MARKETS

Fears for an endangered species

TOUGH times in the mining industry could spell disaster for a species increasingly coming under threat. <b>Supply Side by <i>Australia’s Mining Monthly</i> editor Noel Dyson</b>

Staff Reporter
Fears for an endangered species

Three surveys released this month show things are getting extremely dire for that rare and often unfairly maligned species the Cashedupus Boganus. However, there may be some good news within those surveys’ pages.

To those unaware of this species, it is quite closely related to the common, or garden variety boganus, which was renowned for its black desert boots, black t-shirts – usually with a packet of Winfield Blues rolled up under the left sleeve – flannel shirts and distinctive mullet plumage.

The Cashedupus Boganuses are often distinguished from their more common cousins by their high-vis pelts and their elaborate nests. These nests are usually of the four to five-bedroom variety with flat-screen TVs so large they have to sit across the corner of a room, an outdoor “kitchen” with about an acre of stainless steel and garages with at least one V8 Ford or Holden and some form of utility. There is often a jet ski somewhere there too.

Populations of these humble beasts have increased dramatically over the past decade but herd numbers seem to be in decline. But for how long seems to be the question.

The tale is told in the reports from various surveys into mining employment.

The latest Manpower Employment Outlook Survey shows hiring in the mining and construction sector will remain flat in the fourth quarter.

But things are not all bad.

Employers in the sector reported a net employment outlook of plus-7%, down one percentage point from last quarter but up 12 percentage points from this time last year.

The survey found 17% of employers planned to increase their hiring, 13% planned to decrease and 69% would make no changes to their hiring plans.

ManpowerGroup Australia and New Zealand managing director Lincoln Crawley said activity was patchy between different regions in the mining and construction sector.

“Obviously the markets are markedly different across different regions, particularly between the east and west coast of Australia,” he said.

“The fall in certain commodity prices, namely iron ore, is impacting sentiment in Western Australia.

“There is still an air of caution from employers in resources on the east coast, however, we have seen a marked increase in sentiment.

“We are now noticing organisations beginning to plan for growth and activity in 2015.

“In the New Year we expect activity in oil, gas and coal industries. Tenements and projects are in the approval phase as we move towards a more positive market we expect work to ramp up.”

Drilling down into the figures, things are not so bright in WA, one of the Cashedupus Boganus’ natural habitats. The drought may linger there a little longer and herd numbers may continue to be thinned.

“Many organisations are focusing on ‘right sizing’ their businesses to target expansion,” Crawley said.

Right sizing is one of the terms for herd size management.

“Paramount to this is restructuring, not to cut costs but to ensure companies have the right people in the right roles to meet business objectives,” Crawley said.

“This process can mean stalled hiring plans in the short-term but we ultimately see it as a positive step towards sustainable growth.”

So there may be some fatter seasons coming again, hence the terms to manage the herd sizes to get through the lean times.

But how verdant are the grasses of the Cashedupus Boganus’ pastures?

In one of their main hunting grounds, WA, food is less available than it used to be but better seasons seem to be near at hand.

WA is still home to Australia’s highest paid mining roles, despite an 8.2% decline over the 12 months to June 2014, according to employment marketplace Seek’s salary data.

Looking on a state by state basis, the richest fodder for the Cashedupus Boganus is in Queensland, another of its key habitats, where the average mining salary is $124,639.

However, that has been cut back 8% over the past year.

In WA the fodder is the next richest at $122,179 – after a 10% fall over the past year.

Of course it is not just the poor Cashedupus Boganus that is suffering.

The Australasian Institute of Mining and Metallurgy shows that Australia’s mineral industry professionals, including geologists and mining engineers are experience double the average national unemployment rate.

Back in the late 1990s, when the Reserve Bank of Australia decided to flog off Australia’s gold reserves, mining professionals suffered a similar fate.

In those days if you wanted to talk to one of the world’s top geologists you simply hailed a cab on St Georges Terrace in Perth.

It looks like the taxi licence market might tighten up again.

AusIMM president Geoff Sharrock said the research showed the depth of the downturn in the minerals sector.

However, unlike the Cashedupus Boganuses the news for mining professionals does not seem as positive.

Sharrock said the AusIMM hoped its survey results would be used to inform government and industry policy.

“The need for long-term thinking is clear,” he said.

“There must be a focus on supporting and developing minerals professionals to ensure the future of the minerals sector and Australia’s economic wellbeing.”

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions

editions

Mining Magazine Intelligence Exploration Report 2023 (feat. Opaxe data)

A comprehensive review of current exploration rates, trending exploration technologies, a ranking of top drill intercepts and a catalogue of 2022 Initial Resource Estimates and recent discovery successes.