EOTYA 2024 Winner: Gerhard Veldsman

The importance of mining to the Australian economy cannot be underestimated. Iron ore royalties contribute 25 percent of Western Australia’s revenue and approximately 15 percent of the nation’s total exports by value, equivalent to 3.3 percent of nominal gross domestic profit.

Ever mindful of this, Gerhard Veldsman, CEO Operations at Hancock Prospecting, is a firm believer in Executive Chairman and Director Gina Rinehart’s mantra that when mining does well, Australia does well – and that the opposite is also true.

"A thriving mining and broader business sector is critical to our way of life and quality of living, however, we are increasingly killing the golden goose," Veldsman tells The CEO Magazine. "In Australia we are seeing the most challenging regulatory environment and this is placing investment for projects essential to our economic growth at risk.

"Mining provides a major source of funding for public infrastructure and services, including hospitals and police, millions of direct and indirect jobs, including some of the highest average wages in the country, and billions on locally procured goods and services."

"We have just over three thousand direct employees, contribute hundreds of millions to State and Federal governments in royalties and taxes each year, and invest many more millions through support and charity programs."

Since joining Roy Hill, majority owned by Hancock Prospecting, as COO in August 2019, Veldsman was elevated to CEO in July 2021. As of January 2023, Veldsman also became CEO of Atlas Iron, consolidating iron ore operations for Hancock Prospecting.

Roy Hill’s annual production has consistently set records, reaching 64 million metric tons in the 2024 financial year from a nameplate capacity of 55 million metric tons.

Furthermore, Veldsman has led a significant product strategy shift, enabling Hancock’s iron ore operations to better utilize its ore body to target different markets, generating an additional US$1.67 billion in net present value.

This pivot has supported Roy Hill in making a purposeful push to diversify, increasing volumes into Malaysia, Vietnam and India, while ensuring the needs of customers in the company’s core markets of China, Japan and Korea continue to be exceeded.

"Our operational performance has been exceptional, but our achievements are not solely about my role as CEO; they stem from the efforts of all our employees and the leadership of Mrs Rinehart, our Executive Chair and Director, who empowers us as an organization to achieve significant outcomes and returns," Veldsman says.

"Mrs Rinehart has guided Hancock Prospecting for more than 30 years and made it what it is today: Australia’s most successful private company with a diversified portfolio and significant growth agenda."

Respect and support

Ensuring Roy Hill is a place where everybody is set up to be safe, productive and bring their best self is a top priority for Veldsman.

"What makes me proud is that in Roy Hill and Atlas, we have two companies where we have created a culture that brings the best out of our people," he notes.

"It starts with a sense of belonging, creating a workplace where people want to be. A place where they know as a team they can deliver on the priorities; where they will be supported and they share in the value they create."

For example, Veldsman established an industry-leading ‘Respectful Behaviours Charter’, outlining expected behaviors and associated training to vendor partners and contractors.

In addition, delivering on the vision of Rinehart, Roy Hill focuses on creating a work environment that encourages participation from veterans, women and people living in regional locations.

Linked to this, Roy Hill has been able to attract high-caliber talent, including a 54 percent increase in women in leadership positions.

Veldsman is also keenly aware of the importance of creating a quality living environment for people working in a fly-in-fly-out environment. Working together, Veldsman and Rinehart have been instrumental in driving best-in-class offerings.

These include family friendly rosters, premium food – including Rinehart-owned 2GR Wagyu beef and award-winning Bannister Downs dairy products – enviable recreation facilities, including a mixed and women’s only gym and state-of-the-art entertainment systems in all rooms.

The company also has initiatives such as vacation day care so that parents can bring their children on-site in a safe and enjoyable environment during school holidays.

The combination of these initiatives and more have enabled Roy Hill to successfully navigate a historically tight labor market, with the company’s turnover at just 7.6 percent in the 2024 financial year – significantly lower than the industry average.

"For any business to thrive, it starts with its people," Veldsman explains. "They want to know the company cares about them, that they have a clear understanding of what’s important to the business achieving success, what the priorities are and how they can contribute."

"Giving people autonomy to execute their roles within established guidelines enables a safe working environment, fosters confidence in decision-making, and encourages an innovative mindset, experiencing the highs of achieving something together while being supported by their leaders."

Giving back

In addition to the ongoing significant employment and economic benefit to the nation, Roy Hill and Atlas have given their support to a range of community initiatives and organizations in Pilbara centers, including Port Hedland, Nullagine and Newman, while contributing directly to remote Aboriginal communities of Strelley, Warralong and others.

"Our charitable work is a major driver of cultural outcomes within Roy Hill and Atlas Iron," Veldsman says.

In the past 12 months alone, Roy Hill has developed a range of partnerships and supported many grassroots initiatives including:

• Further enhancing breast cancer patient care and research in the Pilbara through Solaris Cancer Care.
• Creating opportunities for veterans through funding across a range of organizations such as Working Spirit, RSL, SASR, Commando Welfare Trust and Soldier On.
• Funding a brand new 22-seater Toyota Coaster bus, along with running costs, to provide daily transport to school for vulnerable and at-risk students from their homes in Port Hedland and South Hedland, as part of the Mirnukaru Hedland Attendance Strategy.
• The Fresh Food in Schools program, a Roy Hill initiative that sees the delivery of fresh fruit and vegetables to seven remote community schools to support their nutritional needs.
• A school holiday program for Pilbara youth, delivered in partnership with Julyardi Aboriginal Corporation, focused on reconnecting kids to culture and country.
• Supporting Port Hedland school athletic and community swimming carnivals, including supply of marquees, staff, catering and accommodation for attendees from remote communities traveling long distances.
• Support for Fair Game, a community health and sports program in Port Hedland.

By looking after employees and the society they operate in, Veldsman is certain about the long-term benefits to the company and its contribution toward building Australia’s best mining company.

"A good leader puts people first," he affirms. "By prioritizing the needs and wellbeing of your team, you build a foundation of trust and respect. This approach allows you to tackle challenges with the collective strength and creativity of your entire workforce.

"The productivity and operational excellence you seek as a CEO then becomes a natural outcome of the dedication and effort of your people."