GineersNow Engineering Magazine November 2016 Issue No 009
GineersNow Engineering Magazine November 2016 Issue No 009 Caterpillar Inc: A look at the company's social impact. Exclusive interview with Jean Savace, Vice President and Chief Technology Officer of Caterpillar Inc. Exclusive: Mining industry, social good, philanthropy, CSR, social impact, social innovation. Special Feature Stories: HVACR, Oil & Gas, Construction, Heavy Equipment, Machinery, Tools, Civil Engineering, Mechanical, Electrical, Plumbing, MEP, Water, Wastewater, Renewables, Energy, Petroleum, Heavy Equipment, Rental Equipment, Contractors, EPC. Country Focus: United States, Canada, United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, United Kingdom, Singapore, Hong Kong, Philippines, Malaysia, Indonesia, India, Australia More engineering stories at https://www.gineersnow.com/topics/magazines
GineersNow Engineering Magazine November 2016 Issue No 009
Caterpillar Inc: A look at the company's social impact. Exclusive interview with Jean Savace, Vice President and Chief Technology Officer of Caterpillar Inc.
Exclusive: Mining industry, social good, philanthropy, CSR, social impact, social innovation.
Special Feature Stories: HVACR, Oil & Gas, Construction, Heavy Equipment, Machinery, Tools, Civil Engineering, Mechanical, Electrical, Plumbing, MEP, Water, Wastewater, Renewables, Energy, Petroleum, Heavy Equipment, Rental Equipment, Contractors, EPC.
Country Focus: United States, Canada, United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman, United Kingdom, Singapore, Hong Kong, Philippines, Malaysia, Indonesia, India, Australia
More engineering stories at https://www.gineersnow.com/topics/magazines
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
greater collaboration, and<br />
accountability.<br />
Innovation<br />
There is new technology<br />
everyday and mining<br />
companies seem to not<br />
embrace modernization.<br />
But when they do, if at all,<br />
they don’t engage with it<br />
externally and only adopt<br />
with the old techniques.<br />
Mining companies need to<br />
take advantage of networks,<br />
machine learning, genomics,<br />
wearables and hybrid<br />
ships that will drastically<br />
improve operations. In the<br />
manufacturing side, it’s<br />
possible to have collaborative<br />
ecosystems, digital workforce<br />
engagement, improved asset<br />
management, 3D printing<br />
and modularization.<br />
Photo by Bolour Kavir<br />
China’s pivot<br />
Being a powerful nation<br />
with a global impact, China<br />
has domestic trends that<br />
change the miners’ markets<br />
– especially now that they<br />
decided to change the way<br />
they manage currency<br />
value. Large-scale mining<br />
companies should be<br />
aware of the repercussions<br />
of China’s decisions, and<br />
develop plans relative<br />
to China’s investment<br />
initiatives and leveraging<br />
Chinese expertise in design,<br />
construction, and financing.<br />
Adjustment to the new<br />
normal<br />
It’s likely that the trends<br />
won’t change for a while,<br />
so miners should be able to<br />
adopt somehow. One way<br />
to do that is to ramp up<br />
in production, in an attempt<br />
to reduce unit costs and to<br />
consolidate market shares.<br />
Finding that balance<br />
between current and future<br />
demand factor require the<br />
ability to scale production,<br />
labor and other inputs and<br />
outputs.<br />
Global energy mix<br />
The biggest threat for mining<br />
companies is renewables. Its<br />
flourish has been apparent in<br />
recent years, losing the gains<br />
of miners.<br />
But ironically, fossil fuels are<br />
needed in the production of<br />
alternative power sources.<br />
What mining companies<br />
could do is pay close attention<br />
to global energy demand<br />
patterns and shift to the likely<br />
stronger demand for uranium<br />
(for nuclear generation) and<br />
commodities used in battery<br />
storage (to address the<br />
intermittency of renewable<br />
generation).<br />
Stakeholder dialogues<br />
Miners are also affected by<br />
the increased expectations<br />
from stakeholders, making<br />
it harder to survive in the<br />
thriving industry.<br />
The challenge is to find a<br />
way for new tactics that<br />
work, because the old ones<br />
will no longer do. They need<br />
to explore a new form of<br />
stakeholder engagement to<br />
meet demands of multiple<br />
groups<br />
Capital crisis<br />
For an industry going<br />
downwards, it’s difficult<br />
to attract capital. Mining<br />
companies will be at<br />
risk if they don’t seek for<br />
alternative sources of<br />
financing to push through<br />
their operations.<br />
They have to be creative for<br />
sure in finding new financing<br />
options. Suggestions include<br />
commercializing dormant<br />
assets, pooling resources,<br />
pursuing debt reduction<br />
strategies, considering<br />
crowdfunding, and seeking<br />
government funding.<br />
Tax management<br />
There are new regulations<br />
that change the tax<br />
implications associated with<br />
a range of business activities.<br />
This affects miners through<br />
heightened scrutiny of their<br />
tax compliance, substance<br />
and transfer pricing policies.<br />
Miners could assess their<br />
operational and corporate<br />
structures, on top of<br />
understanding the financial<br />
implications of the new tax<br />
rules.<br />
Mergers & acquisitions<br />
Contrary to predictions,<br />
the mining M&A has been<br />
disappointing. Deals in the<br />
mining industry are mostly<br />
divestments and rescue-type<br />
deals in the recent years.<br />
But amid the situation,<br />
today is the best time to<br />
make acquisitions, especially<br />
uncontested assets.<br />
Safety, security, and<br />
health<br />
Workers should never be<br />
discounted in the equation.<br />
Actually they have to<br />
be empowered, through<br />
expanding their safety,<br />
security and health. Mining<br />
companies need to enhance<br />
safety records and security<br />
postures, by strengthening<br />
their safety analytics,<br />
adopting more robust mental<br />
health policies, improving their<br />
security protocols, employing<br />
risk monitors, conducting risk<br />
assessments and improving<br />
crisis management.<br />
NOVEMBER <strong>2016</strong><br />
Mining <strong>Engineering</strong> and Its Importance<br />
43