Australia’s mining sector is facing a critical shortage of workers that leaders say will stifle future projects if the industry can’t convince younger, more environmentally conscious generations to join its ranks.
Key points:
- The Australian mining sector will need 24,000 new workers in the next five years
- Industry leaders say it’s the worst skills crisis in a generation
- They say they face the challenge of marketing an industry with a troubled environmental reputation to greener generations
The Australian Resources and Energy Employers Association (AREEA) released a report last week which claimed the mining industry would need 24,000 new workers over the next five years to sustain new projects across the country.
“Our industry is battling the worst skills crisis in a generation,” said Steve Knott, chief executive of the association.
The report stated that at least 107 projects, including coal, gold and critical minerals, were at risk of being affected by labor shortages.
“This is threatening the continuity of existing operations, resulting in temporary or permanent production cutbacks and causing other workforce issues, including historic levels of staff turnover,” Knott said.
AREEA head of policy and public relations Tom Reid said the challenges were significant.
“We currently do not have enough people to continue operations at their full productivity level,” Reid said.
But industry leaders said one of the biggest barriers to filling the job gap was winning over younger generations, specifically Generation Z, which was currently entering the workforce.
Recruit a green generation
Glencore’s Mount Isa mine has 250 jobs it is struggling to fill. (ABC North West Queensland: Emily Bissland)
Queensland Resources Council (QRC) chief executive Ian Macfarlane said misinformation about the mining industry spread on social media had skewed perceptions among younger generations.
“The first hurdle to getting young people on board is a constant bombardment on social media, which gives them a false impression of the industry and the opportunities out there,” he said.
Some setbacks have included mining giant Glencore, which operates in Australia, recently pleading guilty to bribery charges in some African countries.
Meanwhile, in May 2020, Rio Tinto destroyed culturally significant rock shelters in Juukan Gorge in order to expand its iron mine.
Glencore’s Mount Isa mine produces copper, lead and zinc. (ABC RN: David Lewis)
With examples of abandoned rehabilitation projects, poisoning waterways, contributing to greenhouse gas emissions, corruption and a focus on profits, the mining industry has been forced to rebrand itself as the environmental sustainability becomes a global focus.
With growing demand for coal and critical minerals, Macfarlane said young people should not ignore the importance the sector played in economic development.
The Blair Athol Coal Mine in central Queensland has one of the largest coal deposits in the world. (Provided by: Rio Tinto)
“We launched a program aimed directly at the hearts and minds of Gen Z, telling them, ‘don’t sit on the sidelines throwing rocks, get involved in this industry; you are part of the transition as an industry and The world is moving towards net zero by 2050,” he said.
Mr Macfarlane hoped significant salaries and the promise of an industry in transition would catch the eye of Gen Z.
“There are very well-paid jobs waiting for you in an industry that is doing everything it can to improve its environmental and social performance,” he said.
Reid said reaching out to students was a priority.
“We need to start with vocational education in TAFE and these kinds of systems to ensure that the skills and qualifications that people are leaving institutions match what industry needs,” Reid said.
Mount Isa students learn about prospecting. (Provided by: QRC)
“The shortage of mining engineers, for example, has been a long-term problem, and it’s only getting worse. So anything we can do to attract people to these types of STEM-based roles is also critical.”
Fundamental creativity and innovation
Glencore Australia’s Mount Isa mine is Australia’s second largest copper producer, next to BHP’s Olympic Dam mine in South Australia.
Currently, about 250 jobs are advertised that are difficult to fill.
Dubbed the “new oil”, demand for copper has reached unprecedented highs, but global reserves are running out.
Creative and innovative workers are needed in an industry undergoing change, industry leaders say. (AAP: Dan Peled)
Glencore Australia’s chief operating officer for copper assets, Matt O’Neill, said while it was important to attract new people to the industry, the focus should be on encouraging innovation and creative thinking in a pivoting sector.
“Attracting people to our industry is not something we do very well,” O’Neill told the ABC in May.
“And if we see this trend continue, we’re going to lack the skills necessary to be able to do these things well.
“The deposits we need to start talking about are going to be more difficult and the reason we’re not working on them today is because we need to be smarter and better at what we do.”
Reid said the industry needed to work with government, unions and education providers to help fill the 24,000 positions needed to sustain the industry’s future.
“By reaching out to students, focusing on STEM education and embracing creative solutions, we will solve this once-in-a-generation skills crisis,” he said.
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