Outsourcing of Jobs in the Mining Industry

The mining service industry in Africa is growing at a rapid rate partially due to the global economic uncertainty that plagues the mainstream mining exploration companies.

Mining Service Companies
Firms involved in supplying contract mining services may carry out major or minor parts of a mining operation on a fee or contract basis on behalf of the more established multinationals. To be able to do this successfully they need to have a strong and flexible talent management process that can deliver the skills in the right place at the right price.

There is a certain amount of risk involved as their performance is highly dependent on the extent of mining activity especially in Australia, Africa and Canada. Fortunately their fortunes are safe for now as the rising prices and growing demand for minerals have led to a mining boom over the past five years. Mining services companies come in many guises and operate at every point in the supply chain. Service providers like these must ensure that their assets and resources are utilized effectively so that they can maximize their profits in the good times.

Contract employment
There is a vibrant market for mechanical and mining engineers, mine managers, exploration geologists and environmental specialists for open cast and underground contract mining projects in Africa.
Support roles on a contract basis are also offered in functions such as finance, supply chain, procurement and human resources. These opportunities are made very attractive to recruit the best available talent. There has been a surge in recruitment of qualified artisans on a contract basis at very attractive remuneration packages due to the shortage of qualified and skilled tradespeople. The number of artisans qualifying per annum is not enough to satisfy the market. Low salaries whilst training and a poor level of education in science and mathematics are cited as contributing factors. Especially in demand are diesel mechanics, pipe-fitters, plumbers and electricians, boilermakers, welders and maintenance managers, all of whom can earn good salaries on a contract basis.

The expat life

However, many contract positions are based in strange and remote locations on mines so this life is not for everyone. First timers are counseled about the challenges and care is taken to make sure that the appointment will work out for both parties. The impact of tax, both at source and at home and the cost of living in-country can cause difficulties that need to be managed by the employer, sometimes with requiring compensating pay. The United Nations assigns a “hardship factor” to countries which is often used in the mining and oil sectors to define pay and benefits as incentives. In addition, assimilation into the culture may be difficult especially if the family comes along and a foreign language is involved.

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