This is yet another challenge facing the mining industry in attracting and retaining skilled staff such as mining engineers and geologists.

According to research by McDonald and Company proprietor Steve McDonald into graduate remuneration in the mining sector, although the mining sector offers remuneration that appears to be well ahead of the general market, it still needs to take into the account of other, what could be perceived as more attractive, options.

“A key consideration for many prospective university students will be whether the effort involved in tertiary study, the period of relative poverty which limits social opportunities in the late teens and early 20s and the prospect of a substantial HECS debt on completion are worth it. Some would argue that starting a trade after Year 10, earning a wage from 16 years, enjoying free tuition and graduating just after 18 years of age as a fully qualified tradesperson is a smarter way to go,” McDonald said.

He said a significant challenge for the mining industry was the apparent reluctance among many prospective graduates to work in remote areas when other degrees offered a capital city lifestyle with attractive remuneration and prospects for corporate advancement.

“For younger graduates the perceived social disadvantages of remote or regional centres may be a disincentive. For older graduates, the problems may include limited social and employment prospects for a spouse; and, at a later stage there may be concern about the standard of educational facilities for children. For upwardly mobile professionals constraints on the opportunities available to their children may provide insurmountable barriers,” he said.

McDonald said the industry had worked towards making mining more attractive with the introduction of commute rosters. “While they may have many problems at least the spouse and family can remain in a metropolitan area; the spouse may be able to continue at work; the children attend a school of choice; and, at the completion of school, attend tertiary training or find employment close to home.”

He said there was a growing trend among companies with commute rosters to use shorter cycles for professional staff. These include 9/5, 5/2, and 5/2/4/3 patterns which can bring a little more “normalcy” into the work / social equation.

Employment opportunities in capital cities were also increasing for mining professionals, with opportunities in the investment and technical appraisal areas as well as in employment with consulting engineering companies.

McDonald put to test the theory that benefits of tertiary education included greater potential for salary growth and career development in his 2003 survey of the Australian mining industry.

“Mining engineers have the prospect of a median starting package (Total Fixed Remuneration) in excess of $60,000 per annum in their first year of employment in the mining industry. This climbs to a median package close to $90,000 on completion of five years’ experience,” he said.

“Compared to average ordinary time weekly earnings of $47,788 per annum this is a premium of 87%. Perhaps the gloss is removed a little when one considers that the median Total Fixed Remuneration for a Mechanical Tradesperson on day shift is $79,450, a premium of 66% on average weekly earnings. And the tradesperson has probably been earning this for six of the years that the mining engineer has been finishing studies and completing his or her program of professional development.

“The mining engineer has prospects for further career and remuneration progression either within the discipline, such as senior mining engineer or in management. The tradesperson has prospects in technical areas such as maintenance planner or supervision.”

Surveys in both the metalliferous and coal mining sectors by McDonald and Company show the mining sector does employ a reasonably high number of graduates, although metalliferous mines employ a higher amount than coal. In the October 2003 metalliferous survey 56 of the total 174 complement of mining engineers were graduates (32%). There were 114 mining operations represented in the survey. There were 0.5 mining engineers employed, on average, in each operation.

In the December 2003 coal survey 21 of the total 109 complement of mining engineers were graduates (19%). There were 70 mining operations represented in the survey. There were approximately 0.3 mining engineers employed, on average, in each operation. That is between every three coal mining operations one graduate was employed.