In the dynamic landscape of the mining industry, one of the most pressing challenges faced by companies today is the gap between the skills required and the skills available in the workforce. This issue not only affects operational efficiency but also poses long-term risks to sustainability and growth within the sector.
The mining industry is evolving rapidly, driven by technological advancements and shifts in global demand. Our CEO, Rob Tyson, recently shared his thoughts in the whitepaper from Shell Lubricant Solutions, and he highlights the industry’s need for specialised skills is outpacing the availability of qualified professionals. This gap is exacerbated by several factors:
Understanding the Skills Shortage
1. Technological Advancements: The integration of automation, data analytics, and robotics in mining operations requires a workforce skilled in these technologies. However, the pace of technological adoption often outstrips the rate at which workers can be trained or reskilled.
2. Demographic Trends: The aging workforce in many mining regions contributes to a shrinking talent pool. As experienced professionals retire, there is a significant loss of institutional knowledge and expertise that is challenging to replace.
3. Educational and Perception Challenges: Historically, the mining industry has struggled to attract younger generations due to perceptions of being environmentally harmful or lacking in innovation. This perception gap affects recruitment efforts and limits the influx of new talent into the sector.
Impact on Industry Dynamics
The skills shortage and gap have far-reaching implications across the mining value chain:
– Operational Delays and Costs: Companies may face delays in project timelines and increased operational costs when critical positions remain unfilled or filled with underqualified personnel.
– Innovation and Sustainability: Without a skilled workforce, mining companies may struggle to innovate and implement sustainable practices effectively, impacting their competitiveness in a global market increasingly focused on environmental and social governance (ESG) standards.
Addressing the Challenge
So, how can mining address this issue? Rob shared his thoughts on the obstacles ahead and the steps miners can take to attract new talent to the sector, in a recent Shell article. Below are some direct thoughts from the article.
The main challenge is that there are not enough metals and minerals being mined in the world for the foreseeable future, especially with governments wanting to electrify many sectors. That is exacerbated by the fact that there are not enough people in the mining sector to fulfill companies’ growth predictions or the pipeline of projects they want to get started with to meet the growing global demand for materials needed for human consumption and future growth.
Finding the right people for senior and technical roles as like “finding a needle in a haystack” and we believe it is going to get even more difficult.
For example, look at mine engineering candidates. They are becoming more difficult to find because there are less people entering universities studying mine engineering and other mining-related courses. Some universities are cutting mine engineering courses from their curriculum. Therefore, there are fewer candidates to meet the sector’s needs and demands in this particular area of specialisation.
The ongoing digitalisation of mining is adding to the challenge, with a growing transition to data-centric, autonomous, and remote operations changing the skills profile needed for mining.
Anything in the mining sector takes years to adopt, which means miners are working with the technology that is in front of them. It depends on the size of the company. Smaller companies are more likely to outsource these tasks to specialist providers and it becomes more about finding the right partner. Bigger companies, however, could potentially bring those skills in-house to be more cost-effective.
How miners plan to use each technology makes a huge difference as well. Looking at drones, if you need the technology for a few weeks, it makes less sense to hire a specialist on contract if it’s not used regularly. These are the factors that are shaping decision-making around recruitment.
The importance of ESG for mining recruitment
Increasing the number of people in mining with the right skills for the future will not be a swift journey or have a quick fix. But one shorter-term solution miners can work on to improve recruitment and retention is to have a greater focus on their ESG efforts.
It’s clear that companies need to be talking about – and then acting on – ESG, especially if they want to attract investors as investors are seeking responsible companies to invest in. There’s a limited pool of money coming into the mining sector at present, and that investment will go to the companies that have better ESG programs and initiatives.
ESG will also be important for attracting the younger generation of workers and recruiting them into the sector. In fact, almost half (46%) of adults want the company they work for to demonstrate a commitment to ESG.
People think mining is a dirty and unattractive sector. But, if you are on top of your ESG goals – doing the right thing around the environment, looking after local communities, building schools and hospitals, and providing education as mining companies generally do within the communities they operate in – it is going to be more attractive to a workforce that is far more conscious of these issues.
Getting ESG right seems to be a number-one focus for mining businesses right now, and it is good that more are speaking about it. But that is just the first step. You must put your ambitions into practice.
Changing Perceptions
The branding of mining has a role to play in the current skills shortage because people often don’t know what mining is. They do not realise that everything in this world must either be grown or mined – and we will need a lot more mines to support decarbonisation.
There is this perception that mining is a dirty industry – something we need to wind down, rather than accelerate. We need governments to take the lead on building awareness among the public and making the link between mining and sustainability clear to all.
It is essential for us to focus on education at the school level to build this understanding. That will then help to change the current image of mining – it’s not just about going into an underground mine or driving a truck. There are other roles and skills that you can transfer into mining such as AI, technology, supply chains, finance, and marketing.
We need to educate people that mining is essential for our everyday lives and without mining we wouldn’t have any of our luxuries or a roof over our heads. Our modern-day life depends on mined materials in a number of ways, from the cars we drive (lead, zinc), to the houses we live in (steel, copper, aluminium), to the roads we drive on (limestone, bitumen, gravel), to the phones we use (rare earth elements, silicon). At Mining International, we aim to educate and change perceptions of the mining industry through our regular content and our Dig Deep The Mining Podcast which educates the wider community.
Collaborative Efforts
The focus on education demonstrates that miners cannot change the image of the sector by themselves. They will need to work with institutions and governments around the world to clarify to the public exactly how important mining is to society.
Changing people’s perceptions of mining and making it a more attractive proposition to talent has an important role to play in addressing the sector’s skill shortage. But how can miners achieve this?
One important step is to emphasise the unique benefits of working in the sector. The remote nature of the work means people will likely live in a mining town – and there are many benefits to being there. We should be promoting everything that is positive.
Another step Rob highlights during the article is to show that there is more to mining than digging up materials.
The sector has more to offer in terms of tech-based roles – especially as digitalisation continues. We should look outside of mining for new talent. There are jobs with transferable skills. Again, this comes down to changing the image of mining so we can attract those people from other areas. Changing the branding of mining is vital.
Conclusion
In conclusion, while the skills shortage and skills gap present formidable challenges for the mining industry, they also represent opportunities for innovation and strategic investment in human capital. By prioritising workforce development, focusing on ESG efforts, and fostering a supportive environment for continuous learning and adaptation, mining companies can position themselves for long-term success in a rapidly evolving global landscape.
For further insights into the mining industry, don’t forget to follow us on LinkedIn for weekly updates, sign up to our quarterly newsletter and stay tuned to Dig Deep The Mining Podcast for twice weekly live interviews with mining professionals and leading figures in the mining industry.
For more information on how Mining International can support your human capital requirements and drive your business forward, contact us today to learn more about our services and how we can help you overcome the skills challenges in the mining industry.
Sources:
Discover the full articles here:
https://www.shell.com/business-customers/lubricants-for-business/perspectives/rob-tyson.html
