Sir Arvi Parbo

PARBO, Sir Arvi, AC FTSE HonFIEAust CPEng (1926 - 2019)

A post war immigrant who rose through the ranks of the mining industry to become a widely respected business leader.

Early Life

Sir Arvi Parbo was born on a small family farm in rural Estonia in 1926. Aged only 18 and separated from his parents, he fled from his homeland along with thousands of his countrymen ahead of the Soviet occupation in 1944, ending up in a refugee camp in Germany. In 1946 he began studying mining engineering at the Clausthal Mining Academy and doing vacation work in local mines. Drawing on these early experiences, he realised that opportunities for mining engineers in Germany were limited. Not wanting to change his career, in 1948 he decided to emigrate to Australia, which had a mining industry and which was accepting wartime refugees.

Arriving in Australia in November 1949, he began working as a jackhammer operator in a quarry near Adelaide but quickly arranged employment in a factory nearer to the University of Adelaide where he could enrol in evening classes. In 1951 he began part time study toward a Bachelor of Engineering degree. Later awarded a Commonwealth Mature Age scholarship, he worked in Broken Hill mines during vacations, graduating in mining engineering in 1955. Now aged 30 and older than most graduates, he sought a position in a small but enterprising company, which could perhaps offer more opportunities through faster growth and greater flexibility in its treatment of graduates. And so shortly after graduating, he joined the Western Mining Corporation, a then small but vigorous gold mining company.

Western Mining Corporation

Parbo’s strengths surfaced quickly, and his career advanced rapidly. His first position was as an underground surveyor at Bullfinch, in the Yilgarn region of Western Australia. In 1958 he was appointed underground manager of a new mine in the Yilgarn region. In 1960 Parbo was appointed technical assistant to Western Mining’s Managing Director under the company’s policy of giving a year’s experience in general management at the head office to those who showed ‘particular promise’. He remained there for four years rather than the usual one year.

His arrival at WMC was well timed. The Australian mining industry expanded greatly through the 1960s and 1970s, with WMC a major part of it. In addition to its gold mining activities, WMC played a key role in establishing the viability of the bauxite deposits in Western Australia’s Darling Ranges. This led to the establishment of an integrated bauxite mining and processing operation with the Aluminum Company of America (ALCOA). Parbo worked with ALCOA on a feasibility study of the project, and went to the USA as part of the team to negotiate the formation of ALCOA of Australia, which has now become one of the world’s largest integrated bauxite mining, alumina refining and aluminium smelting operations.

He returned to Western Australia as Deputy General Superintendent in 1964. Two years later WMC discovered nickel at Kambalda, just south of Kalgoorlie in Western Australia. By drawing on the expertise of Parbo and others based locally, Western Mining established a fully operational nickel mine and primary processing plant within 18 months of discovering the deposit. The rapid development of the deposit allowed the company to capitalise on the strong demand for nickel in the late 1960s.

He was appointed General Manager in 1968 and became a Director in 1970. He was appointed Deputy Managing Director in 1971 and became Managing Director in the same year. In 1974, Parbo was appointed Chairman and Managing Director of Western Mining Corporation, subsequently renamed WMC Limited. Three years later he also became chairman of ALCOA of Australia. Under his leadership, WMC also discovered and commenced mining of the huge copper and uranium ore body at Olympic Dam in South Australia.

In 1986 he relinquished the position of Managing Director of WMC but remained Chairman of the company and Chairman of ALCOA of Australia, in this latter role continuing until 1996. He retired as non Executive Chairman of WMC in 1999.

Perhaps the best indicator of his contribution to WMC is the respect he gained from his peers. He was also accessible, believing openness and a lack of confrontation could resolve most situations.

Wider Business Recognition

Sir Arvi Parbo held numerous official positions in engineering, mining, and trade associations. However, he was also acknowledged by the broader business world. He was elected the inaugural president of the Business Council of Australia. He was a significant influence for major corporations including Alcoa, Alcan, Zurich, Hoescht, Chase AMP. He was the founding President of the Business Council of Australia in 1983, President of the Australasian Institute of Mining and Metallurgy and the Australian Academy of Technological Sciences and Engineering.

In 1987 he was appointed a Director of Australia’s largest company, the diversified mining and steel making group, BHP, and became Chairman from 1989 to 1992.

He was knighted for his services to industry in 1978 and made a Companion of the Order of Australia in 1993. He was awarded the Queen's Jubilee Medal, honours from Germany, Japan and Estonia, and was presented with Honorary Doctorates in Science, Engineering, Business and Law.

Sir Arvi Parbo died in Melbourne on 1 May 2019, aged 93.

---

References:

1. The West Australian, Giant of mining industry, Obituaries, Peter Milne, 17 May 2019
   
2. Engineers Australia South Australia Hall of Fame Inductees https://www.engineersaustralia.org.au/sites/default/files/resource-files/2017-01/2015_hall_of_fame_for_website.pdf (Accessed 2 May 2019)
3. Sir Arvi Parbo https://en.wikipedia.org/wiki/Arvi_Parbo (Accessed: 2 May 2019)
4. by William Dargie, ‘Sir Arvi Parbo, 1993’ oil on canvas (frame: 112.0 cm x 82.5 cm) https://www.portrait.gov.au/portraits/2003.86/sir-arvi-parbo Sir Arvi Parbo (Accessed: 2 May 2019)
5. John McIlraith, Parbo paved the way to mining success with openness, The Australian, Thursday 2 May 2019, p20.
6. Alcoa in Australia https://www.alcoa.com/australia/en/about/ (Accessed: 6 May 2019)

Note: Sir Arvi Parbo is not in the Australian Dictionary of Biography as at 6 May 2019

Prepared by Engineering Heritage Western Australia (EHWA) as a nomination for inclusion in the Centenary book 'Anything is possible' in March 2019.