1. C O N V E N E S
P R E S E N T S
C O O R D I N A T E S
O R G A N I Z E S
C O L L A B O R A T E S
M E D I A P A R T N E R

2. Mining Innovation: Myths and Challenges
“First Meeting of the Network of Mining Regions”
Mining Innovation: Myths and Challenges
Mauro Valdés Raczynski
Chairman Alta Ley Program
OECD Mining Regions: building a network to enhance productivity and well-being
5th October 2017
Antofagasta, Chile

3. How to understand the relevance of innovation in mining?
“First Meeting of the Network of Mining Regions”
How to understand the relevance of innovation in mining?
1. Dynamic Productive Process: The challenges that mining is facing today were not the same in the past and will not be the same in the future.
2. Socio-environmental impacts are also dynamic: Depending on different variables (mine age, depth, ore grade, etc.) the impacts of the process will be different.
3. Unlike other production processes, the local context does matter: Local specificity must be considered in the productive process.
4. In many countries mining is a priviledged leverage for knowledge, innovation, technology and capabilities: This aspect is an increasingly relevant part of the social license.

4. Disputing some myths about mining development
“First Meeting of the Network of Mining Regions”
Disputing some myths about mining development
Sustainability
Mining development
Policy

5. “First Meeting of the Network of Mining Regions”
Myth Nº1: Tension between mining development and sustainable develpment: Recent events have established in Chile's public opinion that mining development is opposed to sustainability.
The case of water consumption: Innovation and technologies have enabled amazing efficiency and decreasing enironmental impacts.
Mining accounts for only 3% of the country's water consumption (DGA, 2016).
Recirculated water represents 73% of total consumption (COCHILCO, 2016).
By 2027, sea water consumption is expected to account for 46% of the total water required by mining (COCHILCO, 2016).
Side effects: NCRE (solar)
Minerals and metals, particularly cooper, have a key role to play in the sustainability digital and technology revolution.
The development of sustainable mining is possible and relevant. Innovation is the key to this goal.

6. “First Meeting of the Network of Mining Regions”
Myth Nº2: Mining development only needs more investment: The discussion on mining development has focused on investment and regulatory aspects.
To compensate for the decreases in the ore grades and maintain production, mining investment was similar in the periods and (SONAMI, 2017)
Through innovation, Chilean mining must generate competitive advantages
1990
2004
2016
5,5 mill TM
1,6 mill TM
5,4 mill TM
US$ 40 bill
US$ 48 bill
Production
Investment

7. Myth Nº3: State or market, two irreconcilable paradigms:
“First Meeting of the Network of Mining Regions”
Myth Nº3: State or market, two irreconcilable paradigms:
Usually the visions about the role of the state and the market in the productive development are presented as opposites.
International experiences, such as Australia and Canada, suggest some lessons for mining suppliers development.
Exports from Australian METS reached AUS$ mill in 2013 (DIS,2013).
The case of Australia shows key roles of public sector through CRC, CSIRO, Mining3 and METS ignited.
National Collaboration Strategy for Canadian Mining Industry seeks improve collaboration betwen various sector stakeholders for support mining innovation (DAI; IM4DC, 2015; National Diamond Strategy, 2003)
The strategy followed by Chile through Alta Ley, Valor Minero and Cluster Minero Antofagasta ensures the focus on mining development and strengthens public-private alliances.
Private-public partnerships have shown greater economic and social returns

8. “First Meeting of the Network of Mining Regions”
The challenge…

9. “First Meeting of the Network of Mining Regions”
A false dichotomy trapped us during the 20th century A new enabling paradigm for mining economies to play a leading role in the 21st Century
20th Century
21st Century
Axis that frame the debate
Axis that frame the debate
Natural Resources as knowledge-based activity
Transactional relationship
State-Market
Natural Resources as rent seeking activity
A Shared Vision: Public-Private Consensus + Shared Value
Natural Resources
(Minerals)
Knowledge
Technology
State
Market
Mining economies in the 21st Century
The Chilean experience
What is the next stage?
20th Century
Coordinating the transition+

10. “First Meeting of the Network of Mining Regions”
Resource-based development is a moving target Successive stages in a evolutionary and long-term process (e.g. Supply chain development) _
Productivity
Social and environmental performance +
Internationalization and economic diversification
Chile today (2016)
Stage III
Creating an innovation
ecosystem
Stage II
Creating local
supply chain
Chile in 1990
Innovation ecosystem
and METS exports
Stage I
Incubating critical capacities
Consolidation of a local
supply chain
Transition period
How to support succeeding transiting to the next stage ?
Factor-driven
economy
Investment-driven economy
Creating productive and absorptive capabilities
Innovation-driven economy
1975
1985
1995
2005
2015
2025
2035
Comparative advantages

11. Operations and planning mining
“First Meeting of the Network of Mining Regions”
Alta Ley agenda and impact
Impact
8,5 million tons produced yearly in the next 20 years
250 world class suppliers
Traction
Cores (Challenges)
Exploration
Operations and planning mining
Concentration ores
Tailing
Hydrometallurgy
Smelting and refining
Nwe uses of cooper
US$ million of exports of goods and services linked to the mining sector
80% of production in the first cost quartiles of the industry, at the global level
Supliers and innovation
Human capital
Enabler
Cores
Smart Mining
Green mining

12. Mining Innovation: Myths and Challenges
“First Meeting of the Network of Mining Regions”
Mining Innovation: Myths and Challenges
Mauro Valdés Raczynski
Director Alta Ley Programme
OECD Mining Regions: building a network to enhance productivity and well-being
5th October 2017
Antofagasta, Chile

13. C O N V E N E S
P R E S E N T S
C O O R D I N A T E S
O R G A N I Z E S
C O L L A B O R A T E S
M E D I A P A R T N E R