The side that learns the fastest will win
In the face of rapid technological advancements, shifting demographics, and uncertain global demand, the Canadian mining industry is undergoing a significant transformation, reshaping the landscape of employment and skill requirements for mine workers. The integration of digital technologies, artificial intelligence (AI), and automation is not only a trend but also a necessity to enhance sustained operational efficiency, productivity, and safety in mining operations. Earlier this year, I attended a variety of events including the Creative Destruction Lab Mining and Minerals session in Vancouver, a round-table discussion on digital transformation in legacy industries at MIT, and participated in multiple technology demonstrations at the NORCAT Underground Centre, and once again based on what I see happening in the global mining industry, I want to reiterate that the side that learns the fastest will win.
That said, one of the challenges of winning lies in attracting and retaining the talent capable of driving these technological changes and managing the ever-present tension between building and celebrating a culture of experimentation and technology adoption balanced with de-risking mining operations to ensure safety and conformance to regulatory requirements. It is not easy to win in this environment.
Numerous studies have highlighted the notable gap between the skills currently available in the workforce and those required to navigate this new digital and automation landscape. Albeit a global generalization, a 2023 report from the World Economic Forum has dubbed the 2020s to be the decade of development, citing, “for employees and employers alike, upskilling will be the only way for them to stay ahead of the competition in a rapidly changing world.” From my perspective, this is entirely applicable to the global mining industry.
In a 2023 article, research from EY showed that traditional approaches to re-skilling are not keeping up with the pace of change and the implications of digital innovation and adoption. This further reinforces the message that those who learn the fastest will win. Those that do not keep up, will struggle and eventually lose in this modern era. However, it is not only enhancing the technical skills of the workforce that will contribute to the competitive advantage. Fostering and celebrating a culture that values and invests in emotional intelligence and strong leadership, particularly at the supervisory level, will be imperative. As Aron Ain, former CEO of UKG often reiterated, “people join a company because of the company, but they leave because of who they work for.” Strong supervisors with the right skills, competencies, and confidence to manage and lead are integral to not only attract and retain talent, but also these individuals set the tone for technology assessment, procurement, adoption, and broader diffusion within the operation. This is the new world of work in the global mining industry. Leaders need to embrace the new pace of change and build a cultural-norm within their organizations to not just “deal” with the technology transformation, but to celebrate, embrace, and promote the opportunities that new technologies can provide.
To bridge this skills gap, companies are encouraged to view talent development and management as a strategic priority, on par with safety, production, and cost. This involves developing a long-term talent strategy that aligns with the industry’s evolving technological landscape and ensuring that this strategy is regularly updated and integrated into the company’s bespoke agenda and technology roadmap. Furthermore, the industry must double down on understanding what truly matters to employees, addressing the disconnect between management perceptions and employee values to improve retention and attract new talent. There are creative ways to assess this within organizations and those who gather this insight and act on it will be a step ahead.
In our work at NORCAT, we have seen meaningful growth in the acceptance and deployment of our virtual reality (VR), augmented reality (AR) and simulation-based learning technologies that are integrated into broader learning and development programs for mine workers. Not only are workers seeking learning and growth opportunities to facilitate the technology transformation era, but also they are seeking unique learning pathways to drive better learning outcomes, knowledge retention, and more meaningful learning experiences. For employers, doing this in a less expensive and faster way is simply the icing on the cake. In this context, the learning means is just as important as the end with the new generation of mine workers.
As an example of the new world of work, the mining industry’s future workforce will need to be adept at working within integrated operations centres, often referred to as “Nerve Centres,” which require a unique set of skills and roles to support decision-making across the value chain. This shift towards a more technologically integrated and sustainable mining operation offers an opportunity for the industry to reposition itself as an attractive career choice for the next generation of workers, including those from non-traditional backgrounds and underrepresented groups such as women and Indigenous Peoples.
That said, despite the apparent attractiveness of this example career opportunity, a five-year assessment of Canadian university engineering faculties from 2016 to 2020 conducted by Engineers Canada reported that enrolment in metallurgical engineering, mining/mineral engineering, and geological engineering, collectively accounted for less than 3% of total enrolment in engineering programs across Canada. What makes it more concerning is the continuing decline in enrolment. In 2020, enrolment in mining or mineral engineering and geological engineering programs were down 33% and 25%, respectively, from the year before. The interest from would-be students or incoming mine workers continues to wane and all stakeholders – including industry, capital markets, government, associations, and academe – have a pivotal role to play to promote and celebrate an industry that is investing in and deploying emerging technologies. This transformation and technology adoption not only drives financial and operational improvements, but also it creates well-paying jobs and careers that people want. We must keep telling this story for the industry to win.
The 2023 Mining Industry Human Resources Council of Canada labour market study reinforces how the adoption and integration of new technologies continues to significantly impact the workforce, necessitating a shift towards more technologically savvy, adaptable, and skilled labour. As automation, digitalization, and AI become more prevalent, traditional roles are evolving, and new roles are emerging. This transformation requires a strategic approach to workforce development, emphasizing upskilling, re-skilling, and continuous learning to align with the technological advancements. Moreover, it once again underscores the importance of fostering a culture that embraces change, innovation, and inclusivity to attract and retain talent in this new era of mining.
One of those evolving functions that has been at the forefront of a major research project between NORCAT and MIT is understanding the interactions between mining companies and their external stakeholder communities. We are asking questions such as: what are the meaningful engagement models between mining companies and innovation intermediaries that deliver value? What are the organizational structures and roles that work well? How can mining operations effectively scout and scan, assess, and de-risk potential solutions that add value to their business? To date, the research has evaluated, identified, and developed unique external engagement models and options that we believe will help mining operators, “the buyers of innovation,” expedite the procurement, adoption, and deployment of technology developed by “the builders of innovation.” The learnings from other industries, tech ventures, and mining operators, among other organizations from around the world, have revealed insights that will form the basis of a playbook to help support and expedite technology transformation, not only in the mining industry, but also for other legacy industries around the world. At this point, based on the findings to date, we can definitively validate, once again, that those organizations that learn the fastest will win.
Don Duval is CEO of NORCAT.
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