Risk management strategy in mining

"The author will give a capsule history of Benguet Corporation and attempt to identify its operating environment and underlying ""strategy"" until 1974, when the company's management assumed office. The company's operating environment and ""interim strategy"" from 1975 to 1980 will be described. The discussion will cover an environmental forecast and define the company's"" strategy for survival"" for the balance of this century.IntroductionIn December last year, I was asked to deliver a pa per for the management lecture series a t the Asian Institute of Management in Manila. The paper was entitled "" The 1970's: A Decade of Disaster For New Mining Projects"" . In that paper, it was my task to review the results of new mining projects in the Philippines during the previous decade. The task was not a happy one, for the results themselves were not only unhappy, but disastrous on a scale unprecedented in Philippine history. Out of a total of 17 major mining project s involving an aggregate capital investment in excess o f US $2 billion during the 1970s, only three project s have been profitable, and all the rest have either gone "" belly up"" or are teetering on the very edge of financial disaster.It is in the context of this shocking record of widespread financial dislocation in the Philippine mining industry, (which in varying degrees appears to have been paralleled in virtually every other country in the world where mining is an important sector of the economy) that I address myself tonight to the theme of this symposium. My paper is entitled ""Risk Management Strategy in Mining"" and it is sub titled ""Can Benguet Corporation Survive to Celebrate its Centennial in 2003?"". I have inserted the word ""Strategy"" and added the subtitle, because I wish to make it clear first, that my presentation to you tonight will be focused exclusively on the strategic aspect s of risk management, and second that I will limit myself to Benguet's own ""in-house"" experience and perspectives on this subject. I would caution you therefore, to consider my views within this restricted framework, and in light of the particular and sometimes peculiar circumstances within which Benguet Corporation operates."