A better recipe for vertical integration - add salt or sweetener

STRICTLY Boardroom suggests some alternative approaches to the perilous task of ‘vertical integration’ confronting many project developers in niche commodities.

A better recipe for vertical integration - add salt or sweetener A better recipe for vertical integration - add salt or sweetener A better recipe for vertical integration - add salt or sweetener A better recipe for vertical integration - add salt or sweetener A better recipe for vertical integration - add salt or sweetener

At a high-level business strategy is remarkably simple – either be lower cost than your competitors, or sell your wares at a higher price.1,2

It does not take much reading of corporate statements in the minerals industry to confirm that ‘low cost’ is the preferred strategy and indeed often the only explicitly stated strategy.

Part of the fetish for ‘low cost’ in the minerals industry is the ‘not-quite-correct’ assumption that miners produce ‘commodities’ – generic substitutable products with a fixed price across the world, thus the low-cost and cost-curve fixation.

Of course, our industry does not quite produce commodities, even a simple ‘commodity’ like ‘copper’ has many products – c...

topics

loader