EDITORIAL PAGE (June 29, 1992)

After years of cutbacks in search of improved productivity, only the best of the best are left among the ranks of mining professionals — or at least that’s the optimistic view.

Others say those left in the industry simply kept their heads down during difficult times. The original thinkers, who made their boards of directors uncomfortable by asking tough questions, were the ones let go. What’s left are the mediocre, risk-averse, conventional administrators.

The cream of the crop or the leftovers? Regardless, the challenge facing the industry is how to make the most of the “human resources” now available. When top people move on to other challenges, it’s not always easy to replace them. Sometimes a lawyer, an accountant or a straightforward businessman is the best person for the job. But the unique nature of mining leads us to believe that the ideal candidate is one who knows the business firsthand — a mining engineer, geologist or, like Inco Ltd.’s new chief executive officer, a metallurgist.

Recently a number of high profile positions in the industry have been filled. While some are still up for grabs, more vacancies will soon be available. How their replacements handle their new duties could affect the industry’s future. Geddes Resources, for example, is now without Gerald Harper’s leadership. His job is one in which the entire Canadian mining industry has a keen interest. Geddes’ Windy Craggy project in northwestern British Columbia has been singled out by an alliance of 50 environmental groups as the province’s most undesirable mining project. How the new boss at Geddes handles the job will be the subject of much discussion and could affect how other environmentally sensitive projects throughout Canada are approached in the future. Placer Dome, the country’s major gold producer, is also going through a change in leadership. Only five years after being formed, the company is seeking its third president, so one of the top priorities here will be to maintain continuity with a rich mining heritage.

Placer Dome has often talked about the challenge facing large producers to continually replace reserves. Is it any less urgent a challenge to replace quality executives with people who fully comprehend mining issues as well as financial and organizational issues?

Noranda Exploration’s John Harvey has been that organization’s driving force for a decade. Should he choose to retire it would leave a large hole in one of the country’s major exploration players. Harvey was able to deliver a large chunk of the Hemlo gold deposit to Noranda because he knows the junior mining business and got involved in the play early. Would a non-mining executive have the same ability?

The people who hold these positions are not bit players on the mining stage. Harper, Petrina and Harvey rose through the ranks of mining companies. That has been one of their strengths, but in a world where style is sometimes more important than substance, their mining background may also be their weakness. In an internationally competitive industry like mining, broad experience will always be an essential asset for senior managers. Even so, when it comes to choosing someone to lead a mining company, there is some extra credibility to a candidate who knows the industry from the inside.