The resources and mining 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 businesses employ 300,000 people directly.
In this final edition of the METS Insight: State of Mining Review series, Mining.com.au looks at talent acquisition and the skills labour shortage. Despite being a major employer, closing the digital skills gap and upskilling the mining sector’s workforce is emerging as both its biggest challenge and opportunity.
Australia’s mining and METS sectors are facing heightened competition for recruiting talent from neighbouring regions, such as 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 issue of job vacancies and recruitment, regional director for Hays North Queensland, Ged Welsh says in 2024 Australia’s mining and METS sectors are facing heightened competition from neighbouring regions, such as New Zealand, Papua New Guinea, and Southeast Asia, where demand is increasing.
“This is placing additional strain on our capacity, productivity, and candidate attraction efforts. On the positive side, advancements in technology are positioning Australia’s mining houses as employers of choice for tech experts,” Welsh tells Mining.com.au.
“Moreover, there has been significant investment in the METS sector, particularly in manufacturing and maintenance hubs located near mining regions like Mackay, Rockhampton, and Newcastle, which support the coal industry. This expansion has created more opportunities for specialist mining contractors and mining support businesses.”
Filling the void
Domestically, the Department of Industry Science and Resources has found that almost 60 projects worth $41 billion have needed 20,767 on-site operating employees.
A McKinsey & Company report suggests if Australia decides to convert all of its spodumene to lithium hydroxide, nearly 4,000 additional workers will be required to operate Western Australian plants by 2030 alone.
The CSIRO’s Critical Energy Materials roadmap estimates an annual demand for metals and minerals exceeding 700 million tonnes by 2050, including nearly 9Mt of lithium for energy storage, more than 130Mt each of silicon for EVs, and 48Mt of nickel, also necessary for batteries.
This increasing demand for just these minerals and metals means a growing skilled and diversified workforce is needed more than ever.
In a bid to start driving change, the International Mining and Resources Conference (IMARC) in Sydney on 29-31 October is championing 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 difficult to find. However, there are zero barriers to entry, and women are highly welcomed across the sector,” Welsh adds.
“In coal mining, there are no barriers as long as the candidates have the required skills. Additionally, fostering a diverse workforce offers significant opportunities to improve the standards of facilities, making them more inclusive and appealing.”
As the Hays Mining Industry Report Australia FY24-25 highlights, it is incredibly cumbersome recruiting and retaining the talent mining companies need, particularly in specialised fields such as mine planning, process engineering, and digital (data science and automation).
Australia’s got talent – where is it?
Compounding the labour shortage issue is that mining is no longer an aspirational industry for many young technical talent to join.
Welsh says miners and METS firms face several challenges in attracting younger workers, particularly Gen Z.
“The appeal of high-paying urban jobs and the desire for work-life balance are significant deterrents, especially in comparison to FIFO roles in the remote mining world,” he tells this news service.
“Additionally, the industry’s reliance on labour hire and the preference for experienced candidates over new entrants (‘green skin’ recruitment) has reached an all-time low, making it harder for younger workers to break into the sector.
“The ageing infrastructure, especially in exploration, also poses a challenge, as it may not meet the expectations of the younger generation who prioritise modern and well-equipped facilities.”
Market vagaries and vacancies
When asked what were emerging trends so far in 2024 that were somewhat of a surprise for the market and Hays, Welsh notes there was a surprising surge in demand for underground and surface operators in the East Coast hard rock sector, contrasting sharply with the past three years.
“Additionally, there’s a severe shortage of skilled maintenance candidates, which has caught many by surprise,” he adds.
“On the West Coast, clients have become stricter with their demands for maintenance roles, and the geology, exploration, and technical engineering sectors have shifted into an employer’s market. The ongoing growth in capex projects has also contributed to the persistent high demand for skilled maintenance trades.”
In the May 2024 Budget, Treasurer Jim Chalmers touted it was one “for here and now and for the decades to come” with the Australian Government’s main priorities to help with the cost of living, building more homes, and developing a skilled workforce.
The government notes that delivering 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 including clean energy and advanced manufacturing.
Among other measures, Chalmers’ third budget expands eligibility to the New Energy Apprenticeships Program to include apprentices with exposure to work in clean energy, including in construction and advanced manufacturing.
Talent squeeze
Globally, resources companies are experiencing a talent squeeze with 71% of mining leaders finding the talent shortage is impeding them delivering on production targets and strategic objectives.
Talent Blue is a new entrant into the recruitment market and is potentially diversifying into other market segments over the next few years, particularly verticals within the mining sector.
State Account Manager for Victoria Andrew Grant says a well-managed, motivated, and trained workforce has always been a core driver for productivity and safety in mining. However, the unprecedented skills shortage is making it harder for it to be the case.
Grant tells Mining.com.au after years of “some slackness around industrial relations” an emerging trend will be new government policies making it clearer and easier for recruitment agencies to operate in mining and construction.
“Without looking at the crystal ball, because we don’t know what’s going to happen, definitely, we’re starting to see some change of governments that have been there for 10 years that haven’t, I suppose, allowed us (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 will be looking forward to seeing what the next six to 12 months of opportunities will be.”
Talent Blue offers end-to-end labour solutions and serves the mining, energy, and resource sectors, meeting HR requirements and integrating into client operations. It specialises in staffing solutions for mining operations of all sizes across 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, something that’s now starting to happen, especially as an older workforce head to retirement taking their industry knowledge with them.
“The advancement of technology and software presents opportunities for upskilling, which can help older workers remain competitive”
As the regional director for Hays North Queensland notes, providing all relevant industry and site specific inductions can be attained, the mining Industry can be a rewarding environment for people of all ages.
“The advancement of technology and software presents opportunities for upskilling, which can help older workers remain competitive. Additionally, there is a strong case for retaining experienced older workers who can serve as mentors, and the industry is increasingly offering flexible rosters to accommodate their needs,” Welsh adds.
“There has been a proactive effort across the industry to support the recruitment of Indigenous people. There are no barriers to their entry, and an increased supply of local Indigenous candidates could help reduce the reliance on FIFO workers, which would benefit both the community and the industry by lowering long-term costs. It is the right course of action for everyone involved.”
What does the road ahead into 2025 look like for the METS sector?
“I think it’s going to be very exciting being in WA with Talent Blue coming onto the scene… we’re just going to have to watch the space,” Smith says.
Write to Adam Orlando at Mining.com.au
Images: Stock, Kalamazoo & Variscan
