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

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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Tenth International Mining Geology Conference: Hobart, TAS

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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Tenth International Mining Geology Conference: Hobart, AustraliaSlide 2 of 35

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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Tenth International Mining Geology Conference: Hobart, Australia

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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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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Tenth International Mining Geology Conference: Hobart, Australia

Sources: Sykes et al., 2017; Sykes & Trench, 2017a, 2017b, 2017c

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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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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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Tenth International Mining Geology Conference: Hobart, Australia

Image: John Sykes; Sources: Weick, 1995; Sykes et al., 2017; Sykes & Trench, 2017a, 2017b, 2017c

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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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Tenth International Mining Geology Conference: Hobart, Australia

Share

d V

alu

e

Eco

nom

ic Valu

e

Globalism

Localism

Cratchit

Fezziwig

Scrooge

Marley

Sources: Dickens, 1843; Weick, 1995; Sykes et al., 2017; Sykes & Trench, 2017a, 2017b, 2017c

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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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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 WarSo

ciali

stC

ap

italist

Australian Labor,

UK Labour,

US Democrats

Australian Liberals,

UK Conservatives,

US RepublicansFree 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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The (potentially) changing role of globalisation and sustainability in the long-term future of mining

The ‘left’ was joined by a range of ‘progressives’Pro

gre

ssiv

eC

on

servativ

e

Australian Labor,

UK Labour,

US Democrats

Australian Liberals,

UK Conservatives,

US RepublicansGlobalist

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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The (potentially) changing role of globalisation and sustainability in the long-term future of mining

Then many ‘progressives’ went ‘global’

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Pro

gre

ssiv

eC

on

servativ

e

Rudd & Gillard Labor

Australian Liberals,

UK Conservatives,

US RepublicansGlobalist

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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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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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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Tenth International Mining Geology Conference: Hobart, Australia

Pro

gre

ssiv

eC

on

servativ

e

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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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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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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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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The (potentially) changing role of globalisation and sustainability in the long-term future of mining

We see the characters of the future in the presentPro

gre

ssiv

eC

on

servativ

e

Globalist

Localist

Fezziwig Marley

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Contemporary ‘Western’ politics

ScroogeCratchit

Sources: Sykes et al., 2017

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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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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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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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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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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 UKImage: historylearningsite.co.uk; Sources: Pykett, 2012; Sykes et al., 2017; Sykes & Trench, 2017c; Health and Safety Executive, n.d.

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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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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 CratchitSource: Sykes et al., 2017; Sykes & Trench, 2017c

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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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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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Tenth International Mining Geology Conference: Hobart, Australia

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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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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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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Tenth International Mining Geology Conference: Hobart, Australia

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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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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Tenth International Mining Geology Conference: Hobart, Australia

* See appendix for explanation of the story (source: Sykes & Trench, 2017d); Images: Virgin Australia; Rio Tinto

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The (potentially) changing role of globalisation and sustainability in the long-term future of mining

THANK YOUDisclaimer

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: [email protected] Allan Trench: [email protected]

Campbell McCuaig: [email protected] Mark Jessell: [email protected]

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The (potentially) changing role of globalisation and sustainability in the long-term future of mining

Scenarios TeamInvestigators

• 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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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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The (potentially) changing role of globalisation and sustainability in the long-term future of mining

Further referencesOther 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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The (potentially) changing role of globalisation and sustainability in the long-term future of mining

Appendix Part 1Reproduction of “Building a ‘social licence to operate’? Think small” in the Strictly Boardroom column of MiningNews.net on 4 th 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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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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