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Ähnlich wie Opportunities for Innovation, presented by John Thompson at 2013 CMIC Signature Event
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Opportunities for Innovation, presented by John Thompson at 2013 CMIC Signature Event
- 1. Opportunities for Innovation John Thompson Canada Mining Innovation Council 1
- 2. Outline • Canada’s mining industry – contributions and challenges • Solutions – the CMIC role • CMIC – progress, current approach and new ideas • Big challenges, opportunities, drivers and benefits 2
- 3. Canada’s mining industry Current status •Globally significant producer • Aluminum, diamonds, nickel, potash, sulphur, titanium, uranium + important coal, copper, gold, molybdenum, platinum, silver, zinc and specialty metals •Over 320,000 well-paid jobs (wages 59% above average) •Major employer: northern Canadians and Aboriginal people •3,200 suppliers and contract companies •2011 contributions: $35.6B to GDP, > $9B to taxes and royalties, $102B in exports (>20% of total) •Major face of Canada abroad: exploration,operations, financing •Historical leader in mining-related education, research and technology development – key centres active across the country 3
- 4. A recent report Canadian Chamber of Commerce report 2012 •Demonstrated leadership •Powers significant parts of the economy Recognized issues – Skills crisis – Finance and taxation – staying ahead of competition – Infrastructure – physical, knowledge-based (geoscience) and policy – Innovation and new technology – Social license and regulatory environment 4
- 5. Other comments Deloitte “Top Ten” mining trends for 2013 •Increasing costs •Lack of quality projects •Skills shortage •Improving the safety culture •Need for implementing new technology Pierre Lassonde – “RoundUp Conference, 2013” •On quality: “…lowering cut-off grades to chase production…the next cut- off grade is called ‘dirt’…” •On margins: “…capital and operating costs have just ballooned, and the margin and free cash flow have not increased with gold price…” •On technology: “...Where are the new processing technologies? … Where are you guys? The companies are not spending enough money on research and development…” •Comparisons to the oil industry – lamented the mining industry 5
- 6. Competition Global competition in the resource sector •Exploration expenditure – relates to probability of discovery •Cost effective operations – in the lower quartiles •Percentage of critical export markets •R&D – innovation: services, products and exports Major competitors Mining and quarrying R&D expenditures •Australia − GA, CSIRO, CRCs … − BHPB, Rio Tinto •EU – Finland, Sweden •Chile 6 Source: OECD Statistics: Business Enterprise Expenditure by Industry
- 7. Canadian challenges Resources and reserves – medium to long term •The Canadian industry needs new quality discoveries •Exploration is becoming more challenging and more expensive – working in remote areas and at depth Development – short to long term •Infrastructure challenges – access to the north •Local challenges – far north, deep deposits •Cost escalation, delays and competition 7
- 8. Canadian challenges Productivity – short to medium term •Canadian operations going deeper, moving more rock and handling more waste/tailings – for less product (lower grade) Increased costs and cost per unit of production •Global market with escalating costs (materials, labour, power) •Operating excellence and best practices delivering continuous improvement – but not addressing underlying issues 8
- 9. Canadian challenges Energy, Environment and Safety – short to long term •Require the highest standards of safety and environmental performance – constant improvement •The industry is energy and water intensive – focus on energy reduction, emission reduction, water management •Closure and reclamation - sustainability People – short to medium term •Shortage of critical personnel – exacerbated by retiring boomers •Maintain/increase educational capacity and training 9
- 10. Innovation challenges Barriers to innovation •Industry: capital intense, large scale/high volume and risk averse – limited focus on long term problems •Mining diversity across Canada with dispersed supporting research organizations – natural variability inhibits innovation •Engagement among industry, academia and government; with other technology sectors; with broader stakeholders •Reduced cash flows may limit innovation and funding at the time when changes are most needed 10
- 11. Solutions CMIC – Pan-Canadian organization to: •Engage industry to prioritize challenges •Work with government to facilitate innovation and deliver results across Canada •Reach out to researchers and SMEs – building from strength and enhancing commercialization •Focus on developing programs based on solutions and new technologies – funded at an effective level •Support increased capacity to develop people – HQP •Communicate the Canadian innovation agenda nationally and internationally 11
- 12. Progress • Formed in 2007 – collaboration between industry, government and academia • Endorsed by Energy & Mines Ministers Conference in 2008 • National partners: NRCan, CIM, MAC and PDAC • 85 members, including most mining companies, most mining- related universities, the federal government, most provinces and one territory, consultants, and research labs • Good progress in the development of strategic priorities • First major project (in exploration) submitted for co-funding by industry and NSERC, $12M – to address declining reserves • Other major proposals being prepared in mining, mineral processing, energy and environmental stewardship 12
- 13. CMIC – on track Entering the growth phase • Transition to the new Executive Director • Organization: governance, office, staffing Developing programs • Organized by discipline and major issues • Exploration success – setting the bar Working with partners – “Collaboration is the key” • Vital roles – experience, talent pools, educational capacity • Centres – varying business/discipline/regional focus • Individual researchers and technology companies (SMEs) • Latest partner: IMII – Saskatchewan: David Grier 13
- 14. Current approach • Six industry-led initiative committees • Success with Exploration – model for engagement and focus Highly Qualified Personnel Highly Qualified Personnel Environmental Stewardship Exploration Exploration Mining Mining Processing Processing Tailings Tailings Reclamation Reclamation Energy Efficiency Energy Efficiency Prioritizing themes Footprints Project •Safety •Discovery criteria •Deep/northern mining •Discovery Technology •Fragmentation & comminution •Data to knowledge •Improved selectivity •Energy reduction; alternative fuels •Minimizing footprints 14
- 15. Return on Investment Successful programs – returns in $millions/operation – Contributions to new discoveries - $10s-100s – Improved mine design – reduced CAPEX (10%) - $100s – Increased performance (>5%) - $10s – Energy reduction (~25%) - $100s Other benefits • Improved safety and reduced environmental impacts • Employment and a new pool of Canadian talent • Well funded R&D/education – universities and colleges • New technology sectors – enhanced reputation • Ongoing national prosperity 15
- 16. CMIC – acceleration Successful model but taking too long • Exploration program: 2 years to develop – “fast”! Discipline focus • Effective starting position • Potential for silos and overlap – may hinder innovation Thematic focus • Energy – important but complex • HQP and Environmental stewardship – making progress Alternatives • Program Directors • More efficient use of volunteers • New approaches Funding • Reality check 16
- 17. Business process Market Inventory Smelting – Discovery Smelting – Exploration Discovery refining Exploration refining Evaluation Evaluation ? PP eeo opp Development Development Bulk lee l –– Intermediate PP oow we Extraction Processing er r– Extraction Processing –W “Pure” W aat tee Innovation r r( Waste Waste (s soo Specific & cici Management Management aa l lli l Integrated ciee c nn Solutions see s ) Closure Closure ) Reclamation Reclamation Technology 17 Data Knowledge
- 18. Focus on the challenges Resource depletion • Accelerate discovery: target recognition/evaluation & drilling HQP – Skills – Sustainability HQP – Skills – Sustainability Designing and building cost effective operations • Planning for the future (10-50 years) • Capture “geomet” data for design – minimize footprint Operating to increase productivity and decrease impact • Safety: deep underground and large open pit • Smart mining: selectivity, fragmentation & material handling • Clean processing: selectivity, energy efficient comminution, waste rejection, mine to product (value add), in situ mining Enhancing environmental stewardship • Waste/tailings management • Reduced impacts: water, air, biodiversity, and people 18
- 19. Innovation drivers BHAG – define the desired result • The ideal mining operations for 2035 and beyond • The changes in technology and human capital required to meet these goals • The actions needed to produce these changes − Engagement, consensus and prioritization − Program definition and funding models Outcomes – for Canada and the Canadian industry • New high quality resources – long term sustainability • Leading mine designs with supportive communities • Productive operations in the lowest cost quartile – revenue • Global leadership in environmental stewardship • Contributions from multiple sectors, SMEs and innovators 19
- 20. Opportunity for Canada Global mining • Required to meet societal needs • Development/production issues will limit long term supply • Recognition of challenges – competitive search for solutions Canadian mining industry • Major contributor to Canada • Doing OK – successful companies and institutions • Increasing challenges – the squeeze is coming It takes time to • Change the mining industry • Create and fund new programs • Develop talent and new mining tech clusters and sectors We need to start now! 20
- 21. CMIC action items • Welcome the new Executive Director – Carl Weatherell • Optimize the organization – program directors and staff • Enhance program development • Focus on the big issues – drive multidisciplinary and life cycle business approaches • Evaluate all funding models – sustainable business model – Industry, governments and partners – Foundation and innovative funds – Program delivery methods • Enhance the effectiveness of our volunteer pool • Tell the story – communication and branding 21
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- 23. CMIC Members in 2012 3M Cliffs Natural Resources LookNorth Abitibi Géophysique Consortium de recherche en ressources McGill University Adriana Resources minérales Memorial University of Newfoundland Advanced Applied Physics Solutions De Beers Canada Mining Association of Canada Agnico-Eagle Denison Mines Corp. Mira Geoscience Ltd. Altius DGI Geoscience Inc. Mirarco Anglo-American DIVEX National Research Council Arcelor-Mittal École Polytechnique Natural Resources Canada Barrick Gold Corporation Franklin Geosciences Ltd. New Millennium Capital Corp. Boart Longyear Fugro Airborne Surveys Corp Oil Sands Tailings Consortium Cambrian College Gedex Osisko Mining Corporation Cameco Golden Star Resources Prospectors & Developers Association of Canada Canadian Association of Mining Golder Associates Queen's University Equipment & Services for Export Gold Fields RD Corporation - NL Canadian Institute of Mining, Goldcorp Saskatchewan Research Council Metallurgy & Petroleum Hatch Shore Gold Canadian Light Source HudBay Minerals Inc. SNC-Lavalin Canadian Mining Industry IAMGold Corporation SRK Consulting (Canada) Research Organization Centre for Inmet Mining Teck Excellence in Mining Innovation Kingston Process Metallurgy Université du Québec à Montréal Kinross Gold Corporation Université du Québec en Abitibi-Témiscamingue Laboratoire international de géophysique minière University of Alberta Laurentian University University of British Columbia Laval University University of Manitoba University of New Brunswick University of Saskatchewan University of Toronto University of Waterloo University of Western Ontario University of Windsor University of Winnipeg UR Energy Vale Western Potash Corp. 23 Members include all the provinces Xstrata Nickel and territory shown in green Yukon Cold Climate Innovation Centre
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