TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY The emerging...

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TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY

The emerging skills shortage in the minerals industry - potential constraints on

future sustainable development

John Thompson

2 TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY

Outline

Mining Industry – changes and challenges People – demographics and demand Exploration – geoscientists and skills

Area selection Target generation and testing Evaluation and development

Critical skills – concerns Constraints on development Opportunities

Industry – the last ten years

The resurgence of the resource business Supply-demand – high commodity prices Opportunities and challenges:

Markets – capital and consolidation Discovery Cost escalation Technology Politics, environment, health and safety,

communities - sustainability

Supply – demand

Supply constraints Low discovery rate – relative to expenditure

Limited effective grass roots exploration, technical challenges, land access, people

Cost escalation – materials, energy, labour Development & mining – labour, skills Politics and social/cultural issues

Demand China, India etc…. Future?

Sustained prices? Volatility

The people picture

Demand New projects and expansions Limited hiring – a lost decade

Demographics “Retirements” – loss of knowledge Job pressure – early retirement, life style

Competition Location Image

Exploration – people skills

The role of the geoscientist Early stage – generation Projects – evaluation Business – management

Early stage – Generation

Understanding the target – metallogeny Using available public data Developing the concept Testing the concept Acquiring the “right” data

Project exploration

Target definition Intelligent collection and use of data

Target testing – drilling Logging drill core/chips Interpreting results

Exit strategy

Understanding the model

Classic 2D geological models Extrapolation to 3D Building from experience Resisting dogma – dealing with uncertainty

Empirical v theoretical models e.g., IOCG – major deposit class but no

adequate exploration model

Data and modeling

Targeting: Data quality Variables Assumptions

Interpretation

3D Models: Organize &

integrate data Interrogate &

visualize results

Project development

Communities Resource evaluation Geometallurgy Mining and processing Environment

Using the data

Exploration to resource Understanding deposits Delineation, evaluation Resource model

Resource to mine Geotechnical data Ore characterization Waste characterization

Geometallurgy

Define mining/processing characteristics Start-up risk mitigation Mine site optimization and integration

Predict mining/processing results from geological characteristics

A new skill set using mineralogical and textural data

Data to Predictions

Geometallurgy

Current geometallurgical tests Relatively expensive – hence limited to a few

(composite) samples May not reflect or define inherent variability

New cost-effective methods – better use of mineralogical, chemical and physical data

Generate enough data to be spatially representative and predictive

Geometallurgical models

Incorporate data into resource models Potential

Total economic optimization Optimize flowsheet/plant size Reduce technical risk

Liberation

Recovery

Disposal & environment Blasting

Crushing

Grinding

Critical skills - concerns

Field Observations – rock, drill core/chips, outcrops Interpretation – regional to project scales

Experience – time on the rocks

Leadership Technical and non-technical skills

Loss of field skills

Fundamental for exploration Observations – outcrop to drill core Experience – 3D interpretation

Lack of emphasis in education Inadequate training - industry/government

Leadership

Challenges Range of projects Managing uncertainty Risk analysis Team leadership

Attributes and skills Presentation and salesmanship Cultural/social awareness Determination and flexibility

A people business

Constraints on discovery & development

Discovery People and budgets (market conditions) Skills, expertise and determination Politics – land access

Development Land-politics, energy, water, and costs People – mining engineering and metallurgy Finding the “A” team Creativity and rigour (geometallurgy!)

Constraints on different players

Majors Good budgets – focus, speed, awareness? Expertise and teams – commitment? Approach/ability to work with juniors?

Juniors Funding – understanding the options? Staff – business and technical demands

Balanced portfolios Breadth v focus – frontier v mature Technical risk v non-technical risk

Opportunities

Companies Attract and retain the right people Use people in the right place Career development and flexibility Invest in education – build capacity

Universities Provide fundamental education Introduce breadth and application

For the geoscientist

Mining industry – Enormous opportunities – career advancement Adventure, diversity, challenge

Geoscientists are capable of anything Quantitative and qualitative science Interpret vast amounts of complex data Deal with uncertainty Work with people

Leaders – CEOs……

TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY The emerging...

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