Lack of tech talent holds mining innovation back

Technology is advancing at blinding speeds: Artificial intelligence (AI), block-chain, the metaverse, and self-driving vehicles. The list goes on. Keeping track of new developments can be downright impossible, and it does not help that every month a hoodie-wearing start-up founder proclaims from their ping-pong table filled office that they are developing the next big thing.

It is certainly difficult to parse out what is important from all the noise coming from the tech elite. But that should not stop miners from trying, because the benefits of new technology are likely to be substantial. In fact, McKinsey & Co. estimates that AI alone will be worth up to US$390 billion in annual savings for natural resource producers by 2035, and the market for AI services in the mining industry is forecasted be worth US$240 million this year, up from just US$76 million only five years ago.

It is thus no surprise, in an industry that has yet to embrace technology to its fullest extent, that EY’s 2024 survey of mining leaders counts “digital and innovation” as both a key risk and opportunity for the industry. A risk for those that do not get it right, and an opportunity for those that do.

The promise of automation, increased safety, and more efficient operations is a big enough carrot to encourage the mining industry to invest in innovation. Indeed, according to a recent study by PWC, 49% of mining CEOs say that digitalization and automation are part of their companies’ long-term strategy.

So, what is stopping mining leaders from embracing technology to its fullest extent? Well, the path to technology adoption is littered with rocks and stones (and not the kind miners like). High costs of implementation, institutional resistance to change, and a downright lack of understanding all impede even the most forward-thinking mining leaders from adopting new technologies. But in an industry plagued by labour challenges, perhaps one of the greatest impediments to the digital revolution in the mining industry is at its core (no pun intended) a talent challenge.

Miners lack tech talent from the C-suite to the mine site

Organizations rely on leaders to understand and champion the adoption of new technologies. Unfortunately, according to a survey by Egon Zehnder, only 18% of senior leaders in global mining come from a digital background, and only 28% of top mining and metals companies have created or expanded roles focusing on digitalization.

It is no wonder that many mining companies struggle to implement new technologies when top leaderships teams lack technological understanding. One way mining companies may look to overcome these challenges is by bringing in experts from outside of the industry and by introducing leadership positions that ensure that technology strategies are aligned with the organization’s broader vision. For this reason, chief information and chief technology officer roles, leadership positions that ensure the C-suite has visibility on technological developments, are becoming more and more ubiquitous.

Though top-down leadership is important to help champion big ideas, many miners are also skeptical that their current talent pool is equipped to undertake large technological changes. Given a rapidly aging workforce (20% of Canadian mining professionals are over the age of 55), there is fear that the mining workforce may be resistant to change.

The mining industry is dealing with a critical talent shortage that 71% of mining leaders say is holding them back from strategic objectives. While many mining leaders look to automation to combat workforce shortages, some fear that adding additional technical requirements to an already tight labour pool will only exasperate a talent problem that is not going anywhere anytime soon.

To combat this, mining HR leaders need to the look at increasing the tech talent pool in two ways: By developing it and attracting it.

Upskilling needs to be a key component of any technological transformation, as it tends to be less costly, and helps ensure that mining expertise can be kept within the organization and enhanced rather then lost completely.

When it comes to recruiting tech savvy talent, attraction strategies need to be rethought. In general, tech talent prefers to talk shop with likeminded individuals, so in the interview process, HR leaders should emphasize putting candidates into discussions with tech teams as early as possible.

Speed is also the name of the game when it comes to moving through the interview process. In a digital world where everything is on demand, tech job seekers want to move quickly. In fact, 57% of tech job seekers are unhappy with the waiting times in interview processes, and 35% are unwilling to wait more than a week to hear back after an interview. To attract tech talent, moving fast in the hiring process is critical.

Finally, mining leaders need to be realistic about what new technology and digitalization will mean for their workforce. While some mining leaders may believe automation will get rid of their talent woes, miners should instead think of automation as a change to their labour requirements, not getting rid of them altogether.

For example, Nutrien recently implemented a tele-remote mining program, that has not eliminated any jobs, but instead moved operators away from the physical location, and into a more comfortable control room.

While overall headcount at a mine may decrease, to operate more digitalized equipment and software, the talent to do so will need to be hired. This means miners will not only need to compete for talent with each other, but also with the tech giants. Instead of headaches about how to get people to and from the mine, mining leaders may instead need to contend with high bean bag prices at their tech hubs.

The future of tech and how it could impact mining talent are not all negative. As mining embraces new technology, miners have an opportunity to rebrand themselves as a more forward-thinking industry, one that the most innovative young minds want to work in. As one mining professional put it, “Young people do not want to work at a mine, they want to work at Google.” As miners embrace technology, perhaps the next generation of miners can have it both ways: Being able to contribute to one of the most critical industries in the country while working with cutting edge technology. 

Danny Parys is a senior consultant at Calross Consulting.

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