Australian Mining Projects Overview 2011

With 61,500 new operational jobs expected in the mining sector alone by 2015, as well as tens of thousands more in the construction stages (according to estimates released in the National Resources Sector Employment Taskforce report in July 2010), the industry is facing a skills shortage that far exceeds that experienced in the five years preceding 2008.

There are currently 75 advanced projects listed by the Australian Bureau of Agriculture and Resources Economics (ABARE).  Of the 75, 67 are already under construction (with 30 of these still underway in 2011 and 2012) and eight are still to start, but will do so within the next three years.  41 projects are in the energy sector (predominantly coal seam gas/liquefied natural gas), 28 are in mining (predominantly coal and iron ore) and six in mineral processing.

The 286 less advanced projects identified by ABARE cite an operational commencement date, but not a construction start date – but most are slated to commence production in the period 2012 to 2020.

Currently there are only a few projects underway in states like New South Wales, Northern Territory and South Australia, but this looks to dramatically change going forward.  The locations where some projects are currently drawing labour from – or anticipate drawing labour from – may change once increased opportunities present in home locations for employees and candidates.

National Resource Skills Taskforce analysis of 2010 shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople, and machinery operators and drivers.
• Employment growth in mining operations is expected to be 4.9 per cent per annum over the next five years, creating around 61,500 new jobs by 2015 due to increased production, driven by demand from Asia.  There will be strong demand for professionals in addition to the skills in point one.
• In addition, further vacancies will occur in mining and gas operations as around 10 per cent of employees leave the sector each year through retirement or transition to other sectors.  Replacement demand in mining operations could be around 16,000 persons per annum, including approximately 3,000 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience.

At the time of release, the report claimed there was a significant number of unemployed tradespeople.  However, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015.

Each year, we provide an update on major mining, oil and gas projects which are already under construction, or are considered to have a strong likelihood of being approved.  The list is nowhere near exhaustive, but does provide those working in the industry, or considering working in the industry, with an insight into career opportunities - where they are located and timeframes.

What is interesting to note since our update in 2010, is the number of projects that have not met their original cited construction commencement timeframes.  In some cases, projects have been delayed by 12 to 24 months.  Recently Woodside attracted criticism for the delay on its Pluto Project in the north west of Western Australia, but the number of projects identified as part of our review that have fallen well short of their original specified dates, seem to indicate this is a consistent theme.

Disappointingly, six projects The Resource Channel identified as ‘major’ in our last review are not included in this review simply because of the lack of recent information available to the public and in particular the job market.  If we can level criticism at the industry, it is entirely in this space – how can we lament the looming skills shortage when we make it so difficult of those working in the industry or those looking to enter to source the information they need?

Unless otherwise stated, all dollar figures in the blogs are in Australian dollars.  All information has been attained and extensively researched from current public sources and is true and correct to our best knowledge at this time

Space: Mining's Final Frontier

As the mining industry continues to expand it is always looking to the next frontier. At the moment, the new hot ticket is Mongolia and the Central Asian Republics (CARs) such as Kazakhstan, Uzbekistan, Tajikistan and even Afghanistan, which is already starting to draw the mining industry across to the war torn nation's completely untapped potential.

Discussions about nuclear power and the debate about whether to export or enrich uranium here has hotted up. Exploded, even. Nuclear energy makes people nervous, and rightly so. It can potentially be very dangerous. But it could also have some benefits for Australia. So where can we go next, where will mining end up?

What about mining in outer space. From one end of the earth to other, you can already find miners hard at work. Even far out at sea, you'll find drillers working away both above and below the surface of the water, so expanding the horizons into space is simply a natural progression. And with new minerals ready to be found floating in its outer reaches; minerals with unknown potential; it is definitely an exciting time to be in mining. Just recently scientists discovered the never before seen mineral Wassonite.

A number of US and Indian firms are looking at potentially mining on the moon, with MIT reporting that there is set to be a race to secure Helium-3 from the satellite. There is also set to be a run to mine asteroids and even work on comets. One can only imagine the strict site safety laws that will have to be in place while working on a relatively small rock hurtling through space at thousands of kilometres per hour.

Movies and television have already portrayed what mining in space will be like, and it is fairly varied to say the least. Avatar showing miners in a fairly horrible light to Aliens showing them being decimated, the future does not look too bright. Fortunately, it's unlikely to be like either of these. One thing is certain; mining in space would make FIFO more interesting.

McDonalds imports workers into WA to fill gaps caused by mining

As the skills shortage becomes increasingly dire and jobs in the mining and resource sectors offering huge financial incentives for employees, a Queensland McDonald’s has been forced to recruit staff from capital cities. Burger flippers are in short supply in Mount Isa and the fast-food giant has resorted to importing workers from Brisbane, New limited reports. Teenagers usually make up a large portion of staff at McDonald’s outlets, but in the Mount Isa region, the high-paying jobs in the mines are far more attractive.

The wages, combined with flexible rosters and graduate and career advancement programs have lured many away from the traditional retail and fast-food roles and into the mines. Small businesses are also struggling to compete with the offers mining companies are making. Like the mining industry, which incorporates travel into many positions, especially with fly-in fly-out (FIFO) roles, the Mount Isa McDonald’s has become the first to offer covering travel costs for those willing to take a full time job.

The full-time role at the fast-food chain would pay $718 per week, and employees who stay four months are entitled to a free return bus trip to Brisbane, while those who stay six months can have a return plane ride covered. Manager Joy Mendoza told News Limited the company struggled to fill vacancies locally and decided to advertise the position in Brisbane as an opportunity to see the Outback.

"We're really understaffed and we wanted to attract people," she said. "I was quite overwhelmed with the response. “They're actually interested in coming up to Mount Isa and some are saying they just want to give it a try."

Mount Isa Chamber of Commerce President Brett Peterson said young people can double the amount they would be paid in retail or food employment with a role in the mines. The high wages in mining towns contribute to the high cost of living, with Moranbah in the Bowen Basin named the most expensive place to live in the state. At a mining camp near Moranbah, a kitchen hand can earn up to $85 000 and maintenance and office employees can make double what they would in a similar role outside the mining industry.

30,000 new jobs on 38 Queensland developments

More than 30,000 new jobs are anticipated over the next six years to support 38 projects slated for development in the Bowen Basin in Queensland. The 38 new developments consist of 23 new coal mines and 12 coal seam gas projects as well as three mineral projects, in total generating more than five billion tonnes of resources over the next two decades. Whilst 10,000 jobs have been directly identified with the mining industry, the Mackay Area Industry Network (MAIN) anticipates an additional two jobs for every one created.

Coal projects include BMA’s Caval Ridge coal mine, QCoal’s Byerwen coal mine, Macarthur Coal’s Codrilla mine and Hancock Prospecting’s Alpha Coal mine.  Coal seam gas projects include Australia Pacific LNG and Gladstone LNG.

MAIN has rightly identified the need to urgently address infrastructure and skills issues in regional areas of Queensland. The Resource Channel is currently running a poll on whether or not Fly In, Fly Out from Brisbane to Queensland sites is supported as an alternative to residential arrangements