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Press ReleaseFrontier Strategy Group Managing Director Alex Turkeltaub Discusses Strategies for Managing Energy and Power Costs in the Mining Industry at the Mines and Money 2006 Conference in London, UK CAMBRIDGE, Mass. – (BUSINESS WIRE) – November 21, 2006 – Frontier Strategy Group Managing Director and natural resources expert Alex Turkeltaub discussed the topic of rising energy and power costs in the mining industry and appropriate response strategies at the Mines and Money 2006 conference. Speaking to an audience of industry executives, institutional investors, and the media, Turkeltaub observed, "There is no more important challenge for mining companies than controlling energy costs - these costs are eating away at industry profitability and too few companies have done anything about it." Turkeltaub urged the audience to think strategically about the energy and power challenge, "Particularly in an era of consolidation, highlighted by the recent announcement of the Freeport McMoRan -- Phelps Dodge deal, when companies are seeking to reduce costs through scale, it is imperative that management teams coherently review all aspects of energy and power costs in order to generate value for shareholders." Turkeltaub also addressed the impact of energy and power strategies on access to resources in developing countries. "Companies must understand that energy and power strategies are intimately tied to government relations strategies in countries where power supply is limited. Major mining companies operating in Africa in particular - Barrick, Newmont, AngloGold Ashanti, Rio Tinto, BHPBilliton, Anglo-American and others - must focus on this area as a unique source of collaboration with local governments. The major oil companies have been very successful with such strategies and mining companies could learn quite a bit from their oil brethren. The bottom line is that by solving developing countries' power challenges, mining companies could get preferential access to new assets." Turkeltaub closed the presentation by discussing the implications of developing successful energy strategies on the industry competitive landscape. "Energy and power cost management strategies are very much about developing a competitive advantage over one's competitors. Companies that manage these costs effectively will be seen as better partners by host governments and will generate higher profits that will allow them to be the last players standing at the end of the current consolidation wave." About Alex TurkeltaubAlex Turkeltaub is a Managing Director at Frontier Strategy Group and heads the Former Soviet Union and Middle East Mining & Energy practice at the Frontier Strategy Group. About Frontier Strategy GroupFrontier Strategy Group is a global consulting and advisory firm focused on the natural resources industries. Key practices include country-entry and growth strategies, M&A advisory, political risk assessments and permitting assessments. The firm is based in Cambridge, Massachusetts, and has offices in New York and Washington DC. Media Contact:
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