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CanadaMiningInnovationCouncilValueProposition:TowardsZeroWasteMining
August4,2015
2
Documentcontext
DocumentPurpose
l DefineandfurtherrefineCMIC’sTowardsZeroWasteMiningstrategytotheminingindustry
– EmphasizetheimportanceofthisprojectandthenecessityforstepchangethroughCMICviaitsopeninnovationapproach
– CrystallizethedefinitionofTowardsZeroWasteMiningandidentifythekeyfocusareas
– DefinehowCMICwillcollaborateandpartneracrossstakeholders,reconcilepotentialIntellectualProperty(IP)issues,financelongterminitiatives,andgovern/reportactivitiesandoutcomes
l Serveasaninternalguidingdocument/strategytoalignkeystakeholdersandpotentiallyserveasmaterialfortheBusinessCasetoattractpartnersintheminingecosystem(e.g.,industryplayers,academiaandgovernment)
l Theminingindustrygenerallyagreesthatitisbehindtheinnovationcurveandthatafocusedeffortisrequiredtocreateaprofitableandresponsiblelongtermindustry
l TheCanadaMiningInnovationCouncil(CMIC)isfocusingitseffortsthroughtheTowardsZeroWasteMiningstrategywhichwilleliminateminewastebyfacilitatingcollaborationacrosspartnerswithinthebusinessecosystemtocollectivelytransformtheindustry
Background
Preamble
SourceData
l Thisdocumentcontainsinformationfromanumberofdifferentsources(CMICrepresentatives,externalserviceproviders,miningcompanies,governmentrepositories,andanalystinsights).ThisvaluepropositionattemptstoconsolidateallofthesewithinaninternalstrategyforCMIC
l ThepartnershipbetweenCMICandMonitorDeloitteisdefinedinaccordancewiththetermsofanagreementbetweentheparties
3
Tableofcontents
Contents Page
MininginCanada- CurrentStateofMining- CurrentStateofMiningInnovation
4
CMICOverview 9
StrategicChoiceCascadingFramework- Summary- GoalsandAspirations- WhereWillCMICPlay- HowWillCMICWin- HowWillCMICConfigure- PriorityInitiatives
10
CMICPortfolioImplementationApproach 20
Appendix- ListofAbbreviations
24
4
Increasedglobalcomplexityrequiressectoradaptationtonewrealities…
MininginCanada>CurrentStateofMining
Structuredlabourmarketforces,decliningresourcequality,andalegacyofinefficientcapitalallocationhaveledtodecliningproductivity
Source:(1)StatisticsCanada,CANSIMtable383-0012,2007to2014;(2)OntarioHydro– Ontario’sHistoricalRPPRates
Highenergyconsumption,elevatedoperatimg costs(e.g.,energy,infrastructure,labour,royalties,permittingfees,andcompliance),haveresultedindecreasingmarginsforexistingoperationsanddiminishingeconomicfeasibilityofnewminedevelopments
DecliningProductivity
IncreasingCosts
85
90
95
100
105
110
2007 2008 2009 2010 2011 2012 2013 201460
70
80
90
100
110
120
130
Labo
urProdu
ctivity
Index
Year
HourlyCom
pensation($CA
D)
LabourProductivityisDecliningwhileLabourCostsareRisingQuarrying,andOil&GasExtraction1
Totalcompensationperhourworked Labourproductivity
BlendedRPPOntarioHydroRateshavefaroutpacedAnnualInflationovertheyears2
Cents/KW
h
Year
RPPPriceInflation
5
…especiallycomplexitiesassociatedwiththelicensetooperateandthedeclineofcommodityprices
Volatilecommoditypriceshaveresultedinunpredictablemargins,forcingcompaniestoplanfortheunforeseeable,anddecreasingfinancingcapitalavailability
Concernsfrommultiplestakeholdersincludingconservationandthepotentialenvironmentalimpactsofmineraldevelopmentandmineclosurehaveresultedinincreasinggovernmentregulation anddemandforheightenedcorporatesocialresponsibilityandstakeholderengagement
MininginCanada>CurrentStateofMining
IncreasinglyComplexLicensetoOperate
OperatingwithUncertainty
Inordertomakeasignificantshifttowardsimprovement,theindustrymustcollectivelychallengeexistingwaysofthinkingbyrevisitinglong-standingpracticesandprocesses
6
Currentcommoditymarketsarenotconducivetoindustrysustainability…
Resourcequalityisdecreasing
Between2001and2012,theweightedaverage resourcegradeofnickel,copper,andgoldreducedbyroughly40%,30%,and10%respectively1
Commoditypricesarevolatile
Thepriceofgolddroppedbyroughly33%between2011and20153
EnergypricesareincreasingEnergycostscontinuetoriseinCanadaandareprojectedtobe20%higherin2035comparedwith20132
~
Source:(1)“DeloitteMiningSpotlighton:SlidingProductivityandSpiralingCosts”,2014;(2)NationalEnergyBoard,“Canada’s EnergyFuture2013- EnergySupplyandDemandProjectionsto2035”,2013;(3)BankofCanada,CommodityPriceIndex- Monthly
MininginCanada>CurrentStateofMining
500550600650700750800850
2011-01 2012-01 2013-01 2014-01 2015-01Co
mmod
ityPriceIndex
Year
BankofCanadaCommodityPriceIndex3
7
…andisdecreasingtheviabilityofmininginCanadaasaneconomicforce
MiningandProcessing
G&AandExploration
NetInterestExp.
SustainingCapital
AvgGoldPrice($/oz)Year
$US
GoldIndustryMarginsAreDecreasing(all-insustainingcost$US/oz)1
TotalReturntoMiningShareholdersisUnderperformingOtherGlobalIndustries2
YearIndustrialsMining
Healthcare
TelecomsTechnologyAerospace&Defense
ConsumerGoodsBanks
TheNumberandValueofEquityIssuesinGlobalMining&MetalsisDecreasinginRecentYears2
YearNumberofIssues Proceeds($MUS)
Basedoncurrenttrendsandfutureprojections,costswilllikelycontinuetoincreaseovertime.Historicalcostcuttingexercises(e.g.,layoffs)arenotsustainableandwithoutasignificantshift,marginsmaydecreasetoapointwhereminingoperationsarenolongerprofitable
DecliningProfitability
Withmining’stotalreturntoshareholdersunderperformingothersectors,companiesareunder
mountingpressuretoboostshort-termprofits,oftenattheexpenseoflong-termplanning.Passingonlong-term,
possiblehighreturninvestments,resultsinfurtherdecreasinglongtermreturns
UnderperformingShareholderReturn
Significantpriceriskexposureduetovolatilecommoditypriceshasresultedindecliningequityfinancing and
scaledbackexplorationactivitybyjuniorsandmajors.Asaresult,thelong-termfuturesupplypipelinelooks
increasingunderrisk2
FutureofMiningProjectsIncreasinglyUnderRisk
Source:(1)Société Général,2013;(2)“Deloittetrackingthetrends2015– thetop10issuesminingcompanieswillfacethisyear”
MininginCanada> CurrentStateofMining
8
StagnantinvestmentinCanadianmininginnovationhasresultedindecreasedglobalmarketshare
Source:(1)OECDStatExtracts data;(2)Canada’sEconomicActionPlan;(3)NaturalResourcesCanadaData
AustralianminingfirmshaveinvestedmorethanfourtimesasmuchinresearchanddevelopmentasCanadianfirms1.Canadianminingfirmsinvestmorein
Australian-ledinnovationthaninCanadaduetostrongcooperativegovernment-industrystrategicplanningandfinancing
l TheminingindustryisundervaluedandreceiveslittledirectstrategicfinancialsupporttowardsinnovationfromtheCanadiangovernmentdespitetheindustry’simportanceinimplementinggovernmentEconomicandNorthernpriorities.
Manufacturing:$200Mvia.AdvancedManufacturingFund
(AMF)3
1Forestry:$100via.ForestInvestmentinForestIndustryTransformation
(IFIT)3
2
Automotive:$750Mvia.AutomotiveInvestmentFund
(AIF)3
3Aerospace:$1.15Bvia.StrategicAerospaceandDefenceInitiative
(SADI)3
4
CanadianGovernmentSupport
ExamplesofCanadianGovernmentSupportforIndustry-ledResearch,Development&Innovation
MiningIndustryInvestmentGap
WhiletheCanadiangovernmenthasshowedinitialsignsofcommitmenttotheminingindustrythroughNRCan’s GeoscienceforEnergyandMinerals,TargetedGeoscienceandCriticalMetalsinitiatives,theseonlysupportasubsetofminingchallenges.Thereis
stillneedtodevelopabroaderstrategicpartnershipbuildingamoresustainableminingvaluechainwithamuchsmallerenvironmentalfootprintthroughCMIC’sTowardsZeroWasteinMining™roadmap
MininginCanada> CurrentStateofMiningInnovation
9
CMICfacilitatesandfocusesthemininginnovationecosystemtocollaborativelyaddresspressingminingbusinesschallenges
l WhyCMICwascreated: formedtoprovideinnovationleadershiptotheCanadianminingindustry
l WhatCMICdoes:facilitatesanindustry-academic-governmentinnovationecosystemtofocusjointeffortsonaddressingCanadianminingcontinuedlicensetooperateprofitablychallengesinsupportofpublicpolicy
l CMIC’smission:enhancethecompetitivenessandsustainabilityoftheCanadianminingindustrybyensuringexcellenceinresearch,innovation,andcommercializationwiththeobjectiveofTowardsZeroWasteinMining™
l CMIC’svision:re-launchCanadaasagloballeaderinincreasingaresponsibleminingindustry’ssociallicensetooperate,therebyremainingastrongpillarintheCanadianlongtermeconomiclandscape
CMICOverview
AboutCMIC
10
TheCMICInnovationEcosystem
Nodesrepresentdifferentpartiesintheinnovationecosystemwhoallcontributeindifferentwaystomininginnovation.Forexample:lExplorationandMiningindustry:shareexpertiseandresourceslGovernment:shareambitionsforincreasedminingproductivityandmorejobs
lColleges/universities:researchandideatenewminingtechniques
lResearchanddevelopmentcentres: researchandideatenewminingtechniques
lClean-tech/ICT/space/defense/othersectors:sharesimilarchallengesandtechnology
lAssociations:providecommunityandsharedgoalslServiceproviders:sharecommongoalsandinterestsinmininginnovation
lStartups:providearesourceforcollaborationandareasourceofnewideasandtechnology
l Institutionalfunders/venturecapitalists/foundationfunds:providefundsandexpertisetosupportinnovationdevelopment
CMICOverview
11
CMICbusinessecosystemframework
CMICBoardofDirectors
TechnicalWorkingGroupsonZeroWasteMiningFocusAreas
CMICMembership
CMICOfficeExecutiveDirector&CEO
GeneralPartners: CMICmembercompanyrepresentativeswho:l Determineandagreeuponanypre-competitiveissuesl Defineandprioritizebusinessissues/challengesandassociatedprogramsforCMICTechnicalWorkingGroups
l AreprivytoIPinonewayorformderivedfromprojectactivities,althoughnotimmediately
ProjectPartners:CMICmembercompanieswho:l Provide“in-kind”supportintheformofaccesstominingfacilitiesandequipmentforthetestingandimplementingoftechniquesortechnologies
l AreinvolvedaseitherProjectTestSiteLeaders,TechnicalExpertGroups,oroccasionallyintheProjectManagementOffice,andcontributetoactivitiesofprojectimplementationandtesting,ensuringadherencewiththeprojectroadmapandgovernmentregulations
StrategicChoiceCascadingFramework>HowWillCMICConfigure
12
CMIC’sworkflowrepresentsasetofchoicesalongacascadingframework
Howwillwewininchosenmarkets?
Whatpriorityinitiatives?
Whatareourgoalsand
aspirations?
Howwillweconfigure?
Wherewillweplay?
l Initiativesl Investmentsl Changeprogram
l Customersl Productsl Geographyl Verticalstages
l Valuepropositiontocustomers
l Sourcesofdefensibleadvantage
l Profitmodel(s)l Partnershipsl Constituentengagement
l Distinctivecapabilities
l Enablingorganizationalsystem
l Purposel Financial
objectivesl Non-financial
objectives
BusinessUnitStrategy
l Portfolioofbusinesses
l Relativeweightofinvestment
l Methodofincreasingthecompetitivenessofindividualbusinesses– Sharingofactivities– Transferofskills
CorporateStrategy
StrategicChoiceCascadingFramework>Summary
13
TowardsZeroWasteMiningwillfocusonsolvingcommonindustryissues
IncreasingMiningIntensity
FutureStateMiningObjectives
UndergroundMining
Energy/Processing
EnvironmentalManagement
BetterChemistry
Equipment
MinePlanning
ZeroWasteMiningIssues
DecreasingCapitalIntensity
Other
Exploration
DecreasingEnergyIntensity
IncreasingLabour
Productivity
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
ü
PriorityportfoliosCMICwilladdressaspartoftheTZWMstrategy
Safety,CSR&Environmental
ü
ü
ü
StrategicChoiceCascadingFramework>WhereinWillCMICPlay
Articulatedascorepre-competitivechallenges
identifiedbyseniorexecutivesfromminingcompaniesacross
Canada
Definedasportfoliosthataddresskeyobjectivestoaccomplishamoreefficientfuturemining
state
ü
14
TowardsZeroWasteMiningportfoliosdeveloptechnologyroadmapswithaphasedandstagedapproach
CMICsPortfolioImplementationApproach
Stage1
Stage2
Stage3
STAGES:Thedevelopmentor
evolutionofamethodortechnologythat
facilitatesasignificantshifttowardsimprovingdailyminingoperations
PHASES:Clearandrealisticimplementationtimelineswhichdepictthesequencingofprojectsacrossa10year
timehorizon
Theoverallobjectiveistoensurethegradualprogression(Phase1– 3)andadoptionofinnovativetechnologies (Stages1– 3)which
allowformoreefficientandsustainableoperationswhilepromotingshareholdervalue
Phase1(Years0-3)
Phase2(Years3-5)
Phase3(Years5-10)
Allnew:Netzerowaste
Optimizedandadvanced:Industrycost-drivers
Safeandreliable:Environmentalimpactreduction
15
CMICwillcloselymonitorthetrajectoryofeachportfolio,againsttheroadmaptimelinesandstagegates
Phase1(Years0-3)
Phase2(Years3-5)
Phase3(Years5-10)
Stage3 Allnew:NetZeroWaste
Environmentalsustainabilitywillconstantlyshiftasthe
industryaddressesregulatory/complianceissues,thusStage3
mightnotoccur
Energy/Processingisahistoricalpainpointwithmining
companies,Stage3ispossiblethoughiftheindustrytacklesthemultipleissues
facingprocessinginaparallelmanner
Likelytomakesignificantstridesinstageswiththesmartmineand
efficiencydevelopments
UndergroundMining
Exploration
EnvironmentalStewardship
Energy/Processing
Legend:
ProgressthroughinnovationwillmoveindustrytowardsStage2;howeveritwillcontinuetobeachallengetofinddeeperdepositsandStage3mightnotoccur
CMICsPortfolioImplementationApproach
Stage1 Safeandreliable:Environmentalimpactreduction
Stage2 Optimizedandadvanced:Industrycost-drivers
Appendix
q ListofAbbreviations
17
ListofAbbreviationsl AIF:AutomotiveInvestmentFund
l AMF:AdvancedManufacturingFund
l CMIC: CanadaMiningInnovationCouncil
l IBM:InternationalBusinessMachinesCorporation
l ICT:Information,CommunicationandTechnology
l IFIT:InvestmentinForestIndustryTransformation
l IP:IntellectualProperty
l KPI:KeyPerformanceIndicators
l M:Million
l NRCan:NaturalResourcesCanada
l Oz:Ounce
l R&D:ResearchandDevelopment
l ROI:ReturnonInvestment
l SADI:StrategicAerospaceandDefenceInitiative
l $CAD:Canadiandollars
l $US:Americandollars
l $US/oz:Americandollarsperounce
Appendix>ListofAbbreviations
18
CMICaimstoreviveCanada’sstatusasaglobalminingleaderbystimulatinginnovation,improvingtechnologyadoption,andpromotingculturalchange
StrategicChoiceCascadingFramework>GoalsandAspirations
Howwillweconfigure?
Whatpriorityinitiatives?
Howwillwewininchosenmarkets?
Whatareourgoalsand
aspirations?
Wherewillweplay?
l ReviveCanada’sstatusasaglobalminingleaderl DrivetheTowardsZeroWasteMiningstrategy- “Stimulate mining technologyinnovation inCanada to achieve zerowaste inminingandmineralprocessing within10-20 years, withafocusonthe environment,energy,andproductivity”by:– Fostercollaborationamongindustry,academia,government,andresearchfacilities,leveragingexpertiseandfundingtoarriveatimplementedsolutionsfasterandmorecosteffective
– Bridgegapbetweenindustrycomplexitiesandcapabilities,focusingonchallengesthatarecommontominingcompaniesl Decreasebarrierstotechnologyadoptionwithintheminingindustry:
– Providesharedcosts/benefitstoprojectparticipants,throughsharingofgenerateddata,freelicensesforsoftwaredeveloped,andnon-commercialaccesstodevelopedIP/patents
– Facilitatedevelopmentofdetailedtechnologyroadmapsandassistindustryinunderstandingthepositivefinancialimpactandreturnoninvestedcapital
l Promoteculturalchangeintheminingindustrytowardlongertermdecisionhorizons:
– ShiftmindsetfromannualKeyPerformanceIndicators(KPIs)to5-10yeartimeframeswhileprovidingincrementalvalueonanannualbasis
l Fosteraminingindustryinnovationbusinessecosystembasedontheprinciplesof:
– Simple,open,fair,andtransparentl Encouragesustainableminingpracticestoimprovethesector’slicensetooperate
19
CMICisfacilitatinganindustryledTowardsZeroWasteMiningstrategyfocusedontacklingcommonissuesacrossminingcompanies
StrategicChoiceCascadingFramework>WhereWillCMICPlay
Howwillwewininchosenmarkets?
Whatareourgoalsand
aspirations?
Howwillweconfigure?
Whatpriorityinitiatives?
Wherewillweplay?
l CoordinateanddevelopindustryledprojectsfocusedonsharedminingbusinesschallengesrelatedtotheTowardsZeroWasteMiningspecificallyintheareasof:– Decliningproductivity:increaseproductivitythroughoutthelifecycleofamine(e.g.,efficiencyinmineralextraction)– Increasingcosts:reduceenergyconsumptionandotherminingcosts– Increasinglycomplexlicensetooperate:reduceenvironmentalimpactofmineraldevelopmentandmineclosure(e.g.,
processingwastesuchastailings)– Operatingwithuncertainty:reduceriskandbarrierstoadoptionassociatedwithlong-terminvestmentdecisions
l BuildtheprogramnationallywiththefinancialandresourcesupportofallcurrentandprospectiveCMICmembersintheCanadianminingecosystem,withparticularinvolvementfrom:– Initially,major,mid-tierandjuniorCanadianmetalminingcompaniesandminingsupplierswhohavedemonstratedstrong
initialinterestandcanderivebenefit forbothdomesticandinternationaloperations– Federalgovernmentwhocanbenefitfromthejobscreated andGDPincreaseduetoprojectinnovations
20
CMIC’sapproachisdifferentiatedbecauseitisafacilitatedopeninnovationandindustryledmodel
StrategicChoiceCascadingFramework>HowWillCMICWin
Howwillweconfigure?
Whatpriorityinitiatives?
Howwillwewininchosenmarkets?
Whatareourgoalsand
aspirations?
Wherewillweplay?
l Fostercollaborative,industrygeneratedinnovativeZeroWasteminingsolutionsthroughareliableandagileopeninnovationmodelfacilitatedbyCMIC:
– Focusoncommonhighprioritychallengestodeliverresultswhichwillhavethegreatestimpact
– Aggregatefinancialandbestinclassnon-financialresources(e.g.,crossindustryexperts)andallowindustrymemberstodecideonbestuseallocation
– Reducefinancialandtimeriskthroughcollaboration,permittingcontinuedfocusonday-to-daypriorities
– Deliverfasterindustryenhancingintellectualproperty
l Realizefinancial (e.g.,ROIandpaybackperiod)andnon-financialvalue(e.g.,increasedlicensetooperate)fromprojectsadministeredbyCMIC,including:
– Sharedcostandriskassociatedwithnewtechnologyadoption/implementation forparticipatingcompanies
– Increasedproductivityand/ordecreasedoperatingcostsresultinginincreasedmarginsandfeasibilityofminedevelopment
– Reducedcyclicalnature ofminingresearchanddevelopmentthroughsharedcostsandgovernmentfundingtopermitlong-termprojectdevelopment
– Newsustainableminingpracticesresultinginimprovedindustrylicensetooperate
CMIC’ssuccessisafunctionofthefinancialandnon-financialvaluerealizedbyIndustry
HowWillCMICWin HowWillIndustryWin
21
CMIChasatransparent,industryledgovernancestructurewithsupportingmechanismstopromoteinnovation
StrategicChoiceCascadingFramework>HowWillCMICConfigure
Howwillweconfigure?
Whatpriorityinitiatives?
Howwillwewininchosenmarkets?
Whatareourgoalsand
aspirations?
Wherewillweplay?
l Governance:
– Developingatransparent,industryledplatformthatwillfosteropeninnovationintheareasofhighestpriority
– Makinglinkagestootherpartieswithintheminingpartnerecosystemtoconnectideasandresources
– Establishingadecisionmakingstructurethatisdrivenbyindustryplayersinbothatopdown(e.g.,BoardofDirectorsiscomprisedofindustryexecutives)andbottomup(e.g.,MembersarecomprisedofnominatedrepresentativeswhoactivelyparticipateinCMICtomakedecisionsregardingprojectplanning,prioritization,execution,IPsharing,etc.onbehalfoftheircompany)approaches
– ProvidingsupporttotheindustryleddecisionmakingstructurethroughastreamlinedCMICProjectManagementOffice
– AstheTowardsZeroWasteStrategyexpands expands,encouragebroaderparticipationofdifferentminingplayersbyofferingtieredinvestmentopportunitiesforcompaniesofdifferentinvestmentcapacityandinterest(currentlythereare2levelsbut athirdlowerlevelmaybeconsidered)
l Supportingmechanisms:
– Definedprojectendgoalsandstagedtargets (e.g.,ROI)
– OpportunitiesforIP/patentownershipforGeneralPartnersandProjectPartners
– Repositoriesofshareddataandfullnon-commercialaccesstoallIP/PatentsdevelopedforCMICmembers
22
CMICwillprioritizeinvestigationintokeychallengesthatarecommonacrossminingcompanies
StrategicChoiceCascadingFramework>PriorityInitiatives
Howwillweconfigure?
Howwillwewininchosenmarkets?
Whatareourgoalsand
aspirations?
Wherewillweplay?
Whatpriorityinitiatives?
CMICProjectPortfolioPriorityProjects
Exploration
l Acceleratedtargetingundercoverl Near-timedataretrievalandanalysis
UndergroundMining
l Realtimecontinuousundergroundmining
Energy/Processing
l Lowgradewasteenergyrecoveryincomminution
l Newcomminutiontechnologydemonstration
EnvironmentalStewardship
l MiningIndustryKnowledgeHubl Watersensorsl Closurecriterial Datamanagement
23
ThestagedprojectobjectivesallowCMICtotrackthematurityoftechnologyadoptionwhilepromotingasignificantshiftinminingindustry…
Illustrative:WaterSensorProjectStagedTargets
StageGatesExplained
l Provideindustrymemberswithinsightsonhowtocustomizethetechnologytosuittheiroperations,asalignedtoroadmaptargets
Stage2(Optimizedand
advanced:Industrycost-
drivers)
l Begintoadaptexistingtechnologiesforremote,real-timeapplications
Stage1(Safeandreliable:
Environmentalimpactreduction)
l Aspecifiedobjective(e.g.,technology)isworkedon,forexample:– Technologyconceptualizationandtesting
l Tobeginaddressingthechallengeofremote,real-timesensorwaterqualitymonitoring,the3yeartargetofStage1istoestablishinnovationresearchanddevelopnetworks,direction,andinitiativeswithserviceprovidersandresearchfacilities
Stage3(Allnew:Netzero
waste)
l Developnewsensorsforheavymetalsandcontinuedplatformintegration
l Ultimately, thegoalistocommercializesensorpackages forindustryuse
l Allobjectivesoutlinedintheroadmapshavebeenachieved
l Technologieshavereachedimplementationmaturityandarebeingdeployedacrossindustriesparticipants
Progressiontothenextstageisdependentupontheattainmentofthecurrentstage’sobjectives.Forexample,ifnotmet,thepossibilityexiststostill
bebusywithStage1inPhase3
CMICsPortfolioImplementationApproach
24
…theseprioritieswillbephasedalongthefollowingtimelines,withsomereachingtheirroadmaptargetssoonerthanothers
l CMIChasprioritizedareasthatarehighestimpacttoindustrybylisteningtoindustryparticipants intheTechnicalWorkingGroups.Theseparticipantshavedeterminedwheretheywouldliketheinnovationfocustobe andthisisinfluencingthesequencingofevents
l TheprojectsCMIChaschosenfirstalsowillshow“quickwins”oftheopeninnovationmodel.This will helpbuildbrandandcreateacompellingcaseforadditionalfunding.ThisbrandbuildingeffortisimportantasCMIChasundergoneorganizationalchanges(e.g.,purelyresearchbasedprojectstoindustrychosenones).Thiseffortwillre-invigoratecredibilityandconfidencebyindustryandgovernment
l CMIChaschosentostartwithinitiativesinPhase1andaspartoftheinitialfundingrequest,companieswillbeaskedtoallocatefundstothefollowingProjectPortfolios:
Exploration EnvironmentalStewardship
Processing
Phase1(Years0-3)
Phase2(Years3-5)
Phase3(Years5-10)
l ProjectPortfolioinitiativeswhichcouldbedealtwithinthenextphaseinclude:BetterChemistry,Equipment,andMinePlanning
l Theplanningfortheseinitiativeswillbegin1-1.5yearspriortothestartofthisphase
l CMICwilldrivetheadvancementofinnovativetechnologies,throughindustryadoption,totheirnaturalendpoints
l Thefocusduringthisphasewillbetoensurethematurityofimplementation
l Aswithotherphases,thisonewillconsiderthenextplanningcyclesandwhatindustryprioritieswillneedtobeaddressedduringthenextphase
CMICsPortfolioImplementationApproach
UndergroundMining
25
CMICincorporatesmultiple,agileprojectdeliverymodels…
1. CMICmanagedresearchconsortia:OurcurrentexplorationprojectisthelargestgeoscienceconsortiainNorthAmerica,addressingexplicitresearchneedsfortheindustry.
2. Projectintegration/coordination:Thisclustersexistingnewminingprojects,addspotentialnewprojectelementsandaccountsformulti-millioninvestmentsbeingmadebycompanies.Thiswillbeonecomponentofourundergroundminingprogram.
3. TechnologyDemonstration:Thisaccountsfornewtechnologythatisnotdevelopedfarenoughandistypicallytoocostlyforasinglecompanytotest.Inthecaseofenergyefficientprocessingweareexamining3-5newtechnologiesinthisgenre.
4. CMICDirected,PartnerDelivered:Theseprojectstypicallyoccurontheinitialstagesoflarger,consortia-basedprojecttoproveanideaorprovideabaselineofdata,informationandmodelsonwhichweneedtoproceed.
5. CMICInstigatedwith“Ecosystem”Participation:Theseareeitherverydifficulttechnicalchallengesthathavebroadapplicabilityandinterestorwheretherearesignificantgroupsworkingonelementsyetneedtobestimulatedtomoveintherightdirection.environmentalmonitoringtechnologies. Lowgradewasteenergyrecoveryisoneexample.
6. Mini-Consortia:Evolvearoundneedsofaselectgroupofcompaniesandincludetwonascentprojectsingenomicbasedsensorsforenvironmentalmonitoringandhybridairvehiclesforalternativetransportation.
Exploration
EnvironmentalStewardship
CMICsPortfolioImplementationApproach
UndergroundMining
Processing
