How Chile's mining industry is working to unearth talent

Chile's mining industry will need more than 34,000 new professionals by 2032, growth of 36% compared with 2022, according to a study by local human resources organization Consejo de Competencias Minera.

The study also found an increasing number of female professionals in different areas of mining, especially in decision-making positions, and an increase in demand for electrical maintenance professionals and mobile equipment operators, due to projected growth of current operations and the portfolio of new projects.

See the study in Documents box in the top-right corner.

Faced with this panorama, José Barroilhet, partner and mining leader at Chicago-based consulting firm Spencer Stuart, thinks that governance needs to be solid and transparent, and leaders should be capable of forming high-performance teams.

BNamericas speaks with Barroilhet about the human resources gap in Chile and the need to broaden the industry's vision.

BNamericas: Is there a shortage of mining professionals in Chile?

Barroilhet: Yes, and in different areas of the industry. The most complex is in the development of projects that are cyclical and last for a certain period of time. There's a gigantic gap there and it's not easy to find people with experience.

There is also a shortage of management professionals, and although that has improved within mining companies, it is still difficult to generate succession and culture.

Companies like Codelco provide opportunities for young people, or BHP, which has sufficient scale to move people through different departments, but in most copper projects or operations it is difficult to find the necessary experience and manage it.

Language also influences, since it is not easy to access professionals in all areas who speak more than one language.

On the other hand, working in an underground mine involves wearing special clothing, a helmet, tubes and a flashlight; in total about 10kg throughout the day, and you can't see natural light. It is tough to work above 4000m, where there is little oxygen, you don't sleep well and are far from home and family.

BNamericas: How important is good leadership in mining?

Barroilhet: Due to the harshness of mining, credible leaders are required to exercise leadership that helps workers think differently and fulfill their purposes.

This approach prevents people from leaving. When leaders are bad or do not help people grow, there is no salary or office comfort or the best coffee that keeps staff. Good leaders or bosses are key to generating solid and permanent human capital in the mining business.

BNamericas: What challenges does the incorporation of technologies and greater automation of equipment in mining processes generate for human capital?

Barroilhet: There are ups and downs. By robotizing and automating, fewer people are needed to operate devices; with autonomous trucks, fewer drivers and with electric vehicles, fewer engine mechanics are needed.

On the other hand, these technologies require people to maintain the software and they require sensor experts. So, perhaps there are fewer drivers, but more technicians in areas of technological maintenance or electrical experts.

With remote operations centers, fewer workers are required in mining operations, but they allow the incorporation of people with physical disabilities, and at the same time, they increase safety and quality of life, since people can return home faster.

BNamericas: What are high-performance mining teams about?

Barroilhet: It is similar to sport, where competing implies complementing each other through a high-performance team where there is a leader who brings out the best in each person and motivates them to work together toward a common goal.

To do this, you need a clear strategy and an understanding of the role each person plays. It is also important to encourage feedback and continuous learning. This requires dynamism. It is no longer about remaining anchored to a rigid hierarchy and being locked into an office, but rather about agile, high-performance teams that go to the mines.

We still see many mining companies with large offices in incredible buildings and super structured work models. This does not facilitate agility in the way we work or make faster and more effective decisions. Instead, that can be achieved with high-performance teams that are on the ground. This is very important because the mining industry is cyclical, and both prices and investments are in motion.

So, that way you cannot be caught by a drop in income or increase in costs [as you are] when anchored to a giant structure, and where a large part of the investment is spent on maintaining a rigid hierarchy.

BNamericas: What do you recommend to mining companies in terms of governance?

Barroilhet: Governance must be transparent and ensure a sufficient flow of information to make informed decisions in all areas of mining, from the characterization of a deposit, the preparation of a project, obtaining permits, planning a mining operation to the closing phase.

Communication must easily flow from the board to the worker with the shovel in hand at the mine. Therefore, corporate governments must be diverse and have representatives who can be the voice of all people involved in the mining business – even for safety reasons and to prevent accidents, which are topics to be discussed among everyone equally in meetings.

BNamericas: To achieve that diversity, how is the trend of incorporating female professionals progressing in Chile?

Barroilhet: In general, it has been done well. In the last 10 years, it has been possible to reach 20% on average of women in the industry and the country is above the rest of Latin America.

At a global level, only Australia and Canada beat Chile. All visions are needed in mining, but it is not just about incorporating them, but rather giving them tools and helping them develop professionally, so that they remain in the sector.

BNamericas: Who are the most in-demand professionals?

Barroilhet: Everyone related to technologies, data management and the management of that infrastructure.

But biologists are also required for analyzing flora and fauna, anthropologists for working with communities, doctors for reviewing occupational health issues, lawyers supervising the sustainability of companies, architects, designers, meteorologists, etc. Mining is open to all professions, which is why leadership and a clear organization are essential for total transparency, especially because a mining plan is seen and developed by various professionals.

BNamericas: Under the national lithium strategy, new partners are being sought and production will increase, which will bring a greater need for human resources. How should this new labor demand be managed?  

Barroilhet: We have a great opportunity to train professionals and prepare them, but it should not be only for the production of lithium carbonate, but for an integrated industry where there is also space for refining and manufacturing batteries.

It is not worth creating an academy with a rigid infrastructure where only lithium carbonate experts are generated, so they then send the product abroad where it is refined and the finished product is sent back in the form of a cell phone with lithium content that was extracted here. Lithium batteries also risk becoming obsolete.

Therefore, we must also prepare talent to develop batteries or to do recycling. The market is dynamic, we cannot delay setting up factories, while the Koreans are looking to create a cheaper and more efficient sodium battery. Rather than focusing only on lithium, it would be more interesting to talk about a national energy strategy in Chile, in order to ensure that the country has all the necessary energy from sources such as the sun, lithium and copper.

We must think about how to ensure that this raw material allows generating more income, technologies and know-how to develop new large-scale battery and storage systems, as well as to maintain and replace them. This would ensure that when oil runs out, the country does not collapse or when prices rise, inflation does not blow up in our faces.

BNamericas: Various indigenous communities are living in Chilean salt flats, and they demand board representation at companies with lithium projects. How does this demand change the governance perspective on Chilean lithium?

Barroilhet: It is a difficult issue that is still being debated in Canada and Australia, where management models are sought that allow sharing the profits and benefits with communities.

A long-term vision is required, since both governments and company executives tend to serve for short periods, while communities remain for several years.

It is no longer just about building a soccer field for residents, but about providing solutions that transcend generations. Instead, we see companies with a business vision in the salt flats, while communities want guarantees of environmental sustainability.

It is essential to find a common purpose, with leaders who achieve that consensus. Chile's mining industry must be at the service of people and its reason for existing is that people, employees, clients and stakeholders are doing well.