Tag Archives: patience

Steel — and Snow — In The Air

michwis

“We have been blessed with good weather” in the Upper Peninsula, Lundin Mining CEO Paul Conibear told a small group of analysts on the 3rd Quarter earnings call last week; “I think Indian Summer has arrived.”

We’re well, well advanced on concrete. Lots of steel in the air. The warehouse facilities we have are chockablock full of equipment that’s been delivered, just waiting for the concrete to cure to start placing.

Conibear says he was in the UP with the Lundin Board of Directors and an entourage of analysts and investment bankers at around the same time I was, but they probably didn’t venture far from Marquette. There, it still felt like October. Mornings were cold and damp. Days were mostly sunny.

In the Keweenaw, hail and snow and rain would fall, and then the sun would burst through the clouds and the sky would clear — all in the space of an hour or two. Before I reached Bessemer, big flakes of snow were falling steadily, and it had started to blow. I asked the woman wearing a Packers jacket behind the counter at the gas station if she thought it would stick. “Already is,” she said.

Lundin needs to keep moving ahead. Though it boasts of having “no high risk, major capital projects,” it’s clear that when it comes to Eagle Mine, high-powered analysts like Pierre Vaillancourt of Macquarie Securities are looking for “any opportunities to decrease the capital intensity a little bit.” Conibear had to admit there wasn’t much room to maneuver:

We’ve inherited a project [from Rio Tinto] that was 50% constructed and designed and 99% complete and permitted, and the clear instructions to the team is you don’t touch anything on the project that has any risk of requiring permit complexity. So yes, the bus [sic, not the train] has already left the station on being able to change any physical aspect in any significant way. You know if we were given a blank sheet of paper would it be designed differently or would it have a different flow sheet or something? Probably, but that’s years ago.

I can’t help but wonder how deep these misgivings about the design of the Eagle project run, especially given the flaws mine engineer Jack Parker and others have pointed to, and if Conibear and his engineering crew are pushing ahead with Rio Tinto’s design and flow sheet despite serious flaws. It’s hard to tell just from these remarks.

In any case, they’re “going as fast as possible” at Eagle. By pushing the schedule, Lundin Mining hopes “to get some capital cost improvement”: “the sooner we bring it in for sure the less overhead there is.”

Delays – and, I imagine, any protracted controversy over the Eagle haul route — will be costly. On site, big ore bins need to be installed before winter. The mechanical electrical piping contractor is already at work. Lundin has “modified the contracting strategy” around the Eagle project to take advantage of “a very competitive contracting marketplace” in the UP, and now “there’s quite a buzz going on” at both the mine and the mill sites. Progress underground is ahead of work on the mill. Conibear seems confident Lundin can commission the mine before the end of Q2 2014, and have the mill running and first ore shipped by the end of next year.

And yet, despite even the best-laid plans, winter is on its way. I saw the first signs of its approach around Lake Gogebic. The next day, in Minnesota, when I cut west on Route 1 from the Palisade Head, the big pines on either side of the road were dusted with snow. It all looked so gentle and dreamlike and the places I drove through had dreamy, faraway names: Finland. The Baptism River. This could not have been the harbinger of the “severe winter” Conibear talked about on his earnings call. It presented itself with quiet grace, like a spell to lull the world into long, deep sleep.

Nature can be the miner’s undoing: “all it takes is one mother nature event to throw you out,” Conibear explained. Whatever cost efficiencies Lundin achieves by speeding up the schedule or managing contracts at Eagle may be foiled by storms or snows or other forces beyond its control. In Andalusia, where Lundin has the Aguablanca mine, “it rains like hell starting about this time of year.” In 2010, it rained so hard that a collapse – a slope failure — shut down Aguablanca until August of 2012.

A Model of Non-Coercive Leadership

This morning I was humbled to discover that almost everything I have been trying to learn about non-coercive power (or what I’ve been calling The Power of Asking) Sister Mary Lou Wirtz appears already to know. Or so it seems from an interview with Sister Wirtz in the National Catholic Reporter.

Wirtz belongs to the Franciscan order, but she also serves as President of the International Union of Superiors General and is a recognized leader of the Leadership Conference of Women Religious. The Leadership Conference, which represents about 600,000 nuns and sisters around the world, has been at loggerheads with the Vatican for some time now. After an assessment that found “serious doctrinal problems” with the LCWR (a finding Pope Francis recently reaffirmed), the Vatican in April of 2012 ordered the LCWR to place itself under the authority of three bishops. Now about 800 leaders from LCWR have gathered in Rome to meet and, presumably, respond.

Wirtz characterizes the meeting as an opportunity for reflection.

The concept of power of this world, as Jesus refers to it, of our governments and all that, is so often the power of oppression or putting down people or abusing power in many different ways. What we’re trying to reflect on is ‘What is the good aspect of power?’
…when we use power in the right sense, we can influence others and that influence itself is power. We’re sometimes afraid as religious to use that word, and yet I think in the very communal way in which we go about our ministries and service, that is a power.
We have the power to influence many, many people — through what we do and through our service, without us focusing on that as an end in itself, but as through that service.
…we need to continually look at how do we use our power. Because it is something that others will view, others will see, and it’s a model for them also.

She goes on to talk about the “prayerful dialogic manner” in which the sisters are approaching their upcoming session with the representative of the Vatican. She hopes that their manner will set the tone and example.

If LCWR can truly open a dialogic stance with CDF [the Vatican’s Congregation for the Doctrine of the Faith] for instance and bring clarity because of openness on both sides of the dialogue, I think that would be wonderful. I think that’s what they’re hoping for.
I hope…we can model what true dialogue is, that we can model that in such a way that it helps those on the other side — in other words, the Vatican side — to understand what we mean by dialogue.
That it is a mutual sharing by both sides of information, of whatever is on their minds — that there can be that kind of mutual openness to hear one another. That isn’t always felt at this time.
They’re [LCWR] being slow in the process, hoping that through taking the time and patience that the possibility for better dialogue can truly unfold.

Where have they found patience and, even, hope? According to Sister Wirtz, it comes from dialogue among themselves, “struggling with questions,” and “a deep inner struggle.” That struggle is generative, to borrow a word Sister Wirtz uses when talking about the biblical story of Esther. Esther is “a very rich image” for the women leaders gathered in Rome, says Wirtz, “even though we do not bear children.” In trying to model the practice, the behavior, the attitudes that they want to see and inspire in others, they are exercising and sharing their own power and creating new possibilites for others, a new order, a new model of power itself. “We bear life,” she says, “through what we pass on to others and how we serve others.”

Postscript: According to my WordPress stats, this post gets a lot of traffic, much more than I ever imagined it would when I wrote it. The search terms that bring people here almost sound like something out of a classroom assignment — “discuss non-coercive power” “what is non-coercive power?” and so on — and I suspect some of these visitors are trying to crib an answer to an incredibly complex and difficult question. There is much more to the subject than this one example suggests. Those who are looking for more than a quick hit might want to read the posts I’ve written on asking.