MCD2040 Managing People & Organisations.





Status Hurdle Weighting Word/Time Limit Due date
MCP report part 1 – Individual
MCP report part 2 – Individual
MCP presentation – Group

N/A
N/A
N/A

15%
25%
15%
900 words
1500 words
Time limit
Week 7 Friday 11.55 pm
Week 10 Friday 11.55 pm
Week 12

The Australian industry body, the Association of Mining and Exploration Companies (AMEC) have identified
several problems in the Australian mining industry. AMEC has realised the negative impact some big names
involved in the mining sector in Australia have been creating and has decided to make changes to the way
they govern the industry in a move to protect Australian resources and stakeholders. They have employed
YOU as an expert management consultant to review the current problems in order to implement appropriate
measures in a bid to improve the Australian mining sector and maintain sustainability.

Australia’s mining industry is a central part of Australia’s economy, with the country being one of the world’s
largest exporters of coal, iron ore, bauxite, alumina, and many other mineral resources. Recent statistics and
reports have confirmed the importance of the mining industry to the Australian economy. The Australian
economy has been negatively affected by the COVID-19 pandemic, however the mining industry has been a
source of strength for the nation.

Despite the overall economy contracting, mining industry GDP
increased 4.9 per cent in 2019-20 and totalled $202 billion. This
also made mining Australia’s largest industry with a 10.4 per
cent share of the economy. 2020–21 export earnings are
estimated at $310 billion, up almost 7% on the record set in
2019–20. Earnings are expected to rise further to $334 billion in
2021–22, before declining to $304 billion in 2022–23. The world
economic recovery has been accompanied by a rise in prices
for many goods and services.

The Australian industry is strongly export-oriented, with minimal
processing onshore. There are 240,000 people directly
employed by the resources sector and a total of 1.1 million
direct and indirect jobs in the mining and mining equipment,
technology and services sectors

Australia is the world’s largest producer of lithium and a global top five producer of gold, iron ore, lead, zinc,
and nickel. Australia is the fourth largest mining country in the world (after China, the United States and
Russia). With about 350 operational mines, Australia produces 19 minerals. The country currently leads the
global mining sector, with nearly 40% of the market value share.
Australia’s mining market is diverse, and accordingly, so are its mining companies. BHP and Rio Tinto, are
two of the biggest names in mining worldwide. In Australia, these companies lead the metals and mining
market.
BHP sits at the very top of the biggest mining companies in the world. Specialising in the extraction and
processing of minerals, as well as oil and gas, they employ over 72,000 workers - mainly in Australia and the
Americas. BHP is based in Melbourne, although their products are for sale worldwide. BHP Group is among
MCP assignment case study Trimester 1, 2022
-
Mining in Australia.

the world’s top producers of major commodities such as copper, iron ore, metallurgical coal, oil, energy coal
and gas.
Rio Tinto is the second biggest mining company in Australia and the world. Like the BHP Group, they’re
based in Melbourne, with an impressive market cap of 146.75 billion. Rio Tinto currently employs over 47,500
people in 35 countries. Rio Tinto specialise in producing a range of materials.
Rio Tinto are responsible for a lot of the aluminium found in smartphones and cars, titanium found in
household products, iron ore for steel, copper for wind turbines and more.

With the high cost of labour in Australia, there is
strong interest in automation technology such as
driverless vehicles (trucks and trains), drills, and
excavation equipment. This interest is strongest
in the iron ore sector, where the large scale of
mine operations justifies the investment in
automation. The Australian mining industry is, in
many areas, an early adopter of technologies,
such as mobile and wearable technologies. There
are also moves to convert particular types of
heavy moving equipment, e.g. underground
loaders, to non-diesel power, for both
environmental and occupational health and safety

A new report commissioned by the Minerals Council of Australia (MCA) has found that over the next five
years, more than 77% of jobs in the country’s mining sector will be altered by technological innovations,
increasing productivity by up to 23%. However, new technologies such as geo-spatial data, 3D mapping and
hyperspectral core imaging allow the material drilled to be continuously monitored, while tools such as
autonomous drills allow exploration methods to be adapted in response to information gathered. Companies
already employing such technology include Rio Tinto and BHP, the former with its 3D mapping technology
and the latter with its downhole assay.

Drones, advanced analytics, digital twins and an Integrated Operating Centre (IOC) provide a means to better
manage feed presentation, optimise plant operations and shift maintenance strategies from reactive to
predictive. Earnest & Young, has estimated that this section of the industry could see a rise of 7%-15% in
asset productivity improvement, a 10%-15% reduction in processing cost and 8%-20% overall productivity
improvement.

Technology such as broken rail detection and digital
twins allow for maintenance to become predictive
rather than reactive, catching problems before they
have significant effects further down the line –
minimising interruptions and streamlining shipments.
Autonomous vehicles allow operators to work offsite
and thus remove the need for operator-induced
stoppages. Rio Tinto began using autonomous trains
for their Pilbara operations in 2017 and have reported
improvements in safety and a reduction of bottlenecks
and cycle time. E&Y predicts that introducing such
vehicles could lead to an improvement in asset
operating time of up to 20%, and an overall productivity
improvement of between 3%-15%. Australia BHP uses
Artificial Intelligence (AI) to schedule track movements and the dispatch of trains carrying iron ore between
their mines and Port Hedland, something that has thus far helped BHP to manage stockpiles and ensure
deliveries are correct and on time.
The drilling machinery such as the Azimuth Aligner significantly improves drill-hole accuracy over traditional
alignment techniques, reduces rig set-up times (by up to 90%) and effectively automates the rig-alignment
process – reducing the associated on-site personnel costs (geologists and surveyors). The result is a
substantial improvement in both operational productivity and a significant reduction in cost. Production
Optimiser systems used by mining companies combines advanced hardware and software that substantially
improves production drilling efficiency and productivity in underground mines.
The threat or opportunity of resource development often prompts a movement for the recognition of
indigenous ownership and control of land. However, a number of serious implications arise from the late
recognition of indigenous rights in Australia law, not just as regards loss of land, but in the culture of land
administration and resource development that seeks to reduce the rights of indigenous peoples and secure
access for development. The relationship between indigenous peoples and mining is defined by struggles
over access to land.

The Mirrar, represented by the Gundjehmi Aboriginal
Corporation, are the traditional owners and custodians of the
area of Australia that now contains the Ranger and Jabiluka
mineral leases. Uranium was discovered in the area in the
1950s. The Jabiluka and Ranger mineral leases cut across
country containing the dreaming tracks of the Mirrar. Some
sacred sites within the mineral leases close to the proposed
uranium mine, have not been given "protection" by the mining
company or by the government despite having been publicly
identified by the traditional owners and custodians.

The physical threat to such sites has immense cultural,
spiritual, and legal significance. Land has a fundamental
social and economic importance to indigenous societies, one that can be disrupted and substantially
transformed by mining operations. According to the Mirrar, “do not argue that mining alone is impacting on
living tradition”-- the Mirrar argue that mining and its associated social, economic and political impacts are
the single greatest impact, and that an additional mine will push their culture past the point of cultural
exhaustion to genocidal decay.

The Mirrar maintain vigilance over Jabiluka's sister mine, Ranger, monitoring
the negative social impact the mine is having on the Aboriginal communities in
the vicinity. Mirrar fears about the safety of uranium mines are well-founded.
Around May, 2000, a leak from the Ranger Mine contaminated water with
manganese. Gundjehmi Aboriginal Corporation Executive Officer Jacqui
Katona (co-recipient of the Goldman Prize) noted that the leak highlights the
inadequate monitoring of the mine and evidences the grave threat that mining
operations pose to the land.

Mining giant Rio Tinto decided to destroy two 46,000-year-old Aboriginal rock shelters in order to access
$135 million worth of iron ore that would not have been available under alternative mining plans avoiding the
culturally significant site. The nation's second-largest miner has faced a storm of condemnation after legally
destroying the ancient site in Western Australia's Juukan Gorge, against the will of the land's traditional
owners. Rio Tinto spokesperson said the land's traditional owners were never told there were other options
that could have protected the Juukan Gorge site.

The Juukan Gorge disaster has highlighted the power
imbalance between the nation's mining giants and
Indigenous communities and raises questions being
explored by the inquiry about a need for greater legal
protections for traditional owners to safeguard significant
sites on their ancestral land. In its submission to the
inquiry, Rio acknowledged it could have made better
decisions and been better partners with the Indigenous
community in the years leading up to the blast in May.
Rio Tinto expressed it had missed multiple opportunities
to better communicate with the traditional landowners or
pause to rethink its mine expansion plan.

The mining industry’s super-profits have come at a high cost to some parts of the community, as evidenced
by workplace deaths in mines, to say nothing of the trashing of Aboriginal land rights and environmental
destruction. A twenty-five-year-old Indigenous man David Armstrong was killed on 30 September at
Fortescue Metal Group’s Solomon Hub iron ore mine in the Pilbara region of Western Australia. Part of the
drill and blast team, he died after the ground collapsed beneath him. Workers are also afraid of losing their
jobs for raising safety concerns. Added to this is the issue of fly-in fly-out (FIFO) worker suicides. FIFO stands
for Fly In Fly Out and DIDO stands for Drive in Drive Out. This means that workers are brought to site for the
length of their work roster where they are provided with accommodation, recreation facilities, meals, etc.
FIFO jobs are those which involve employees being flown to their workplace for the duration of a roster before
being flown back to a preferred location. Companies are not required to investigate when there is suicide in
their mining camp, let alone if one of the workers or contractors takes their own life during an off swing (the
week off after working two or three weeks consecutively).

There’s a strong culture in Australian mining of female
trailblazers who have forged a path for those established
leaders of mining’s current generation with a commanding
presence. However, there has been increasing cases of
sexual harassment. In particular, women has acknowledged
it to be still relevant to choose between family and a career.
This has created many challenges for women in FIFO roles.

A mining giant, Fortescue Metals Group has rejected calls
for a register of sexual offenders in Western Australia’s
mining industry. About 30 per cent of respondents to a recent online survey of 2000 staff said they had
witnessed sexual harassment or inappropriate behaviour at FMG sites.

FMG’s director of people Linda O’Farrell said the priority should be to streamline reporting for victims.
However, FMG also opposed to the creation of an independent body to oversee the management of
harassment claims. FMG’s stance is at odds with fellow Pilbara giants Rio Tinto and BHP. Facing a WA
parliamentary inquiry, chief executive Elizabeth Gaines on Wednesday said FMG had investigated 11 sexual
harassment matters in 2020 and a further 31 so far this year.

“Working directly with people who have made complaints to us, it is very daunting to them when we need to
explain they may be contacted by somebody they don’t know from a department that they don’t have
involvement with,” CEO Gaines said. Rio Tinto’s iron ore chief Simon Trott said he was sickened by the
evidence of widespread sexual misconduct within the industry. Since the start of 2020, Rio has identified one
substantiated case of sexual assault and 29 sexual harassment cases. About 15 workers have been
dismissed, while others remain under investigation. BHP last week said it had sacked at least 48 workers for
sexual misconduct over the past two years. The three mining companies combined with the Chamber of
Minerals and Energy Western Australia pledge support for the parliamentary inquiry into sexual misconduct
against women in the FIFO mining industry and committed to work cohesively to eradicate these behaviours
from the sector. A pilot program, to be developed in 2022, will be established for TAFE students through
South Metropolitan TAFE. This will form part of core learning requirements for students who may be planning
to join Rio Tinto, BHP or Fortescue.

Mining operations, however expansive and complex, are temporary. Eventually, once the most accessible
and valuable materials have been extracted, the mine is closed, and the site must be restored back to its
original state. This includes covering up mine entrances, replanting grass and trees, and testing surrounding
water, soil, and air for contaminants. The chief executive of a small shire in Western Australia says cleared
land, open pits, and hazardous materials left behind at abandoned mines are a major concern and has called
on the state government to prioritise rehabilitation.

Peter Fitchat from Dundas Shire explains, "The big ones that are a concern are still exposed, that cause dust,
there's asbestos on these sites, there's contamination, there's arsenic and old processors,". There were more
than 190,000 abandoned mining features across WA's outback, including open pits, dumps, and mining
shafts.

Adam Cross from Curtin University's Centre for Mine Site Restoration said abandoned mines were a hazard
and "Mining creates materials that are among the most challenging for plants and animals to recolonise
naturally,". He further added "Landforms like waste rock dumps and tailings can erode over time and their
dust can contain particles and heavy metals and other compounds that can be harmful for plants and animals,
even for us.

The East Kimberley's only operational iron ore project has started loading its last shipment, after a
management decision to shut the mine and lay off hundreds of workers in Western Australia's far north. It is
estimated the closure of Ridges will see about 200 jobs lost and as much as $3.5 million a month in lost
revenue for local businesses across the region. The closure was particularly devastating in light of all the
work done to build Indigenous employment across the mine, haulage, and ship loading operations.
Careers in the mining sector have a lot going for them: high salaries, numerous opportunities for
professional development at home and abroad, and job stability from a prosperous industry. A The
disadvantage that often comes up is the location of Australia’s major mines, with many large-scale
operations based in remote areas of Western Australia, South Australia, New South Wales, Queensland,
and Victoria. Mining organisations have developed a range of schemes designed to help workers balance
their on-site obligations with personal responsibilities.

The FIFO lifestyle is set by a roster that usually involves two weeks of work followed by one week of rest, or
alternating ‘on’ and ‘off’ months (this is particularly common for more remote sites with higher transport
costs). While ‘on’, most FIFO employees work six or seven day weeks, with shifts often lasting twelve
hours.

The benefits of the FIFO life include generous compensation (mining companies provide travel and living
allowances to FIFO workers), extended breaks, and the ability to live anywhere. Of course, you’ll need to
be comfortable with travel, and also willing to spend extended periods of time in isolated areas. (See
appendix 1)

A miner has revealed he started making $190,000 a year at the age of 24, and hasn't earned less than six
figures in almost a decade. Mr Blackburn, who is now in his early 30s, spoke about his exorbitant pay
increases during his eight years working in mines around Australia.

'When I was 23 I was on $160,000 a year,' he said. 'Twenty-four and 25 went up to about $190,000 a year.
When I went over to WA [Western Australia] I think I did $190,000 again, and then when I went to
maintenance ... it dropped down again to about $130,000 a year.'

Mr Blackburn started his career as an assistant with no formal training or qualifications. He would clean,
cook barbecues, put up fencing - 'pretty much whatever they wanted', he said. After paying about $30,000
for 'tickets' - or qualifications - during his first year, Mr Blackburn became a dump truck driver and
excavator. He then got jobs fitting pipes, scaffolding, rigging machinery and operating cranes - with a pay
increase each time.

Mining organisations are eager to attract skilled employees, and provide workers with high-quality
accommodation, ranging from private, standalone domiciles to upscale hotel-style lodgings. Often, mining
organisations will outsource the construction and maintenance of accommodation facilities to specialist
providers such as Fleetwood or Stayover. Alternatively, they may fund the development of their own mining
camps. Either way, employees generally have access to laundry and facilities, with cleaning services often
provided.

The hard truth is that it’s hard to maintain a social life when you’re also working 84 hours a week. However,
miners with free time are not without opportunities to socialise. At a remote mining camp—that is, a facility
that provides accommodation solely to mining employees—most socialisation occurs at recreational
facilities such as a swimming pool, gym, BBQ area, pool hall, or basketball court. Some larger mines go
even further, offering soccer pitches, golf driving ranges, and football fields.

Miners who live in or near mining towns will benefit from a more robust community that includes many
people who aren’t employed at the mines themselves. Such towns, like any other, may offer childcare,
education, job opportunities for non-mining workers, retail, places to eat, and recreational facilities like
cinemas and sports halls.

Wherever you end up working, it’s important to remember that strict alcohol and drug testing protocols
invariably apply to all employees, with random tests during morning briefings not uncommon.

Mines have a clear vested interest in ensuring the fitness of their employees. As such, most offer 24-hour
medical services that provide general health support, emergency medical attention, and, increasingly, a
range of psychological services.

Given the demands of the mining lifestyle, and the fact that one in five miners has experienced mental
illness, it’s important to familiarise yourself with available support services, including those provided by your
employer as well as national phone services such as Lifeline and Mensline.


End of MCP case study.




Appendix 1.
Job position Job description Salary
Mechanical Engineer. A mechanical engineer plans, designs, and
manages equipment necessary in the acquiring,
refining, and transporting of mineral ores.
up to
$250,000
Civil Engineer. civil engineers ensure that structures are suitably
built and properly maintained, while being able to
adapt to a demanding environment like a mining
site
up to
$250,000
Electrical Engineer Electrical engineers help develop, implement,
install, and maintain these systems to keep all
work areas safe and running smoothly.
up to
$200,000
Underground and Open-
Cut (Above-Ground)
Miners.
Underground and open-cut miners don’t just
excavate, load, and transport coal and other
valuable ores. They are also required to be well-
versed in safety procedures and first-aid.

up to
$200,000
Exploration Geologist Exploration geologists map and survey the
topography of a potential mining site to determine
where valuable minerals are located. With their
help, mining companies know where to dig next
and won’t waste money exploring low-yield sites.
up to
$200,000
Heavy Machinery
Operators.
heavy machinery operators drive or operate
machines like trucks, drillers, and the like. For
jobs like drillers, which require the use of heavy
equipment, physical fitness is a must.

up to
$200,000








Instructions for students,
1. Students can look at a theory area and find content to apply that theory to, regardless of which
company the example comes from, or they can focus on one of the major companies and its
relevant examples.

2. Problem statements do not necessarily focus on any company but could be a more general
statement of problem, based on the evidence of the MCP Case Study. But if a student is focusing
on one major company only then they can become more specific. It would be much easier for
students to opt for the first option.
For example;
➢ Some Australian mining companies are not sufficiently aware of significant factors
within their _________________________________, leading to
_________________________________________________________.

3. Students are not required to carry out further research but must use the given information only in this
case study when attempting their MCP reports.


For further details and instructions, find the resources given under the MCP folder.








You do not need to read or reference these links- focus on the information provided in the case
study above.

This case study uses information sourced from these links:
https://7news.com.au/news/wa/fortescue-cold-on-mines-sex-abuse-register-c-4347190
https://stockhead.com.au/resources/opportunities-abound-but-obstacles-persist-for-women-in-mining/
https://safetowork.com.au/major-miners-partner-to-educate-industry-on-social-issues/
https://www.abc.net.au/news/rural/2021-09-29/rural-ridges-mine-closure-leaves-devastating-impact-on-
community/100500354
https://www.culturalsurvival.org/publications/cultural-survival-quarterly/old-habits-die-hard-indigenous-land-
rights-and-mining
https://www.news.com.au/finance/business/mining/mining-sector-considers-industrywide-sex-predator-
register-as-inquiry-hears-fired-offenders-reemerge-the-next-day/news-
story/4e633641db5468b02b8e4dfcba34f298
https://www.smh.com.au/business/companies/rio-tinto-blasted-ancient-aboriginal-caves-for-135m-of-iron-
ore-20200807-p55jia.html
https://www.abc.net.au/news/2021-10-21/wa-community-leader-calls-on-wa-government-to-fix-abandoned-
mine/100428052
https://www.australianmining.com.au/news/mining-industry-pays-highest-wages/
https://au.talent.com/salary?job=fifo#:~:text=Find%20out%20what%20the%20average%20Fifo%20salary%
20is&text=The%20average%20fifo%20salary%20in,up%20to%20%24132%2C405%20per%20year.
https://www.premiummechanical.com.au/news/8-high-paying-fifo-mining-jobs/
https://www.dailymail.co.uk/news/article-9208205/Australian-FIFO-miner-reveals-huge-six-figure-salary-
earns.html
https://www.trade.gov/country-commercial-guides/australia-
mining#:~:text=2021%2D08%2D16-,Overview,cornerstone%20of%20the%20Australian%20economy.&text
=Australia%20is%20the%20world's%20largest,largest%20black%20coal%20resources%2C%20respectivel
y.
https://blog.iseekplant.com.au/blog/6-biggest-mining-companies-australia
https://www.nsenergybusiness.com/features/top-five-mining-companies-of-australia-profiled/
https://www.statista.com/topics/4671/mining-industry-in-australia/#dossierKeyfigures
https://www.mining-technology.com/features/how-technology-is-changing-australian-mining-jobs/
https://gradaustralia.com.au/on-the-job/a-graduates-guide-to-fifo-life-in-the-mining-sector
https://www.minerals.org.au/frequently-asked-questions-fifo-dido