1. CSIRO MINERALS RESEARCH PROGRAM MANAGERS MEETING MONASH CLUB – THURSDAY 13 TH FEBRUARY, 2003 “ROLE OF A PROFESSIONAL INSTITUTE IN 2003 IN THE MINERALS INDUSTRY ” Don Larkin, M AusIMM Chief Executive Officer The AusIMM

2. THE AUSIMM Established 6 April, 1893 Incorporated Under Royal Charter, 1955 Represents Learned Society – CPD Fraternity Allen Review 1999 Revitalisaton

4. The AusIMM “Membership” Bucket Providing a better product & services: “CP” Codes CPD “Brand” Branches Societies Chapters Expand base International Energy Mergers/links with like associations Possibly Reduce barriers to entry Streamline process Aging population Waived Honorary Concessionals Retired Deaths Level of exploration and competition from other bodies Company members Company support Transition from Students to Young Professionals Decrease in R & D Total Market - Minerals Industry AusIMM Membership (market penetration?) Perception of Minerals Industry by community

5. Skill Needs “Are we confident that the Minerals Industry has the Professional Staff capability to appropriately position it to meet the demands of tomorrow” - Rising to the Challenge 2001

6. Outcomes an increasing trend towards globalisation an increasing use of new technologies to reduce costs and increase outputs commodity prices continuing to fall the attractiveness of the industry was decreasing there was a lack of shared vision within the industry the prevailing culture was not conducive to responding effectively to the challenges investors with an increasing focus on short term returns an ever increasing squeeze in the capital markets restricted and reduced access to land an inability to attract and retain the required talent to grow the industry.

7. Consensus of Observations 1.The negative image of the industry constrains its capacity to effectively influence community and government. 2.A major repositioning of professional staff competencies is required. 3.Existing organizational arrangements and capabilities are under pressure to change. 4.It will be difficult to access professional staff of the required capability. 5.The industry is facing significant external challenges with a real concern about capacity to address them. 6.The prevailing culture is not suited to the needs of the future. 7.The fragmentation of the industry leads to a lack of shared vision/voice, and 8.There is a need for change.

8. From A culture, which is characterised by many good things… Safe, environmentally responsible Pragmatic, logical, ‘can do’ Getting things done efficiently ….but also some elements that need to change… Slow to adapt Homogenous Masculine, individualistic Reward focused, rule bound Turf protection

9. To Safe, environmentally responsible Getting things done efficiently …and… Collaborative work-as one business Fast, flexible, global Inclusive/diverse Commercially astute, socially responsible Team thinking Open-tolerate ambiguity/alternative thinking

10. STOCKTAKE – CYCLICAL OR STRUCTURAL CHANGE Internationalisation of the Industry Amalgamation of Corporations Pressures for Sustainability Role of SME’s/Juniors Attractiveness of Industry - Careers - Capital

12. CHALLENGES FOR AUSIMM Speak out - Advocacy/Representation - Pride - Engagement Pro-active Role for Branches and Societies Employer and Academic Support Market Penetration International Initiatives Continuing Professional Development & Recognition The Brand – The AusIMM

13. MINERALS INDUSTRY AS AN ATTRACTIVE CAREER OPTION MTEC Article – University Supply Side Industry Demand Upon Graduation – Geoscience into Minerals Industry Employment in Exploration Demand for Vocational Education

14. GLOBALISATION AND CONSOLIDATION Top 5 providers now control between 40-70% of global production of copper, diamond, gold, ironore, lead, nickel& zinc Today 2/3 Australian gold production controlled by 5 companies with nearly half of production from 12 mines 70% of Australian gold production foreign owned

15. GLOBALISATION AND CONSOLIDATION (cont) 1997 -20 companies exploring – Budgets > $10m 16 Australian based 2002 -Only 5 with only 2 Australian based of above 16 – 9 no longer exist 1997 -47 companies exploring budgets $1m-$10m 2002 -20 of these gone (including 14 Australian) 1996 -Active explorers 1264 2001 - Active explorers 379