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By P J. McCarthy

Globalisation and consolidation is resulting in the mining industry coming to be dominated by a small number of very large companies seeking to lever assets and knowledge to create wealth. As an important service provider to the mining industry, the minerals tertiary education sector needs to understand these global drivers and respond to them. However, it is under-resourced and its sustainability is under challenge in all Western countries. Through the establishment and funding of the Minerals Tertiary Education Council (MTEC), the Minerals Council of Australia (MCA) has provided a unique opportunity to build a national, world-class minerals tertiary education environment in Australia that can be sustained in the long-term. This paper reviews how the global changes occurring in the mining industry provide the model for what needs to occur in the minerals education sector and how MTEC is the logical vehicle to facilitate these changes. It concludes by suggesting that the time has come to integrate the minerals tertiary education providers into one business. Furthermore, the vision should be for a global mining education academy based around a virtual university capable of servicing the cultural diversity and continuing education needs of the global minerals industry.

Jan 1, 2001

By Claudio Ballota

Los sistemas de gestión empresarial son importantes -en tanto las estrategias de negocios acompañadas del apoyo de sistemas de información, permiten planificar, ejecutar y controlar el desempeño empresarial. Por ello, la integración de la información en una empresa a través de reportes gerenciales y herramientas de análisis, son fundamentales para cualquier ejecutivo que quiera desempeñarse exitosamente en el mercado moderno. En ese sentido, el presente texto señala la eficiencia del outsourcing de sistemas integrados en la administración de las empresas como un proyecto tecnológico de negocios que está dirigido a todos los empleados de la empresa que interactúan con sistemas para realizar sus tareas operativas diarias y para los gerentes que buscan información para tomar mejores decisiones.

Jul 17, 2000

By T. L. Owen

Since 1993 Cyprus Amax has brought $2.5 billion dollars of greenfield and expansion projects into production, taking it from a mid-sized domestic minerals company into a major international minerals organization. The near simultaneous development of these multiple mineral projects in different locations around the world provided the opportunity for Cyprus Amax to develop a formal project management approach based, in large part, on an outsourcing philosophy. This formal project management system along with its outsourcing philosophy has served the growth agenda of Cyprus Amax extremely well. These preceding factors, coupled with the in-house retention of a core project group that fully understands the breadth of skills and abilities needed to undertake development of multiple large projects successfully, have been the cornerstone of Cyprus Amax’s project development success.

Jan 1, 2000

I am honoured to be given the opportunity to share with you my thoughts on what will be the essential characteristics of æThe Mining Company for the 21st CenturyÆ. For me the 21st century is all about globalisation and the challenges and the opportunities that globalisation presents for the mining industry. To play on the global stage the successful mining companies must develop profiles that are global in: their operations diversity, their partnership relationships diversity, their customer relationships diversity, their workforce diversity, and their shareholder diversity. In my view æbigÆ will count in the 21st century, but big overlaid with quality: quality assets, quality people, quality partners, quality customer relationships, and quality image and reputation. Last year, Rio TintoÆs Leon Davis said when he addressed the Minerals Council of AustraliaÆs annual conference that Australian resource companies that wish to become global operators must develop an unequivocal international identity that will make that company a known and trusted quality wherever it seeks to do business. He went on to say that structuring and operating a business in a way that consistently manifests the qualities that inspire respect and evoke confidence is vital. I absolutely concur with what Leon said. Unfortunately, the fact is that, as we stand at the beginning of the 21st century, our industry and many of our companies are no better accepted by the world community than was the case five, ten, 15 or even 20 years ago. In fact, in some cases, the warmth of the acceptance may have subsided. To some extent the demonstrations that we saw recently in Seattle and Davos reflect a growing distrust, disquiet and cynicism in our communities. Here, however, I see an opportunity. While on the one hand the mood of disquiet presents many challenges, it also provides those of us who are willing to get out on the front foot in addressing the issues, and engaging in the dialogue, with a very significant opportunity to create a major competitive advantage. It provides the opportunity to earn respect and the opportunity to develop a reputation as a company that is sought as a joint venture partner and a company that is welcomed by governments and communities. Importantly, also, people will seek employment with such a company and will invest in such a company. The challenge is to change the way we behave and the way we are perceived by all the key stakeholders. Many of our industryÆs traditional skills are now commodities à many can be à and are out-sourced. The new critical skill for the 21st century à the real competitive advantage à will come from creating a real and genuine understanding of our role and what we stand for. Everything we do should demonstrate not only sound business principles, but also an understanding of the political, social, cultural and environmental impacts of our activities - at an international and a local level. This concept isnÆt new - but for large companies such as BHP, where we operate in more than 20 countries with diverse cultures, languages and religions - it requires enormous energy and dedication. It is complex. It is difficult. But I believe it is absolutely fundamental to our future.

Jan 1, 2000

By L. K. Daneshmend

Key issues in managing information systems in the minerals industry will likely continue to be those relating to the integration and interoperability of disparate systems. This paper argues that, in order to harness the promised benefits of information technologies, the mining industry should adopt a set of open systems standards to define data formats and protocols for seamless data exchange. This is in direct contrast to the present situation where mining equipment, software and instrument suppliers rigidly adhere to proprietary standards for fear of losing competitive advantage. Benefits to the mining sector resulting from the adoption of such standards would be: the provision of near-time data for executive decision support, and the freedom to choose best technologies. The principal benefits to the leading mining software suppliers will be increased market share as a result of “captive sites” converting to open systems standards. Examples are given of open systems standards developed for related industries such as the Petroleum Open Systems Corporation (POSC) and the Machinery Information Management Open Systems Alliance (MIMOSA).

Jan 1, 2000

By L. M. Scovell

The Internet and its related technologies will radically change the way that mines manage and control their maintenance, repair, and operating supply chains. The Internet is creating new distribution channels and offers new technology platforms with significant advantages over more traditional methods. Mines will have to re-evaluate both the strategies and the tactics employed in these areas. Mines will use e-commerce to integrate their maintenance, repair, and operating supply chains. The integration will extend beyond traditional trading partners to a worldwide network of communities with similar interests and goals. The changes will transform the way mines operate, lower mining costs, and thereby increase their chances of success in an increasingly competitive environment.

Jan 1, 2000

By J. B. Greenwood

The paper point out some reasons why contract mining should not achieve the same success in Latin America as it has in Australia. In this sense, any reasons are: the size of operation, mining industry employees bonus scheme, the privatization of nationalized mining assets, general sales tax and the mining unions. Therefore, great deal depends on the attitude or "mindset" of a company's employees. lt is strongly my view that the attitude with which a contractor approaches a job will give rise to a superior mindset amongst its employees when comparad to those from most mining companies. The value of this cultural difference is significant and should never be underestimated. lmportantly, it doesnot only manifest itself in a more productive workplace: it is invariably the case in Australia that the safety achievements of contract miners are superior to those generally expected from the mining industry at large.

Oct 6, 1999

In the past two and a half years, over 40 000 metalliferous mining and related services personnel have been trained through an Australian Generic Safety Induction system. This is almost half of AustraliaÆs metalliferous mining related workforce. This remarkable industry acceptance and delivery of safety courses is supported by Acacia Resources, Great Central Mines, Homestake, Newcrest Mining and WMC Resources, amongst hundreds of other mining, exploration and major contracting and services companies. MARCSTA; the Mining and Resources Contractors Safety Training Association (a pro-active not-for-profit self-help group of 24 major contracting companies) developed this generic safety induction. MARCSTA set out to find the æcommon groundÆ necessary to help address the evident safety problems and cost of re-training that were plaguing development of an internationally competitive and productive export industry. The incredible expansion of Australian mining during the decade fuelled a need for out-sourcing, resulting in much larger numbers of contractors on-site. At the same time, changes within Australian legislation, community expectations and the development of huge fly-in/fly-out operations and widespread skills shortages led to a rapid labour turnover and a higher paid workforce. Many Australian mining houses also ran international operations, particularly in South East Asia and head hunted people across the world. The skill levels fluctuated and fell at some local operations. Employers could no longer rely on systematic in-house training of permanent employees to improve safety and productivity as workers could and often did move on. Serious discrepancies in both quality and quantity of safety induction training and work practices occurred. Repetitive, boring and ineffective safety training became an embarrassing and costly burden for companies and workers alike. Then a spate of mining deaths sparked highly publicity, workforce concern and a demand for improvement from government, unions and corporate stakeholders. MARCSTA recognised it had to develop a high-quality safety-training program to satisfy the needs of all employers and be acceptable to others within the industry. This induction system had to be flexible enough to meet differences in legislation between states and industry sectors and be portable to enable cost and time savings for the new transient workforce. Changes in the last two years as a result of evaluating and incorporating various Taskforce inquiries into underground mining fatalities later led to the development of the MARCSTA Underground Safety Induction. This logical development added to the run away success of MARCSTAÆs General Safety Induction and was seen to be essential for many surface mines that were planning to develop underground operations. There are many lessons that MARCSTA learnt during its development that Pacific and South East Asian mining operations can benefit from. The most important of these are the support of stakeholders within industry and the recognition of higher safety and health expectations from workers and government. This goes hand-in-hand with the productivity and return on investment expectations of companies and their shareholders.

Jan 1, 1999

By John M. Rogers

Risk management has rapidly developed to become an integrated, holistic approach that now encompasses the main risk elements such as product quality control, occupational health and safety, security, environmental liability, social issues and related management information systems. Given the obvious economic benefits, a seamless blend of risk management components has become essential to allowing organisations to sustain a competitive advantage, and is also looked upon as an important attribute in organisational growth. Juxtaposed with this management philosophy is the global trend towards outsourcing, which has seen the emergence of independent, and specialist risk management organisations. The New Millennium will undoubtedly see a shift away from "in-house" risk management practices, and consequently, the selection of a suitable risk management partner - a major vehicle for improving shareholder value - will become an important strategic management decision.

Jan 1, 1999

By Bruce Cavender

Managers are frequently faced with the decision to perform a task or manufacture an object in-house or to hire an outside vendor to perform the function. Outsourcing decisions are usually driven by economics: work is outsourced if it can be completed at a lower cost or in a shorter time than it can in-house. A technique termed incremental analysis can be used to make this decision. Incremental analysis examines the financial impact of outsourcing decisions as a function of the firm's fixed and variable operating costs. To use this tool, individual components of production cost are identified as being either constant or varying with levels of production activity. The assignment of cost type can be made in several ways: though analysis of historical operating data, understanding of individual expense types, and so forth. Changes in fixed and variable costs resulting from each potential course of action are explicitly identified to project the financial outcome of each alternative. The alternative having the greatest positive impact on profit is selected for implementation. By using the fixed- and variable-cost framework, the analysis is conceptually straightforward and substantially simplified. Production managers can therefore use incremental analysis as a tool for fast economically beneficial decisions on a real-time basis.

Jan 1, 1999

Outsourcing of specialist and non-continuous services is common practice in international mining operations. There is an increasing trend towards this practice in South Africa as a result of the major organisational changes that have taken place in the industry, and as lower revenues and production cost pressures have reduced profit margins. Many specialist functions have been outsourced in the industry for a long time, an example being shaft sinking, which is undertaken by specialist shaft sinking contractors. In the professional services area, some activities have been outsourced, for example the design and construction supervision of tailings dams, but mining related activities such as geology, mine planning and scheduling, engineering, ventilation, and rock engineering, have traditionally been carried out by in-house staff. In this paper some of the industry problems which have led to an increase in outsourcing of professional services are considered. Then the pros and cons of outsourcing are dealt with before outlining the factors which should be taken into account in choosing an outsourcing partner.

Jan 1, 1999

By B. Kenny

The aim of this paper is to provide an overview of existing forms of subcontracting in the South African mining industry. A descriptive framework is developed to understand different subcontracting arrangements. We argue that, in order to do so, it is important to distinguish between labour broking and gang subcontracting. Data resulting from a research project (including an analysis of historical sources, interviews with contractors and focus group interviews with mineworkers) is presented to highlight the implications of changing formations of subcontracting for the South African mining industry in the late 1990s. Apart from the subcontracting of ?traditional? functions, such as shaft sinking, access development, catering and hostel maintenance, contractors are now used in ?core? mining activities. In some instances, whole shafts are ?outsourced? to outside agencies. It is argued that certain of the subcontracting arrangements have serious implications for the ability of the mining industry to improve health and safety standards. Some of the practices can potentially result in conflict between different categories of workers, and, as a result, instability in the industry.

Jan 1, 1999

By D. Pillay

Outsourcing? and ?sub-contracting? have become buzzwords in recent years, as SA industry becomes increasingly exposed to the global economy, and global competitiveness. In its effort to ?catch up? after years of relative isolation, there is a concerted effort to learn from global ?best practice?, in order for South African companies, and the SA economy, to become ?winners?. There seems nothing wrong with this approach at face value. Companies need to compete and be profitable if they are to remain in business. Failure will in the end mean bankruptcy, and the loss of jobs. However, if one interrogates the precise practices, and their implications for all concerned?not just shareholders and employers, but workers, communities, the environment, future generations, the national economy?then the picture can change dramatically. ?Best practice? for whom?

Jan 1, 1999

Cost accounting information is used primarily for (1) planning, control, and performance evaluation; and (2) managerial decision-making. Incremental analysis is a tool for managerial decision-making. It is designed to estimate future financial performance, namely the benefits and costs associated with alternative courses of action. Decisions may be distinguished as pertaining to short-term or long-term activities. Long-term activities frequently focus on capacity decisions and the attendant capital budgeting processes used to quantify the financial effects of these decisions. Short-term decisions typically address short-range production quantity and pricing issues, outsourcing, selection of the optimal mix of products, inventory management, and the acceptance of special orders. This chapter addresses these short-term decisions.

Jan 1, 1999

By C R. Fountain, W R. Cannings

The zinc-lead-silver mineral resource at Lady Loretta ranks amongst the worldÆs richest when measured in terms of in situ metal grades. However, the project remains undeveloped 28 years after its discovery in 1969. The primary obstacle to development has been the fine and complex grain structure of its ores, which make flotation concentration inefficient even with fine grinding. The size and remote location of the deposit have also hindered exploitation. BUKA planned to directly fume the volatile target metals from the ore when it acquired the project. Intensive, post-acquisition modeling showed the innovative processing route to be uneconomic, notwithstanding high metals recovery and low waste content in fume product. Progressive modifications and supplements to the underlying fuming process enhanced economics and resulted in a new mine-to-metal processing route for zinc-lead-silver ores. The proprietary, three-stage BUKA Zinc Process offers technical, economic and environmental advantages. It is expected to find widespread application in the treatment of ores and residues. However, neither continued R&D nor application to Lady LorettaÆs currently delineated resource can be justified under prevailing market conditions. The objectives and results of each step in the process development sequence are outlined with reference to their impact on the commercial viability of the Lady Loretta project.

Jan 1, 1998

Coal exports are forecast to grow strongly, so that coal is likely to remain very important to Australia for the foreseeable future. However there is no sign that prices or profitability will rise of their own accord. Therefore the intense squeeze on costs will continue for the foreseeable future. This will mean lower manning, more outsourcing and probably an increasing rate of company attrition. As well, the political pressure from the greenhouse debate is only going to intensify and the pressure on the Federal Government after Kyoto is likely to be irresistible.

Jan 1, 1998

By Robertson AC

Studies by Tennent, Isokangas Pty Ltd (TIP) have indicated that underground quarrying of backfill may be a cost competitive option for providing backfill for specialised situations in underground mining. Situations where suitable bulk fill material may not be available on the surface, and where the total cost of setting up a fill distribution system are prohibitive, could favour the mining of fill material underground adjacent to the stopes being mined. Considerations include environmental impact, scheduling, surface constraints and total costs. The examples quoted in this paper, and the case studies are based on the authors' personal observations and experience.

Jan 1, 1998

By A C. Robertson

Studies by Tennent, Isokangas Pty Ltd (TIP) have indicated that underground quarrying of backfill may be a cost competitive option for providing backfill for specialised situations in underground mining. Situations where suitable bulk fill material may not be available on the surface, and where the total cost of setting up a fill distribution system are prohibitive, could favour the mining of fill material underground adjacent to the stopes being mined. Considerations include environmental impact, scheduling, surface constraints and total costs. The examples quoted in this paper, and the case studies are based on the authorsÆ personal observations and experience.

Jan 1, 1998

By A C. Robertson

Over the past decade there has been continual change in the way that mines have been managed and the component roles of those people who make up the total mine management system. Major issues have included the change in the business structure of mining companies, the change in on-site infrastructure, increased personal liability of managers for the safety and health of employees and increasing social and environmental pressures on managers and their staff. This paper looks at the changing roles of two of the many groups of professionals associated with the mining industry - the equipment supplier and the mining consultant. The profiles of the ACME Group Pty Ltd, suppliers of ventilation equipment and ancillary canvas and plastic products to the mining and construction industry, and Tennent, Isokangas Pty Ltd, Consulting Mining Engineers, are presented.

Jan 1, 1998

By J. A. Finch

In this paper, the author offers a personal view of what the next 30 years holds for mineral processing. Restating that mineral processing will remain a vibrant industry in raw material production, growth opportunities in waste management are identified. The processing sequence familiar now (mining ?mineral processing ?extraction) will become more interwoven. In situ processing (i.e., milling underground) will evolve from concept to demonstration. Opportunities to exploit physical properties altered in chemical (pyro- and hydro-) processing will present themselves. In primary grinding, the path to AG/SAG milling will progress with little deviation but opportunities in regrinding are wide open. Flotation will see the trend to designing bubble/particle reactors accelerate simultaneously with a vigorous response from mechanical cell suppliers. Gravity separation remains a bastion of the lone inventor but this author anticipates that the new lines will come from the waste management business. The paper concludes with the examination of the “research cycle” and identification of growth in small “high tech” companies and university research centres

Jan 1, 1998