resources industry training council (ritc) industry ......western australia’s mining, oil and gas...
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Resources Industry Training Council (RITC)
Industry Workforce Development Plan
Mining Industry
Plan Details:
Plan Title: Resources Industry Training Council (RITC) Industry Workforce
Development Plan – Mining Industry
Issue Details: Issue 1, 2015
Approval Authority: The Chamber of Minerals and Energy of Western Australia
(Inc)/RITC Industry Advisory Board
Submission Authority: The Chamber of Minerals and Energy of Western Australia
(Inc)/Resources Industry Training Council
Approval: Ms Sanchia Tolomei (Chair, RITC Industry Advisory Board)
Approval Authority: Chair of Training Council Board of Management
Signature:
Date:
31 July 2015
Endorsement: Department of Training and Workforce Development
Signature:
Date:
31 July 2015
Page 2 of 76
FOREWORD
The Resources Industry Training Council (RITC) is a state government funded partnership
between the Chamber of Minerals and Energy of Western Australia Inc (CME) and the
Australian Petroleum Production and Exploration Association (APPEA). Members of these peak
organisations account for over 95 per cent of mineral and energy production in Western
Australia and over 98 per cent of national oil and gas production.
The RITC is funded by the Department of Training and Workforce Development (DTWD) to
provide strategic information and advice on vocational education and training and workforce
development needs of industry in Western Australia. For its stakeholders, the RITC aims to
create a forum where industry leaders, skills development organisations, and other key interest
groups and interested enterprises can collaborate to address workforce development issues as
they affect industry in Western Australia.
Industry coverage of the RITC is diverse, comprising mining and mining exploration, oil and gas
exploration, extraction and production, and a group of industries that can best be described as
comprising process manufacturing. This last group is particularly varied in its composition and
includes industries from paint and cement manufacture, to rubber and plastics manufacture, to
metallic and non-metallic mineral production, to laboratory operations.
Over the last decade Western Australia has benefited from unprecedented growth in activity in
the resources sector, with mining being a major contributor to the Australian economy through
export earnings and capital investment. Recent years have seen a moderation of activity in the
mining industry as it continues to transition from construction to production. Faced with high
operating costs and significantly lower commodity prices the sector is now operating in a cost
constrained environment with producers focusing on organisational restructuring and downsizing
operations, managing costs, production efficiencies and production management to remain
globally competitive against increasing competition from overseas suppliers. This rationalization
is seeing major companies turning towards innovation, technological advancements, automation
and data analytics to address these issues across the value chain to maintain a competitive
edge.
Similarly, in light of the recent halving of the price of oil, the oil and gas sector is faced with
added pressure to contain costs and boost productivity as construction winds down and the shift
towards production gathers pace. The oil and gas sector is not a large direct employer.
According to a recent report from Accenture1, the industry employed about 34,200 people
nationally in 2014 and this is expected to decline to around 30,500 by 2020. The industry,
however, is known to have a large employment multiplier. The US Bureau of Economic Analysis2
has estimated the oil and gas extraction sector employment multiplier to be 6.9 – meaning for
every job created in the oil and gas extraction industry, a further 6.9 jobs are created in the wider
economy.
1 Accenture, Ready or Not? Creating a world-leading oil and gas industry in Australia, May 2015
2 http://www.contentfirst.com/multiplier.shtml, accessed 2 August 2015
Page 3 of 76
Despite the current margin constrained environment, industry wide efficiency measures and
softening in employment conditions, the resources industry continues to be a major contributor
to growth in Western Australia with $179.3 billion resource projects under construction or
committed and a further $118.4 billion under consideration in the state.
Domestically, our manufacturing sector continues to experience a period of substantial transition
and change. Government policy has moved away from an industry protectionist stance to one
based on supporting manufacturing industries where Australia has a strong competitive
advantage such as advanced manufacturing. This direction, signaled in the Australian
Government’s recently released Industry Innovation and Competitiveness Agenda, presents
many challenges to the manufacturing sector and will require a concerted effort to ensure the
manufacturing labour force has the necessary skills based and innovative capability to grow and
sustain its competitive advantage.
The need to develop and maintain a productive workforce in the current climate emphasizes a
continued need to focus on workforce planning to ensure the future health and sustainability of
the RITC industries in Western Australia. In a new competitive world driven by innovation,
technological advancements, automation and digital information it is imperative we develop and
access high quality skills and capabilities to meet the demands of our changing industries. The
shift to operations will bring about sustainable jobs for highly skilled workers in the state,
particularly in professional and higher level VET based occupations and it is vital we better tailor
education and training to increase opportunities for a diversified participation of all in
employment and skills development, particularly in regional Western Australia and in turn remain
internationally competitive amidst a growing economy3. To retain its competitive advantage,
workforce planning must be a collaborated effort between education providers, industry and
government with greater alignment between the national scientific research agenda, specifically
the development of science, technology, engineering and mathematics (STEM) skills and areas
of strength in the Australian economy. Recent commonwealth and state reforms support these
aims.
This workforce development plan aims to, in an accessible way, inform those interested in
Western Australia’s mining, oil and gas and process manufacturing industries of the current and
projected activity levels in those industries and highlight factors that will have an impact on
workforce development in future years.
Ms Sanchia Tolomei
Chair of the Resources Industry Training Council Industry Advisory Board
3 CEDA, Australia’s Future Workforce, June 2015
Page 4 of 76
Table of Contents
FOREWORD 2
OVERVIEW 6
Issuing Authority 6
Aim 6
Objectives 6
SECTION 1 EXECUTIVE SUMMARY 7
1.1 Introduction 7
1.2 Industry Sectors and Training Package Coverage 7
1.3 The Mining Sector in 2014/15 8
1.3.1 Greater Flexibility in Skilling 10
1.4 Workforce Development Drivers 10
1.5 Fast Facts 12
1.6 Summary of Issues Table 12
SECTION 2 METHODOLOGY 15
SECTION 3 INDUSTRY PROFILE 16
3.1 Overview of the Mining Industry 16
3.1.1 Mining Industry Analysis 16
3.1.2 Industry Trends 18
3.1.2.1 Exploration 18
3.1.2.2 Cost of Doing Business 20
3.2 Labour and Skill Demand 21
3.2.1 Identify the Workforce Demands 21
3.3 Regional Impact 27
3.3.1 Commuter Workforce 28
3.4 Regulatory Requirements 28
3.5 Gender/Age Participation 29
3.5.1 Gender 29
3.5.2 Workforce Age Profile 31
3.6 Under-represented Groups Participation 31
3.7 Major Challenges and Barriers 34
3.7.1 Productivity 34
3.7.2 Cost of Doing Business 33
3.7.3 Lack of Industry Confidence in the Quality of Vocational Training 34
3.7.4 Relevance of Qualifications and Funding Paradigm Disadvantage 35
3.8 New and Emerging Skills 35
3.9 Occupations in Demand (ANZSCO Code) 36
3.10 Workforce Development Opportunities 43
3.11 VET Training Data by Qualification 43
3.11.1 Pre-Employment 43
3.11.2 Apprenticeships and Traineeships 45
3.11.3 VETiS 48
3.12 Higher Education Pathways 49
3.12.1 Engineering and Geosciences 49
3.12.2 Other Professionals 50
Page 5 of 76
3.13 Mining Industry Issues 50
SECTION 4 INDUSTRY ISSUES AND STRATEGIES 55
SECTION 5 RECOMMENDED PRIORITY ACTION PLAN 62
SECTION 6 PLAN ADMINISTRATION 67
Plan Contact 67
Review Requirements and Issue History 67
Distribution List 67
Consultation for this Issue 67
Communications Plan Summary 67
Validation of this Plan 68
SECTION 7 LIST OF TABLES 69
SECTION 8 GLOSSARY 71
Acronyms 71
SECTION 9 APPENDIX 74
Appendix 1: Key RITC Industry Areas – Projected Economic and Activity Conditions
(Australia) 74
Page 6 of 76
OVERVIEW
Issuing Authority
This plan is issued under contract between the Department of Training and Workforce
Development and the Training Council in accordance with the requirements of Schedule 2 of the
Service Agreement and is maintained by the Training Council.
Aim
The aim of the plan is to outline industry workforce development trends, strategies and actions
that provide high-level advice to the Department to inform future strategic directions and Skilling
WA – A Workforce Development Plan for Western Australia.
Objectives
The objectives of this plan are to provide the Department with:
a A profile of the mining industry in Western Australia;
b High-level state and national industry data and forward projections in regards to:
I. Economic trends and impacts on workforce planning;
II. Current and future labour market modeling consistent with information
provided for the development of the State Priority Occupation List (SPOL);
III. Regional variations that may affect workforce planning;
IV. Training and education including vocational education and training delivered
to school students (formerly VETiS); and
V. Industry critical aspects that may impact on future planning.
c Identification of issues that impact on state workforce planning and that inform and
are linked to Skilling WA strategies.
These objectives are established so that effective development of workforce planning in regions
and at state level can occur.
Page 7 of 76
SECTION 1 EXECUTIVE SUMMARY
1.1 Introduction
The Resources Industry Training Council (RITC) covers a diverse range of industries ranging
from mining and oil and gas production through to plastics and rubber manufacturing and
laboratory operations. While these industries are experiencing different economic fortunes, they
all share similar issues in terms of ensuring access to a suitably skilled workforce which is
necessary for their continued sustainability.
Recent years have seen the mining industry transfer from a decade of immense growth to its
cyclical transition from construction to production. The industry is now entering a period of
rationalisation driven by low commodity prices and relatively high operating costs. This is
manifesting itself in companies focusing on efficiencies through cost control and increasing
productivity. Similarly, the recently halved global price of oil has created a cost constrained
environment for the oil and gas sector as it makes the transition from construction to production
with a key focus on export growth. In the transition, both sectors are seeing changes in
employment levels and the skills mix. At the same time, while parts of the RITC industry
coverage from the more mature basic chemical and chemical product manufacturing sectors,
polymer product and rubber manufacturing sector and non-metallic mineral product
manufacturing sectors are bearing the effects of more normalised economic conditions, some
niche areas of the downstream process manufacturing industry are experiencing growth and
providing innovative solutions in global supply chains.
1.2 Industry Sectors and Training Package Coverage
Resources Industry Training Council (RITC)
Industry Sectors
(a) Mining
(b) Oil and Gas
(c) Downstream Process Manufacturing
Training Packages
(a) MSA07 – Manufacturing
(b) MSL09 – Laboratory Operations
(c) PMA08 – Chemical, Hydrocarbons and Refining
(d) PMB07 – Plastics, Rubber and Cable Making
(e) PMC10 – Manufactured Mineral Products
(f) RII – Resources and Infrastructure
To contextualize the RITC industry and training package coverage in Western Australia,
Appendix 1 provides an overview of the projected economic and activity conditions for key areas
of the RITC industry coverage and outlines the stark contrast between different industry sectors
comprising the RITC industry coverage.
Page 8 of 76
1.3 The Mining Sector in 2014/15
According to the May quarter 2015 ABS employment data, the mining sector employed 96,200
people, well below the peak of over 120,000 recorded in August 2012. This change reflects
cessation of the construction phase of many major projects. It also reflects the impacts of lower
commodity prices as mining companies in particular restructure their operations to find
efficiencies and better control costs. This trend is expected to continue.
Already, the restructuring and rationalising of processes, efficiencies and cost is seeing a
workforce shift to higher skill roles particularly in professional occupations. As companies turn
towards innovation, technology, automation and big data they increasingly rely on changing
worker skills and capabilities to remain internationally competitive. A recent report4 presented a
case study which details findings similar to those in project work completed by RITC in 2012-13
examining the impact of automation on skills in the resources sector. Our changing workforce
and skill needs reflect a changing industry and in order for both to evolve it is vital we have an
education and training system capable of developing a productive workforce and increasing
employment and skills development opportunities for diversified participation. In turn, although
the labour market for critical occupational groups has softened particularly in the second half of
2014-15, a continued focus on workforce planning is needed to ensure a sustainable mining
industry in Western Australia. This planning must address attraction of skilled workers and high
quality skills development, particularly in regional Western Australia.
The Western Australian mining sector has been a key contributor to the Australian economy,
underpinned by a considerable increase in the production of key mineral commodities over the
last twelve months. Iron ore remained the state’s most valuable commodity in 2014 with exports
reaching 697 million tonnes (25 per cent annual increase), accounting for $65 billion or 75 per
cent of total mineral sales that year. In the same year gold accounted for 10 per cent of sales
($8.7 billion) with alumina being third most valuable reaching $4.6 billion, an 11 per cent
increase on the previous year5. Revenue from royalties is estimated to total $4.44 billion in 2014-
15 and is estimated to be $3.67 billion in 2015-16, contributing 14 per cent to total state
revenue6. Likewise, a pipeline of projects in the committed and planned stages of development
remain that will continue to bring economic benefit to Western Australia. While lower commodity
prices are having an impact on future industry investment decisions, as at March 2015, there
was $179 billion worth of resources projects either committed or under construction. Potential
projects and those at an early stage of planning accounted for a further $118 billion as shown in
the following table. A bias towards oil and gas projects is apparent.
4 CEDA, Australia’s Future Workforce, June 2015
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Table 1: Investment in Major Projects (as at March 2015)
Source: Department of Mines and Petroleum
MAJOR PROJECTS CAPEX MILLIONS
Commodity Committed/Under
Construction Planned/Possible
Gold 117 3,430
Iron Ore 13,946 15,658
Nickel 471 3,350
Other Minerals and Infrastructure 12,234 20,277
Sub-Total 26,768 42,715
Crude Oil and Condensate 583 1,114
Gas 2,971 117
LNG 148,403 73,820
Pipelines and Infrastructure 140 635
Other 300
Sub-Total 131,244 61,631
Total Forecast Investment 159,752 108,349
In the last 12 months the price of iron ore fell from an average of $US122.80 per tonne in 2013-
14 to the currently fluctuating $US50 per tonne. The graph below shows the volatility in iron ore
price since 2011 and its continued decline since 2014.
Graph 1: Iron Ore Price
Source: The Australian Financial Review, AFR Weekend, 4 May 2015
Page 10 of 76
Falling commodity prices are turning a sharp focus on productivity and other efficiencies in the
mining sector. As companies turn towards innovation, technology, automation and big data they
increasingly rely on changing worker skills and capabilities to remain internationally competitive.
1.3.1 Greater Flexibility in Skilling
Critical to this is flexibility in the training system. In a cost constrained environment, greater
flexibility in skilling is being sought by employers with an emphasis on skill sets rather than
qualifications for many surface mining roles. This trend was examined in the RITC’s skill sets
project7 and is likely to accelerate in the short to medium term. In June 2015, the National
Centre for Vocational Education Research has released a report8 which explores how building
better links between education and work can help provide a more coherent approach to
vocational development. The report finds redesigning training qualifications using vocational
streams as a structuring guide and the identified shared capabilities as the basis for the
curriculum could provide workers with stronger work-related capabilities, enabling them to adapt
more quickly to changing labour market circumstances and help reduce persistent skills
mismatch.
1.4 Workforce Development Drivers
According to the latest CME resource sector outlook, although changes in commodity prices
have seen fewer people employed in the resources sector, the transition from construction to
operation is seeing an expected decrease in the construction based workforce. CME anticipates
this decline to be around 17,300 below 2014 levels in 2020. The operational workforce is
expected to peak at 4,300 above 2014 levels in 2019, before declining to 3,500 above 2014
levels in 2020. Overall, the outlook expects the labour workforce to decline to 87,000 by 2025
but remain more than double pre-expansion levels in 2004 with the shift attributed to the sectors’
increasing transition to an operational phase and an ongoing focus on productivity9.
This volatility, combined with increases in global supply for many commodities (notably iron ore)
is placing pressure on resources companies to control costs in order to remain internationally
competitive. Indeed, productivity and the cost of doing business in Australia and Western
Australia are key concerns of resources companies.
In terms of business risks for the mining and metals sectors in 2015/16, Ernst and Young10 view
the following as significant:
The Switch to Growth
Ernst and Young believe the time has come for companies to consider decisions to
invest for future growth with the sector primarily being pre-occupied with the switch from
growth to consolidation and capital returns. The seeds of cyclical recovery are being
planted in terms of capital reductions, mine closures, cost savings and productivity
improvements.
7 Bowman, Skill Sets Project, 2013 8 National Centre for Vocational Education Research, Linking qualifications and the labour market through capabilities
and vocational streams, June 2015 9 CME/Deloitte Access Economics, 2015-2025 Western Australian Resources Sector Outlook, November 2014
10 Ernst and Young, Business risks facing mining and metals 2015/16 – Moving from the back seat to the driver’s seat,
2015
Page 11 of 76
Productivity Improvement
The massive investment phase has seen productivity fall to its lowest in more than 30
years as companies recruited inexperienced staff and managers.
Access to Capital
Lower commodity prices are influencing investor behavior making it difficult for junior and
mid-tier mining companies to access capital for project development.
Social Licence to Operate
Lower commodity prices are having an impact on investment decisions which, in turn, are
having an impact on regional communities and developing regions. Social media and
environmental lobby groups are creating negative sentiment which is influencing public
opinion on the sector.
Price and Currency Volatility
Lower commodity price impacts have been partially offset by a lower Australian dollar.
Capital Project Costs
Project cost overruns are a legacy issue which is being made worse by difficulties in
attracting investment capital.
Access to Energy
Securing sustainable, cost-effective and reliable energy is critical.
Innovation
Significant productivity gains can be realised through a fundamental rethink of how things
are being done and a willingness and capability to innovate.
These business risks all have a link to workforce development.
Please see a list below of workforce development drivers impacting the mining industry in
Western Australia, which will be explored in more depth in Section 3.
a Productivity – skill sets
b Automation and its skill impacts
c Flexibility and quality in the training system
d Sustainability through diversity
e Costs of doing business and regulatory matters.
Page 12 of 76
1.5 Fast Facts
In 2013/14 mining accounted for 30 per cent ($79.5 billion) of Gross State Product
(GSP)11.
As at May 2015, mining (including Oil and Gas) constituted 6.9 per cent (96,200) of the
Western Australian labour force. According to the ABS May 2015 labour force data, the
mining sector employs almost 1 per cent of Australia’s labour force12.
The 2025 workforce is forecast to be double the pre-expansion levels of 2004 and settle
around 87,000 largely due to the sector’s transition from construction to operations13.
The Western Australian mining industry has 16 mineral projects at the committed stage
with a total estimated capital expenditure above $114 billion14.
Increasing use of automated technology in mining projects across Western Australia will
have implications for industry’s skill requirements
According to the Department of Mines and Petroleum, mining and oil and gas royalty
payments totaled $5.8 billion in 2014 of which iron ore accounted for $5.2 billion, a
growth of 20 per cent compared with 201415.
According to the 2015-16 State Budget, despite recent falls for a number of key
commodities, revenue from royalties will be $4.44 billion in 2014-15 and estimated to be
$3.67 billion in 2015-16, contributing 14 per cent to total state revenue.
Across the Western Australian resources sector the cost competitiveness of projects has
decreased across a range of commodities due to lower commodity prices and relatively
high costs of doing business.
According to the ABS May quarter 2015 figures the resources sector workforce
comprises 27 per cent professionals with just over a quarter of these being women.
Managers total 9 per cent of which 21 per cent are women. Technicians and trades
workers make up 24 per cent of the workforce and machinery operators and drivers total
27 per cent with a small representation of women in these occupations, both around 8
per cent and 6 per cent respectively. With the exception of managers, these are the most
common occupational categories across the sector.
While being a relatively small direct employer, the resources sector supports many other
areas of Western Australian industry. It has been estimated the resources sector
employment multiplier may be as high as 4, meaning for every job created in the
resources sector a further 4 are created in the wider economy.
11
Department of State Development, Western Australia Economic Profile, July 2015 12
ABS, Labour Force (6291.0.55.003), Quarterly, May 2015 13
CME/Deloitte Access Economics, 2015-2025 Western Australian Resources Sector Outlook, November 2014 14
BREE, Resources and Energy Major Projects, April 2015 15
Department of Mines and Petroleum, Royalty Receipts 2014
Page 13 of 76
Around 70 per cent of resources sector fly-in/fly-out (FIFO) workers are sourced from the
Perth/Peel region. A further 3 per cent of the FIFO workforce is expected to come from
these regions by 2020. By the same year the proportion of the resources sector
undertaking FIFO will be approximately 63 per cent, up from about 60 per cent in 201416.
The latest CME workforce survey indicates 67 per cent of the resources sector workforce
is 34 to 64 years old or older, with the majority of the FIFO workforce in the 34 to 54 age
group. Many of the residential metro workers are in the younger age group of 25 to 44
years old17.
According to the survey, 86 per cent of the workforce is in a relationship with around 65
per cent having children and around 55 per cent of the workforce has worked in their
roles for over 5 years. 73 per cent of people surveyed have a partner who is working.
74 per cent of FIFO workers surveyed reported they would not continue in their role if
their arrangement changed to residential.
According to the CME 2013 diversity survey, 19 per cent of the Western Australian
resources sector workforce is female and 4.2 per cent are Aboriginal. By 2020 the share
of women and Aboriginal people in the resources sector workforce is forecast to increase
by 1.5% and 2.3% respectively18.
An ageing working population and retirement of “baby boomers” presents a potential loss
of experience and corporate knowledge to the sector.
According to a study conducted by the NCVER on behalf of CME, member companies of
CME spent around $470 million on training activities during 2011/12 representing
approximately 5.3 per cent of payroll.
According to the same study, apprentices and trainees comprised about 5 per cent of
CME member company workforces.
16
CME/Deloitte Access Economics, 2015-2025 Western Australian Resources Sector Outlook, November 2014 17
CME, Workforce Survey, 2015 18
CME/Deloitte Access Economics, ibid
Page 14 of 76
1.6 Summary of Issues Table
Issue Recommended Priority
Action(s)
Skilling WA
Strategy
Lead
Agency
Due Date
Quality in the
training system
High risk work audit,
industry education piece
and verification of
competence processes.
Goal 4 RITC March 2016
Skill Sets Second stage project to
pilot an approach to the
implementation of skill
sets in a regional
context.
Goal 4 RITC 2015/16
Application of VET
in Schools to RITC
industries
Liaise with relevant
careers advisors,
industry and relevant
industry organisations to
identify opportunities for
the implementation of
VET in Schools
pathways across RITC
industries, specifically
mining.
Goal 4
4.1.2
RITC December
2015
Ensuring training
system has the
capacity to respond
to mining industry
skill needs
Working with providers
and Manufacturing Skills
Australia to ensure state
wide capacity and
capability in delivering
the new MEM training
package industrial
electrician qualification.
Goal 5 RITC June 2016
Diversity in the
workforce
Develop strategies in
collaboration with CME
to improve the
representation of women
and Aboriginal
Australians in the mining
industry.
Goal 1 RITC/CME June 2016
Page 15 of 76
SECTION 2 METHODOLOGY
The Resources Industry Training Council subscribes to an evidenced based planning approach and
uses robust and verifiable primary and secondary data sources in developing the Industry Workforce
Development Plan.
Primary Data Sources
RITC social media
The RITC uses this mechanism to provide information and assistance to industry and training providers
operating in the mining, oil and gas and downstream process manufacturing industries in Western
Australia.
These social media channels include:
o Twitter: https://twitter.com/RITCWA
o Facebook: https://www.facebook.com/RITCWA
o Blog: http://ritcwa.blogspot.com.au/
o LinkedIn company page and group
Industry network meetings.
The RITC collaborates with relevant Industry Skills Councils around various events, seminars and
consultations in Western Australia.
Individual enterprise consultations
Independent validations as needed
RITC-commissioned research projects, available via our website: www.ritcwa.com.au
Third-party industry and economic research reports
Secondary Data Sources
Australian Bureau of Statistics (ABS)
Bureau of Resources and Energy Economics (BREE) – now Department of Industry
National Centre for Vocational Education and Research (NCVER)
CME Diversity Survey 2013
CME Workforce Survey 2015
IBISWorld Market Research
Wide range of industry reports
Page 16 of 76
SECTION 3 INDUSTRY PROFILE
3.1 Overview of the Mining Industry
3.1.1 Mining Industry Analysis
The Western Australian resources sector is diverse and complex, covering exploration, processing,
downstream value adding and refining of over 50 different types of mineral and energy resources.
Over the past decade, the Western Australian resources sector has been the most significant
contributor to state growth. The value of Western Australia’s mineral and petroleum sector in 2014
reached just over $114 billion. Iron ore, LNG and gold were the dominant contributors, with iron ore
accounting for 57 per cent of value, LNG 13.7 per cent and gold 7.6 per cent. Royalties from the
resource sector to WA increased 18 per cent from the calendar year to reach $5.78 billion in 2014.
Revenue from royalties are now calculated to be $4.44 billion in 2014-15 and are estimated to be $3.67
billion in 2015-16, contributing 14 per cent to total state revenue19.
According to ABS labour force data, mining industry employment in Western Australia peaked at
122,500 in August 2012. Since this time, it has declined to 96,200 in May 2015, a fall of 26,300 or 21.5
per cent. Compared with August 2014 ABS figures, employment in the sector has grown by 400 jobs.
A structural shift in the industry has been amplified in 2013 and 2014 as investment led growth
transitions to export-led growth. This shift will see changes to the size and composition of the mining
industry workforce. It is expected this transition will see further reductions in direct workforce numbers
and a general shift to higher skill roles.
Despite the current headwinds faced by the mining sector, industry invested a further $46 billion in new
capital expenditure in 2014 reflecting a 1 per cent fall compared to 2013. Currently there are almost
$180 billion in committed projects and a further $118 billion of projects under consideration at the
feasibility stage as at March 201520.
Iron ore expansion projects continue to dominate the mining sector, with the two biggest iron ore miners
in the state, BHP Billiton and Rio Tinto currently executing expansions that will see tonnages
significantly increased. In October, BHP announced plans to increase production by 65 million tonnes
per year to 290 million tonnes. Rio Tinto is implementing an expansion strategy that will see it reach
annual production of around 360 million tonnes per annum. Western Australian currently accounts for
more than 97 per cent of Australian iron ore production and this dominant position is projected to
continue.
A similar dominant position is apparent in gold production, with Western Australia accounting for almost
70 per cent of Australia’s gold production. According to the Department of Mines and Petroleum (DMP),
Western Australia produced gold valued at $8.7 billion in 2014.
DMP’s latest Mineral and Petroleum Industry 2014 Review highlights the importance of gold and iron
ore to the state’s economy. Iron ore accounted for 75 per cent of the mineral sector’s total sales in
2014. When combined with the gold sector’s contribution of 10 per cent, the two minerals accounted for
85 per cent of total mineral sales in the year.
19
2014-15 State Budget 20
DMP, Mining and Petroleum Investment Update, March 2015
Page 17 of 76
The vital economic contribution of the resources sector to the Western Australian economy is also
reflected in royalty income received by the Western Australian government. Since 1983, a total of $34
billion has been paid to the government in royalties, with $10 billion of this being in the last 2 years
alone21. Recent falls for a number of key commodities are forecast to see significant declines in royalty
revenue in coming years. These declines are expected to be only partially offset by higher production
volumes and a lower $US/$A exchange rate. Revenue from royalties is now calculated to be $4.44
billion in 2014-15 and is estimated to be $3.67 billion in 2015-16, contributing 14 per cent to total state
revenue22.
The performance of the gold industry depends heavily on the movements and interaction of global gold
prices, relative exchange rates and demand. According to DMP, gold was the state’s second most
valuable mineral sector with total sales of $8.7 billion, representing 10 per cent of the mineral sector’s
total sales, reflecting a 3 per cent increase in the quantity sold from 6.6 million ounces in 2013 to 6.8
million ounces in 2014.
Commodity price movements over 2013 and 2014 are shown in the table below.
Table 2: Exchange Rates and Commodity Prices
Source: DMP (all exchange rates and commodity prices listed have been rounded off)
2013 2014 % difference
US$ v A$
0.9675 0.9026 -6.7%
2013 2014 % Difference
Unit US$ A$ US$ A$ US$ A$
Oil bbl 107 111 99 109 -7.9% -2.2%
Iron Ore Fines China $/tonne 135 140 97 107 -
28.5% -
23.6%
Iron Ore Fines Japan $/tonne 125 129 86 95 -
31.4% -
26.6%
Alumina t 291 295 295 316 1.6% 6.9%
Gold oz 1,410 1,457 1,266 1,403 -
10.2% -3.7%
Nickel t 15,022 15,502 16,869 18,668 12.3% 20.4%
Cobalt t 27,311 28,370 31,242 34,664 14.4% 22.2%
Ilmenite* t
212
147
-30.5%
Rutile t 1,590 1,090 -
31.4%
Zircon t
1,240
1,191
-3.9%
TiO2 t
2,658
2,867
7.9%
Copper t 7,326 7,581 6,860 7,607 -6.4% 0.3%
Lead t 2,142 2,219 2,096 2,323 -2.2% 4.7%
Zinc t 1,910 1,979 2,162 2,399 13.2% 21.3%
21
CME, Western Australian Royalties, September 2014 22
2014-15 State Budget
Page 18 of 76
The table below highlights the export values of key commodities. This emphasizes the significance of
iron ore exports to the Australian economy, bringing in 76 per cent of total royalty receipts for Western
Australia respectively, as shown in Figure 123.
Figure 1: WA Royalty Receipts 2014
Source: DMP and WA Treasury
3.1.2 Industry Trends
3.1.2.1 Exploration
Exploration expenditure for minerals in Western Australia has fallen significantly, with many drilling
companies anecdotally saying the conditions currently experienced are unparalleled in recent history.
According to the Department of Industry and Science, iron ore exploration expenditure fell by 29 per
cent in the March quarter 2015 on a year on year basis to a five year low of $82 million24. With the
exception of uranium exploration expenditure which rose by 91.5 per cent in the December quarter25,
iron ore exploration is not expected to rebound in the short term.
As with iron ore, Australia’s gold producers remain focused on reducing costs and improving production
at existing sites. Although gold exploration rose by 3.4% in the December 2014 quarter, it fell 16%
($12.2 million) in the same quarter year on year26. According to the June 2015 CME Quarterly Economic
Brief, the price of gold was down 7.7% relative to April 2014 but was forecast to strengthen reaching an
average of $US1,320 in 2017. IBISWorld anticipates gold prices to remain relatively high over the next
five years.
23
DMP, Royalty Receipts 2014 24
Department of Industry and Science, Resources and Energy Quarterly, June 2015 25
CME/Deloitte Access Economics, 2015-2025 Western Australian Resources Sector Outlook, November 2014 26
CME, Quarterly Economic Brief, June 2015
Iron Ore 76%
North West Shelf Grants 15.7%
Other 3.3%
Other 2.1%
Nickel 1.2%
Alumina 1.0%
Diamonds 0.3% Heavy
Mineral Sands 0.2%
Petroleum 0.2%
Other Commodities
8.3%
Royalty Receipts 2014 and North West Shelf Grants
$6.9 Billion
Source: DMP and WA Treasury
Page 19 of 76
The persistent decline in exploration expenditure remains a concern and will potentially hamper efforts
to support the next wave of resources investment. A recent report by Ernst & Young highlights how the
decline in exploration expenditure can have flow on effects for the sector’s future long term growth27.
Ernst and Young argue declines in exploration investment will have implications for global price stability,
supply of strategic minerals, retention of and investment in skilled labour, economic stability in mineral
dependent countries, and investment in sustainability and innovation28.
In a recent inquiry, the Productivity Commission examined the regulatory barriers faced by mineral and
resource exploration companies and found many stakeholders were dissatisfied with the existing
regulatory framework citing increasing costs, lengthy delays in gaining necessary approvals and
increasing regulatory uncertainty. The Commission found the number, size and quality of resource
discoveries in Australia has been declining over the longer term and as a result, the sector has been
experiencing rising costs and lower productivity.
Against this backdrop, the Western Australian and Australian Governments have introduced exploration
incentive schemes. The Western Australian Government has announced a continuation of the $80
million Exploration Incentive Scheme, funded as part of the Royalties for Regions program. With only 20
per cent of Western Australia’s land mass explored for prospectivity, there is significant potential for
new finds given the right investment climate.
According to a July 2015 media release by the Association of Mining and Exploration Companies
(AMEC), for the resources industry to continue to prosper and grow, it is critical there is collaboration
between government and industry to boost competitive geoscience and co-funded drilling programs and
investment in research and technology to access new deposits and be more cost competitive (for
exploration and production)29. The following diagram points to a decline in greenfields exploration due
largely to costs associated with this exploration and a focus by mining companies on extending their
existing proved up reserves.
27
Ernst & Young, Business risks facing mining and metals 2014-2015 28
Ernst & Young, Business risks facing mining and metals 2014-2015 29
Association of Mining and Exploration Companies (AMEC), Media Release, July 2015
Page 20 of 76
Graph 2: Australian Greenfields v Brownfields Metres Drilled
Source: Association of Mining and Exploration Companies (AMEC), Media Release, July 2015
3.1.2.2 Cost of Doing Business
Western Australia’s resources and process manufacturing sectors are trade exposed. Enterprises
operating in these sectors are therefore directly competing against overseas producers that may have
substantially different cost and regulatory regimes.
Recent studies have pointed to a decline in Australia’s cost competitiveness. A combination of
decreasing ore grades locally and greater competition from overseas producers (notably Africa), has
placed severe pressure on Western Australian producers.
Clearly, local producers must remain cost competitive in order to be attractive from an investment
perspective. With global resource companies substantially increasing their portfolio of reserves and
potential projects, there are many competing priorities for international capital. This capital will flow to
those projects that offer the best combination of risk and return and in this environment, it is imperative
that the sector not be burdened by increasing input costs and regulatory settings that are often complex
and costly.
CME has recently completed research into the cost of doing business in Western Australia. This
research pointed to a number of factors which have contributed to a higher cost base for local
enterprises including:
Page 21 of 76
Declines in multifactor and labour productivity;
Imposed input costs (taxes and regulatory costs);
Environmental costs;
Increased labour costs;
Energy costs; and
Costs associated with approvals processes.
Late in 2012, the Minerals Council of Australia (MCA) released its report, Opportunity at risk; Regaining
our competitive edge in minerals resources30, which highlighted Australia’s cost position as declining
leading to a loss of operating cost advantage for all but established Pilbara projects. This largely
reflected the impact of falling commodity prices and high labour input costs. For bulk commodities such
as iron ore, these labour costs can amount to around 50 per cent of a project’s total construction cost,
while for a base metal mine the figure ranges from between 35-50 per cent31. In the current operating
climate, these remarks remain relevant.
A need to invest in operations to maintain competitiveness and profitability is forcing effort to be geared
towards innovation, process advancement and productivity improvement. The focus on operations is
seeing investment in new projects and equipment purchases declines sharply and a renewed focus
being placed on investment in asset management and maintenance to improve productivity.
Technological advancements and automation are fundamental to further productivity enhancements
across the mining sector.
Aligned with automation is data. The next innovation is forecast to come from a capability to analyse the
huge amounts of data (big data) that automation delivers and to interpret this data to make process
changes to realise further productivity gains. Rio Tinto is already making significant progress in this are
through creation of a global data centre in Queensland.
The recent MiningIQ report32, noted productivity and/or efficiency gains were identified as one of the top
5 challenges the mining industry faced in 2014. MiningIQ survey respondents saw the top two
mechanisms for realising productivity/efficiency gains as the use of technologically advanced products
or services followed by the automation of equipment or processes. This finding is echoed in Ernst &
Young’s report33 which sees productivity as one of the top ten risks facing mining in 2015/16.
3.2 Labour and Skill Demand
3.2.1 Identify the Workforce Demands
The workforce demand story for Western Australia’s mining industry is inextricably linked to the
transition from construction to operations.
Unsurprisingly, the acute skills shortages experienced by the resources sector reported in previous
RITC mining sector industry workforce development plans have now eased considerably and the
proportion of occupations in shortage is at its lowest level since 2007. As the mining industry transitions
to production, the need for entry level roles is further reduced, with priorities being focused on greater
technological solutions and remotely controlled and automated systems.
30
Minerals Council of Australia, Opportunity at risk; Regaining our competitive edge in minerals resources, 2012 31
MCA, Regaining our competitive edge , 2012 32
MiningIQ, Australian Mining Industry Report, 2014 33
Ernst and Young, ibid.
Page 22 of 76
The impact of automation will present skills challenges with a shift in demand to high level specialist
occupations for future greenfields projects – as noted in the RITC automation report from 2013, the
switching costs associated with full automation in a mining context can be prohibitive.
Similarly, Ernst & Young a 2014 study saw the increasing use of automation, mechanisation and data
analytics as a move towards a more sophisticated operating environment arguing the skills shortage
risk has become more complex and … is now a matter of balancing the needs of an advancing industry
against the skills that exist and invest in those of the future to avoid becoming acute in the next cycle34.
Together with potential automation impacts, a 2014 MiningIQ report found improving the skill base of
existing employees through skill set development one of top priority areas of company focus35. Lower
commodity prices, weaker demand growth and the suspension of some high-cost operations has seen
the balancing of talent requirement as a lesser business risk, however, retaining and up-skilling of
employees is a focus for many resources companies as forecast in a 2013 skills needs report by
AWPA36. This focus is also important from a productivity perspective.
The 2011 Census of Population and Housing figure below shows that iron ore accounted for 29 per cent
of employment across the mining industry in Western Australia37.
34
Ernst & Young, Business risks facing mining and metals 2014-2015 35
MiningIQ, Australian Mining Industry Report, 2014 36
AWPA, Resources Sector Skills Needs, 2013 37
2011 Census of Population and Housing, accessed online through Tablebuilder
Page 23 of 76
Figure 2: Total Mining Employment by Western Australia by Industry Sub-division
Source: 2011 Census of Population and Housing
According to May ABS 2015 figures, in the last 12 months has seen a shift in the occupational make up
of Western Australia’s mining industry. Interestingly, the data shows the proportion of technicians and
trades workers has fallen from 34 per cent to 24 per cent. In comparison, the share of machine
operators and drivers has risen by 2 per cent to almost 27 per cent of the employed mining workforce
reflecting new projects commencing and increased production. The figure overleaf represents the
spread of employees across the different occupations for all mining employees.
6% 1%
13%
1%
3%
1%
6%
15% 29%
1%
1%
14%
1%
4%
1%
1%
WA Total Mining Employment by Industry Sub-division
Mining, nfd
Coal Mining
Oil and Gas Extraction
Non-Metallic Mineral Mining and Quarrying,nfd
Construction Material Mining, nfd
Gravel and Sand Quarrying
Other Construction Material Mining
Other Non-Metallic Mineral Mining andQuarrying
Exploration and Other Mining SupportServices, nfd
Exploration, nfd
Petroleum Exploration
Mineral Exploration
Other Mining Support Services
Metal Ore Mining, nfd
Iron Ore Mining
Bauxite Mining
Copper Ore Mining
Gold Ore Mining
Mineral Sand Mining
Nickel Ore Mining
Silver-Lead-Zinc Ore Mining
Other Metal Ore Mining
Page 24 of 76
Figure 3: Western Australian Mining Industry Workforce by Occupation
Source: ABS May 2015
This falls in line with CME 2015-2025 Western Australian Resources Sector Outlook (November 2014)
which reports that although the resources sector workforce has more than doubled since 2004, the
numbers have declined over the past 12 months as the sector transitions to the operational phase. The
2025 workforce is expected to be approximately 87,000. While lower than the current number, it is still
forecast to be double the pre-expansion levels of 2004.
The process of transitioning from construction to production will have long lasting effect in the size and
composition of the mining industry workforce. Although further reductions in the direct workforce
numbers are expected, the shift to operations will bring about sustainable long-term jobs for higher
skilled workers in the state, particularly in professional occupations. In association with Deloitte38 and as
part of an update to the National Workforce Development Strategy39, the Australian Workforce and
Productivity Agency (AWPA), developed models to gain insight into the skilled labour demands of a
transitioning sector based on four different scenarios:
1. The Long Boom (sustained prosperity and a restructured economy)
2. Smart Recovery (uncertainty to 2015 with low growth and knowledge-based recovery)
3. Terms of Trade Shock (resource prices fall, a more balanced economy)
4. Ring of Fire (risky world – multiple shocks)
The benefit of this approach is the ability of policy makers and enterprises alike to commence additional
workforce planning in different economic cycles.
38http://www.awpa.gov.au/national-workforce-development-strategy/2012-workforce-development-strategy/scenario-
development/documents/scenarios-for-australia-to-2025.pdf 39
The RITC contributed to the consultation process for the National Workforce Development Strategy, RITC Submission,
unpublished
8.5%
26.5%
24.2%
1.7%
8.3%
0.3%
26.8%
3.7%
Mining Industry Workforce by Occupation Managers
Professionals
Technicians and TradesWorkers
Community and PersonalService Workers
Clerical and AdministrativeWorkers
Sales Workers
Machinery Operators AndDrivers
Labourers
Page 25 of 76
Figure 4: Employment Composition by Industry, 2011 and 2025 by Scenario
Source: AWPA Discussion Paper from Deloitte Access Economics Modeling
The AWPA resources sector work40 projects mining operations employment will increase each year
between 2014 and 2018. Under AWPA’s base case scenario (deemed to be the most likely scenario by
AWPA), employment will increase from 236,690 in 2013 to 254,260 in 2018, an increase of 7.4 per cent.
According to the report, Western Australia, Queensland and New South Wales accounted for just over
85 per cent of national mining industry employment in May 2013. Latest ABS labour force data (May
2015) shows little change in this overall picture which is not unexpected.
As AWPA notes, from a regional perspective the impact of mining on employment is significant.
Although nationally the sector employs a small portion of the workforce, for Western Australia the figure
is close to 7 per cent and in some regions in Western Australia mining accounts for over 50 per cent of
employment41.
40
AWPA, Resources Sector Skills Needs Report, 2013 41
AWPA, Workforce Development Needs Discussion Paper, July 2012
Page 26 of 76
To meet this demand, the RITC advocates for a three pillared approach which is championed by CME:
Workforce development and diversifying the workforce will be addressed further in Section 4 of this
report.
Mining has driven migration flows into WA and during the years of expansion in the state’s sector, with
overseas migration peaking in 2012 at 44,500 and interstate migration at 8,900. The following data
shows a continued significant decline in migration as projects transition from construction to a less
labour intensive operational phase, exacerbated by lower commodity prices, weaker demand growth
and the suspension of some high-cost operations.
Figure 5: Net Overseas and Interstate Migration in Western Australia
Source: ABS, 3101.0 Australian Demographic Statistics, Table 2: Population Change, Components – States and Territories –
Western Australia – December 2014
During this time of growth, the work practice of Fly-in/Fly-out (FIFO) was another strategy utilized to
meet skills demand particularly in remote and regional areas. As pointed out in CME’s 2015-2025
Western Australian Resources Sector Outlook, accommodating the future workforce and meeting the
sector’s need for skilled labour will require both FIFO and local residential options. The percentage of
Training
• Training, upskilling and redeployment of existing workforce
• Training as an entry pathway for new workers
Diversify the workforce
• Women
• Aboriginal Australians
• Mature aged workers
Migration
• Interstate
• International
• Temporary migration
• Permanent migration
-2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Dec-2
011
Fe
b-2
012
Ap
r-2012
Jun
-2012
Au
g-2
012
Oct-
2012
Dec-2
012
Fe
b-2
013
Ap
r-2013
Jun
-2013
Au
g-2
013
Oct-
2013
Dec-2
013
Fe
b-2
014
Ap
r-2014
Jun
-2014
Au
g-2
014
Oct-
2014
Dec-2
014
Net Overseas and Interstate Migration WA
Overseas
Interstate
Page 27 of 76
FIFO workers is expected to increase by 3 per cent in 2020 with the majority of this workforce (70 per
cent in 2014) continuing to be sourced from the Perth and Peel regions42.
FIFO is seen as offering workers choice regarding their workplace location and working conditions.
CME’s submission to the Senate Inquiry into FIFO and Drive-In Drive-Out (DIDO) work practices stated
the importance of quality FIFO accommodation and facilities as critical considerations for employers
seeking to ensure they recruit and retain employees in Western Australia’s competitive labour
market43.The recent parliamentary inquiry into mental health impact of FIFO working arrangements has
resulted in 30 recommendations outlined in WA Education and Health Standing Committee’s report44.
Mental health and wellbeing is a broad issue affecting many in the Western Australian community,
making responsibility for mental health issues a shared one - for individuals, government, community
and industry. A recent 2015 CME member company workforce survey reports the resource sector
workforce showed similar worker satisfaction with life as a whole and with their health as the mean
scores of the national norm with over 74 per cent of FIFO workers stating they would not continue in
their role if it was residential45. Financial incentives and lifestyle were key factors attracting people to
work different work arrangements, emphasizing the importance of choice for employees.
There has been a dramatic improvement in the conditions, rosters and facilities available on site for
FIFO employees over the past decade. Resources companies have long recognised the importance of
employee wellbeing, with supports such as employee assistance programs common across industry.
Companies undertake a wide range of workplace and community wellbeing initiatives to facilitate
access to support, break down stigma of mental health issues, as well as programs designed to help
employees adjust to FIFO. The CME survey shows over 90 per cent of FIFO workers access employee
assistance programs with over 70 per cent reporting being comfortable accessing them.
3.3 Regional Impact
In July 2013, CME published a report that outlined the economic contribution to the Western Australian
resources sector to the state’s economy. From a regional perspective, this report noted:
According to the 2011 Census, approximately 44 per cent of the total Western Australian
resources sector workforce resided in Perth;
The Pilbara region was next largest accounting for about 25 per cent of the state’s resources
sector workforce;
The resource sector value-add of the Perth region was highest at $37 billion followed by the
Pilbara region at $26.7 billion and the south east region at $11.3 billion.
Direct employment in the resources sector accounts for half of the total employment in the
Pilbara region (22,812 jobs);
Of these 22,812 workers, over 80 per cent are employed in the resource extraction and services
industry;
By comparison, approximately 60 per cent of the Perth based resources sector workforce were
employed in the resources extraction and services industry;
Direct employment in the resources sector accounts for one-third of total employment in the
south eastern region (9,710 jobs).
42
CME, 2015-2025 Western Australian Resources Sector Outlook 43
CME Submission to the FIFO Inquiry: http://www.cmewa.com/UserDir/CMEPublications/111003-PS-
DRAFT%20CME%20FIFO%20Submission-v0%202314.pdf
44 WA Education and Health Standing Committee, The impact of FIFO work practices on mental health, 2015
45 CME, Workforce Survey, 2015
Page 28 of 76
The resources sector also makes a valuable contribution to regional communities. In 2013, KPMG
undertook an analysis of the demographic profile of mining regions across Australia on behalf of the
Minerals Council of Australia. This study found the resources sector was instrumental in creating
employment opportunities in remote areas which has manifested itself in higher incomes and higher
levels of educational attainment when compared to the Australian average.
Key findings of the KPMG study included:
The proportion of Pilbara residents on high incomes (defined as being over $2,000 per week)
increased from 16 per cent in 2006 to 42 per cent in 2011;
The Pilbara experienced average annual population growth of 7.3 per cent over the 5 years to
2011 which was almost 5 times the national average;
Approximately 70 per cent of the Kalgoorlie-Boulder workforce was employed on a full time
basis in 2011; and
Over the 5 years to 2011, the proportion of central west residents who have completed year 12
more than doubled from 20 per cent to 41 per cent.
According to CME’s latest resource sector outlook46:
The workforce in the Pilbara is expected to decrease by 14,300 workers by 2020, comprising a
reduction of 17,900 construction workers and increase of 3,600 operational workers;
The workforce in the Goldfields-Esperance region region is expected to decrease by 900
workers by 202, comprising a reduction of 700 construction workers and 200 operational
workers;
The workforce in the Kimberley is expected to increase by 2,900 to 2020; and
Workplaces in the Mid West, Great Southern and South West are expected to remain relatively
constant through 2020.
3.3.1 Commuter Workforce
In Western Australia the majority of mineral resource projects are located in remote and regional areas,
often not in close proximity to regional centres that have sufficient infrastructure, services or an existing
population base necessary to attract and sustain resources sector operations. Fly in-fly out (FIFO) as a
work practice enables such operations to access skilled labour.
Recent CME member company workforce survey findings, show 86 per cent of the workforce is in a
relationship with around 65 per cent having children47. It found few differences exist between residential
metro, residential regional and FIFO workforces when it comes to being in a relationship or having
children. Importantly, FIFO provides such families with choice of education and health care by allowing
some family members to reside outside of remote locations where choice is greater, while other family
members are employed by the resources sector in various regions of Western Australia. This was
clearly visible from the 2015 survey responses received around workforce preferences with 74 per cent
of FIFO workers reporting they would not continue in their role if their arrangement changed to
residential. Both financial incentives and lifestyle emerged as the two most important reasons for
resource sector employees’ choice of role across different working arrangements.
The logistical issues prevalent in mining are also linked to training capacity. In remote locations, training
provision may be unable to respond adequately to the demand by mining companies who often have to
bring in external trainers and assessors from Perth. State Training Providers (STPs) in regional areas
continue to experience difficulty in attracting and retaining experienced and competent trainers and
46
CME, 2015-2025 Western Australian Resources Sector Outlook 47
CME, Workforce Survey, 2015
Page 29 of 76
assessors to cope with demand from the resources sector. This issue has been raised by SkillsDMC in
its environmental scans over a number of years.
These issues are also being explored through the Regional Workforce Development Plans. Regional
Workforce Development Alliances provide leadership and oversight for the development of the plans,
with alliance membership including representation from local business, industry groups, local
governments, relevant government agencies and the local State Training Providers48. The plans aim to
build, attract and retain a skilled workforce to meet the needs of that particular region.
3.4 Regulatory Requirements
The mining sector is subject to a high level of regulation at both the state and federal levels. Approvals
processes, in particular, can pose significant delays and place considerable burdens upon industry.
Lack of consistency in interpretation and uncertainty in outcome has the potential to act as a
disincentive for those companies looking to gain access to natural resources. While it is acknowledged
that there has been progress on approvals reform to date, CME continues to advocate for review and
further reform to meet industry expectations for an approvals process that is timely and well resourced,
accountable and transparent and adheres to the principles of procedural fairness49.
Relevant legislation regulating the mining industry includes:
The Mining Act (1978)
Mining Regulations (1981)
Offshore Minerals Act (2003)
Dangerous Goods Safety Act (2007)
Dangerous Goods Safety (Storage and Handling of Non-Explosives) Regulations 2007
Dangerous Goods Safety (Major Hazard Facilities) Regulations 2007
Dangerous Goods Safety (Road and Rail Transport of Non-Explosives) Regulations 2007
Dangerous Goods Safety (Explosives) Regulations 2007
Dangerous Goods Safety (Security Risk Substances) Regulations 2007
Dangerous Goods Safety (General) Regulations 2007
Mines Safety and Inspection Act 1994;
Mines Safety and Inspection Regulations (1995); and
Mines Safety and Inspection Levy Regulations 2010.
Workplace health and safety legislation is currently being harmonised and there are also moves in
Western Australia to amalgamate relevant legislation which may have an impact on specific
competencies across the industry such as risk management.
3.5 Gender/Age Participation
3.5.1 Gender
Female participation rates for the mining industry in Western Australia vary considerably across the
different industry subdivisions.
According to the 2011 Census, the average female participation rate for the Western Australian mining
industry has grown significantly since 2006 to 21 per cent with greatest concentration of female workers
across oil and gas extraction, iron ore and gold ore mining and other mineral support services.
48
http://www.dtwd.wa.gov.au/dtwd/detcms/navigation/regional-workforce-development-plans/ 49
CME Environment Portfolio
Page 30 of 76
According to a CME member company 2013 survey50 women comprise 19 per cent of employment
across CME member companies and by 2020 the share of women in the resources sector workforce is
forecast to increase by 1.5 per cent51.
Female employment in the mining industry is concentrated in the iron ore sector, where over 4,400
women were employed. Although the mining industry female participation rate has grown considerably
since 2006, it still remains below the Western Australian all-industry female participation rate of 45.28
per cent. The figure below depicts the participation of women across the various commodities in the
Western Australian mining sector52.
Figure 6: Average Female Participation Rate across the Western Australian Mining Industries
Source: 2011 Census of Population and Housing
The 2013 CME diversity survey found women most commonly employed in professional occupations,
clerical and administrative workers, and as machine operators and drivers with the proportion of women
in management roles more than doubling between 2011 and 2013 reaching 16 per cent in 2013.
Women in the resources sector continue to be somewhat concentrated in non-operations settings, with
CME’s 2013 diversity survey indicating that just over half (56 per cent) of women are employed at the
member company operations site compared to 79 per cent for all employees53.
After two years of research, the Committee for Perth has released its findings on the state of gender
equality in Western Australia with findings showing that more work needs to be done. The Filling the
Pool report identifies 31 recommendations to increase and support women’s workforce participation and
progression in the state and narrow the gender pay gap, including greater job flexibility, better access to
childcare, succession plans linked to greater diversity, targeted training and development activities,
50
CME, Resource Sector Diversity Survey, September 2013 51
CME, 2015-2025 WA Resources Sector Outlook 52
Analysis of 2011 Census of Population and Housing 53
CME, Resource Sector Diversity Survey, September 2013
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Mining Industry Female Participation Rate
Page 31 of 76
sponsorship and mentoring programs, increasing the number of girls undertaking STEM subject at
school, and more meaningful equality targets54.
3.5.2 Workforce Age Profile
The age profile of Western Australia’s mining sector is shown below based on the 2011 Census.
Figure 7: Western Australian Mining Workforce Age Profile
Source: 2011 Census of Population and Housing
According to this information, over half of the mining industry workforce is aged between 25 and 45
years of age (57.8 per cent). This reflects the value placed on experienced workers in the industry. A
recent CME member workforce survey shows 67 per cent of the resources sector workforce is between
35 to 64 years old or older55. It showed the majority of the FIFO workforce was in the 35 to 54 age
group, while the majority of the residential metro workers are in the younger age group of 25 to 44
years. Additionally, around 55 per cent of the workforce has worked in their roles for over five years.
Australia has an ageing population. From the mining industry perspective, this particular issue is made
worse within the context of potential retirements, with 20.7 per cent of the mining industry workforce
being aged between 50 and 69 years of age. From an operational perspective, the potential loss of
experience and operational knowledge is considerable and indicates the need for pre-emptive action in
terms of ensuring appropriate transfer of knowledge to younger staff through training and mentoring.
According to Ernst and Young, one of the ways to mitigate the long term risks of a shortage of critical
skills and attrition is to extend retirement and encourage people to either stay on for longer or mentor
less experienced colleagues in the sector56.
According to SkillsDMC’s 2014 Environmental Scan, an issue of concern nationally is the proportion of
workers aged 55 years and over in the mining industry. Nationally this was 12 per cent. Figure 7 above
shows for Western Australia the proportion was nearly 11 per cent.
54
Committee for Perth, Filling the Pool Report, June 2015 55
CME, Workforce Survey, 2015 56
Ernst & Young, Business risks facing mining and metals 2014-2015
1.21%
8.01%
15.20%
14.11%
14.67%
13.80%
12.31%
9.81%
6.52%
3.50%
0.88%
15-19 years
20-24 years
25-29 years
30-34 years
35-39 years
40-44 years
45-49 years
50-54 years
55-59 years
60-64 years
65-69 years
WA Mining Workforce Age Profile
Page 32 of 76
While Figure 7 outlines the age profile of the mining industry as a whole, additional analysis by industry
area was undertaken to show the varied age profiles within the industry (Figure 8):
Figure 8: WA Mining Workforce Age Profile - Comparison of Different Industry Subdivisions
Source: 2011 Census of Population and Housing
Attracting a new wave of workers into the industry is important if Australian is to maintain a sustainable
and prosperous economy. Although new initiatives have been trialed in the mining industry to target
younger workers, safety remains the primary concern of all resource development projects and a
premium is placed upon recruiting mature workers, who take responsibility for their own safety and the
safety of those around them. There is a legislative age limit of 18 for employment in underground mining
environments. A new set of traineeships and pilot programs are in the pipeline in collaboration with
schools, training providers and industry to assist young people moving into the industry which should
raise industry profile and increase participation.
3.6 Under-represented Groups Participation
The under-representation of Indigenous Australians in the Western Australian workforce is also
significant, despite recent attempts by government to encourage broader engagement with Aboriginal
people through the ‘Training Together Working Together’ initiative. Analysis of the 2011 Census
confirms industry reports of their track record in Indigenous employment:
0.00% 5.00% 10.00% 15.00% 20.00%
15-19 years
20-24 years
25-29 years
30-34 years
35-39 years
40-44 years
45-49 years
50-54 years
55-59 years
60-64 years
65-69 years
WA Mining Workforce Age Profile
Mining, nfd
Oil and Gas Extraction
Gold Ore Mining
Other Mining Support Services
Iron Ore Mining
Mining
Page 33 of 76
Figure 9: Mining Indigenous Participation Rate in Western Australia, compared with total
employment across each mining industry sub-division
Source: 2011 Census of Population and Housing
It should be noted that the average Indigenous participation rate, that is the average workforce
participation rate of Aboriginal and Torres Strait Islander peoples in the Western Australian mining
industry is 3.29 per cent.
As such, clear anomalies with high participation rates and low employment, such as gravel and sand
quarrying, other construction material mining and other non-metallic mineral mining are shown.
However, this further emphasizes the good work being done by enterprises in the iron ore mining and
other mining support services with high employment numbers and high participation rates.
Similarly, the nickel ore mining and mineral exploration industry sub-divisions are shown to have a
strong commitment to Indigenous employment, according to this comparison. These figures should,
however, be interpreted with some caution due to self-identification issues.
The CME 2013 resources sector diversity survey also collected data on Indigenous employment from
CME member companies. This provides an alternative for overcoming self-identification issues from the
Census. According to the CME survey, Indigenous participation in the resources sector was 4.2 per
cent – nearly double that of all industries (2.2 per cent)57.
According to CME’s 2013 diversity survey, Indigenous employees were most commonly employed as
machine operators and drivers with this occupational group accounting for 56 per cent of all Indigenous
employees. This group is potentially vulnerable in an automated mining environment so it is important to
57
CME, Diversity in the Western Australian Resources Sector Survey, November 2013
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Page 34 of 76
ensure Indigenous Australians have an opportunity to participate in higher skilled jobs across the
industry. Between the 2011 and 2013 surveys, the distribution of Indigenous employees across
occupational groups remained comparable.
Previous reports have identified a concentration of Indigenous Australians in lower skilled jobs, a direct
result of low participation in post-school education. This was also noted in the Forrest Review report,
Creating Parity, which advocated for a greater focus on improving the educational attainment of
Indigenous Australians which is fundamental to a greater participation of Indigenous Australians in
employment. As the review report states, whichever way you look at this, only employment will end the
disparity and employment is only possible if we remove all impediments to parity in education58.
Much remains to be done on the issue of progressing Indigenous Australians into higher level job roles.
The use of automation, innovative technologies, remote operating hubs and an increasing level of
activity-generated data used to improve processes in the sector is creating a morphing sector,
progressively more reliant on higher skills.
3.7 Major Challenges and Barriers
3.7.1 Productivity
The last 10 years has seen has seen unprecedented growth in the resources industry paralleled by a
decline in productivity, partly attributed to an inadequate skills mix during the boom with a reported
decline in Australia’s labour productivity of around 50% since 200159. A 2014/15 survey by Ernst &
Young60, reported productivity as the number one risk facing the industry. The 2015/16 Ernst and Young
study noted productivity improvement was the number two risk to the mining and metals industry.
Innovation, technological advancements and big data are seen as ways to boost productivity and
remain globally competitive. A recent case study by Rio Tinto depicts how automation has improved the
quality and quantity of output in their Pilbara region activities and how gathered data is used to generate
continuous improvement processes. Select site use of autonomous drill systems has improved Rio’s
productivity by as much as 15 per cent and eliminated injuries. Similarly, analysis of automation and big
data is used to develop company Excellence Centres for continuous improvement61.
The Chamber of Minerals and Energy of Western Australia reports similar trends in their 2015-2025
Western Australian Resources Sector Outlook, pointing out that the industrial relations regime needs to
be reformed to address cost pressures and ensure labour productivity increases.
Current governments recognise the importance of boosting Australia’s competitiveness to drive greater
innovation and investment in the resources sector as seen through the introduction of the Industry
Innovation and Competitiveness Agenda and the Industry Growth Centres Initiative designed to lift
competitiveness and productivity by focusing on areas of competitive strength such as mining
equipment, technology and services (METS).
3.7.2 Cost of Doing Business
For the mining industry in particular, moderations in commodity prices combined with escalating labour
costs have both conspired to erode industry’s international competitiveness. A recent MCA report
Regaining our Competitive Edge estimated that labour costs alone for many bulk commodity projects
can reach around 50 per cent of project costs, which further highlights the impact that skill issues can
58
The Forrest Review, Creating Parity, 2014 59
Ernst & Young, Business risks facing mining and metals 2014-2015 60
Ernst & Young, Business risks facing mining and metals 2014-2015 61
CEDA, Australia’s Future Workforce, June 2015
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have on competitiveness and overall project budget performance. Work undertaken by CME examining
the costs of doing business in Western Australia has drawn similar conclusions. High labour input costs,
low labour productivity, imposed input costs through government regulation, complex approvals
processes and environment costs are all damaging the industry’s cost competitiveness and its ability to
attract capital, particularly for exploration activities. At a recent conference in Kalgoorlie, it was reported
times for exploration permits to be granted in Australia took two and a half years as a minimum while in
Canada it took half that time.62
In an increasingly competitive global market with local companies operating in a tight cost constrained
environment, it is imperative Western Australia’s resources industry maintain their competitiveness and
profitability against overseas producers that may have substantially different cost and regulatory
regimes. In order to retain operating cost advantage and remain competitive, companies are
rationalising whole-of-business operations turning to innovative solutions to address the cost of doing
business, process advancement and productivity gains. The future will see a continued transformation
towards technology, automation and data analytics to improve whole business operations and boost
productivity. This will be the vehicle of change to attract future investment and ensure the sector
remains competitive and growing.
3.7.3 Lack of Industry Confidence in the Quality of Vocational Training
Persistent concerns remain regarding deficiencies in the quality of training delivery and assessment. In
many cases, these concerns emanate from a lack of RTO expertise, inappropriate or inadequate
infrastructure and assessment practices that do not meet regulatory or training package requirements.
This is particularly the case with high risk work which has seen the regulator take action and conduct a
strategic industry audit on high risk work training delivery and assessment in Western Australia. It has
been identified there may have also been some industry practices in place which may have contributed
to poor high risk work training delivery and assessment outcomes. A commitment has been given to
developing an “industry education piece” around high risk work to mitigate this in future.
The minerals sector spends more on training per employee than most industries and significantly more
than the national average. According to SkillsDMC, for every $1 invested by the Commonwealth in the
industry through National Workforce Development Fund, industry has invested $1.80.
Fundamental to raising quality from a delivery standpoint is a recasting of relationships between
industry and RTOs. It is incumbent upon industry to enter into negotiations with RTOs on an informed
basis - to understand their rights and to be clear with RTOs regarding expectations of performance. It is
also necessary for RTOs to understand the industry, its context and the practical considerations that will
determine issues such as delivery and assessment. The SkillsDMC quality tool, aims to address this
issue and provide industry with greater guidance when selecting an RTO.
3.7.4 Relevance of Qualifications and Funding Paradigm Disadvantage
In a productivity focused operating environment, industry’s primary concern is to ensure people have
the necessary skills to perform a particular job role. Increasingly, this is not aligning with a qualifications
paradigm. In some cases, the jump between units of competence and qualifications is too great with
some qualifications remaining too big for roles in industry. For example, in surface mining operations,
there is not a universal requirement for operators to have a Certificate III qualification which is
increasingly being seen as entry level. It is more appropriate for operators to have a Certificate II
qualification and then access skill sets as they progress to operate different equipment with a notion of
a certain number of skill sets equating to award of a higher level qualification.
62
Kalgoorlie Miner, Rio boss takes aim at ‘inefficient’ system, 4 August 2015 (P3).
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In Western Australia, this is inconsistent with system force to course enrolment processes and
requirements. In addition, Western Australia is currently not reporting skill set activity.
This is compounded by the issue of thin markets in regional Western Australia. The RITC will be
conducting a project to trial an approach to skill sets in a regional setting as a means of increasing VET
activity and engaging industry.
3.8 New and Emerging Skills
The push for productivity and increasing automation technology in the resources sector will give rise to
new skill demands. A new report by the Committee for Economic Development of Australia (CEDA)63
explores Australia's future workforce, demonstrating how the shift towards technology is growing
industry sophistication and making the sector progressively more reliant on higher skills. Implementation
of technology, automation and data impact the deeper technical skills and capabilities needed to ensure
sustained international competitiveness and growth into the future. Many of the issues raised around
industry demand for automation related skills are similar to those identified in the work commissioned by
the RITC in 2012-13 around automation and its skill impacts in the resources sector.
For Australia to have an innovative, flexible, skilled and capable workforce it needs to boost
participation and completion rates in STEM subjects (science, technology, engineering and
mathematics).
The push to adopt greater automation technology has partly been a response to certain driving issues
affecting the Western Australian mining industry, including productivity, OH&S and access to
technically, environmentally and socially challenging resources. Deployment of automated technologies
can improve productivity, remove employees from harmful or dangerous environments and improve
operational efficiency64.
The report found that automation will bring about a blurring of existing occupational boundaries and
result in hybridization of skills, compatible with a skill sets agenda. Key new maintenance skills will be
ICT-oriented and include65:
ICT diagnosis
Data fusion
Wireless networks
Precision GPS (e.g. for programming the route of driverless trucks)
Mechatronics
From an operational perspective, key new operational skills will be66:
Operator interface (including soft skills such as teamwork and communication)
Control room visualization
High level robotic allocation and task scheduling
Safe human-robot interaction and collision handling
Motion planning
Safety and reliability of SCADA control networks
Camera viewpoint planning
63 CEDA, Australia’s Future Workforce, June 2015 64
Australian Venture Consultants Ltd, Rise of the Machines? – adoption of automation technology in the Australian resources
industries and its implications for vocational education and training and higher education, November 2012 65
Consultant Presentation to RITC Advisory Board, May 2012 66
ibid
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3D mapping
Telerobotics
Systems integration
From a VET perspective, the proprietary nature of many automation technologies will drive the
formation of partnerships between Original Equipment Manufacturers (OEMs) and education and
training institutions. Scope exists here for strong cross-sectoral collaborations.
Increasing automation and mechanisation of processes within the industry can be expected to see an
increase in demand for a range of skills as noted earlier. It is likely skills needed from a productivity
perspective will cross existing occupational boundaries and pose a range of challenges from a
workplace relations standpoint. For example, the increasing incidence of hybrid power trains in mining
equipment will see mechanics requiring electrical and fluid power skills into the future. It is likely in a
mine site environment, the mechanical/industrial context of the metals and engineering electrical
qualification will provide a better fit than electrical qualifications with a largely domestic context to their
structure and delivery.
In 2011, EnergySafety notified industry that the metals and engineering training package electrical
qualification would no longer be accepted for issuing an electrician’s licence (from September 2015).
This announcement saw training providers focus on delivery of the utilities electrical qualification and
industry transition its apprentices to that qualification. Parts of the mining sector and a number of oil and
gas operating companies expressed confidence in the metals and engineering electrical qualification as
better meeting their skill needs.
Accordingly, the RITC has been working with the resources sector generally and the relevant Industry
Skills Council, Manufacturing Skills Australia to develop a revised metals and engineering training
package electrical qualification that will meet the requirements of electrical regulators. This qualification
has now been endorsed nationally by the VET sector and also by the electrical regulator in Western
Australia.
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3.9 Occupations in Demand (ANZSCO Code)
Submission to SPOL 2015 – Focus List
ANZSCO Occupation Comments
233311 Electrical
Engineer
Metal ore mining is the second largest employing industry of engineers
in WA. With a reported 2% unemployment rate for engineers in the
state, this indicates tight labour market conditions. Electrical engineers
are one of the key high priority occupations for the RITC industries. In
the absence of additional projects being commissioned demand for
electrical engineers will remain strong in the period to 2018 driven by
project maintenance and shutdown requirements and rapid changes in
technology.
Career progression into management and senior management positions
also add to the high demand across the WA resources sector. Skilled
migration has reflected the decline in domestic university engineering
graduates and the need for electrical engineers based on their
permanent and temporary visas over more than a decade. The decline
in temporary visas issued in recent years are a reflection of changes to
457 visa entry arrangements rather than a declining need for this
occupation.
233512 Mechanical
Engineer
In terms if RITC coverage, mechanical engineers are employed across
the mining, oil and gas and downstream process manufacturing
industries. Typically, mechanical engineers are engaged in large
numbers during the design and initial construction of resources projects.
Despite this demand for mechanical engineers will continue during the
production and maintenance phases as projects transition from
construction over the short to medium term.
Although WA has one of the highest retention rates for engineers in the
country, only about 60 per cent of engineers are employed in
recognized engineering occupations, many moving away from
practicing directly in their discipline into senior management positions
particularly in the resources sector. Together with the breadth of
occupational reach and decline in recent university graduates, these
have led to employers expressing difficulty in recruiting competent,
experienced mechanical engineers across resource sector projects and
turning to migration as a source of skilled mechanical engineers.
233513 Production or
Plant Engineer
It is likely this occupation will remain in high demand over the next five
years as more projects become operational across the country in both
mining and oil and gas industries. In a world of rapid technological
change, the need for experienced production engineers is critical as the
mining industry ramps up production, the oil and gas plants come online
and manufacturing employs engineers across most industry areas for
their wide range of analytical and problem solving skills to propel it into
the next growth area in the Australian economy.
Given the extensive education, specialization and experience required
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for employment into these roles, production and plant engineers will
remain in high demand particularly across onshore and offshore
production and processing operations. As Australia’s mining and oil and
gas industries continue the transition into production, these roles will
become increasingly critical and reliant on migration to meet demand.
233611 Mining
Engineer
(excluding
petroleum)
Reliance on skilled migration has shown Australia has persistent
difficulty in producing enough skilled mining engineers. Mining
engineers are the most advertised position in the sector. This shortage
is particularly acute in Western Australia given that a first class mine
manger’s qualification is required to practice in this state.
In 2013-14 permanent visas granted for mining engineers increased by
close to 20 per cent to meet demand. There is a long lead time
associated with the mining engineering occupation. Despite numerous
attempts to promote mining engineering industry to young people,
Australia is still not producing enough graduate mining engineers to
meet the demand of the mining industry and consistent skill shortages
are present in this sector.
234912 Metallurgist Metallurgists research, control and develop processes that are used in
extracting minerals from ore for refining metals working at mines,
mineral processing sites, laboratories and research centres. Given that
metallurgists are a specialist occupation requiring in-depth knowledge
at different stages of production and processing and considering the
long education lead time and experience required, employer comments
suggest shortages of experienced and socialist workers are emerging
and will be felt for some time, especially when rapid resource project
expansion in WA is taken into consideration.
312312 Electrical
Engineering
Technician
In the next few years, numerous mining and oil and gas projects will
enter the construction phase, for which high numbers of electrical
tradespersons will be required. As the projects enter the operations
phase electrical engineering technicians will still be in demand for
maintenance positions, working closely to support electrical engineers.
Enterprises have expressed difficulty in resourcing these highly
technical occupations in a context of growing operational demand
across the mining and oil and gas sectors. It is highly likely that this
occupation will remain in high demand in the long term, as a
consequence of high project demand and limited labour pools in WA.
312412 Electronic
Engineering
Technician
Electronics trades are an area of skill shortage across the RITC
industries. Electronic engineering technicians are consistently in high
demand in the WA resources sector with high numbers of vacancies for
experienced workers. It is highly likely that this occupation will remain in
high demand in the longer term, to support the work of electronics
engineers and engineering technologists.
312911 Maintenance
Planner
Increasing automation and the transition of resources projects from
construction to operation will intensify demand for maintenance planers.
A current focus on containing costs and maximising productivity in an
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operational and maintenance context will place a premium of
experienced maintenance planners in the resources sector context. In
announcing their 2012-13 financial results, BHP Billiton attributed cost
reduction and productivity increases to improvements that have been
made in equipment maintenance management. Considering a
significant number of maintenance planners come from a trade
background, the tightness of labour market for trades across the
resources sector and other industry areas is thought to have an impact
on supply for maintenance planners.
312913 Mine Deputy Experienced and competent mine deputies and mine managers are
essential in resource development projects and as industry transitions
from operation to production it requires these managers to oversee this
period of change. This is a highly specialised occupation and there are
often high numbers of vacancies for candidates with the requisite level
of experience. The Resources Sector Skills Needs 2013, indicates a
shortage of experienced workers for resources related activities
amongst certain management, professional and technical occupations
(production manager (mining), mining engineer, petroleum engineer,
geologist, metallurgist, metallurgical or materials technician and mine
deputy).
321111 Automotive
Electrician
The resource sector's heavy utilisation of fixed and mobile plant on
resource projects, requires significant and regular maintenance by
qualified and competent automotive electricians and other heavy
vehicle mechanics. Increasing automation across mining equipment
and the use of sophisticated systems is resulting in increasing demand
for automotive electrical services. According to the Resources Sector
Skills Needs 2013, although relatively few automotive trades workers
are employed in mining, automotive skills are key to the sector
(particularly automotive electricians and motor mechanics). Although
labour market for these occupations eased in Western Australia,
conditions remain tight, with demand for these trades from the
resources sector contributing to more general shortages, especially in
regional areas.
321212 Diesel Motor
Mechanics
Diesel motor mechanics, or heavy vehicle mechanics, are constantly in
high demand from RITC industries. A variety of heavy and light duty
equipment utilized in the mining industry needs maintenance and
production platform facilities have an increasing need for highly skilled
mechanics with a maintenance, shutdown or overhaul background
within LNG facilities, oil refinery and complex process plant facilities.
It is very likely that diesel motor mechanics will remain highly sought-
after by the mining, oil and gas and to some extent by the downstream
process manufacturing areas in the future, particularly as projects
commence production and automation becomes more prevalent in the
sector. AWPA’s Resources Sector Skills Needs 2013 examines existing
and projected supply of skills from 2013 to 2018. The report indicates
an increase in demand among the technical and trades workers and
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machinery operators and drivers occupations, highlighting motor
mechanics a one of the occupations in high demand throughout the
period. With a skill set applicable across industry groups, it is a skill set
for which there are permanent job vacancies, as reported by AMMA in
June 2013.
341111 Electrician
(general)
As the projects transition into the operations phase electricians will still
be in demand for maintenance positions, particularly those holding
engineering based electrical qualifications. Given the number of
projects under construction and operation in Australia (8 mega projects
under construction in Australia, valued at more than $5 billion and 44
projects at the Committed Stage with a combined value of $228 billion,
of which $116 billion is in Western Australia), the significant number of
electricians in training will result in critical shortages in the period 2015
to 2018. Already enterprises have expressed difficulty in recruiting
experienced electrical workers, complementing their existing trade
apprenticeship programs. Increasing use of technology on resources
projects will see strong demand for electrical and instrumentation skills
continue into the medium to long term. It can be expected to intensify in
the longer term.
341112 Electrician
(special class)
Electricians (special class) play a crucial role in large scale projects, in
particular those in the resource development sector, where they
maintain the raft of electrical infrastructure on site. With the introduction
of new technologies to mitigate operational costs, the skills of
electricians and instrumentation tradespeople for installation and
maintenance purposes will continue to grow. Enterprises have
expressed difficulty in recruiting experienced electrical/instrumentation
workers. According to AWPA’s Resources Sector Skill Needs 2013
report, electricians comprise 3% of total mining industry employment.
As projects commence operations (particularly oil and gas projects)
demand for special class electricians is anticipated to remain firm.
Given the number of projects under construction and operation in
Australia the significant number of electricians in training will result in
critical shortages in the period 2015 to 2018.
342315 Electronic
Instrument
Trades Worker
(special class)
This occupation has been highlighted as an area of skill shortage
across the RITC industries, in particular the mining and oil and gas
production industries. The technological sophistication of the oil and gas
sector will mean demand for electrical and instrumentation tradespeople
and process operators will remain high. Further, an increasing
automation and mechanisation of processes within the industry can be
expected to see an increase in demand for a range of skills. In a mine
site environment, the mechanical/industrial context of the metals and
engineering electrical qualification is likely to provide a better fit than
electrical qualifications with a largely domestic context to their structure
and delivery. External research of job vacancies by AMMA has
indicated that this is an occupation for which there are permanent
vacancies, indicating severe skill shortages for this occupation. The
Hays Quarterly Report October – December 2014 sees Australia is on
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the verge of an exceedingly tight labour market for some highly skilled
professionals in high skill industries, including petroleum engineers,
maintenance and production supervisors with instrumentation
technicians and heavy diesel fitters particularly sought after in Western
Australia.
731311 Train Driver AWPA’s Resources Sector Skills Needs 2013 examines existing and
projected supply of skills from 2013 to 2018. The report indicates an
increase in demand among the technical and trades workers and
machinery operators and drivers occupations, with a high demand
throughout the period for motor mechanics and train and tram drivers,
specifically referring to freight trains with employment growing from 634
workers in 2013 to 686 workers in 2018.
Smooth and efficient logistical operations are key to ensure a timely and
efficient pit to port process for resources sector companies. As such,
access to skilled and experienced train drivers is part of the formula.
Train drivers are often in demand by resources sector companies in the
north west who rely on timely and efficient pit to port operations.
Previous recruitment difficulties have led to strong wage rises for this
sector which may not be sustainable in the long term.
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In addition to the focus list, the following were also submitted within the non-focus list:
Submission to SPOL 2015 – Non Focus List
ANZSCO Occupation Comments
133513 Production
Manager
(mining)
Production managers are essential in resource development projects
particularly for the vast iron ore mines in the Pilbara. Mining companies
are experiencing difficulties in recruiting for this senior position which
requires extensive knowledge, skills and experience in similar
conditions. This demand is expected to continue particular during
periods of expansion in the sector.
233111 Chemical
Engineer
Shortages of engineering professionals, and chemical engineers in
particular are clear across the three RITC industry areas. The raft of
projects in the pipeline indicate that the specialist and technical
knowledge of chemical engineers will be in demand across the state, as
evidenced by industry consultation and the considerable number of job
advertisements for this occupation online.
Engineering skill shortages are common in the WA resources sector
across multiple disciplines. The time lag for graduate engineers to
progress to skilled professionals is also a factor for resource sector
companies.
233212 Geotechnical
Engineer
Shortages of engineering professionals are evident in the mining and oil
and gas sectors, in high demand across WA. Geotechnical engineers
are in high demand particularly in the coal and metallurgical mining
industries, working closely with geoscientists in the exploration and
production phases of the project, especially as resource development
projects begin to target the extraction of more mature and
geotechnically complex ore bodies.
Resource development projects in the pipeline across commodities in
WA indicate that demand for geotechnical professionals will continue to
increase. Furthermore, the mature ore bodies in WA present their own
technical difficulties that need to be mitigated by geotechnical engineers
on a daily basis.
234211 Chemist There are consistent shortages across RITC industries for technically
competent and experienced chemists, who are in high demand across
the state in the mineral and hydrocarbons industry and the downstream
process manufacturing industry, with particular emphasis on the
manufacture of organic and inorganic chemicals.
Forecasts for skilled labour across Australia suggests chemists will long
be in high demand by the industry. Skilled labour is a supplement to this
issue in the short term but in the long term encouraging science as a
career pathway should be encouraged.
311411 Chemistry
Technician
Chemistry and laboratory technicians work closely with laboratory
managers or supervisors to carry out the specialist testing requirements
of the laboratory's clients fuelled by the demand from WA’s mining
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industry for mineral assay laboratories or more generally in forensic,
pathology or food testing laboratories. The ageing population will see a
greater demand for medical testing and analysis to be performed and
this will higher level laboratory skills.
The current transition from construction to operations across the
resources sector will cause significant increase in demand for
laboratory services associated with assaying and QA of mineral
products. Also, industry activity in the upstream resource sector, which
is a key source of business for the laboratory operations industry, is a
strong indicator that demand will continue.
An increasing focus on technology (automated sample analysis) is
changing the nature of qualifications demanded by industry. In
automated laboratories, the bias in qualifications is moving towards
higher level VET qualifications with these people being typically
supervised by a tertiary qualified professional. This is not reflected well
in the SPOL.
312311 Electrical
Engineering
Draftsperson
This profession is in shortage particularly in large resource development
projects such as the iron ore mines in the Pilbara which require a
draftsperson to support the work of the electrical engineers. The
technical expertise and understanding required to work as a skilled
electrical engineering draftsperson in the resources development sector
is not always easy to source locally, especially with the concurrency of
project activity in WA. It is highly likely that this occupation will remain in
demand in the long term, especially following the significant number of
new projects to 2020.
312411 Electronic
Engineering
Draftsperson
Electrical tradespersons are in high demand in the RITC industries
through construction and operation of projects. Working with electronics
engineers and engineering technologists, this occupation is essential in
the creation of drawings and plans to support the technical expertise of
engineers. Enterprises have already expressed difficulty in sourcing this
technical expertise and it is likely that this will worsen as more
companies adopt autonomous processes as part of their operations.
With the increase in project activity in WA, coupled with the increasing
use of automation in the industries, electronic engineering draftsperson
are likely to remain in high demand.
511111 Contract
Administrator
As reported at the 2015 AOG conference, some roles which do not
have a standard qualification, such as contract administrators or
contract or procurement managers, are crucial roles within a project. A
2014 report by Ernst & Young, Five things – Getting the basics right in
procurement, observe that there continues to be a mismatch in the
supply and demand of high quality procurement professionals in the
market and believe that the market fundamentals will not change in the
short term. These administrators are fundamental enablers of business
strategy for achieving sustainable cost reductions. In a marketplace with
low commodity prices, new contract and project management strategies
are needed to manage major projects in the resources industry. Skilled
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administrators improve productivity and the bottom line through
improvements in workplace practices which result in operational
efficiencies. They are critical to achieving supply chain optimization. As
reported by Mining Australia companies are faced with developing
solutions to meet reduced operating and maintenance budget without
compromising on quality, safety and equipment performance. The 8
mega projects under construction in Australia have significantly
increased the demand for experienced project managers and
administrators. It is now that investment needs to be made in supporting
pathways for project administrators and managers to ensure that we
have necessary stocks of experience to deliver the next phase of
investment in Western Australia's resources sector.
511112 Program or
Project
Administrator
AWPA report and The October 2013 BREE Resources and Major
Projects report contain information that is relevant to this occupation.
According to the BREE report, of committed investment in 2008, only 34
per cent of investment was in "mega projects" (projects over $5 billion).
By October 2013 this proportion had more than doubled to 82 per cent.
This shift towards mega projects has significantly increased the demand
for experienced project managers and administrators. It is now that
investment needs to be made in supporting pathways for project
administrators and managers to ensure that we have necessary stocks
of experience to deliver the next phase of investment in Western
Australia's resources sector.
591116 Warehouse
Administrator
The transition from construction to operations across the resources
sector will alter the skills mix required by the sector. The production
phase will bring increased operational requirements that will cause an
increase in demand for warehousing facilities and associated
occupations such as warehouse administrators. The likelihood of a
marine supply base being established in the Kimberley to deal with
FLNG projects off Western Australia will create further regional demand
for warehouse administration occupations.
In addition to these occupations, the following have been identified as being of priority to the industry:
ANZSCO Occupation Comments
311000 Laboratory
Manager
Laboratory managers work across a wide range of industries including
mining, construction, health, professional services and education. They
work closely with and supervise chemistry technicians working in
laboratories. The shift of the resources industry moving into operations,
industry activity in the upstream resources sector, higher skills required
in more automated laboratories and the demands of an ageing
population will continue to drive the need for laboratory managers
across industry groups.
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3.10 Workforce Development Opportunities
According to CEDA’s latest workforce report the next wave of the industrial revolution will require life-
long learning, broad competencies and deeper technical skill development with workers needing deep
computer literacy and digital skills to grow their competitive advantage as the global supply of skilled
labour increases. This will require a coordinated effort by industry, the education and training sector and
government to ensure Australia’s governing education regulatory framework and policies help workers
develop the required skill sets67. The report argues that the skills being taught need to instill broad
competencies particularly in the VET sector to strike a balance between skills delivery matching industry
need and the provision of learning that has long term relevance.
Each year the RITC undertakes strategic project work to address current and emerging skills and
workforce development issues in the Western Australian resources sector.
For many areas of surface mining activity, the productivity agenda has required a fundamental re-think
of training and skilling strategies that are focused around issuing of qualifications. While in some areas
a full qualification pathway is appropriate and relevant (eg trade areas), for many areas of machine
operation companies are finding full qualifications are seeing operators participating in skill development
not immediately relevant to their job role. This results in lost tonnes of production and unnecessary
costs being borne by business. The RITC will be undertaking further research into the application of skill
sets in a regional context during 2015/16.
3.11 VET Training Data by Qualification
3.11.1 Pre-Employment
In order to outline trends in pre-employment training in the mining industry, additional analysis of certain
institutionally-based training (IBT)68 has been undertaken, specifically for the RII09 Resources and
Infrastructure Training Package.
SkillsDMC has specifically designed the RII09 Certificate I and Certificate II programs to provide
learners with the knowledge to gain entry level employment in the mining, drilling, civil construction and
quarrying industries69. The courses are targeted at both mature age and young people as pre-
employment and VET in Schools programs70.
Although these courses are designed for new entrants to the sector, SkillsDMC stipulates that a 2 week
work placement is part of the training course, during which participants will be trained and assessed on
the job71.
67 CEDA, Australia’s Future Workforce, June 2015 68
National Centre for Vocatonal Education Research (NCVER), VOCSTATS DataCube, Apprentice and Trainee Data, October
to December 2014. This data only includes VET funded by the Department and has no ACE or fee for service VET delivery
from STPs or other providers. 69
http://www.skillsdmc.com.au/resources/certificate_i_and_ii 70
ibid 71
ibid
Page 47 of 76
Figure 10: RITC VET Enrolments for the RII Training Package
Source: Department of Training and Workforce Development, June 2015
Following a period of growth, the figure above indicates a decline in Certificate II qualifications between
2013 and 2014. This is likely due to a contraction of employment opportunities across that time. Of note
is the very low take-up in higher level VET qualifications across the mining sector.
3.11.2 Apprenticeships and Traineeships
In the resources sector the number of apprentices and trainees (including oil and gas extraction and
petroleum exploration) has grown 382 per cent in the 10 years to 2014. December 2014 figures
indicate there were 3,750 mining apprentices/trainees in WA, representing 9.36 per cent of all WA’s
apprentices/trainees. This is an increase of 3.8 per cent compared to the same period in 201372.
technicians and trades workers continue to make up the largest group representing 65 per cent of the
resources sector in training apprentices and trainees (2,454), followed by machine operators and
drivers at 17 per cent (635).
72
National Centre for Vocatonal Education Research (NCVER), VOCSTATS DataCube, Apprentice and Trainee Data, October
to December 2014
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2010 2011 2012 2013 2014
RITC VET Enrolments for RII Training Package
524 Certificate I
521 Certificate II
514 Certificate III
511 Certificate IV
421 Diploma
411 Advanced Diploma
Page 48 of 76
Figure 11: Apprentices and Trainees in the Western Australian Mining Industry
Source: NCVER, December 2014
Figure 11 shows the breakdown of this growth in apprentices and trainees by industry subdivision,
which is clearly in the area of exploration and other mining support services. Other mining support
services73 employs 69 per cent of all apprentices and trainees in the Western Australian mining
industry. This sector has seen much lower levels of activity as the mining industry controls costs and
goes through a period of rationalisation. As a result, it is expected the number of apprentices and
trainees in training across mining support services would have fallen in 2015.
When the apprentice and trainee numbers are analyzed by occupation, the concentration of technicians
and trades apprentices and trainees is clear, with 65 per cent of all apprentices and trainees in the
Western Australian mining industry engaged in this group, as shown in Figure 12. Figure 13 then
compares this occupational breakdown with previous years, for the same quarter over 2012 to 2014.
73
The Australian Bureau of Statistics defines this industry grouping as units mainly engaged in providing mining support
services integral to the mining process […] including cementing oil and gas well castings, directional drilling and redrilling,
mining draining and pumping service and oil and gas field support service.
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Oct - Dec 2012Oct - Dec 2013Oct - Dec 2014
Apprentices and Trainees in Mining - WA
10 - Exploration and OtherMining Support Services
09 - Non-Metallic MineralMining and Quarrying
08 - Metal Ore Mining
07 - Oil and Gas Extraction
06 - Coal Mining
Page 49 of 76
Figure 12: Occupational Breakdown for Apprentices and Trainees in the Western Australian
Mining Industry
Source: NCVER, December 2014
Figure 13: Apprentices and Trainees in the Western Australian Mining Industry by Occupation
Source: NCVER, December 2014
2%
65%
10%
17%
6%
Occupational Breakdown for Apprentices and Trainees in the WA
Mining Industry Q4 2014
1 Managers
2 Professionals
3 Technicians and TradesWorkers4 Community and PersonalService Workers5 Clerical and AdministrativeWorkers6 Sales Workers
7 Machinery Operators andDrivers8 Labourers
Not known
0
500
1000
1500
2000
2500
3000
Oct - Dec 2012 Oct - Dec 2013 Oct - Dec 2014
Apprentices and Trainees in the WA Mining Industry by Occupation
1 Managers
2 Professionals
3 Technicians and TradesWorkers
4 Community and PersonalService Workers
5 Clerical and AdministrativeWorkers
6 Sales Workers
7 Machinery Operators andDrivers
Page 50 of 76
Figure 14 below shows the numbers of commencements, in-training figures and completions for the
mining industry. As can be seen, the number of mining industry apprentices and trainees in training has
been climbing since the December quarter 2012, peaking in the June quarter 2014 reflecting stronger
industry demand for these skills. Commencements have been falling since the beginning of 2014 with
completions remaining relatively steady over the three year period.
Figure 14: Mining Apprentices and Trainees in Western Australia
Source: NCVER, December 2014
3.11.3 VETiS
VET in Schools programs only form a small proportion of all institutionally-based training as shown in
the diagram below.
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Oct -Dec2012
Jan -Mar2013
Apr -Jun
2013
Jul -Sep2013
Oct -Dec2013
Jan -Mar2014
Apr -Jun
2014
Jul -Sep2014
Oct -Dec2014
Mining Apprentices and Trainees - WA
Commenced
In-training
Completed
Page 51 of 76
Figure 15: RITC IBT Course Enrolments
Source: Department of Training and Workforce Development, June 2015
Western Australia’s resources sector places a premium on experience, maturity and appropriate
behaviours (particularly safety behaviours) making it a daunting entry level prospect for school leavers
and students in Years 11 and 12. Outside of traditional apprenticeship and traineeship entry points,
there are few suitable opportunities for direct industry entry by school students. Changes to the RII
training package assessment requirements make it extremely difficult for RTO’s to service the VETiS
market without access to a workplace for assessment purposes.
More information on the RII assessment requirements review can be found by accessing the SkillsDMC
website – www.skillsdmc.com.au
3.12 Higher Education Pathways
3.12.1 Engineering and Geosciences
Since 1999, the MCA has assisted in the funding of the Minerals Tertiary Education Council (MTEC),
which fosters the partnership between industry, government and academia74, while at the same time
working to secure (the) supply of qualified earth scientists, mining engineers and metallurgists75.
MTEC currently works in association with different higher education institutions, including the University
of Western Australia (UWA) and Curtin University, to ensure this supply of skilled graduates for the
resources sector. Programs include:
1. Mining Education Australia (MEA)
2. Minerals Geoscience Masters (MGM)
3. Minerals Geoscience Honors (MGH)
4. Metallurgical Education Partnership (MEP)
The NRSET Final Report, published in 2010, indicated that the Australian resources sector was likely to
face significant shortages in mining engineers and geoscientists in particular, in the five years to 2016.
74
http://www.minerals.org.au/focus/mtec 75
MCA, MINAD Presentation, unpublished
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2010 2011 2012 2013 2014
RITC IBT Course Enrolments (MSA, MSL, PMA, PMB, PMC RII)
VET in Schools
Non VET in Schools
Page 52 of 76
Indeed, the taskforce estimated an annual shortage of 350 mining engineers and 600 earth scientists76.
With the changed industry operating environment, these shortages have not eventuated.
According to the AusIMM’s 2014 Professional Employment Survey77, the unemployment rate for mining
professionals increased in 2014 with high levels of unemployment being apparent across all disciplines
and all states and territories. In 2012, the AusIMM’s survey recorded unemployment rates amongst
mining professionals of 1.7 per cent. By 2014 this had risen to 12.2 per cent.
3.12.2 Other Professionals
The diverse Western Australian mining industry employs a wide range of professionals outside of the
traditional engineering and geosciences pathways. Increasingly, graduates in areas such as human
resources, environmental studies and in particular, workplace safety and health (WSH) are in demand.
In response to reported shortages of safety professionals in Australia, the Safety Institute of Australia
(SIA)78 and the Australian OSH Education Accreditation Board79 are working together to ensure that is
sufficient supply of highly skilled OSH professionals to lead and support the high numbers of OSH
practitioners. According to these agencies, OSH practitioners have undertaken the VET safety pathway
to Certificate IV or diploma in occupational safety and health (OSH), while OSH professionals have a
bachelor degree or above in safety.
3.13 Mining Industry Issues
Productivity
The resources sector will continue its export led growth, constrained by high production costs and lower
commodity prices. Operating in an increasingly competitive global market, its key focus will continue to
be managing costs, production efficiencies and production management. Innovative solutions are
needed to become more efficient and productive with technological advancements, automation and
data analytics seen as the key to our competitive strength, particularly for new projects. Initiatives and
agendas need to continue to focus on improving the regulatory environment to address cost pressures
and ensure labour productivity increases. Already work is being done to support areas of competitive
strength such as mining equipment, technology and services (METS) and improving collaboration
between industry, science and research to ensure Australia is a part of global supply chains.
Cost of Doing Business
It is imperative Western Australia’s resources industry maintain its competitiveness and with overseas
producers. Australia’s decline in cost competitiveness is largely attributed to high labour costs, decline
in labour productivity, input costs and regulatory settings. In order to retain their operating cost
advantage and remain competitive, companies are turning to innovative solutions to address the cost of
doing business, process advancement and productivity gains. The future will see a continued
transformation towards technology, automation and data analytics to improve whole business
operations and boost productivity. Continued regulatory reform, particularly in relation to access to
resources, will continue as a priority to further reduce red tape and the cost of doing business for the
mining industry.
76
Australian Financial Review, as quoted in Miners study plan for associate degree, Monday 30 April 2012 77
Australasian Institute of Mining and Metallurgy, The AusIMM Professional Employment Survey 2014 – an analysis of
professional employment in the minerals sector, September 2014. 78
http://www.sia.org.au/ 79
http://www.ohseducationaccreditation.org.au/about.aspx
Page 53 of 76
Automation
The adoption of automation technology in the resources development sector is growing. Automation of
equipment and processes will boost productivity, improving the quality and quantity of output. Remote
operations centres where companies can view the entire operation facilitate the continual improvement
of processes and decision making. The analysis of huge amounts of data that automation delivers, and
the interpretation of this data to make process changes, will realize further productivity gains. This shift
towards technology is growing industry sophistication and making the sector progressively more reliant
on higher skills.
Training
A flexible, responsive and innovative VET sector to train and up-skill local resources sector workforce is
essential to maximise labour productivity. To ensure the workforce is able to respond to the challenges
of a more complex operating environment and a growing demand for higher skills, training packages,
the vocational training provision and delivery of training must be timely, fit for purpose, relevant for
employers and led by industry needs. It is becoming increasingly apparent training in skill sets aligns
more closely with many roles in the resources sector.
Sustainability
To mitigate the potential long term risks of skills shortages, attrition and workforce impact, it is important
skilled workers are encouraged to remain in the mining workforce to ensure appropriate transfer of
knowledge to less experienced staff through training and mentoring. In order for both the industry and
the nation to prosper long term and address the needs of the future, we need to encourage broader and
more diverse workforce participation.
Although the numbers of women employed in the mining industry has increased over the past decade,
more needs to be done to increase and support women’s workforce participation and progression into
the sector as a means of addressing skills challenges and innovation. CME’s 2015-2025 Resources
Sector Outlook forecasts a 1.5 per cent increase in employment of women in the industry over the
period to 2020 but a collaborative effort is needed to meet future workforce challenges. Australian
governments recognise the social and economic benefits of increasing female workforce participation
and including them in the future skills pipeline with a focus on initiatives to increase the number of girls
undertaking STEM subjects at school and promote and improve rates of women into engineering. The
Filling the Pool Report provides many recommendations to addresses this further80.
The representation of Indigenous Australians in the resources sector has more than doubled since 2006
and is set to increase by 2.3 percentage points by 2020. As Indigenous Australians are most commonly
employed in semi-skilled roles, the next challenge will be progressing these workers into higher level job
roles. It is important we ready these workers for the next wave of roles and ensure they have the skills
and capabilities to thrive in an environment centered around innovative technologies. Fundamental to a
greater participation of Indigenous Australians in employment is the need to improve educational
attainment of Indigenous people and this will need further reform and collaborations of all stakeholders
to assist effective future outcomes.
Sustainability in the industry means looking forward to ensuring the industry is on the radar of young
people making career decisions. Much good work has been done by organisations in the mining
industry (CME, MCA) in establishing mechanisms to provide appropriate advice regarding careers and
the industry in general. With changes to the education system in Western Australia placing a greater
80
Committee for Perth, Filling the Pool Report, June 2015
Page 54 of 76
focus on vocational pathways in school, it is timely to review strategies and mechanisms to determine if
more can be done in this area.
Page 55 of 76
SECTION 4 INDUSTRY ISSUES AND STRATEGIES
Skilling WA: Strategic Goal 1
Increase participation in the workforce particularly among the under-employed and disengaged, mature-aged workers, Aboriginal and Torres Strait
Islander and other under-represented groups.
Issue (from Section 3) Strategy Skilling WA
Priority Action
Greater Female Workforce Participation
The RITC industries are traditionally male-
dominated, with major occupations in these
sectors also having a higher proportion of men
than women. Although the female workforce
participation for these industries is increasing,
attracting and retaining more women in the RITC
industries is a means of addressing skills
challenges. The latest CME Resources Sector
Outlook 2015-2025 estimates that in the period to
2020, the participation of women in the resources
sector will increase by only 1.5 percentage
points.
The RITC will continue to champion greater female workforce participation
in the Western Australian mining industry through independent consultation
and communications channels.
In addition:
The RITC will participate in industry groups and Committees, such as
the Chamber of Minerals and Energy’s Women in Resource Reference
Group, to consult with key industry partners with the aim of promoting
different approaches to increasing the participation of women in the
industry, such as job share arrangements.
1.1.1 – Industry
leadership in
workforce
participation
1.2.6 – Workforce
participation of
under-
represented
groups
Greater Indigenous Workforce Participation
Employment and up-skilling of Indigenous
Australians across the RITC industries remains
an area of focus. Although workforce participation
rates have increased since the 2006 Census,
there remains more work to be done. CME’s
Resources Sector Outlook 2015-2025 estimates
that by 2020, the share of Aboriginal Australians
in the Western Australian resources sector will
The RITC will continue to promote greater employment and up-skilling of
Aboriginal Australians in the mining industry through independent
consultation and communications channels. In addition:
The RITC will continue to promote the learnings of the FastTrack pilot
program to government and industry representatives to assist
employers recruit and up-skill greater numbers of Indigenous
Australians in the future.
The RITC will continue to promote the Aboriginal Workforce
Development Centres and other state-driven approaches in the
1.1.1 – Industry
leadership in
workforce
participation
1.2.6 – Workforce
participation of
under-
Page 56 of 76
increase by 2.3 percentage points. The mining
industry is currently the largest private sector
employing industry of Aboriginal Australians in
the state.
‘Training Together Working Together’ initiative to promote training and
employment of Indigenous Australians in Western Australia to industry
partners.
RITC will remain engaged around the implementation of
recommendations from the Forrest Review.
RITC will work with CME in initiative development around career/job
progression of Indigenous Australians in the mining industry in
Western Australia.
represented
groups
1.3.1 – Training
together –
working together
Page 57 of 76
Skilling WA: Strategic goal 3
Attract workers with the right skills to the Western Australian workforce and retain them by offering access to rewarding employment and a
diverse and vibrant community and environment to live in.
Issue (from Section 3) Strategy Skilling WA Priority
Action
Accessing and Retaining a Skilled Labour Force
The Western Australian RITC industries continue to
experience challenges in accessing and retaining the
appropriately skilled labour required in a timely and
cost-effective manner.
The RITC will continue to promote careers in the
RITC industries to young people and more mature
people with a focus on young people.
3.1.1 – Industry leadership
in attraction and retention
Page 58 of 76
Skilling WA: Strategic Goal 4
Provide flexible, responsive and innovative education and training which enables people to develop and utilize the skills necessary for them to realize
their potential and contribute to Western Australia’s prosperity.
Issue (from Section 3) Strategy Skilling WA
Priority Action
Quality and Flexibility of Delivery
A flexible, responsive and innovative VET sector is
essential to develop and up-skill the local resources
sector workforce with the skills required. In the
coming years the sector’s skill requirements will adapt
following the adoption of greater automation
technology and the move from construction to
operations phase for many resource development
projects. To ensure the workforce is able to respond
to these challenges, the VET sector must also
respond innovatively to industry changes and be led
by industry needs.
Currently there are concerns among industry
representatives regarding the VET sector. Quality
issues, depth of provider market and capacity of the
VET sector to provide the training required are
leading to a lack of industry confidence in current
vocational training provision and delivery of training
that is not fit for purpose and relevant for employers.
There are also concerns emerging relating to training
packages, qualification content and assessment
requirements, particularly in relation to high risk work
training delivery and assessment.
The RITC will continue to broker greater industry involvement in
Training Package development and training delivery, through:
The RITC will work with SkillsDMC to promote stakeholder
feedback mechanisms and ensure that industry representatives
play a role in Training Package development.
The RITC will provide forums for industry and RTO
representatives to highlight industry changes and opportunities
and discuss any changes in the industry or VET environment.
The RITC will participate in various industry and training advisory
networks to promote best practice in training and workforce
development.
Assess the applicability of existing training package structures to
RITC industries more broadly and determine what changes might
be necessary for training products to remain relevant to RITC
industries in a future context.
Project to promote aspects of best practice in the delivery and
assessment of high risk work training to industry.
Participate in the TAC high risk work strategic industry audit and
undertake work to inform industry of critical aspects relating to
high risk work training delivery, assessment and verification of
competence processes.
Promote the SkillsDMC quality tool and quality criteria as a means
of industry taking a greater role in the vocational education and
training quality assurance processes for the mining industry.
4.2.1 – Industry
leadership in
training
Page 59 of 76
Skill Sets
Current qualification structures and funding guidelines
may discriminate against more flexible and innovative
training solutions that are applicable to the resources
sector context and therefore make a more direct
contribution to raising industry workforce productivity.
Often, training providers and employers are choosing
to train people in full qualifications for funding reasons
even if the qualification doesn’t align with job role or
need.
The RITC will promote flexible, innovative and fit for purpose training
models to respond to skill demands identified by the RITC industries.
The RITC will undertake a pilot project to examine an approach to
skill sets in a regional area within the Western Australian policy
and funding framework.
The RITC will lobby DTWD to ensure DTWD funding and provider
processes do not discriminate against a skill sets agenda.
The RITC will lobby DTWD to capture and report skill sets activity
as part of its commitment to AVETMISS reporting under full-
activity reporting requirements.
4.1.1 – Flexible,
responsive and
resilient
apprenticeship
and traineeship
system
4.2.1 – Industry
leadership in
training
Impact of Automation Technology
As outlined in the recent RITC work on automation
and its skill impacts, the adoption of automation
technology in the resources development sector is
growing. The impact upon the sector’s skill
requirements and potential productivity gains are
significant and will influence industry and the VET
sector in the coming years.
A focus now needs to be placed on the development
of VET products and provider capacity and capability
in this area to meet industry demand for automation
related skills.
The RITC will promote the automation work done to date to
industry and training providers through the development of
specific summary documents relating to report outcomes and next
steps.
The RITC will continue to work with providers and industry to
ensure a capacity and capability exists to respond to industry’s
demand for skills relating to increased automation across the
mining industry.
4.2.1 – Industry
leadership in
training
Page 60 of 76
Electrical Licensing
The Western Australian resources sector needs
access to a relevant engineering based electrical
qualification that will meet electrical regulator
requirements for issuance of an electrician’s licence.
The RITC will promote the new industrial electrician qualification
which has been endorsed by states and territories, the
commonwealth and Western Australian electrical regulator.
The RITC will also work with MSA to roll out a series of
professional development sessions for metropolitan and regional
training providers around how to deliver the new qualification, its
assessment requirements and also learning resources and
associated assessment tools and resources.
4.2.1 – Industry
leadership in
training
4.2.1 – Industry
leadership in
training
Page 61 of 76
Skilling WA: Strategic Goal 5
Plan and coordinate a strategic state government response to workforce development issues in Western Australia.
Issue (from Section 3) Strategy Skilling WA
Priority Action
The Cost of Doing Business
More broadly, the declining cost competiveness of the
Western Australian resources sector in recent years
adds a further dimension to the capacity of employers
to access skilled labour. In this environment, it is
essential government not impose unnecessary
regulation or legislative requirements that will place
additional financial burdens on the resources sector.
The RITC supports the position of CME on cost competitiveness in
the Western Australian resources sector and its potential impact
on productivity and the workforce.
The RITC will support industry approaches to the promotion of
FIFO as a legitimate work practice necessary for the resources
sector to operate in the most efficient and effective way and as a
mechanism for providing choice to its workforce and meeting
current and potential employees lifestyle demands.
The RITC will engage with relevant Regional Development
Commissions around implementation of their blueprint strategies
and also regional development workforce alliances.
5.2.1 – Cross
government
planning and
collaboration
Page 62 of 76
SECTION 5 RECOMMENDED PRIORITY ACTION PLAN
Skilling WA Strategic Goal 1: Increase participation in the workforce among the underemployed and other disadvantaged groups.
Strategy from Section 4: The RITC will continue to champion greater female workforce participation in the Western Australian mining industry
through independent consultation and communications channels.
Recommended Priority Action(s) Steps to Implement Actions Priority Date to be
completed
CME identified in its Resources Sector Outlook 2015-2025 the
share of women in the Western Australian resources sector is
forecast to increase by 1.5 percentage points by 2020. In this
context, and in a sector transitioning from construction to
operations, it is important to examine matters that may affect
sustainability within the resources sector workforce.
Maintain involvement in the CME Women in
Resources Committee.
Support other gender diversity initiatives
progressed by CME and SkillsDMC.
Promote careers in the resources sector and
STEM pathways to girls through VET in schools
initiatives.
High
2014/15
Page 63 of 76
Skilling WA Strategic Goal 3: Accessing and retaining a skilled labour force.
Strategy from Section 4: The RITC will continue to promote careers in the RITC industries to young people and more mature people.
Recommended Priority Action(s) Steps to Implement Actions Priority Date to be
completed
In partnership with its joint venture partner, the Chamber of
Minerals and Energy of Western Australia (CME), the RITC will
explore a range of issues relating to the resources sector and
career development for young people.
Develop a project scope to gauge young people’s
perspectives of the mining industry and career/job
options available and to determine information
dissemination models which align to young
people’s expectations and preferences.
Determine what are the best vehicles for industry
to engage with young people including existing
models of engagement currently in place.
Based on project outcomes, examine readily
available materials which support young people in
making career decisions.
Determine opportunities for further resource
development.
High
June 2016
Page 64 of 76
Skilling WA Strategic Goal 4: Flexible, responsive and innovative education and training.
Strategy from Section 4: Participate in the TAC high risk work strategic industry audit and undertake work to inform industry of critical aspects
relating to high risk work training delivery, assessment and verification of competence processes.
Recommended Priority Action(s) Steps to Implement Actions Priority Date to be
completed
The resources sector has expressed concern about the
voracity of high risk work training delivery and assessment
in Western Australia. There is a view existing processes
lack rigour and do not produce competent people capable
of working safely on resources sector projects in Western
Australia. Regulators have expressed a view some
industry actions and behaviours exhibited during the last
resources sector cycle may have contributed towards poor
outcomes.
RITC to participate in TAC high risk work strategic
industry audit.
RITC to examine the issue of industry practices which
may have contributed to poor high risk work licence
training delivery and assessment outcomes.
Undertake a project to develop a resource for the
sector which identifies best practice in high risk work
training delivery and assessment and draws on the
SkillsDMC quality criteria work to assist industry in
developing mutually beneficial relationships with RTOs
leading to positive quality outcomes.
High
March/April
2015
Page 65 of 76
Skilling WA Strategic Goal 4: Flexible, responsive and innovative education and training
Strategy from Section 4: The RITC will work collaboratively with the resources sector, training package developer, electrical regulator in WA and
relevant state government agencies in developing a new metals and engineering qualification that meets industry, VET and electrical regulator
requirements.
Recommended Priority Action(s) Steps to Implement Actions Priority Date to be
completed
The RITC will work collaboratively with MSA to ensure
appropriate professional development and support for the new
qualification is made available to training providers in Western
Australia servicing the resources sector.
Work with the electrical regulator to develop a
revised fact sheet on the new qualification and
necessary transition arrangements for distribution
in Western Australia.
Develop a program for professional development
activities for training providers in Perth and
regional Western Australia.
Develop industry familiarization sessions for the
new qualification.
Promote new electrical qualification through RITC
website and social media when endorsed by
Department of Industry and electrical regulator in
Western Australia.
High
December
2016
Page 66 of 76
Skilling WA Strategic Goal 4: Flexible, responsive and innovative education and training
Strategy from Section 4: The RITC will promote flexible, innovative and fit for purpose training models to respond to skill demands identified by
the RITC industries.
Recommended Priority Action(s) Steps to Implement Actions Priority Date to be
completed
The RITC will pilot an approach in a regional context to the
implementation of skill sets to specifically meet industry
demand for skills at the sub-qualification level.
Development of focus areas from a skills
perspective and alignment with existing units/skill
sets from nationally recognized training packages.
Engagement of regional employers in target areas.
Industry perspective on areas of skill deficiency
which could also be targeted.
Examination of funding and delivery policy issues.
Training delivery and assessment processes.
Evaluation of outcomes.
High
June 2016
Page 67 of 76
SECTION 6 PLAN ADMINISTRATION
Plan Contact
This plan is maintained by the Manager for the Resources Industry Training Council. Feedback
regarding this plan should be made in writing to:
a Email: [email protected]
b Mail: RITC, Locked Bag N984, Perth, WA 6844
c Fax: (08) 9221 3701
d Office phone number: (08) 9220 8538
Review Requirements and Issue History
Schedule 2 of the Service Agreement requires that this plan is reviewed and updated annually.
This issue entirely supersedes the previous issue of the plan. Superseded issues should be
destroyed, or clearly marked as superseded and removed from general circulation and the Training
Council website.
Issue No. Year Approved Comments/Summary of Main Changes
2 2014 Updated ABS data, training data, industry intelligence, strategies
and priority actions.
3 2015 Updated ABS data, training data, industry intelligence, strategies
and priority actions.
Distribution List
This plan is issued electronically on the Training Council website after it is approved. Print/paper
copies are provided as follows (if applicable).
This IWDP will be issued electronically via the RITC website, www.ritcwa.com.au. It will also be
forwarded through to the RITC Advisory Board.
Consultation for this Issue
The review of this issue of this plan was coordinated by the Manager for the Resources Industry
Training Council. This issue was updated/re-written as part of the annual review process and the
main round of consultation with industry representatives and the Resources Industry Training
Council Advisory Board occurred throughout 2015.
Over this period the committee invited comment from a range of stakeholders, at broad forums
such as the RITC/SkillsDMC Network meetings, as well as independent industry consultation.
Communications Plan Summary
Once the plan is approved, its update will be:
a endorsed by the Resources Industry Training Council Advisory Board
b noted by the Department of Training and Workforce Development
c posted on the Resources Industry Training Council website and promoted through
social media.
Page 68 of 76
Validation of this Plan
Arrangements in this plan will be validated within the annual review cycle through consultation with
the Resources Industry Training Council Advisory Board at the quarterly meetings.
Page 69 of 76
SECTION 7 LIST OF TABLES
This section should be used to provide a list of tables and graphs used within the main body of the
document.
Number Name of Table or Graph
Table 1: Investment in Major Projects (as at March 2015); Source: Department of Mines and
Petroleum 9
Table 2: Exchange Rates and Commodity Prices; Source: DMP 17
Graph 1: Iron Ore Price; Source: The Australian Financial Review, AFR Weekend, 4 May 2015 9
Graph 2: Australian Greenfields v Brownfields Metres Drilled; Source: Association of Mining and
Exploration Companies, Media Release, July 2015 19
Figure 1: WA Royalty Receipts 2014; Source: DMP and WA Treasury 18
Figure 2: Total Mining Employment by Western Australia by Industry Sub-division; Source: 2011
Census of Population and Housing 21
Figure 3: Western Australian Mining Industry Workforce by Occupation; Source: ABS May 2015 23
Figure 4: Employment Composition by Industry, 2011 and 2025 by Scenario; Source: AWPA
Discussion Paper from Deloitte Access Economics Modeling 24
Figure 5: Net Overseas and Interstate Migration in Western Australia; Source: ABS, 3101.0
Australian Demographic Statistics, Table 2: Population Change, Components – States and
Territories – Western Australia – December 2014 25
Figure 6: Average Female Participation Rate across the Western Australian Mining Industries;
Source: 2011 Census of Population and Housing 29
Figure 7: Western Australian Mining Workforce Age Profile; Source: 2011 Census of Population
and Housing 31
Figure 8: WA Mining Workforce Age Profile - Comparison of Different Industry Subdivisions;
Source: 2011 Census of Population and Housing 32
Figure 9: Mining Indigenous Participation Rate in Western Australia, compared with total
employment across each mining industry sub-division; Source: 2011 Census of Population and
Housing 33
Figure 10: RITC VET Enrolments for the RII Training Package; Source: Department of Training
and Workforce Development, June 2015 447
Figure 11: Apprentices and Trainees in the Western Australian Mining Industry; Source: NCVER;
December 2014 46
Figure 12 Occupational Breakdown for Apprentices and Trainees in the Western Australian Mining
Industry; Source: NCVER; December 2014 47
Figure 13: Apprentices and Trainees in the Western Australian Mining Industry by Occupation;
Source: NCVER; December 2014 47
Page 70 of 76
Figure 14: Mining Apprentices and Trainees in Western Australia; Source: NCVER; December
2014 48
Figure 15: RITC IBT Course Enrolments; Source: Department of Training and Workforce
Development; June 2015 51
Page 71 of 76
SECTION 8 GLOSSARY
The following terms that are used in this plan are particular to this Training Council.
Acronyms
Please note that all terms are written in full before acronyms are used.
ABS Australian Bureau of Statistics
ACEPT Australian Centre for Energy and Process Training
ADIA Australian Drilling Industry Association
AIP Australian Industry Participation
ANZSCO Australian New Zealand Standard Classification of Occupations
ANZSIC Australian New Zealand Standard Industry Classification
APLAC Asia Pacific Laboratory Accreditation Cooperation
APPEA Australian Petroleum Production and Exploration Association
AQF Australian Qualifications Framework
ASQA Australian Skills Quality Authority
AWDC Aboriginal Workforce Development Centre
AWPA Australian Workforce and Productivity Agency
AWRA Australian Women in Resources Alliance
BREE Bureau of Resources and Energy Economics
CME Chamber of Minerals and Energy of Western Australia
CMT Construction Materials Testing
COAG Council of Australian Governments
CPM Carbon Pricing Mechanism
DEEWR Department of Education, Employment and Workplace Relations
DIAC Department of Immigration and Citizenship
DIBP Department of Immigration and Border Protection
DIDO Drive-In/Drive-Out
DIISRTE Department of Industry, Innovation, Science, Research and Tertiary Education
DMP Department of Mines and Petroleum
DoI Department of Industry
DSD Department of State Development
DTWD Department of Training and Workforce Development
EAG Energy Apprenticeships Group
EATC Engineering Automotive Training Council
Page 72 of 76
EBT Employment-based training
EIS Exploration Incentive Scheme
EMAs Enterprise Migration Agreements
ENS Employer Nomination Stream
EOWA Equal Opportunity for Women in the Workplace Agency
EUPA Electrical, Utilities and Public Administration Training Council
FID Final Investment Decision
FIFO Fly-in/Fly-out
FLNG Floating Liquefied Natural Gas (facility)
GSP Gross State Product
HE Higher Education
IBT Institutionally-based training
ICNL Industry Capability Network Limited
ILAC International Laboratory Accreditation Cooperation
ILP Indigenous Leadership Program
IWDP Industry Workforce Development Plan
LAs Labour Agreements
LNG Liquefied Natural Gas
MCA Minerals Council of Australia
MEA Mining Education Australia
MEP Metallurgical Education Partnership
MGH Minerals Geoscience Honors
MGM Minerals Geoscience Masters
MINAD Minerals Industry National Associate Degree Program
MRRT Minerals Resource Rent Tax
MSA Manufacturing Skills Australia
MTEC Mining Tertiary Education Council
NATA National Association of Testing Authorities
NCVER National Centre for Vocational Education and Research
Nfd not further defined
NICNAS National Industrial Chemicals Notification and Assessment Scheme
NOLA National Occupational Licensing Authority
NOLS National Occupational Licensing System
NOM Net Overseas Migration
NRSET National Resources Sector Employment Taskforce
Page 73 of 76
NSSC National Skills Standards Council
NWS North West Shelf
OEM Original Equipment Manufacturer
OS&H Occupational Safety and Health
PACIA Plastics and Chemicals Industries Association
PwC PriceWaterhouse Coopers
RAP Reconciliation Action Plan
RITC Resources Industry Training Council
RMAs Regional Migration Agreements
RSMS Regional Skilled Migration Scheme
RSPT Resource Super Profits Tax
RTO Registered Training Organisation
SAMP Supplier Access to Major Projects
SIA Safety Institute of Australia
SIA Strategic Industry Audit
SPOL State Priority Occupation List
STP State Training Provider
TAC Training Accreditation Council
VET Vocational Education and Training
VETiS VET in Schools
VoC Verification of Competency
WASMOL Western Australian Skilled Migration Occupation List
WH&S Workplace Health and Safety
WIMWA Women in Mining Western Australia
WIP Work Innovation Program
Page 74 of 76
SECTION 9 APPENDIX
Appendix 1: Key RITC Industry Areas – Projected Economic and Activity Conditions
(Australia)
Source: IBISWorld, June 2015
ANZSIC Code
Industry Revenue 13/14 ($bn)
Annual Growth (09 - 14)
Annual Growth (14 - 19)
Businesses (#)
Activity in WA
WA Revenue*
($bn)
WA Businesses*
(#)
B0601 Black Coal Mining
41.0 -4.0% 2.9% 377 5.10% 2.1 19
B0700 Oil and Gas Extraction
41.1 5.8% 15.1% 24 70.00% 28.8 17
B0801 Iron Ore Mining 63.1 7.2% 5.4% 39 97.60% 61.6 38
B0802 Bauxite Mining 2.2 11.7% 2.1% 4 57.90% 1.3 2
B0803 Copper Ore Mining
6.6 1.2% 1.3% 69 18.90% 1.2 13
B0804 Gold Ore Mining 12.3 3.4% 1.4% 623 69.80% 8.6 435
B0805 Mineral Sand Mining
2.5 5.9% 3.4% 143 43.90% 1.1 63
B0806 Nickel Ore Mining
3.7 -3.8% 3.7% 34 71.80% 2.7 24
B0807 Silver-Lead-Zinc Ore Mining
5.0 2.0% 1.8% 39 8.20% 0.4 3
B0809
Manganese and Other Metal Ore Mining
2.6 -0.8% 1.4% 137 55.40% 1.4 76
B0911 Gravel and Sand Quarrying
0.7 0.7% 2.2% 405 7.30% 0.0 30
B0919 Rock, Limestone and Clay Mining
3.5 1.9% 2.1% 785 13.10% 0.5 103
B0991
Diamond and Gemstone Mining
0.5 -9.4% 5.7% 63 87.60% 0.5 55
B0992 Salt and Other Mineral Mining
0.9 -0.7% 2.4% 165 50.90% 0.5 84
B1011 Petroleum Exploration
2.5 -8.0% -0.5% 428 62.40% 1.6 267
B1012 Mineral Exploration
1.8 -6.2% 0.5% 1,242 57.10% 1.0 709
B1090
Other Mining Support Services
6.6 -8.0% 3.0% 1,427 38.00% 2.5 542
C1701
Petroleum Refining and Petroleum Fuel Manufacturing
15.0 -8.3% -3.8% 119 25.60% 3.8 30
C1709
Lubricants and Other Petroleum Product Manufacturing
1.7 -2.2% -2.2% 151 16.80% 0.3 25
C1811 Industrial Gas Manufacturing
4.0 1.3% 2.2% 43 30.10% 1.2 13
C1812
Basic Organic Chemical Manufacturing
1.9 6.7% 1.2% 115 11.50% 0.2 13
Page 75 of 76
ANZSIC Code
Industry Revenue 13/14 ($bn)
Annual Growth (09 - 14)
Annual Growth (14 - 19)
Businesses (#)
Activity in WA
WA Revenue*
($bn)
WA Businesses*
(#)
C1813
Basic Inorganic Chemical Manufacturing
2.5 -4.8% 1.1% 75 18.50% 0.5 14
C1821
Synthetic Resin and Rubber Manufacturing
2.8 -1.9% -0.4% 56 7.10% 0.2 4
C1831 Fertiliser Manufacturing
3.6 -1.5% 0.9% 285 15.90% 0.6 45
C1832 Pesticide Manufacturing
1.0 -1.5% 0.6% 89 19.60% 0.2 17
C1841
Pharmaceutical Product Manufacturing
9.2 -2.7% 1.9% 292 6.50% 0.6 19
C1851
Soap and Cleaning Compound Manufacturing
1.6 -10.0% 0.2% 390 8.10% 0.1 32
C1852
Cosmetics, Perfume and Toiletries Manufacturing
1.0 0.6% 1.8% 490 7.30% 0.1 36
C1892 Explosive Manufacturing
3.6 10.2% 3.7% 51 24.50% 0.9 12
C1911
Plastic Bag and Film Manufacturing
2.1 -5.0% -1.3% 275 3.90% 0.1 11
C1912a
Plastic Blow Moulded Product Manufacturing
1.5 0.4% 1.1% 137 10.80% 0.2 15
C1912b
Plastic Injection Molded Product Manufacturing
2.8 -4.3% -1.5% 900 12.00% 0.3 108
C1913
Plastic Foam Product Manufacturing
0.6 -6.1% -2.3% 136 9.90% 0.1 13
C1915 Adhesive Manufacturing
0.8 -2.0% 1.6% 40 11.90% 0.1 5
C1916
Paint and Coatings Manufacturing
3.0 -3.2% -2.8% 336 9.50% 0.3 32
C1919a
Plastic Extruded Product Manufacturing in Australia
1.8 -0.6% -0.8% 159 12.10% 0.2 19
C1919b
Polyester and Other Plastic Fibre Product Manufacturing
1.1 0.4% -0.7% 245 13.20% 0.1 32
C1920
Natural Rubber Product Manufacturing
0.9 0.2% -1.9% 184 8.90% 0.1 16
C2021 Clay Brick Manufacturing
0.8 -3.6% 0.9% 20 17.70% 0.1 4
C2029
Other Ceramic Product Manufacturing
0.5 -7.0% -0.4% 400 12.30% 0.1 49
Page 76 of 76
ANZSIC Code
Industry Revenue 13/14 ($bn)
Annual Growth (09 - 14)
Annual Growth (14 - 19)
Businesses (#)
Activity in WA
WA Revenue*
($bn)
WA Businesses*
(#)
C2031
Cement and Lime Manufacturing
2.3 -2.5% 1.3% 15 9.50% 0.2 1
C2032 Plaster Product Manufacturing
1.9 0.8% 1.9% 67 10.30% 0.2 7
C2033
Ready-Mixed Concrete Manufacturing
5.9 1.7% 0.2% 240 9.20% 0.5 22
C2034
Concrete Product Manufacturing
2.6 -1.5% 0.3% 825 14.10% 0.4 116
C2090
Glasswool, Stone and Other Non-Metallic Mineral Product Manufacturing
1.8 -3.9% 1.8% 950 13.10% 0.2 124
C2131 Alumina Production
8.0 1.9% 0.2% 9 42.90% 3.4 4
C2132 Aluminium Smelting
5.8 -5.4% -2.1% 54 3.70% 0.2 2
C2133
Copper, Silver, Lead and Zinc Smelting and Refining
3.6 -10.0% -7.5% 51 14.60% 0.5 7
C2139
Gold and Other Basic Non-Ferrous Metal Manufacturing
20.2 -1.2% 0.9% 146 61.30% 12.4 89
M6910
Scientific Research Services
4.5 -0.3% 1.6% 3,065 10.20% 0.5 313
M6925
Environmental Science Services
4.9 2.0% 2.8% 6,130 21.20% 1.0 1,300