Title: This web conference will begin at 12 PM Eastern Standard Time.
1- Welcome!
- This web conference will begin at 12 PM
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2Preparing Responsible Managers for the Mining and
Metals Industry
- Speakers
- Bruce Hutton Dean Emeritus and Piccinati
Professor of Marketing, Daniels College of
Business, University of Denver - R. Anthony Hodge President, International Council
on Mining and Metals (ICMM) - Moderator
- Maureen Scully Assistant Professor, UMASS Boston
College of Management
3Agenda
- Introduction (5 minutes)
- PresentationR. Anthony Hodge (10 minutes)
- PresentationBruce Hutton (10 minutes)
- Moderated discussion (20 minutes)
- Introduction to Aspen resources (10 minutes)
4- Sustainability, Mining and the MBA
- R. Anthony Hodge, Ph.D. , P. Eng.
- President, International Council on Mining and
Metals - Professor, Mining and Sustainability, Queens
University, Kingston
www.icmm.com
4
5Change is the Dominant Characteristic of Our World
- Social
- Environmental
- Economic
- Cultural
- Political
- The operating environment is one of change
change management is a dominant issue for mining
as well as students of business
5
www.icmm.com
6Solutions
6
www.icmm.com
7There are many valid perspectives of Sustainable
Development
- Components
- Environmental
- Social (cultural, political, health)
- Economic
- Institutional
- Results
- Human Well-being
- Ecosystem Well-being
Capitals Natural, Built, Human, Knowledge,
Institutional
7
www.icmm.com
8ICMMs Sustainable Development Framework
For more information visit www.icmm.com/sdframewo
rk
8
www.icmm.com
9Key Generic Topics for Coverage in Any Course
- Historic Context WW II to today
- Theory and definitions sustainability,
development, sustainable development - The non-renewable characteristic of mining and
its compatibility with sustainability ideas - The evolution from impact assessment and
management to contribution assessment and
management capturing both positives and
negatives as input to risk and decision analyses - Real-life cases
9
www.icmm.com
10Key Issues Facing the Mining Industry
- What are fair systems of mineral taxation (for
host countries, local communities and companies)? - What can mining do about its contribution to
global warming? - How can mining build effective relationships with
indigenous people and other interests that are
touched by mining activities? - What is the right role for mining to play in
poverty reduction in developing economies (north
or south)? - How far does mining go in assuming governments
responsibility for services and infrastructure? - How can industry and society together best assess
the social, economic, cultural and political
contribution of mining over the long term? - What systems of reporting and assurance need to
be in place to track company performance across
the spectrum of sustainability issues? - How can mining best enhance health and safety
practices across the world? - How can any mining company best introduce
concepts of strategic change management?
10
www.icmm.com
11Preparing Responsible Managers for the Metals and
Mining IndustryThe Newmont Executive Leadership
Program
12Agenda
- Background On Newmont Mining Executive Leadership
Program - Sustainable Development Framework
- MiningDo The Extreme Issues Faced Provide
Learning Opportunities?
13Original Framing of the Program
- We need to build a new generation of executive
leaders and develop a consistent leadership
culture. - Today we are good mine operators and our mine
managers spend 90 of their time worrying about
issues inside the fence line. In the future, in
order to earn our Social License To Operate
(SLTO), they must have additional skills and
spend 75 of their time dealing with issues
outside the fence line. - Most all new gold deposits discovered in the
future will be in developing countries, which are
a far more difficult and risky environment to
develop and operate mines. The future will be
far more challenging than the past -
- Wayne Murdy,
- CEO (2004)
14Newmont Executive Leadership Program
- A transformational learning experience focused
on - Providing a consistent leadership development
platform for existing and emerging Newmont
leaderscommon frameworks and language - Integrating and aligning Newmont leaders with the
business strategy - Drive a culture shift in the company
15Key Design Concepts
- Comprehensive Rigorous Program
- Fully customized to Newmont
- 8 daysInterval (4-6 months)8 days
- Work required outside of class
- Held in Denver (2 side trips)
- Wow experience
- Cohort StyleCritical Element
- 16 participants/class
- Build relationships/networks
- Share experiences/best practices
- Learn from each other
- Cohorts carefully chosen
- Mix of current execs and emerging leaders
- Diverse groupsglobal, cross-functional,
staff/line, etc.
- Focused on Relevance Stickiness
- Mixture of Delivery Modes
- Experientials
- Integrating/Exercising the Learning
- Integrated Cases
- Action Learning Projects (ALPs)
- Utilize ALPs to advance key Newmont initiatives
- Present recommendations to Executive Leadership
Team
16Results To-Date
- Completed 5 Cohorts
- All C-level execs have attended
- Become prestigious internally and a right of
passage - Cohort recommendations have made large impact on
direction - ESR
- Management Process
- Established Very Close Partnership
- GO Classes to Ghana and Peru
- Faculty involved in other activities (coaching,
facilitation)
17Business
Government
Social
NGOs/Communities
18MiningSD Issues in the Extreme
- Extraction Industry
- Economic
- Highly Capital Intensive
- Marginal Projects
- Risk
- Environmental
- Permitting
- Extraction process (e.g. cyanide)
- Activist NGOs
- Social
- Resettlement
- End of mine life
- Developing Countries
- Mining often first FDI
- Impoverished communities
- Little infrastructure
- High needs
- Weak social institutions
- Poor education healthcare
- No local suppliers
- How much is enough?
- Weak Government
- Political Risk
- Corruption
- Regulatory Agencies
19From Ethic to Strategy
20Scorecard Business Case for Sustainability
- Measures of Business Success
- Financial Performance
- Shareholder Value
- Revenue
- Operational Efficiency
- Access to Capital
- Financial Drivers
- Customer Attraction
- Brand Value and Reputation
- Human and Intellectual Capital
- Risk Profile
- Innovation
- License to operate
21Driving Value
- Traditional Financials
- Cash Flow
- Price/Earnings
- Price-to-Book
- Earnings Growth
- Etc
Traditional Intangibles Quality of Mgmt Market
Share R D Commitments Patents Brand
Name Partnerships Etc
SD / SRI Intangibles Corp Governance Environment
al Issues Community Relations Workplace
Issues REPUTATION Employee Relations Human
Rights Etc
22Student Projects
- How to effectively measure impact on Sustainable
Livelihood? - 5 CapitalsSocial Capital most difficult
- Baseline and On-going
- How to help communities manage their own
development? - Development Foundation governance
- How to develop sustainable Small-Medium sized
enterprises? - Serve Newmont effectively in Phase I
- Diversify away from Newmont longer term
23Resources
- Aspen Center for Business Education (Aspen CBE)
- Information on Aspen CBEs work
http//www.aspencbe.org - Free, full-text teaching resources
http//www.caseplace.org
- International Council on Mining and Metals (ICMM)
- To subscribe to ICMMs Good Practice Newsletter,
visit - http//www.icmm.com/mailing-list
- For more information, visit http//www.icmm.com
or email - ICMM at info_at_icmm.com