There is growing acknowledgement that successful organisations, including mining companies, achieve their competitive advantage by better managing their employees, customers and other stakeholders. The fact that I have been asked to address this conference is perhaps evidence of the recognition of the importance of ensuring the improved management capabilities of the personnel within Australian mining companies. As many of you will be aware, prior to my appointment to the role of President of Minera Alumbrera Limited (MAA), the operator of the Bajo de la Alumbrera project, my career had been more generally focussed on industrial relations and human resources management. My appointment was met by surprise in some quarters, as it is unusual for a person without the technical background of a mining discipline to manage a world-class mining operation. However, it was recognised early in the life of the Alumbrera project that the operation did not lack technical expertise or a committed workforce; rather what was required was innovative management of the project and its operational resources, particularly given that we were operating with totally green' workforce in a country without a large-scale mining culture. It is my experience that a particular shortcoming of mining companies is that they have tended to grow' managers based on their technical expertise rather than people management skills. Historically, many companies have assumed, or at least hoped, that their better technical people would develop the requisite skills to take on the challenges of management. Such philosophy has not always met with success. Whilst the topic for my presentation was originally published as People in the Mining Industry, within the context of the overall theme for this plenary session, People: Education for the Future, it is a subject with an extraordinary breadth of possibilities for discussion. Therefore, I have chosen to redefine my presentation to People Management Issues in Offshore Mining Projects,an issue which I consider to be an important area within the overall topic and one which has particular currency given the increased tendency by Australian miners towards offshore exploration. It is also relevant from the perspective of continued rationalisation of our industry, the recognition that there will be more large-scale, global corporate mining entities and that significantly more mining professionals will become citizens of the world'. We therefore need to prepare our future leaders for these challenges. The topic also allows me to highlight the importance of an holistic management approach as the establishment of a new project in a foreign environment puts into stark relief the need for the application of the full range of competencies, rather than the narrow technical' approach to doing business. I hasten to add, however, that the mining industry is not alone in this regard and I was interested to read an article in the Weekend Australian of 22/23 January 2000, which reported on the first key speech of former Westpac CEO, Bob Joss, as Dean of the Stanford University Graduate School of Business. He said:_x000D_
We know that when our students go out into the world, if they have to struggle, it will not be because they're not smart enough, or they don't have enough good ideas. It will be because they struggle over managing themselves and their relationships to other people. The article then went on to say that Bob Joss foreshadowed an initiative to build alliances between the Business School and other Humanities departments within Stanford University to draw on their learning. Other business schools have also recognised this need, albeit somewhat late in the day, as have the most enlightened of modern corporations; in summary, successful businesses have recognised that in an age where competitive advantage through, for example, technological breakthroughs is very short-lived, it is the quality of management that will provide the leading edge. By using the Alumbrera project as a case study, I will identify certain of the challenges with which companies and individuals may be confronted in the establishment of a greenfields project outside Australia. However, many of the issues raised will have direct application in the context of the development of an Australian operation. My objective is to provide an indication of areas which should be considered at the formative stages of a project's development, with particular focus on the issues of people management. I would expect that such a study would be of benefit to companies, education institutions and individuals in preparing themselves for similar experiences.