Hays Resources & Mining - January 2010

Hotspots

In Western Australia, the mining sector needs candidates in Exploration and Production Geology, Mining Engineering and Production Operations and Maintenance. Within heavy industrial engineering and construction, Project Management and Engineering personnel, Project Controls Managers/Engineers, Planners and Commercial/Contracts Managers are needed.

The Western Australian resources sector is building towards another period of significant growth. Commodity prices across the board increased in late 2009, which led to a massive increase in mineral and hydrocarbon exploration.

In response to a renewed demand for raw materials from South East Asia, and China in particular, existing operations have begun to rapidly increase production. Projects that were put on hold during the financial crisis are now coming back on line. The Gorgon project will also begin to drain resources. This will create a strain in other parts of the sector, especially within the labour hire market.

In South Australia, Geologists (Mine and Exploration), Mining Engineers and Project Managers are sought. The demand for Geologists is driven by the number of exploration drill programs restarting this quarter. Mine Geologists (both UG and Open Pit), Engineers and Project Managers are needed as a number of mines target production in the mid to latter parts of the year.

In Queensland, Coal Mining Engineers and Coal Mine Production Geologists are sought. Currently there are a number of underground coal projects which are moving into detailed design, and there has been a shortage of good material handling engineers in particular for some time. The continuing demand for coal out of China will ensure this need remains. The state's heavy industrial design and construction sector needs Lead Mechanical Engineers with material handling experience.

Victorian consultancies are seeking Senior Project Managers and Project Directors. The previous need for mining geologists and geotechnical engineers for the state's gold mines have stabilised as expansion projects have reduced. International minerals processing projects that were on hold for most of 2009 are now being released and are run by Melbourne-based consultancies.

In New South Wales, Civil Engineers with either design or site experience are in demand as the quantity of infrastructure projects in the Hunter Valley outstrips candidate availability. Suitable Civil Engineers can pick and choose their opportunities and lucrative salaries are offered to attract the best.

In the state's coal mining sector, candidates in Engineering, Geology and Management with statutory qualifications are needed. There have been no reports of reducing production levels, and combined with continued demand from overseas customers and increasing expansion projects, the need for production, maintenance and construction personnel will rise.

Contractors supplying underground operations are struggling to find suitably experienced and qualified personnel. Greenfield developments in the Western, Hunter and Northern NSW coal fields are drawing quality and experienced candidates who want to be part of a new operation. Combined with an increasing portfolio of Brownfield expansion projects, we are again heading for an opportunity rich and candidate short market. Already Mining Engineers, Undermanagers, Deputies, Electrical and Mechanical Engineering Managers, BOSSI registered Surveyors and experienced Coal Geologists are highly sought after.

In the state's design, engineering and construction sector, candidates who possess significant experience with materials handling projects, mine related or civil construction experience are in short supply. Demand is steadily increasing as projects are revisited. Good Project Engineers and Managers, Electrical Engineers with HV design or PLC design experience in the coal mining and materials handling sector are also highly sought after.

The coming quarter

Optimism is evident within the broader industry and although some employers continue to endure tougher times, there are significant signs of a recovery with many employers beginning to rehire.

Employers are refilling roles that were made redundant during the downturn as well as creating new positions. In general, for operational mines the focus will be on securing permanent staff, but for exploration we expect an initial focus on short-term contractors before the focus shifts to permanent staff. Those companies that remain conservative after a quiet 2009 will also prefer temporary or contract recruiting.

Continued optimism, rising commodity prices and signs of an economic recovery in most developed nations are indicators that pressure will once again be applied to the skilled employment sector. This will be most obvious in Queensland and Western Australia, the two biggest states that were most affected by the domestic downturn in commodity production.

New South Wales' Hunter is attracting increased candidate interest. The demand for thermal coal and the volume of infrastructure-related projects will put the Hunter on the radar of many active candidates this quarter.

Executive trends

Some executive recruiting is expected this quarter as both large and small miners and exploration companies reposition themselves. New IPOs are also planned for later in the year. Victorian engineering and mining consultancies are actively looking for Senior Project Managers and Project Directors to run the feasibility studies and design of newly released projects.

Employer trends

High calibre candidates have been absorbed back into the market quickly. While many employers continue to try to attract candidates from the local market, others are looking at relocating candidates from interstate or overseas. We are more involved in national campaigns than we are solely considering candidates in the local area. Relocation enticements are being extended to attract interstate candidates.

Employers are also looking at candidates with transferable skills. For example, in Queensland employers can consider candidates from the iron ore sector.

Mining and construction rosters that were lengthened during the downturn are decreasing as commodity prices and demand increases and shorter rosters become more economically viable.

In South Australia, employers are turning to contract staff as the mining and exploration sector reignites, although candidates are increasingly looking for permanent opportunities.

Candidate trends

High quality candidates are becoming harder to source. While most candidates employed in permanent jobs were reluctant to move in 2009, there is now more fluidity in the market and more applicants are showing genuine interest in exploring other options. They are more confident to voluntarily seek new opportunities once more. However with increased vacancy activity, quality candidates are quickly employed.

Those candidates who have been on the market for some time are far more flexible in their expectations.