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skIlls




        WA miners stiffen for




                   COVID influx



       W   est  Australian  Premier  Mark  spread.
                                             “[Guidance assumes] development of the
           McGowan’s decision to delay reo-
       pening of the State’s borders has granted   pandemic does not lead to government-im-
       the local resources sector more time to   posed restrictions and widespread protract-
       prepare  for  the  impact  of  community   ed cases related to new highly contagious
       spread of COVID.                    variants with high severity, which could re-
        McGowan’s surprise January 20 an-  sult in a significant number of our production             Stuart Tonkin
       nouncement that the planned reopening on   critical workforce and contractor base being
       February 5 would not go ahead will allow   unable to work due to illness and/or isolation
       WA miners to continue almost two years of   requirements,” the company said.  ing the end of mining at its prolific DeGrussa
       largely uninterrupted operations.     “This risk extends to prolonged interrup-  copper operation in the Murchison district of
        The WA industry has bucked global trends   tion of service from a key partner or supplier   WA – has been stockpiling ore in anticipation
       in the last two years, enjoying near record   which could lead to severely constrained   of community spread.
       levels of production and revenue thanks   operational activity of a key asset or project.   “In the back of our mind, we are conscious
       to surging demand and the State Govern-  This risk is exacerbated globally by tight la-  of the border opening and have been trying
       ment’s decisions to declare mineworkers   bour markets and supply chain delays.”  to build some buffer depending what hap-
       “essential” while placing strict border con-  BHP Ltd also acknowledged the impact of   pens regards community transition once we
       trols on the outside world.         the virus and related restrictions on recent   reopen,” chief operating officer Jason Grace
        Impact to industry has been limited to   and future iron ore production.  said.
       access to non-domestic labour pools with   “The  proposed  easing  of  Western  Aus-
       many workers unable to travel between   tralia’s  border  restrictions  on  February  5
       states and others reluctant to relocate to   may introduce some short-term disruption to   The Federal Government’s decision to
       WA.                                 the operating environment as the COVID-19   offer rebates on international student and
        Rio Tinto Ltd’s half-year results showed a   pandemic evolves in the state,” the company   backpacker visas has been welcomed by
       4% decrease in production from its Pilbara   reported in its half-year statement.  the Chamber of Minerals & Energy WA
       iron ore operations. While the company   WA’s largest gold miner, Northern Star Re-  (CMEWA).
       placed much of the blame on above-aver-  sources Ltd, also saw production and costs   Prime Minister Scott Morrison announced the
       age rainfall, cultural heritage management   hampered by the border closures but with a   initiative on January 19 in an effort to entice
       and delays in growth and brownfields pro-  recent COVID-19 outbreak on its Pogo mine   young people to Australia to ease employ-
       jects, it also pointed to the ongoing impact of   in Alaska still fresh in the mind, the company   ment issues across several sectors.
       COVID-related policies.             is confident it will adjust to any community
        “Ongoing COVID-19 restrictions and a   spread in WA.                    CMEWA chief executive Paul Everingham
       tight labour market have further impacted   “We remain on track to meet our FY22   said the initiative could help relieve some of
       our ability  to  access experienced contrac-  guidance, which incorporates the current   the 40,000-worker shortfall the WA industry
       tors and particular skill sets,” the company   WA border closure and associated labour   could face in the next two years.
       said in its half-year report.       and cost impacts,” managing director Stuart   “International entrants are likely to react
        The proposed February 5 reopening   Tonkin said during the company’s quarterly   positively to initiatives like this visa rebate,
       would’ve meant a switch in industry strategy   presentation.             which will remove one of the potential barriers
       from  struggling  to  get  workers  into  opera-  “Overall, it is still difficult to establish what   associated with travelling to Australia,” Ever-
       tions, to keeping the virus out of mine sites.  the actual impacts could be. All the com-  ingham said.
        Prior to the decision to reverse the reo-  panies [in WA] are very well prepared and
       pening, CMEWA chief executive Paul Ever-  particularly given our experience at Pogo in   “The backpackers among them will provide
       ingham said the relaxation of border restric-  Alaska we’ve implemented a lot of the same   an important labour source for the agricultural,
       tions was crucial to easing the growing skills   things to mitigate the amount of contacts our   retail and hospitality sectors in particular,
       crisis.                             teams are having. We have a lot of contin-  which may in turn free up other workers to
        “The reopening of borders into WA…will   gencies and diversification in where opera-  pursue opportunities in mining.
       be a very important first step towards alle-  tions, activity and skills fit.  “Many of the students, meanwhile, will be
       viating some of these skills pressures, pro-  “There is trepidation, probably more re-  studying subjects that will equip them with
       viding access to labour pools interstate and   lated to the regime of quarantine related to   knowledge and skills that will very much be
       overseas that industry has traditionally been   positive cases and close contacts. If it is the   required by our sector, both in the short and
       able to call on in times of need,” he said.  14-day quarantine, that becomes a problem   longer terms.
        Rio Tinto acknowledged the new threat   as the domino effect of more cases [takes
       in its report, leaving open the possibility that   hold]. We believe that will be reviewed and   “CME and its member companies are very
       COVID-19 could impact WA iron ore opera-  that there’ll be a risk-based approach and   much committed to helping prepare the
       tions even after hard borders were lowered   that will involve the rapid antigen tests that   mining and resources sector workforce of
       in the same way business in the rest of   everyone is stockpiling.”      the future, and students benefiting from this
       Australia has been affected by community   Sandfire Resources Ltd – which is near-  rebate will be part of that.”


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