The mining industry is changing—and the evolution is going to mean big changes to staffing in the sector.
In Canada and across North America, mining is a critical industry. Canada is home to nearly half of the world’s publicly listed mining and mineral exploration companies, collectively valued at more than $285 billion as of 2021. While smaller, the American mining industry is still substantial. The U.S. hosts more than 300 mining companies, with a collective total value of $41 billion.
But while the field of mining is significant in domestic and global markets, it’s facing changes on the horizon. Technological advances, labour challenges, the renewable energy transition, social issues, and geopolitical conflicts will all impact the future of mining over the next decade.
To help recruiters and HR professionals in mining stay informed, we’re unpacking some of the top issues and how they will affect hiring in the industry.
What are the top issues facing the mining industry?
While mining faces the same challenges as many sectors (such as construction and oil and gas), companies in the industry also face some unique hurdles.
The low-carbon transition
To slow and prevent the worst effects of climate change, the world is transitioning towards a carbon-free economy.
The mining industry plays a unique role in this transition. Most low-emission energy and transportation systems rely on mineral-based technologies—think batteries for electric cars and materials for solar panels. To meet the growing renewable energy needs of the decarbonizing economy, the mining industry needs to expeditiously ramp up operations in certain areas. There is also pressure from governments and investors for companies to implement low-carbon solutions in their own operations, adopting solutions such as using recycled materials and transporting goods using electric vehicles.
The energy transition presents challenges, but it also reveals opportunities for companies to get ahead of the competition by being agile and adaptable. Amidst this evolution in the industry, there is also the promise of new, green jobs for mining workers who are prepared to learn about new materials and practices.
Geopolitical risks
In the wake of the global pandemic and the outbreak of war in Ukraine, companies are paying close attention to how geopolitical issues have the potential to create local impacts. Forces such as socioeconomic stress, food shortages, inflation, trade wars, supply chain problems, extreme weather, regulatory issues, and nationalism all pose direct and indirect risks to the operations of multi-national companies, impacting operations at every phase of production. Now more than in any previous era, companies are factoring such issues into their short- and long-term strategies.
Community consultation
Ensuring community engagement and involvement in local mining projects is growing in importance. This comes as the result of pressure from investors, as well as new regulations and industry standards. To successfully launch new projects, companies must receive buy-in from stakeholders by creating and communicating the real benefits for local communities.
New technologies
As in many industries, technology is changing the game in mining. According to recent analysis from KPMG, advancements in exploration and extraction technology, AI, 5G networks, and the Internet of Things (IoT) are the key innovations expected to make the greatest impact.
In this new era, workers who are trained in cutting-edge technologies—or open to learning them—will have a leg up over other candidates. On the company side, the mining industry will increasingly be competing with the tech sector for employees who are skilled in programming and IT.
Demand for skilled labour
Despite the growth of AI and the increased use of automation, skilled labour remains in high demand in the mining sector. Research from McKinsey tells us that 71 percent of mining leaders feel the talent shortage is holding them back from delivering on production targets and strategic objectives and 86 percent of mining executives say it’s harder to recruit and retain the talent they need compared to two years ago.
Why is the industry having trouble finding talent? For starters, it has been affected by the same labour shortage that has impacted a range of other sectors as the result of demographic shifts. But beyond that, mining is also experiencing unique issues. McKinsey’s analysis tells us that mining is not considered “aspirational” in the same way that jobs in the tech industry often are, and news stories on worker safety and social issues have affected the public’s view of mining.
However, mining companies are aware of these concerns, and there is an increasing understanding that addressing environmental, social, and governance (ESG) issues will be key to ensuring future success.
The bottom line
Big changes are happening in the world of mining. Geopolitical risks, the low-carbon transition, the rising importance of community engagement, technological developments, and the ongoing labour shortage will all play a role in defining the future of the industry.
Amidst these seismic shifts, opportunities are arising for companies and workers to embrace new ways of working and doing business. Skilled workers have the chance to get ahead by mastering new technologies and being open to emerging new roles in the industry. Meanwhile, companies that understand how to engage the next generation of workers, address social and environmental issues, embrace innovation, and win the support of local communities will be the ones that come out on top.
Is your mining company searching for a software solution to streamline recruitment? Built for staffing agencies and Human Resource departments, Labourly™ is a simple, intuitive solution for managing your skilled workforce. Book a demo call with our team today to explore options for your company.
