Industry moves to swat millennial bug

Many Canadians are looking forward with great anticipation to the millennium. It is seen as a symbol of hope and optimism, the beginning of a new chapter for our country and for humanity.

Far removed from those lofty aspirations, a simple computer glitch has the potential to wreak havoc with literally every aspect of our society, from household appliances to transportation systems. The mining industry is no exception.

I refer, of course, to the “Year 2000” problem. The magazine Economist has called this “the biggest industrial accident in modern history.” The global problem has been well documented. My purpose is to forcefully bring this home to the mining industry, for its ramifications are no less great here than in any other industry.

In the mining industry we are — as we commonly tell those who don’t know our industry well — extensive users and developers of high technology, particularly information technology. Our reliance on technology puts us at the forefront of risk in this area.

Some of the potential ramifications from Year-2000-related computer failure in our industry include:

n Health and safety — Ventilation systems, water supplies, monitors and alarms are all computer controlled. Leaving aside the economic costs, for safety reasons alone this is a compelling reason to avert computer failure.

n Environmental — Analyzers and monitoring systems for emissions and effluent are all computer controlled. Failure could cause serious environmental damage, resulting in public endangerment, as well as legal issues for senior management and directors.

n Economic cost — Most mine production is computer controlled, and malfunction could result in costly downtime, if not equipment damage. Also, the reliance on “just-in-time” deliveries places the entire production process in jeopardy.

In addition, there are other clear implications for all businesses. For example, securities regulators have placed notice that they will start looking for Year 2000 plans in this spring’s crop of annual reports.

We have an obligation to take this seriously and to begin now (for those who have not already begun) to take steps to try to both address the problem in our own systems and to insulate ourselves from problems external to our systems.

I have the privilege of being a member of a private sector advisory committee to the federal government on this issue. The committee is monitoring the progress of Canadian business on this issue and will be providing businesses with examples of best practices to follow. Information and advice is available at 1-800-270-8220, or on the World Wide Web at http://strategis.ic.gc.ca/sos2000.

In the meantime, I want to take this opportunity to reinforce that this is not just a problem for computer companies. It is a problem that could affect us in the mining sector profoundly. Working together, Canadian industry can solve this problem and keep our businesses and our economy sound, thus ensuring that mining works for Canada.

The author is the president and chief executive officer of Placer Dome. He is a member of the Year 2000 Task Force, set up by the federal government to advise on ways to deal with the Year 2000 computer problem. Mr. Willson has written this article at the request of Mining Works for Canada (formerly Keep Mining in Canada), a grassroots campaign designed to increase awareness of the importance of mining in this country.