Looking Ahead - Mining and the Environment: From Ore to Metal - page 853

Hence, a global business scene is emerging that involves rising economic interdepen-
dencies in different key spheres, all of which are directly relevant to international mining,
and all of which are likely to inl uence its environmental performance. Some follow:
●

A global business scene is
emerging that involves rising
economic interdependencies
in different key spheres, all of
which are directly relevant to
international mining.

Winning talent - professional and intellectual talent is becoming a highly competi-
tive global resource open to all bidders, and international mining companies from the
traditionally dominant economies must increasingly compete for that pool of talent.
As one example, mining professionals from the Philippines are highly sought after
throughout the Asia Pacii c region. In fact, recruitment has been so successful that
local mining expertise in the Philippines is now becoming a rare commodity.

●

Sources and l ow of capital - are shifting from foreign direct investment (FDI) sourced
solely from developed economies to increasing FDI from developing economies, and
hence there are new competitors joining the i eld and playing to new roles with differ-
ent strategic objectives in mind. The opening of the Indonesian economy to Chinese
investors is a point in case. While practically non-existent less than 10 years ago,
Chinese investment in the Indonesian mining sector (and elsewhere) now represents a
formidable economic force.

●

Battle for resources and commodities - the developing world is increasingly competing
for commodities; for example, the developing world accounted for 85% of additional
energy demand in recent years (as of 2008).

●

Emerging consumers in the emerging economies - introducing new supply chains,
preferred sites for down-stream processing and strategic natural advantages in differ-
ent parts of the world.

●

New map of global innovation - new economies and markets are becoming innova-
tors and proving they are capable of catching up very rapidly on technical innovation
with the traditional leaders from Europe and North America. This capacity shift will
change the traditional leadership and locations of research and development, innova-
tion, and 'early adopter' benei ciaries.

For mining companies, the outcomes of growing competition across the above i ve spheres
are the heightened risk of increased volatility in all respects of their operating environments.
It means that more effort will be needed to attract and retain the talent mining companies
require for their operations. This challenge will involve dealing with different health risks,
more ideological challenges, diverse cultural differences and preferences, all of which can
translate to higher staff turnover, higher operating costs, and eventually also new environ-
mental and social issues. As in other industry sectors, the mining sector will increasingly
face the heightened imperative to recognize, respond and adapt quickly to a broad range of
economic, political, environmental and technological risks. Accordingly, mining companies
need to build new capabilities and acquire new skills from professional disciplines not nec-
essarily regarded as part of the traditional mining industry skill-set.

Mining companies need to build
new capabilities and acquire new
skills from professional disciplines
not necessarily regarded as part
of the traditional mining industry
skill-set.

Emerging New Geo-Political Risk Factors

Operating in a changing global economy is likely to be both potentially more reward-
ing and more difi cult than previously. In certain respects, a robust global economy has
been achieved by the World Trade Organization (WTO) through the increased openness
in trade and banking, with the removal of trade barriers and deregulation of the global
i nancial system. However, other forces are contributing to new challenges and risks.
Geo-political risk and regional/global security is one. The management of operations in
unstable or post-conl ict affected countries and failing nation states; addressing local and