Navigating Career Stability in Mining
The mining industry, often seen as a bedrock of long term career stability, harbors a hidden truth - it can be inherently unstable. It is perhaps one of the industry’s worst-kept secrets, but the reality is that job security in mining can be as fluctuating as the value of the commodities it extracts from the Earth. This blog post sheds light on the often volatile nature of mining careers, with a focus on the critical events of 2013 that led to widespread layoffs of geologists, illustrating the risks that lie beneath the surface of this seemingly secure profession.
Iron Ore: The Wild Ride, from The Sydney Morning Herald. Slowing economic growth in China led to a reduction in demand for iron ore and collapse in price. Many of the geologists that were hired between 2009 and 2011 to take advantage of the skyrocketing prices were subsequently laid off once prices dropped.
A Rocky Road: The Geologist Layoffs of 2013 and beyond.
The mining industry is known for its boom-and-bust cycles, and 2013 witnessed a significant downturn that sent shockwaves throughout the sector, after a boom from 2009 - 2011 following the global financial crisis. During this period, layoffs of geologists, typically considered an indispensable asset to the continued growth of the industry, exposed the vulnerabilities that can undermine career stability.
“The Australian Institute of Geoscientists (AIG) says 20 percent of 1,069 geologists it surveyed lost their jobs in the last three months.”
Why Geologists?
Geologists are the cornerstone of the mining industry. They are responsible for the critical task of locating and assessing mineral deposits, making them indispensable to the exploration phase of mining projects. With their expertise, mining companies make informed decisions about where to invest and extract resources. However, during the 2013 downturn, a perfect storm of factors led to their layoffs:
Commodity Price Crash: The prices of key commodities, including metals and minerals, plummeted in 2013 due to global economic instability, oversupply (caused by the rush to take advantage of high prices), and reduced demand, in particular slowed growth in China. This directly impacted mining companies' profitability, causing them to cut costs, which often meant trimming their workforce.
Reduced Exploration Budgets: To weather the financial storm, mining companies drastically reduced their exploration budgets. This left geologists with less work and fewer opportunities, as the industry shifted its focus to cost-cutting and existing mine optimization.
Mergers and Acquisitions: The industry experienced a wave of mergers and acquisitions in a bid to survive the tough economic conditions. This led to overlapping roles and job redundancies, causing layoffs even among experienced geologists.
The end result was catastrophic for geologists, and geology as a profession the world over, with almost a third of Australian geologists being un or underemployed in 2015.
2015 article from ABC News
The Ripple Effect
The geologist layoffs in 2013 sent shockwaves through the mining community, affecting not only those who lost their jobs but also the broader industry and which are still felt to this day. Here's how the ripple effect unfolded:
Skill Drain: The layoffs resulted in a loss of experienced geologists with specialized knowledge, leaving mining companies short of experts when commodity prices eventually rebounded.
Discouraging Young Talent: The job insecurity during the 2013 layoffs discouraged many young geologists from pursuing careers in the mining industry, leading to a potential future shortage of skilled professionals.
Industry Reputation: The instability exposed by the layoffs tarnished the industry's reputation, making it less attractive to investors, employees, and communities that rely on mining for economic stability.
Navigating Career Stability
Despite the inherent instability, there are ways for professionals in the mining industry to navigate their careers and maintain a level of stability:
Networking: Building a strong professional network can provide opportunities outside of the traditional mining roles. This network can help you stay connected with the industry during downturns and explore alternative career paths. Attend conferences and trade shows where you can.
Continuous Learning: The mining landscape is rapidly evolving with new technologies and environmental concerns. Keeping up-to-date with the latest industry trends and skills can not only make you adaptable and in demand, it is necessary for overall career progression including professional qualifications or chartership (e.g. C.Geol, P.Geo).
Diversify Your Skill Set: Geologists, and indeed all mining professionals, can enhance their career stability by diversifying their skill set. Acquiring expertise in data analytics, environmental management, and emerging technologies can make you a valuable asset in a variety of roles. (Edit 26/10/23) Getting qualifications in operation of machinery such as hault trucks or forklifts, or other hazardous mine jobs like blasting (tickets) can make you invaluable in the workplace, either on mine or in other careers.
Geographic Flexibility: Being willing to work in different regions or countries can open up new opportunities when the job market in your current location is unstable.
Contract Work: While easier said than done, in a volatile industry contract work can offer some level of income and job security. Despite lacking the benefits of full-time employment, it can provide income during downturns - this is where your professional network and reputation come into play.
Concluding thoughts
The mass layoffs of 2013 and beyond serve as a stark reminder of the inherent instability of the mining industry. While it is true that mining offers lucrative opportunities and exciting challenges, it is equally important to acknowledge and prepare for the sector's cyclical nature. To navigate a career in mining successfully, professionals need to be adaptable, continuously update their skill set, and maintain a flexible mindset. This way, they can unearth some level of stability hidden within the unpredictable terrain of the mining industry, ensuring their long-term career prospects remain robust even in the face of adversity.
“mining companies are experiencing a talent squeeze: 71 percent of mining leaders are finding the talent shortage is holding them back from delivering on production targets and strategic objectives.”
The mining industry is facing yet another existential crisis in the form of a skills gap of those with 6-10 years experience, which is ultimately harming the bottom line - perhaps somewhat predictable considering 5-10 years ago many employees were fired, and mining companies ceased hiring new employees. We’ll explore whether these two are related in an upcoming blog post soon.
Updates:
8/11/2023 - This post has generated some fantastic discussion on Linkedin, check it out here.