Gencor - Its Formation And Growth In International Mining

My qualification to speak on the globalization of the the mining industry comes from having worked in the industry in Europe, North and South America, Africa and Australasia in positions ranging from exploration geologist to chief executive. For about a third of my career I have lived and worked in the Southern Hemisphere. And for much of the rest of my career I have been involved in or responsible for activities in the Southern Hemisphere. This has given me the opportunity to experience globalization from the sharp end, as it were. This means speaking English with an Australian accent, Spanish with a Chilean accent, French with a West African accent and Dutch with an English accent. My topic is globalization, especially of the mining industry from a Southern Hemisphere perspective and specifically the experience and history of Gencor in that context. First, I will say a little about what globalization means to the southern part of the world: How and why the South differs from the North and how the challenge of globalization affects a south-based company differently than a northern one. I will also detail how Gencor has made significant progress in globalizing through the acquisition of mining assets from Shell. As Fig. 1 shows, I have divided up the world into northern and southern components, rather than hemispheres. The southern world comprises mainly countries that have emerged from the status of economic - if not political - colonies of nations such as England, Spain, Portugal, France, the Netherlands and, surprisingly, Italy and Germany. I have not considered the Indochinese and Arabian peninsulas in my southern world. The emergence of the. former is still in its early stages while the latter is clearly a part of the northern economic system. Large parts of Africa and South America are geometrically in the Northern Hemisphere but economically in the southern world. The reverse is the case for the IndoPersian peninsula. With the distinguished exception of Australia and South Africa, most of these countries nationalized their mining industries and mineral patrimony after attaining political independence. A major element of the globalization of the mining industry is related to the privatization of the mining industry in these countries and to the opening up of their min¬eral patrimony to non-national exploitation. The Southern Hemisphere is the watery part of the world. It is almost three quarters ocean as against a slight preponderance of land in the north. Economically, ocean areas have only a fraction of the productivity of land, except in a few oil-rich areas like the Gulf of Mexico and the North Sea. The consequence is that even on an economically level playing field we would expect the south to generate only about one third of the world's economic product.