Don Larkin Chief Executive Officer Australasian Institute of Mining & Metallurgy

1. Australia’s Uranium Conference 2007 15-16 May 2007, Darwin NT Don Larkin Chief Executive Officer Australasian Institute of Mining & Metallurgy

2. Australia’s Uranium Conference 2007 OFFICIAL WELCOME Continuing professional development – A vital component of risk management for both employer and employee.

3. Australia’s Uranium Conference 2007 What is Risk Management? What is a Profession? The AusIMM as a Professional Body Chartered Professional Recognition My Contention and Conclusion.

4. Risk Management – AS/NZS 4360:2004 • Risk management involves managing to achieve an appropriate balance between realising opportunities for gains whilst minimising losses • Risk management involves establishing an appropriate infrastructure and culture (identifying, analysing, evaluating, tracking, monitoring and communicating risks) • Organisations that manage risk effectively and efficiently are more likely to achieve their objectives and do so at lower overall costs. • Standard to provide guidance.

5. Risk Management Main Elements - Process • Communicate and consult • Establish the context • Identify risks • Analyse risks • Evaluate risks • Treat risks • Monitor and review

6. Risk Management – other vital components • Training and education – awareness - professionalism • Formal recognition of qualifications, experience and training • Workplace practices and culture • Manage liability exposure (mining law, environmental, pollution, heritage, trade practices, contract, corporations, IR, anti-discrimination and sexual harrassment, taxation and common law, etc.)

7. What is a Profession? Professions Australia defines a profession as a disciplined group of individuals who adhere to ethical standards and uphold themselves to, and are accepted by the public as possessing special knowledge and skills in a widely recognised body of learning derived from research, education and training at a high level, and who are prepared to exercise this knowledge and skills in the interests of others.

8. This Definition Implies • A Code of Ethics governs the activities of each profession • These codes are enforced by the profession and are acknowledged and accepted by the community • Special knowledge and skills • Derived from research, education and training at a high level • Applied to the service of the community.

9. The Code of Ethics should stress • The independence of the practitioners • That their responsibility for the welfare, health and safety of the community shall at all times come before their responsibility to the profession, to sectional or private interests or other members of the profession • Members shall perform work only in their areas of competence • The professional body shall encourage its members to continue their professional development throughout their careers • The professional body shall encourage its members to actively assist and encourage professionals under their direction to advance their knowledge and skills.

10. The AusIMM as a Professional Body • Professionals in the Minerals Sector • Tertiary qualified Geologists, Metallurgists, Mining Engineers and others • Ethics, Codes of Conduct, JORC, Valmin • Fellows and Chartered Professional Recognition • Member Services, Branches, Careers, Employer Support • Advocacy and Representation • Continuing Professional Development • Employer Base Diverse • Dealing with an Informed Client

11. Challenges in Global Industry • Globalisation and centralisation of ownership • Investment options increasing in a cyclical industry • Increasing emphasis on social and environmental impacts • High technology and productivity • Exploration and R&D vital – Sustainability of Industry • Attractiveness and careers – Skills shortages/Demographic destiny • Increasing emphasis on risk management and governance

12. Chartered Professional Recognition • Four core disciplines: Geology, Metallurgy, Mining Engineering, Environment plus Management • No legal accountabilities that state a professional must be qualified in a specific discipline in order to practice (except Queensland for Engineers and Mine Managers (coal)). • Peer assessment or competency based assessment. • CP Accreditation, CP Maintenance, National Accreditation and International Accreditation. • On the job learning versus structural – “listening or reading” towards “listen/discuss/research and doing”.

13. My Contention • Whether you are an individual professional or a legal entity it is essential that you manage your risks. • An individual or company can best manage their risks by being diligent • Membership of a professional institute with Codes of Practice, ethical procedures and a commitment to CPD can assist greatly in management of risks. • For a professional due diligence includes awareness and training through continuing professional education and being recognised by your peers that you have undertaken the necessary CPD and have the relevant experience • A vital component of risk management is thus continuing professional education and development, and • Ethics in Education and CPD are a vital component of professionalism.

14. What The AusIMM has done • Reviewed and modernised its Code and By-Laws • Applied for and received ACCC exemption under the Trade Practices Act • Streamlined process and introduced a Complaints Committee separate from Ethics Committee • Composition of Ethics Committee more distant from Board of Governance • Persuade ASX/ASIC to recognise formally Codes as Industry best practice and to police • Global industry – internationalisation of codes • Document processes and procedures, legal advices and precedents • Encouraged Professions Australia to establish, website, principles, links, papers, workshops and study – Ethics in Education.

15. Conclusion • Risk Management → Due Diligence → Awareness → CPD • Essential ingredient of professionalism is CPD supported by best practice codes of conduct, ethical procedures and sanctions, however there are many challenges. • How far do (or can) professional bodies go in raising the conduct bar beyond what is required by law? • Welcome