Bern Klein, Professor and Head

Norman B. Keevil Institute of Mining Engineering

McKinsey Global Institute 2013 Report

Needed by 2030:

o $17 trillion investment

o $2 trillion infrastructure

investment 90% Resource

investment in upper

and high-income

countries 81 Countries driven

by resources in 2011

accounting for

26 % of global GDP

Life of Mine Revenue Distribution

Copper Gold Project Peru

Ben Chalmers, Mining Association of Canada

Net Profit, $1,814,000,000

Off-site costs, $1,557,000,000

Operating Costs,

$4,242,000,000

Total Capital, $1,745,000,000

Taxes and Royalties,

$1,378,000,000 Net Profit

17%

Off-site

costs

14%

Operating

Costs

40%

Total

Capital

16%

Taxes and

Royalties

13%

2007 Production Nickel ($9.9 billion)

Potash ($3.1 billion)

Copper ($4.5 billion)

Coal ($2.8 billion)

Gold ($2.4 billion)

Diamond ($1.4 billion)

Iron ore ($2.5 billion)

Uranium ($2.5 billion)

Zinc ($2.1 billion)

Mineral Production in Canada

(Industry Diversity)

Values are in $CAD

2011 Production Nickel ($5.1 billion)

Potash ($7.9 billion)

Copper ($5.0 billion)

Coal ($7.0 billion)

Gold ($4.7 billion)

Diamond ($2.5 billion)

Iron ore ($5.3 billion)

Uranium ($1.1 billion)

Zinc ($1.3 billion)

Mining Operations

Canada’s oil reserves 2nd largest

to Saudi Arabia

62% of Canada’s oil production

2005 Production m3/day bbl/day

Suncor Mine 31,000 195,000

Syncrude Mine 41,700 262,000

Shell Canada Mine 26,800 169,000

In Situ Projects 21,300 134,000

TOTAL 120,800 760,000

At $75/bl, value about

$20billion/year

Projected 3million barrels per day

by 2020 (about $80 billion/year)

Oil Sands

Mining Facts-Canada

“Canada's mining industry plans to invest $136 billion in projects over the next decade”

http://www.mining.ca/site/index.php/en/news-a-media/publications.html

Mining Association of Canada, Facts & Figures 2011

Mining Facts-Canada

“The industry needs 10,000 new workers each year over the next decade to replace current positions and new ones”

http://www.mining.ca/site/index.php/en/news-a-media/publications.html

Mining Association of Canada, Facts & Figures 2011

Mining Facts-Canada

“The average weekly pay for a Canadian mining worker in 2010 was $1632” = about $85,000 /yr

http://www.mining.ca/site/index.php/en/news-a-media/publications.html

Mining Association of Canada, Facts & Figures 2011

Forecast HR Needs By Occupation Canadian Mining Industry Human Resources Council

• Heavy equipment operators

• Underground production and development miners

• Truck drivers

• Construction millwrights and industrial mechanics

• Workers in mineral and metal processing

• Welders and related machine operators

• Heavy-duty equipment mechanics

• Machine operators, mineral and metal processing

• Primary production managers

• Supervisors, mining and quarrying

Skills Training Targets

• Government

• Private Sectors

– Operations

– Service Companies

– Supply Chain

• Utilities and Infrastructure

• Combined across these groups, employment impact is >2.5 times the direct employment within operations

Types of Education

• On the Job Training

• On the Job Training with Certification

• Vocational and Trades Training

• University Training

• Life Long Learning (Professional Development)

Quality of Education

• Quality of Teachers

• Competency

• Partnering with Industry

– Apprenticeships

– Internships

– Co-operative Education

• Soft Skills – leadership, decision making

• New ways to learn – Online, team based learning, problem based learning

Developing Highly Qualified People for the Global Mining Industry

• University & Industry Partnership

– Masaki Miyoshi, MASc Student

– Survey Results Presented at SME 2014, Salt Lake City

13

HR Challenge

• Demographics

“Over  the next ten years,  m

i

ning’s  projected hiring requirements exceed 145,000 workers representing more than half the current workforce” (MIHR Report)

http://goo.gl/7PtfJL

“Some  pe o ple  ma y  de lay  re t i rement,  but we are slowly but surely heading into this serious shortage of people

over  the  ne xt  five  to  ten  years” (Interview 24)

14

Research Rationale

• Observations

• Literature Review

• Interviews

http://goo.gl/qbk50O

“what  we  are  go i ng  to  see  is  pe ople  ma ki ng  decisions without the necessary knowledge, skill,

and experience, and we are going to see mistakes. We  a

lready  se e  mi stakes  in  ou r  industry”

(Interview 22) 15

Theme A

• Cyclical nature of mining industry leads to short-term decisions

You need to see education as a long term strategic

commitment not something that can rise and fall on the

daily commodity price variation (Interview 12)

“when  things  t

u

r ne d  down  in  2008/2009  and  I  heard that (company name) stopped hiring I thought,  ‘my god, what are they thinking?’  You’ve  got  to  think  a  little  longer  term  that  that” (Interview 25)

http://goo.gl/UCskni

16

Survey Continues

• Role of mining engineer has evolved

“We are expecting a lot more of our graduates now than we did 10 or 15 years ago… (back then) they would expect to move into a middle management type of position or a leadership position in 10 or 15 yers. Now we are seeing people into those positinos in 3 to 5 years and that scares the hell out of me… The worst enemy to a you ngineer is himslelf”

17

Theme C

• Industry and universities collaboration underutilized

http://goo.gl/cVmFZI

“We  are  supp ortive  of  th

i

s  ki nd  of  partnership.  You’d  be  crazy  not  to  be.  I  do n ’t  know  how  you’d  be competitive otherwise. At the end of the day we are competing against everyone in industry for the  top  students” (Interview 1)

Theme B

• Role of the mining engineer has evolved

“We  are  expecting  a  lot  more  of  ou r  gr aduates  no w  th an  we  did  1

0  or  15  ye ar s  ago…  (back  th en)  they  would  expect  to  move  

into a middle management type of position or a leadership position in 10 or 15 years. Now we are seeing people into those positions  in  3

 to  5

 years  and  th at  scares  th e  hell  ou t  of

 me…

 The  wo rst  en em y  to  a  young  engineer  is  himself” (Interview 10)

http://goo.gl/m9vksI

Theme C

• Industry and universities collaboration underutilized

http://goo.gl/cVmFZI

“We  are  supp ortive  of  th

i

s  ki nd  of  partnership.  You’d  be  crazy  not  to  be.  I  do n ’t  know  how  you’d  be competitive otherwise. At the end of the day we are competing against everyone in industry for the  top  students” (Interview 1)

18

Theme E

• Co-operative education an invaluable tool

“It’s  been  a  focus  of  ou rs  to  recruit  through  th e  Co-op Program and use it as a  screening  tool  to  identify  the  cream  of  the  crop” (Interview 9)

http://goo.gl/QGTquQ

19

Theme F

• Professional development demand

http://goo.gl/V9sKx1

“Most  big  companies  won’t  have  an  issue  paying  for that type of training. Offering professional development is a huge part of retention” (Interview 4)

20

Recommendation 1

• Inter-University Partnership

“In  terms  of  strategic  initiatives  into  the  future, international university collaboration

is  a

 hu

g

e  th i ng  to  be  pu r suing” (Interview 12)

“There  is  no  real  communication  be tween  mining  s

chools  within  Canada”  (Interview 21)

http://goo.gl/a6neXP

21

Recommendation 2

• University & Industry Partnership

http://goo.gl/o2S6vp

“It's  the cyclical nature of the industry that is one of the biggest barriers in attracting, recruiting and retaining HQPs” (Interview 5)

“Schools  don’t  foster  relations  with  industry to the degree they could”     (Interview 8)

22

Recommendation 3

• Professional Development

“(Offering  p

r

ofessional  de vel opment  op p ortunities  to employees) would not only benefit us from

increased  kn owl edge…,  but  it  wo ul d  also  pr o bably  end up with improved  employee  re t ention”

(Interview 15)

http://goo.gl/Bn2RBc

23

Recommendation 4

• Mentoring

http://goo.gl/feq1qJ

“when  I graduated as I say, I had the opportunity to work with geoscience people and students, you know the whole

range. First year and second year students to people with 40 years of experience after their PhDs. But because of that gap  we  don’t  have  that  wh ol e  stage  mentoring  system”

(Interview 22)

“It’s  industry  that  h

a

s  to  step  up  an d  take  that  role  of  me n toring”  (Interview 14)

24

What is role of

EDUCATION?

MJ Scoble,

NCE Application

1999

Enrolment in Canadian Mining Engineering

BASc Programs 9 Mining Programs Across Canada

Keevil Program Growth

27

Keevil Program Growth

28

Growth is in the undergraduate and professional development programs

Mining Engineering

Mineral Processing

Environmental

Science

Public

Participation

Energy

Efficiency

Policy

& Ethics Health &

Safety

Biodiversity

Economic

Development

Community

Wellbeing

Closure &

Reclamation Management

&

Social Science

Technology

Competitiveness

First Nations

Engagement

EDUCATION &

RESEARCH

Environment

Mineral Processing

Mining

Department of Mining Engineering

Mine Health and Safety Laboratory

Professional MEng Program

Orientation (3 credits)

– Short & Online Courses

– Field Trips

– 3 credit hours

Coursework (21 credits)

– UBC Coursework

Co-op Internship

– 8 Month Paid Internship

Engineering Report (6 credits)

– Industry report

MEng Fieldtrip August 2012

MEng Fieldtrip Feb 2013

• Argentina

• Australia

• Brazil

• Canada

• Chile

• China

• Colombia

• DR Congo

• Ecuador

• Germany

• Greece

• Ivory Coast

• South Africa

• Tanzania

• Turkey

• Uganda

• UK

• USA

• Venezuela

• Zimbabwe

Where are they from?

¼ Mining Geotech ¼ Environment and Sustainability

¼ Mineral Processing ¼ Management and Finance

What are they studying?

Our Post-graduate Students

• Japan

• Korea

• Romania

• India

• Indonesia

• Mongolia

• Nigeria

• Panama

• Pakistan

• Peru

• Russia

• Senegal

UBC CERTIFICATE IN MINING STUDIES (CMS)

36

ONLINE

COURSES

SHORT

COURSE

PROJECT

CERTIFICATE IN MINING STUDIES

Requirement is a minimum of 160 hours of online courses and 9 days of short courses

INTERNET (160 hrs)

CLASSROOM (9 days)

STREAM 1 - UNDERGROUND

MINING

STREAM 2 - SURFACE

MINING

STREAM 3 - MINERAL

PROCESSING

STREAM 4 - MINING

ENVIRONMENT +

COMMUNITIES

STREAM 5 - MINE

MANAGEMENT +

ECONOMICS

STREAMS

A Canadian International Resources and

Development Institute

WWW.CIIEID.ORG

a coalition of

University of British Columbia

Simon Fraser University

École Polytechnique de Montréal

With financial support of the Government of Canada through Department of

Foreign Affairs, Trade and Development

Canadian International Institute for Extractive Industries and Development

The Keevil Institute's mission is to educate world-

class professionals and researchers, preparing

students for leading roles within the global mining

industry.

Norman B. Keevil Institute of Mining Engineering

A Mining Engineer: A Global Citizen

38

“Canada has a long and prosperous history in the extraction of natural

resources and is proud to share its knowledge, skills and experience with

developing countries. The Institute will help developing nations harness

their resources to generate sustainable economic growth, thereby

reducing poverty.”

– Prime Minister Harper

(source: Prime Minister

of Canada webpage)

Canada’s Vision

Canadian Mineral Industry Human Resources Council of Canada

• Labour Forecasts by Profession – 65 different categories

– Requirements

– Attrition

– Supply by present education programs

– Shortfall or Gap (shrinking, stable and growing)

• Demographic Studies