Skills shortages have long been considered one of the biggest issues hampering new and existing mining projects.

During the boom years of the mid to late 2000s, companies could have the right project and the funding to get it off the ground, but a lack of competent workers often hindered progress.

Job losses set off by the global financial crisis provided some relief, but as the economy recovers and new projects are announced, skills shortages are set to return to the forefront.

With that in mind, Prime Minister Kevin Rudd announced the establishment of the National Resources Sector Taskforce during a trip to the Gorgon liquefied natural gas project on Barrow Island in September last year.

Gorgon will require about 10,000 jobs at its peak and the taskforce will aim to secure up to 70,000 skilled workers.

The taskforce is chaired by Parliamentary Secretary for Western and Northern Australia, Gary Gray, with representatives from various government departments and industry groups making up the membership.

The group met for the first time in Canberra in November to examine projects expected to come online in the next five years, the skills and education required to meet the staffing needs of those projects, and current industry initiatives to address labour and skill requirements.

Last Monday, the taskforce released the Resourcing the Future discussion paper, calling for submissions from interested parties, including resources companies, construction and engineering companies, education and training providers, unions, and recruitment organisations.

The taskforce is required to report to government by mid-2010 with a comprehensive plan to address the skilled labour needs of the resources sector.

In October 2009, the Australian Bureau of Agricultural and Resource Economics identified 74 advanced major resources projects in the country with a value of $A112.5 billion, and 267 less advanced projects with a value of $238.3 billion.

According to the Australian Bureau of Statistics, the resources industry directly employs 165,000 people, or just 1.5% of Australia’s workforce, but a Skills DMC report from last year found the industry directly and indirectly employs around 530,000.

“Although it employs relatively few people, the sector has been a catalyst for downstream job growth, particularly in the resource-rich states of Queensland, Western Australia, South Australia and New South Wales,” the Resourcing the Future paper said.

WA will be the biggest challenge for the taskforce.

“While Western Australia has only ten per cent of the Australian population, it has more than

80 per cent of advanced projects,” the discussion paper said.

As well as the Gorgon project, the taskforce named the Pluto, Wheatstone and North West Shelf LNG projects, the Boddington gold mine, Sino Iron project, Brockman 4, Oakajee rail and port infrastructure, Worsley growth project, and BHP Billiton’s iron ore expansion and Pyrenees oil project as the largest projects, each with a value of between $2 billion and $43 billion.

“This indicates that immediate attention needs to be given to the workforce needs of Western Australia,” the taskforce said in the discussion paper.

If all “likely to proceed” projects go ahead, the taskforce estimates that construction labour demand will peak in the second half of 2012.

There are also a number of large coal projects in Queensland currently in the pipeline.

The taskforce believes Australia faces significant competition for skilled workers from overseas projects, as well as non-resources domestic projects.

The job for the taskforce now is to determine the best way to increase the supply of skilled labour available to projects.

The group will look at the best way to encourage local people to participate as well as enticing skilled and unskilled people to move from other locations, including areas of high unemployment.

Pros and cons of fly-in, fly-out rosters, including training, retention, economic and social issues, will be considered.

Bringing skilled people in from overseas is another option to be examined, as well as improving retention of existing employees.

Ways of targeting under-represented groups – women and indigenous Australians – is also a focus.

“Productivity growth in the resources sector will be driven by technology and investment in human capital,” the report said.

“Wise investment in education and training will see a transformed resources sector with the capacity to draw on deep reserves of talent to meet projects of the future.”

The taskforce will consult with industry groups this month and is required to report to Employment Participation Minister Mark Arbib and Resources and Energy Minister Martin Ferguson by mid-year.

Submissions can be emailed to nrset.submissions@deewr.gov.au by April 9.