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This web conference will begin at 12 PM Eastern Standard Time.

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Political ... Social (cultural, political, health) Economic. Institutional ... place to track company performance across the spectrum of sustainability issues? ... – PowerPoint PPT presentation

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Title: This web conference will begin at 12 PM Eastern Standard Time.


1
  • Welcome!
  • This web conference will begin at 12 PM
    Eastern Standard Time.
  • If you have not already done so, please sync
    your telephone and computer as detailed in the
    voice connection tab in the bottom right-hand
    corner of your screen.

2
Preparing 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

3
Agenda
  • 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
5
Change 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
6
Solutions
  • Process plus Substance

6
www.icmm.com
7
There 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
8
ICMMs Sustainable Development Framework
For more information visit www.icmm.com/sdframewo
rk
8
www.icmm.com
9
Key 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
10
Key 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
11
Preparing Responsible Managers for the Metals and
Mining IndustryThe Newmont Executive Leadership
Program
  • Bruce Hutton, Ph.D.

12
Agenda
  • Background On Newmont Mining Executive Leadership
    Program
  • Sustainable Development Framework
  • MiningDo The Extreme Issues Faced Provide
    Learning Opportunities?

13
Original 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)

14
Newmont 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

15
Key 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

16
Results 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)

17
Business
Government
Social
NGOs/Communities
18
MiningSD 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

19
From Ethic to Strategy
20
Scorecard 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

21
Driving 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
22
Student 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

23
Resources
  • 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
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