CSIRO MINERALS RESEARCH PROGRAM

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CSIRO MINERALS RESEARCH PROGRAM

• MANAGERS MEETING
• MONASH CLUB
• THURSDAY 13TH FEBRUARY, 2003
• ROLE OF A PROFESSIONAL INSTITUTE
• IN 2003
• IN THE MINERALS INDUSTRY 
• Don Larkin, M AusIMM Chief
  Executive Officer The AusIMM

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THE AUSIMM

• Established 6 April, 1893
• Incorporated Under Royal Charter, 1955
• Represents
• Learned Society CPD
• Fraternity
• Allen Review 1999
• Revitalisaton

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The AusIMM Membership Bucket

• Expand base
• International
• Energy
• Mergers/links with like associations

• Providing a better product services
• CP
• Codes
• CPD
• Brand

• Branches
• Societies
• Chapters

• Possibly
• Reduce barriers to entry
• Streamline process

Total Market - Minerals Industry
Perception of Minerals Industry by community
AusIMM Membership (market penetration?)

• Aging population
• Waived
• Honorary
• Concessionals
• Retired
• Deaths

Decrease in R D
Level of exploration and competition from other
bodies
Transition from Students to Young Professionals
Company members
Company support
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Skill Needs

• Are we confident that the Minerals Industry has
  the Professional Staff capability to
  appropriately position it to meet the demands of
  tomorrow
• - Rising to the Challenge
• 2001

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Outcomes

• an increasing trend towards globalisation
• an increasing use of new technologies to reduce
  costs and increase outputs
• commodity prices continuing to fall
• the attractiveness of the industry was decreasing
• there was a lack of shared vision within the
  industry
• the prevailing culture was not conducive to
  responding effectively to the challenges
• investors with an increasing focus on short term
  returns
• an ever increasing squeeze in the capital markets
• restricted and reduced access to land
• an inability to attract and retain the required
  talent to grow the industry.

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Consensus of Observations

• The negative image of the industry constrains its
  capacity to effectively influence community and
  government.
• A major repositioning of professional staff
  competencies is required.
• Existing organizational arrangements and
  capabilities are under pressure to change.
• It will be difficult to access professional staff
  of the required capability.
• The industry is facing significant external
  challenges with a real concern about capacity to
  address them.
• The prevailing culture is not suited to the needs
  of the future.
• The fragmentation of the industry leads to a lack
  of shared vision/voice, and
• There is a need for change.

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From

• A culture, which is characterised by many good
  things
• Safe, environmentally responsible
• Pragmatic, logical, can do
• Getting things done efficiently
• .but also some elements that need to change
• Slow to adapt
• Homogenous
• Masculine, individualistic
• Reward focused, rule bound
• Turf protection

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To

• Safe, environmentally responsible
• Getting things done efficiently
• and
• Collaborative work-as one business
• Fast, flexible, global
• Inclusive/diverse
• Commercially astute, socially responsible
• Team thinking
• Open-tolerate ambiguity/alternative thinking

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STOCKTAKE CYCLICAL OR STRUCTURAL CHANGE

• Internationalisation of the Industry
• Amalgamation of Corporations
• Pressures for Sustainability
• Role of SMEs/Juniors
• Attractiveness of Industry - Careers
• - Capital

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CHALLENGES FOR AUSIMM

• Speak out - Advocacy/Representation
• - Pride
• - Engagement
• Pro-active Role for Branches and Societies
• Employer and Academic Support
• Market Penetration
• International Initiatives
• Continuing Professional Development
  Recognition
• The Brand The AusIMM

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MINERALS INDUSTRY AS AN ATTRACTIVE CAREER OPTION

• MTEC Article University Supply Side
• Industry Demand
• Upon Graduation Geoscience into Minerals
  Industry
• Employment in Exploration
• Demand for Vocational Education

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GLOBALISATION AND CONSOLIDATION

• Top 5 providers now control between 40-70 of
  global production of copper, diamond, gold,
  ironore, lead, nickel zinc
• Today 2/3 Australian gold production controlled
  by 5 companies with nearly half of production
  from 12 mines
• 70 of Australian gold production foreign owned

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GLOBALISATION AND CONSOLIDATION (cont)

• 1997 - 20 companies exploring Budgets gt 10m
• 16 Australian based
• 2002 - Only 5 with only 2 Australian based
• of above 16 9 no longer exist
• 1997 - 47 companies exploring budgets 1m-10m
• 2002 - 20 of these gone (including 14
  Australian)
• 1996 - Active explorers 1264
• 2001 - Active explorers 379

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