This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
Unless Canadian mining companies do a better job of controlling their costs, they won’t be able to maximize benefits from the global resource revolution, cautioned a leading business consultant. Robert Samek, a director of McKinsey & Company and lead on its Canadian mineral and energy practice, was a keynote speaker at an Ontario Mining Association board of directors meeting earlier this week.
The title of Mr. Samek’s presentation was “Canada’s competitive position in the resource revolution.” “Canadian miners need to figure out how to make the most of that revolution,” he said. Despite short term price fluctuations, he foresees a huge increase in the demand for minerals.
“It took the U.K. 150 years to double its GDP. It took Japan 33 years to double its GDP. Now, China and India are doing that in 10 to 15 years,” said Mr. Samek. “This pace of change is unprecedented. It is a middle class explosion.”
He estimates to size of the middle class consuming society on a global scale to triple between 2010 and 2030. “There is a continuing march to urban centres,” he said. “People are not going to be middle class living on the farm.” Continue Reading →