Train Of Thought: The shape of things to come

The ongoing shift from investment and construction to production and operations in the mining sector isn’t a signal that the mining boom is over. Rather, it’s a sign that the scope of mining work is changing.

This transition is ushering in different risks, changes in the demand for skills and experience, and a greater focus on efficiencies and higher productivity.

But while this transformation is significant, it doesn’t mean a complete break with the past.

Although the value of committed resource and energy projects is predicted to decline rapidly over the next four years as existing projects are completed, 63 projects worth a total of $240 billion remain in the committed investment pipeline, according to the Federal Government’s most recent Resources and Energy Major Projects report.

Skill shortages have eased for the time being; but they haven’t stopped. The Federal Government’s 2013 Industry Outlook employment report for mining notes a current shortage of certain positions such as mining mangers and mining engineers.

“… companies must also ensure that contractors’ employees and subcontractors are qualified, have the correct licences, and are supervised, trained and competent to carry out their roles…”

Jobs growth has slowed; it hasn’t ceased permanently. Over the next five years, the Federal Government’s Australian Workforce and Productivity Agency predicts jobs in mining operations are likely to grow 7.4 per cent under the base case growth scenario and in oil and gas operations 57 per cent under the same scenario. Resources project construction is likely to peak in 2014 and then decline under the low growth scenario.

These changes to the mining landscape pose many challenges for a number of stakeholders in the sector. But one thing is clear: mining employers must stay on top of their scope of work as it plays a crucial role in maintaining viability and boosting productivity.

This is particularly important when it comes to identifying current and future risks, and pinpointing relevant technology and engaging appropriately skilled and experienced workers to manage these risks.

It’s also important in accurately verifying required qualifications, skills and experience, and developing and implementing relevant education and training. All of which are vital in contributing to safe and sustainable businesses.

It’s no secret that mining is a dangerous industry – and it doesn’t need to be made more dangerous by companies and individuals who fail to grasp the extent of the work and resources required.

Safe Work Australia figures show that in 2013, nine workers had died in mining as at 17 December. Also, there were 3,365 successful workers’ compensation claims for serious injury or illness, according to its preliminary data for 2011–12.

On top of this, a recent Queensland Government report said contractors on mine sites in Queensland were over represented in the state’s fatality figures. As the report noted, contractors were often engaged to perform non-standard or specialist work, requiring higher degrees of risk management, but it shouldn’t be the sole responsibility of contractors to manage these risks.

When selecting contractors, mining companies should consider the scope of work and inquire into contractors’ work health and safety (WHS) objectives, plans, implementation, monitoring and continuous improvement to ensure contractors are capable of managing project risks.

In doing so, companies must also ensure that contractors’ employees and subcontractors are qualified, have the correct licences, and are supervised, trained and competent to carry out their roles; and that contractors also have contractor management plans in place.

Similar inquiries should be made when engaging employees: Are their licences and qualifications valid and do they meet industry standards? Do their skills and experience match the scope of the job? How committed are they to WHS?

Also, never expect new workers to ‘hit the ground running’. Don’t assume because they carry a general WHS induction card, such as the ‘white card’, they will automatically know how to operate safely on all mine sites.

In addition to general induction, specific site inductions are crucial so workers become aware of how particular mine sites operate. This applies to all workers, regardless of whether they are new, qualified, experienced or have transferred between mine sites in the same organisation.

Companies must also ensure mine workers’ knowledge and skills are kept up to date with ongoing training, education, assessment and review.

The shift in the mining boom is presenting new challenges and reshaping old problems. But some things never change: the ability to effectively identify and articulate who you are and what you do remains a crucial factor in creating a safe and sustainable mining workforce and business.

Adam Baldock 

CEO and Managing Director of the National Safety Council of Australia (NSCA)

Adam commenced the role of CEO of the National Safety Council of Australia (NSCA) in 2011 after five years in senior management positions across the organisation. Prior to this he worked across the insurance, workers compensation and rehabilitation/OHS industries. Adam’s experience is complemented by a Bachelor of Health Science (OT), an MBA and he is a graduate of the Australian Institute of Company Directors (GAICD).