Profile 23
ROLLING OUT CHANGE
Andrew Cole’s first job out of university was flying heli-borne magnetic surveys over Arkaroola. Now 23 years later he’s back in South Australia, taking the lead at OZ Minerals and not wasting any time applying the knowledge gained along the way. By Megan Andrews
Change and unpredictability is a constant for any modern business and nothing new to the mining industry, but in recent years the uncertainty has upped a notch amidst volatile economics, shifting markets and changing customer and regulatory demands. Traditional business models are increasingly being put to pasture, with agile enterprises interrogating their structures and processes and broadening their approaches to risk. Taking the helm at OZ Minerals in December last year, Andrew Cole could well be the epitome of the new mining philosophy. His modern views on workforce may sit more typically on a Gen Y, but over 20 years working in exploration and mine management around the globe with Rio Tinto have resourced him with a robust working knowledge - and the practical experience to understand with confidence where mining companies need to adapt. This year has seen some big changes roll out for OZ Minerals – a new strategy with an emphasis on customer and lean business, moving the head office to Adelaide, an organisational restructure and completing the overhaul of processes at Prominent Hill, not to mention the current review of the Carrapateena Pre-Feasibility Study. So will 2015 define an era of transformation in the history of this modern mining company? Andrew doesn’t see it that way at all. “When is steady state?” he asks. “There is no such thing. You have to keep changing. “Perhaps in the past you could review, adapt and settle. But not today. You need to constantly review and change to keep your business fundamentals sound.” Central to this is a firm view that running a mining company, or any business, is about
resourcing for today, then scaling as required. “The optimisation of practices and processes that we’re working on at Prominent Hill are about ensuring the business fundamentals are right for now,” he says. “It’s about getting clear accountabilities, clearer and simpler organisational structures, fit-for-purpose maintenance practices, and fitfor-purpose operating practices.” In addition to driving continuous improvement, Andrew is passionate about improving safety outcomes and developing people; leadership skills he says you need to learn on the job. “I’ve been to London Business School, Duke University, and they teach you the theory. But theory needs to be enacted for it to be effective, and it takes practice.”
“OZ Minerals has built a strong reputation in South Australia and we want this to stay. Being able to give something back is an important part of the job.” Moving forward, Andrew is excited about the prospects for Carrapateena, with the current review including an analysis of rail to Prominent Hill, investigating alternative mining methods and progressing innovative hydromet studies. “Hydromet uses existing technology in a re-worked flow sheet to upgrade the copper content,” he explains. “Our concentrate would be the highest copper content concentrate in the world with the lowest deleterious elements. It halves the amount of concentrate you end up shipping and the environmental impact is also halved.” (See page 27 for more on hydromet.)
He says it’s difficult to overstate the importance of organisational culture, particularly in today’s rapidly changing environments where innovation is key.
With several countries including parts of China only taking super clean concentrate, the technology opens up a whole new market.
“Ideally a company needs a culture where people are confident to experiment, but that’s hard to get because you need to allow mistakes. If you jump on people when something doesn’t work out then you kill the desire to try.”
Andrew’s understanding of Chinese investors and customers derived from senior management roles, including two years living in Beijing establishing a Chinalco/Rio Tinto Joint Venture, will no doubt be an asset to OZ as the company moves ahead.
Reflection goes hand in hand with innovation and Andrew wants to prioritise this in OZ Minerals. He says businesses must be reflective about how they operate and can easily get stale if they don’t do that – and it gets harder the longer leaders stay in a role. “A healthy level of change can be good, it brings ideas, energy… new ways of thinking and working.” OZ Minerals’ focus on people, including workforce diversity, Indigenous opportunities and local communities, was one of the attractions for him and is something he is keen to progress.
The Cole family, which includes three sons aged 12, 17 and 21, has enjoyed a variety of cultures, with several years in Canada and exploring Alaska among the favourite experiences. For now, the outdoors oriented bunch are more than happy to immerse themselves in South Australia, getting out and about most weekends. “We’ve been to Innes National Park, the Coorong, crabbing at Pt Wakefield. We go camping a lot, catching food, making fires, hiking, mountain biking – the boys love it!”
ISSUE 01 RESOURCING SA Spring 2015