If we get the right people in the right jobs, weve won the game

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• If we get the right people in the right jobs,
  weve won the game
• - Jack Welch

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Addressing the Crisis in Talent

• MinExpo 2008
• Leigh W Freeman
• Downing Teal Inc / BitterRoot Group LLC
• SME Education Sustainability Task Force
• September 24th, 2008

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SME Education Sustainability Task Force

• Jim Taranik
• Leigh Freeman
• Lee Saperstein
• Dave Kanagy
• Mary Poulton
• Kim McCarter

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Status update

• Accepted
• The US needs to graduate 350 mining engineers
  for the next ten years to replace pending
  retirements
• There are issues with respect to retiring
  faculty
• Actions belie conclusions
• The US education system is relatively unimportant
  in the global system
• Support of education systems creates a
  competitive advantage in the war for talent

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Status update

• Accepted
• The US needs to graduate 350 mining engineers
  for the next ten years to replace pending
  retirements
• There are ISSUES with respect to retiring
  faculty
• Actions belie conclusions
• The US education system is relatively unimportant
  in the global system
• Support of education systems creates a
  competitive advantage in the war for talent

WRONG
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No company is an island
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This presentation

• Sustainable Talent is a corporate value
• Talent is a mobile, global commodity
• The supply of Talent must be addressed globally
• Immediate solution 100k per mining specialist

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Corporate values

• Values are behavioral responsibilities upon which
  civil society is based. Values transcend
  economics. Values are the foundation upon which
  corporate culture is build.
• Safety
• Sustainable development / social license

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Corporate values

• Values are behavioral responsibilities upon which
  civil society is based. Values transcend
  economics. Values are the foundation upon which
  corporate culture is build.
• Sustainable source of Talent
• Safety
• Sustainable development / social license

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Sustainable talentSustainable development/Social
license/Innovation

• Innovation and the Triple Bottom Line starts and
  ends with talent to lead and execute. To evolve.
• Sustainable talent starts and ends with
  sustainable systems to source and teach mining
  specialists
• Institutions
• Departments
• Faculty
• Students
• Our global systems are INADEQUATE and UNSTABLE

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Global talent inadequate

• Immediate and mid-term need for English (Spanish)
  speaking mining professionals. Unstable education
  programs in US, Canada, Australia, South Africa
  and Europe. Shortage of new graduates and
  mid-career professionals to replace pending
  retirees.
• Absolute CRISIS with faculty
• Mining Engineers, Economic Geologists, Extractive
  metallurgists, Project Construction Managers
• Long-term the BRIC countries will contribute
  significantly.

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This presentation

• Sustainable Talent is a corporate value
• Talent is a mobile, global commodity
• The supply of Talent must be addressed globally
• Immediate solution 100k per mining specialist

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Globalization Example Freeport McMoran-Head
Office
Head Office
Mines
Universities
Financial Centers
Consumption
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Globalization Example Freeport
McMoran-Operations
Head Office
Mines
Universities
Financial Centers
Consumption
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Globalization Example Freeport McMoran-
Financial Markets
Head Office
Mines
Universities
Financial Centers
Consumption
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Globalization Example Freeport McMoran-Customers
Head Office
Mines
Universities
Financial Centers
Consumption
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Globalization Example Freeport
McMoran-Universities
Head Office
Mines
Universities
Financial Centers
Consumption
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Talent a global commodity

• Virtually all the talent in the world is less
  than twice removed
• Common heritage universities and mentoring
  companies
• Its all about networks
• Good people know good people
• Mediocre people know mediocre people
• Poor people know poor people

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Talent Interlocking networks
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Accessing the best people
100
100
100
100
Twice removed 100x100x440,000 Top 20 1,600
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Recruiting/retaining to culture

• There is more money available to invest in the
  mining industry than good projects in which to
  invest
• There is more good projects than good people to
  staff them
• There is more good people than good companies
  with whom to work

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Debunking transformational talent
Dont take a plow horse to a horse race
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This presentation

• Sustainable Talent is a corporate value
• Talent is a mobile, global commodity
• The supply of Talent must be addressed globally
• Immediate solution 100k per mining specialist

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Needed Global leadership

• No obviously appropriate organization. Most
  organizations dealing with the issue are
  national. SME, NMA, MAC, AusIMM
• Global models
• Society of Economic Geologists (SEG)
• Sustainability related
• Global Mining Initiative (GMI)
• International Council on Mining and Metals (ICMM)
• Global Reporting Initiative (GRI)

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SEG

• Addressing global Talent
• Student Research Grants. Since 1996 has provided
  US 1.2 million to 620 grant recipients worldwide
  to support field-based, graduate student research
  projects.
• Student Field Trips. Pays 90 of the costs for
  students to attend. A total of 64 students have
  participated
• Addressing sustainable Faculty
• Graduate Student Fellowships. 10 to 20
  fellowships, ranging from 10,000 to 15,000 each.
  In 2008 18 students from 7 countries attending 13
  universities

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Needed Global leadership

• Major producing companies
• Precious and base metals
• Iron, alumina
• Industrial minerals
• Aggregates
• Service and supply organizations
• Junior mining sector

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This presentation

• Global supply of talent inadequate
• Talent shortage precludes Sustainable Mining
• Global organization necessary to address this
  problem
• Immediate solution 100k per mining specialist

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Sustainable mining rule of thumb

• The capital cost of each mining specialist
  (mining engineer, extractive metallurgist, or
  economic geologist) is 100,000.

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Sustainable Talent A simple model

• US Faculty 65 _at_ 100k/yr 6.5 million
• Support cost faculty cost 6.5 million
• Model cost US education 13 million
• Number of undergraduates 130/yr
• Cost per graduate, mining specialties
• 6.56.5 million/130 grads 100k/grad

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• Cost vary by country, university and number of
  graduates per year
• How the costs are covered vary by country and
  university
• State taxes
• Federal taxes
• Industry direct funding
• Research (industry and government)
• General philanthropy

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Providing capital to address Talent

• Fiscal capital
• per graduate
• Scholarships (unfortunately support the student
  not the program)
• Research (for innovation and generation of
  faculty)
• Endow programs and faculty
• Fund buildings
• Intellectual capital
• Leadership Help find a better way
• Lecture at universities
• Promote mining careers, recruit more and better
  students
• Re-establish the role of universities in
  innovation for mining
• Political capital
• Lobby for state and federal support for programs
  and research

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Timing

• Short (fiscal and intellectual capital,
  English-speaking professionals with some Spanish)
• Medium (intellectual and political capital,
  transition to more diverse talent base)
• Long (political capital, contributions from BRIC
  countries)

Short
Medium
Long
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Conclusions

• Sustainable Talent is a corporate value
• Talent is a mobile, global commodity
• The supply of Talent must be addressed globally
• Immediate solution 100k per mining specialist

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Crisis

• Faculty

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• If we get the right people in the right jobs,
  weve won the game
• - Jack Welch