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
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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
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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
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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
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Exploration – people skills
The role of the geoscientist Early stage – generation Projects – evaluation Business – management
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Early stage – Generation
Understanding the target – metallogeny Using available public data Developing the concept Testing the concept Acquiring the “right” data
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Project exploration
Target definition Intelligent collection and use of data
Target testing – drilling Logging drill core/chips Interpreting results
Exit strategy
9 TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY
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
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Data and modeling
Targeting: Data quality Variables Assumptions
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Interpretation
3D Models: Organize &
integrate data Interrogate &
visualize results
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Project development
Communities Resource evaluation Geometallurgy Mining and processing Environment
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Using the data
Exploration to resource Understanding deposits Delineation, evaluation Resource model
Resource to mine Geotechnical data Ore characterization Waste characterization
Geometallurgy
14 TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY
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
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Data to Predictions
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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
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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
18 TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY
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
19 TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY
Loss of field skills
Fundamental for exploration Observations – outcrop to drill core Experience – 3D interpretation
Lack of emphasis in education Inadequate training - industry/government
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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
21 TECK COMINCO - A DIVERSIFIED RESOURCES COMPANYCOPPER - COAL - ZINC - GOLD - ENERGY
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!)
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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
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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
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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……