Supply Chain Innovation Panel Event Review: METS Leaders Promote Value of Collaboration
Expert panelists raise the importance of harnessing the collective knowledge and capabilities across METS organisations to drive change for a sustainable mining future.
Austmine recently held a Supply Chain Innovation Panel Smart Mining Networking Event in Newcastle which provided an opportunity to hear the experiences and learnings from NSW METS leaders during a time of great disruption and change.
The panel consisted of:
- Sean Taylor, Managing Director & CEO, Komatsu Australia
- Kari Armitage, Managing Director, Quarry Mining
- Warwick Sommer, Executive General Manager - Innovation & Service, Ampcontrol
- Alan Broome AM, Chairman Emeritus, Austmine (Facilitator)
Managing Workforce Implications of COVID-19
After the whirlwind past 12-months businesses around the world experienced, it would have been remiss to start the discussion on any other topic from COVID-19.
The panel reflected on similar strategies employed to ensure staff health and safety as a priority for managing the effects of the global pandemic.
With limited information of how to manage a “plague” in risk manuals or contingency plans, Sean detailed that the starting point for Komatsu’s large global workforce was to identify those employees most at risk and isolate them from potential risks immediately. Their strategic approach then moved more broadly to coordinate FIFO needs and supply chain obligations with major customers and bodies such as the Minerals Council of Australia.
Kari provided great insights into the flexibility that SMEs had to deploy to manage the crisis through reflecting on her underground mining services business of around 100 employees.
“The first step was to ensure continued operations for our customers, so we split shifts for site crews for the first time in their history. To resource the shifts management and our sales team often worked alongside the maintenance crews on site.”
The panel applauded this approach from Quarry Mining and lauded the importance of a strong workforce culture and collaborative ethos needed from small businesses to help navigate the pressing challenges faced.
COVID-19 and the Supply Chain
While Ampcontrol initiated a program of pre-planning with customers to manage field services and time on site during the pandemic, crisis also led to new opportunities for the business. Warwick talked through an amazing initiative led by Ampcontrol to diversify their business and adapt their manufacturing process to answer the government’s call for the supply of ventilators.
“Production of the ventilators was the most satisfying project I have ever worked on. Following an approach by NSW Health, Ampcontrol had a prototype ready in 11 days and a week after that we had a proven trial in the market. This shows the possibilities of uniting around a common cause.”
Warwick noted the keys to success of the project being early alignment of all parties involved and the importance of collaborating to move quickly and engage external R&D capabilities.
Sean talked through some interesting observations at Komatsu during the early days of the pandemic, where mining equipment sales actually increased by up to 25%.
“At Komatsu, we in fact saw the toilet paper effect come into action in the mining industry. Organisations rushed to ensure continuity of operations by purchasing supplies, and we had to respond by meeting large orders and investing in inventory to support our customers.”
With this surge in orders coming in at the onset of COVID-19, Sean mentioned that there may be a correction in the near future, but the Australian market is in a fortunate position of having continuity of operations.
Sean also noted that while there was an adjustment period for international freight and logistics, moving equipment and supplies across countries has become a smoother process. However, there are still some challenges with air freight and delays from ports in countries such as the USA.
Innovation and Opportunity
As mining businesses aim to gear up operations for future growth, they are navigating a range of challenges and opportunities impacting business as usual, including sustainability drivers, leveraging digital transformation and skills development. The panel divulged on how they are supporting their customers in navigating these issues.
Kari discussed her passion for innovation and talked through some smart solutions being worked on by Quarry Mining to service the needs of underground coal customers.
“At Quarry we operate on a philosophy that if you make mines safer, they will be around for longer. We are therefore focusing on addressing ESG concerns for customers.”
Such products on the horizon mentioned by Kari included a dust suppression system for the underground environment developed through a collaboration with Curtin University and the advancement of pneumatic bolters.
Warwick added that there is a range of opportunities to improve the operations of mines from a productivity, safety and environmental perspective. However, there is an opportunity cost associated with product development, so Ampcontrol is focusing on aligning product development to key areas of benefit. The next horizon in Warwick’s opinion is to make people’s jobs easier to do more with what we have.
Sean focused on the area of decarbonisation, which is a major focus of mining customers and within R&D departments for OEMs globally.
“Industry is increasingly focusing on tier 1 emissions, with electrification and the removal of diesel now firmly on the radar for mining customers. Trucks are the first being addressed but it is difficult to drive an electric truck with 300t payload up a hill. This is a long journey that will require collaboration and integration with the best battery and hydrogen innovators.”
Sean also noted that automation is now commonplace for mining vehicles in Western Australian operations, especially for haul trucks, and emphasis is now being placed on rolling the technology out to east coast mines and other equipment.
Optimism for a Strong NSW Mining Industry
While there are certainly challenges faced in the market, the point was raised that the mining and METS sector has yet again played a central role in helping Australia navigate an economic crisis. The panel were quizzed about why there are optimistic for the future, focusing on the opportunities for the Hunter region to drive growth and sustainability for their workforces and communities.
Warwick highlighted that mining will always play an important role in Ampcontrol’s strategy and they will work with their customers closely to ensure a slow and steady transition for their businesses.
Kari echoed this sentiment by stating that she is proud to be in mining and proud of the role of her business in making future improvements for the industry.
Sean rounded the discussion off by stating that the future looks bright for the Hunter Valley, which has been an area of great positivity for SMEs and a success story for modern mining innovation. He has no doubt that the METS sector will rise to the task of transitioning to new energy sources and business areas across the coming years, and the Hunter will continue to drive operational excellence long into the future.
Collaboration Critical to our Future
Panel facilitator Alan Broome AM rounded out the discussion by summarizing the panels thoughts into an important message for the audience – the future is all about collaboration. This is just as important for a company of 70 employees as a company of 3,000 employees. It is absolutely central to solving our key challenges for a sustainable mining future.
Austmine would like to thank Sean, Kari, Warwick and Alan for their time in joining our panel. We would also like to thank Ampcontrol for their sponsorship and support of the event. For more information on upcoming events see our webpage here.