The site survey showed that inventory put pressure on costs. For the stocktaking, the inventory was arranged for the following six months. “We had to take out each item from the huge inventory on the vast premises and rearrange them one by one,” said Shimofuji. He took great care to communicate closely with local staff during the inventory management. “They don’t respond to instructions from someone who’s just arrived from Japan. I tried to take the initiative as a co-worker,” Shimofuji recalled. He worked with them for hours under the heat of the sun at high altitude, and sometimes bought Bolivian-style meat buns with his money to share with the other workers.
“The Bolivian staff were also very proud of this mining project and shared the desire for it to succeed. I was really pleased with their enthusiasm,” said Takashi Nakabayashi who worked in the Purchasing Department in Bolivia until June 2009.
Ultimately, the local company was able to reduce costs steadily, achieving a 30% reduction from the previous year. Nakabayashi said, “This was thanks to the passion of all those involved in the project and the great team who shared that commitment.”
The project was beset with entirely new challenges. “We believed in what we were doing, so we could keep on trying without quitting,” recalled Michiko Kukihara, who acted as a coordinator between the site and the company in Japan. From the outset when just a small group was working on the project, Kukihara would do everything, including drawing up budgets, checking contracts and producing reports for internal use.
Kukihara said, “The discussions almost brought us to tears.” But these candid exchanges of opinions strengthened the unity of the team. Kukihara continued, “We always knew in our hearts we would never give up even if the work was physically demanding. With that spirit, we supported each other.”
Yazaki, manager of the project, explained why the team was able to overcome difficulties: “Great teamwork came through our repeated serious discussions. We were determined to go ahead with the project.” The bottom line is that when tackling something new, success depends on whether you are willing to take risks.
Other problems still lie ahead, such as reducing costs further and raising productivity, as well as reinforcing management systems and securing human resources on a continuous basis. The San Cristobal mine is thought to have other unconfirmed deposits and exploration for minerals is currently underway. One of the world’s greatest mineral deposits continues to fuel the commitment of project members. There will be so many new things that lie ahead.
Sumitomo Corporation believes that those who are engaged in developing mineral resources in a country must consider the local people and ensure the development enhances the country’s future. Sumitomo Corporation therefore spends more than 100 million yen annually on social contribution activities in Bolivia (approx. 2 billion yen at the start of the development).
One example is the improvement of infrastructure. Thus far, roads, water supplies, hospitals and schools have been constructed as part of the mining project. The clinic set up at the mine is open to all local residents and is greatly welcomed because they used to have to drive for hours over poor roads to visit a doctor. In the past few years, infant mortality rates have fallen substantially in this district, likely due to the improved access to medical care.
Another aspect of social contributions is to foster self-reliance and the establishment of the San Cristobal Technical Institute provides a good example. The institute provides education and training on technical skills needed at the mine, as well as on tourism, secretarial skills and business management to encourage local residents to become financially self-reliant. The ceremony to mark the opening of the institute was attended by Bolivian President Evo Morales himself, which has rarely happened when other foreign companies have conducted such ceremonies. The president expressed his wishes for the prosperity of the region.
