Leadership in the Minerals Sector - Challenges and Opportunities for Management of the 21st Century (70da9914-f91b-4baf-b68d-ad490f3fca58)

The AusIMM is concerned about the longer tem sustainability of the minerals sector in Australasia. Our contention is that the sustainability of the sector is at risk if we do not:   ò encourage more exploration in Australasia by removing impediments and         increasing incentives; ò fund our university and research centres appropriately to increase both our   prospectivity, and our processing efficiencies; and ò manage our human resources better.   This paper will focus on how we can better manage our human resources to assist in ensuring sustainability of the sector in Australasia .   From a production point of view:   Economic output = f (Land, Labour, Capital, Environment) where Land refers to all of the natural resources used in production. As well as land itself it includes water, forest, fisheries, oil, gas and mineral deposits. Labour refers to the skills and capabilities used by humans in the production process. Capital describes all of the manufactured aids used in the process of production1. The challenge for management is to ensure maximum efficiency and effectiveness of labour in the production process whilst maintaining sustainable development.   The 1992 Rio Summit defined sustainable development as maintaining and enhancing:   ò natural capital û defined as all natural resources, both environmental and   those of traditional economic value; ò manufactured capital û made by human kind, including produced goods,     infrastructure and built environment; ò human capital û defined as the health, well being, intellectual capabilities and   spiritual welfare of individuals; and ò social capital û defined as social relations and consultations within and   between societies, their norms and functionality2.   The minerals sector in Australasia has successfully focused on the technical aspects of each of these components of sustainable development with primary attention applied to natural capital and efficient utilisation of manufactured capital. The technical aspects of human capital and social have also been addressed through an emphasis on occupational health and safety and interaction with local communities however I suggest that, to date, insufficient emphasis has been placed on labour (human capital) to maximise economic output1.   It has become increasingly common practice to identify land as natural capital, labour as human capital and capital as physical capital. That is labour has been treated as a commodity rather than an opportunity to create a comparative advantage and this will be the greatest challenge for mine management to show leadership over the next decade of the 21st Century.   This paper will outline characteristics of the sector which are relevant to the management and utilisation of labour, outline the outcomes of recent AusIMM surveys, review the reasons for the current and future anticipated skills shortages, some innovative responses to the challenges and finally, suggestions on how mine management can show leadership.