Spencer Stuart and Cesco announce in London the publication of Mining for Value, a collection of twelve lessons learned from the supercycle. The book draws on candid insights from leaders of some of the world’s most important mining companies, including Antofagasta, Rio Tinto, BHP and Anglo American.

Mining for Value considers the causes and repercussions of the supercycle that gripped the mining industry during the early years of the twenty-first century, examining this period through the eyes of senior figures within the industry who reflect on what needs to be avoided, changed and strengthened when managing a mining company.

The twelve lessons urge leaders to focus on value creation over the long term and the importance of being guided by strong company values, and give practical advice on areas such as governance, board composition, innovation & technological change, company culture and diversity.

Jose Luis Barroilhet, who leads Spencer Stuart’s Metals & Mining Practice, commented on today’s launch: “The supercycle of the early 2000s was an era of great opportunity for mining companies and countries alike, but quickly turned into a fight for survival when the market inevitably turned. We hope that the lessons learned by those at the very top of the mining industry will provide a blueprint for the next generation of leaders as they seek to build a more robust, diverse and sustainable industry for the future.”

Jorge Bande, Cesco Board member commented: “The significance of this book is its uniqueness as a much-needed critical analysis of the industry’s performance during the supercycle. It confirms that the causes of the industry´s problems are deep and complex and have run throughout its history. The supercycle simply made these issues more evident, encouraging a period of reflection and subsequent change in direction which, if maintained, should create a more resilient industry.”

Among comments made at the launch:

“All of us in the broader value chain have a lot to learn.”

“Always design development of the resource on the downside and make sure you know how to get the best out of the resource on the upside, because if you do it the other way around it’s much more difficult to reconfigure the mine in the difficult times.”

“Don’t commit to a specific price outlook; think of the world in scenarios; keep a strong balance sheet; and end up with good, long-term assets with a good cost structure, so you have optionality.”

“In the end, value creation depends on making choices around people, operational excellence, financial discipline, innovation and sustainability. Mining is not a business to managed by auto pilot.

“If I was to identify one core learning: the core business of mining is how we plan and develop the resource. Knowledge of the ore body is paramount.”

“There has been a big change in community engagement over the last 15 years. It used to be about compensating for impact, but the discussion has now moved to development – how do we engage communities to ensure that economic progress affects host communities. Participation and transparency is key – giving others the power to influence outcomes.”

Mining for Value is available online at www.spencerstuart.com/research-and-insight/mining-for-value or in www.cesco.cl