Prospecting for talent

Attracting expertise. An approaching skills gap is the most significant threat to the mining industry today, operating as it does in remote locations where talent is hard to attract. But there are innovative new ways to meet the challenge.

The global economic downturn has had an impact on almost every area of life and business. Demand for minerals, however, continues to increase unchecked. But while this points to a promising future for the industry, mining companies are struggling to address a worldwide skills shortage. Action is needed.

Population growth and rising living standards and lifestyle expectations, particularly in developing countries, are among the factors fuelling the rising demand. Companies need to exploit new mineral sources, and this often means exploring more remote or challenging terrain – which may be harder to reach and more technically demanding, and may have little or no existing local workforce. Companies are also under increasing pressure to operate in an environmentally and socially responsible manner, and the increasing complexity of mining technology places additional demands on skills.

Australia is among the countries where this skills gap is most evident. The country has vast uninhabited areas, often desert or semi-desert, while the population is largely focused in coastal urban areas. Deb Jones is manager of research and development at the Mining Industry Skills Centre, a Queensland-based nonprofit organization that works with industry and government to maximize skills for a sustainable workforce. The industry needs to think ahead, she says.

“The challenge,” Jones says, “is to get resource companies to engage in workforce planning based on future needs. New resource projects are starting up, and these will create pressure. There’s no doubt that we will see future skills shortages.”

The biggest shortage, she says, is in skilled tradespeople such as welders, electricians and diesel fitters. “The industry has tended to purchase these skills rather than investing in training, which will contribute to long-term problems. Plus, fewer people have chosen to enrol for mining engineering degrees due to the economic downturn. This will cause a gap in a few years’ time, compounded by the fact that many current professionals will soon reach retirement age.”

Another consideration is the growing trend towards automation. “This industry has a great capacity for further automation,” Jones says. “The education system needs to be prepared for the training requirements this implies. Our research, for example, shows the need for an additional skill level in between electrical tradespeople and electrical engineers.”

Canada has similar issues. It’s a vast country with abundant resources and strong growth projections, and is highly vulnerable to labour shortages. Melanie Sturk is director of attraction, retention and transition at the Mining Industry Human Resources Council (MiHR) in Canada. The mining industry is now looking to nontraditional sources of talent, she says.

“MiHR has identified a number of groups that are underrepresented in mining, yet available in the general labour force,” Sturk says. “They include women, young people, new Canadians, mature workers and aboriginal peoples. Many employers are developing initiatives to tap into new and diverse talent pools.”

The challenge of attracting, retaining and advancing aboriginal people is a growing priority for Canada’s mining industry.

“Mining and minerals is already the largest industrial employer of aboriginal talent in Canada, but unemployment is still high in these communities,” Sturk says. “One of the greatest challenges for activating a new mine is to attract skilled workers to remote areas; 1,300 communities in Canada have a population with more than 20 percent aboriginal makeup. Of these, 1,100 are within 200 kilometres of an operating mine. These communities are also experiencing Canada’s only real baby boom. Half the population is under 24, making the youth of these remote communities the best source for a growing workforce in mining.”

Europe also has its remote areas, and finding the right skills can be just as difficult. The Talvivaara mine in Sotkamo, Finland, is Europe’s largest nickel mine. It’s a new operation; production started in summer 2008. Local skills were in short supply, and Sandvik was behind a training project to turn things around in production drilling. It’s an area with traditionally high unemployment and little other industry.

“There was a significant local skills gap,” says Talvivaara mine manager Arto Suokas. “Many people have left the area to work elsewhere in Finland. Our approach was to train people up and encourage those who had left to return home. The mine now provides jobs for around 280 people, plus 250 contractors.”

A growing problem

The annual survey by global employment services company Manpower indicates that the global talent crunch is set to worsen. Worldwide, 30 percent of employers report trouble filling positions due to a shortage of skills. Increasingly complex work has led to a mismatch between supply and demand. Mining is one of the industries most affected, and it’s a costly problem.

During the low commodity pricing era of the 1980s and 1990s, workers were cut back, universities failed to attract new students, and the average age of the workforce increased. The shortage now includes tradespeople such as electricians and mechanics, whose skills are critical to the success of any project.A recent Standard & Poor’s research report shows that skills shortages in Australia have led to increased capital costs, and some projects have been postponed to ease industry pressure.

The US and Canada face similar problems. Figures from the Society of Mining Engineers in the US show that 58 percent of its members are 50 years old or more, and they are expected to retire at a rate of 4–5 percent a year over the next 10 years. Half of Canada’s mining industry workforce is between the ages of 40 and 54. Of these, 40 percent plan to retire in the next eight years.

To support the operation, an innovative training concept was deployed that Sandvik has developed to support mining and construction companies struggling with the challenge of finding skilled operators. Talvivaara became one of the first companies to test the program in practice. The concept features up-to-the-minute learning tools and a flexible curriculum that balances hands-on experience with theoretical knowledge. The training is delivered through a local adult education centre. A key part of the approach is a new drilling simulator based on the DPi surface top hammer drills operation system.

“Few locals had experience of rock drilling, and the simulator has been a great help,” Suokas says. “It provides a safe learning environment, and trainees can keep practising until they learn the controls by heart and the moves become a reflex. They can learn to handle even the most difficult drilling conditions. It’s also an extremely cost-effective method.”

The method is catching on, Suokas says. Several other Finnish mining operations are also adopting the simulator approach, and many adult education centres now offer training courses for mining. Mika Kotro, training manager for Sandvik’s surface drills, was one of the people behind the training concept. “The training goes much deeper than operation of the drilling rig,” he says. “It helps to give operators a clear picture of the entire mining process and how their role fits in.”

Sandvik plans to increase its focus on training services, ensuring customers receive the support they need to meet the challenges of tomorrow.