26 Oct “The value of this book is that it is a self-critical reflection”
This was stated by the Cesco’s Executive Director, Alejandra Wood, in Reporte Minero program where she referred to the launching of the book “Mining for Value: Industry leaders disclose lessons learned from the supercycle” during the week of metals in London, as well as the importance of the LME Week for Chilean mining.
“Cycles do not last forever” is one of Alejandra Wood’s main reflections on the book Mining for Value in her visit to Reporte Minero tv program, where she highlighted that the publication represents a valuable self-critical exercise, uncommon in the industrial sectors. The book, published by Cesco and Spencer Stuart and presented during the LME week, is self-examination exercise by the leaders of the world’s leading mining companies regarding the lessons learned after the supercycle of metals.
Regarding the main conclusions of the book, the executive director of CESCO said how crucial it will be for the industry to have a long-term vision, not infected with the exuberance of the wealth of a supercycle, which, in the past, put volumes of production in the market at any cost, instead of focusing on maximizing value. This led to painful adjustments, such as cost-cutting, interruption of profit distribution to the shareholders, recovery of financial balances, among other things.
According to the executive, the text shows that there were investment decisions that were not good, either capital investment or acquisitions that were more expensive, adding that it is necessary “to take the time to know the geology and metallurgy of your site and to develop engineering to the maximum before approving a project instead of being rushed to put production on the market, have flexible organizations to adapt them to the cycle, and also the values of the business culture are very important; organizations that are sustainable, innovative and diverse are like levers that will allow companies to go through these cycles”, she said.
Alejandra Wood gave her impression after participating in the London Metal Exchange Week. “London is historically the place where base metals were firstly traded and this week brings together the leaders of the global industry, mainly copper, silver, zinc, and lead. Many meetings happen and the interesting thing is that you can perceive what is happening in the industry, what is the mood. And the truth is that it could be seen that there is a good atmosphere, in general, but, nevertheless, there is not much appetite in the big companies for going out to buy or for making capital investments”.
“Although the price projections are quite positive in the medium term, the market still does not give a signal of ok, a good moment began, and this has to do, as everyone knows, by this storm that has meant the famous commercial war. Some even spoke that it is not a war but new conditions or a new order concluded”, she concluded.