AUSTMINE 2007 Perth, WA 13 February, 2007

1. AUSTMINE 2007Perth, WA13 February, 2007 PROVIDING THE SKILLS FOR THE NEXT GENERATION OF MINING TECHNOLOGY. Don Larkin FAusIMM Chief Executive Officer The AusIMM

2. PROVIDING THE SKILLS FOR THE NEXT GENERATION OF MINING TECHNOLOGY. • Defining the MTS sector and skills needs. • Vision 2020 – impacts on attraction and retention. • Role of employers / role of Governments. • Last words.

3. Background • Mining and its related activities are knowledge intensive with continuing potential to deliver prosperity for the longer term with the right settings. • Productivity Commission Report on Science and Innovation acknowledged the importance of R&D to the success of the industry. • Mining also underpins the competitiveness of a number of associated services and technology industries located in Australia in a global economy that demands specialisation. • “Now here is a shock manufacturing exporters to have a future”

4. THE MTS SECTOR • ABARE Surveys – 2002 and 2004 (published April 2005). • Gross Sales Revenue 2003/04 - $4.75b. • Gross Export Sales revenue 2003/04 - $1.11b (est. 2004/05 – $1.24b.) • Target MTSAA of $6.6b export sales by 2010. • Only 52% earning more than $1m in gross sales. • Only 26% earning more that $1m in gross export sales. • 16,800 employees 2003/04. Source: ABARE (2004)

5. THE MTS SECTOR(continued) • 53% of businesses employ less than ten people for MTS-related work. • 63% of businesses undertaking R&D. • 69.4% completed tertiary qualifications (20% trade or VET) • 86.5% undertaking further development to improve. • 24% company-specific development (largest category) Source: ABARE (2004)

6. THE MTS SECTOROCCUPATIONS • Occupations required to deal with current job shortages: • 62% Engineers (including Metallurgists) • 49% Geologists • 46% Computer Science • Occupations required to deal with forecast job shortages: • 66% Engineers (incl. Metallurgists) • 52% Computer Science • 50% Geologists • 50% Managers and Administrators. • MTS expertise according to industry categories: • 73% Technical Services • 50% Exploration and other mining services. Source: ABARE (2004)

7. MTSAA OUTCOMES 2006EDUCATION • Increased awareness of sector and its skills needs. • Due to size and diversity of needs, cannot be viewed in isolation. • Identified skills in demand. • Led to inclusion of sector in existing and new education and careers initiatives (MCA, MTEC, CMEWA, AusIMM, DEST etc). • Trades and VET – RIISC Survey and initiatives.

8. OECD/KISA REPORTInnovation and disciplines required • Science in the new discovery. • Technology in the process and machinery to put it into production. • Engineering in the design work that makes it happen. • Therefore, access to a pool of university-trained science, engineering and technology graduates is essential to sustainability. • Engineers, metallurgists and other scientists, managers and administrators are essential.

9. OECD KISA REPORTStaff roles • All case study firms employed expert technical staff who acted as the main gatekeepers for new information coming into the firm, and were responsible for much of the environmental scanning. Ausenco had the most formal of these arrangements, but all firms relied on technically-qualified engineers, geologists and/or surveyors for these roles. • The firms were in direct contact with customers and had largely informal systems for obtaining customer feedback. All case study firms also have mechanisms in place to capture ideas suggested by staff, and to ensure that customer feedback heard by staff is passed on to management.

13. RESPONSES TO – A VISION FOR 2020 THE CHANGING WORLD The New Labour Market Retirement disappears▪ Career planning beyond 50 ▪ Changes to superannuation ▪ Improving educational attainment ▪ Knowledge management New generation of older workers▪ Ageing workforce benchmarking ▪ Lifelong learning ▪ See flexibility below

14. RESPONSES TO – A VISION FOR 2020 (continued) THE CHANGING WORLD The New Labour Market Three generations in the ▪ Understanding and generation workplace specific management skills ▪ Communication and collegiate skills ▪ Empathy ▪ Satisfaction = reality/expectations

15. RESPONSES TO – A VISION FOR 2020 (continued) THE CHANGING WORLD The New Global Economic Order China and India emerge as ▪ Multiple culture, language and massive economies time zones ▪ Promote global opportunities ▪ Negotiation and cultural sensitivity Offshoring takes off, whole ▪ Managing spatially dispersed economy affected networks, plants, attitudes and suppliers ▪ Manage large, complex adaptive systems of businesses ▪ Around the clock access

16. RESPONSES TO – A VISION FOR 2020 (continued) THE CHANGING WORKPLACE Focus on human ▪ Human resources vital component optimisation of business planning, budgeting, risk management ▪ Talent, knowledge management, mission critical employees ▪ Graduate programs, CPD, mentoring, succession planning, etc. Workplace flexibility ▪ Individual contracts becomes key to ▪ Flexible environments and terms attracting and retaining and conditions of employment staff▪ Telecommuting, flexi time, rosters ▪ Part time, parental leave, career break, etc. ▪ Google environment

17. RESPONSES TO – A VISION FOR 2020 (continued) THE CHANGING WORKPLACE People and creativity▪ Encourage diversity and creativity logic emerges ▪ Indigenous and new sources of labour ▪ Outsourcing – contract management Taking accountability ▪ Improving child care facilities for outcomes for ▪ Improving health women▪ Undertaking welfare reform ▪ All the above regarding flexibility

18. RESPONSES TO – A VISION FOR 2020 (continued) THE CHANGING MINDSET Servicing all ▪ Higher order communicationskills stakeholders and transparency ▪ Emphasis on social interactions/ complex interactions Cult of the top team ▪ Team skills – leading teams ▪ Communication/emotional intelligence skills ▪ Recruitment, delegation and motivation

19. RESPONSES TO – A VISION FOR 2020 (continued) THE CHANGING MINDSET Experts dominate ▪ Building and maintaining personal expertise and deep industry or systems expertise ▪ Use of independent specialists/ contractors ▪ CPD Managing substantial ▪ Financial/health/superannuation wealth advice ▪ Work and life choices ▪ Extent of working life/when to peak

20. IN SUMMARY LEADERSHIP CHALLENGES • Doing more with less • People leadership and management • Reducing uncertainty • Understanding and addressing demographic destiny • Mission critical employees – management of talent and knowledge • Managing creativity and embracing diversity • Emphasis on complex interactions • Forecasting and planning Not just a commodity

21. ROLE OF GOVERNMENTS • Promoting science and engineering careers. • Improving science and engineering teaching. • Acknowledging disciplines of national importance. • Funding for science and engineering tertiary education. • CASR funding for MEA. • Research quality framework – implement. • CRCs and CSIRO support, CODES and MDU. • SME participation in innovation process. • R&D tax concession for commercialisation of step change technologies. • Support for embedded researchers. • Continued support MTSAA and AUSTMINE.

22. LAST WORDS • Mining is a knowledge intense industry, R&D, innovation essential. • Need to do more with less. • Human resources is more than a commodity. • Retention of skills starts with attraction as satisfaction = Reality Experience

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