Future of Mining - key trends - keynote by Patrick Dixon for Rio Tinto

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Future of Mining Industry, commodities, steel, iron ore, precious metals. Futurist keynote speaker Patrick Dixon for Rio Tinto.

Transcript of Future of Mining - key trends - keynote by Patrick Dixon for Rio Tinto

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         Dr Patrick Dixon Chairman Global Change Ltd

Take  Hold  of  the  Future

do things you really believe in Life  is  Short    

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Who  cares  about    the  new  strategy?  

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All  leadership  comes  from  VISION  of  a  be?er  future  

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One word will dominate ALL

FUTURE !!

The future is aboutEMOTION

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Strategies often overtaken by events

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World can change faster than you can hold a board meeting

WGP  1980-­‐2013  (%,constant  prices)  

US  GDP  1980-­‐2013    (%,constant  prices)  

EU  GDP  1980-­‐2013    (%,constant  prices)  

Vietnam  GDP  1985-­‐2011  

>40%  WDP  in  Asia  by  2015� IMF  -­‐  adjusted  for  Purchasing  Power  Parity  �50%  populaVon  in  India  under  25  years  old

$3.4  trillion    !

Buy  mines  and  mining  rights

$2.4  trillion    !

Reserves  

               

Growth of Middle Class in Africa 250m people - $2 trillion by 2040

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300 million move to cities in China (66% of all seabourne trade in iron ore)

475 million to cities in Africa by 2030 !

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Europe Dying !

4 couples to produce single great-grand child !

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STEM  

Most  STEM  graduates  in  emerging  markets  

China  and  India  dominate  

STEM  degrees    including  post-­‐graduate  /  PhDs

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•Pigs  teeth  grown  inside  rats  •Mice  grow  new  teeth  from  nerve  cells  /  gum

Grow New Teeth

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• After 20 years - 80% alive v 50% on normal calories • Less cancer, diabetes, heart disease, strokes, brain decay

Monkeys on diet live longer

Slow or no ageing is a reality in animals Japan women gain 15 minutes of life expectancy every hour

• Rockfish, Turtles, some Whales

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• No signs of getting old

1  trillion  pages  a  month  !

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People love Cities and Offices

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Teleworking Only 2.5% of US workers are exclusively home-based 60% UK office workers have opportunity to work from home regularly - but few take it (during office hours)

Diversity  in  workplace  leads  to  

diversity  in  marketplace  

85%  of  leaders  of  largest  US  corporaVons  say  diversity  is  key  to  innovaVon

Forbes  study

 How  many  militants    to  shut  down                                                                            oil  producVon?

Tribal Gas / Energy

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Scale - Innovation Speed

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Eat  or  be  Eaten

How  commodity  wealth  can  strangle  economiesUN study: exchange rate rises so other business uncompetitive, military spending rises, corruption rises, instability rises

Nearshoring  Boom  

 11%  wage  inflaVon  in  China  in  2013  and  2014  

e-­‐commerce  hits  $1.5  trillion  2014  12%  all  UK  retail

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MOBILE Mobile influenced $29bn of retail sales in UK in 2013

50% of all UK online sales are using mobile

Internet of Things

90% all global data generated in last 2 years

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Sales of canned food in Mexico store = demand for more steel tins in China

Big Data

Future  of  Household  Appliances  and  

RoboVcs  ?

• Rio Tinto driverless trucks - 130 million tons of material

• 2.3m kms, >57 trips around the equator.

$40 Trillion Green Tech Boom driven by oil price, cost cuts, green activism

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“EU  emissions  of  CO2  equivalent  to  a  carpet  of    

CO2  =  28cmsthick  each  year  over  enVre  land  mass”  

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Shale gas 33% US supplies

3.3m US jobs $468bn pa + more oil

produced than Saudi by 2020 !

200 years global supply Up from 60 years in 5 years

5  coal  plants  replace  with  gas  =  9000  megawa>s  wind !

57  closed  in  US  in  2012-­‐14 Cheaper  coal  means  more  coal  will  be  burnt  in  Asia  

120,000 terawatts of sunlight /day7,000 times total power use

Solar cell generation parity

120,000 terawatts of sunlight /day 7,000 times total global power use Power Moscow from Libyan Desert

Why China will dominate wind power industry “40% EU power = wind by 2050”

Surplus wind to hydrogen - to methane ?

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•10% capacity used 4 days a year in Australia •Average $50 à peak $10,000 per MWhr

Managing  Peak  Power    

Germany  Power  Surplus

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• In  June  2013  electricity  prices  became  negaVve  -­‐EU150  /  MWhr

• Future for next-generation Super-Grids

Nuclear  energy  -­‐  expect  global  growth….�Challenge to achieve carbon reduction AND cut nuclear �Wild card = dirty terror bomb or another meltdown �Mining uranium in future from sea water using today’s technology

�30 million acres lost !

�EU 5% gasoline and diesel from food

25% of 2010 US grain fuel

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40% US corn burnt in vehicles Using 100% US corn would only drive 25% of vehicle miles

!85 Biofuel impact on food prices

do things you really believe in Life  is  Short    

image can be “dirty, dangerous, destructive, corrupt” commodity extraction creates many ethical challenges

Ethical  Mining    

Social  Contract    

Teams  in  top  half  of  Engagement  � 86% more likely to have better customer metrics � 70% more likely to have low staff turnover � 70% more likely to be highly productive � 44% more likely to be profitable

• Gallup meta-survey > 10 million people

Lesson  from  Non-­‐Profits  and  AcVvists  !

Connect  with  all  the  passions  people  have  and  they  will  follow  you  to  the  

ends  of  the  earth,  promote  what  you  do  with  pride,  and  may  even  be  willing  to  

work  for  you  for  next  to  nothing  !

….  and  the  four  word  phrase  is  ….  

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Building  a  Be?er  World

The  Magic  of  every  great  Business

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         Dr Patrick Dixon Chairman Global Change Ltd

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