Few people understand both the technical and human elements of mining as deeply as Calum Semple. As Partner, Operating Executive, and Head of Technical at Resource Capital Funds (RCF), Semple brings over 35 years of global operating experience to bear on the firm’s investment decisions and portfolio company success.
A Chartered Engineer with degrees from the University of Edinburgh, he joined RCF in 2021 after successfully turning around TMAC Resources as EVP Operations and overseeing initial production at their Hope Bay Mine in Nunavut Territory, Canada.
We asked Calum to share his insights on building successful mining operations from the ground up. Drawing from his experience in startups, mergers, turnarounds, and consulting as a former Global Lead of the Mining Consulting practice at PwC, he offers a unique perspective: In mining, success relies as much on developing human capital as it does on technical expertise.
Calum, tell us about your background. How did you get started in mining?
At the outset I qualified as an engineer in Scotland. I spent the first third of my career in industrial and manufacturing, specifically automotive manufacturing—in design and operations, being fortunate to experience leadership roles in several different parts of the world. As it turned out, that gave me an excellent grounding in design and process engineering and operations management in companies at different stages of the maturity lifecycle. It’s one of those sectors where you are taught a very robust approach to solving problems, remaining laser-focused on execution and quality, while adhering closely to budgets and watching the pennies. And all the success ultimately stems from strong, capable, and engaged leadership and teams.
I got into mining after moving to Canada over 25 years ago. It’s obviously a big mining jurisdiction, and an opportunity arose at PwC where I helped to establish and build their Global Mining consulting and turnaround practice. This gave me the opportunity to see how different mines operate across the globe. Every mining project is different based on the commodity, stage, the region, the people…so having this breadth and depth of experience across projects was critical.
In my previous industries, Health, Safety, and Environment (HSE) was a very significant focus. That culture transferred very consistently to mining although with some nuances given scale and operating locations and conditions, and in my experience, a strong HSE culture is the foundation of a strong operating culture. Mining in very simple terms is logistics and processing so I was familiar with many elements of this already, but the geology and mining methods were new—I spent a lot of time in the early days (and still do) studying deposit types and mining methods, and working with geologists and mining engineers to interpret what’s in the ground and how it relates to safe and cost effective extraction methods and downstream recovery. Unlocking mining is usually the key to a successful ramp up in most of our projects.
After leaving PwC, I ended up running a couple of mining companies through turnarounds where, interestingly enough, RCF was one of the major shareholders. RCF has always been thought of as the “smart money” in the mining industry. After selling the last one of those, a gold mine in the Arctic, I had an opportunity to join RCF. It was a chance to broaden my perspective with a global organization that has experience across multiple commodities and regions—so I came on board about four years ago and never looked back.
Tell us about the role of the RCF Technical team?
When I joined RCF, we had a strong technical team and a strong commercial team, and we wanted to bring the operations side up to the same level. Over the past few years, we’ve expanded the focus of the technical team to also include operational management as a critical pillar of our work with portfolio companies.
When we invest in a company, we not only need to establish its potential value in terms of mineral resources and technical feasibility, but we also have to ensure that it has what it needs to operate smoothly as a business after construction and ramp-up. That means establishing business practices and operational procedures, making sure our portfolio companies have the right leaders and people, the right infrastructure, and that we’re dealing with stakeholders the way we should be. To do all that requires building capable teams. We bring our experience in leading, managing, running, and constructing operating entities to companies that may not necessarily have it. I think that’s what really sets us apart from our competition.
I view my role as a bridge between the technical and the commercial sides of the house and our portfolio companies. I work very closely with our heads of funds, and I’m on the investment committee as well. Our technical expertise is functionally very deep, whether it’s geology, mining, metallurgy, processing, engineering, project management or ESG. I see my role as being the one that pulls all those pieces together and makes sure we understand what levers we can pull to create value internally and externally, while managing risks and delivering compliant projects safely.
For example, over the last few years, we’ve worked hard to integrate ESG into what we do, both on the due diligence side with technical and commercial, and also when we execute into an investment. Jessica Jones, our Director of ESG, has done a fantastic job of adapting what she hears from the technical and commercial people to incorporate sound ESG practices, while also being able to push back and steer the team towards more thoughtful and consistent applications of ESG standards and approaches at all stages from feasibility though construction and production This capability allows us to help our portfolio companies derive shareholder value from ESG, not just view ESG as avoiding risks.
Our approach is to look for areas of risk as well as opportunities, but it’s not just about poking holes. It’s about approaching these risks creatively. We take a proactive approach by using our input and influence to seek out solutions that help de-risk or advance a project, sometimes where others may not see value.
Would it be fair to say the RCF Technical Team is a kind of “mini-consulting” organization?
Yes and no. Yes, in the sense that, relative to a lot of the companies we invest in which are generally standalone, single operations, we have broader experience in-house. And part of our job is to combine this experience with that of our management teams and enable our portfolio companies to be truly autonomous and high-performing.
No, in the sense that, most of the time, consultants are rarely in a position to be accountable over the long term, but as owners we are. Consultants can provide recommendations and ideas, but if they’re not alongside your organization the entire way, accountability can get lost from their original plans. As an active investor, we don’t just throw ideas over the fence to our portfolio companies; we try to make sure those ideas get implemented. We coach, motivate, and support the teams on site to ensure those ideas become a reality—or we figure out very quickly if an idea won’t work and we pivot. Consultants, for the most part, aren’t always set up to do that.
Of course, consultants can bring huge value when they’re used appropriately, and we do use them for additional bench strength, local expertise, or specialized knowledge if we have a gap.
What are the areas where RCF adds the most value to mining investment projects?
RCF brings proven experience in leading and managing operations in companies that are new to large-scale mining. We did this with Cuprous (an RCF VII portfolio company) in Botswana, where we were brought in as the technical partner despite holding a minority stake. We contributed significantly across mining and processing operations, helping build and launch the project during COVID, which led to a successful exit for all parties. Recently, Pucobre (an RCF VII portfolio company), a copper-gold mining project in Chile, received significant financing to complete construction of the mine. Obtaining that loan was a testament to the combined efforts of Pucobre leadership and our team.
We had an even larger impact at RG Gold (an RCF VII portfolio company) in Kazakhstan. A local financial partner brought us in specially for our technical expertise.
Most importantly, we established a trusted relationship with their CEO and CFO and acted as a sounding board with respect to all aspects of their business strategy. We were true partners available through frequently scheduled meetings and multiple site visits. Each of the functional areas of the RCF Technical Team were engaged with the firm as well.
Our geologists helped identify opportunities within the original, site-generated mineral reserves estimates. Our re-evaluation led to significant optimization of LOM (Life of Mine) planning. Our engineers and other consultants reviewed and audited existing mining systems and the Ore Grade Control processes to identify areas of operational improvement. All of this work, in addition to supporting expansion studies and identifying underground asset potential, led to a more cost efficient operation and a significant increase in value.
Our processing team worked to develop test programs, design process flowsheets, and assess trade-off studies to support the feasibility study and created process documentation during plant design. Metallurgical work requires complex modelling and supporting test work to achieve the right balance of cost, throughput and recovery. We worked to develop the right balance with RG Gold. Once plant design was completed, as chair of the Technical Committee and along with our local partner, we guided the construction, commissioning, and ramp-up of the mining operation.
There was also significant work done around ESG. We established an ESG Committee to provide oversight of material environmental and social risks. A key success from this effort was the development of a Health and Safety Improvement Plan. After rigorous assessment, planning, and implementation, RG Gold celebrated 1.6 million working hours without a Lost Time Incident and is well within global benchmarks.
So, I’d say we’re very strong at bringing our in-house technical expertise to de-risk projects and improve outcomes where it’s needed.
Another area where we bring value, as I alluded to earlier, is in creating strong teams. My major objective with every new project is to build a strong relationship with the executive suite. While there may be cases where I may have to step in and run the company temporarily, our primary operating model is to support leadership, not replace it. We’re here to support them and build a transparent and open relationship with them. We want them to feel that they’re part of the RCF team and for them to be successful. People are ultimately the most valuable building block in any project we own and operate.
What’s your assessment of the mining community’s mood, given the gap between current investment and future demand?
It’s very commodity-dependent. The gold and silver players are doing extremely well right now, while lithium companies are waiting for the next wave. There’s some nervousness around battery transition metals, but there’s such an undersupply of everything over the next five to ten years that we’ll need to move forward regardless of market enthusiasm.
Project finance has become challenging. Banks are extremely careful now. They’re still funding projects, but they have become more risk-averse. Good projects are still being built, but the definition of a “good” project has evolved. Grades are lower now, jurisdictions are more complex, and processing is often more complicated due to mineralogy. But technology is advancing to meet these challenges. Mining equipment has improved and methods have evolved, AI is emerging, and autonomous operations are enhancing safety and efficiencies. In addition to our private equity strategy, the RCF Innovation strategy aims to invest in some of these technologies with the goal of making mining companies safer, cleaner, and more efficient. So it’s a very exciting time.
But mining, like any industry, goes through cycles. The good thing about the mining sector is that commodities are not homogenous—so the market is always investable. While anything can get built when commodity prices are high, we’re in a phase where only quality projects move forward, but that’s not necessarily a bad thing. And, it’s an excellent opportunity for investors to find value given the tailwinds within the sector.
What do you enjoy most about your role?
I love that it’s so varied. No two days are the same. I work with lots of smart people from different disciplines inside and outside of RCF. However, to me, the biggest thing is that we get to create value. Creating value for our LPs is our primary driver, of course. But at the same time, we also strive to create value for local communities.
Seeing people become part of a successful team, gain new skills, secure jobs, and build futures for themselves and their families as we progress through the cycle to production… that’s pretty special.
And finally, the question we ask everyone: what’s your favorite metal or mineral?
The nerdy engineer in me really likes some of the battery metals because their processing can be so complex. I love exploring the new processing methods we’re having to develop now. From a technical perspective, it’s fascinating.
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