PLENARY SESSION
21st World Mining Congress, 7-11.09.2008, Krak\u00f3w, Poland
3
8th September 2008
Day 2 (Monday)
The Grand Hall of Auditorium Maximum
of Jagiellonian University,
Plenary Session
Venue: The Grand Hall of Auditorium Maximum, Krupnicza str.
1st Part 9:00 a.m. - 1:00 p.m.
Chairman: A.K. Ghose, Co-Chairman: Kazimierz Lebecki
Secretary: Eugeniusz J. Sobczyk
9:00 -9:05 a.m.
Opening
9:05 - 9:25 a.m.
Magnus Ericsson, Raw Materials Group, Stockholm, Sweden
GLOBAL COMMODITY OUTLOOK AND IMPLICATIONS FOR THE MINING
INDUSTRY
Society\u2019s expectations of the exploration and mining industry are growing rapidly as metals supply
becomes of political concern in the industrialised countries and stakeholders other than investors de-
mand a larger share of profits. The global mining industry faces one main challenge: To deliver suffi-
cient volumes of metals and minerals at prices, which do not fuel inflation or encourage substitution,
while ploughing back a reasonable share of profits into local and national host economies. As the min-
ing industry becomes less fragmented in the present wave of mergers and acquisitions a limited number
of companies control an increasing share of the metal and mineral production globally. This trend has
negative and positive implications. On the one hand, the mining industry needs to consolidate to create
larger and stronger corporate entities. Only large companies have the necessary financial muscles to
develop new low grade, but giant, deposits far from markets and existing infrastructure. Such compa-
nies can survive the next downturn in the markets. Larger companies are also necessary to fund and
pursue increasing volumes of R&D including expanded exploration. Skyrocketing energy, water and
environmental costs must be addressed and more innovative ways of operating must be introduced. On
the other hand proper checks and balances must be in place to ensure that monopolistic powers are not
created. Whatever the size of a mining company accountability, governance and transparency must
become key concepts for all participants, both new and old, large and small, from Europe and Asia. The
same strict demands on transparency, conduct and operational practices from reporting standards to
health and safety routines should be imposed on all exploration and mining companies regardless of
origin and size. There is an important role in this fight also for the broader international community.
\u201cMining for Development\u201d modelled on the successful Norwegian programme called Oil for Development
is but one idea presently discussed between Nordic and developing countries.
9:25 - 9:45 a.m.
Tad Szwedzicki, AusWest Pty Ltd, Perth, Western Australia
GLOBAL TRENDS IMPACTING ON THE MINING INDUSTRY
Global trends during the last half of the 20th century have substantially changed the mining industry all
over the world. There has been an evolution from a primarily economically oriented industry to a health
and safety conscious, environmentally, socially and legally responsible industry. After World War II the
major issues that impacted on the industry were occupational health and safety. Numerous mine disas-
ters in many countries set new directions for mining legislation. In time, community perceptions and
needs changed and the most important issues impacting on the global mining industry were environ-
mental and social. In the 1980\u2019s many local communities started to protest against a perceived lack of
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