Life as an expat can throw many hurdles at you.
You are constantly forced to adapt to new cultures, languages, forever meeting new people, and forge new relationships – there are no such things as comfort zones. But despite this, there are some things that you simply can’t anticipate or prepare for.
Steven Cox knows this all too well. A Chief Procurement Officer with more than two decades of experience serving the mining sector, Cox is used to leading and delivering major global contracts. And the events of the past few years have played a significant role in the inner workings of both his professional and personal life too.
Navigating disruption
Indeed, Cox was living in Moscow, Russia, when the Russian invasion of Ukraine began in February 2022. His role at KAZ Minerals had seen him lead a team of 30 contract managers and specialists to deliver major construction, off-site infrastructure, engineering, IS&T and mining contracts to support an $8 billion greenfield copper mining project in Siberia. But the conflict ultimately cut his time there short.
“The project was pushed back significantly to re-engineer the serious impacts of sanctions,” he tells us. “We’d already completed mine and infrastructure design aligned with significant contracts being in place for Komatsu autonomous mining fleet, maintenance and repair services, and large construction contracts. All of a sudden, sanctions immediately reduced the available market to predominantly Russia or China. Tier 1 OEM agreements for processing equipment and all related technology also had to be revisited and sourced via the available market. Whilst we could’ve stayed in Moscow, a city and people we absolutely loved, and continued on the project, we made a family decision to leave because of the uncertainty of the situation. We chose to leave and go to Zimbabwe, some would say from the furnace into the fire, where my wife was originally from and to reassess what was next.”
It is in stark contrast to how the year began. Russia entered 2022 with optimistic ambitions. Russian backers even drew up plans for two new copper mines at an investment of $15 billion. But the resulting war meant foreign companies sought to withdraw their influence in Russian mining. Ultimately, the European consumer response has been to look elsewhere and drove continued interest in places such as Australia, South America, Canada and African regions which had acceptable risk profiles.
It was a turbulent time to be living and working in Russia to say the least. Cox explains the importance of being agile and thinking on your feet in such situations. “It was challenging because we had to terminate contracts immediately, implement new ones, being extremely familiar and aware of the ever-increasing sanctions list and ever-reducing approved financial institutions list. Due diligence in all forms of risk, security, written and verbal communications was paramount in order not to breach these sanctions,” he explains. “We had to find solutions to the sanctions we were dealing with which were continually expanding. It was a highly unique situation but incredibly stimulating at the same time.”
For Cox, it wasn’t the first time he had to problem solve. Two years prior and like the rest of the world, COVID-19 was wreaking havoc on people’s lives and business operations. In the case of Cox, he was completing a three-year expat contract in Mongolia with Rio Tinto on the Oyu Tolgoi Project managing a circa $1 billion contract for shafts, underground development and construction. Having gone on holiday to the Maldives in March 2020, Cox and his family couldn’t get back into Mongolia as a result of national and global lockdowns.
“My three years were almost up so it meant I had to finish the contract remotely,” he explains. “We chose to go back to Australia foolishly and got stuck in the aggressive calamity that was Melbourne, Victoria’s lockdown for several months. That was tough after living an international lifestyle which wasn’t horribly over policed in Laos, Madagascar and Mongolia. This then led us to Russia which we loved but ultimately ended prematurely too.”
Mining’s perception
In the past, mining has quite often been regarded by some in the general public as an old-fashioned industry stuck in its ways. Boston Consulting Group previously estimated that the mining sector is between 30% and 40% less technologically mature than comparable industries. As such, there is a significant opportunity to generate value by adopting technology proven in other industries. But Cox is keen to squash that old mentality and stresses mining is an exciting place to be.
“That perception mainly comes from those who see it purely as an extractive industry,” he reveals. “There’s probably an ignorance of how much goes on behind the scenes and in the corporate and technical offices to ensure that’s all happening in a cost-effective and environmentally sustainable manner. The corporate background behind big, multinational mining companies is substantial and, in most cases, leading edge. If you haven’t worked in the mining industry, it’s harder to understand that.”
One of the biggest buzzwords of the past 18 months has been generative AI and how it can be used effectively in processes to scale efficiency and achieve cost savings. Cox recognises the potential new technology and AI can have in mining but believes that it is important to use caution when thinking about implementing new systems. “I guess the challenge with mining when you’re talking about analytics, product analysis, critical data and negotiation, the critical success factor before progressing has always been ensuring your data, processes, architecture and assumptions are clean and tested prior to any transition. You must have confidence in these factors if automated decisions and potentially external communication are then going to be artificially generated. There are still some unknowns in this space, so the tactical selection of the most suitable business improvements is critical.”
While the potential advantages are clear to see, the risk of not being able to fully trust the decisions of chatbots is still evident. In mining, failure to do proper due diligence and use inaccurate information can have devastating consequences. “If AI was to give you questionable information and you make production, commercial, technical decisions, or release that information to the market, it could significantly affect a company’s value and integrity,” explains Cox. “In the procurement world, data cleansing for historical and forecasted materials and bulk commodity requirements is very mature and software solutions optimising and automating decisions have been in place for many years. In procurement, it’s about streamlining and automating processes to become more efficient and agile to manage a much more volatile global environment since COVID, all while continuing to ensure ethics, integrity and approvals are maintained.”
Embracing change
Alongside not being particularly tech-driven, another tag that mining is often labelled with is being too male-orientated. In the face of talent shortages, particularly in procurement, encouraging tomorrow’s generation into the workforce is vital – and that includes appealing to both genders to bridge that gap. While progress has been made, diverse talent remains underrepresented across all levels within mining companies. Cox believes mining is actually at the forefront of diversity and inclusion management.
“Rio Tinto and other large mining companies are leading most organisations and industries when it comes to diversity,” he says. “Diversity is important and needs to happen. But for a long time, mining was perceived as a bit of a boy’s club. It’s now extremely pleasing to see the diverse nature of boards, and executive teams and this cascading through all levels of the business. Where career progression opportunities may now be more limited for certain genders, we may start to see extremely experienced mining professionals across all disciplines looking outside of their present organisations and potentially the mining industry.”
Looking ahead, Cox is full of enthusiasm for the future of mining and is excited about what the next few years for the industry could hold. “There’s mining and there’s mining,” affirms Cox. “I’ve been extremely fortunate to have worked for some great tier-one mining companies. And the reason that I do is because their upstream feasibility is phenomenal, collaboration is second to none, processes, policies and documentation are incredibly mature, and the quality of your colleagues ensures you’re always learning and developing across all areas of the business.
“I’ve also been fortunate to witness many very successful mine closure and rehabilitation projects which benefit local communities for many years to come. Sustainability and innovation are always absolute priorities with unwavering environmental consciousness and extremely diligent reporting. I’d say moving forward it’s important for all companies, not only mining, to invest more heavily in sustainable procurement resourcing and audits which has a presence, but the surface is only just being scratched.
“There looks to be a lot of movement and portfolio diversification amongst the larger players now in mining with volatile commodity markets suggesting it will be an extremely interesting next few years. This running in parallel with a much larger global microscope on environmental compliance and AI implementation where sensible to do so makes mining an extremely attractive industry to be part of moving forward. I have recently agreed to join another Tier 1 International Mining company in a senior leadership role which will now see me move to a new country and again embrace the unique challenges and benefits these fantastic opportunities present.”
