Closing The Skill Gaps And Labor Shortages: A Priority For Mining Companies And The Chilean Government

Throughout Chile?s history, mining has consistently been a leading industry in the country. The 1990s marked the beginning of a boom in Chile?s mining industry, especially in copper mining, due to both foreign and local direct investment in the sector. Mining?s contribution to the GDP was 15.6% at current prices in 2009, and it accounts for 56% of the country?s exports. Chile?s copper market share reached 35% in 2009. The investment portfolio in mining in Chile for the coming decade has been estimated at 90 billion US dollars. The acute scarcity of human resources currently experienced by the mining sector in Chile will be accentuated in the coming decade as a result of this scenario of investments. The situation is, additionally, similar to the one confronted by other countries involved in the mining industry such as Australia, South Africa, Canada, and in Latin America includes, Peru, Colombia and Brazil. A study carried out by Fundacion Chile, ¨Labor Force in the Chile Mining Industry, Diagnostic and Recommendations, 2011-2020? shows the projected labor shortage for the operation of projects in the development stage, considering only the requirements of the process of extraction, processing, and maintenance. The demand, accumulated incrementally, will be around 115,000 technically skilled workers, professionals, and qualified workers. This figure refers to the operational work force, and does not include the human resources that will be required for the prior stage of the engineering and construction of the projects (brownfield and greenfield). The demand for technically skilled workers and professions for the stages of engineering and construction of the projects that have already received investments is estimated to be 190,000 people for the period 2012-2020. The peak of the demand for engineering is 2012, with a figure that surpasses the 12,000 professionals for all of the engineering specialties. The analysis of the formation of human resources at the tertiary level (where tertiary includes technical/vocational and academic degrees at the undergraduate level) for mining and related majors demonstrates that the programs are scarce with a bias toward theoretical contents and that they are excessively long (40% longer than comparable programs in Australia, Canada, and in OECD countries). The completion rates are low, especially in the technical-vocational programs, which have a completion rate of only around 30%. Finally, the rates of attraction of technically skilled labor and professionals towards careers in mining are insufficient to reduce the identified skill gaps. In the case of university professionals such as geologists, mining engineers and engineers in metallurgy, 80-90% will work in mining. In the case of graduates of relevant majors, that cover skills also utilized by other industries, not only mining?such as maintenance workers, operators of fixed and mobile equipment, etc.?the mining sector appears to be unattractive for reasons such as shift schedules, geographical location of work sites, and other factors. On the basis of the available diagnosis a strategy for the sector has been developed (Workforce Development and Skills Strategy) whose objective is (i) to define a Mining Qualifications Framework to identify the critical roles to be filled (ii) to start, with public resources, a ¨fast-track? training program to assure the availability of at least 28,000 operators (machinery operators, truck drivers, etc.) and maintenance specialists in 2015 (iii) to promote the development of training hubs for mining with learning technologies to train technical labor and professionals on the basis of world class standards (iv) to design and implement a campaign oriented toward the perception of mining as an attractive field of employment opportunity (v) to develop curricular innovations for tertiary education programs, on the basis of international benchmarks. Keynotes: Chile, mining, copper mining, skilled human resources