Mining and mineral processing (Word)

Part 3 Industry demand for training

1Operational (Mining & Processing)

Characteristics of the existing workforce

Employment arrangements

It has been suggested that contracting firms are increasingly being favoured over direct employment in the operational sector. The following chart (generated from economic survey data published in the Tasmanian Minerals Council’s Annual Report 2004) reveals no significant change in the division of full time employees (72%) and full time contractors (28%) over the period 1999 to 2003.



Source: Tasmanian Minerals Council – Annual Report 2004, p 7

Employer size and location

If the Australian Bureau of Statistics (ABS) definition of business size is adopted, the majority of the State’s existing (and imminent) mining/processing operations can be classified as medium businesses (i.e. employing 20 or more people, but less than 200 people). 47% of these businesses are/will be based on the West Coast, 33% in the North/North East, 13% in the North West and 7% in the South.

Gender balance

Approximately 97% of the operational workforce is male.

Aging workforce

The average age of the State’s operational workforce sits somewhere between 35 and 47 years (indicative of an aging workforce), there are few (if any) strategies in place to address the aging workforce issue.

Recruitment

Word of mouth, newspaper adverts and employment agencies are the main recruitment methods, with little/no usage of Group Training Organisations or New Apprenticeship Centres.

Attrition

Attrition rates of operational staff vary on a regional basis – on the West Coast, attrition is moderate to high amongst mining operators, whereas in the South, attrition is low amongst processing operators. As previously mentioned, the social infrastructure on Tasmania's remote locations may not be conducive to retaining a stable workforce.

Attrition rates of professional staff are extremely high across the State.

Skill levels

The attraction and or retention of professional staff (especially engineering staff) is a critical issue currently facing the mining and processing sector. The inherent difficulties associated with securing appropriately skilled professional staff are forcing many HR departments to employ under-skilled staff in an attempt to address critical work demands.

TAFE Tasmania is currently providing a significant (and well-received) assessment service too many of the State’s mining/processing operations. However, the public training system will need to consider the allocation of additional resources if the minerals industry is to realise growth forecasts addressed in Part 1 of this Profile (refer page 9).

Public training system activity

The following chart portrays a decline in publicly-funded training in the metalliferous mining sector from 2002 onwards. Information provided by TAFE Tasmania indicates there have been 84 commencements in open cut/processing qualifications this year (not yet identified in the OPCET data). The decline in training activity can be seen to support three possible positions:

1. 
   Participation in vocational education and training is in decline
   
2. 
   Training demand was met during the 2001 period
   
3. 
   Training activity drops during industry troughs.
   

It should be noted that data informing the following chart only incorporates training activity relating to the Metalliferous Mining Training Package (MNM99) and does not include skill development initiatives undertaken outside the public training system. No commencements have yet been recorded into the reviewed Metalliferous Mining Training Package (MNM05).



Source: Office of Post-Compulsory Education & Training (Data as at 28 July 2005)

Normal drivers of training demand in this industry group

Training demand is predominantly driven by two main factors:

• 
  The critical need for a skilled workforce (mining/processing staff cannot undertake tasks in a safe or efficient manner if they are unskilled or under-skilled).
  
• 
  The impact of moderate to high attrition rates (head hunting/poaching of trained staff by local competitors is apparently common, and interstate jobs apparently offer better remuneration and living conditions).
  

Changes occurring in demand for training

There are three main factors changing training demand:

• 
  Forecast industry growth (substantial increase in new businesses and a resurgence in mineral exploration on the West Coast)
  
• 
  Lack of skilled operators/professionals to fully realise forecast growth potential
  
• 
  Difficulty (or inability) to attract new entrants to the industry.
  

Changes required to the nature of training

While a number of changes are required to the nature of training in order for mining and processing operations to fully realise growth potential, these changes are not qualification-based.

The target market for training

There are three main target markets for training:

• 
  Existing employees (requiring innovative upskilling and recognition initiatives)
  
• 
  Job changers or green workers (new entrants to the industry with transferable skills, such as forestry workers, farmers or armed service people)
  
• 
  Unskilled workers (approximately 50% of new entrants to the industry are unskilled).
  

Numbers of people that need to be trained

It is imperative that a percentage of the following figures be considered conditionally upon growth forecasts being realised. TAFE Tasmania is currently providing on-site assessment options to existing workers (underground miners/process operators) on the West Coast.

Occupation	Numbers	Region	Qualification/Units
Underground Miner	220	West Coast	MNM30205 Certificate III in Metalliferous Mining Operations – Underground
Minerals Processing Operator	170	West Coast	MNM30305 Certificate III in Metalliferous Mining Operations - Processing
Mineral Ore Processing Laborers	20 – 30 (pilot)	West Coast	Pre-employment program incorporating a selection of units from the following list: MNMC201A Work safely MNMC202A Communicate in the workplace MNMC203A Contribute to quality work outcomes MNMC205A Conduct local risk assessment BSBCMN215A Participate in environmental work practices MNMG203A Plan & organise individual work MNMG204A Perform initial response First Aid MNMG207A Conduct dogging operations MNMG208A Conduct basic rigging operations MNMG215A Apply operational maintenance skills MNMG216A Service mine plant and equipment MNCG1068A Test operational function of mine vehicles & equipment
Fitter	15	West, NW & NE	MEM30205 Certificate III in Engineering – Mechanical Trade
Boiler maker	45		MEM30305 Certificate III in Engineering – Fabrication Trade
Electrician	20		UEE40605 Certificate IV in Electrotechnology - Systems Electrician

Comments on any government funded training provision in excess of local industry needs

There is no government funded training provision in excess of local industry needs.

Recommendations for the appropriate response by the training system

Partnerships to facilitate key skill needs

Establish a partnership between industry, unions, local government, RTOs, community organizations and schools/colleges to facilitate an industry-based (not classroom-based) skills development initiative for unskilled mining and processing workers in an attempt to reinforce the existing local labour pool on the West Coast. The initiative (promoted as a pre-employment program) should target young Tasmanians, disadvantaged workers and mature aged workers. It should address key industry skill needs including First Aid, OHS, hazard identification and risk identification. . The program should draw on a selection of the following competencies from the Metalliferous Mining Training Package (MNM05):

• 
  MNMC201A Work safely
  
• 
  MNMC202A Communicate in the workplace
  
• 
  MNMC203A Contribute to quality work outcomes
  
• 
  MNMC205A Conduct local risk assessment
  
• 
  BSBCMN215A Participate in environmental work practices
  
• 
  MNMG203A Plan and organize individual work
  
• 
  MNMG204A Perform initial response First Aid
  
• 
  MNMG207A Conduct dogging operations
  
• 
  MNMG208A Conduct basic rigging operations
  
• 
  MNMG215A Apply operational maintenance skills
  
• 
  MNMG216A Service mine plant and equipment
  
• 
  MNCG1068A Test operational function of mine vehicles and equipment
  

.

Partnerships to facilitate effective training delivery

The same partnership could be used to pool resources between industry and RTOs in order to achieve the following:

• 
  Collaborative approaches to on-the-job training that have minimal impact on work operations
  
• 
  Collaborative approaches to addressing the need/reason/cost of training
  
• 
  Effective knowledge transfer between industry experts and RTO staff (e.g. Return to Industry programs)
  
• 
  A joint commitment to the apprenticeship/traineeship system
  
• 
  A joint commitment to post-trade training
  
• 
  A joint commitment to the recognition of existing workers
  
• 
  An ongoing and effective RTO presence on the West Coast (including local training facilitators and local opportunities to train)
  

Partnerships to facilitate apprentice rotation

The same partnership could be used to facilitate an apprentice rotation program across various mining/processing sites on the West and North West Coasts. This would boost the local trade pool and reduce the risk of trained workers being poached.

It has been suggested that apprentice rotation could be achieved via a mining-specific (and industry driven) Group Training Organisation.

Information on training demand being met outside the Tasmanian public system

While difficult to quantify, it has been suggested that 90% of minerals-based training is met internally or by private providers. The public training system cannot meet the specialist training needs of the minerals sector, and this view is confirmed in the NCVER/CMEWA report Prospecting for Skills: The Current and Future Skill Needs of the Minerals Sector:

The minerals sector provides much of its own training. Approximately 90% of training for the industry is privately funded and the minerals industry is not a significant user of the VET sector. ¹¹

Examples of training currently being met outside the State’s public training system include:

• 
  Behavioural-based safety
  
• 
  Electro-hydraulics
  
• 
  Explosives
  
• 
  Heavy machinery
  

While not entirely reflective of the national trend to under-utilise VET, a number of operators identified two main reasons for their preference of internal training:

1. 
   Current apprenticeship/traineeship system is overly bureaucratic
   
2. 
   Training facilities and expertise not available within the State.
   

In order to meet training demand, organisations offer internal training that is not accredited and not nationally recognised. .

Additional industry advice not directly related to industry demand for training

While outside the scope of this Profile, the following suggestions were made during industry consultations:

1. 
   Investigate the feasibility of establishing a community-based employment co-operative on the West Coast.
   
2. 
   Investigate the feasibility of developing, accessing and/or promoting support materials that align to the newly developed Metalliferous Mining Training Package (MNM05).
   
3. 
   Investigate the feasibility of mapping previously developed support resources to the new MNM05 competency standards (refer RIISC).
   
4. 
   Investigate the feasibility of developing resources to assist the mapping of MNM05 competency standards to generic operational procedures.
   
5. 
   Investigate the feasibility of developing RPL Kits for the following qualifications:
   

• 
  MNM30205 Certificate III in Metalliferous Mining Operations – Underground
  
• 
  MNM30305 Certificate III in Metalliferous Mining Operations - Processing