Why Do We Invest in New Technology in the Mining Industry?

Thank you for the invitation to address The AusIMM Young LeadersÆ Conference here today. When I first saw the conference theme û æadvancing technologies and their future applications in the mining industryÆ û my interest was sparked because there is little doubt that technology and technological advances will determine the relevance of this industry in the future. And the people seated here today are major players in determining the minerals industryÆs destiny.During my 20-year association with the mining industry, I have observed a number of significant changes that have been delivered as a result of the vision of technical specialists. These changes have built a more competitive industry, a more socially acceptable industry and most importantly an industry with ever-improving safety performance. The purpose of my address is to attempt to provide a context and foundation for other presenters over the following two days. Today, I wish to try to answer the question, æWhy do we invest in new technology in the mining industry?Æ, via: a brief history lesson, a review of the needs of the business, a look at the process for improvement, and finally an example from WMC ResourcesÆ current technology portfolio. I would like to take a very brief walk back in time. During the iron and bronze ages, whilst our ancestors IÆm sure never spoke the phrase ænecessity is the mother of inventionÆ, I am sure they lived by it. Undoubtedly more so than we do today. The roots of geology, mining and extractive metallurgy grew out of the need for better tools in order to get access to the basic necessities of life. It was their superior ability to generate and deliver these ætechnologyÆ improvements that underpinned great civilisations such as the Egyptians, Romans and Incas. The application of mineral technology improvements by these civilisations was crucial to their success, it was their competitive advantage at the time. Many historical texts include detailed descriptions of both mining and processing fundamentals that formed the basis of many of todayÆs operations and processes. However, it is technological improvements to these fundamentals, as well as the development of new technologies, that have preserved the fundamentals as viable options for the industry today. Even in my time in the industry, there have been substantial improvements in the way business processes operate. When I first started working in a gold mine in WA in the late 1980s, the office had one PC (a 286 processor). All data was managed by paper and then often re-typed into other databases. Electronic mine design and process control was in its infancy. Today, massive amounts of data are recorded, analysed and acted upon almost without any human interaction. Our industry today has far different challenges than those described by Argricola. These are many and diverse, but new technologies are required to address three distinct classes of need: 1. Societal needs: physical needs for food, shelter, recreation and leisure; community and political needs for less waste, less emissions, better safety and working conditions, less energy consumption and sustainability. 2. Individual needs: intellectual needs to create innovative technical and organisational ideas. 3. Wealth generation needs: investor needs for maximising operating efficiency and value growth. Each new technology, to varying degrees, fulfils one or all of these needs. In many cases, the driver of a technological development was to fulfill only one of these needs, but after it was implemented, the development actually fulfilled each need. I would like to expand on these needs.