TH E G LO B AL TALE N T E X P E RTS

Mining Engineer
Shortage Report
2020

F I R S T- H A N D I N D U S T R Y I N S I G H T

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 Index
INDUSTRY OUTLOOK 3-4
RESEARCH FINDINGS 5

The looming
SUMMARY OF KEY FINDINGS 6
RESEARCH FINDINGS (GRAPHS) 7-12
shortage of RESEARCH CONCLUSION 13

certain skills
CONTACT DETAILS 14
REFERENCES 15
within the
industry has
been a much
documented The Mining Engineer Shortage Report
2020 information was collated by:

and
widespread Jon Taylor

problem. Principal Consultant

Joanna Coulter
Executive Resourcer &
Researcher – Geology,
Exploration & Technical

Valentina Espitia
Researcher, Geology,
Exploration & Technical

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 INDUSTRY OUTLOOK
CSG Talent has placed numerous roles for
engineers and geologists around the world.
Many of these have been Australian residents
or citizens working in Australia either on FIFO or
Residential assignments (depending on the part of
the country they choose to work). Over the years
there seems to have been a see-saw correlation
between the amount of particular skill sets needed
by the industry vs the amount of opportunities
within this discipline. Notwithstanding, the biggest
area for this change has been seen within mining
engineering.

Mining Engineering is a discipline that covers many One of the key factors is the best way for Mining
different areas from planning across short, medium companies to equip graduates for careers in mining,
and long term, to production, projects, drill & blast and how to attract, retain and engage the engineers
and others. It seems that the amount of entry level that have been in the industry from 0-5 years that will
engineers straight from university up to the 5-year become tomorrow’s managers and leaders.
mark has begun to dwindle in recent years. The
looming shortage of certain skills within the industry What was interesting from conducting our research
has been a much documented and widespread was the change in thought processes of engineers as
problem. It is not just a recent problem either. A wealth COVID-19 hit Australia. Those that were working as
of papers and articles have illustrated a depth of expats suddenly began looking for roles a bit closer
findings and statistics that projected the forthcoming to home. Those that only wanted FIFO opportunities
retirement of more senior professionals, as well within certain states began approaching us about
as huge declining numbers of those enrolling and residential opportunities and those that were earning
graduating from mining-centric Bachelors and Masters top industry salaries became more negotiable to
degrees. take roles in regions that were not as hard hit by the
pandemic.
At CSG we are continually interviewing and speaking
to industry professionals at all levels and this issue has COVID has added a further stress onto the skills
been discussed in depth with a range of individuals; shortage with interstate travel diminished and ‘home-
from those that have retired, to those currently running grown’ (engineers already in the state) being required.
junior companies, VPs at multinationals as well as The ability to look outside of Australia for possible
those on site from GM to the entry level engineers candidates (should the company have that as an
themselves. Whilst we cannot solve the problem of the option) were also nullified.
skills shortage, through this report we aim to identify
where the engineers are, explore the probable causes These added stresses can be seen across the industry
for the declining numbers and understand what with more and more mining engineer roles being
companies are trying to do to combat the problem and advertised on company pages and generally across
gain the much-needed experience within their mining job websites typically used for mining opportunities.
and technical services departments.

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 How
has
the
industry
changed?
Furthermore, companies are now fighting hand over students that enrolled only 4-5 years prior. Universities
fist to get the engineers with the skills they need, and across Australia are seeing similar declines.
this has been seen with such incentives as increased
salaries, bigger STIs, sign-on bonuses and the promise No house can be built without foundation and no
of more responsibility. industry can be built without forward thinking and the
succession planning needed to keep a constant flow
Key industry analysis, however, has highlighted a of necessary skills required to attain the productivity
few important factors. In recent years, the resources to run an efficient asset or operation.
industry has shown proceeds reaching numbers just
shy of three-hundred billion dollars. It was also noted Through this report, we seek to uncover where these
that while this year’s pandemic will affect the industry engineers are, what they are earning, why they are
with changing production guidance, temporary not opting to engage with mining related studies and
shutdowns and travel restrictions, the long-term what companies are doing to attract and retain the
prospects still show high prosperity and growth not engineers they do have. This last point is especially
just in Australia but internationally too. Basically, the true knowing the difficulties of sourcing a replacement
industry shows no sign of slowing! if they lose an incumbent during an interview process
or worse still, are headhunted to work for a competitor.
A decline in the numbers of graduation mining
engineers is nothing new for those that have been As we move into 2021 and a potential new
in the industry through multiple boom and bust technological era, the skills needed will continue to
periods. It seems the narrow thinking in some parts change. New skills will be needed to handle these
of the industry that are reactive rather than proactive advanced technologies as the industry evolves further.
about this issue, means that graduates are focusing
their efforts on other industries and functions. This
can be seen not only from the statistics in this report
but from a report covered by McHugh in 2019 who
documented that in 2018, only 6 undergraduates
registered in mining engineering majors at the
University of NSW, which is far removed from the 120

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 T H E I N D U S T R Y AT A G L A N C E

ONLY 14% OF MINING

ENGINEERS ARE FEMALE

A MINING SKILLS SHORTAGE IS IMMINENT ONLY 14% OF MINING ENGINEERS ARE

FEMALE, 86% ARE MALE
According to Engineers Australia (2020), Western
Australia is concerned about looming mining According to research by Jobted, only 14%
engineer shortages, as it is becoming increasingly of the total amount of mining engineers are
difficult to attract young people despite high female, the other 86% are males.
paying entry-level jobs. In the last 10 to 15 years the number of
women entering university has increased, but
universities had failed to lure those students
into engineering (Dearth of engineers hurting
FOREIGN PROFESSIONALS WILL BE REQUIRED the economy - Industry Queensland, 2020).
TO FILL THE VOID

The Minerals Council of Australia warned the NORTH AMERICA IS PLANNING TO ATTRACT
Federal Government that they can’t find enough GRADUATES FROM A RANGE OF OTHER
local engineers to place in jobs and want to recruit COUNTRIES
foreign professionals to fill the void. They also want
to raise the 45 years age limit. They have asked In comparison, North America (who is
the government to place mining engineering on a also facing a shortage of graduate mining
short-term skilled occupation list, where miners will engineers), is planning on drawing expertise
be recruited from overseas. The industry demands from some Latin American countries such as
200 new mining engineers per year, however, Peru and African countries such as South Africa
there were only 107 graduates in 2019. According and Ghana for their underground metalliferous
to Mr. Lind (2019), only 34 students had enrolled mines. Coal mines are likely to source foreign
in first year mining engineer degrees and just 11 in mining engineering graduates from Poland,
Queensland. (BITA, 2019). Germany, Ukraine, Turkey, and Russia (Knights,
2019).

STUDENTS STUDYING MINING ENGINEERING HAS BEEN DECLINING FOR THE PAST 6 YEARS

The Mineral Council of Australia announced that tertiary enrolments of students studying mining
engineering has been declining for the past six years. With 300 mining engineers graduating each year
during the resources boom across Australia’s eight tertiary mining courses, this is expected to fall to
approximately 50 by 2020.

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 Summary
of key
fi ndings

All the research points to the fact that there are The coal mining sector has the highest average salary
currently fewer mining engineers in the work area at $140,000 AUD. Contractors and iron ore mining
and the rate of students or graduates is significantly sector salaries have a difference of only $2,250
reducing, despite the fact that there is a high demand AUD. The lowest mining sector salary is metals with
and short supply of mining engineers. $126,800 AUD.

CSG Talent’s research indicates that salaries are high Geotechnical Engineers are the best-paid discipline
for entry level mining engineer graduates and tend specialisation with a salary of $135,000 AUD in
to follow a strong growth trajectory as experience Australia, followed by the Mining Engineers discipline
increases. Due to the increasing scarcity of qualified at $122,051 AUD. The lowest paid is Metallurgists,
mining engineers, companies are likely to pay more to with $75,000 AUD average salary among newer
hire them. graduates.

Out of the individuals surveyed, most (56 %), had Within mining engineer roles, males are predominant,
approximately 5 years’ experience. The other 44% of making up more than 80% of the total surveyed, with a
individuals had between a few months to 5 years of very low percentage of females.
experience working as mining engineers. Therefore,
less than half graduated between 2015 and 2020,
again demonstrating the gradual decline in graduates.

Approximately half of the individuals surveyed (49

individuals) are currently residing in Western Australia,
23% in Queensland (23 individuals), and the rest are
spread throughout the other Australian Territories.
Mining engineers in South Australia earn 10% more
($134,256 AUD) than the national average. The lowest
salary average is in Victoria with 7% less ($113,507
AUD) than the national average.

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 RESEARCH FINDINGS

T H E G LOB A L TA L E N T E X P E RTS

MINING ENGINEER SALARY LEVELS

Graph N.1

Over the past six months, CSG Talent has conducted a survey with a sample of 100 individuals
from a range of mining companies across the country, in order to identify salary and talent trends
in the mining engineer industry within Australia.

Graph N.1 demonstrates the average salaries for each of the different levels of mining
engineering roles.

The average entry level salary for a Mining Engineer graduate is very strong, at $89,400. This is
approximately $30,000 higher than the average graduate salary across other industries. Beyond
this level, salaries grow considerably with experience and maintain a strong growth trajectory.
The difference between the average salary of a mining graduate with 0 – 3 years’ experience
and a mining engineer with 4 - 5 years of experience is 26.7%, $32,651 AUD.

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 RESEARCH FINDINGS

Graph N.2

The minimum years of experience amongst the individuals surveyed was 1 year (1 individual) and the maximum
was 9 years (1 individual). Almost half of the total (56%) of the research had more than 5 years of
experience in this field. Almost a quarter (22%) had 4 to 5 years of experience.

Graph N.3

High renumeration levels at a graduate level is largely down to the supply and demand of qualified mining
engineer graduates. As Graph N3 shows, the rate of mining engineer graduates increased in 2015 and then
has decreased steadily over the past 5 years, as has the number of fourth-year students.

Even though renumeration levels are high, fewer young people have wanted to study this career, despite the
excellent salary that companies are offering.

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 RESEARCH FINDINGS

We identified some significant

differences in Mining Engineering
salaries between states in Australia.
Employees with “Mining Engineer” in
their job title in South Australia earn
10% more than the national average.
These job titles also yield higher
salaries in New South Wales with 4%
more than the national average. The
lowest salary average is in Victoria,
with 7% less than the national
average.

Graph N5, Mining Engineers by

Location, outlines the number of
mining engineers and graduates
that there were by territory (amongst
Graph N.4
those surveyed); Western Australia
had more employees with this job
title (49%) and Tasmania had only 1%
of mining engineers in total.

The majority of individuals surveyed

(49%) were located in Western
Australia; this is where one of the
major active mines (Super Pit Gold
mine) is located. Queensland and
New South Wales were where
a combined total of 36% of the
individuals were located. Another
10% of individuals were located in
South Australia also where a major
active mine is located (Olympic Dam).

Graph N.5

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 RESEARCH FINDINGS

Graph N.6

The average salary of mining engineers depends on the sector they are
operating in. Individuals who work in the coal area have the highest income
per year, $140,000 AUD.

This is followed by iron ore, closely followed by the contractor sector, and
finally the metals sector has an average salary of $126,000 AUD.

Graph N.7

Geotechnical engineers are

the highest paid disciplines,
at $135,000 AUD. Mining
planning engineers (especially
long term), are the second
of the best paid discipline
specialisations at $122,051
AUD.

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 RESEARCH FINDINGS

Graph N.8

Of the individuals surveyed, 10% graduated from According to Graph N9 Mining Engineers
the University of Queensland, followed by Curtin Qualifications, only 17% of the total surveyed
University with 9% of individuals. 61% graduated from completed a Master’s degree, while the other 83%
other universities (both Australian and from other completed a Bachelor’s degree.
countries from all over the world, such as America and
Africa.)

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 RESEARCH SOURCES

Graph N.10.

Over half of the individuals The majority of individuals

surveyed work at Rio Tinto and surveyed (86%) were male, while
the other half were distributed a much smaller percentage (14%)
relatively evenly across 11 other were female. Diversity clearly
mining companies. continues to remain a challenge
within the mining engineering
sector.

Graph N.11.

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 Research
conclusion

Over recent years, there has been a significant and leave the place they call home, whereas FIFO,
reduction in the number of graduates following a despite the stigma around the mental health and other
mining engineering career, generating a pressing problems surrounding it is still the favourable method
need for talent in the mining industry in Australia. of working roster among younger engineers.

Despite the fact that companies are offering an We have seen the number of offers per candidate
attractive entry salary, young people are not interested in mining engineering increase dramatically as
in taking this university career as an option. companies try to entice skilled individuals with job
security, career trajectory to promotion, increased
It seems that the cyclical nature of the industry is base salary or incentivize with tempting bonus
partly to blame. Some of those that had recently structures. This trend will only continue as less and
graduated told us that after they opted to study a less graduates come out of university ready to pursue
mining related subject, the allure of the industry has a career in the industry.
diminished somewhat. With the industry having a
rollercoaster few years in light of commodity price, With mining engineering one of the highest paid
M&A and political/environmental factors some began disciplines in comparison to others such as Geology or
their university degrees at the start of a boom only to Metallurgical, this could see the numbers commanded
graduate when the industry had started to suffer, not by sought-after engineers spiral out of control. This
allowing them to find work easily. Those that regard is especially the case for more specialized engineers
the industry in a less-than-fortunate position when across geotechnical, planning (long term) and those
they choose their major in university will now, more with underground time.
than ever, opt to steer away from a mining related
bachelor’s degree. CSG Talent continues to follow these trends very
closely, having run similar reports for the past 3 years.
With less individuals graduating, the problem of the We believe it is crucial for internal HR & Recruiting
mining engineer shortfall may not be as apparent teams to understand these challenges, in order to plan
now as it will be in the next few years. However, we and prepare talent strategies, particularly in relation to
are already very clearly starting to see the numbers succession planning. Beyond this, a focused industry-
of available engineers reduce whereas the amount wide strategy is clearly required to address the rapidly
of mining engineering opportunities across websites declining numbers of graduate mining engineers.
such as Seek, Mining Hub, Careermine and LinkedIn
continues to increase.

Hiring will become more challenging for mining

companies, especially those that require individuals
to relocate. Relocation requires a sacrifice to up-sticks

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 DEDICATED EXPERT - CONTACT

Jon Taylor
Principal Consultant - Technical

Jon specialises in recruitment across geology, exploration, and technical services specialisms.
This includes management level geologists /technical personnel right through to corporate level: Group
General Managers and CEOs. Jon is a global recruiter, with expertise not limited to big global mining hubs. His
roles cover the areas of planning, geotechnical, technical services, resource geology and corporate level.

As well as working with some of the leading global brands in North America, Canada, Peru and Chile, Jon
has provided recruitment solutions for businesses in Mali, Eritrea, Macedonia, and Greece, to name but a
few. Having previously worked in the mining industry before joining CSG in 2013, Jon has cultivated a global
network of technical and commercial experts within mining. He was instrumental in developing the mining
offering at CSG in Australia and laying the foundations for a team which has grown to become one of CSG’s
most successful.

+61 406825549 / +1 240 317 7993 Currently in between Sydney & Toronto

jon.taylor@csgtalent.com.au linkedin.com/in/jontaylor2

PROVEN GLOBAL SUCCESS

 RESEARCH REFERENCES

McHugh A, 2019. Tackling the skills shortage in Australia’s mining sector [online]. Available
from: cormacconsulting.com.au/2019/05/tackling-the-skills-shortage-in-australias-mining-
sector/

Engineersaustralia.org.au. 2020. WA Warns Mining Skills Shortage Imminent | Engineers

Australia. [online] Available at: https://www.engineersaustralia.org.au/News/wa-warns-mining-
skills-shortage-imminent.

BITA, N., 2019. Crippling Shortage of Mining Engineer Graduates. Lack of mining engineers
causing concern. [online] Available at: https://www.pressreader.com/australia/the-observ
er-8995/20190104/281487867480254.

Au.jobted.com. 2020. Mining Engineer Salary in Australia (2020) | Jobted AU. [online]
Available at: https://au.jobted.com/salary/mining-engineer.

Industry Queensland. 2020. Dearth of Engineers Hurting the Economy - Industry Queensland.
[online] Available at: https://www.i-q.net.au/main/dearth-of-engineers-hurting-the-economy.
Knights, P., 2019. Short-Term Supply and Demand of Graduate Mining Engineers in Australia.
[online] SpringerLink. Available at: https://link.springer.com/article/10.1007/s13563-019-00208-
0?shared-article-renderer.
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