Australian mining jobs sector still growing, but new skills needed, report finds

Australian mining jobs sector still growing, but new skills needed, report finds
Amid fierce political opposition, US uranium miner suspends mine plans
American oil producer says it doesn't need Keystone pipeline
1,500 Barrick workers out of a job as Pascua Lama suspension takes effect
Australian coal investments at risk of becoming 'stranded assets' – Oxford study says

Posted: 15 Dec 2013 04:51 PM PST

Australia's mining boom may be over, but research suggests that job growth won't be a phenomenon of the past. The real challenge, according to a new report by the Australian Workforce and Productivity Agency (AWPA), will be training the workforce for a new set of skills.

The report predicts that employment in the mining sector will rise by 7.4% over the next four years, with the oil and gas sector providing the largest number of new jobs.

But the new set of positions will require a new set of skills.

Demand will be particularly high for production managers and a number of trade occupations such as metal fitters and machinists, structural steel and welding trades workers and other building and engineering technicians.

"While required skills may be 'bought in' from other industries, a new response is needed from employers to meet the ongoing challenge of recruiting and retaining these specialist workers," the AWPA writes.

As the industry shifts toward more automation, workers will also need specialized skills in remotely controlled and automated systems. Although demand for drill rig operators and truck drivers will decline, the move toward automation isn't expected to significantly reduce employee numbers.

To prepare for this new employment landscape, the AWPA advises industry stakeholders and the tertiary education sector to "collaborate on a workforce development strategy to build a domestic workforce to meet future skills demand for resources operations."

This involves an emphasis on maths, technology, science and engineering skills, through the establishment of a national strategy for schools.

"With a long lead time required to develop critical skills for the sector's future, especially in oil and gas, it is clear industry, government, and education and training providers need to collaborate and plan now to develop the workforce the industry will need in the years to 2018.," the AWPA writes.

Amid fierce political opposition, US uranium miner suspends mine plans

Posted: 15 Dec 2013 03:51 PM PST

A uranium miner has given up on mining one of the world's largest known uranium deposits in Virginia – for now.

Virginia Uranium has plans to develop the Coles Hill deposit in Pittsylvania County. According to the Associated Press, the site contains an estimated 119-million-pounds of uranium.

But Virginia has a decades-long ban on uranium mining and the Gov.-elect Terry McAuliffe has fiercely opposed attempts to change this legislation and said he would veto any pro-uranium bills.

Faced with this major political hurdle, Virginia Uranium told the Associated Press on Saturday that it would "not back the introduction of uranium mining legislation in the 2014 session of the General Assembly."

The company cited the Governor-Elect's opposition as a "significant challenge" to the project.

But Virginia Uranium hasn't given up completely and the suspension is temporary.

"We are in this for the long haul and are committed to developing the Coles Hill project," Project Manager Patrick Wales told the AP. "We will continue evaluating all options to move the project forward."

Environmental group Sierra Club has applauded McAuliffe for his opposition, publishing an article this week thanking the Governor.

Earlier this year McAuliffe stated that he was "not comfortable" enough with the science to say that he believed his community would be safe.

"I'm afraid it would get into the drinking water," he said.

Not all environmentalists agree that nuclear power should be opposed.

Earlier this year, a group of renowned climate scientists issued a public letter calling on environmnetal groups to embrace nuclear power. They claim that "continued opposition to nuclear power threatens humanity's ability to avoid dangerous climate change" caused by greenhouse gas emissions.

American oil producer says it doesn't need Keystone pipeline

Posted: 15 Dec 2013 02:31 PM PST

TransCanada Corp's proposed Keystone XL pipeline has lost some backing in the US – but this time the lack of support isn't coming from politicians or environmental groups.

The CEO of Continental Resources, one of the companies that has signed up to ship crude through Keystone, recently told Reuters that the pipeline was "no longer needed."

In addition to transporting Canada's oil sands product, the pipeline is supposed to help some American producers carry their oil across the country, supporting "significant growth of crude oil production in the United States," according to TransCanada.

Pipeline plans have been dragging on for years. In the meantime, Continental has turned to railroads for transportation.

"Rail has been a big factor and, you know, proven to be a very effective way," CEO Harold Hamm said, as reported by Reuters.

The company currently transports 90% of its product via rail.

"It may be several years yet, you know, before you find out if it (Keystone XL) is going to be built," Hamm told Reuters. "It's no way to run your business."

Hamm also noted that Continental has not changed its contract with TransCanada, so it's still signed up to use the pipeline.

But Keystone doesn't depend on whether or not American producers use it. The majority of oil that Keystone would carry comes from Alberta's oil sands.

The line would provide some relief to Canadian producers as a lack of transportation capacity has created a major bottleneck of supply in the US' midcontinent region. As a result, Canadian crude sells at a discount and the Canadian economy loses tens of millions of dollars each day, according to the Fraser Institute.

The Obama administration is currently reviewing the pipeline. Environmental concerns have been a major obstacle to gaining approval.

1,500 Barrick workers out of a job as Pascua Lama suspension takes effect

Posted: 15 Dec 2013 01:10 PM PST

Barrick Gold Corp is laying off 1,500 Argentine workers from its stalled $8.5 billion Pascua Lama gold mine which straddles the Argentine-Chilean border.

A spokesman for the San Juan Mining Ministry told Reuters that the company is focusing its efforts on the Chilean side and that workers on the other side of the border won't be needed for another two years.

On the Argentine side, the project currently employs 5,000. By next year that figure will be 3,500.

Before suspending the Pascua Lama mine earlier this year, the project employed 10,000.

Employees in the San Juan province are being retained "to perform maintenance tasks and build some infrastructure," Reuters writes.

On the Chilean side, workers are busy building a water treatment facility – a requirement to getting an environmental permit.

Pascua Lama's costs have skyrocketed since it was first proposed in the late-1990s with an estimated price tag of $1.5 billion. But with a declining gold price and significant debts, Barrick suspended the project in October until conditions improve.

Australian coal investments at risk of becoming 'stranded assets' – Oxford study says

Posted: 15 Dec 2013 11:00 AM PST

Australia's coal investments may have been in vain. New research suggests that Australian coal's second-biggest customer, China, could be headed for a coal-free diet.

According to a new report by Oxford University, commissioned by HSBC's Climate Change Centre of Excellence, China's demand for coal is changing. Driven by environmental concerns, political pressure, developments in cleaner technologies and gas markets, the Asian giant could reduce its consumption. This could drag down prices, putting Australia's coal reserves and infrastructure at risk of becoming 'stranded assets.'

As the world's biggest coal consumer, China certainly has the ability to shift coal prices.

"These developments are not factored into the positions that most coal owners and operators are currently taking" Ben Caldecott, co-author of the report said in a statement. "Policy makers need to wake up to these risks as well."

The study raises one main question: Should any more capital be allocated to new coal projects?

But Australia is in the midst of some major coal mine action. The country's Galilee Basin is bursting with coal-related projects such as Indian company Adani's proposed $10 billion Carmichael mine which would produce 60 million tonnes per year.

Many of these projects are only justified on the basis that China's coal consumption will rise, the report reads.

Study authors argue that in order to "minimise the risk of stranded assets, the companies involved should further interrogate the coal price assumptions underpinning the investment" of their projects. "Investors should seek clarity on the opportunity costs associated with deploying finite capital into them too."

The report also warns lawmakers against relying too heavily on coal production as a source of tax revenue.

"Less production will reduce royalty payments. The Queensland government in particular, notionally has much to lose from the mega-mines in the Galilee not going ahead."

But whether or not China will consume less coal is a matter of debate. Just last week the China National Coal Association (CNCA) announced its predictions that Chinese coal consumption will reach 4.8 billion metric tonnes by 2020, a 1.3 billion-tonne increase on 2012.

And although the government has recently made a push to shut down thousands of small coal mines, it's also introducing policies to support larger operations.

Australian mining jobs sector still growing, but new skills needed, report finds

Australian mining jobs sector still growing, but new skills needed, report finds

0 Comment for "Australian mining jobs sector still growing, but new skills needed, report finds"

Popular Posts