands of permitting for example, it may have investors and the well- to meet society’s and investors’ and matching – or bettering – the potential to rekindle the

38 educated, technologically- As part of the mantra All of the changes that advanced industry surrounding “green steel,” face mining are part of the professionals, and the changes there is a growing number industry’s long cycles during will be worse for those less of companies increasingly the past 200-year history of well-educated workers who focusing on reducing Scope booms and busts. Periods will be left behind. Three emissions under the of rising commodity prices Paris Accord. Steel mills will always lead to supply and Access to capital, coupled more diligently price carbon demand responses, and with ESG considerations, are in their value-in-use thinking, subsequent price declines. expected to lead to a more preferring higher-grade Cycles will still be with us. delayed supply response to products, while focusing the demand shock hereon, There were key phases of on mitigation technologies given the world’s ongoing and investment in the 1980s, the such as carbon capture and growing needs for vital metals. 2000s and now in the decade sequestration and, eventually, It will be as profound as the just past, typically punctuated hydrogen. This is a good sign demand shock of 15 years ago by industry consolidation. on the path to achievable under China’s industrialisation. The investment future for carbon-emission targets. Coupled with the secular trend mining will not change, of 2.5 billion people wanting With demand growth and its important role in a to rise to middle-class status, continuing, commodity prices decarbonising world will only commodities demand will will move higher. Capital increase. become turbo-charged. returns to miners will move higher. Balance sheets will For big miners with existing be improved. Dividends are facilities that can readily be likely to be higher and more ramped-up, meeting their consistent. Everyone will like share of the demand will be this except host governments. achievable. For junior miners, The question is: who pays for attempting to build new the fiscal stimulus measures mines will not readily attract introduced by governments investors and risk “spooking around the world in the wake the horses.” of the pandemic?

39 40 20 | 11 – 20 | 21

41 20 | 11 – 20 | 21 From the podium

42 Across the seas

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20 | 11 The COVID-19 pandemic has forced us again to change strategy and adopt innovation as the Number One tool to improve operating costs.

In the past 30 years in Chile, competitive and enjoyed the Mining’s safety culture has we built a strong operating benefits of the super cycle due improved and is continuing DIEGO HERNÁNDEZ benchmark in creating mines. to our focus on production; to improve. Indeed, this has CODELCO Because of this, we maintained with high prices, increasing contributed to greater sanitary the Number One position in production volumes is the controls due to the disciplines For good reasons, our terms of copper production: best strategy. But when the imposed by the pandemic mining industry – both in mining in Chile generates cycle ended in 2015-16, we and this is now embedded Chile and broadly across 50 per cent of exports, 10-12 were slow to react because in Chile’s – and indeed the the world – is conservative. per cent of national GDP and the paradigm changed and world’s – mining industries. It is capital intensive. between 20 and 30 per cent of we needed to focus on All stakeholders understood Investments take time to investment; it generates about protecting operating margins. they had to work together for execute and materialise, and 28 per cent of world copper We did react, and about two the collective health of our at the same time generate production and comprises years ago cash costs peaked workers and communities, significant returns on capital. about 30 per cent of global and operating conditions and to ensure the chain of We therefore cannot risk copper reserves. improved. payments. They were flexible innovation if we are not 100 From 1991 to 2004, Chile’s The COVID-19 pandemic has in reacting and working per cent sure of its success. A annual copper production was forced us again to change together, and we ensured the failure in our business can have lifted from 1.6 million tonnes strategy and adopt innovation required operating protocols major consequences. to 5.3 million tonnes due to as the Number One tool to were in place to maintain I’ve seen failures in projects expenditure, in nominal terms, improve operating costs. We operating continuity without because technology was not of more than US$42 billion. were forced to adopt different disruption, despite the fully-proven on an industrial Then from 2004 to 2019, we working practices (about pandemic’s effects. scale, and in others because invested even more than this, which we were resolute in This has prepared Chile for the relevant jurisdiction was yet annual production only adopting before the pandemic) the next cycle (which could not mature enough to follow increased to 5.8 million tonnes. within and across companies, last 10 or 20 years) and our the rules agreed in advance. trade unions, and government Why? Because mines became operating benchmarks will Hence, the industry needs, and mining authorities. mature and ore grades continue to make us world- by necessity, to remain highly decreased. But we remained competitive. In Chile – and conservative.

44 around the world – mining Copper’s future is positive. Between now and 2022, the companies must, under all There will not be a die-off in pandemic’s effects on supply circumstances, introduce and copper mines, despite reduced and demand will remain, so embrace new technologies, capacity to invest in the short mining will stagnate in the rationalise their organisations term. Demand – and therefore sense that it will not grow. and improve their decision- prices – notwithstanding In the short term, there will be making processes in order to the effects of the pandemic less focus on new exploration ensure medium- and long-term and China’s initial pull-back and more on brownfield competitiveness. from the copper market, operations, and the extension will hold up given the red Governments also need to look of mine life. Rather than metal’s myriad uses. And after their respective mining seeking to mine at greater copper has a major role to industries and understand the depth and search for higher- play in mitigating climate importance of their scale over grade ores, companies will be change across renewable the long term. Mining is far more selective about grades, energy, electrification and more than a large taxpayer to and in due course greenfield environmental imperatives. be milked by government. projects will start to increase The move to “green copper” in pace. By the end of 2022, Chile will is one such advance towards have a new Constitution, and reducing copper-related our aim is to protect what we carbons emissions. Mining have in terms of mining as the consumes one-third of economic activity and national Chile’s coal-fired and hydro- wealth generator. generated power, but its Coupled with this, there needs dependence on imported to be integration with local coal and coal-fired power communities – “integrated plants must, and will, change. mining” – that can cement The country’s high levels of the importance of mining solar radiation and deserts investments made by both lend themselves to solar government and private and wind power generation, investors for local benefits. and increasingly new power contracts will be struck with the providers of these.

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20 | 11 As we drive towards increasing productivity and deploy more technology, we must manage the trade-off between automation and local labour employment.

In the past decade operating pond at its Los Bronces cost increases – in some timelines extended, while operation in Chile; Rio Tinto cases exponentially. Copper CYNTHIA CARROLL “overnight” returns on capital is sourcing wind power to grades globally have declined Anglo American abated. Returns for operators, support its Kennecott copper for a long time and the size businesses and commodities mine in the US. While the of mineable resources has We live in uncertain times. are lower, and take longer to uptake and intensity of solar- shrunk. There are fewer, Geopolitics has become deliver. “Stronger for longer” and wind-generated energy accessible orebodies. predominant in the past five is perhaps no longer the norm. usage are not extreme, the years. The COVID-19 pandemic progress is positive. Capital allocation is ever- is having a substantial impact Greater time is needed to critical. Governments don’t on mining and on the demand identify, acquire and utilise Biodiversity and land have the funds to develop the side, in particular. mine resources. They’re management are prominent, necessary infrastructure to diminishing. The resources given increased pressure from support expansion of existing We’re a long way from the needed to mine – particularly governments and NGOs. At mines or develop greenfield super cycle, but from 2015 up water – are critical. Given that Anglo American, we instituted sites. The responsibility for to the pandemic’s emergence a substantial percentage of a program to enhance power, railways and ports there was general recovery mining activity is in water- biodiversity at all our mines. falls to miners. This increases in commodity prices, fuelled stressed regions, water is now Others need to follow suit. operating costs and reduces by global economic growth. the common denominator that the bottom line. Commodity markets are now dictates whether miners can Resource nationalism is a disproportionally affected by produce, expand or open new common theme that’s risen As resources become harder China while we’ve also seen mines. in the past decade in Africa, and more expensive to access, recent, significant slowing of Asia and South America. miners must assess alternative its GDP. Dependence on reliable It’s come in various forms, sources of materials to energy supplies is vital, albeit greater royalties and complement supply. The What does the “new world” along with reducing carbon taxes, land acquisition, local- Japanese have been urban of mining embody? The major footprints and searching for content rules, equity stakes for mining – reusing and recycling change in the past decade renewables. Miners must be governments, beneficiation or – for years. It’s spreading has been the realisation and proactive. Globally, companies outright expropriation. globally. recognition that profitability are implementing renewable and sustainability from ESG energy projects: Anglo Orebody quality has been Before the 2007-08 Global standpoints are intrinsically American installed a photo- declining in critical metals Financial Crisis, capital linked. voltaic plant over a tailings which has translated into allocation was unconstrained.

46 It’s now highly constrained. as the 2019 dam burst at the autonomous and electric- Miners remain under Brumadinho mine in Brazil. powered machinery and drone extreme pressure to curb Greater controls, more- technology. In 10-20 years, their spending practices. frequent audits and increased mines may be smaller, more Consequently, we’ll experience scrutiny are the new rules. self-contained. a squeeze on the minerals that society needs, given ESG has changed rapidly The top-down company the challenging nature of and is now more uniform narrative and tone is changing. where mines and resources around the world. Given Company leaders more are located and how they’re mining’s complexities, we regularly discuss social value, developed. need alignment between societal input and social stakeholders to secure capital. Discrete ESG elements The labour talent pool is licence to operate. We need aren’t of mining’s making, but changing, in many places equitable engagement with the focus on ESG is. with misalignment of communities that’s sustainable expectations vis-a-vis and supportable for decades Today, investors actively greater talent and be better For future miners, it’s about increased labour costs. ahead. We need to connect drive improvements in ESG placed to maintain their reputations being challenged. Wages may have aligned with host governments to performance across all licence to operate. Mining must inform people with global standards, but establish level playing fields industries. Ethical investors about what it creates and Proactively, constructively productivity hasn’t moved and predictable regulations such as the Church of England gives back to society. engaging with communities in tandem. It’s ever-more and policies. have successfully led the call is crucial. A greenfield or My outlook is bullish: the challenging to offset rising for international standards on operating site has always world needs our commodities, costs. We must all achieve zero tailings governance. Investors harm. People come first. We piled pressure on Rio Tinto to been about enhancing minerals and metals. But this Competition for capable must protect everyone on act following the blasting of communities and regions so comes with substantial and people is increasing, especially site. As we drive towards Aboriginal heritage caves in they’re better off economically constant scrutiny. given the march of new increasing productivity and Western Australia’s Pilbara. and sustainably from our Against a backdrop of technologies. It remains fierce. deploy more technology, we Such is society’s pressures on presence. It’s a balancing perceptions of mining as an Miners must broaden their must manage the trade-off our industry. act – addressing training of old, dangerous, polluting and talent bases and proactively between automation and local local people for mining and destructive industry, we now employ women at all levels. labour employment. These dynamics will create non-mining jobs; long-term conditions for sustainability to sustainability of communities see an industry emerging Granting of permits to Technology is the fourth become a competitive element from water, energy, land-use that’s vital to the low- operate and develop mines is industrial revolution in in mining in the next five to and biodiversity standpoints; carbon economy, safer, more onerous. It takes time. Legal transforming our industry, 10 years. Those that perform investment in community environmentally protective and permitting costs are generating smaller well on sustainability, ESG and infrastructure and education; and leading technological increasing. Environmental environmental footprints, climate change initiatives will and “partnering” with innovation. Miners must do clearances are harder to reducing water needs, mining gain better access to capital, communities. their part to apply world-class secure; a situation mired by more accurately using artificial their shares will outperform practices while creating value environmental disasters such intelligence, and deploying their peers, they’ll attract for their shareholders and the broader community.

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Reading demand correctly is a judgement call. 20 | 12 It requires not placing downward pressure and cannibalising the prices of commodities you already produce.

top of the cycle. Today, few of business that slowly depletes you already produce. This is these mines are yet to deliver its asset base. At some point, crucial: think commercially, IVAN GLASENBERG a decent return. That is the those assets will need to be not as production engineers, Glencore history of mining since 2000. replenished. assess market demand and supply before building new Mining has been generous Years ago, I tried to encourage What is starting to re-focus mines, and ensure you find to the global demand for Warren Buffett to invest in the industry is companies the right balance between commodities. The world needs Glencore. “No,” he said. “I adopting a “value over re-investment and shareholder the commodities that our don’t like your industry.” He volume” approach. This should returns. industry supplies. What our said we produce generic and boost returns and earnings industry has not done is focus unbranded products, and as multiples. However, China as The reality is that to meet on ensuring it earned the right soon as demand is strong we consumer of half the world’s the goals of the 2016 Paris return when supplying that dig new, bigger and better commodities has already Agreement will require a demand. That’s why the sector holes somewhere else and foreseen this. The country significant increase in the trades at poor price-earnings over-supply markets. wants to become less reliant supply of “green metals” – for multiples – a maximum of on commodities such as iron example: copper, nickel and When we took Glencore public 4-5-times – while other ore from Brazil and Australia, cobalt. Increasing mine supply in 2011, the questions we kept industries trade at much larger and seek to develop its own will be challenging. getting asked were “when will multiples. The tech industry is supply as it is doing with nickel you build a new mine, where’s It will involve accessing future a good example of this. from Indonesia, copper/cobalt your growth coming from – resources in more challenging from Africa and, potentially, When China’s economic show us your bubble charts, locations, often lacking key iron ore from Guinea. China boom emerged in 2002, this you have depleting assets, how infrastructure, and ensuring will start to become less reliant led to a huge demand for will you replace them?” we build and maintain our on the traditional miners for its commodities. The industry did social licence to operate. We It is now changing. We all were commodities. everything possible to feed may get to a situation where burnt in 2008 and 2015. We that demand and subsequently Reading demand correctly is new supply won’t come have not yet fully recovered over-supplied it. We invested a judgement call. It requires from traditional miners – not the trust of investors as close to US$1 trillion in capital not placing downward because they don’t want big responsible stewards of and shareholders’ money in pressure and cannibalising growth projects, but because capital, but we are on the developing new mines at the the prices of commodities they simply don’t have them. way. Mining by definition is a

48 Mining’s other challenge is to tackle its emissions footprint, primarily Scope Three carbon emissions. This is a real area of focus for investors who are placing significant pressure on the industry to tackle these emissions. Glencore has been a feature of the global commodities industry for nearly half a century, growing from a physical trader of metals, minerals and oil, into one of the world’s largest and most- integrated natural resources companies. Today, the business, with its portfolio of commodities and activities, is uniquely positioned for the expected resource needs of the future. We are ready to support the transition to a low-carbon economy and realise our stated ambition of achieving net zero total emissions by 2050.

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20 | 12 Given the paucity of money available to miners – gold miners in particular – there will be more industry consolidation.

share register compared or US$1,200/ounce? That’s mergers – they create “massive with about 12 per cent six been well-nigh impossible monsters” and to keep years ago. These funds track not only for gold, but also for these monsters maintaining NICK HOLLAND performance of relevant copper and iron ore producers. production levels is nigh on Gold Fields indices (for example, the When prices fall, they’re all in impossible. FTSE 100), so companies must trouble – they restructure, lay So we get back to the same Just over eight years ago at be far more prudent with their off people and think rapidly problem: investors buy these the Melbourne Mining Club, capital investment decisions. about changing strategy. companies for growth and I outlined the central issues Why? Miners must prepare Consequently, most big-scale cash flow, and to maintain facing the mining industry. themselves for the downward mining projects won’t proceed production these companies Many of these remain valid. path in these cycles. It’s truer on one-owner or one-company need to retain far more of today than in the past. The issue then was growth bases, but on consortium or their profit and not direct it for growth’s sake – ounces joint-venture bases due to Given the paucity of money all to shareholder dividends. for ounces sake, undertaking funding availability. This is available to miners – gold Shareholders won’t wait massive projects, being the compounded by investors miners in particular – there longer than 3-5 years while a biggest producer – with few seeking yield. Across the will be more industry mine is being built and income miners making substantial world, yield has dried up consolidation. It will be more forecasts are achieved. They money for their shareholders with interest rates at zero or nuanced compared with want returns in the short run. and poor capital-allocation negative, and bond markets the “big-bang” mergers of That’s made our jobs even decisions, despite robust unattractive. As such, investors 20 years ago, with larger harder. access to capital. want gold and other miners companies buying up Investors remain highly to pay dividends – they don’t intermediate and smaller The ability to fund big projects cautious. During big run-ups in want expenditure on a growing companies. There’s logic in this was more feasible given the the gold price (I’ve seen two production basis. given the dearth of exploration number of dedicated gold such cycles in 25 years) costs across mining for the past 20 (and metal) funds. In the past It echoes my 2012 view: follow rapidly. Cut-off grades to 30 years, and companies five years, we’ve experienced you’ve got to be making get reduced, companies start can’t catch up on this hiatus. the rise of the indexed funds money through the industry’s mining more marginal material, tracking baskets of underlying cycles. It’s all well to make Big companies may circumvent and in short order costs rise investments; these now money when the gold price this problem by buying their by the same percentage as the comprise 35 per cent of our is US$2,000/ounce, but can smaller counterparts. I retain gold price. you make money at US$1,100 a jaundiced view on big-bang

50 Investors ask if the gold price Companies must be Industry leaders must better will reflect in the bottom line. run professionally and articulate mining’s value to Or, are you going to mine transparently. We cannot the world. Its positioning for low-grade ore, and costs be extractive alone and we the future needs to be on a rocket and we get inflation and must move to a more circular broader platform to better heavier taxes on profits? Gold mindset. It’s “integrated understand its endowment of equities haven’t responded thinking,” achieving superior existing resources that allow it fully to the recent gold price; returns while ensuring we do to create value for customers, they’re lagging the price all the right things like thinking end-consumers, governments, pick-up. That’s why investors about mine closures even affected communities and – carefully watch the bottom before we develop new mines naturally – shareholders. line: will companies buy assets – to focus on the lifecycle of Mining needs to take full at much higher prices that operations and concurrently advantage of its licence to don’t make returns at lower mitigate risks and costs innovate and remain a major prices, will there be increased and add community value. part of the world’s future. dividends, or are they catching We have to be integrated up on lack of expenditure into communities and made in the past 5-10 years? environments where we work. That’s the dilemma. For investors and society at large, it is a case of “we won’t Miners need to keep costs reward you if you get it right, under control, be disciplined but we’ll penalise you if you in cut-off grades, increase don’t.” profits and dividends, and not let balance sheets get To achieve higher health and over-geared as they did 10 safety outcomes, we must years ago. I highlighted this utilise big data technology and in 2012. If the gold price rises, remote working to remove investors want to see company people from the orebody. valuations, cash flows and There will be fewer people on – ultimately – share price site, but more highly-skilled improvements. people. This is a generational journey, despite advances The future? Environmental already made in mine and social governance automation. issues remain fundamental.

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20 | 13 . . .there are too many apologists for what mining does and doesn’t do well. It’s a fundamental industry. We should be proud of, also 2007 and celebrate, it – not make excuses for it.

IAN SMITH centres were Broken Hill, Mt Isa with all workers and not simply town built in Australia before Orica and Kalgoorlie. They housed manage from the top down. the advent of fly-in-fly-out, (Newcrest Mining) highly-practical people with It schooled me in industrial with a population of 4,300 long tenures in mining and relations, communication and people and 800 kids in the After 45 years in mining, I still were well-grounded across change management. This one primary school. I lived and believe the industry doesn’t a range of technical mining overall education enabled me worked there; not only did sufficiently train its technical essentials. Once I graduated, to advance through various I learn more about mining, I people nor does it adequately I knew about the technical company ranks, from cadet learned about the importance promote the positives that aspects of mining engineering to CEO status. I feel sorry for of community. resource development brings. and the practicalities of being younger people who don’t involved with, and running, a get this type of grounding As a general observation, I completed a finance degree mine. before being released into miners have forgotten that before deciding to be a management ranks. the basis of wealth should mining engineer, beginning a Active engagement on mine be exploration (and success cadetship with CRA at Broken sites and getting theoretical At that top end of the scale, therefrom). A greater Hill. I was lucky – the University education training had an some leaders stay on too long. exploration focus is needed of NSW had a campus osmotic effect. It gave me CEOs shouldn’t hold office – note how few exploration there, so I worked mornings a great foundation. Today’s beyond 5-7 years. Being a geologists are directors of underground and studied in trainees and tertiary graduates board member was the less- the world’s biggest miners. the afternoons. I learned about don’t get the chance to inspiring side of mining to me, Executive managements the physical aspects of mining acquire a thorough technical and spurring on board teams are transfixed on corporate and – in tandem – the theory of background to become in- was onerous. Mining is all finances and cost-cutting as engineering mining. depth mining engineers. about “having a go.” Corporate the road to wealth in mining, culture needs an additional and this isn’t the only case. The cadetship system covered Through the 1980s – a element that allows people surveying, geology, ventilation, time of contract mining, to do this. Being community- Think of the late Roy Woodall geo-mechanics, mine planning highly unionised mines and aware is also important. Roxby AO, a great explorationist and and more. Things have fundamental change in the Downs was the last big mining geologist, and one of Western changed. In my time, the three Australian workforce – shift Mining Corporation’s “group of great training bosses, superintendents, senior six” credited with discovering engineers and production managers had to communicate

52 the multi-mineral Olympic Dam improvements are great – About 80 per cent of deposit. He embedded the everyone’s doing it – but the Australia’s metalliferous- exploration culture at WMC. fundamental value equation is bearing material remains Think of Bob Adams at Rio unearthing the best deposits “under cover.” Application of Tinto, the strategist behind – nothing makes up for grade. advanced geophysics now its dual listing, its investment You can have clever people allows miners to “see” down in Grasberg and its early and throw lots of capital at beyond 400 metres, so there’s investment in Escondida. existing deposits, but with potential for a whole suite of He was a transactional man (new) highest-grade deposits new discoveries. with insights into how miners and the easiest mining could add value and make methods, you’ll make more Mining’s long-term – 50 years money. Both men understood money than anyone else. It’s plus – approach requires mentoring, and both common sense, so why don’t greater source data developed championed exploration and companies pursue this? with government sponsorship, development. an improved structure for When did a major miner last access to ground with miners Elsewhere, there are too many find a deposit that changed compelled to properly drill out apologists for what mining its bottom line? Aside from prospects, mine development does and doesn’t do well. smaller explorers, we don’t processes to proceed faster, It’s a fundamental industry. see today’s CEOs getting access to base data and the We should be proud of, excited about finding and imprimatur to act on it, and a and celebrate, it – not make developing new, big deposits “true union” between mining excuses for it. On balance, it to fundamentally change their and government to facilitate houses far more positives than bottom lines. They improve base exploration. negatives. Urbanisation is more existing deposits, but not destructive than mining, yet create them: incrementalism few comment on this. versus step change. For example, at Newcrest Mining, The intensification of capital we applied a distinctive application clearly leads approach in adopting block mining’s incremental change, caving, hiring in requisite but 20 per cent of assets in expertise. We created an mining generate 80 per cent orebody people thought would of the value. So yes, safety and be a ho-hum at best. This incremental productivity type of step change sets up companies. Exploration is in the same mould.

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20 | 14 Given a 20 or 30 year life-of-mine, we can help create a life-of-community for 100 years. It’s a licence to innovate and also Melbourne be part of the future. 2008

MARK CUTIFANI stay open.” We traced the materials used to generate energy, hydrogen and wind- Anglo American conversation back to farming, farm produce and double generation sectors. Many of (Anglo Gold Ashanti) fertilisers and the daily things productivity. the coal-transition proponents that make society function in the audience hadn’t made We generate products For the past 30 years, my – to get fed, get medicine that connection. essential to build houses, positioning for the mining and so on. At the end, the for steel fabrication and As mining engineers and industry has been its need to conclusion was: “that’s 70 per for metals-based products industry leaders, we must operate on a much-broader cent of essential activities that for solar energy hardware. articulate what mining means platform. We don’t tell our will have to keep going every Apportioning mining’s to society and the world. I’m story in terms of what mining day.” I said “yes.” contribution to these the first to admit that having means to – and, importantly, So, when we ask what mining fundamentals adds a further an “extractives mentality” what it does for – the world. does for the world, the 25 per cent to global GDP. The across sections of society With the advent of the answers range from “digging total is 45 per cent. Mining’s is one-sided. We can’t view COVID-19 pandemic, it struck holes and making a mess” outsiders don’t appreciate that mining without considering me that many people don’t to “we can’t exist without it mining’s output makes their making a better planet. appreciate how the world because of what it delivers.” lives possible. Getting that World Materials Forum1 data works. When lockdowns message out to the broader shows that we produce twice Some context: the extractive occurred, we asked politicians population will start a very the amount of sustainable sector produces 10 per cent of what they would lock down. different conversation. products from mining than global GDP. Add the revenues The answer: “everything.” can be maintained in the long that support and service In a speech in Cape Town term. The world can’t sustain Would they turn off the power industries derive from working in 2019, I explained that to this rate and continue to stations? “No.” Do you need with mining and there’s transfer out of thermal coal, evolve and improve. water? “Yes.” How will people another 10 per cent. Then the industry would have to be fed? Most people don’t there’s our contribution to deliver more copper, nickel We must recycle more and keep three weeks advance agriculture via fertilisers and and all the base products move from an extractives food. “Some shops will needed to support the solar mindset to a circular mindset.

1.  The World Materials Forum is a non-profit organisation convened to share knowledge about the economic, political, social and environmental implications of global resource use. It aims to elevate on the agendas of policy-makers and business leaders the issues of global resource consumption and resource productivity.

54 All humanity must understand Because we use so little land, infrastructure, bring water, years will be far different. The technology for mining and the role of extractives and we affect about one per cent develop roads and create conversations might be tough processing, and simultaneously how vital they are in making of the global population. employment. and ugly, but we can’t just reduce our physical, society work. I don’t advocate That impact is nonetheless keep getting bigger. We must environmental, energy, water This provides the chance to unbridled mining, but to significant. change the fundamentals, and carbon footprints. turn subsistence living into articulate mining’s place in the continually embrace advancing For me a mine – a hole commercial agriculture and big picture and its essential properly engineered – is a help communities diversify role in the planet’s future. beautiful thing. For people their commercial bases. Given Mining disturbs less than living alongside, it’s a major a 20 or 30 year life-of-mine, 0.5 per cent of the earth’s irritant. We must fulfil our we can help create a life-of- surface and drives 45 per cent environmental and social community for 100 years. It’s a of the global economy. The governance undertakings, our licence to innovate and be part agricultural sector uses 40 per licence to operate, pay local of the future. cent of the earth’s surface and royalties and partner with For example, Anglo American has a devastating impact on communities. We must stop has committed to creating climate change. The products being engineers working to five jobs off-site for every of mining actually help reverse Maslow’s hierarchy of needs2 on-site job. If we don’t create that impact. We don’t hear the and lecturing communities opportunities where we work, criticism of agriculture that we about what they need, and people don’t want us there. do for mining, yet mining helps hear what they want. ensure that for land dedicated We can – must – assess our Mining delivers infrastructure, to agriculture, we seek to role in regional economies, transport, skills and financial minimise that footprint. invest in and connect with capacity. We must apply them. Regional collaboration Addressing climate change these to local communities’ in development is central to requires more carbon sinks benefits as they see it, not as miners of the future. and producing more food from we think they should see it. less land to bring the world And in continuing our activities For the past century we’ve into balance. We can’t simply ask: “what can we do to help mined the same way as always. stop activity to achieve this. you create your community’s But we’ve changed. We’re still We need greater productivity future?” A mine with a 25-year changing. With “future smart” from agriculture which, in mine life wants to proceed; in mining, the next 100 turn, means mining products return it must build energy become more important.

2. Maslow’s hierarchy of needs is a psychological theory of motivation expounded by US psychologist Abraham Maslow in 1943. It holds that five categories of human needs dictate individual behaviours: physiological, safety, love and belonging, esteem, and self-actualisation needs.

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20 | 14 We need to learn not to fall under the spell of always maximising NPV when it means shortening mine life.

Gold’s discovery of the Investors saw that if they So the fundamental Goldstrike mine1 in Nevada invested in companies investment thesis for gold in the 1990s. All of a sudden, that might grow, either by and base metals over this CHUCK JEANNES shareholders in this tiny, acquisition or exploration period has been sound, driving Goldcorp relatively unknown company success, they might achieve a tremendous growth in the became immensely wealthy “10- or 20-bagger” – a massive overall capitalisation of the The major themes of the as Barrick stepped into a return on investment. As a mining sector. That’s the good past 20 years were largely 50-million ounce deposit. result, investors willingly paid story. The bad news is that consistent between diversified A new and large group of premiums for stock in order to when prices rise, you have to miners and gold companies, investors became interested gain optionality on growth. act in the moment – and the driven primarily by a dramatic in gold equities, dramatically view in “the moment” was to increase in commodity prices The rush among investors, changing the business. grow aggressively because from 2000 for most of the combined with increasing prices were moving higher. ensuing two decades. Looking back at gold stocks gold prices, meant there was We all did that and, without in the 1980s and 1990s, more funding available for For the diversifieds, price exception, we suffered by the companies worldwide companies to explore, acquire appreciation was driven by the overpaying for assets, with the were fairly staid, consistent and provide investors with growth of China’s economy. benefit of hindsight informed performers, valuations were the opportunity for significant Drivers of the gold price by moderating metals prices, modest and volatility was success. That was the start are more complex, but the or by trying to build too many not pronounced. But with of exciting times for the gold similarity is that both sectors projects simultaneously, greater money chasing these business. After a run in the were eager to grow their which drove scarcities of companies came massive gold price from 2000-02 to businesses to supply enhanced materials and talent, and thus valuation and volatility 2010-11, the enthusiasm was demand, using increasing cost overruns and delays in increases, and many new moderated by declining prices revenues and equity valuations the delivery of projects as entrants. That’s when gold for a while, but the overall to acquire new reserves and promised. companies – and this has trend has been higher over build new mines. lasted 20 years – began two decades. Miners compete for scarce The gold industry exploded in trading at significant multiples natural resources. When the 2000s in an unparalleled to net asset values. they’re discovered, there is way. I always recall Barrick

1. Barrick acquired Goldstrike in 1986, and up to 2018 it produced 44.4 million ounces of gold.

56 naturally strong competition The challenge is that when you can recover your capital Ultimately, miners dig holes Fewer but larger mines for those assets – and that we’re all chasing growth investment over the course in the ground and that can will be developed by fewer drives up valuations. We’re simultaneously, we can make of a mine life. The higher that be perceived as negatively companies. Small exploration owned by shareholders bad decisions. It’s not growth number is, the more likely affecting the Earth, so we companies and their high-risk and we’re obliged to listen per se that’s the problem; you’ll hit the good price cycles must mitigate that impact investments will always play an to them, but shareholders it’s the poor execution of a and deliver strong returns. to the fullest extent possible important role in discovering have shorter-term horizons growth strategy that can derail Such discipline will also reduce and be excellent at providing new deposits, but larger than the investments that a company. We need to make overall capital spending, overall benefits to society. companies will increasingly business itself demands. sound decisions, focusing maximising shareholder dominate the project In the next 10 to 20 years, It takes six to 10 years or on quality assets no matter returns. development and operations the mining industry will be more to identify a resource, where we are in the price cycle side of the business. The future? Mining doesn’t much more efficient in the undertake feasibilities, build and, most importantly, have get enough credit for its market place. An increasing Overall, the future is bright and commence operation of a the right people to properly cutting-edge work in applying percentage of revenues will be for our industry as society will mine. execute projects. Mining is new technologies to an old required for the quality work continue to require the metals a science-driven business While prices are rising, business. The general public necessary to tackle issues such we produce, and we will do a to grow successfully and we shareholders demand growth doesn’t appreciate how as enhanced environmental good job of delivering them need highly-educated and – increased exposure to the high-tech our business is and protection, achieving and in a profitable and sustainable experienced people. commodity in which they have instead views us as a low-tech maintaining social licence to manner. invested. When prices fall, Miners can also iron out “dinosaur” industry. We must operate, and decarbonisation. they understandably demand booms-busts by being more keep educating about what greater capital discipline, disciplined about the types of we do. We are responsible with returns of capital to assets they acquire and how stewards of the environment, shareholders rather than they build them. We need to our safety performance funding growth projects. learn not to fall under the spell continues to dramatically of always maximising NPV (net improve, we greatly benefit Growth becomes a bad word, present value) when it means the health and welfare of but the reality is that in all shortening mine life. the communities where we cycles, growth is the primary operate, and our industry is determinant of share value. Given the nature of the price highly-focused on the key No-one buys a stock with cycles in our business, it’s issues of diversity and climate the hope of flat revenue and better to have a 15-year mine change. We need to redouble earnings, and in a business producing 100,000 ounces our efforts, be better about where we don’t control the a year than a 7.5-year mine not just doing these things, price of our product, the with 200,000 ounces a but also communicating our primary way to increase value year. A key valuation metric successes. is to produces more ounces. should be how many times

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We’ll never again see a China phenomenon. 20 | 15 But globally we’ll see steady growth. Companies will be more prudent, also 2018 have a greater focus on costs, and apply restraint to avoid over-supply.

boom years, with Australia’s restrain growth. This caused a longer dominated by Australia, ALBERTO CALDERON BHP becoming the then third- steep slowdown which, in turn, as has been the case for Orica largest company in the world created concerns for China’s iron ore. (behind Exxon and Apple). major customers. China is now I addressed the MMC again in I’ve lived through the booms That was driven by China’s moving into its second phase 2018 regarding global warming and busts and the long-term growth. of development. History has and the much-needed growth of mining. It’s always shown us that in this phase, Iron ore took off during China’s technological development been important for Australia steel tends to become less first phase of development. of renewable energy sources. and, of course, the world. important, and at some point The need for steel naturally There is no doubt that at some Nobody, however, anticipated its consumption will actually meant an increased demand point, likely around 2050, the the rise of China that led to decrease. On the other hand, for thermal and metallurgical world will have moved to net redefining of mining around as China transitions into this coal. That was the first really zero carbon status. the world. No-one dreamed second phase, it’s expected big revolution. The fastest- China could put together and that middle-income earners Nevertheless, the technology growing entity in iron ore sustain such economic growth. will demand whitegoods, cars doesn’t exist today that would wasn’t BHP, Rio Tinto or and communications – all enable that transition as swiftly China’s annual growth rate was Vale – which struggled to creating increasing demand for as many of us would like. For as 10-11 per cent for several years. keep up with the pace of copper, nickel and aluminium. long as there is no competitive It became the prime customer demand – it was China. It grew way of storing energy for for the majority of the world’s from producing 100 million Australia has benefited months, some sort of non- consumption – half the world’s tonnes to 800-900 million enormously from the scarcity renewable resources will still copper, aluminium, coal and tonnes of steel annually. It of iron ore and the price be needed because there is a iron ore output. Its growth was remarkable over a short at US$200/tonne instead technical limit to renewables. removed supply bottlenecks timeframe. of US$70/tonne, but it is a and led to the building of temporary windfall. What World forecasters on energy Then came the 2007-08 ports, airports and roads. So, mining companies understand trends suggest renewables Global Financial Crisis, when I attended the inaugural – and Australia must begin might represent about 50 followed in 2015 (when I MMC function in London in to grasp – is that the world’s per cent of global energy first addressed the MMC) by 2007 (speaker: CVRD’s José growth will move to other generated by 2035, with the China’s credit bubble that led Carlos Martins) we were in commodities that are no balance flowing from gas and the imposition of policies to

58 nuclear sources. So we still iron ore, copper, nickel, cobalt those companies that can’t need some form of reliable and aluminium are known. or don’t will miss a beautiful energy; in Asian countries For the biggest mainstream opportunity when copper’s lacking natural resources, there commodities, things will scarcity bites the market. will be ongoing dependence be fine: there is insufficient All of the above is necessary, on thermal coal. These are copper in the world so there but not sufficient. It is safety necessary transition energy will be scarcity in the next that keeps all miners awake sources if we want to keep the decade, and projects not yet at night. It should. We’ve lights on while the requisite started will have to come got better at it, but it’s not technology is developed. on stream. perfect. Events such as the The technology used in For smaller, newer Brumadinho dam disaster in today’s batteries doesn’t offer commodities there may be Brazil in 2019 with multiple competitive storage. They scarcities. Rare earth minerals fatalities should never happen. never will. By 2040-50, we will attract great hype; perhaps In an industry where workers have competitive storage. I’m they’re not so rare. Overall, lives are so paramount, confident mining companies miners must be careful about there must be an absolute will find the way forward in the understanding the size of commitment to safety. This next 20 years, and the larger world markets relative to is doable: responsible mining companies will be best placed how scarce the relevant should ensure that it has to do this. Orica, for example, commodities are. processes in place that if has committed to a 40 per followed all of the time, they We’ll never again see a China cent reduction in nitrogen will ensure zero harm. phenomenon. But globally oxide gas emissions by 2030. we’ll see steady growth. While this is rapid, most Companies will be more companies will be able to do prudent, have a greater focus this without breaking the bank. on costs, and apply restraint to Miners have learnt the lessons avoid over-supply. This won’t of over-supply and are now far change. Large companies more thoughtful about capital that are able to have or find expenditure. There will be large resources of copper will more brownfield expansions, be winners. It’s difficult to fewer greenfield projects, find good, large-scale copper more mine optimisation and deposits (it would be rare to de-bottlenecking. Scarcities of find another Escondida), but

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The key challenge for the mining industry for the next 20 years is 20 | 16 finding and developing the next generation of mining camps.

The WGC has become companies. Twenty years ago, Managements and boards are DAVID HARQUAIL the world’s most-effective retail investors, pension funds pressured by generalists to Franco-Nevada commodity market- and specialised resources financially engineer shorter- development organisation. funds dominated share term returns through leverage A highlight during my term as Its authoritative research registries. Today, it’s generalist and share buy-backs. CEO of Franco-Nevada was has made it respected by and index funds. The experience of 2015-16 the opportunity to address the policy makers and central With this shift has come an demonstrated why this was a Melbourne Mining Club (MMC) banks around the world. increased focus on capital bad idea for even the largest of in early 2016. I’m honoured It has helped modernise allocations, returns and the diversified miners. Moving to have the MMC request my market infrastructure and environmental, social and forward, managements and views on the past 20 years for it has developed new gold governance (ESG) criteria. boards will have to educate our industry and the outlook investment products such Adoption of the RGMPs by the their generalist investors for the next two decades. as the gold exchange gold mining industry is just on the need for appropriate traded funds (ETFs). Most Since my Melbourne talk, one example of the industry longer-term capital structures importantly, the WGC has I have had the benefit of responding to the needs of its with a strong component of allowed the gold industry further opportunities to new owners. Hereon, there is permanent capital. to speak with one voice and broaden some of my original no doubt that public mining initiate collective actions. In The other challenge for even perspectives. One of these was companies will need to juggle 2019, this was highlighted the larger public mining the opportunity to chair the ever-increasing demands from by the member companies companies is staying relevant World Gold Council (WGC) a multitude of stakeholders. of the WGC adopting the to the generalist investor from 2017-2020. Its members Responsible Gold Mining One of the continuing dangers community. This requires not include the world’s leading Principles (RGMPs).1 of generalist investing is the lack only competitive returns to gold mining companies. of appreciation of the need to other sectors of the market, This highlights one of the risk-adjust mining returns and but also competing with themes in my 2016 talk when how much more cyclical mining new investing alternatives or I spoke about the changing is relative to other sectors. business models in the mining ownership of public mining

1. The WGC’s 51 Responsible Gold Mining Principles comprise a new framework setting out clear expectations for consumers, investors and the downstream gold supply chain as to what constitutes responsible gold mining.

60 business. These include the The key challenge for the Five years ago, I made a schools in the world, with The discovery of orebodies commodity and equity ETFs, mining industry for the next 20 financial commitment to 86 Masters and PhDs has the biggest multiplier the royalty and streaming years is finding and developing Laurentian University in collaboratively undertaking effect in the creation of new companies and – increasingly – the next generation of mining Sudbury, Ontario, to fund its geological research. wealth for society. Society can private equity. camps. Unfortunately, the Mineral Exploration Research argue about how to share the MERC was able to leverage past two decades have Centre (MERC). It’s the wealth, but the orebodies need Franco-Nevada is a royalty my commitment with more shown that mining has been collaborative research arm to be discovered first. For the company and is among new than C$100 million in research geologically more restricted of the generously-named next 20 years, this will be our business models in the mining funding and it is now (2021) and is getting less efficient Harquail School of Earth industry’s greatest challenge. business, recognised by mid-way into a project called at greenfield exploration. Sciences. Why Laurentian and generalist investors as “the Metal Earth that aims to Brownfield exploration has Sudbury? It is a university gold investment that works” or improve greenfield targeting. been a temporary solution, that is in a “mining camp” as “a gold ETF on steroids.” It These large collaborative but is delivering increasingly connected to a cluster of has also partnered with mining science projects are more diminishing returns. The industry and government to provide capital on terms appropriate for government need for renewed greenfield research activities. It is one that are less-dilutive, less- and academia to fund, but exploration is inevitable. of the largest exploration- invasive and more permanent the opportunity is there for focused, hard-rock geology than other forms of capital. industry to leverage this work.

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Investors and the broader public have higher expectations 20 | 16 for corporates, and the response to unmet expectations is now fast and furious.

MIKE HENRY also pulled together a returns will be less defined by action. I’ve been clear on 1 BHP Resources Strategy laying out a demand-driven super cycle, wanting to increase our (formerly BHP-Billiton) the opportunities for resources and more by companies that options to grow further in and the advantages Australia demonstrate year-in-year- future-facing commodities When I moved to Australia in wanted to create. out operational excellence, – copper, nickel and potash 1999, it was an exciting time continuous improvement, foremost among them. Heading into the China in mining. Consolidation was competitive advantage boom, there was particular The growth over the past 20 seeing smaller players fall through technology and higher opportunity to grow value years in focus on issues such by the wayside and bigger margins. via increased production. As as climate change, indigenous players taking increased stakes the following 15 years played Without a doubt, over the cultural heritage, water in assets they held. Some out, it was hard to get things next 10 to 30 years there will stewardship, biodiversity Australian companies had wrong in resources. Some be some commodities that and community engagement become, or were becoming, companies made more mis- will be winners and some has created new challenges multi-national in nature (for steps than others, but if you commodities where the risks (and opportunities) for example, the CRA-RIO merger were in the industry and in the are skewed to the downside. mining. Investors and the in 1995), and in 2001 BHP right commodities, you were Ensuring you’ve got the right broader public have higher merged with Billiton plc. It was most likely going to do well. exposures in your portfolio expectations for corporates, a dynamic period. As a result of this environment, and that you’re leveraged to and the response to unmet It would be easy to look at there was less focus on the bigger trends unfolding expectations is now fast and mining then and now, and strategic differentiation around us will be important as furious. question whether much has between companies. well. The growing public changed. Indigenous rights and The challenges ahead will be BHP analysis indicates that commitment to operating heritage, and climate change different in respect of where as the world takes more responsibly should be were already well on BHP’s the value opportunities lie. aggressive action on climate welcomed. However, the agenda. There was a big focus change, a number of the faster that alignment on on the environment. In late With China’s growth (while commodities we produce expectations and standards 1998, the Federal Government still significant) slowing, stand to benefit from this can be achieved, the better.

1.  In 1998, the Australian Federal Government released a Resources Policy Statement that provided a strategic framework for the nation’s minerals and petroleum sectors to set world standards of performance to maximise investment and competitiveness.

62 In today’s rapidly-evolving more.” It’s seen as somewhat than it did in the past 30 years. improve living standards and I believe there will be a natural environment, there are many of a trade-off between So, commodity production will – importantly – the energy advantage that accrues individual positions being creating value for shareholders need to continue to grow. transition, we will need even towards large, sophisticated taken, that – given enough versus generating value for more production of resources. companies that demonstrate At the same time, the rate of time – will trend towards the everybody else. the technical and cultural discovery and development of This needs to be achieved in right ESG solutions, but the capability required to meet That’s a limiting concept large new deposits is declining. the face of an increasingly reality is that on some issues these challenges. and approach to leadership. When they are found, it’s complex and dynamic the world doesn’t have enough Companies able to think about harder to get projects up and operating environment. time to learn just through trial generating mutual value for running than it was in the past, and error. all can create outstanding and often the deposits are For instance, divestment of shareholder returns and deeper or lower-grade, posing companies that hold fossil outcomes for stakeholders further challenges. fuels could simply drive beyond the shareholder base. Globally, we are also seeing unsustainable assets off grid That tension will give rise to increasing expectations and into the hands of those new ways of doing business for the industry and faster who are less committed to and allow us to grow the total convergence between ESG and transparency. contribution a company can jurisdictions than in the past. For companies to operate make to society beyond the Companies that can overcome effectively against this ways we have traditionally the technical challenges, backdrop, maintain focused on. and have an approach to support from their broader But for the world to achieve its leadership and engagement stakeholders and continue ambition of addressing climate that allows them to navigate to secure opportunities and change, continue to grow the the complex stakeholder create value, they must be led global economy and lift living dynamics, and have a superior in different ways and relate standards, it requires a greater track record on ESG and the differently to those around commodity-intensive effort way they go about dealing them than in the past. than most people recognise. with it, will be the winners in The concept of licence the coming two decades. For example, in a Paris-aligned, to operate implies doing 1.5 degree scenario, the world Commodities are essential what’s necessary to maintain will need twice as much for the functioning of the support, with the possible copper and four times as much world – full stop. To achieve connotation being “but no nickel over the next 30 years ongoing economic growth,

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It has become clear that social licence to operate 20 | 16 and ESG are no longer separate issues for investors – they must be also London 2017 integrated into business strategies and plans.

in technology that are cultivate and ensure best- can be done sustainably, and GRAHAM KERR contributing to a safe, cleaner practice. Societal expectations in a way that enriches people’s South32 and more productive industry. continue to evolve at a rapid lives for the long-term. rate and it’s critical that we Even as we see huge leaps That’s why the industry has At South32, we have had a keep pace. forward, there are still a responsibility to continue clear purpose since day one incidents that set mining back. Through mining, I’ve been talking about the benefits it and that’s to make a difference The Samarco and Brumadinho fortunate to have worked delivers. Raising awareness by developing natural tailings dam collapses in around the globe, witnessing about the end-uses of mined resources, improving people’s Brazil, each causing multiple first-hand how mining can commodities is critical – these lives now and for generations fatalities, were unacceptable impact people’s lives for the resources are in the cars we to come. We are trusted by and put mining on the back better. I was fortunate to work drive, the houses we live in our owners and partners to foot, as did the destruction at at the Ekati diamond mine in and the technology we use realise the potential of their Juukan Gorge. These events Canada’s Northwest Territories to communicate. They play a resources. When mining is overshadow some of the great when it was being built, and critical role in life today and done well, it provides great work carried out in mining and later I managed the business. we need to demonstrate that opportunities and helps to lift show we’ve still got a lot of It operated in a pristine when we produce minerals people out of poverty. work to do as an industry. environment and we hired and metals in a sustainable, Mining has evolved in many people from the First Nations carbon-friendly way, with We must learn from these ways in the past few decades community that was struggling minimal impact, it’s good for events as we plan for the and so, too, has the way we with significant social issues. the world. future, ensuring safety engage with the people and remains at the core of Ten to 15 years into the mine Looking to the future, the communities in the places everything we do, while at life, children of those first mining industry must engage where we operate. I expect to the same time working to people hired returned to the differently. Miners need to see that evolution continuing protect our environment for communities, having been demonstrate through the as we move towards a greener, future generations. We must sponsored through school value chain how they make a low-carbon future. We’ve collaborate to set global, and university. That’s the real positive impact. In the past, already seen huge advances industry-wide standards to difference mining makes – it the focus was on issues such

64 as education, water supply At South32, it comes back to are no longer separate issues growth projects to be carbon- bit that may become the mines and community support. Now, our purpose. We’ve worked for investors – they must neutral and use low-carbon of the future. Australia needs there’s scrutiny of the whole hard to earn the trust of our be integrated into business technology. Already, we are to be globally competitive to value chain – from greenhouse communities, governments, strategies and plans. This seeing the cost of renewables attract exploration dollars. gas emissions, to product customers, shareholders and focus and transparency will decreasing at an exponential Governments must support stewardship and modern people. We don’t ever take that only increase into the future. rate and the technology investment in mining, ensure slavery impacts that may enter trust for granted and we are for batteries is also rapidly fiscal stability, a competitive At South32, our strategy the supply chain. It’s more committed to engaging with all evolving. Batteries will develop tax regime and title tenure is based around the global multi-dimensional than five, our stakeholders. to become smaller and more to foster the environment for transition to a low-carbon 10 or 15 years ago. powerful over time. ongoing investment. Shareholders are now future. We are reshaping The way the mining industry expecting more from our portfolio to have a bias The world needs commodities Mining is an essential part engages has already changed companies at an ESG level, towards base metals which will and our industry must of our future, and I believe significantly. There’s greater from how mining benefits be in even greater demand in continue to invest in when done well, it can deliver transparency, greater alignment local communities, to climate greener economies. We are exploration to ensure future prosperity and opportunities with ICMM principles guiding change and emission targets. focused on decarbonising our supply. South32 has a pipeline to many. what we do, and granular It has become clear that social existing operations, securing of opportunities we are detail around mine standards. licence to operate and ESG green energy and designing investing in through the drill

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. . . we must imbed and fully integrate social value creation 20 | 17 into our culture and capital allocation framework.

What do I mean by social value? I am proud of the work that we These steps are part of a have done at Antofagasta so broader, long-term plan to IVÁN ARRIAGADA For Antofagasta, social value far to advance our contribution ensure our mines and the way Antofagasta is delivered through our to social value. We are in which we operate them purpose – to develop mining Our industry has changed a continuously developing talent create true social value for all for a better future. This means lot in the past 20 years. When and increasing the diversity our stakeholders. recognising that to gain I first joined the industry, of our workforce, particularly legitimacy, mining needs to Our commitment to value success was almost solely as it relates to female move in step with societal creation is strongly intertwined dependent on the quality and participation and bringing in expectations on critical issues with where we operate – Chile. quantity of the orebody, with the next generation through such as responsible sourcing, The growth of the mining a small fraction depending on our apprenticeship and supply chain integrity, industry in Chile has been sustainability-related issues graduate programs. We are protection of human rights and led by copper, especially in including relationships with redoubling our efforts to work environmental stewardship. the earlier years, and is today host communities. with the communities near still integral to the nation’s This ensures that we are where we operate, including Today, that has changed, prosperity, representing operating in a way that partnering with them on with much of the change 10-12 percent of GDP and benefits all stakeholders, heritage protection initiatives, taking place over the last accounting for about 50 especially the communities community development decade. For the mining percent of exports. near our operations. It also projects and their participation industry to be a trusted means that we should no in development plans. In 2020, The revenue generated from and sustainable industry, its longer think about a social we committed to adopting the mining and related activities legitimacy depends on the licence to operate, as if this Copper Mark standard as a over the years has made an ability to create social value gets granted and then we further step in demonstrating important contribution to for its various stakeholders can continue as we want, but that our copper has been funding essential services alongside financial value for its instead we must imbed and produced responsibly. in Chile such as education, shareholders. fully integrate social value health care and infrastructure, creation into our culture and and has helped Chile develop capital allocation framework. from an emerging market to a member of the OECD.

66 During the pandemic, our and by working towards its boardrooms, and address With this need comes We must continue to work industry’s contribution has goal of responsibly producing climate issues head on. responsibility. What happens closely together to share been important in assisting the “green copper” from now, and how we behave, our innovative thinking, A recent World Bank study Chilean Government in saving renewable energy sources. is key to the future of the entrepreneurial spirit and set out that the global move lives and protecting livelihoods success and acceptability of safety-first attitude (which has This role is fundamental – right to renewables will increase as it has continued to operate our industry. come to define our industry) now – for Chile and the mining demand for many metals safely throughout the period. as we look to apply those industry. As with many of my including copper; a metal We need to be both flexible skills and our knowledge to Climate change is another vital peers, I feel the urgency to act which is essential to the and resilient. We have an the challenges of our time, challenge for which Chile is on the issue of climate change construction of wind farms, opportunity to build a and help the world transition taking leadership, targeting and I know that this sentiment solar panels and electric strong societal foundation quickly and responsibly to a zero carbon emissions by is a collective one, shared by vehicles – all of which require based on the global need low-carbon reality. 2050. The country is investing many globally. significantly more copper than for copper, making sure to heavily in renewable energy, their conventional alternatives. balance the financial, social Beyond taking responsibility electro-mobility and hydrogen As such, the copper industry and environmental impacts for our own emissions research solutions, among is a key enabler for the low- with our stakeholders, and and water use (things that others. And the Chilean carbon economy and vital at the same time have the society expects of us), we copper industry is responding for this fight against climate governance and transparent as an industry need to look by providing the world with a change. structures necessary to beyond our own borders and third of the copper it requires support us.

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Arguably, we are in prime position to lead all sectors in 20 | 18 the minimisation of our operational footprints, our carbon emissions and the way we work with people . . .

The safety of people is non- What has protected us so mineral resource. It is an industry ANDREW COLE negotiable. This is not unique far has also morphed into that has a significant footprint on OZ Minerals to OZ Minerals – nearly every something that discourages people and the planet. resource company would agility and discretionary For us, this means a big In our world of constant hold this to be THE priority effort; that encourages responsibility and an equally change, a resource company amongst all others. herd mentality rather than big opportunity for our work cannot stand still. independent thinking, as we In pursuit of safety and to make a positive impact are in constant vigil about We cannot choose to ignore all measuring outcomes, a beyond just maximising making mistakes and being that is evolving around us nor compliance bureaucracy today’s share price. non-compliant. the growing demands being of quite some complexity Arguably, we are in prime placed on us. has been created; a robust, That is not to say that compliance position to lead all sectors complicated approach should be completely done away We need transformational in the minimisation of our motivated by our pursuit of with. However, people need to change to be successful operational footprints, our zero harm. be allowed the space to own and use strategies that are carbon emissions and the way their work, challenge existing different to those used over This has been the solution we work with people, given practices, find better ways to the past few decades – moving to safeguard people in the our technical nous and ability do things and make mistakes beyond just reacting to challenging conditions in to determine how inclusive we to learn, and demonstrate the threats and instead, seeing which we operate – and we got are in going about what we do. true (not just financial) value opportunities to get ahead very good at it as an industry. that resource companies can We see this as our way of compliance and create While this has helped to generate. forward. This cannot be done our own agenda that not significantly reduce workplace through regulation. only respects stakeholder Mining has traditionally been injuries, it came with the price expectations, but creates value deemed a “necessary evil” We see our chance to enable of being consumed by our for all of them. – an industry that generates transformative change in own – often self-imposed – economic benefit, but also one responsible consumption and For OZ Minerals, being a regulations, policies, standards that damages our environment production, quality education, modern mining company is and procedures, and being and uses people as tools to economic growth and key to realising this. trapped in a “compliance exploit our primary assets – the improving people’s lives. mindset.”

68 We at OZ Minerals Our purpose – going beyond predominantly mine copper, what’s possible to make lives an important mineral for the better – reflects our belief that renewables industry and the our work into the future needs future of our planet. We are to be about contributing to also implementing renewable society through innovation, energy in our operations. commitment to a healthy environment and generating We aspire towards minimising economic opportunity for all. water use and adding value when we do, emitting zero We are on a journey of Scope 1 emissions and working towards our purpose. systemically reducing Scope It is complex. It requires 2 & 3 emissions across our iteration, dedication and value chain, and consuming commitment, and is built on and producing in a way that organisational culture – not generates zero net waste and regulations, policies, standards creates value for ALL our and procedures. But we stakeholders. recognise that it is the daily and incremental changes, and We prioritise sustainable local challenging ourselves to do procurement and employment, better each and every day, that and our social contribution will help to make a difference. programs seek to build enduring partnerships that are aligned with, and supportive of, community aspirations. We help create sustainable local businesses, and train people to build collective capability. We are also committed to working with land-connected peoples in protecting their culture and heritage.

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The business sector is in a privileged position to take the lead and tackle 20 | 19 the challenges associated with climate change . . .

and saw an opportunity our strong contribution to the looks to a low carbon future, for Fortescue to supply the West Australian and national we need to ensure Australia growing demand for iron ore. economy. capitalises on the opportunities Today, Australia’s resource from renewable energy. ELIZABETH GAINES Australia’s trading success is sector is the powerhouse Fortescue Metals Group built on strong partnerships In 2020, Fortescue announced of our economy. However, and now, more than ever, it is an industry leading target Firstly, congratulations to this hasn’t come without important that we maintain to be net zero operational the Melbourne Mining Club challenges. good relations with existing emissions by 2040, for achieving this impressive Fast forward to 2020, and trade markets. underpinned by a pathway milestone. Twenty years is a I think we would all agree, to decarbonisation through significant accomplishment for Business must continue to it was a year like no other, practical initiatives. a renowned organisation that influence the critical policy and one we hope we never has been a strong advocate debates that will impact Further to investing in our have to experience again. for the Australian resources our future success, and the operations, we are progressing I’ve been particularly proud sector. most critical of these is our with plans to develop of our industry’s response Australia-China relationship. hydrogen technologies, Fortescue’s journey dates to COVID-19, and when I say building on our existing supply back 17 years, when our “industry,” I mean that in the While COVID-19 has presented chain capabilities to position Founder and Chairman Dr broadest possible sense – our a range of challenges and Australia at the forefront of Andrew Forrest AO started contractors, suppliers, local uncertainties in 2020 (and the establishment of a bulk the company. During this businesses and communities. into 2021), we cannot lose export market for hydrogen time, we have discovered sight of broader issues that we We banded together to and meeting the needs of and developed major iron must address, and at the top manage industry-wide issues, key prospective markets like ore deposits and constructed of that list is climate change. we shared best practice, we Japan, Korea and China. some of the most globally The United Nations has said cared for our most vulnerable significant mines, establishing that this is a critical decade for Hydrogen is just one and we formed a united front. ourselves as a world class emissions reductions. example of how we can build company. Significantly, we clearly partnerships and trading The business sector is in a demonstrated that Australia relationships that can open From the outset, Andrew privileged position to take the is a reliable supplier of new opportunities and markets recognised that China was lead and tackle the challenges commodities to global as our economy grows over preparing for huge growth associated with climate markets and we sustained the next 20 years. change, and as the world

70 Fortescue was founded with workforce, this shouldn’t about generational change regions, and improved Our success will be built the belief that communities come at the risk of jobs. through training, employment work/life balance for families, on relationships – with our should benefit from our At Fortescue, we have and business development to name a few. communities, traditional success, and empowering successfully rolled out opportunities. By continuing custodians, customers, team The mining industry has long thriving communities is part of autonomous haulage across to work in partnership with members and shareholders. contributed to our regional our DNA. our operations, and this our Native Title partners, As we look ahead, we will communities, but for our project has seen 3,000 people we will build on our track be guided by our values and I believe training and regions to thrive and attract trained in autonomy – from record of providing economic our unwavering focus on education are the building individuals and families from driving in autonomous zones, opportunity to Aboriginal safety and family, and we will blocks to driving sustainable our cities, we need to see through to managing our people. continue to work closely with change in people’s lives, significant investment in our mine control systems. And our industry peers. careers and communities and COVID-19 has brought home regional communities such as every team member who was as we move forward, there is a the benefits of working public transport infrastructure. Once again, my sincere impacted by the introduction significant opportunity to train flexibly and remotely, and the congratulations to the of autonomy was offered We should be excited about our people with the breadth significant opportunity for Melbourne Mining Club for the opportunity to upskill the opportunities for the and depth of skills our future people to have a city job, while their 20-year milestone. Here’s themselves to take on new mining industry to lead. By economy needs. living in the country. And the to 20 more! roles within the company. keeping our values at the heart benefits are considerable – While technology and of everything we do, we will From the outset, it has de-congested cities, increased automation will be an continue to ensure the safety been our vision to empower population and vibrancy of our important part of our future of our people. Aboriginal people to bring

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Failure to invest and innovate to meet the demands of clean 20 | 20 energy markets, whether for renewable energy applications or electric vehicles, could incentivise substitution.

demand combined with under- vehicle (EV) batteries could of exploration, to view it investment in exploration and incentivise EV manufacturers through the same lens that PETER BRADFORD discovery and development to accelerate R&D efforts to investors in the pharmaceutical IGO over recent decades, is likely to design new types of batteries sector view R&D. create a super cycle of under- and find a different way of Over recent decades, the supply and elevated pricing manufacturing them without These investors understand improvements in mining not imagined until recently. the traditional commodities. the risk of taking a new technology and economies Alternatively, the lack of drug from R&D through to of scale have allowed mining This dynamic will likely act supply and higher prices commercialisation, and the production to expand as a catalyst for increased will significantly hamper the significant reward that is significantly. However, grade exploration and discovery, as adoption of new technologies available should a company be profiles have fallen, and well as innovation across all to the point where targeted successful. Exploration in the investment in exploration and aspects of the supply chain decarbonisation milestones mining industry is no different, discovery to replace reserves to explore deeper, under won’t be reached. and is vital if the industry is to has not identified the future cover and at lower cost, to deliver the mines of the future. supply necessary to meet ever- rethink mining and processing The root of these issues stems increasing demand for metals to reduce our footprint, from lack of investment by the Our industry’s under- due to the increasing global and to unlock opportunities mining industry. Many mining investment in exploration and population, the development to combine upstream and companies have prioritised discovery over recent years of emerging economies downstream processing brownfield expansions to has arisen due to a short-term and – most recently – the activities to increase efficiency, tap into existing resources, perspective on the allocation acceleration of the global reduce waste and create more while neglecting the critical of capital for the mid- to large- transition towards clean energy value. investments required in size mining companies, and an in the face of climate change. greenfield and generative inability (until very recently) Failure to invest and innovate exploration. In many ways, for the juniors, who have Decarbonisation and the to meet the demands of clean this is understandable given traditionally driven much of transition to clean energy energy markets, whether for investment markets have the entrepreneurial exploration will be highly disruptive, with renewable energy applications demonstrated little appetite activity, to attract investment both being winners and losers. or electric vehicles, could for this type of exploration capital. The key then is for the For those metals critical incentivise substitution. For activity, and instead favour mid-tiers – who have largely to enabling clean energy, instance, under-supply of those lower-risk brownfield activity; ignored exploration (greenfield disruptive, increasing metals critical to electric perhaps if investors shift their exploration in particular) in perception favour of focusing on mining

72 deeper within existing deposits it would be re-dissolved and From an ESG perspective, and brownfield drilling around then re-crystallised to make mining today is undoubtedly these deposits until they cathode precursor chemicals, doing a far better job than become more marginal – to lift liquid nickel sulphate solution 10, 20 or 40 years ago. their game. could be pumped over the What we are yet to do well fence to a co-located cathode is successfully communicate The other key opportunity precursor process. This more- to society the importance for our industry is to do more integrated, end-to-end process of mining, how well mining than simply mine; to unlock would potentially unlock is conducted today, and the greater value via vertical greater value. degree to which our impact on integration. Currently, each people, communities and the stage of mining and processing Why wouldn’t people do this? environment is reduced as well tries to find a neat book-end It’s all about where the markets as the immense efforts mining at which to transfer product are, whether it makes more companies are making to to the next stage in the supply sense to ship nickel sulphate ensure their licence to operate. chain. The big opportunity rather than make cathode is for industry to leverage its precursors in Australia and ship The proposition around strengths in innovation to find those. There are perceptions decarbonisation, metals for ways to make our industry of what miners are good at EVs and new-generation more efficient by thinking and versus what are downstream batteries allows us the acting as part of an integrated processors’ capabilities. And opportunity for a “brand manufacturing stream. there are market perceptions refresh” to capitalise on our that pigeon-hole the respective good work and deliver a totally We recently did this at a micro- capabilities of different different value proposition to level to assess converting jurisdictions. society. nickel sulphide concentrate into battery-grade nickel Australia has the potential to The way to do this, is for sulphate, thereby removing become a more complex and mining companies nationally the requirement for 2-3 stages therefore sustainable nation and globally to get with the of processing (ie smelting, by moving away from the “dig same program; to better refining and then conversion to it and ship it” mentality and articulate mining’s value battery-grade nickel sulphate). move downstream to unlock proposition – why mining is By itself, this innovation is a greater value for Australia from important –and ensure that great step forward, but could our resources. The risk is that contribution is understood. be taken further. if we don’t, we will not have Mining needs to be, and needs the economic diversification to to be seen to be, a part of the Rather than crystallising a sustain our way of life when the solution, not the problem. battery-grade nickel sulphate resources ultimately run out. product in a solid form for shipment to market, where

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The biggest change in recent years, and certainly into the future, 20 | 21 is the growing importance of ESG matters to investors, governments, also 2017 communities and civil society.

Unfortunately, our industry is devastated by these, as safe, through to automation, judged by the lowest common were all people at Newcrest artificial intelligence, ground- SANDEEP BISWAS denominator. It doesn’t matter with, of course, the deepest control systems and safe Newcrest Mining what our record is on average; devastation experienced by design to name just a few the poorer examples – safety the families and friends of areas. Collaboration between One of the things that drives or otherwise – always drag those who died. Things had to industry players will be me relentlessly as an individual the whole industry down and change in order for there to a key enabler of faster and, by definition, Newcrest is attract commentary and media be no more fatalities, and our implementation of these the safety of our people. coverage. safety transformation plan was technologies. Mining has come a long way formulated. Now we’re close to Now the industry is moving The biggest change in recent since my earliest working six years fatality-free. forward together to take on years, and certainly into days at Mt Isa. Safety was this challenge. I am pleased This safer workplace flows the future, is the growing always mentioned, but not to see that the International from our NewSafe program, importance of ESG matters to today’s extent. With the Council on Mining & Metals, which focuses on cultural to investors, governments, word “safety” now comes the World Gold Council, the change, team ownership and communities and civil society. genuine care, concern, and Minerals Council of Australia building safety leadership at all work systems and processes With the benefit of hindsight, and other institutions have levels. It is the best behaviour- that really dig deep – whether mining has not moved as safety firmly on their agendas, based safety program I’ve it’s a behavioural system, quickly as it could have to focusing on the key things seen in 40 years of mining. standard-of-work system or embrace the challenge of they want to work on and It’s also driven by our Critical process safety (which mining greenhouse gas emissions. enabling sharing of what has Controls program and our has adopted from the oil and Decarbonisation imperatives successfully worked for the Process safety program. chemical industries). were not fully appreciated and industry. Technology has played a mining was caught relatively As an industry, we have Before I joined Newcrest, there big part in safety and will unprepared. As an industry, suffered in the past because was on average one fatality play an even bigger role in we’re now playing catch-up, we haven’t moved uniformly a year, and four fatalities all areas – from systems for and we are doing so at speed. across all geographies occurred over a 21-month monitoring people’s health in pursuit of safety. period after I arrived. I was and fatigue to keep them

74 For example, at Newcrest, our of on-site emissions that are We want people in mining from different genders, ethnic, We’re under high scrutiny – Cadia site is one of the largest predominantly diesel-fuel for the right reasons. We socio-economic and cultural locally and globally. There are coal-fired electricity consumers based. need to say “come and join backgrounds. many good things we do. We in New South Wales. We have us” – we have the intent, have a great story and we do A further challenge is Societal expectations and recently entered into a power will and resources to make add value. We’ve got to work attracting the right people. social licence mean there’s purchase agreement which, meaningful changes in areas harder at doing things better We need the best people far more demand – as there when coupled with anticipated vital to younger generations. and communicating them so right from the front line – from should be – in terms of decarbonisation of electricity The new generations, and not that the world at large can among graduates and all levels contributions we make to generation in the State, is only them, want purpose: it’s truly appreciate how much of the industry – to make this develop local communities, expected to reduce our total not about a job but a greater good comes from our industry. a reality. their education standards and energy intensity per tonne of purpose. their countries. Ultimately, ore treated by about 20 per All aspects of the mining As an industry insider, I think we must deliver shareholder cent. Fossil fuels will continue business are high tech and can we tick all the boxes for any returns, but how we do it is as part of the power supply, but offer people rewarding careers young person with a purpose increasingly important. our ultimate goal is to power across multiple disciplines. to make a difference, but we Cadia from renewable sources. While historically we haven’t have to earn their trust. I see marketed this well and we The advantages also are that signs that this is changing made short-term decisions technology is catching up and younger generations such as cutting back on on our expectations. Once increasingly want to be a part graduate and apprenticeship battery technology becomes of mining to make a difference. intakes during downturns, we economically viable at scale, recognise that we must now Part of the talent search we will be able to increasingly adopt a significantly different embodies securing diversity utilise solar and wind power approach. of thought, opinions and without the need for a fossil-fuel ideas to generate innovations firming power. We must be far more strategic and creativity to carry the in our thinking to attract and We can now technically convert industry forward. Inclusion engage young minds to lead us all our vehicles to non-diesel is the priority in getting that forward. Automation can take power – it’s just a question of diversity of thought – only us only so far. We need core duration and economic viability through genuine inclusion technological and technical of battery pack lives. At our comes genuine diversity. We skills, and we need the right Red Chris mine in Canada, need people from all walks people joining our industry the major power source is of life, technical and non- and across management and hydro-electricity, which means technical, creative, numerate, technical ranks. our focus can be reduction

75 20 + 20 Keynote Speakers – Melbourne

2001 2005 2009 August WMC, Chairman, Sir Arvi Parbo AC February Minara Resources, Managing Director & CEO, February Fortescue Metals Group, CEO, Andrew Forrest AO Peter Johnston October Rio Tinto Australia, Managing Director, April Federal Minister for Resources & Energy, Barry Cusack April Inco, Chairman & CEO, Scott Hand The Hon Martin Ferguson AM MP December Newcrest Mining, Chairman, Ian Johnson June Federal Minister for Industry, Tourism & Resources, June Sino Gold, President & CEO, Jake Klein The Hon Ian Macfarlane MP August Leighton Holdings, Chief Executive, Wal King 2002 August Iluka Resources, Managing Director & CEO, October 2 Newmont Mining, President & CEO, Richard O’Brien February Normandy Mining, Chairman & CEO, Mike Folwell October 22 BHP Billiton, Chairman, Don Argus AC Robert Champion de Crespigny October Falconbridge, CEO, Derek Pannell April ICMM, Secretary General, Jay Hair December The Chinese Ambassador to Australia, 2010 June WMC, CEO, Hugh Morgan AC Madam Fu Ying February Santos, Managing Director & CEO, David Knox August Rio Tinto, Chief Executive, Leigh Clifford AO April UC Rusal, CEO, Oleg Deripaska 2006 October BHP Billiton, CEO, Brian Gilbertson February Jubilee Mines, Executive Chairman, Kerry Harmanis June OZ Minerals, Managing Director & CEO, Terry Burgess December Christmas: Past, Present & Future – Panel discussion April Macarthur Coal, Managing Director, Ken Talbot August Atlas Iron, Managing Director, David Flanagan 2003 June CVRD, Executive Director of Ferrous Minerals, October Citadel Resource Group, Managing Director & CEO, José Carlos Martins Inés Scotland February MIM Holdings, Managing Director, Vince Gauci August Teck Cominco, President & CEO, Don Lindsay December Rio Tinto Iron Ore, Executive Director & Chief April Pasminco, CEO, Greig Gailey Executive, Sam Walsh AO October Barrick Gold Corporation, President & CEO, June WMC, CEO, Andrew Michelmore AO Greg Wilkins 2011 August Newmont Mining, President, Pierre Lassonde December Alcan Bauxite & Aluminium, President & CEO, February Iluka Resources, Managing Director, David Robb October Woodside Petroleum, Former CEO, John Akehurst Jacynthe Côté May BHP Billiton, Chairman, Jac Nasser AC December Gold Fields, CEO, Ian Cockerill 2007 June WesTrac, Managing Director, Jim Walker 2004 February Zinifex, Managing Director & CEO, Greig Gailey August Codelco, President & CEO, Diego Hernández February Oxiana, Managing Director, Owen Hegarty OAM May Rio Tinto, Chief Executive, Leigh Clifford AO October Bechtel Corporation, Chairman & CEO, Riley Bechtel April Newcrest Mining, Managing Director, Tony Palmer June Newcrest Mining, CEO, Ian Smith December Ivanhoe Mines, Founder and CEO, Robert Friedland June Ivanhoe Mines, Founder and Chair, Robert Friedland August Alumina, CEO, John Marlay August Alcoa and past chair London Metal Exchange, October Lihir Gold, CEO, Arthur Hood 2012 John Pizzey December Energy Resources of Australia, CEO, Chris Salisbury February Newcrest Mining, Managing Director & CEO, September Rio Tinto, Chief Executive, Leigh Clifford AO Greg Robinson 2008 November BHP Billiton, CEO, Chip Goodyear March Sandvik, President & CEO, Olof Faxander February Oxiana, Managing Director & CEO, Owen Hegarty OAM December Victorian Miners – Panel discussion July Gold Fields, CEO, Nick Holland April Zinifex, Managing Director & CEO, Andrew Michelmore AO August Minmetals Resources (MMG), CEO, Andrew Michelmore AO June BHP Billiton, CEO, Marius Kloppers October Peabody Energy, Executive Chairman, August Anglo Gold Ashanti, CEO, Mark Cutifani Gregory H. Boyce October Rio Tinto, Chief Executive, Tom Albanese December Perseus Mining, Managing Director, December All I want for Christmas – Panel discussion Mark Calderwood

76 2013 2017 February IAMGOLD Corporation, President & CEO, February Newcrest Mining, Managing Director & CEO, Steven JJ Letwin Sandeep Biswas April Orica, CEO, Ian Smith April Aurizon, Managing Director & CEO, Andrew Harding July Arrium, Managing Director & CEO, Andrew Roberts June BHP, Chief Commercial Officer, Arnoud Balhuizen August China Mining Association, Executive Vice President, August Antofagasta, CEO, Iván Arriagada Jiahua Wang October MMG, CEO, Jerry Jiao October Beach Energy, Managing Director, Reg Nelson December BHP, CEO, Andrew Mackenzie December Minerals Council of Australia, CEO, Mitch Hooke AM 2018 2014 February Orica, CEO, Alberto Calderon February CITIC Pacific, President, Jijing Zhang April Pilbara Minerals, Managing Director & CEO, April Vale, CEO, Murilo Ferreira Ken Brinsden July Worley Parsons, CEO, Andrew Wood June Oz Minerals, Managing Director & CEO, Andrew Cole August Newmont Mining, President & CEO, Gary Goldberg August Kirkland Lake Gold, President & CEO, Tony Makuch October Goldcorp, President & CEO, Chuck Jeannes November Woodside Energy, Managing Director & CEO, Peter Coleman December Northern Star Resources, Managing Director, Bill Beament December Federal Minister for Resources and Northern Australia, The Hon Matthew Canavan MP 2015 February Rio Tinto, Chief Executive, Diamonds & Minerals, 2019 Alan Davies February Shell Australia, Chair, Zoe Yujnovich April Mitsui & Co. Australia, Chair & CEO, Yasushi Takahashi May 2 Future of Mining Finance – Panel discussion June Glencore, Head of Global Coal Assets, Peter Freyberg May 30 St Barbara, Managing Director & CEO, Bob Vassie August Orica, CEO, Alberto Calderon August China Molybdenum, Executive Chairman, Steele Li October Barrick Gold Corporation, Co-President, Jim Gowans October Fortescue Metals Group, CEO, Elizabeth Gaines December OceanaGold, Managing Director & CEO, Mick Wilkes December Alumina, CEO, Mike Ferraro

2016 2020 February Franco-Nevada, President & CEO, David Harquail February IGO Ltd, Managing Director & CEO, Peter Bradford April BHP Billiton, President Operations Minerals Australia, Mike Henry 2021 March Victoria – from the inside – Panel discussion June South32, CEO, Graham Kerr April Newcrest Mining, Managing Director & CEO, August Shell Australia, Chairman, Andrew Smith Sandeep Biswas October Evolution Mining, Executive Chairman, Jake Klein July EMR Capital, Executive Chairman and Chairman, November Rio Tinto, Chief Executive, Jean-Sébastien Jacques 29Metals, Owen Hegarty OAM

77 20 + 20 Keynote Speakers – Offshore

2007 2014 London José Carlos Martins, Companhia Vale do Rio Doce (CVRD) London Mark Cutifani, Anglo American

2008 Jakarta Tony Manini, Tigers Realm Group London Marius Kloppers, BHP Billiton

2015 2009 London Sam Walsh AO, Rio Tinto London Mick Davis, Xstrata

2016 2010 London Andrew Michelmore AO, MMG London Tom Albanese, Rio Tinto

2017 Shanghai Zhou Zhongshu, China Minmetals Tom Albanese, Rio Tinto London Graham Kerr, South32

2011 2018 London Cynthia Carroll, Anglo American London Jean-Sébastien Jacques, Rio Tinto

2012 2019 London Ivan Glasenberg, Glencore International London Richard Adkerson, Freeport-McMoRan

2013 London Andrew Mackenzie, BHP Billiton

Beijing Sam Walsh AO, Rio Tinto Xiong Weiping, Chinalco

78 Cutting Edge Series

2003 2009 March Austminex, Bendigo Mining, MPI Mines March Bendigo Mining, Highlands Pacific, Scimitar Resources May Beach Petroleum, Perseverance Corporation, Sedimentary Holdings May Beaconsfield Gold, Mineral Deposits, Niplats Australia July Austindo Resources, Ballarat Goldfields, Essential Petroleum July Catalpa Resources, Minemakers, Range River Gold August Reliance Mining, Triako Resources, Australian Worldwide Exploration September Emmerson Resources, St Barbara, Toro Energy November Allegiance Mining, Indophil Resources, Range River Gold November Dragon Mining, Kentor Gold, Saracen Mineral Holdings

2004 2010 March Goldstar Resources, Lafayette Mining, MacArthur Coal March A-Cap Resources, Drummond Gold, Silver Swan Group May Beaconsfield Gold, Eastern Star Gas, Golden Cross Resources May Castlemaine Goldfields, Ironclad Mining, Rex Minerals July AIM Resources, Bass Strait Oil Company, Nexus Energy July BCD Resources, Liberty Resources, Manas Resources October Alexander Resources, Cazaly Resources, Highlands Pacific September Minotaur Resources, Molopo Energy, White Energy Company November Golden Rim Resources, Metminco, White Rock Minerals 2005 March AGD Mining, Hillgrove Resources, Tanami Gold 2011 May Copper Strike, Leviathan Resources, Straits Resources March Aura Energy, Cobar Consolidated Resources, Navarre Minerals July Gallery Gold, Stellar Resources, TasGold May Adamus Resources, Mindoro Resources, Royal Resources September Croesus Mining, Karoon Gas, Kentor Gold, Mineral Deposits July Bass Metals, Dampier Gold, Energy Ventures November Indophil Resources, Panaegis Gold Mines, Purus Energy September Blackthorn Resources, Encounter Resources, Queensland Mining Corporation November Catalyst Metals, Crusader Resources, Kimberley Metals 2006 March Alliance Resources, Heemskirk Consolidated, Image Resources 2012 May Cullen Resources, Essential Petroleum Resources, Gateway Mining March Chesser Resources, Dart Mining, King Island Scheelite July Pan Australian Resources, Range River Gold, Toro Energy May Kidman Resources, Octagonal Resources, Royalco Resources September Cobar Consolidated Resources, Stellar Resources, Tawana Resources July A1 Consolidated Gold, Gunson Resources, Tigers Realm Coal November Perseverance Corporation, Royalco Resources, SMC Gold September Ambassador Oil & Gas, Drake Resources, TBG November Sumatra Copper & Gold, Syrah Resources, Thor Mining 2007 March Ball Metals, Castlemaine Goldfields, Southern Uranium 2013 May Crescent Gold, Mosaic Oil, Panaegis Gold Mines March Heemskirk Consolidated, Oroya Mining, Robust Resources July Encounter Resources, Queensland Ores, St Barbara May Altona Mining, Orion Gold, World Titanium Resources September Copper Strike, Dart Mining, Mutiny Gold July Potash West, Stanmore Coal, Unity Mining November Citigold Corporation, Pluton Resources, Rex Minerals September DSDBI (Victorian Government), MinEx, Navarre Minerals November Lakes Oil, FAR, Middle Island 2008 March Albidon Resources, Indophil Resources, Tectonic Resources 2014 May Metminco, Regis Resources, Silver Lake Resources March Centrex Metals, Image Resources, Sovereign Gold July Mineral Sands, Reed Resources, Rey Resources May Anchor Resources, Rimfire Pacific, Reward Minerals September Citadel Resources Group, Heemskirk Consolidated, Stellar Resources July GeoPacifc Resources, OceanaGold, Petrel Energy November GBM Resources, Hot Rock, Synergy Metals September Karoon Gas, Metals of Africa, Stavely Minerals November Emmerson Resources, Minotaur Resources, Western Areas

79 20 + 20 Cutting Edge Series

2015 2018 March Aurelia Metals, Highlands Pacific, Panoramic Resources March Lithium Power International, Macphersons Resources, New Century Resources May Toro Energy, Wolf Minerals, Marenica Energy May Image Resources, Nagambie Resources, Renascor Resources July African Energy, Avalon Minerals, Rex Minerals July Cassini Resources, Kasbah Resources, West Wits Mining September Metalicity, Metro Mining, Ramelius Resources September Kin Mining, Sheffield Resources, Sipa Resources November Independence Group, Alligator Energy, Highfield Resources October Chalice Gold Mines, Heron Resources, Ramelius Resources

2016 2019 March FAR, Havilah Resources, Silver Lake Resources March Golden Rim Resources, Kalamazoo Resources, Kalium Lakes May Doray Minerals, CleanTeq Holdings, St Barbara May Bellevue Gold, Prodigy Gold, Speciality Metals, Xanadu Mines July Vimy Resources, Orocobre, Kidman Resources July Boss Resources, Carawine Resources, Gold Road Resources September Mineral Deposits, Black Rock Mining, Broken Hill Prospecting September King Island Scheelite, Nickel Mines, Peel Mining November Brockman Mining, Magnetic Resources, Troy Resources November Rex Minerals, Superior Lake Resources, White Rock Minerals

2017 2021 March White Rock Minerals, Aurelia Metals, Cooper Energy March Red River Resources, Lion Selection Group, Stavely Minerals May Mandalay Resources, Navarre Minerals, Geological Survey of Victoria May Jervois Mining, Aura Energy, North Stawell Minerals July Geo Pacific Resources, Egan Street Resources, Verdant Minerals July Investigator Resources, Kirkland Lake Gold, Red 5 September Alderan Resources, Antipa Minerals, Stavely Minerals November Nusantara Resources, Kirkland Lake Gold, Red River Resources

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