Leaders in the mining industry are facing a new range of priorities that stretch beyond operational issues. They are required to pay attention to environmental matters and must ensure that the concerns of the community involved are addressed.
One could argue there was a time when mining could be reduced to a relatively simple formula: find the resource, develop the mine, extract the metal – and repeat. But today, a mining executive must be able to assess company risk, country risk, international risk, politics, environmental impact and social commitment, among other factors. In addition to those considerations, the executive must be well versed in financial issues, such as strategic planning and the public credit and equity markets.
According to a report from consultancy Korn/Ferry, merely having a government licence or permit to operate a mine is no longer sufficient, particularly in countries where government is regarded with suspicion by the local population and where indigenous populations feel threatened. “If the residents do not want you there, it does not matter if you have the permits or not,” one mining executive told Korn/Ferry. “The social licence to operate in an area is not covered by legislation.”
Today’s mining executive must be able to speak authoritatively about what their company is doing to protect the environment and to allay fears as to the environmental impact of the operation, the report notes, adding this must be done in a way that speaks to the values of the indigenous people and articulates the value proposition of the mining operation.
One solution to the challenge is to hire local management. But that goal is often harder to achieve than it may seem on the surface, the report states.
Mining executives agree that strong leadership in the industry is critical. “Having the leadership qualities that enable you to clearly elucidate the strategy and plan, then communicate, engage and involve the entire organization in implementing this is essential,” says former Rio Tinto CEO Sam Walsh. “Many organizations fail in not continuing the process by providing feedback on achievement and celebrating success.”
Mining entrepreneur Richard Warke, who has built several successful mining companies, says he places a large emphasis on talented leadership. “A critical factor in the success of any mining project is the strength of the team that is guiding its progress,” he says. “I have been fortunate to work with some very talented executives in the mining industry during my career, and when I begin a new venture, I look to bring in executives I know well.”
Today’s mining executives must have strong interpersonal skills and a high emotional intelligence along with solid mining acumen, Korn/Ferry says. Admittedly, finding leaders with the required range of technical, interpersonal, financial and strategic skills can be a challenge, but it’s seen as essential for the mining industry to keep moving forward.
