Mining leaders reap rewards of long-term vision
Content by The Buzz Business
11 Mining
Mining leaders reap rewards of long-term vision
For those mining companies that continued to invest in innovation , sustainability and community relations despite the apparent end of the commodity supercycle , 2016 was a year of vindication . Buoyed by the support of national governments and local stakeholders , the world ’ s leading miners were able to successfully restructure many of their operations and deploy new technologies to deliver ever higher levels of productivity .
At the beginning of 2017 , after an unexpected rebound in metals prices over the last few months , it is the world ’ s most innovative and most sustainable miners who now stand to benefit the most .
The risk for us today is that we take our foot off the pedal . You cannot be complacent .” Mark Cutifani , CEO , Anglo American
“ Our optimism was not misplaced ,” says Mark Cutifani , CEO of mining giant Anglo American , whose share price rose by around 300 % over the course of 2016 . “ There will always be more to do , but it is clear that people ’ s confidence in the underlying quality of the business is improving .”
Investment in innovation has been at the heart of the company ’ s turnaround . Although Anglo American has sold over
Goldcorp supports diversity and equal opportunities
one-third of its mining assets , it has been able to increase its overall production volumes , partly thanks to technological innovations . “ On a product-per-person basis , we
are producing about 38 % more each year , compared with 2012 ,” Cutifani says . “ To replicate that improvement in the next five years , technology will be the key .”
The focus on technology and productivity is also delivering environmental benefits . One of the main priorities at Anglo American is to develop a so-called waterless mine , a mine that only uses recycled water , drawing no freshwater at all . From taking relatively simple steps such as minimizing evaporation at company dams , to testing new processing technologies for separating mineral ore from rock , company researchers are working with partners to develop innovative processes that conserve and even eliminate the use of freshly drawn water .
Automation and robotics also have a part to play in improving safety , precision and productivity at mines . At ArcelorMittal Mining , scientists in laboratories in France and Spain are researching ways of using drones to increase the safety
of core mining processes such as stockpile management and ore transport by rail and ship . “ Our R & D facilities are very strong ,” CEO Simon Wandke says . “ We have not cut funding , and they create an enormous amount of value for us .”
At the same time , miners are also very sensitive to the possible impact of automation on local employment . “ You have to think three-dimensionally in any of these issues and take into account the social impact as part of the solution ,” Cutifani says . “ If you do not have a partnership with local communities , then you can probably add 10-15 % to your cost base . Community engagement is imperative . We always ask the community what they would like the future to be for their children and how we could play a role in creating that future .”
Positive community relations can be a major source of advantage in today ’ s mining industry . When Canadian gold producer Goldcorp first began looking at the Coffee Gold project in Yukon , it was the excellent relationships that the owners had developed with local authorities and First Nation governments that caught their eye . Goldcorp paid approximately $ 390 million for the mine in 2016 , surprising other miners by the speed at which it moved to acquire the asset .
“ While the project economics certainly caught our interest , it
From left : Simon Wandke , CEO , ArcelorMittal Mining ; Elaine Dorward-King , Executive VP , Sustainability and External Relations , Newmont Mining Corporation ; Brent Bergeron , Executive VP Corporate Affairs and Sustainability , Goldcorp ; Mark Cutifani , CEO , Anglo American
was the strong foundation in sustainability , and an ability to drive that forward , that really solidified our commitment in this project ,” says Brent Bergeron , executive vice president of corporate affairs and sustainability .
Goldcorp is now building on its experience of working closely with indigenous peoples and local communities in Canada to help its expansion in international markets . In Argentina , where the company ’ s
Robotics allow mines to operate more efficiently 24 hours a day and create safer work environments .” Brent Bergeron , Executive VP Corporate Affairs and Sustainability , Goldcorp
Cerro Negro mine is in its second year of production , Goldcorp is working to embed the Towards Sustainable Mining standard of the Mining Association of Canada in Argentina ’ s own mining industry . “ This shows how the experience that we have here in Canada — whether it ’ s working with First Nations , the environment or any other part of the sustainability equation — is transferrable to other countries ,” Bergeron says .