A SKILLS REVOLUTION
Growth has returned to mining, with demand for workers once again rising as new or mothballed operations are given the green light, and existing mines expand. But how will the industry cope as labour demand exceeds supply?
TEN years ago, getting a job in the resources sector looked a little different.
Dump truck tickets and other driver-operator skills were in high demand; the work was tough, but for those lucky enough to land a gig, a lucrative wage would await them.
Then came the downturn – everybody felt the sting – with many skilled workers leaving the industry for good during a jobs drain.
But commodity prices have now recovered, and a construction boom has returned, meaning companies were now looking for personnel to build and operate the next wave of projects.
In the WA Pilbara, Pilbara Minerals and Altura Mining’s identically named Pilgangoora lithium mines have just entered production, while iron ore giants BHP, FMG and Rio Tinto are gearing up to build three new projects worth a combined $9 billion – with 4000 jobs ready to be filled through the construction phase.
But where will these workers come from? That is the question many are asking, as competition runs high to secure the services of a depleted pool of skilled workers and top tier contractors.
The types of roles required to develop and operate the ‘ digital’ mines of tomorrow have also changed with a new suite of skills needed.
Three storey high dump trucks – once operated by the eager green skin – were now driving themselves around many of Australia’s iron ore mines, while the operators sit in air-conditioned offices thousands of kilometres away.
Mining staff were also expected to have the skills to operate new technologies such as drones, wearables, and other automated devices employed in both open pit and underground operations.
Federal Jobs and Innovation minister Michaelia Cash said in the two years to May 2018, employment in the mining industry increased nationally by 16,700 or 7.7 per cent.
“Recruiters and miners are often looking for staff with experience in specialised equipment and systems,” Ms Cash said.
According to Hays, jobs in demand included geologists, maintenance planners, drill and blast operators, heavy diesel fitters, dragline and excavator operators, computer numeric controlled machinists, boilermakers, and underground jumbo operators.
Australian Mines and Metals Association (AMMA) head of policy and public affairs Tom Reid said the rise in vacancies was “showing no signs of subsiding”.
“The news is positive for job prospects in the sector,” Mr Reid said.
“QLD and WA remain the hotspots for employment opportunities, with year-on-year growth in vacancies between 30 and 40 per cent.
“In most recent months, the biggest occupational growth has been in operational management, with the sub sectors of metal ore mining, and coal and mineral mining, showing large growth.
“We are also seeing great demand for labour in more regional areas, in particular skills shortages in the Kalgoorlie Goldfields.
“It is an exciting time to be working in the Australian resources and energy industry.”
Recruiting Staff
The process for recruiting personnel had noticeably shifted in the last few years.
While traditional recruiting methods were still utilised, apps and cloud-based software were being embraced by companies, large and small.
“With competition for labour around the country, many companies have turned to recruitment practices that are digitally led, and certainly new to the sector for some parts of the industry,” Minister Cash said.
A group of technology companies have engineered Uber-like recruitment apps that streamline the process, providing efficiency for both the recruiter and end user.
There were also platforms that automated HR processes such as managing time sheets, payslips, invoicing, equipment and uniform orders, and work schedules.
Ms Cash said mining equipment and technology services ( METS) providers were also using non-traditional methods to talent spot and recruit, including hackathons designed to solve mining problems.
“These events can attract talent, such as computer and data scientists, statisticians and programmers, that otherwise may not consider a career in the resources and related sectors,” Ms Cash said.
“Mining solutions of the future will be solved using approaches across many disciplines, so it is crucial to recruit people with varied skills.”
For example, Perth-based company, Unearthed Solutions, runs mining and METS hackathons both domestically and internationally, and has received support from the Government via the METS Ignited Growth Centre.
Ms Cash said a number of hackathon participants received employment offers or were paid for targeted project work and research.
Overseas Workers
The pool of job-ready personnel was also evolving, with less international workers, for one.
In 2017, the Government announced it would scrap the 457 visa and replace with a new 482 visa scheme.
AMMA’s Mr Reid said the biggest impact of the legislation was access to a more limited occupation list that qualified under the new visa.
“AMMA has worked with the government through the implementation of the new visa system to ensure those occupations in high demand and requiring the most assistance from overseas labour remain accessible in Australia’s skilled migration systems,” Mr Reid said.
Minister Cash said it was worth noting that the number of 457 visa holders in Australia sponsored by businesses in the mining industry steadily declined since its peak in September 2012 (when there were 8000 457 visa holders, compared to about 1600 in December 2016).
However, in response to the call from businesses to deliver more flexible visa arrangements, a new Global Talent Scheme (GTS) was introduced on 1 July, 2018.
“It allows businesses, as well as start-ups, to sponsor highly-skilled and specialised workers not covered by the standard TSS visa,” Ms Cash said.
“Mining companies may be able to access the GTS if they require, and cannot domestically source, a worker whose occupation does not appear on the occupation lists.”
Mr Reid said the GTS could potentially fill some of the gaps that arose when the more limited 482 visa took effect.
The resources industry operated in a “highly-globalised skills market”, he added, with international expertise often required in Australia, just as Australian expertise was required overseas to develop projects in other parts of the world.
“This is made even more acute when Australia experiences peak demand cycles, such as that in 2004 to 2014 period,” he said.
“We are heading in that direction of acute skills shortages again.
“It’s always important to have access to international skills to supplement and work with and bolster our local workforce.
“This a long-term reality of an international industry that requires long-term policy certainty to shore-up large numbers of skilled and experienced people.”
Upskilling
This issue was again amplified because people who entered mining during the peak had moved onto other sectors post-2014.
Mr Reid said the challenge would be to attract these people back to mining.
“Anecdotally we are hearing of some reluctance among pockets of skilled people to return to the industry,” he said.
“The other challenge is learning from the past and ensuring that as activity in the sector continues to increase, this translates into long-term sustainable employment that is less exposed to commodity price cycles or cyclical investment periods.
“Employers have certainly turned their attention to better managing the ebbs and flows of the labour demand in the resources and energy industry, so if and when the current cycle inevitably again starts to decline, we don’t lose another generation of skilled, experience and valuable people.
“We don’t want to be facing the same repeated challenge of having to recruit and attract talent another wave of talent in another five to 10 years’ time.”
Furthermore, workers also had to be mindful of staying relevant amid the fourth industrial revolution – or Industry 4.0 – which will see technology become integral part of the mine’s design and daily operations.
A recent Deloitte report highlighted the half-life of learned skills was now about five years, meaning upskilling needed be the ‘new normal’ in an increasingly mechanised world.
Companies and workers will share a joint responsibility in upskilling across automation, artificial intelligence, Internet of Things, and cloud computing.
“It is an exciting time to be working in the Australian resources and energy industry.”