Mining labor shortage spurs jobs sell

By Steve James

NEW YORK (Reuters) - Mining is a back-breaking, dirty and dangerous job, but a labor shortage is forcing mining companies to find creative ways to attract workers.

Stock options, university scholarships, intensive training programs and internships are all being dangled to lure prospective geologists, engineers and miners.

One uranium miner stresses the environmentally friendly nature of nuclear power, while a company that operates mines in Spain and Portugal, promotes their proximity to beaches.

The dearth of experienced mine workers caused by the sudden surge in metals prices after years of decline, was a recurring theme at the Reuters Global Mining and Steel Summit this week.

"Finding people is a big issue, an across-the-board need," said Dennis Wheeler, chief executive of Coeur d'Alene Mines Corp. (CDE.N: Quote, Profile, Research, Stock Buzz). The silver miner is working with the University of Alaska to train miners and has instituted intern programs.

"Retirement is a factor," Wheeler said of the current labor shortage.

During the last decades, as mining declined, the work force was not replaced. Now all of a sudden, Chinese economic growth has driven demand for copper, zinc, aluminum and other metals spurring competition for a smaller work pool.

Jerry Grandey, CEO of Canadian uranium miner Cameco Corp.

(CCO.TO: Quote, Profile, Research, Stock Buzz) cited labor among growing cost pressures.

"It's not just a question of how much you pay, it's a career path," Grandey said.

"So we portray it (nuclear power) as eco-friendly. There's no SOX (sulphur dioxide) or greenhouse gases ... It's just the mining part that disturbs the Earth."

Lundin Mining Corp.(LUN.TO: Quote, Profile, Research, Stock Buzz), which produces nickel, copper and zinc, is fortunate to have mines in less forbidding parts of the world than its rivals.

"We're putting more effort, as I think all people in the mining industry are, in recruiting," said Vice Chairman Colin Benner.

"It's very advantageous that we're working in Portugal and that our mine operations are only 45 minutes from the Algarve, which makes it pretty attractive for people.

"And the same could be said about Rio Narcea. You know, they are very close to Seville in Spain, which is a pretty attractive place to live, when you compare it to the high Andes ... or in the backwaters somewhere."  Continued...