IMPC 2012
Abstract
The first decade of the 21st century was one of fundamentally changed dynamics for the minerals industry. Following intense globalization commencing in the late 20th century production is now concentrated into large businesses that can compete across geography in diverse commodities. Asian industrialization and urbanization is now the main driver of growth in demand for energy and materials. Demand for the output of these industries has risen sharply, reversing decade long trends to reduced real commodity prices. Supply responded with expansions of existing mining and processing operations, and large investment in new resource development. Development of new, lower grade or more remote resources was stimulated. Resource development by global entities in frontier environments reinforced the importance of effective forms of social contract, and of stronger environmental performance. The worst economic shock in decades provoked no significant pause despite large impacts on corporate ownership. State owned enterprises commenced unprecedented foreign direct investment in minerals and energy resources. A thrust towards resource nationalism re-emerged as governments sought to ensure that the export of state owned resources contributes more strongly to government revenue, reducing the burden of trade in scarce resources on other trade-exposed sectors. The unprecedented combination of forces at work has made future predictions difficult, with day-by-day volatility in anticipated corporate fortunes, and investment plans.
The challenge for process innovation (and for exploration) has been to keep up, maintaining a lid on costs as lower grade and more challenging ore bodies are brought on quickly in a context of competition for land use, community expectations and continued care for natural and living environments. While new projects have provided the necessary platforms for implementation of innovative approaches, there is evidence that a gap may have emerged between the pace of growth and the pace of innovation.
The history of a century of process innovation in the context of growth of output, declining resource grades and commodity prices is presented. The necessary conditions for accelerated process innovation are considered, and future needs and approaches are discussed.