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EMERGING SKILLS SUMMIT 2020 AND BEYOND A Critical National Challenge. “ SUSTAINABILITY OF THE MINERALS SECTOR IN AUSTRALIA, SKILLS NEEDS IN A GLOBAL INDUSTRY ”. Don Larkin, CEO, The AusIMM Tuesday 22 November 2005, Sydney NSW.

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emerging skills summit 2020 and beyond a critical national challenge

EMERGING SKILLS SUMMIT 2020 AND BEYONDA Critical National Challenge

“SUSTAINABILITY OF THE MINERALS SECTOR IN AUSTRALIA, SKILLS NEEDS IN A GLOBAL INDUSTRY”

Don Larkin, CEO, The AusIMM

Tuesday 22 November 2005, Sydney NSW

discipline areas of national importance will be protected where they are of continuing relevance

“DISCIPLINE AREAS OF NATIONAL IMPORTANCE WILL BE PROTECTED WHERE THEY ARE OF CONTINUING RELEVANCE”

Draft National Strategic Principles for Higher Education – September 2006

Department of Education, Science and Training

today s presentation
TODAY’S PRESENTATION
  • Profile of the Minerals Sector – National Importance
  • Human Capital Availability and Changing Structure of Workforce
  • The Minerals Sector and Human Capital
  • Implications
  • Suggestions to Address Skills Shortages
profile of the minerals sector

PROFILE OF THE MINERALS SECTOR

Global Industry – Global Options

Cyclical Industry – Currently Buoyant

Centralisation of Ownership with World Wide Commodity Groups

Emerging Sources of Supply – Increasing Competition

Increasing Demand from China, India, Asia

Corporate and Social Responsibility – High on the Agenda

profile of the minerals sector in australia

PROFILE OF THE MINERALS SECTOR IN AUSTRALIA

2003-4 – 8% of GDP - $500 Billion directly to Australia’s wealth over the past 20 years

Exports - $42 Billion ($67 Billion 2004/5) representing 35% (37% 2004/5) of (Australia’s total merchandise exports and 28% of total exports of goods and services

Exports of mining technology, equipment and services of approx. $2 Billion (60% of the mining software used in operations around the world)

24% of private new capital expenditure in Australia

Total government revenue payments of $4.6 billion

Significant infrastructure development – since 1967 – built 26 towns, 17 ports, 26 airfields and over 2000 km of railway line. Source: MCA Annual Report 2004

global significance of the australian minerals sector

GLOBAL SIGNIFICANCE OF THE AUSTRALIAN MINERALS SECTOR

Largest exporter of iron ore and black coal

Largest producer of bauxite, alumina, diamonds (by volume), ilmenite, rutile and zircon

Fifth largest producer of aluminium and coal

Second largest exporter of uranium with the world’s largest resources of low cost uranium

Second largest producer of zinc ore

Third largest producer of iron ore, nickel andgold.

Source: MCA Annual Report 2004

more profile on australian minerals sector
MORE PROFILE ON AUSTRALIAN MINERALS SECTOR
  • High Technology/Capital Costs – Low Labour
  • Current Contribution to GDP per Employee is $359,000 compared with average all Industries approx. $70,000.
  • Homogeneous Culture with Low Level of Diversity – Causes Retention Problems
  • Breakthroughs Imperative to find Next Generation’s Resources, Increasing Value (Recovery) of Existing Resources whilst ensuring Economic Efficiency, Protection of Environment and Social Development.
  • Where will the Investment Come From?
human capital availability
HUMAN CAPITAL AVAILABILITY
  • Science and maths teaching in primary and secondary is decreasing (geoscience) and quality of teaching is declining.
  • Students are attracted to “easier” options
  • Attractiveness of career in remote or regional Australia is low
  • Greater awareness of impacts of cyclicity.
  • “Demographic Destiny” – ageing population – sellers market.
slide9
THE CHANGING STRUCTURE OF AGE

Implications of an Ageing Australia, Productivity Commission April 2005

the age chasm drake white paper volume 2 no 5
The Age Chasm – Drake White Paper Volume 2, No. 5

Successfully Managing Age in your Organisation

As the population ages a fault line is emerging that separates the past and future landscapes of the Australian workforce. For the foreseeable future, growth in the supply of labour will be firmly concentrated in the group aged 45 years and over.

For every new young person entering the labour market today, there are seven people aged 45 years and over available. By 2010 this will create permanent shortages in the Australian Labour Market forcing organisationsto dramatically re-think their employment practices.

new entrants to the labour market diminishing access to labour
New entrants to the labour marketDiminishing Access to Labour

1980’s & 1990’s

2020’s and beyond

Access Economics

slide14
Need to engage more younger workers.

Potential to maintain engagementof older workers

CURRENT

PROJECTED

Source: ABS, 2001

key risks drake
Key Risks (Drake)
  • Increased competition for labour
  • Expansion of skills shortages
  • Increased competition for younger people
  • Increasing mismatch between the available labour pool and the competencies and characteristics required
  • Loss of operational knowledge, due to low retention rates and exit to retirement
  • Loss of executive knowledge, due to exit to retirement
  • Impaired productivity consequences
  • Falling or stagnating growth
  • A shifting landscape of health and well being
  • Limited capacity amongst the organisations managers and leaders to assess and respond to the changed environment
finally
FINALLY

From The AusIMM’s point of view

Seize the Opportunity in Tertiary Education by Focusing on Discipline Areas of National Importance as Outlined in the National Strategic Principles for Higher Education to Ensure the Sustainability of the Minerals Sector in Australia by Backing a Winner and this does Require Some Interventions.

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