METS Insight: Does Australia have talent?

The mining resources and equipment, technology and services sectors combine to contribute an estimated 15% of Australia’s GDP, creating more than 1.1 million jobs, of which METS companies directly employ 300,000 people.

In this latest edition of the METS Insight: State of Mining Review series, Mining.com.au looks at talent acquisition and labor shortages. Despite being a major employer, closing the digital skills gap and upskilling the mining sector’s workforce is becoming its biggest challenge and opportunity.

Australia’s mining and METS sectors are facing increased competition to recruit talent from neighboring regions, including New Zealand, Papua New Guinea and Southeast Asia, where demand is increasing.

In May 2024 there were almost 30% more mining vacancies than during the pandemic.

Speaking on the subject of job vacancies and recruitment, Hays North Queensland Regional Director Ged Welsh says that by 2024 Australia’s mining and METS sectors face increased competition from neighboring regions, such as New Zealand, Papua New Guinea and Southeast Asia, where demand is increasing.

“This is putting additional pressure on our capacity, productivity and candidate attraction efforts. On the plus side, technological advances are positioning Australia’s mining houses as employers of choice for tech-savvy people.” the welsh says Mining.com.au.

“In addition, there has been significant investment in the METS sector, particularly in manufacturing and maintenance centers located near mining regions such as Mackay, Rockhampton and Newcastle, which support the coal industry. This expansion has created further opportunities for specialist mining contractors and mining support companies”.

Filling the void

Nationally, the Department of Science and Industry Resources has found that nearly 60 projects worth $41 billion have required 20,767 on-site operational employees.

A McKinsey & Company report suggests that if Australia decides to convert all of its spodumene to lithium hydroxide, nearly 4,000 additional workers will be required to operate the plants in Western Australia by 2030 alone.

CSIRO’s Critical Energy Materials Roadmap estimates annual demand for metals and minerals in excess of 700 million tonnes by 2050, including nearly 9Mt of lithium for energy storage, more than 130Mt each of silicon for electric vehicles and 48Mt of nickel, also needed for batteries.

This growing demand for these minerals and metals alone means that a skilled and diversified workforce is needed more than ever.

Aiming to start driving change, the International Mining and Resources Conference (IMARC) in Sydney from 29-31 October champions equality, diversity and inclusion while showcasing cutting-edge equipment and technology from resources and METS companies.

Recruiting women into the mining industry presents both challenges and opportunities, according to Hays’ Welsh.

“While new female entrants are highly desirable, they are hard to find. However, there are no barriers to entry and women are very welcome throughout the industry.” adds the Welsh.

“In coal mining, there are no barriers as long as candidates have the required skills. Furthermore, fostering a diverse workforce offers significant opportunities to improve facility standards, making them more inclusive and attractive.” .

As the Hays Mining Industry Report Australia FY24-25 highlights, it is incredibly difficult to recruit and retain the talent that mining companies need, particularly in specialist fields such as mine planning, process engineering and digital (data science and automation).

Australia has talent, where is it?

In addition, the labor shortage problem is that mining is no longer an aspirational industry for the incorporation of many young technical talents.

Welsh says miners and METS companies face several challenges in attracting younger workers, particularly Gen Z.

“The appeal of well-paying urban jobs and the desire for work-life balance are significant disincentives, particularly compared to FIFO roles in the remote mining world.” says this news service.

“Furthermore, the sector’s reliance on labor recruitment and preference for experienced candidates over new entrants (‘green-skin’ recruitment) has reached an all-time low, making it difficult for younger workers to enter the sector

“Aging infrastructure, especially in exploration, also poses a challenge as it may not meet the expectations of the younger generation who prioritize modern and well-equipped facilities.”

The vagaries and vacancies of the market

When asked what were the emerging trends so far in 2024 that were somewhat of a surprise to the market and Hays, Welsh notes that there was a surprising increase in demand for underground and surface operators in the rock sector tough from the east coast, which contrasted sharply with the last three. years

“Additionally, there is a severe shortage of qualified maintenance candidates, which has taken many by surprise.” adds

“On the West Coast, customers have become more stringent with their demands for maintenance functions, and the geology, exploration and technical engineering sectors have moved into the contractor market. The growth continued capex projects have also contributed to the persistently high demand for skilled maintenance trades.”

In the May 2024 Budget, Treasurer Jim Chalmers announced it was one “for here and now and for decades to come” with the Australian Government’s top priorities to help with the cost of living, build more homes and develop a skilled workforce.

The government says providing the skills for its Future Made in Australia initiative requires more women working in male-dominated sectors such as mining and resources. As such, it is investing $55.6 million to establish the Building Women’s Careers program to support women’s participation in key industries such as clean energy and advanced manufacturing.

Among other measures, Chalmers’ third budget expands eligibility for the New Energy Apprenticeship Program to include apprentices with exposure to work in clean energy, including construction and advanced manufacturing.

Express talent

Globally, resource companies are experiencing talent attrition, with 71% of mining leaders finding that talent shortages are preventing them from meeting production goals and strategic objectives.

Talent Blue is a new entrant to the recruitment market and is potentially diversifying into other market segments over the next few years, particularly verticals within the mining sector.

Victoria State Accounts Manager Andrew Grant says a well-managed, motivated and trained workforce has always been a core driver of productivity and safety in mining. However, unprecedented skills shortages make it harder for this to be the case.

Grant says Mining.com.au after years “A lack of margin in labor relations” an emerging trend will be new government policies that make it clearer and easier for procurement agencies to operate in mining and construction.

“Without looking into the crystal ball, because we don’t know what will happen, we are definitely starting to see some change in government that hasn’t been allowed to happen for 10 years, I guess (recruitment). agencies) to do what we need to do well,” he says

“I think that would be a big emerging trend. I think a lot of agencies are going to be eager to see what the next six to 12 months of opportunities are going to be.”

Talent Blue provides end-to-end workforce solutions and serves the mining, energy and resources sectors, meeting HR requirements and integrating into client operations. It specializes in staffing solutions for mining operations of all sizes in regional, remote and Asia-Pacific locations.

Talent Blue WA state manager Jenny Smith says more companies need to invest in training industry entrants and implement incentives to keep them in the industry, which is now starting to happen, especially when a hand of older workers are heading into retirement taking their industry knowledge with them.

“Advances in technology and software offer opportunities to improve skills, which can help older workers remain competitive”

As Hays North Queensland Regional Director points out, as long as all the industry and site specific inductions can be achieved, the mining industry can be a rewarding environment for people of all ages.

“Advances in technology and software offer opportunities to upgrade skills, which can help older workers remain competitive. In addition, there is a strong case for retaining experienced older workers who can serve as mentors, and the industry offers more and more flexible lists to suit your needs.” adds the Welsh.

“There has been a proactive effort across the industry to support the recruitment of Indigenous people. There are no barriers to entry, and a greater supply of local Indigenous candidates could help reduce reliance on FIFO workers, which would benefit both the community and the industry by reducing costs in the long term. It is the right course for all involved.”

What does the road to 2025 look like for the METS sector?

“I think it’s going to be really exciting to be in WA with Talent Blue coming on the scene … we’ll just have to look at the space.” Smith says.

Write to Adam Orlando a Mining.com.au

Images: Stock, Kalamazoo & Variscan