Successful Management of Mining Companies ù What Have We Learned From the 16th Century to the 21st Century?

This short paper outlines the authorÆs views regarding the progress we have made as an industry in managing mining assets over the past 500 years. It represents a personal view û but one founded in fact-based observations of mining companies and of the mining industry in general. There is no doubt that AgricolaÆs views as expressed in De Re Metallica (1556) were visionary. There is also little doubt regarding another issue û that whilst a great deal has been learnt about the management of mines since AgricolaÆs time, observations suggest that best practice management is the exception rather than the rule across our industry. Although insights regarding the successful management of mines have become apparent, we still witness unnecessary errors in our industry that lead to the loss of shareholdersÆ funds. By highlighting some aspects of current best practice, particularly in the arena of operations management, it is hoped that this short paper contributes a small step along the next 500-year-long learning curve. The paper concludes with a brief description of the progress and impact of continuous improvement initiatives at Kalgoorlie Consolidated Gold Mines (KCGM). Located in the Kalgoorlie Goldfields, KCGM is currently AustraliaÆs largest gold mine producing over 800 000 ounces of gold per annum. Improvement initiatives at KCGM look set to deliver some $100 million in value over life-of-mine.