Globalisation & sustainability in mining - Sykes et al - Sep 2017 - Centre for Exploration Targeting

1. Charles Dickens on the
(potentially) changing
role of globalisation and
sustainability in the
long-term future of
mining and exploration
John Sykes, MAusIMM 1,2,3, Allan Trench, FAusIMM 1,2,4,
Campbell McCuaig, MAusIMM 1,5, & Mark Jessell 1
1. Centre for Exploration Targeting, The University of Western Australia
2. Business School, The University of Western
3. Greenfields Research Ltd., United Kingdom
4. CRU Group Ltd., United Kingdom
5. BHP Billiton plc., Australia
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2. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
The perfect peer review…
“Not mining geology but of interest to
mining geologists.”
– Comment from Reviewer 2
Exactly!
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3. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
It’s been a funny few years…
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Images: The Independent; Climate Depot; Quora; NewsBusters; National Review; The Australian; InDaily; Courier Mail; News.com.au; Sources: Sykes et al., 2017; Sykes & Trench, 2017a, 2017b, 2017c
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4. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
…with implications (good & bad) for mining
Less green & red tape
Government support
Lower taxes(?)
Strong coal, uranium(?), steel & base
metals demand
Focus on health and safety(?)
Strong economic growth(?)
Less access to foreign talent &
projects
Weak economic growth(?)
Resource nationalism & harder social
licence
Weaker demand for uranium(?),
renewable and battery metals
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Sources: Sykes et al., 2017; Sykes & Trench, 2017a, 2017b, 2017c
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5. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Are these signs of things yet to come?
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6. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Fortunately, we were scenario planning at the time!
• A key part of scenario planning is
“sensemaking” i.e. making sense of the
future as it is arising (and adapting to it);
• The 3rd workshop took place in late June
just after Brexit and during the rise of
Trump;
• Understandably the scenarios were
influenced by questions over
globalisation and the impact capitalism
of the environment and society (i.e.
sustainable development).
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Image: John Sykes; Sources: Weick, 1995; Sykes et al., 2017; Sykes & Trench, 2017a, 2017b, 2017c
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7. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Leading to the ‘Dickensian scenarios’
• Named for Charles Dickens’
‘A Christmas Carol’;
• Each scenario represented a
character in the book;
• The ‘sensemaking’ was
influenced by the ‘ghosts of
Christmas past, present &
future’;
• Some of the strategic thinking
derived from interpretations
of Dickens’ works.
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SharedValue
EconomicValue
Globalism
Localism
Cratchit
Fezziwig
Scrooge
Marley
Sources: Dickens, 1843; Weick, 1995; Sykes et al., 2017; Sykes & Trench, 2017a, 2017b, 2017c
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8. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
But first, some context on the politics of
globalisation and sustainability…
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9. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
We were used to the binary politics of the Cold War
Socialist
Capitalist
Australian Labor,
UK Labour,
US Democrats
Australian Liberals,
UK Conservatives,
US Republicans
Free Trading
Protectionist
‘Left wing’
‘Right wing’
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Mid-20th Century ‘Western’ politics
Sources: Sykes et al., 2017; Sykes & Trench, 2017a
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10. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
The ‘left’ was joined by a range of ‘progressives’
Progressive
Conservative
Australian Labor,
UK Labour,
US Democrats
Australian Liberals,
UK Conservatives,
US Republicans
Globalist
Localist
‘Left wing’
‘Right wing’
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Late-20th Century ‘Western’ politics
$
Sources: Sykes et al., 2017; Sykes & Trench, 2017a
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11. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Then many ‘progressives’ went ‘global’
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Progressive
Conservative
Rudd & Gillard Labor
Australian Liberals,
UK Conservatives,
US Republicans
Globalist
Localist
‘New Left’ ‘Right wing’
Post-Cold War ‘Western’ politics
$$
Blairite Labour
Clinton
Democrats
Return to a Victorian
‘classic liberal’ stance
Sources: Sykes et al., 2017; Sykes & Trench, 2017a
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12. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
The Davos consensus is the ‘ghost of the past’
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Image: Scrooge extinguishing the ‘Ghost of Christmas Past’ (from the original work).
Sources: Dickens, 1843; Sykes et al., 2017; Sykes & Trench, 2017a
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13. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Then a return to localism, both left and right
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Progressive
Conservative
Globalist
Localist
‘New left’
(now old)
‘The Right’
(not-so-neocon)
Contemporary ‘Western’ politics
‘Alt-right’
(Corn Law Tories)
‘Old left’
(now renewed)
Sources: Sykes et al., 2017; Sykes & Trench, 2017a, 2017b
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14. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
‘Localism’ is the ‘ghost of the present’
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Image: The ‘Ghost of Christmas Present’ (from the original work).
Sources: Dickens, 1843; Sykes et al., 2017; Sykes & Trench, 2017a, 2017b
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15. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Now for the ‘ghost of yet to come’?
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16. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
The Dickensian scenarios are ‘ghosts of yet to come’
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Image: Scrooge begging in front of the ‘Ghost of Christmas Future’ (from the original work).
Sources: Dickens, 1843; Sykes et al., 2017; Sykes & Trench, 2017c
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17. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
We see the characters of the future in the present
Progressive
Conservative
Globalist
Localist
Fezziwig Marley
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Contemporary ‘Western’ politics
ScroogeCratchit
Sources: Sykes et al., 2017
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18. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Scrooge
• Protectionist with ‘profit’ view of capitalism;
• e.g. Donald Trump, Tea Party, Tony Abbot Liberals, The Nationals, Bob
Katter, One Nation, Post-Brexit Conservatives, UKIP, Marine Le Pen;
• Positive implications for mining: less green and red tape, lower taxes,
government support for ‘job-creating’ projects, infrastructure
investment, industrialisation of rural and industrial areas, demand for
coal, uranium(?), steel and base metals;
• Negative implications for mining: difficulty accessing foreign projects,
limits on foreign talent, local talent and content restrictions, limited
economic growth(?), less demand for battery and renewable energy
metals (e.g. lithium etc).
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Image: The ghost of Marley visits Scrooge (from the original work).
Sources: Dickens, 1843; Sykes et al., 2017; Sykes & Trench, 2017c
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19. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Marley
• Globalisation and free-trade for ‘profit’
• e.g. US & French Republicans, Malcolm Turnbull Liberals, David
Cameron’s Conservatives, Canadian Conservatives, Angela Merkel;
• Positive implications for mining: less green and red tape, lower taxes,
strong economic growth(?), access to foreign talent & foreign projects;
demand for coal, uranium(?), steel and base metals;
• Negative implications for mining: ‘social licence’ challenges, highly
competitive industry with a lack of government support, less demand
for battery and renewable energy metals (e.g. lithium etc).
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Image: The ghost of Marley visits Scrooge (from the original work).
Sources: Dickens, 1843; Sykes et al., 2017; Sykes & Trench, 2017c
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20. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Cratchit (and the ‘Tiny Tims’)
• Protectionist and focused on ‘shared value’;
• e.g. Bernie Sanders, most ‘Green’ parties, Nick Xenaphon, Dick Smith,
Jeremy Corbyn’s ‘old’ Labour, French Socialists;
• Positive implications for mining: government support for ‘job-
creating’ projects, less competition, focus on industrial development
and ‘health & safety’, strong domestic ‘social licence’, demand for
battery & renewable energy metals;
• Negative implications for mining: more green and red tape, higher
taxes, rural land-use conflict, limited foreign talent & projects; local
content & workers restrictions, weak economic growth, limited steel &
base metal demand, ‘death of coal & uranium’.
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Image: Bob Cratchit and Tiny Tim (from the original work).
Sources: Dickens, 1843; Sykes et al., 2017; Sykes & Trench, 2017c
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21. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Fezziwig
• Globalisation of ‘shared value’;
• e.g. US Democrats, Clintons, Tony Blair’s (old) New Labour, Scottish
National Party, Emmanuel Macron ‘en marche’, Justin Trudeau;
• Positive implications for mining: access to foreign talent & projects;
focus on ‘health & safety’, strong economic growth, strong demand for
steel, base, battery & renewable energy metals;
• Negative implications for mining: more green and red tape, higher
taxes, rural land-use conflict, troublesome domestic ‘social licence’,
highly competitive industry with a lack of government support, ‘death
of coal & uranium’.
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Image: Mr. Fezziwig’s Christmas Party for his workers (from the original work).
Sources: Dickens, 1843; Sykes et al., 2017; Sykes & Trench, 2017c
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22. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Dickens’ had seen Cornwall’s Victorian tin mines!
• To some Charles Dickens’ view of
Scrooge and Marley may seem
pejorative;
• However, his was the time (1812-
70) of ‘Victorian’ conditions in
mining and industry, resulting in:
– 1833: UK ‘Factories Act’
– 1840: Royal Commission into
conditions in mining (UK)
– 1843: UK Mines Inspectorate
formed
• Dickens’ himself had seen the
conditions at Cornwall’s tin mines.
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Image: Child labour in Victorian coal mines in the UK
Image: historylearningsite.co.uk; Sources: Pykett, 2012; Sykes et al., 2017; Sykes & Trench, 2017c; Health and Safety Executive, n.d.
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23. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Dickens’ had also seen the rise of ‘Britain’
• However, Dickens’
(1812-70) also saw and
benefitted from the
industrial revolution and
the rise of the British
commercial empire;
• Later reinterpretations of
Dicken’s story showed
the folly of Mr. Fezziwig,
with Scrooge taking over
his failing business.
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Image: The Great Exhibition (the ‘Crystal Palace’) of 1851 in Hyde Park, London
Image: Victoria & Albert Museum; Sources: Hurst, 1951; Seidelman, 2004; Sykes et al., 2017; Sykes & Trench, 2017c
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24. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
We’re aiming for the Scrooge of Christmas morning
• Dickens’ really wanted the ‘best’ of all worlds:
– Global empire and great wealth, but also…
– The sharing of these benefits for local,
working people;
• This is the ‘reformed’ Scrooge of Christmas
morning, with a thriving business, but who also
gifts a prize turkey to Cratchit and has dinner
with his family.
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Image: Scrooge shares Christmas dinner with Cratchit
Source: Sykes et al., 2017; Sykes & Trench, 2017c
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25. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
How do we do this?
First, lets break the metaphor…
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26. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Politics is like a playground…
Swings
• The normal ‘back and forth’ of
democratic politics;
• In a long-term industry to not
to react to every ‘swing’ as can
be wasteful and isolating;
• The mining industry generally
does over-react to the short-
term.
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Roundabouts
• Longer term structural shifts
that re-shape all sides of
politics;
• These are important to adapt to
as they will only reverse over
the long-term;
• The mining industry generally
misses these shifts.
Climbing frames
• Pre-determined elements of the
future that are yet to play out;
• You cannot avoid tackling these
issues, even if you want to;
• Often are recognised by the
industry, but nonetheless are
difficult to act upon.
Source: Wack, 1985; Sykes et al., 2017
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27. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
The swings, roundabout or climbing frame?
Is the shift against ‘sustainability’ and ‘shared value’ a
swing, roundabout, or climbing frame?
• A climbing frame: difficult to envision a developed society
paying less attention to environmental and social
conditions e.g. rise of environmentalism in Chinese middle
class.
Is the shift against ‘globalisation’ a swing, roundabout,
or climbing frame?
• A roundabout (maybe): a key aspect of ‘globalisation’ is
‘glocalism’ i.e. the strengthening of local identity and
rights as everything is placed in global context – the
franchise ‘McDonaldisation’ of the world.
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Images: South China Morning Post, Wikipedia; Source: Ritzer, 1993; Steger, 2013; The Economist, 2016; Sykes et al., 2017
Image: Local style McDonald’s fish burger in Singapore
Image: Environmental protests in China
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28. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
How are we doing, so far?
BHP Billiton
• “Think Big” campaign &
name change (dropping
‘Billiton’) about
restoring domestic pride;
• Rating: B
• Needs to be backed up
by ‘local’ efforts.
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Sandfire / Tintina
• Launched “Make
Montana Great Again”
campaign for Black
Butte project shortly
after Trump victory;
• Rating: C
• Focus on the trend
(roundabout), not the
personality (swing).
WA Royalties
• Strong reaction by iron
ore and gold industry to
tax hikes;
• Probably inevitable (WA
bust) – should have
mitigated this earlier;
• Rating: D
• The industry is making
long- and short-term
enemies on many sides.Sources: BHP, 2017; Fitzgerald, 2017; Radisich et al., 2017a, 2017b; Sykes et al., 2017; Trench & Sykes, 2017; Trench et al., 2017
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29. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
A localist ‘bottom-up’ effort is required
• We should learn our lessons from the
frontline workers of Rio Tinto and
Virgin Australia at Perth Airport!*
• Social licence is ‘local’ – it requires a
bottom up effort, not a top-down one;
• Hence, why this is a presentation for
mining geologists, not about ‘mining
geology’ (aka. Reviewer 2);
• You and your front line workers
will be leading us into the future…
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* See appendix for explanation of the story (source: Sykes & Trench, 2017d); Images: Virgin Australia; Rio Tinto
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30. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
THANK YOU
Disclaimer
This presentation is based on the underlying conference paper (Sykes et al., 2017), however, some further interpretation is also included in this
presentation which may not reflect the opinion of all the paper authors – in these situations further references is used to direct readers towards the
original source of this interpretation. In turn, whilst the underlying conference paper (Sykes et al., 2017) is based on the outcomes of the Centre for
Exploration Targeting ‘Future of Minerals Exploration’ second expert scenarios workshop, it is the nature of scenarios workshops that not all
participants may agree with all outputs from the workshop and may have their own interpretations.
Acknowledgements
The authors would like to thank the organisers and peer reviewers of the Tenth International Mining Geology Conference 2017 for the opportunity to
present this paper. John Sykes would like to acknowledge the support of the non-authoring member of his PhD supervision team: Nicolas Thebaud (CET,
SES, UWA); as well as the financial support of a Centre for Exploration Targeting ‘Ad hoc’ scholarship and an Australian Government Research Training
Program Scholarship. All the authors would like to thank the participants of the third CET ‘Future of Minerals Exploration’ Scenarios Workshop (details
overleaf). Finally John would like to thank Anita Parbhakar-Fox and Jess Lane for assistance in babysitting his daughter Robyn during this presentation!
Contact Details
John Sykes: john.sykes@research.uwa.edu.au Allan Trench: allan.trench@uwa.edu.au
Campbell McCuaig: Cam.McCuaig@bhpbilliton.com Mark Jessell: mark.jessell@uwa.edu.au
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31. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Scenarios Team
Investigators
• John Sykes: CET, School of Earth Sciences / Business School, UWA
• Allan Trench: Business School / CET, School of Earth Sciences, UWA
• Campbell McCuaig: BHP / CET, School of Earth Sciences, UWA
Participants
• Leila Ben Mcharek: Centre of Muslim States & Societies, UWA
• Rob Bills: Emmerson Resources
• Ivy Chen: CSA Global
• Nick Franey: NFJ Consulting
• Mayara Fraeda: Geology, Geochemistry & Petrology, Federal University of Pará
• Simon Gatehouse: BHP
• Marcelo Godefroy: CET, School of Earth Sciences, UWA
• Isabel Granado: Information Systems & Technology, Curtin University
• Matt Greentree: Ausgold
• Mike Haederle: Rio Tinto
• Mike Hannington: Zelia / Tin Htay International
• Nick Hayward: Teck
• Amanda Hellberg: The Law School, UWA
• Helen Langley: The Law School / Energy & Minerals Institute, UWA
• John Libby: Digirock
• Stuart Masters: CS-2
• Michael Mead: Gold Fields
• Joanne Moo: Environmental Science, UWA
• Suzanne Murray: Billabong Gold
• Ian Satchwell: PerthUSAsia Centre / Northern Territory Govt. / Sustainable
Minerals Institute, UQ / Energy & Minerals Institute, UWA / United Nations
ESCAP
• Afira Tahmali: Environmental Science, UWA
• Marnie Tonkin: Anthropology & Architecture, UWA / Aboriginal Services,
Polytechnic West
• Peter Williams: HiSeis
• Marcus Willson: CSA Global
Participant & Guest speaker
• Janet Sutherland: Business School, Curtin University
Guest speakers
• Caroline Johnson: Environmental Science, UEA
• Adele Millard: Anthropology & Sociology, UWA
• Robert Sills: Sills Strategic Materials / Polar Media
Other Members of John’s PhD Supervision Team
• Mark Jessell: CET, School of Earth Sciences, UWA
• Nicolas Thebaud: CET, School of Earth Sciences, UWA
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32. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Key references
This presentation is based upon the following articles:
• Sykes, J.P., Trench, A., McCuaig, T.C., & Jessell, M., 2017, Charles Dickens on the (potentially) changing role of globalisation and
sustainability in the long-term future of mining and exploration, Tenth International Mining Geology Conference, Hobart (TAS), 20-
22 September, pp 239-256.
• Sykes, J.P., & Trench, A., 2017a, Strictly Boardroom – Mining 2017 – ‘The ghosts of politics past’, MiningNewsPremium.net, 3 January [online]. Available from:
http://www.miningnews.net/insight/strictly-boardroom/mining-2017-the-ghosts-of-politics-past/
• Sykes, J.P., & Trench, A., 2017b, Strictly Boardroom – Mining 2017 – ‘The ghosts of politics present’, MiningNewsPremium.net, 9 January [online]. Available
from: http://www.miningnews.net/insight/strictly-boardroom/mining-2017-the-ghosts-of-politics-present/
• Sykes, J.P., & Trench, A., 2017c, Strictly Boardroom – Mining 2017 – ‘The ghosts of politics yet to come’, MiningNewsPremium.net, 16 January [online]. Available
from: http://www.miningnews.net/insight/strictly-boardroom/mining-2017-the-ghosts-of-politics-yet-to-come/
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33. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Further references
Other relevant references used in this presentation are:
• BHP, 2017, BHP launches Think Big brand campaign, 15 May [online]. Available from: http://www.bhp.com/media-and-insights/news-releases/2017/05/bhp-launches-think-big-brand-campaign
• Dickens, C., 1843, Christmas Carol in Prose, Being a Ghost-Story of Christmas. Chapman and Hall, London, 71p.
• Economist, The, 2016, 225m reasons for China’s leaders to worry, 9 July [online]. Available from: https://www.economist.com/news/leaders/21701760-communist-party-tied-its-fortunes-mass-affluence-may-now-threaten-its-
survival-225m
• Fitzgerald, B., 2017, Sandfire out to make Black Butte beaut, MiningNews.net, 8 March [online]. Available from: http://www.miningnews.net/insight/barry-fitzgerald/sandfire-out-to-make-black-butte-beaut/?adfesuccess=1
• Health and Safety Executive, n.d., The history of HSE [online]. Available from: http://www.hse.gov.uk/aboutus/timeline
• Hurst, B.D., 1951, Scrooge [film]. Renown Pictures, London.
• Katzenbach, J.R., & Beckett, F., 1995, Real Change Leaders: How You Can Create Growth and High Performance at Your Company, Times Business, London, 357p.
• Liker, J.K., 2004, The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer, McGraw-Hill, New York, 330p.
• Mintzberg, H., 1994, Rise and Fall of Strategic Planning, Simon and Schuster, London, 458p.
• Moffat, K., & Zhang, A., 2014, The paths to social licence to operate: An integrative model explaining community acceptance of mining, Resources Policy, 39, pp 61-70.
• Pykett, L., 2002, Charles Dickens. Palgrave, Basingstoke, 218p.
• Radisich, I.F., Trench, A., & Sykes, J.P., 2017a, Strictly Boardroom – Iron ore minerals policy – give Grylls a break!, MiningNews.net, 13 February [online]. Available from: http://www.miningnews.net/insight/strictly-
boardroom/iron-ore-minerals-policy-give-grylls-a-break/
• Radisich, I.F., Trench, A., & Sykes, J.P., 2017b, Strictly Boardroom – Royalty reform: possibility or pipe dream?, MiningNews.net, 15 May [online]. Available from: http://www.miningnews.net/insight/strictly-boardroom/royalty-
reform-possibility-or-pipe-dream/
• Ritzer, G., 1993, The McDonaldization of Society. Pine Forge Press, Thousand Oaks, 221p.
• Robins, B., 2017, BHP to drop ‘Billiton’ in rebranding move, The Sydney Morning Herald, 15 May [online]. Available from: http://www.smh.com.au/business/mining-and-resources/bhp-to-drop-billiton-in-rebranding-move-
20170514-gw4dfz.html
• Seidelman, A.A., 2004, A Christmas Carol: The Musical [film]. Hallmark Entertainment and Mid Atlantic Films, New York.
• Steger, M.B., 2013, Globalization: A Very Short Introduction. Oxford University Press, Oxford, 154p.
• Sykes, J.P., & Trench, A., 2017d, Strictly Boardroom – Building a ‘social licence to operate’? Think small, MiningNews.net, 4 September [online]. Available from: http://www.miningnews.net/insight/strictly-boardroom/building-a-
social-licence-to-operate-think-small/
• Trench, A., & Sykes, J.P., 2017, Strictly Boardroom – Rebranding big mining, MiningNews.net, 5 June [online]. Available from: http://www.miningnews.net/insight/strictly-boardroom/rebranding-big-mining/
• Trench, A., Ulrich, S., & Sykes, J.P., 2017, Strictly Boardroom – On 50% higher gold royalties: ‘Come on referee!’, MiningNews.net, 18 September [online]. Available from: http://www.miningnews.net/insight/strictly-
boardroom/on-50-higher-gold-royalties-come-on-referee/
• Wack, P., 1985, Scenarios: Uncharted waters ahead. Harvard Business Review, 63, 5, pp 73–89.
• Weick, K.E., 1995, Sensemaking in Organizations. Sage Publications, New York, 248p.
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34. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Appendix Part 1
Reproduction of “Building a ‘social licence to operate’? Think small” in the Strictly Boardroom column of MiningNews.net on 4th September 2017 by John Sykes and Allan Trench:
Building a ‘social licence to operate’? Think small
THIS week Strictly Boardroom makes observations of Rio Tinto, BHP, and Virgin Australia in building their ‘social licence to operate’ – and offers due praise.
‘Social licence to operate’ is one of the buzz phrases of the industry at present, yet is a concept that defies succinct definition or easy implementation.1
As the apocryphal definition of pornography goes though, some things are difficult to define, but nonetheless are obvious when you see them. Strictly Boardroom has thus been pleased to
see some ‘social licence’ building over the last few months – at Perth Airport of all places.
In June, Strictly Boardroom spent three-weeks in the UK, visiting family, and showing off a 10-month old daughter. Travelling with a baby has never been a simple task.
Add that enduring truism to the fact that it’s been a good 30+ years since our parents had babies, and with no baby equipment rental available in the UK either, we had to mobilise with
cot, car seat and buggy, in addition to our luggage, and (on the way back) accommodate staggering (but appreciated) volumes of baby clothes and toys purchased as presents by family
and friends.
This is how we found ourselves at Perth airport on a chilly Wednesday night, attempting to board the bus to the long-term car park, with no less than eight substantial pieces of luggage
and boxes, plus of course, babe-in-arms.
The bus that pulled up looked full. However, quicker than our faces had the chance to fall, a group of men jumped off the bus, picked up all the luggage and boxes, promptly stowing
them on the bus and heartily ushering us on.
Upon entering the bus, the prevalence of hi-vis, Oakleys, thongs, beards, tattoos, and an overly jovial nature meant this could only be a group of FIFO workers returning from a swing. A
short conversation with the most ‘beardy’ of the protagonists confirmed that indeed they had just returned from Rio Tinto’s Brockman operations.
After some bus ride conversations about the trials of travelling with babies, this crowd of FIFO workers also helped us off the bus with our over-encumbrance of luggage. To say the least
my wife and I were thankful.
That’s two (and a bit) more people in WA that have a positive view of Rio Tinto.
With mining companies now facing a world where looking after locals is likely to be key to successful operation, these workers are a credit to Rio Tinto (and one assumes they also do
something useful on the operations front too).
… (cont. overleaf)
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35. The (potentially) changing role of globalisation and sustainability in the long-term future of mining
Appendix Part 2
… A month or so later, we found ourselves at Perth airport again, with the same burden of baggage, plus some excellent Hunter Valley wine and a similarly overpacked bus pulling up.
This time it was a more glamourous group of front-line workers helping us with the luggage. Name badges, thick makeup and flashes of bold red told us that it was a Virgin Australia air
crew. Their manner was more of ‘polite professionalism’ than the ‘boisterous enthusiasm’ of Rio Tinto’s front-line, as may be expected; nonetheless, it was equally appreciated.
The air industry is probably one of the few that has a worse reputation amongst the Australian public than mining, so any efforts Virgin Australia can make towards improving its social
licence must be good news for the company.
The point of these anecdotes, other than to thank people when overdue, is to highlight the two broadly contrasting ways one could go about building a social licence to operate (and
indeed developing strategy, catalysing organisational change and so on) – it can either be top down or bottom up.
Despite the efforts of many an organisational theorist,2 top-down remains by far the most popular approach in organisational change and strategy – and is also the default starting point
for more intangible issues, such as sustainability and social licence to operate.
For example, in May, BHP Billiton’s high-level strategic elite announced that after eighteen months of cogitation3 they had decided to shorten its name to BHP, to improve its reputation in
Australia, and thus boost its social licence to operate.
One assumes that Rio Tinto and Virgin Australia probably have similar high-level corporate teams devoted to such activities too.
However, one must wonder whether the corporate professionals or the front-line workers have it right in this case. The whole point of social licence to operate is that it involves and
embraces the local community – so surely it must also be instigated and implemented at a local level too?
Indeed, I’m sure we can all identify positive local activities by mining companies, from the aspirational (the MBA scholarships sponsored by BHP at UWA) to the simply practical (air-
conditioning for the local scout hut paid for by the Kalgoorlie Superpit).
However, many of these positives remain uncommunicated. Maybe, BHP’s next promotional campaign could encourage us all to ‘Think Small’, as well as to “Think Big”?4
For most corporate-sized conundrums, the key to their solution is usually to identify and then implement just the ‘critical few’ approaches that matter (Thinking Big) – and to disregard
the ‘trivial many’ approach to the business challenge that results in lost focus (Thinking Small).
In contrast however, in the matter of social licence to operate, there are only the ‘critical many’ – so there are no short-cuts – and for which many hands make lighter work. Perhaps, big
miners and airlines alike should follow the lead of their front-line workers on this issue? A kind of ‘Toyota Way’ for social licence building.5
Good hunting.
Refs: 1 – Moffat & Zhang, 2014; 2 – Katzenbach & Beckett, 1995; Mintzberg, 1994; 3 – Robins, 2017; 4 – BHP, 2017; 5 – Liker, 2004.
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