Shortage of Underground Mining Engineers

Global mining houses are struggling to source quality engineering candidates for their underground operations across the world. Companies involved in Gold mining in Australia, West Africa and Canada especially are offering additional incentives to attract the right talent.

The mining sector is driven by large multi-national companies which are sustained by mineral production from their mining operations. Major companies usually are expected to have mining-related revenue of more than US$500 million per annum with the financial capability to develop a major mine on their own. Mid-size companies have at least $50 million in annual revenue but less than $500 million. Junior mining companies are regarded as those that have revenue of less than US$50m per annum and they rely on venture capital or equity financing for their exploration activities which is usually the extent of their operations.

Candidates are looking for openings that provide challenging work and are prepared to consider unusual postings. They like a fast-paced environment, can work under pressure and are able to meet tight deadlines. At the same time these potential employees are also looking for firms that are committed to high quality safety, health and environmental practices so that risks to themselves are minimized.

Salary packages are already very attractive but this is not enough of an inducement to be able to fill all available permanent positions even though companies allow tax structuring options. In addition to a competitive salary, companies are providing extended premium medical and dental care, performance bonuses and potential shareholding opportunities in companies. Benefits also can include superannuation or pension top ups and extended leave facilities.

Companies are providing recreation opportunities including a swimming pool, tennis, squash courts and gymnasium within the camps where staff are housed. Another service that candidates are looking for is internet and telephone connectivity so that they can keep in touch with the outside world. All these are additional enticements to attract the best talent to what is often a very inhospitable environment. Many underground mines are in remote areas which are difficult and expensive to get to.

Engineers also want flexible working practices that are family friendly. Hiring companies are sourcing talent from all over the world on a contract basis and are picking up the additional costs relating to trips home on rotations that are mutually acceptable to both parties. Where staff are recruited from within the country where they are to be posted, the rotations may be shorter and more generous e.g. 12 days on / 9 days off. Many of these contract positions include most of the benefits offered to permanent staff.

Jobs are available in all disciplines including supporting roles in both the principal company and its sub-contractors. Non engineering openings include process and materials handling, electrical power and instrumentation, controls and automation and mine ventilation jobs. Global mining houses are able to attract the best staff and career development opportunities but the growth in the number of junior miners is adding to the stress on the marketplace for talent.

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Engineer GCC mining qualification

Many mining engineering job opportunities have a requirement for candidates to have a Government Certificate of Competency (GCC) – Mines and Works, over and above their academic qualifications and working experience. This certificate, also referred to as a “Government Ticket”, is issued to a successful candidate by the Department of Minerals and Energy in South Africa. The qualification is widely used as a recommendation for positions in mining roles in Africa, not only within South Africa’s borders.    

The rules and syllabi governing this qualification are regulated in terms of the Mine Health and Safety Act (1996). A certificate is issued to successful candidates in one of two forms:  

Certificate of Competency as Mechanical Engineer for Mines and Works  or

Certificate of Competency as Electrical Engineer for Mines and Works.

There are various steps to be completed before registering for the Qualifying Examinations which are held twice yearly.  The Institution of Certificated Mechanical and Electrical Engineers, South Africa (ICMEESA) provides clear guidance on this and has published a chart showing the different routes to GCC.

http://www.icmeesa.com/eduroutediagram.htm

1.  Qualifications required

Academic Route  

A B.Sc. degree in mechanical or electrical engineering recognized by the Commission of Examiners ; at least two years post graduate appropriate practical experience in the maintenance and operations of mechanical and  electrical machinery, satisfactory to the Commission of Examiners and of which at least one year has been at a mine in the RSA; or

Technikon Route

Individual Technikons may structure a curriculum to cover the electrical and mechanical courses according to the requirements of the Plant Engineering syllabus. However, these are subject to a clear set of pre-requisites for formal learning and length of experience similar to the academic route.

The qualifications and experiential learning leading up to acceptance for the qualifying examinations should, theoretically prepare the student to write the exams.  In practice, it normally happens that additional tuition is needed to prepare for the exams, particularly in the mathematical calculations. External service providers run refresher courses to prepare candidates especially those with demanding day jobs and those who graduated many years earlier. 

2.  Qualifying Examinations

To qualify for a Certificate of Competency as Mechanical or Electrical Engineer for Mines and Works, the following subjects must be passed by persons accepted as candidates:

(a) Plant Engineering; and

(b) Legal Knowledge (Health and Safety Act and Regulations).

To qualify for a Certificate of Competency, candidates must obtain at least 50% in each subject stipulated above. Candidates need not pass both subjects at the same examination sitting, but the second subject must be passed within three years or six consecutive examination sittings after passing the first, otherwise both subjects must be re-written.   An appropriate Certificate of Competency will be forwarded to candidates who have passed the subjects required to qualify for such a certificate.

There are additional requirements and regulations available to prospective candidates who are advised to refer to http://www.dmr.gov.za/Exams/Enegineers.html

China’s investment in Africa

It seems that every week we hear of further Chinese investments in the African economies.  Although there are mixed opinions on how growth is being achieved, and at what “expense”, there is no doubt that the money is coming rolling in.  South Africa's Standard Bank, Africa's largest bank, forecasts in their outlook for the next five years, that investment from China into Africa is likely to hit US$50 billion by 2015, up 70% from 2009.

The BBC reported at the beginning of 2011 that it will be a bumper year for Chinese investment and that Ethiopia is a good example. Addis Ababa, capital of the country which is home to an estimated 88 million people, is awash with cranes and half-constructed buildings, mostly financed by the Chinese.  

At the World Economic Forum (WEF) Meeting held in Cape Town, South Africa in May 2011,  Liu Guijin, African Affairs special representative of the Chinese government, stated that “ China's investments in Africa have brought multiple benefits to the continent, providing better livelihood, more development opportunities and more choices for local people”. He announced that “In Zambia, Mauritius, Nigeria, Egypt and Ethiopia, China has invested more than 250 million U. S. dollars in economic and trade joint ventures, or local infrastructure”.  

All this activity, however, is creating challenges for other investing countries as it is making for a more competitive market for labour and impacting on salaries.  There is some criticism of possible Chinese exploitation of labour, their lack of commitment to skills development and the lack of use of local suppliers for their infrastructure projects. Questions have been raised by organized labour organizations about this new type of colonialism and whether China will contribute to real growth in the developing economies, or whether it will just source raw materials for its own production.      

Of the Chinese funded projects in Africa, one of interest is the The Angolan Benguela Railway.  The railway, one of the iconic rail routes in Africa, consists of 1344 kilometers of track and was opened in 1928 to transport copper deposits from inland DRC to the coast at Lobito in southern Angola.  A major Chinese investment from

China’s state-owned Sinohydro Corp is enabling this key route to be fully operational again after twenty-seven years of civil war destroyed much of it.  No doubt it is a business investment, not a social or benevolent project. 

Companies including Aluminum Corp. of China Ltd. and China National Petroleum Corp. are seeking acquisitions in Africa, buying iron ore, oil and copper assets to feed a growing economy.  The Chinese Government has recently announced plans to invest about $5 billion dollars in private equity funds in Africa, the majority directed t the Nigerian construction and energy sectors. It will be facilitated by the China-Africa Development Fund.  

The Economist reported recently that The Heritage Foundation, a US think-tank estimates that between 2005 and 2010 about 14% of China's investment abroad went to sub-Saharan Africa.  Although much of this is invested in mining and infrastructure, China is now bringing funds to contribute to upgrades in technology, much needed to support its growing businesses.   

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Demand for Construction Professionals in Africa

Vital to the economic growth of countries in Africa is the continued development of the infrastructure, both within and across borders. Funds are increasingly being made available by the European Union (EU), the USA and various non-government organizations (NGOs) to provide reliable and continuous access to basic services such as transport, water and electricity.

The developed world has a vested interest in upgrading roads, telecommunications, rail links and access to power and water. Poor infrastructure is reducing productivity by up to 40% in some countries reports the Infrastructure Consortium for Africa (ICA) “Africa’s transport costs, local, national and international, are around twice as high as those for a typical Asian country” states their 2011 study. It is clear that major improvements are needed to promote economic development.

Construction managers and other professionals are desperately needed to fulfill roles in the projects being rolled out in the Africa Region. Jobs are available at all levels in the private construction sector in global companies. Many projects are funded by NGOs which provide guarantees of a sustained level of job security, pay and benefits. Multi-million dollar projects are managed by the EU, UNICEF, World Vision, World Bank and OXFAM amongst others.

Some examples of latest projects that require urgent staffing are:

30 million EU Euros provided Algeria’s water requirements

The project will finance the development of a national digital network for water management and provide funds for a national training center for water treatment. Algeria will also contribute to this project which includes the acquisition of the latest laboratory equipment.

Bujagali Hydro-power project

The Bujagali project in Uganda aims to provide least-cost power generation capacity that will eliminate power shortages. The project will result in a 250 Megawatt hydropower facility on the Victoria Nile and will address both medium and long-term needs.

The Central African Economic and Monetary Community Trade Corridor Project

The goal of this CEMAC project is to facilitate efficient regional trade and reduce transport costs among CEMAC member states and improve access to world markets. More than 35 million people live in the six CEMAC member states. These Central African states are among the richest in Africa in terms of mineral resources.

Nigeria’s investment in ICT connectivity

Nigeria is investing more than US$450 million a year into its ICT infrastructure to improve performance mainly through expanding bandwidth and on-line access.

Construction managers and engineers with language capabilities in French and Portuguese are particularly sought after and can demand a premium in the market. Opportunities are available in Angolaand Mozambique and in Central and West Africa. In Nigeria and in East Africa the shortage of water and environmental engineers is evident. Many projects require experience in managing water reticulation and piping projects whilst adhering to the latest environmental regulations.

On current trends, Africa will not meet the Millennium Development Goals for water and sanitation. Construction professionals are also urgently needed to build schools, roads and railways to contribute to Africa’s growth and improve trade links. Only one in four Africans has access to electricity at present so there is a lot of work to do.

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