Mining and mineral processing (Word)

Part 2 Skill shortages

There has been substantial (recent) research into the current and future skill needs of the minerals industry. It is apparent that the skill shortages impacting the State’s mining, processing and drilling operators are being experienced nationally and are comparable to those identified in the following papers:

Minerals Council of Australia

• 
  Prospecting for Skills: The Current and Future Skill Needs in the Minerals Sector
  NCVER/CMEWA (May 2005)
  
• 
  Skills: A Strategic Approach
  Mitchell H. Hooke, Chief Executive, Minerals Council of Australia
  
• 
  Skilling the Workforce for the Minerals Industry
  Tony Noonan, Manager Strategic Projects, Macmahon Holdings
  
• 
  Retention Strategies - Engaging the Workforce
  Professor David Brereton, Director, Centre for Social Responsibility in Mining
  
• 
  The Minerals Industry National Skills Shortages Strategy Project
  David Smith, Managing Director, Pilbara Iron
  

All of the above papers can be accessed from Minerals Council of Australia website at:
www.minerals.org.au/corporate/upcoming_events/minerals_week_2005/mw05_papers

Resources and Infrastructure Industry Skills Council

• 
  Industry Skills Report (May 2005)
  www.riisc.com.au
  

Queensland Resources Council

• 
  Attraction and Retention in Queensland’s Mineral Resources Sector (August 2004)
  www.qrc.org.au/_dbase_upl/Attract_retain_Rowlands.pdf
  
  
  

Regional Approaches to Statewide Issues

The skill shortages identified on the following pages have been identified across Tasmania. However, while strategies to address such shortages need to be instigated at a State level, the strategies themselves need to be implemented at a regional level.

Professional Skill Shortages

Occupations

• 
  Electrical Engineers
  
• 
  Geologists (Mine and Exploration)
  
• 
  Metallurgists
  
• 
  Mine Managers
  
• 
  Mining Engineers
  
• 
  Occupational Health & Safety Officers
  
• 
  Surveyors (Mine and Underground)
  

Possible Cause of Skill Shortage

The majority of mining operations within the State are experiencing significant difficulties attracting and retaining professional staff. Advertised positions (e.g. mine managers and mining engineers) are remaining unfilled for periods of up to 6 months. Skill shortages in these areas are directly attributable to unfavourable perceptions of the industry and of the State (i.e. Tasmania being seen as a remote location).

Current Strategies – National

• 
  The Minerals Council of Australia commits $2 million per year to a National Education Program in an attempt to create a more balanced understanding of the industry and to make available undergraduate and professional development education for those who may choose to pursue careers in the industry. The Council has developed substantial career-based resources to support this Program, and also hosts a career-based website.
  www.minerals.org.au/education
  www.minerals.org.au/education/NEP/educational_resources
  www.minerals.org.au/careers
  
• 
  The Australasian Institute of Mining and Metallurgy website provides a comprehensive overview of career opportunities that exist in the minerals industry.
  http://www.ausimm.com/education/professions.asp
  
• 
  The Queensland and Western Australian Minerals Councils have developed state-specific websites in an attempt to promote mining careers.
  www.qrc.org.au/careers.html
  http://careers.cmewa.com/home.php
  
• 
  The Engineers Australia website highlights general career opportunities in engineering.
  http://www.ieaust.org.au/careers/disciplines.html
  

Current Strategies – State

• 
  The Tasmanian Minerals Council (in conjunction with the Minerals Council of Australia) employs an Education Manager and two part-time Education Officers to promote careers in the mining industry to all schools across the State.
  www.tasminerals.com.au/education.htm
  
• 
  Mining organizations currently offer scholarships and relocation incentives to professional staff.
  

Success of Current Strategies

From a vocational education and training perspective, it is difficult to measure the success of the above strategies, as the skill needs of the identified occupations are predominantly addressed in the tertiary sector. However, with positions remaining unfilled for 6 months, it would seem the current strategies require review (or additional resource).

Cross-Industry Trade Skill Shortages

Occupations

• 
  Boilermaker/Welders
  
• 
  Electricians
  
• 
  Fitters
  
• 
  Riggers / Dogmen
  

Possible Cause of Skill Shortage

A commonly argued (but unverified) cause of trade shortages is the lack of commitment from industry to the apprenticeship system. With the trend to a minimal workforce, many mining organizations are no longer employing trade apprentices, relying instead on contracting firms to supply this demand. Reasons vary as to why this commitment has been lost, but discussion often surrounds unfriendly bureaucratic processes, unsustainable training costs and the risk of poaching. If verified, this lack of commitment has led to high labour mobility which in turn is impacting operational efficiency and productivity.

Trade skill shortages in the mining industry are also impacted by attraction/retention issues (refer page 13 – Regional Approaches to Statewide Issues).

Current Strategies – National

• 
  Commonwealth Trade Learning Scholarship Programme
  $106.3 million over four years to help ease the financial burden faced by apprentices in their first years of training in a trade experiencing skills needs. This includes the Tools for your Trade initiative, where tool kits valued at up to $800 will be provided to those entering an apprenticeship in a skill shortages trade.
  www.dest.gov.au/Ministers/Media/Hardgrave/2005/07/h003010705.asp
  
• 
  Australian Technical Colleges
  The establishment of 24 Technical Colleges aimed at increasing the number of apprentices in traditional trades. Anecdotal evidence indicates significant support within the State’s minerals industry for the proposed Technical College in Northern Tasmania. Some stakeholders have mistakenly linked (and welcomed) the new College to the concept of trade-based training delivered and funded outside employment contracts. While years 11 and 12 students will undertake trades related vocational courses and develop employability and entrepreneurial skills, industry will also be required to play a pivotal role in employing students as school-based new apprentices.
  www.australiantechnicalcolleges.gov.au/discussion_paper.htm
  
• 
  National Skills Shortage Strategy
  A variety of initiatives to address trade-based skill shortages, including the Adopt A School initiative, where links are forged between employers and schools to improve awareness of career and training options.
  www.getatrade.gov.au
  
• 
  Australian Network of Industry Careers Advisers
  National career and transition support network for young Australians aged 13 to 19 years. Delivered through Local Community Partnerships (LCPs) with funding of $143.2 million from 2005 to 2009. Will build on existing programs to further improve the career choices of young people and increase levels of student engagement.
  www.dest.gov.au/sectors/career_development/programmes_funding/programme_categories/key_career_priorities/australian_network_industry_careers_advisers.htm
  

Current Strategies – State

• 
  Area Taskforces
  The Office of Post-Compulsory Education and Training (OPCET) is currently establishing Area Taskforces to foster partnerships for young Tasmanians as they move from school to further education, training and employment. The initiative will bring together a diverse range of stakeholders including young people, parents, schools, colleges, TAFE Tasmania, private training providers, the University of Tasmania, employers, youth service providers, local councils, government agencies and community organizations. Stakeholders in each area will work together to develop, implement and monitor an action plan for the community’s youth aged 15 to 24 years. These collaborative action plans will identify ways in which young people can be better supported to achieve their post-Year 10 destination goals.
  
• 
  Mature Aged Entrants to Trades
  OPCET is currently working with industry to create opportunities for adults not currently employed as trades people to enter a trade and have the skills they already possess recognized.
  
• 
  Pre-Employment Training
  The Metal Industries Association of Tasmania and TAFE Tasmania are currently promoting employment in the metal trades, with pre-employment courses in metal fabrication/fitting and machining offered around the State from January 2005.
  www.tafe.tas.edu.au/institute/media_releases/mediareleases_detailed.asp?ID=156
  

Success of Current Strategies

It is difficult to measure the success of the above strategies, as they are all in the process of/yet to be implemented. It should be noted that while industry itself concedes the skill shortages cannot be addressed in the short term (with apprenticeship terms ranging from 3 to 4 years); there is little evidence to suggest that Tasmanian mining/processing operators are committing to a longer term strategy (i.e. employing apprentices now in preparation for future growth).

Operational (Mining & Processing) Skill Shortages

Occupations

• 
  Mineral Ore Processing Laborers
  
• 
  Miners (Open Cut and Underground)
  
• 
  Mining Plant Operators
  
• 
  Mineral Ore Treatment Plant Operators
  
• 
  Minerals Processing Operators
  
• 
  Truck Drivers
  

Possible Cause of Skill Shortage

While there is no direct evidence of existing skill shortages in mining and processing staff (e.g. a recent advertisement for 11 processing workers in southern Tasmania attracted 250 applications), there is ample evidence to suggest a shortage looms in the future if the proposed developments of Allegiance Mining, Bluestone Tin, GTN Resources, Intec Hellyer Metals, Stemcor Holdings and Van Dieman Mines are all realised. These businesses carry the possibility of 400 new jobs across the State.

There is an industry perception on the West Coast that the existing local labour pool – from which mining and processing workers can be drawn when required – has adequate reserves to cope with future growth. However, there is little doubt this labour pool will be substantially depleted over the next 24 month period.

Current Strategies – National

None

Current Strategies – State

None

Success of Current Strategies

N/A

Exploration Skill Shortages

Occupations

• 
  Drillers Assistants
  
• 
  Drillers (Production and Underground)
  
• 
  Blasting Workers
  

Possible Cause of Skill Shortage

A perception currently exists within the exploration industry that traineeships are practically impossible to implement because of AQTF/STA reporting requirements and ingrained close-to-RTO/close-to-base infrastructure. The traineeship system is seen as overly bureaucratic and not responsive to the needs of a mobile industry (We’re always out in the paddock). As a consequence, drilling operators are not signing on trainees.

Another major cited cause is the apparent inability to attract and retain employees (refer page 16 – Regional Approaches to Statewide Issues). It should also be noted that a significant equipment shortage is impacting the exploration industry at both a national and State level.

Current Strategies – National

Recommendations for combating skill shortages in the exploration industry will be a key topic at the Australian Drilling Forum (to be held in Perth on August 16-17, 2005).

Current Strategies – State

None

Success of Current Strategies

N/A