An Analysis of the Structure and Culture of Strategic Mining Solutions in the Context of the External Environment with Respect to Future Challenges and Recommended Changes
Essay Preview: An Analysis of the Structure and Culture of Strategic Mining Solutions in the Context of the External Environment with Respect to Future Challenges and Recommended Changes
Report this essayEXECUTIVE SUMMARYStrategic Mining (SM) is capable of converting challenges into opportunities, as evaluated in the context of the company expanding its operations into Africa. The company promotes a participative management style which greatly benefits communication at all levels. The Directors of SMÐŽ¦s Board are technically and managerially highly skilled and are therefore in a position to manage company resources efficiently and unambiguously.
A co ÐŽV operative culture exists in the company. This feature is developed from the companyÐŽ¦s core value principle of integrity. This ideal has been the passport to SMÐŽ¦s current successes and which will remain the yardstick by which staff measure themselves in a competitive environment. A cultural meltdown is not expected now or in the foreseeable future.
Key challenges that the company will face are:Competitors. An increased competitor base due to the booming resources sector.Clients / Broker. Corruption, nepotism among African resource brokering agents.Economic down ÐŽV swing. Sudden collapse / market adjustment to certain metals markets.Political uncertainty. Local and African leadership under the spotlight. Will the mining protocol continue to unravel itself and will this incomplete model be co ÐŽV opted by our African partners.
In its current form, SM has a flat structure which is Service orientated. This structure is in a state of evolution and is now adapting the style of a Matrix ÐŽV type structure. This structure will need to be revamped in order to meet the challenges of tomorrow. Personal agendas and power ÐŽV mongering might see the polarization of subsidiary companies. To this end, a Hedral model of company structure has been postulated that, hopefully, will render subsidiary companies closely intertwined with SM, at least at the technical level. The corporate ethos of the Group of Companies will still remain that of integrity.
Changes in the external environment are inevitable, it is a dynamic and on going process, and the structure of SM will accordingly realign itself to benefit from those changes. The internal environment is robust and adaptable, thanks to a strong management team that encourages staff involvement in growing the business.
TABLE OF CONTENTSEXECUTIVE SUMMARY1 INTRODUCTIONTHE STRUCTURE & CULTURE OF STRATEGIC MININGAnalysis of Structure and the External Environment2.1.1New competitors2.1.2The client as a broker2.1.3Economic down-swing2.1.4Political instabilityAnalysis of the Internal Environment with Culture as a FocusAN EVALUATON OF THE STRUCTURE & CULTURE OF STRATEGIC MINING3.1 Generalized Organizational Responses to Change3.1.1 Top Management:3.1.2 Middle Management:3.1.3 Employees/Workers/Associates:RECOMMENDATIONSCONCLUDING REMARKSACKNOWLEDGEMENTSREFERENCESTABLE OF FIGURESFigure 1 – Service Structure of Strategic MiningFigure 2 – Matrix Structure of Strategic Mining (Evolving)Figure 3 – Strategic Mining OrganogramFigure 4 – Generalised Organizational Responses to ChangeFigure 5 – The Hedral Model1. INTRODUCTIONA mineral resource should not lie dormant in the ground; instead it should be extracted and beneficiated and the resultant commodity sold to create wealth. This sequence of events – what we mining people refer to as the ÐŽ§mining value chainÐŽÐ ÐŽV is a complex fabric of interlocking disciplines that eventually culminates in the winning of the mineral resource. In instances, the mining value chain is compromised, not only from geological uncertainty and mining difficulty, but from social, environmental and political factors. This situation greatly increases the risk portfolio of exploration companies and as a result the ability of management to raise adequate funding is practically nil. The situation is equally bleak for established mining companies where shareholder value cannot be sustained or grown.
The current global resources industry is growing exponentially, this on the back of renewed investor confidence and, more importantly, the insatiable appetite of China and India. In order to satisfy this hunger, international mining companies, giants and juniors alike, are re-looking Africa with a ÐŽ§twinkle and dollar in each eye. Africa has a remarkable diversity of mineral wealth, ranging from oil and gas, base metals, precious metals and gemstones, etc. However, in many African countries these resources lie dormant in the earth, destined seemingly never to be mined due to the selfish nature of political leaders and the associated draconian laws that accompany that unique mindset.
I believe that if ever an opinion had to be expressed it should be ÐŽ§the solution to AfricaÐŽ¦s poverty lies in the groundÐŽÐ. The extraction of that solution is the means to unshackling the continent. Mining consultants are expected to provide ÐŽ§top drawerÐŽÐ solutions as well as delivering into and managing the expectations of investors. This is not a simple task, especially on a continent that has a legacy of political, ethnic and socio ÐŽV economic problems and which has a tendency for short term economic gain. Therefore, it is extremely important for companies like SM to be synchronized with the mining pulse of Africa in order to honour its commitment to integrity and service excellence. A dynamic mining industry requires that
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© 2016
A group of experts, including COO and Board member and Director-General of SM, the Chairman-CEO of the International Mining Board of Australia, the Minister for Rural Development, Minister for Land acquisition and the Director of the Government of India, and members of the SM board and mining consultants and mining consultants of the Chinese industry have made it clear that a major shift from mining-intensive industries to mining-intensive investment areas will require a shift towards rural development that is inclusive, diversified and sustainable, and is not affected by external influences. A series of key initiatives have been taken to ensure this aim is achieved through these initiatives.
• In response to feedback from the media, the SM Board has adopted a public comment policy which makes clear that the Board will consider the comments raised by our community members as part of its deliberations. This policy, which we acknowledge is a process and not a product, incorporates an inclusive approach of consultation with stakeholders across the SM sector and is a welcome step towards promoting our vision for a world where a stable, sustainable and harmonious global mining sector is central to the SM’s long-term prosperity.
• In response to the views expressed below regarding the development and impacts of new coal projects in Queensland, we believe that the development landscape for coal will be very different from the landscape for the current coal project in Queensland and all of the projects we plan on developing in other key projects in the region. These projects are also being developed in other parts of the Commonwealth, the Middle East and South China Seas, where we will also be working closely with other energy stakeholders to seek out opportunities to build on the success of these coal projects.
• We are confident that the decision to move forward with developments involving new coal in Queensland and all of our other coal or offshore projects will take precedence and will strengthen the commitment of Australia’s mining and energy leaders to further Australian competitiveness. In particular, Australian mining groups will continue to want to see progress made in the Australian energy sector as we continue to see a dramatic impact. However, we will have to ensure that we will ensure that other global coal projects see a significant and sustained reduction in costs, as we see Australia’s future growth as a global leader and as a global provider of energy and clean energy opportunities while also providing opportunities for other countries to develop their own resources and to make a contribution to the Australian energy mix. This involves all sectors of our economy, including development and energy industry. We will also be working closely with stakeholders around Australia to be able to help the Minister and board members ensure Australia’s progress towards Australia’s 2030s energy sustainability targets are being met.
While the decision to move ahead with this development is being taken at the highest level and has been confirmed by our community, it comes at the same time that Australia will undertake a large, broad and sustained investment programme in our key energy sectors so that the transition towards a globally competitive and sustainable energy sector is within our reach and that our economy and energy security continue to be one of the main threats facing Australia as a whole. This is a national priority for the Queensland government and is being taken as the basis for our strategy to take a new approach to energy investment.
In 2017 we published an ongoing assessment which we believe represents a significant commitment to Australia’s energy independence and will continue to address many of the long-lasting and long-term risks that Australia faces in its future development prospects and competitiveness.
• In response to the views provided in the
The SM’s board members have agreed to further develop a ‘Mining Policy Plan’ that will support Australian and Indian mining investment portfolios to move towards better quality mining-intensive services, including to create a workforce that is competitive and capable of sustaining and delivering high-quality services, including:
– providing leadership, expertise and expertise in the Australian and Indian mining industries to meet local demand
– ensuring sustainable and equitable mining-related investment in Australian and Indian markets
– helping to create a workforce with the “power and flexibility” needed to deliver a highly competitive environment for competitive mining operations.
SM staff in the Government, including those in the mine-related sub-markets, have agreed to a working group of a wide range of stakeholders to assist them in their respective efforts to address the challenges that the mining industry has experienced over the last 40 years, including the challenges we face in protecting the public’s resources, maintaining the integrity of our international infrastructure, and providing better access to capital, as set out in the plan – the Australian and Indian Mining Industry.
We look forward to engaging the SM in greater depth in this effort and supporting its decision-making in the spirit of our shared vision, that is, with Australia’s first National Strategy for Mining Investments, the first National Strategic Minerals Strategy and our shared vision for future Australian and Indian investment into the mining industry. This is likely to produce a range of outcomes, but also represents a significant achievement for Australian companies and Australia’s long term economic success as a global centre of supply chain excellence. The decision to expand our mining portfolio into smaller minerals has been met by great enthusiasm, and our efforts to enhance international mining business as a whole, as well as to bring in more resources for Australian mining in order to deliver the highest long term value of our investment in mining, have been met with mixed reactions. In the past year, we’ve taken significant action to support our miners and businesses, including the National Strategy to Invest in Australia’s Mineral Value Trust which is being presented in Adelaide at the Australian Society for the Mining Industry’s 2016 Annual Meeting (ASMIR). The ASMIR will then be broadcast on AM.
•
In addition to the review, the government has undertaken a number of initiatives to support a national policy framework for Australian and Indian mineral resources in the 21 st Century:
– the Government’s Mineral Quality Assessments (QLSA) has worked collaboratively with the Government’s Regional Gold and Silver Industry Network (RGSNI), the Australian Bureau of Mines Mineral Survey (ASMC) has developed a strategic plan to support and explore new projects in the Australian and Indian mineral areas, and the Government has embarked on this year’s RGSNI and ASMC-Mining Plan Review, which proposes to pursue Australian-Indian mining projects and develop a plan for
The SM’s board members have agreed to further develop a ‘Mining Policy Plan’ that will support Australian and Indian mining investment portfolios to move towards better quality mining-intensive services, including to create a workforce that is competitive and capable of sustaining and delivering high-quality services, including:
– providing leadership, expertise and expertise in the Australian and Indian mining industries to meet local demand
– ensuring sustainable and equitable mining-related investment in Australian and Indian markets
– helping to create a workforce with the “power and flexibility” needed to deliver a highly competitive environment for competitive mining operations.
SM staff in the Government, including those in the mine-related sub-markets, have agreed to a working group of a wide range of stakeholders to assist them in their respective efforts to address the challenges that the mining industry has experienced over the last 40 years, including the challenges we face in protecting the public’s resources, maintaining the integrity of our international infrastructure, and providing better access to capital, as set out in the plan – the Australian and Indian Mining Industry.
We look forward to engaging the SM in greater depth in this effort and supporting its decision-making in the spirit of our shared vision, that is, with Australia’s first National Strategy for Mining Investments, the first National Strategic Minerals Strategy and our shared vision for future Australian and Indian investment into the mining industry. This is likely to produce a range of outcomes, but also represents a significant achievement for Australian companies and Australia’s long term economic success as a global centre of supply chain excellence. The decision to expand our mining portfolio into smaller minerals has been met by great enthusiasm, and our efforts to enhance international mining business as a whole, as well as to bring in more resources for Australian mining in order to deliver the highest long term value of our investment in mining, have been met with mixed reactions. In the past year, we’ve taken significant action to support our miners and businesses, including the National Strategy to Invest in Australia’s Mineral Value Trust which is being presented in Adelaide at the Australian Society for the Mining Industry’s 2016 Annual Meeting (ASMIR). The ASMIR will then be broadcast on AM.
•
In addition to the review, the government has undertaken a number of initiatives to support a national policy framework for Australian and Indian mineral resources in the 21 st Century:
– the Government’s Mineral Quality Assessments (QLSA) has worked collaboratively with the Government’s Regional Gold and Silver Industry Network (RGSNI), the Australian Bureau of Mines Mineral Survey (ASMC) has developed a strategic plan to support and explore new projects in the Australian and Indian mineral areas, and the Government has embarked on this year’s RGSNI and ASMC-Mining Plan Review, which proposes to pursue Australian-Indian mining projects and develop a plan for
The IEA and PIM have been involved in the work of the Advisory Council for Indigenous and Indigenous Research and a large number of stakeholders have been involved both in the assessment of the IEA’s policies and other initiatives undertaken. As a result the IEA takes particular, long-term leadership positions in many regions, as a result of its responsibility to ensure that Australia does not become an investor in a mining sector that does not have a sustainable economic and political position.
In addition to the current IEA and PIM advisory panels, SM has also entered into agreements and arrangements with other stakeholders in order to provide its management with guidance and, in doing so, to build broad and timely action within the industry. This is happening alongside the IEA Advisory Council which is the first fully integrated and fully active consultation panel on mining and the IEA’s policy, guidance, and engagement in such areas as:
• Government of India Investment in Mining Infrastructure (GISI) and development and development (DTIs)
• China International Investment Strategy and Development Review (CIDR)
• International mining enterprise development (IEEO) of Australia
• Asian Development Bank Asian Infrastructure Reform
And finally, in support of this work SM has issued advice to the IEA and PIM and has signed a Memorandum of Understanding with the Australian National Infrastructure Authority in accordance with article 44 of IAUF:
A Memorandum of Understanding on the Australian National Infrastructure Authority
SM is committed to ensuring that a diverse and integrated mine-industry is created. To this end our group has agreed to provide investment into two complementary areas: infrastructure development and investment in technology development.
The agreement of the Australian National Infrastructure Authority:
• Infrastructure development
• Investment in the Australian National Infrastructure Authority (ANIA), an international initiative to promote the development and use of infrastructure
The Memorandum of Understanding on Infrastructure Development and Investment in Technology (MFIA) is signed with the Australian Bureau of Excise
As regards the project to infrastructure and infrastructure in NSW and
ØP/ØC
ÆŽC/ØF
© 2016
A group of experts, including COO and Board member and Director-General of SM, the Chairman-CEO of the International Mining Board of Australia, the Minister for Rural Development, Minister for Land acquisition and the Director of the Government of India, and members of the SM board and mining consultants and mining consultants of the Chinese industry have made it clear that a major shift from mining-intensive industries to mining-intensive investment areas will require a shift towards rural development that is inclusive, diversified and sustainable, and is not affected by external influences. A series of key initiatives have been taken to ensure this aim is achieved through these initiatives.
• In response to feedback from the media, the SM Board has adopted a public comment policy which makes clear that the Board will consider the comments raised by our community members as part of its deliberations. This policy, which we acknowledge is a process and not a product, incorporates an inclusive approach of consultation with stakeholders across the SM sector and is a welcome step towards promoting our vision for a world where a stable, sustainable and harmonious global mining sector is central to the SM’s long-term prosperity.
• In response to the views expressed below regarding the development and impacts of new coal projects in Queensland, we believe that the development landscape for coal will be very different from the landscape for the current coal project in Queensland and all of the projects we plan on developing in other key projects in the region. These projects are also being developed in other parts of the Commonwealth, the Middle East and South China Seas, where we will also be working closely with other energy stakeholders to seek out opportunities to build on the success of these coal projects.
• We are confident that the decision to move forward with developments involving new coal in Queensland and all of our other coal or offshore projects will take precedence and will strengthen the commitment of Australia’s mining and energy leaders to further Australian competitiveness. In particular, Australian mining groups will continue to want to see progress made in the Australian energy sector as we continue to see a dramatic impact. However, we will have to ensure that we will ensure that other global coal projects see a significant and sustained reduction in costs, as we see Australia’s future growth as a global leader and as a global provider of energy and clean energy opportunities while also providing opportunities for other countries to develop their own resources and to make a contribution to the Australian energy mix. This involves all sectors of our economy, including development and energy industry. We will also be working closely with stakeholders around Australia to be able to help the Minister and board members ensure Australia’s progress towards Australia’s 2030s energy sustainability targets are being met.
While the decision to move ahead with this development is being taken at the highest level and has been confirmed by our community, it comes at the same time that Australia will undertake a large, broad and sustained investment programme in our key energy sectors so that the transition towards a globally competitive and sustainable energy sector is within our reach and that our economy and energy security continue to be one of the main threats facing Australia as a whole. This is a national priority for the Queensland government and is being taken as the basis for our strategy to take a new approach to energy investment.
In 2017 we published an ongoing assessment which we believe represents a significant commitment to Australia’s energy independence and will continue to address many of the long-lasting and long-term risks that Australia faces in its future development prospects and competitiveness.
• In response to the views provided in the
The SM’s board members have agreed to further develop a ‘Mining Policy Plan’ that will support Australian and Indian mining investment portfolios to move towards better quality mining-intensive services, including to create a workforce that is competitive and capable of sustaining and delivering high-quality services, including:
– providing leadership, expertise and expertise in the Australian and Indian mining industries to meet local demand
– ensuring sustainable and equitable mining-related investment in Australian and Indian markets
– helping to create a workforce with the “power and flexibility” needed to deliver a highly competitive environment for competitive mining operations.
SM staff in the Government, including those in the mine-related sub-markets, have agreed to a working group of a wide range of stakeholders to assist them in their respective efforts to address the challenges that the mining industry has experienced over the last 40 years, including the challenges we face in protecting the public’s resources, maintaining the integrity of our international infrastructure, and providing better access to capital, as set out in the plan – the Australian and Indian Mining Industry.
We look forward to engaging the SM in greater depth in this effort and supporting its decision-making in the spirit of our shared vision, that is, with Australia’s first National Strategy for Mining Investments, the first National Strategic Minerals Strategy and our shared vision for future Australian and Indian investment into the mining industry. This is likely to produce a range of outcomes, but also represents a significant achievement for Australian companies and Australia’s long term economic success as a global centre of supply chain excellence. The decision to expand our mining portfolio into smaller minerals has been met by great enthusiasm, and our efforts to enhance international mining business as a whole, as well as to bring in more resources for Australian mining in order to deliver the highest long term value of our investment in mining, have been met with mixed reactions. In the past year, we’ve taken significant action to support our miners and businesses, including the National Strategy to Invest in Australia’s Mineral Value Trust which is being presented in Adelaide at the Australian Society for the Mining Industry’s 2016 Annual Meeting (ASMIR). The ASMIR will then be broadcast on AM.
•
In addition to the review, the government has undertaken a number of initiatives to support a national policy framework for Australian and Indian mineral resources in the 21 st Century:
– the Government’s Mineral Quality Assessments (QLSA) has worked collaboratively with the Government’s Regional Gold and Silver Industry Network (RGSNI), the Australian Bureau of Mines Mineral Survey (ASMC) has developed a strategic plan to support and explore new projects in the Australian and Indian mineral areas, and the Government has embarked on this year’s RGSNI and ASMC-Mining Plan Review, which proposes to pursue Australian-Indian mining projects and develop a plan for
The SM’s board members have agreed to further develop a ‘Mining Policy Plan’ that will support Australian and Indian mining investment portfolios to move towards better quality mining-intensive services, including to create a workforce that is competitive and capable of sustaining and delivering high-quality services, including:
– providing leadership, expertise and expertise in the Australian and Indian mining industries to meet local demand
– ensuring sustainable and equitable mining-related investment in Australian and Indian markets
– helping to create a workforce with the “power and flexibility” needed to deliver a highly competitive environment for competitive mining operations.
SM staff in the Government, including those in the mine-related sub-markets, have agreed to a working group of a wide range of stakeholders to assist them in their respective efforts to address the challenges that the mining industry has experienced over the last 40 years, including the challenges we face in protecting the public’s resources, maintaining the integrity of our international infrastructure, and providing better access to capital, as set out in the plan – the Australian and Indian Mining Industry.
We look forward to engaging the SM in greater depth in this effort and supporting its decision-making in the spirit of our shared vision, that is, with Australia’s first National Strategy for Mining Investments, the first National Strategic Minerals Strategy and our shared vision for future Australian and Indian investment into the mining industry. This is likely to produce a range of outcomes, but also represents a significant achievement for Australian companies and Australia’s long term economic success as a global centre of supply chain excellence. The decision to expand our mining portfolio into smaller minerals has been met by great enthusiasm, and our efforts to enhance international mining business as a whole, as well as to bring in more resources for Australian mining in order to deliver the highest long term value of our investment in mining, have been met with mixed reactions. In the past year, we’ve taken significant action to support our miners and businesses, including the National Strategy to Invest in Australia’s Mineral Value Trust which is being presented in Adelaide at the Australian Society for the Mining Industry’s 2016 Annual Meeting (ASMIR). The ASMIR will then be broadcast on AM.
•
In addition to the review, the government has undertaken a number of initiatives to support a national policy framework for Australian and Indian mineral resources in the 21 st Century:
– the Government’s Mineral Quality Assessments (QLSA) has worked collaboratively with the Government’s Regional Gold and Silver Industry Network (RGSNI), the Australian Bureau of Mines Mineral Survey (ASMC) has developed a strategic plan to support and explore new projects in the Australian and Indian mineral areas, and the Government has embarked on this year’s RGSNI and ASMC-Mining Plan Review, which proposes to pursue Australian-Indian mining projects and develop a plan for
The IEA and PIM have been involved in the work of the Advisory Council for Indigenous and Indigenous Research and a large number of stakeholders have been involved both in the assessment of the IEA’s policies and other initiatives undertaken. As a result the IEA takes particular, long-term leadership positions in many regions, as a result of its responsibility to ensure that Australia does not become an investor in a mining sector that does not have a sustainable economic and political position.
In addition to the current IEA and PIM advisory panels, SM has also entered into agreements and arrangements with other stakeholders in order to provide its management with guidance and, in doing so, to build broad and timely action within the industry. This is happening alongside the IEA Advisory Council which is the first fully integrated and fully active consultation panel on mining and the IEA’s policy, guidance, and engagement in such areas as:
• Government of India Investment in Mining Infrastructure (GISI) and development and development (DTIs)
• China International Investment Strategy and Development Review (CIDR)
• International mining enterprise development (IEEO) of Australia
• Asian Development Bank Asian Infrastructure Reform
And finally, in support of this work SM has issued advice to the IEA and PIM and has signed a Memorandum of Understanding with the Australian National Infrastructure Authority in accordance with article 44 of IAUF:
A Memorandum of Understanding on the Australian National Infrastructure Authority
SM is committed to ensuring that a diverse and integrated mine-industry is created. To this end our group has agreed to provide investment into two complementary areas: infrastructure development and investment in technology development.
The agreement of the Australian National Infrastructure Authority:
• Infrastructure development
• Investment in the Australian National Infrastructure Authority (ANIA), an international initiative to promote the development and use of infrastructure
The Memorandum of Understanding on Infrastructure Development and Investment in Technology (MFIA) is signed with the Australian Bureau of Excise
As regards the project to infrastructure and infrastructure in NSW and