Barb Filas: An Interview With the 2005 SME President

Start with your assessment of the minerals business —domestic mining as well as operational and consulting perspectives. As a third generation miner, I have been living the mining business for as long as I can remember. I have watched commodity prices produce boom and bust cycles in places like Price, Utah (coal), Douglas, Arizona (copper) and Eureka, Nevada (gold). It is unsettling to see how our industry has fluctuated, but it always seems to rebound if you can stick out the down cycles. However, our most recent dip in the cycle was, in my opinion, characteristically and permanently different. In the past, when prices went south, people hunkered down and waited out the cycle until things came back, much the same as they had every other time. Not this time. This time, we saw a consolidation of the industry in proportions never seen before. Mega-mergers like Exxon-Mobil, Phelps Dodge-Cyprus and Newmont-Normandy have changed the complexion of our industry forever. And that is true not just of the mining companies; it happened across the supporting business lines as well. As a midsized niche engineering and environmental service provider to the mining industry, companies like mine are few and far between these days. The lean cycle saw many of the small and midsized providers get gobbled up by consulting giants like URS and TetraTech. The mentality of a mega-company, whether a commodity producer or a goods or service provider, is different than that of their small- and medium-sized counterparts.