Global hunger for Australian minerals has never been so insatiable, driven by the energy transition and growing defence requirements. Yet, the nation’s ability to make the most of this once-in-a-generation opportunity risks being curtailed unless a severe skills shortage in the sector is addressed.
The minerals sector already creates more than 1.25 million jobs, alongside many other employment opportunities through supply chains and related industries; however, up to 35,400 new jobs need to be added to the sector by 2028 to support growth.
It’s a lofty number and a combination of a strong pipeline of homegrown talent, as well as a small and consistent stream of skilled migrants, is the best way to create a bedrock of experienced, highly-qualified people who can help the minerals sector reach new heights.
Additionally, a range of structural changes is urgently required so that Australia doesn’t waste the chance to make the most of the pool of existing skilled migrants who cannot currently use their potential, thanks to onerous red tape.
‘The migration system has to change to attract the best and brightest from overseas to the minerals sector. We urgently need more metallurgists, electricians and heavy machine operators, as well as people to fill many other roles,’ says Tania Constable, Chief Executive Officer of the national peak body for the industry, the Minerals Council of Australia (MCA).
At the moment, most skilled workers employed in the sector come through vocational education and training pathways, a system that supplies job-ready talent through apprenticeships, traineeships and targeted upskilling programs. Apprentices and trainees have made up around 4.4 per cent of the mining workforce for the past 15 years, with almost 11,000 mining apprentices and trainees in training right now.
Initiatives such as paid experience programs organised by the MCA – in partnership with industry leaders including AusIMM, BHP, Cahoot Learning, Glencore, Idemitsu Australia, Komatsu and Rio Tinto – are essential to attract talented people to the sector. Through the two-week program, participants get to know all about what it means to work in minerals, while getting paid.
While local talent is the industry’s lifeblood, it’s not enough to support the mineral sector’s workforce needs as it grows along with intense global demand for its products. Skilled migrants like engineers and geologists are needed to meet urgent workforce requirements and complement onshore training.
‘The power of Australia’s skilled migration system must be unlocked to give this group a bigger part in reducing a looming talent crunch in the nation’s minerals industry,’ says Constable.
The council is calling for a range of reforms to Australia’s skilled migration policy. These include fast-tracking permanent residency for in-demand global talent, cutting processing delays and accelerating licensing.
‘Without skilled migration, mining labour shortages – especially in critical and hard-to-fill, specialised roles – put project timelines, export earnings and the national economy at risk,’ says Constable.
Australia’s mining, clean energy and technology sectors are being frustrated and impeded by these weaknesses, as their demand for specialised skills grows faster than migration pathways can adapt.
‘While Australia’s skilled migration intake is intended to match industry needs, there’s too much unnecessary bureaucracy,’ Constable says.
Although skilled migrants comprise just 1.24 per cent of the Australian minerals workforce, their contribution is critical. Since 2020, their numbers have more than doubled from 1700 people to around 3880 people. Taking steps such as creating clearer, faster pathways to permanent residency so Australia can attract and keep more of these important people here is vital.
This means making the migration system more responsive and easier to navigate, and matching the number of places available to industry needs. It also means fixing the things that slow the system down, like cutting wait times and simplifying the rules. A combination of other elements, including better awareness about what a great career in mining looks like – for example, the sector is hungry for skilled gamers to drive remote-operated machinery – will also help build a bedrock of talent.
‘More discretion for states and territories over how many skilled migrants they can accommodate, taking into account job shortages and the capacity to settle new arrivals, would also make the system more successful,’ says Constable.
Mobilising migrants who have earned skills working overseas in the minerals sector, who are already living in Australia, by speeding up the time it takes for their credentials to be recognised must be a priority. Additional industry incentives for work experience placements and structured mentoring will help boost the cohort of trained, experienced people available to work in the minerals sector.
‘Of course, this will require close coordination between industry, regulators and governments. We need to create frictionless, accelerated permanent residency routes for people with the skills that are essential to our national strategic priorities,’ says Constable.
This includes people with STEM and advanced manufacturing expertise, as well as specialist trades required for decarbonisation important imperatives that are reliant on the minerals sector.
‘A more agile and targeted skilled migration system will secure the skills that drive innovation, lift productivity and reinforce the nation’s position in the global economy, particularly in mining, where leadership is critical to Australia’s long-term prosperity,’ Constable says.
