Mining is a labour-intensive process that the human race has participated in since prehistoric times. It is the process of extracting minerals, oil and gas (otherwise known as commodities) which are essential to most industries and people. These minerals have a vast range of uses in everyday life. The opportunities from the mining industry are numerous, the modern world would not function without the mining industry. Naturally mined resources are essential to produce all modern technologies that are used in contemporary life, this for example, includes the development of life-support device technologies that are used within the
medical field to improve human health.
In a given location, the total quantity of minerals in a particular deposit is referred to as the mineral inventory, however, only the quantity which can be mined at a profit is termed as the ‘ore reserve’. Consequently, if the selling price of a commodity (e.g. iron, copper, manganese, etc.) rises or the cost of operations fall, it affects profit margins. A mine may cease production for several reasons. For instance, the deposits may become exhausted (no more minerals to extract from the ground economically or all minerals are mined out). When this occurs at a mining site the operations transition into a new phase called rehabilitation. Commodity prices may have dropped to such an extent that is no longer profitable to continue mining operations, and the same holds true if operational costs rise.
Mines operating in the Northern Territory (NT) undergo the same scientific, administrative and construction processes comparable to other mines across the globe. The mining industry is the single largest source of export revenue for Australia and the sector continues to be amongst industry champions in driving innovative enhancement. The Northern Territory’s contribution to the gross domestic product (GDP) of Australia cannot be underestimated.
The mining sector includes operations that explore and extract minerals, oil and gas. The mining sector provides a variety of
services to firms engaged in the listed activities.
A mine site’s journey has humble beginnings but goes through an array of changes from an untouched area of land to accommodating state-of-the-art infrastructure. The initial phase of exploration identifies an area of land that may be rich in a particular commodity (e.g. oil, gas, gold, copper, iron, and other rare earth minerals). From a business perspective, it is extremely important to keep profit margins in mind, when evaluating potential mineral deposits.
Following initial regional exploration, areas may be selected for more intensive exploration investigation. When this phase is reached, significant greater investment is required to evaluate and
investigate the economic viability of these resources. Intensive and focused explorations are completed to determine the quantity and grade of the potential resource. Ultimately, if the project has the potential/ justification for investment, mining operations can commence. When the approved mine site has been established, the operation commences by first constructing the infrastructure around the mine site which is used to support extracting, processing and shipping of the commodity to its designated location, which include markets overseas.
The importance of mining cannot be understated. The world today cannot function without the commodities that are extracted and recovered from mining activities. Mineral products are essential in the manufacturing of a spectrum of products such as mobile phones, batteries and much more. Australia had the world’s third-largest reserves of lithium, measured in 2016, and is the largest producer of lithium in the world. Australia is ranked sixth in the world for having the most sought-after rare-earth elements.
Moreover, Australia is ranked second for production of these elements, yet many of these deposits remain untapped.
Australia also has large resources of cobalt, manganese, tantalum, tungsten, zirconium and iron ore.
The demand for critical minerals around the world is growing.
As neighbouring countries with younger population demographics become further developed so does their demand for manufactured goods. The opportunities for foreign entities to invest in mining presents a potential economic stimulus for the Northern Territory (NT).
As a country, Australia has an attractive investment environment and the new sources of capital being brought into the NT is crucial to the development of Australia’s critical minerals sector.
The mining industry of the Northern Territory (NT) is one of the mainstays of the economy, contributing immensely to the gross state product (GSP). Additionally, the industry has over the past few decades remained and continues to be a key pillar of the Australian economy. The mining industry is also responsible for creating and sustaining employment, especially in regional areas. The mining industry in 2018-2019 was the second-highest contributor to the Territory’s GSP accounting for 18% of the total contribution. In terms of employment in the Northern Territory, 5.2% of the Territory’s workforce was employed in the mining industry in 2019. The diagram reveals the scale of the contribution of mining towards the GSP in 2019.
Despite the enormous contribution of the mining industry to the Australian and the Northern Territory’s economies, it is not without challenges. Workforce shortages, in particular occupations, are increased during heightened activity periods. Existing reports show that the demand for the workforce relevant to mining far exceeds the supply. The nature of the sector ensures high economic impact in any setting. The lucrative returns of mining activity lure many stakeholders to the table. It is important for relevant local stakeholders to benefit from the opportunities associated with these projects. With a high expectation of the Northern Territory Government (NTG) and relevant stakeholders to achieve local content at contractual, supply and workforce levels, organisations including supporting industries are required to understand the work associated with the various stages of the project.
The mining contribution over a ten-year period paints a telling picture of how significant the mining industries contribute to the overall gross state product (GSP) of the Territory. If this important sector of the economy was missing, it would have severe consequences within the Australian and NT’s economies.
ISACNT - Central Five Mines Workforce Report
The graph shows the Northern Territory’s (NT) reliance on mining comparative to other resource rich mining states like Western Australia and Queensland. The NT had the second-highest level of exports as a share of GSP in 2019. The NT is a resource-reliant jurisdiction in Australia as this graph demonstrates, 39.4% of the exports originate from the mining industry. The NT’s mining industry thus provides a large scale of importance for the local economic situation. Consequently, changes within the mining industry or regulatory settings could potentially limit the mining activities which may have significant impacts on the economic situation and the NT’s ability to grow and prosper financially.
The map displayed depicts operating mines and mineral deposits in the Northern Territory (NT). The legend indicates what type of commodity is available in the Territory. A list of the 24 critical minerals has been identified by the Australian Government as essential for the economic and industrial development of major and emerging economies in the world. Seven of the identified critical minerals are in deposits in the Territory as highlighted. It should also be noted that other commodities like Gold, Bauxite, Zinc, Lead, Ilmenite, Uranium and other non-metallic minerals are mined in the Northern Territory
In the Northern Territory (NT), there are 24 projects that have been awarded a Major Project status (private and government-initiated projects). This includes 14 private sector projects and 10 government facilitated projects. Not all of these are mining, however, half of them are mining-related projects. The table illustrates five potential future mine site developments across the Territory. These potential mines are at various planning stages of their respective project cycles. All of which are in the post exploratory phase. While, some of the projects have environmental approvals already placed and are in the assessment phase, others are undergoing the due process. ISACNT had recently been engaged, by the NT Government, to undertake a workforce study investigating the occupations in demand. Investigations were also conducted on both the capability and capacity of the local region near these projects to support the potential opportunities lying ahead.
The mining industry in the Northern Territory (NT) has, after its peak in 2016-2017, employed fewer people due to mining projects closing, finishing or reducing the output of their operations. Nevertheless, due to the rapidly changing nature of the mining industry, this current situation may soon change. A hypothetical scenario of a potential change could occur from a global change in commodity prices or in the demand of certain commodities which in turn would create a boost/decline in employment figures. For example, if the global demand for uranium rises and mining operators within the NT re-assess existing resources or simultaneously discover a new rich uranium resource, this could potentially encourage investment leading to new operations starting which would drive a spike in employment rates extensively within the mining industry.
I am hoping the award of contracts and employment for any potential upcoming mine will be localised; however, the mining proponents may look outside the Northern Territory because stakeholders may not be in the position to bid for contracts due to lack of knowledge and information about the project.
ISACNT - Central Five Mines Workforce Report
In the current workforce situation in the Northern Territory’s mining industry, there is a range of occupations that are high priority. This means the industry is or expects to be, unable to fill positions within certain occupations in its needed timeframe. Difficulty to fill high priority jobs, limits the mining industry’s efficiency and productivity, consequently, highlighting the importance of gaining more high priority workers to arrive in the Territory. To date, research undertaken by ISACNT illustrates some occupations that the industry considers as high priority occupations:
The research and industry engagement undertaken by ISACNT sheds light on the obstacles standing in the industry’s way of attracting high priority workers to the Northern Territory. The research shows that common issues with attracting high priority workers are that no one with relevant qualifications apply for the positions, or the workers that do apply for the positions lack experience/skills/qualifications/licencing. Furthermore, the workers are often unwilling to move to regional/remote locations. Certain life-phases due to marriage, or starting a family are preventative for some workers to move. Currently, the industry is pursuing to fulfil the employment gaps by utilising a local workforce. If the local workforce is unable to fill the high in-demand occupations, the industry is prepared to take advantage of lucrative fly-in-fly-out agreements to attract talented workforce from around Australia.
The research and industry engagement undertaken by ISACNT sheds light on the obstacles standing in the industry’s way of attracting high priority workers to the Northern Territory. The research shows that common issues with attracting high priority workers are that no one with relevant qualifications apply for the positions, or the workers that do apply for the positions lack experience/skills/qualifications/licencing. Furthermore, the workers are often unwilling to move to regional/remote locations. Certain life-phases due to marriage, or starting a family are preventative for some workers to move. Currently, the industry is pursuing to fulfil the employment gaps by utilising a local workforce. If the local workforce is unable to fill the high in-demand occupations, the industry is prepared to take advantage of lucrative fly-in-fly-out agreements to attract talented workforce from around Australia.
Listed are some of the Northern Territory’s major and smaller operating mines. The categorisation of mines, as listed, is defined by a broad range of factors, for example, the size of the mine’s deposit, relevance of the mined material, and relevance of the market share. Likewise, the mining categorisations are further defined by the mine’s life span. The life span of a mine is determined by the probable, potential and proven resources available at a mine site. A mine with a long-life span is often termed as having over 30 years of operations since the mining industry often cannot predict beyond that time frame, as every mining deposit is contextually dependent on the evolving technology that is embedded in the mining industry and the market’s demand.
The seven major operating mines and three major oil and gas plants in the Northern Territory are:
Smaller operating mines in the Northern Territory include the:
The Roper Bar iron ore mine in the Roper region (Nathan River Resources) and Merlin diamond mine in the McArthur Basin are currently in a care and maintenance state. However, the mines have the potential to resume operations in the short to medium term.
The understanding of natural landscapes that contain the habitat of local flora and fauna has increasingly grown. However, this understanding has not always been common practice within the mining industry. Prior to 2005, there was no legal requirement for mining operators to put down a rehabilitation security bond in the Northern Territory. Mine proponents have in contemporary times invested heavily in mine rehabilitation processes. In recent times, the rehabilitation phase of mining operations has improved. There are now many regulatory requirements, policies and procedures from regulators administrating the industry. These regulations follow protocols that ensure mining operations are compliant, and that the environment is protected in accordance with approved conditions and laws. Mining proponents must also effectively close mining operations and complete the rehabilitation process. As a minimum, the site should be safe and stable adhering to the rehabilitation plans that were written before the closure occurs. These plans must be approved by regulators before rehabilitation activities commence. The closure and rehabilitation design plans are context specific for each mining area’s ecosystem, giving due consideration to restoring the area to as near as possible pre-mining state. The rehabilitation phase of mining operations requires a broad workforce including geologists, engineers, environmental scientists, and labourers to fulfill mining rehabilitation promises to an acceptable level, so governing bodies can sign off and return the rehabilitation security bond. Although mine-site rehabilitation is a legal obligation for all mining projects in the Northern Territory (NT), it is also an activity in which the mining industry can demonstrate its sustainable development commitment to its key stakeholders and the general population.
Northern Territory Government media release 2020
The Northern Territory (NT) is endowed with an abundance of natural resources-mineral deposits (gold, manganese, bauxite, diamond, iron, copper, zinc, silver, vanadium and titanium, limestone, oil and gas). This map displays the resource distribution of each region (Central, Katherine, Barkly, Darwin and Arnhem) in the Northern Territory. Every region in the Northern Territory is endowed with gold deposits, however, some natural resources are specific to certain regions. For instance, Central and Darwin Regions are the only areas endowed with oil and gas deposits. Notable oil and gas fields include Mereenie, Dingo, Surprise and Blacktip. Bauxite, manganese, zinc, lead and silver occur in the regions of Arnhem, Grove and McArthur River. In the Katherine region, gold is the predominant commodity but other commodities like lime and phosphate are also abundant. To the south in the Central Australian region, there is a range of commodities, gold, iron, vanadium, titanium, rare earths, phosphate, tungsten, molybdenum, copper, silver, oil, gas, salt and potash. The workforce needs of the Northern Territory are critical especially if its resource endowment is to be extracted and fully utilised. In recent research conducted by ISACNT on the workforce needs of the five potential mining projects (as displayed on page 11), it has been revealed an array of shortages in various skills, as previously demonstrated on page 13, exists in the regions of Central and Barkly.
The future of mining is an ever-changing canvas. There is undoubtedly a steep climb ahead as the industry moves towards a continuous digital and automated process. The Australian mining sector has always been at the forefront of innovation, as the nature of the industry demands such action, to ensure the industry remains globally competitive. Workforce requirements may change together with technological advances, which then may affect all facets of the mining industry. For example, digital and innovative mining techniques will influence the workforce needs, as innovations may limit the need for traditional operators. Likewise, the innovations can create further demand for a skilled, technologically knowledgeable workforce, creating a large demand for remote operators, data scientists and modellers which may replace the current core functional support workforce. The digitalisation may, therefore, decrease demand for some occupations from some operations and potentially move workers from the mine sites and locate them more conveniently within larger cities. The innovative changes within the mining industry will, therefore, likely reduce certain types of jobs, however, it may create new roles in other fields. The implications of the specialised skill sets that may be required in the future can evolve in conjunction with technology. The training organisations that aspire to accommodate these changing training requirements must keep up with the pace of the rapidly changing demand in this industry. The industry is best placed to provide feedback and guidance for the skills required for future employees in the mining industry.
Ken Vowles - Former Minister for Primary Industry & Resources
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