Who will do the work?
Demand for critical minerals is soaring, but enrollment in mining studies is declining and young people are hesitant to join the sector. How can the industry attract talent and shift perceptions?
A skyrocketing demand for minerals necessary to replace fossil fuels with clean energy technology – versus a plummeting interest in mining studies. Observers point out that this mismatch could threaten our ability to reach the net-zero goals stated by the UN, most nations, and many companies.
“Mining couldn’t be more relevant to the challenges we are facing and there is a strong connection between mining and a more sustainable future for the planet,” says Carly Leonida, Founder and Director of online publication The Intelligent Miner. “Mining underpins 50 percent of the global economy and neither tech nor agriculture could exist without mining. In fact, very few industries could exist without mining.”
A 2023 study from management consultancy McKinsey found that 71 percent of mining executives feel the talent shortage is already holding them back from delivering on production targets and strategic objectives. 86 percent of the respondents said that it’s harder to recruit and retain talent versus only two years ago, particularly in mine planning, process engineering and digital fields.
Metals crucial for sustainable future
In another global survey by McKinsey, 70 percent of the 15- to 30-year-old respondents said that they “definitely wouldn’t” or “probably wouldn’t” work in mining. These numbers correlate with low enrollment and graduation figures for mining courses across the globe.
And the negative trend is expected to continue, says Leonida. “Mining is not currently an aspirational industry for young technical talent to join. There has been around a 63 percent drop in mining engineering enrollment in Australia since 2014, and a 39 percent drop in mining graduations in the United States since 2016.”
The lack of appeal is partly based on deeply rooted misconceptions and attitudes that go back to the days when mining was a dirty and dangerous business. “The industry suffers from an image problem, partly because it is too removed from most people’s lives for reality to close this gap,” Leonida believes. “Even though consumers rely on metals for their lifestyle, nobody buys metal from a mining company to build their own car or iPhone. The distance between producer and user has created a big misunderstanding of what the industry does and how it does it.”
The link between mining and the energy transition needs to be explained better too, she adds and the industry needs to show future talent how forward-thinking it is.
“Mining companies are leading the way in autonomous, remote operations that allow people to work on mine sites thousands of miles away. We need to explain how data analytics and AI are used to support exploration and sustainable excavation in order to attract talent that otherwise would go to big tech. On its own, tech is not going to save the world – but mining probably could.”
For those who want to travel and see the world, mining offers great opportunities. “Plus, it pays well,” Leonida adds.
Digitalization, automation and electrification
Further exacerbating the problem of staff shortages is the fact that a generation of seasoned mining staffers are about to retire but there is no new generation coming in. To handle this, a lot of companies are starting to hire based on skills rather than roles, which was traditionally the case, says Leonida. “They [mining companies] are looking outside the industry to adjacent sectors, hiring heavy equipment operators and other specialists from the oil and gas industry, manufacturing and pulp and paper.”
In addition, young people need to realize that today’s mining has less to do with picks and shovels, and more to do with data. “Digitalization, automation and electrification have transformed the industry,” says Leonida. “We need to evolve curriculums to include data sciences, social sciences and environmental and social governance as well. Digitalization is breaking down a lot of the silos in traditional operations and we need an understanding and an ability to work with people in other departments and functions.”
Core disciplines such as engineering and geology and heavy truck operators are still needed however. “At the same time, we need to focus on fostering these traditional disciplines and making sure we have a pipeline of talent coming up through the ranks,” Leonida concludes.
Severe staff shortages
More than half the US mining workforce (around 221,000 people) will retire by 2029. Valuable knowledge will be lost from key disciplines if companies don’t find a way to bridge the generational gap and retain learnings.
Source: Society for Mining, Metallurgy & Exploration
Canada’s mining industry is expected to see a shortage of 80,000 to 120,000 workers by 2030.
Source: Source: Mining Industry Human Resources Council
The mining industry in Australia would need 24,000 new workers by 2027 to uphold new projects. However, the market will likely only provide around 16,500 graduates, according to a 2022 report.
Source: Australian Resources and Energy Employer Association