The AusIMM is concerned about the longer tem sustainability
of the minerals sector in
Australasia. Our contention is that the sustainability of
the sector is at risk if we do not:


encourage more exploration in Australasia by removing impediments
and
increasing
incentives;

fund our university and research centres appropriately to increase both
our
prospectivity, and our
processing efficiencies; and

manage our human resources better.

This
paper will focus on how we can better manage our human resources to assist in
ensuring sustainability of the sector in Australasia .

From
a production point of view:

Economic output = f
(Land, Labour, Capital, Environment) where Land refers to all of the natural
resources used in production. As well as land itself it includes water, forest,
fisheries, oil, gas and mineral deposits. Labour refers to the skills and
capabilities used by humans in the production process. Capital describes all of
the manufactured aids used in the process of production1. The
challenge for management is to ensure maximum efficiency and effectiveness of
labour in the production process whilst maintaining sustainable development.

The 1992 Rio Summit defined sustainable development as
maintaining and enhancing:

natural capital - defined as all natural resources, both
environmental and
those
of traditional economic value;
manufactured capital - made by human kind, including
produced goods,

infrastructure and built environment;
human capital - defined as the health, well being,
intellectual capabilities and

spiritual welfare of individuals; and
social capital - defined as social relations and
consultations within and

between societies, their norms and functionality2.

The
minerals sector in Australasia has successfully
focused on the technical aspects of each of these components of sustainable
development with primary attention applied to natural capital and efficient
utilisation of manufactured capital. The technical aspects of human capital and
social have also been addressed through an emphasis on occupational health and
safety and interaction with local communities however I suggest that, to date,
insufficient emphasis has been placed on labour (human capital) to maximise
economic output1.

It
has become increasingly common practice to identify land as natural
capital, labour as human capital and capital as physical capital.
That is labour has been treated as a commodity rather than an opportunity to
create a comparative advantage and this will be the greatest challenge for mine
management to show leadership over the next decade of the 21st Century.

This
paper will outline characteristics of the sector which are relevant to the
management and utilisation of labour, outline the outcomes of recent AusIMM
surveys, review the reasons for the current and future anticipated skills
shortages, some innovative responses to the challenges and finally, suggestions
on how mine management can show leadership.