RESA Breakfast Change in the Resource Industry An Opportunity for Innovation

Bob Johnson – Maptek 3 December 2015

Economic Decline in Australia

• So often in the Lucky Country we go from Boom to Bust.

• Australia escaped the GFC because of China’s demand for mineral resources.

• But we failed to grasp the nettle when times were bright: – Projects got bogged down in permitting and we missed the financing

wave. – This prevents economic adjustment when non-competitive industries

need to be replaced by modern industries. – And capital moves to where it is most welcome.

Do something different to stay in front

Australian Miners – A Long History of Innovation

• A shortage of labour has always existed in Australia and this has forced companies to embrace efficiencies and innovative practices.

• This innovation culture has kept Australian mining competitive. We are early adopters of all technology.

• Mining cycles deliver optimism in good times and gloom in poor times. Low commodity prices force change in mining practice and this creates windows of opportunity for the innovator.

3

Product Development Never Sleeps

• Froth Flotation Developed in Broken Hill to recover zinc from tailings. This was the key plank in the formation of ConZinc - now Rio Tinto.

– Innovation in that area continues to this day with new designs, reagents and nanotechnology still delivering added benefits.

• Mining Software Development began in the mid 1970s to cope with the explosion of data and the need for rapid assessment.

– A wide range of products has been developed in Australia and these products are now dispersed around the world.

4

So How Does This Process Happen?

• As a mine is developed, a range of issues develop where improvements could be made. These may involve equipment changes, process changes, design changes or even new technologies.

• By maintaining a dialogue with the mines, these needs become evident and therein lies the opportunity to help improve the outcomes.

• Solving such problems by innovative development leads to the creation of new products. If they work well for one mine, then they should work well for others.

• Collaboration is paramount – the Mine supplies the problem and the Innovator supplies the imagination, passion, and often the funds to create the outcome.

Opportunities Abound

• Because we have a culture of having-a-go, use your imagination and develop your lateral thinking abilities.

• Remember things are not always what they seem. A problem can be approached in many different ways. A large incumbent supplier is often too comfortable to fund an aggressive R&D program and will slowly fall behind.

• As technology evolves new ways can be adopted (by almost anyone with enthusiasm) to solve an old problem.

Be daring, be different, be impractical, be anything that will assert integrity of purpose and imaginative vision against the play-it-safers, the creatures of the commonplace, the slaves of the ordinary. Sir Cecil Beaton

A Bit of My Personal History always trying to improve

• As an undergraduate geologist I developed an interest in computers and how they could be used in mines. I first became an academic after doing a PhD in this work.

• I finally moved into the commercial world in 1976 to practice what I preached. I developed the commercial software ideas by talking to potential users and writing some software to perform simple tasks that were needed by these customers.

• After buying computer bureau time for a year, we took the plunge and bought one of the first mini-computers and a plotter using HP finance and the first year’s profit.

Good enough today beats perfection tomorrow George Patton

Interdata 7/32 and Calcomp 960 Plotter

8

Rapid Expansion

• The computer and plotter cost about $125,000 in 1977. A normal salary was about $6,000 pa at the time. My home was mortgaged to cover the finance payments.

• We doubled the business that next year and then bought a bigger computer and plotter, and used the older system to open an office in Brisbane.

• Again the following year we doubled the business and repeated the process.

• The following year we sold out to a large computer company. Worry about being better; bigger will take care of itself. Think one customer at a time and take care of each one the best way you can. Gary Comer, founder of Land's End

Mining is Fundamentally the same the world over. Focus on the Technology Opportunity

• What works here will work elsewhere

• Develop a global marketing network

• Customer relationships underwrite expansion

• Large corporate miners operate across the globe

The customer is always right Harry Gordon Selfridge

10

Never be Afraid to Try Something NEW

• Maptek, set up in 1981, focused on a new market to sell user-friendly packaged mining software, and Vulcan became the first 3D mine system.

• By pursuing other opportunities in Adelaide with DSTO in 1995 we stumbled across the 3D laser scanning technology that was emerging in the defence arena. We formed a Strategic Alliance with DSTO to create unique software and from this base we embarked on hardware development in late 1999.

• In 2002 we received an R&D Start Grant for $2.4m (Maptek had to contribute the same amount) and we developed the I-Site 4400 laser scanner here in Adelaide.

• That product line is now a major component of our business. Our biggest single market is China. Hi-tech goods can be made here and exported anywhere.

CHINA GOLD Tianjin 2015

Failure

• I have had far more failures than successes with my ideas. With every failure I learn something. Weak people will mock your failures without understanding that the only way to succeed is to fail, then try again. Hopefully we do not repeat the same failures.

• So to stay ahead of the game and fulfil our role as innovation leaders we have to continuously invest in research and development to succeed and serve our customers.

• You have to trust your team. 99% can be trusted. Protect yourself against the 1% who cannot, and remember the ABC rule of employing staff.

Mistakes are the portals of discovery. James Joyce

I-Site 3D Laser Scanning

• The original technology continues to be enhanced and powerful software is being developed to expand the application of our scanners to improve safety and efficiency.

• We have developed SENTRY - a movement monitoring system for managing geotechnical highwall risk. This was done in collaboration with Hillgrove Resources at Kanmantoo. It is targeted to displace more expensive and cumbersome radar systems. It is finding rapid acceptance.

• I-Site Drive is another enhancement that takes the process of surveying to new levels using mobile mapping by simply driving around a mine site or stockpile to create 3D maps.

• Put forward ideas no matter how wild and exotic

• Talk to customers about what they see as their needs

• Our customers want us to lead and set the pace

• Our competition need to see the hurdle always get higher

• Success will not come through debate, only action

• Just do it! And remember the elegance of simplicity.

If you can imagine it, you can achieve it. If you can dream it, you can become it. William Arthur Ward

Have a go you have nothing to lose

Our Customers’ Success is our reward

• Your reputation is the most valuable thing you have

• Care for your customers - become essential for their success

• Be honest with staff, suppliers and customers

• Employ those who can do a job better than yourself

• Take measured risks - this makes life interesting

• Be an innovation incubator

Imagine the outcome, then just do it

There are no hard times for good ideas Harry Gordon Selfridge I-Site Drive introduction video http://www.maptek.com/video/introducing-i-site-drive/

www.maptek.com