Rising to the Challenge

Building professional staff capability in the Australian minerals industry for the new century

Executive summary

The Australasian Institute of Mining and Metallurgy commissioned World Competitive Practices Pty Ltd to address the question:

Are we confident that the minerals industry has the professional staff capability to appropriately position it to meet the demands of tomorrow?

This required identifying the challenges facing the industry and assessing the likely availability of professional staff with the required capability to address those challenges. A mix of research, interview and survey techniques was employed in the search for answers to these questions.

In relation to the first question—future challenges—the industry must quickly learn to cope with major changes if it is to avoid a continuing slide in economic performance and community acceptance. The minerals industry has undertaken significant economic reform over the last decade or so as it has strived to remain competitive. It has the capacity to continue to do this.

But this will not be enough to assure further survival, let alone success. Community perceptions of the industry have declined. The industry’s capacity to attract talented people is limited by that and other factors such as the inherent remoteness of its operations. Pressures such as the environment and land access will, if anything, increase in importance over the next five years.

The industry is not presently well placed to deal with these issues—nor is it confident about its ability to do so in the future. Operational technical skills in the industry remain strong, although competitive pressures have denuded research and development effort and skills within the industry. Collectively, the industry has low capacity to change perceptions of it quickly. Companies are struggling with rationalisation pressures. Few have positioned themselves yet to identify clearly the non-technical competencies they need for future success. Even fewer have begun the task of ensuring adequate coverage of competencies in their organisations. Much of this goes on with only limited contact with the tertiary education sector—the main supplier of skills. What to do? This depends on which part of the industry one is talking about.

There is an urgent need for the industry to work together to improve its image and perhaps build new employment options for the people it needs. The Institute can take a lead role on this.
Companies must look to their organisational systems and structures to identify and attract the people they need, and to motivate, develop and utilise their professional staff.
The Institute must find ways to ensure that the universities and other education providers are better informed of industry challenges and needs.
Industry professionals, on an ongoing basis, need to review and develop their competencies.

Mining has a proud tradition in Australia. It has spawned many of Australia’s most celebrated business leaders—leaders who have had a capacity to map a future for their companies and the industry itself. Current industry leaders must do this again if the industry is to achieve sustainable success.

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