THE ELECTION’S HIDDEN MESSAGE

The turnout was over 48% - the second highest midterm since 1966.  In this US voters had much in common with elections taking place in many other countries.  Citizens are fed up with inflation, cost of living, security issues, and incumbents.

In the US most voters are common sense moderates.  However, regardless of party affiliation, voters were dismayed at Trump, tired of paying increased prices for gas and groceries, and concerned about an ongoing war.  

Yet the turnout and the passion are revealing.  Economists tout the strength of the stock and the job markets, but Americans are nervous.  Particularly about AI.  They’re worried their jobs will be replaced, that it’s happening faster than in former tech revolutions, and that they are rapidly losing agency about their livelihoods and future.  The fear about data centers is not only about environmental issues (frequently false or that can be mitigated) but represent loss of control over their communities.  Finally, the tech scions, many tremendously wealthy, tell them that AI could wipe out savings, or even put humanity’s future at risk.

At the same time, companies, including mining, are rapidly adopting AI in every capacity throughout their operations, and that leads to an increased sense of security about safety, productivity, efficiency, and value across the enterprise, but with the result of less attention paid to human stakeholders. 

This election demonstrates that that will be a huge mistake.  Becoming too comfortable and satisfied with the technology and believing that less time and attention will need to be devoted to communities and organizations, will be a grievous error.  If anything, it would be wise to plan on much greater engagement.

From the Earth to Space

For years I’ve enjoyed reading a blog by a renowned marketing guru and have often agreed with his posts.

However, a recent essay used a mine as an example of “extraction” but not as an “investment,” meaning that the mine’s usefulness ended with a “taking” but failed to generate growth. Wow, I thought! How could anyone so savvy, educated, and esteemed think that?

There is no growth without mining or really all natural resources. Everything we build, use, develop, power, or invent consists of some material that has come from mining. There is no “lifestyle” or “quality of life” without that fact.

Part of the problem is a lingering 19th century perception of a grizzled guy with a pick and shovel despoiling the environment. That image is as inaccurate as saying our main mode of transportation is by horse and carriage.

Today’s large mines use the world’s most advanced technologies, including fully electric, autonomous haul trucks, AI, and robots. Robots in mining are transforming how mines operate, improving safety, productivity, and operational efficiency. All of this means safer, greener, and more efficient mining.

The spotlight on mining’s importance to US technology leadership was particularly visible during the recent discussions on rare earths and related geopolitical developments. And for those following the plans of space exploration companies like SpaceX, commercial space mining will usher in the “largest resource rush” in history becoming the next frontier.

Mining’s ability to generate growth will be truly “out of this world.”

Policies Have Consequences

In many California communities residents are angry over the high-density multifamily housing that legislation is forcing into single family neighborhoods and feel that their elected representatives have failed them.

California does need to build more housing – particularly that which is affordable.  One of the problems is that there is a shortage of available land.

Currently 47.5% of California land is protected through a variety of mechanisms – public lands, conservation easements, local ordinances, etc.  This is one of the highest percentages in the US for open space preservation.

Yet the 47.5% does not include the additional 2,350 square miles of land conserved in the past five years under the 30x30 goal of which California has been a leader. This includes the expansion of state parks, the creation of new wildlife refuges, and the acquisition of private lands for public use.  In the future the 47.5% figure will continue to be increased and eventually be revised upward.

Certainly we all want to ensure that our beautiful local, state, and national parks are protected as well as particular land parcels throughout the state.  Not every piece of land should be developed.

However, not every piece of land should be excused for use by automatically invoking “biodiversity” or “climate resilience” either.  For thousands of years land has been “recycled” either through natural and geological means, or human use.

Policies have consequences and are about making choices and understanding the tradeoffs.  California has decided that eventually most of its land will be unavailable for any use other than for limited recreational purposes and that, unless extremely wealthy, residents will live in high density buildings.

What the Mining Industry Can Teach Data Centers

Reading about public opposition to new data centers caused me to ask, “Where have I heard this before?”  Concerns about air, noise, water, land use, etc. have been expressed about mining projects for decades. Most mining companies know that these are critical and important issues and make maximum efforts to mitigate and minimize these risks as much as technically feasible.

While these tech companies and developers will obviously need to curtail environmental effects to the maximum extent possible, it will take much more than that to gain trust with the communities where they wish to locate.

From my perspective they are going to have to work a lot harder than they expect.  It won’t be with shiny, boilerplate “PR” materials and suffocating messaging.  It won’t be with a lack of transparency or understanding that trust and true community commitment are built over time.

Data centers are entering a social and cultural environment that distrusts AI and what may happen to jobs; that question the integrity of elected officials, and where communities haven’t seen much involvement or benefits from megacorporations.

For example, I live in Silicon Valley, and whether the perception is correct or not, many residents don’t see that prominent tech companies are very involved or interested in being active community participants or by supporting local non-profit organizations.  Nor have I personally seen that any of the companies are interested in my industry experience or knowledge.

Data centers are going to be incredibly and increasingly needed, but those siting them may first have to undergo a much larger and longer learning curve than anticipated, or that is asserted by an AI summary.

Celebrating National Public Works Week

This week (May 17th – 23rd) is National Public Works Week.  A few days ago I spoke at a city commission meeting to acknowledge and honor the important contributions made by these hard working people that the public often seems to take for granted. 

Considering the immense amount of local developments and utility and road upgrades undertaken daily, this was a small effort on my part.  Afterwards, however, a city employee commented that it was so nice to hear something positive (likely a reference to the ratio of complaints to compliments!)

At the same time, I reminded the Commission about the aggregates, concrete, and asphalt provided by companies that enabled the work to happen.  Environmentally, in addition to low carbon concrete being produced, vast amounts of construction and demolition materials were being recycled keeping them out of landfills and being reused in many projects. This was followed by tonnage statistics for two counties.

It’s important to thank the city and the workers who use our products, but it was also consequential to remind the Commissioners that how our infrastructure is built and maintained doesn’t happen in a vacuum.  It takes materials from the earth and processing technologies with minimal environmental impact to have successful sustainable communities.  We can do both - produce AND protect.

Thoughts on Land Demands

An important lesson from the pandemic was that depending on other countries for critical commodities affecting our supply chain is a serious risk.

As I write this, major shipping companies have suspended operations through the Strait of Hormuz – a strategic passage for global trade.  Key minerals and metals affected include aluminum, bauxite, zinc, lead, and lithium.  This has the potential to affect material shortages, delays in availability, and higher costs due to limited supplies and increased freight and insurance rates.

While we will invariably want and need to import products and commodities, as a sovereign, secure, and powerful nation, we are always better off having our own domestic resources and materials.

Obtaining these and other critical materials are accessed through mining and then reclaiming and returning the land for countless chosen uses by the community.

Yet when the word “protection” is associated with land too often it is solely used, and narrowly defined, to mean “restriction” – that the “highest, greatest value” is only if the land remains “untouched.”

Throughout planetary and human history land has never remained “untouched.”

For millions of years land has meant both “protection” and “defense” – whether for mining, agriculture, homes, infrastructure, transportation, or political sovereignty.

Land is much more than the narrow meaning of protection through restriction.  Land ensures the sustainable use of natural resources, maintaining ecosystems, restoring habitats, and engaging communities for all our benefit.

If anything, the recent past and today have reminded us how important using land for our protection and defense is to our nation, our economy, and our future.

Is Mining Optional?

Recently, few industries have received greater acknowledgement for their importance than rare earth minerals and other mined materials.  Whether President Trump stresses their significance for national and economic security, or Canadian Prime Minister Carney emphasizes a “principled and pragmatic approach” for strengthening domestic capacity, these are valuable commodities that our nations are fortunate having.  We also have the ability to mine these materials using the highest environmental and sustainability standards and latest advanced technologies.

As important as these minerals are for our electronics, defense, renewable energy, medicine, space exploration and so much else, aggregates, concrete, recycled construction materials, and related products provide the basis of all our buildings, homes, roads, and infrastructure as well as in hundreds of others uses that protect our environment, assist agriculture, provide recreation, and enhance safety.  Perhaps they lack the “glamour” of metals, but they are even more necessary for daily living and our quality of life.

For far too long there have been attitudes that perpetuate false perceptions that the materials we depend on every day, and that so many hard working individuals provide us, are somehow unnecessary.

The answer to the title of this blog is that mining is NOT optional.  For thousands of years the earth has been mined so that we could continue to improve living conditions, transportation, health, safety, and the environment.  For that I am grateful.

Mining the Future

Over the past year, the topic of rare earths has been constantly in the news for their geopolitical and domestic importance to the future of technology, the economy, and defense.  They influence war strategy in Europe and trade policy in Asia.  The US and the world need these materials for cell phones, electric cars, computers, energy, space exploration, and countless other uses.

For those of us in the mining industry none of this is new.  Yet mention “mining” and public reaction is not one that generally associates the products or the people with innovation, high tech, or advanced education.  Quite the opposite.

The reaction is similar for aggregates and concrete.  Ask anyone how these products are used and the answers might mention construction of buildings, roads, bridges, foundations, homes and every instance of infrastructure imaginable.  Such uses are innumerable and indispensable to our civilization but don’t usually register in the realm of renowned technology.

For example, there are advancements in concrete technology that are revolutionizing the industry and are either in use already or underway.  One of the latest developments is that concrete may soon be used as an energy storage system.  By combining cement with other ingredients, including electrolytes, concrete can make walls, sidewalks and other structures store and release electrical energy so that concrete doubles as a giant “battery”.

Between energy storage, carbon sequestration, and self healing, sustainability now means that concrete is multifunctional.  Imagine roads that can charge electric vehicles or eliminate salting, and homes and buildings that power themselves off the grid.

This is only one example of many that makes mining a leader in next world technologies.

COMMUNITY COALITIONS

Throughout many years of community and political advocacy I have found that sometimes coalitions can occur even with entities that aren’t normally supporters of each other’s causes.

Setting aside a particular situation, it won’t happen just because there is a sudden need.  It will be built on long-term trust, relationships, and recognizing the benefits to both parties.

It means being truly involved in the community.  Supporting the efforts of organizations that may have nothing to do directly with business but that you find are positive and worthwhile.  You show up.  Volunteer on a committee or fundraiser.  Be a donor, support an event, or speak at City Council.

For example, I know building-related companies involved with non-profits that assist city workers in finding affordable housing.  That’s a win-win all around.

Yet even if the cause or initiative is less related it’s of value.  Because not only are you supporting your community but there will be individuals, whether directly or tangentially involved, that will become part of your wider network.

Coalitions may occur with organizations that share common interests but the strongest and most influential are built through broad and diverse alliances.

Is Subsidence the Next Big Issue?

Anyone who has worked in mining or agriculture for any length of time is familiar with subsidence and understands that careful natural resource management can minimize its effects. Subsidence is a downward vertical movement that happens due to the removal or displacement of subsurface earth materials. It can be caused by either natural processes or human activities. Generally, the topic has been limited to specific sites or areas, such as California’s San Joaquin Valley, but has not been a widely discussed public subject.

However, that may be changing. A recent study in Nature posits that subsidence is threatening inland urban areas and that there is a high likelihood of infrastructure damage. In 28 of the most populous US cities, it’s estimated that 20% of the urban area is sinking and that more than 29,000 buildings are located in high damage risk areas.

More importantly, I believe there is an increasing narrative that subsidence accelerates the impacts of climate change and that will affect local communities whether they are coastal or inland.

While low-lying and waterfront neighborhoods may be the most vocal, it is my view that subsidence (in tandem with climate change) is going to move up the ladder of issues that will be raised whenever a regulation, inspection, or permit is under consideration. It bears watching.

The Truth About Sustainability

Recently I had the pleasure of helping several Stanford students with a sustainability project.  These bright graduates and many professional practitioners are conversant with the principles of sustainability.

However, it reminded me that the public might not perceive sustainability in its entirety.  Instead, it is viewed as a shorthand term for environmentalism.   Occasionally sustainability might include dialogue about social justice or community development, but overwhelmingly it is seen and used as an environmental term.

While that may have been the environmental movement’s original intent, after the UN Brundtland Commission’s definition in1987, sustainability united development and the environment.  This resulted in the “three pillars” of sustainable development (often called the “triple bottom line” or “three-legged stool”) including economic, social, and environmental factors.  Each of these is of equal weight but one of these – the economic - tends to be ignored in most communications.

It shouldn’t be because to be sustainable an economy has to grow, and in order for companies to maximize ongoing sustainability solutions – environmentally, technically, and socially - businesses must be profitable.

In any discussion about sustainability economic issues cannot be disregarded or forgotten.  The economic success of a business (or a government) is absolutely instrumental to achieving authentic and long-term sustainability.

Creating a Public Good

If you’ve produced aggregates or worked in construction for any length of time you’re familiar with public-private partnerships (PPPs).  Large infrastructure, capital-intensive building, transit, wastewater, environmental and housing projects are some examples of public-private collaboration.

Although there are both advantages and disadvantages to PPPs, public and private entities have the ability to solve social and technical complexities, and to create synergies and competencies that result in creating a public good. 

California government entities also collaborate with tech companies in areas such as implementing AI training in schools; improving education, transit, and housing, as well as in partnerships between universities and pharmaceutical companies.

None of the infrastructure, building, environmental or transit projects occur without aggregate products.  And while there is much national commentary about critical minerals and rare earths, it’s not difficult for me to make the case that on a day-to-day basis  the need for aggregates, sand, concrete and asphalt is even more essential for every community resident who takes his or her daily quality of life for granted.  Many of these commodities are also recycled contributing to sustainability and are as essential as medical supplies for wellness and energy for electricity.

Does every person elected to public office, regardless of party or title, have a basic understanding that public infrastructure, housing, transit, and environmental protection all require these building materials?  That they are essential and a necessity for creating a public good?

I look forward to hearing an elected leader remind constituents of this when I attend my next public meeting.

Have You Served Your Community Today?

In my neighborhood sidewalks are in dire need of repair. Property owners are responsible for fixing sidewalks and oftentimes that is unaffordable for lower income and older residents. Adding to the difficulty is if a tree, or “heritage tree,” is the root of the problem (pun intended), special inspections, permission, and permits are also required.

I attend many meetings and it seems to me that our industry has knowledge, skills, and access valuable to our neighbors. So I ask, “have you served your community today?” Do you attend neighborhood meetings, serve on a city committee or commission, make suggestions at a public works’ hearing? Do you meet with local friends from related businesses that might help residents with issues that frustrate them when dealing with the city? Using the sidewalks as an example, could there be a cost savings approach to the sidewalk dilemma that the city doesn’t know about that would offer an effective solution?

Can you share your expertise and knowledge with your neighbors? In these cases it may also help your company.

Be visible, committed, and proud of what you do and how you can help. Get to know your neighbors and residents and that you’re there to support a healthy, safe, and comfortable quality of life. You may be surprised at the good that will be achieved.

Proposition 4 has No Plan

Have you ever experienced Déjà vu when reading California Propositions?

“Wait a minute.  Didn’t I vote for the environment, parks, and infrastructure in a previous bond measure for billions of dollars?”

Well, yes, since every California ballot seems to ask for billions in bonds.  For example, in 2015 California voters approved a $7.5 billion bond to build dams and water facilities and as of 2023 no projects had been built.

Proposition 4 requests $10 billion for a buffet of unspecified projects such as water management facilities, forest and coast management, land conservation, industrial wind turbines, parks, climate change, environmental, and farmland projects.

This is not a deep dive into how much California owes or what exact benefits California taxpayers have realized save to say that the state already has long-term obligations of $280.9 billion.  California’s annual payment for environment-related bonds alone is about $1.4 billion.  And everyone knows that the state had a budget shortfall this year.

I’d like more specifics on the “land conversation” part of this proposition.  It was recently announced that 25.2% of California land has now been conserved as well as 16.2% of its coastal waters.  Since 2022, 2,350 square miles have been added to conservation areas and this year alone, 861,000 acres were newly protected.  The goal is to protect 30% of the state's lands and coastal waters by 2030.

This is part of the 30x30 initiative in which the state plans to acquire six million acres, including 500,000 coastal acres, from private owners for conservation.  To do this they need the kind of funding in ballot measures.

About 46%, or 48 million acres, of California’s land area is owned by the federal government.  Of this,15 million acres are owned by BLM, which holds the lands for conservation.  If more land is owned by government then there is less land for private development.

In the Official Voter Information Guide Prop 4 states that $1.2 billion will be used for land conservation and habitat restoration to . . . “purchase land to set aside so that it is not developed.”

If you’ve read this far, you know what I’m getting to.  There will be less land for housing development (which the state adamantly insists it wants) and decreases the opportunities for supplying new or expanded local aggregate resources.  This will result in higher home prices for residents and is one more method to control private land use.

An AI Assessment

Although AI is a nascent technology already its uses are astonishing.  It’s transforming industries, increasing worker productivity, playing a growing role in scientific progress, and even beginning to determine company strategy.

But AI is still in its early stages and because of how it functions it can be wrong in multiple ways.  Some of these include giving the wrong or misleading answer, omitting information by mistake, mixing truth and fiction, making up false information, and inaccurately producing its sources.

Industries such as mining are technically oriented and generally favor adopting cutting edge technologies that benefit these businesses.  I’m sure that companies are already investigating, accessing, or adopting the latest useful versions of AI.

What these industries haven’t been as successful at is influencing public perceptions, or changing common opinion often expressed as fact in social and legacy media.   

Given the copious data and narratives that exist online related to such topics as environment and global climate change, and depending on how queries are presented and answered, AI may not be your friend.  AI’s answers to questions may not be accurate.  At a minimum that may pose a risk, and at maximum, a danger.

A former President was known for saying “trust but verify.”  The use of AI in its early stages is such a circumstance.

Digital communications are obligatory, but offloading a communications strategy to only a website, whether yours or another, is glaringly insufficient.  While you will want to reexamine and possibly reorient your digital and non-digital communications plans, it is never more important than now to be there in person before your community – to present your company transparently and to build a relationship of trust.

Saying the Hard Thing

What’s commonly called “Crisis Communications” is really about leadership as are most corporate issues.  What seemed to surprise the media more than the actual accident was how Norfolk Southern Railway managed to bungle the initial communications as badly as they did.  In this age of instantaneous Internet, when sometimes social media is the first to alert a company to its crisis, why wasn’t Norfolk Southern better prepared with their response?

Those of us who have worked in large corporations have a pretty good idea of what happened internally, but that doesn’t excuse the loss of any confidence and trust that those affected might have had towards this railroad.  Now, no matter what actions are taken, the financial, reputational, and political costs are going to be higher than they would have been had the company’s leadership been immediately on site, compassionate, and forthcoming about initial steps.

Norfolk Southern is a reminder to get that dusty “Crisis Communications Plan” off the shelf or digital file and update for emergencies.  That means anticipating and analyzing potential problems, developing scenarios, practicing responses, and reviewing team members’ responsibilities.  Assess your physical operation for potential vulnerabilities and make any changes necessary.  These are just a few of the steps to take now to protect your organization.

Finally, this is a reminder what “License to Operate” actually means.  It’s not about permits per se, but rather having the public’s permission to operate.  That should always be kept top of mind.

Welcome to 2023: This Blog Was Not Written by an AI

Everyone is talking about how impressive AI is and how it's not only "writing" so much of what we're already reading, but affecting every industry, and soon every job.  Just recently ChatGPT - launched by OpenAI in November - passed all three parts of the comprehensive US Medical Licensing Exam.

Forefront to the management of AI is the recognition that it's only as good as the data fed into it.  This is quickly becoming a major concern as it propagates more and more "misinformation" regarding facts and data that exceed the political arena. 

So, it shouldn't be surprising that recently hard rock miners were caught between humor and bafflement about how dumb AI's information was about mining.  Not only did it get facts about copper producing countries and production levels wrong, the worst of it was that the images shown of miners were likely to have been taken from the era of the Great Depression!

Although the AI's data was wrong, it may have been correct about the perception of mining in the public's mind.  Even though most mining companies have contemporary information on their websites concerning technologies, environment, climate, and sustainability, this tells us that we have a long way to go and a massive image problem.  The importance of this should not be underestimated or "played down" because it affects attracting a new workforce, critical mineral and mining strategies, and national/international policies.

Mining products are valuable and essential to the wellbeing of everyone, and the biases of hidden programming sources should not only not be accepted as fact, but must be robustly replaced - even if it takes a Human to do that.

Sharon Prager

eConcepts Communications

www.econceptscommunications.com

A LABOR DAY TRIBUTE TO OUR INDUSTRY

Sometimes I receive a puzzled look when people find out my career has concentrated on the aggregates and mining industries through all the years and upheaval of technology and social change.  Partly this is because of my background, and partly because old stereotypes and assumptions about our industries tend to linger on in the public’s mind.

I always find it amusing and interesting because dig down into studies about consumer behavior and perceptions about business, and you will find that one of the most highly appreciated values is authenticity.  I’ve always admired that about our industry.  (And just think about what everyone’s daily lives would be without what we provide).

Contrast that to some of the more flamboyant businesses of today:  as a Barron’s article puts it, social media concerns are “fundamentally advertising businesses”; hundreds of other corporations are regularly accused by the FTC of deceptive trade practices, and in juxtaposition to Corporate Social Responsibility (CSR), Corporate Social Irresponsibility (CSI) arose because of companies that regularly “greenwash” or that fail to act responsibly towards stakeholders, society, and the environment.

Certainly, no person or organization is perfect, but there is much to respect and value when an industry’s compass is based on honesty, accountability, sincerity and a commitment to continuous improvement – in other words, authenticity.

 Happy Labor Day to all!

Fossil Fuels and the Importance of Words

Through the recent decades of environmental history, an extensive and expanding vocabulary has developed with terms such as global cooling, global warming, greenhouse gases, greenwashing, climate deniers, and global climate change - to name but a few.

It should be stated at the outset that this blog is not a climate change discussion but rather how words are used to propel a position. Repeated often enough phrases either become “facts” or accepted as a placeholder for a point-of-view.

With today’s major environmental topic being the transition to renewable energy, the phrase “fossil fuels” is repeatedly used to denote the oil, gas, and coal industries. Those of you who are scientists know that technically these resources are not “fossilized” as that is a different process.

While the term was likely coined in the late 18th century, the incessant use in our current conversation is recent, and directly linked to the rapid thrust for renewables.

What picture does “fossil fuels” present? Something definitely ancient, frozen in time, non-adaptable, out-of-date, and so forth.

What picture does “renewable” present? Although it has come to be associated almost entirely with energy, it also means “bountiful,” “inexhaustible,” and “sustainable.”

And once again, although more subtly, in practicality the word choices are substitutes for “good vs. evil.”

Those of us who work with words understand how terms affect perceptions, and how different word pictures are most effective with specific audiences and desired goals.

It’s worthwhile to link mission to societal benefits, and awareness of how language affects stakeholder perceptions is critical.

Proud of What We Do and How We Do It

The abhorrent situation in Ukraine is a reminder to speak up and to speak out. Sometimes I think that all the resource industries feel intimidated - hesitant to speak out firmly due to the fear of repercussions: by the media, by politicians, by those with the power to permit. Too many times energy, mining, and others are faced by those who believe - often sincerely - that they possess the “moral high ground”. Too often they are also funded and encouraged by background interests with competing financial and political goals.

For several decades the West has had vociferous groups that proclaim most natural resources and the industries that provide them are not only obsolete, but dangerous, unnecessary, and mostly irrelevant to the new humans that are “connected globalists”. This is a false narrative. One of the most insightful methods for studying geopolitics and the shifting balances and rising tensions between nations can be attained by understanding energy and mining. Monumental strategic, economic and military decisions made by countries such as China and Russia often hinge on the importance of access to resources.

While many have heard about rare earths needed to run their electric cars, cell phones and laptops, few know that it will take commodities such as copper and nickel to manufacture the next generation technology products. Nor do they seem to know they can cross off airline or ship travel or even dental implants without access to titanium. Steel needs iron ore, agriculture potash, and roofing requires zinc. Mining is ahead of other industries in using autonomous vehicles and AI technologies, and research into carbon capture has advanced to the point where enzymes are converting carbon dioxide into fuel.

Aggregates and ready-mix supply our entire built environment (in addition to innumerable other products), protect our natural environment and are absolutely critical to our safety, security, and economy.

The tragic events in the Ukraine should remind us that countries will continue to determine their futures substantially by access to natural resources - even if that means taking them by force. Let this be a learning opportunity to those who may be innocently misguided, but put the security, safety, and economies of their communities and countries at risk.