Employment Trends in Mining

MINE STAFFING AAA INTERNATIONAL EMPLOYMENT TRENDS IN MINING 40% of the resource Canada extraction industry's 1 in 3 workforce is are expected to retire by 2022 at least 50 years old Mining labour constitutes less than 0.25% of the available U.S. workforce but consistently contributes of the U.S. 350,000 USA OVERALL MINING HEADCOUNT has been steady over time since 1983 economy Increased use of contractors FACTORS DRIVING WORKFORCE CHANGES Mines may close and new mines open Changes in the market (commodity prices, replacement, regulation) + Technological advances Economics of scale in production Improved managerial and worker skills or effort + Improved organization/ use of resources Reduces employment costs Increased Shifts risk Specialization Increased Secondment productivity SME Projected Mining Workforce Headcount CONTRACTORS made up 30% of the mining workforce in 2008 Headcount 400,000 Labour Projection 350,000 21% Loss 300,000 By 2029 more than half current U.S. workforce will be retired and replaced > 52% Loss 250,000 200,000 150,000 Remote locations Projectei Labour Loss 100,000 Skilled labour - training is required 50,000 Environment - sites are located outdoors, or underground, subject to dramatic weather and work conditions Safety - working conditions require vigilant attention to personal safety Generational - Increased focus on work-life balance of incoming workforce Boom and bust- certain commodities are subject to boom and bust cycles Public perception - significant disconnect between general public and the goods and services they FACTORS DISCOURAGING ENTRY OR RESULT IN DEFECTION FROM THE MINING INDUSTRY consume Teck 10,500 Barrick SOME 26,140 First Quantum Kinross 8,663 OF THE 9,000 MINING Sherritt COMPANIES Goldcorp 8,231 IAMGOLD THAT 8,573 5,892 EMPLOY Agnico Eagle 5,723 Eldorado Gold 7,024 MORE THAN 5,000 PotashCorp of Saskatchewan PEOPLE Yamana Gold 5,085 5,779 WORLDWIDE WOMEN account for only 16% of the mining LABOUR FORCE workforce in Canada 48% MINING compared to 48% of the 16% overall labour force participation OTHER INDUSTRIES rate 16% MINING 7% FORESTRY 1,200 14% FISHING/HUNTING 30% OIL & GAS 24% UTILITIES 180 ND MORE THAN 2,500 THE EMPLOYMENT TALENT GAP HOWEVER ABORIGINALS MAKE UP DNLY 5% OF THEMINING LABOUR FORCE H MAINLYENTRY LEVEL POSITIONS MIHR CANADA PREDICTED BASELINE SCENARIO 2013 -2023 CUMULATIVE HIRING AVAILABLE TALENT: REQUIREMENTS MINING'S SHARE - 7,875 TRADES & PRODUCTION 47,055 39,180 PROFESSIONAL AND PHYSICAL 8,100 - 900 7,200 SCIENCES HUMAN RESOURCES AND 3,110 - 480 2,630 FINANCIAL 4,665 - 1,195 3,470 SUPPORT WORKERS TECHNICAL 7,250 - 2,760 4,490 SUPERVISORS, COORDINATORS AND FOREMAN 9,230 - 2,810 6,420 Sources: MIHR Canadlan Mining Industry Employment, Hiring Requirements and Avallable Talent 10-year Outlook 2013 SME Emerging Workforce Trends In the U.S. Mining Industry 2012 Deloltte Tracking the Trends 2014 Mining Association of Canada: Facts and Figures 2013 2905-77 KING STREET WEST wwW.MINESTAFFING.COM TORONTO DOMINION CENTRE @MineStaffing TORONTO, ON M5KIH1 MINE STAFFING +(416)849-2243 INTERNATIONAL +1(416)849-2238