Predicting the disruptors of tomorrow’s mining industry: Deloitte’s tracking the trends 2018
Deloitte Global has released its 10th annual report, Tracking the trends 2018, which explores the key trends facing the modern mining industry as more and more mining organisations turn towards the digital mine.
The report looked at key areas as to identifying future disruptors, key drivers for ongoing investments in innovation and digitisation, developing an approach for the workforces of the future, strengthening government and community relations and repairing the public image of an industry that is more often than not, unfairly tarnished.
As the industry continues to drive for innovation, Phillip Hopwood, believes that the players of the mining world must “rethink the traditional mining model” in order to survive.
“Profound change takes time. To change for the better and pave new paths for the future, the mining industry must focus on driving ongoing investments in innovation and digitization, inspiring their approach to the workforce of the future, manifesting in their commitment to strengthen government and community relations, and guiding their efforts to repair their public image.”
Here we look at three trends that we can expect to see grow over the course of the next 12 months:
Bringing digital to life: Data—and the ability to organize, manage, and process it—is rapidly becoming a competitive differentiator.
Digital thinking must be integrated into the heart of business strategy and practices to transform the way corporate decisions are made. It’s clear that miners need a vision of how the future digital mine might transform core mining processes, the flow of information, and supporting back office processes.
Shifting perceptions: The mining industry has a damaged reputation, this is an inescapable fact. This comes at time where the significant contribution of the mining sector to the world’s economy, continues to grow and one of the leading reasons for this reputation comes down to the environmental implications, and the sector’s lack of clear communication in regards to dispelling the distrust.
The report finds that, in order to rebuild trust with employees, investors, communities, governments, and the public, many leading mining companies are embarking on efforts, such as taking decisive public stances around corporate social responsibility, adhering to voluntary sustainability standards, and passing shareholder resolutions regarding increased disclosure on climate change.
Realigning mining boards to drive transformation:
The biggest drivers of change sit at the highest level. While there are many of people pushing for change, striving for innovation, at the end of the day it requires a board that is willing and, on board.
Boards mired in old ways of thinking will increasingly struggle to fulfill new mandates, such as taking a more active role in challenging the executive team on topics from corporate strategy to digital disruption, talent management, and emerging risk factors. Diverse perspectives are necessary if mining boards are to effectively challenge organizational assumptions, assess the validity of new ways of thinking, and help determine if the organization is taking on too much risk—or perhaps not enough.
Ivanhoe Mines copper set for China with Zijin, Citic deal
Ivanhoe Mines has inked significant deals with JV partner Zijin Mining and its subsidiary CITIC Metal to sell each 50% of the copper production from the recently launched first phase of its Kamoa-Kakula mine in the Democratic Republic of Congo (DRC)
The copper concentrate and blister copper off-take agreements will see wholly-owned Zijin unit Gold Mountains (H.K.) International Mining Co Ltd and CITIC Metal split the initial offtake from Kakula.
The DRC government has authorised exports to international markets and Ivanhoe has also announced a 10-year processing deal to utilise the DRC Lualuba smelter owned by CNMC.
CITIC Metal becomes Ivanhoe’s largest shareholder
Following a new share agreement, CITIC Metal will come to own 19.9% of Ivanhoe Mines’ issued and outstanding common shares when the placement is completed, establishing CITIC Metal as Ivanhoe’s largest single shareholder. Chairman and Founder Robert Friedland will be Ivanhoe’s second-largest shareholder, with over 17% shareholding.
Ivanhoe Mines intends to use the proceeds for the advancement of the company’s world-scale mine development projects in Southern Africa ─ Kamoa-Kakula, Platreef and Kipushi ─ and also for working capital and general corporate purposes.
CITIC Metal part of a bright future with Kamoa-Kakula’s potential to become the world’s highest-grade major copper mine
Friedland said the agreement with CITIC Metal is the culmination of a 15-year relationship between the leaderships of Ivanhoe Mines and CITIC.
“In 2003, the original Ivanhoe Mines was grappling with the challenge of developing its vast copper-gold discoveries at the Oyu Tolgoi Project in southern Mongolia. Following extensive discussions, Ivanhoe and CITIC established a strategic alliance to cooperatively pursue a number of selected common interests in metals production and related technologies.
“For some time now, the board of directors and senior management of today’s Ivanhoe Mines have been evaluating potential transactions that would combine the critical elements needed for Ivanhoe to advance the development of our exceptional assets that have been established in Southern Africa in recent years,” Friedland added.
“A fundamental, qualifying condition has been that any new partner must be complementary to our established partners, Zijin and the Japanese consortium led by ITOCHU Corporation. We are confident that CITIC Metal shares our vision and has the experience and financial resources to help us advance our three projects to production, creating value for Ivanhoe’s stakeholders in the DRC and South Africa, and our international shareholders.”