Innovation mining’s biggest challenge – Anglo
Anglo American corporate relations director Anik Michaud discusses the group's sustainability strategy, while CEO Mark Cutifani talks about the group's plans for innovation over the next five years. Video and editing: Nicholas Boyd.
The world is standing on the brink of a technological revolution that will result in transformation unlike anything humankind has experienced before, which is making innovation mining’s biggest challenge.
“In the next five years, it’s about major step changes in innovation,” Anglo American CEO Mark Cutifani told the 8 000 attendees of this year’s Investing In African Mining Indaba.
Traditional mining roles are changing with, for example, the truck driver of the future needing digital skills to drive from a control room.
“We’re committed to reimagining mining,” Anglo group director for corporate relations Anik Michaud, who joined Cutifani on the podium, said of the company’s resolve “not to be a Kodak or a Blackberry” by charting its own innovative direction.
Already, ore sorters are sorting waste before it is put through the mill, allowing 20% less to be spent on mills, and ore grinding has been improved so that it uses 30% less energy, much less water and allows operations to head towards becoming tailings free.
“We have to do that as a matter of survival. If you’re not thinking about these things, there’s no future,” said Cutifani.
While Anglo expects to grow employment as it grows as a company, the rate of employment growth will be lower, which is why five off-site nonmining jobs are being targeted for every one on-site mining job.
The plan is to advance local communities from subsistence farming to commercial agriculture, which will also involve helping them to access water.
All the while, it will be working with governments on their country visions, and with academia on the creation of the right skills.
“We’re hoping that we’ll help communities thrive . . . after the mine is gone,” said Michaud.
Five years ago, Anglo was losing competitiveness and dealing with capital allocation issues; now, five years on, every person in Anglo is producing double the output of the past.
Operating costs have fallen 16% and competitive returns are being delivered.
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