CONTINUOUS IMPROVEMENT CAN BE A SENSIBLE WAY TO MANAGE COMMODITY PRICE CYCLESS
CIM Vancouver 2016
Mr Bish Chanda (Change Management & Mining Projects)
Maintaining competitive edge: striving for low-cost production while improving safety, engagement and sustainability.
Moderator: Laura Methot, CLG
Ryan R. Phillips, Caterpillar Inc., Commercial Mining Representative, Western Canada
Annemarie Michaud, CLG
Yvon Sylvestre, Senior Vice-President, Operations-Canada & Europe, Agnico Eagles Mines
Richard Tremblay, General Manager, Gibraltar Mines
Pierre Lapointe, President & CEO, Arcelor Mittal Mines Canada
Bish Chanda : Welcoming Remarks – Continuous Improvement can be a Sensible Way to Manage Commodity Price Cycles.
Prices of every important metallic and bulk commodities were at their historical highs driven by the seemingly insatiable demand due to a rapid industrialization of China. During the course of last five years, prices have tumbled back to their 2002 levels. Companies are taking drastic cost cutting measures in order to survive such a steep downturn. In the process, their longer term prospects could be compromised. Since the mining companies cannot control the market price of their products, they have to ensure that their position in the cost curve is always be low enough to withstand the price shock during a severe downturn. The focus of continuous improvement (CI) initiatives is to always position a company amongst be the lowest cost producers. That is why CI is a suitable strategy for mineral producers to manage commodity price cycles. It requires a fairly long time to establish a CI culture to be sustainable. Companies can benefit from the process during this downturn by primarily selecting projects with higher probabilities of rapid paybacks of initial investments.
Ryan R. Phillips: Caterpillar’s 6 Continuous Improvement – Engage, Improve, Evolve – Delivering Customer Value!
Annemarie Michaud: Five things that distinguish organisations excelling at sustainable change
Panel discussion moderated by Laura Methot: What individual companies are doing, discussions involving keynote speakers and panelists regarding the way forward with the participation from the audience.