Stellar by the numbers:

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Stellar by the numbers:

Stellar industry recruitment specialists

Unique clients Stellar placed with in 2012/13

Placements to date

Candidates on Stellar's database

40

114

100,000

4,845

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Contents

Synopsis ... 5

Methodology ... 5

Predictions ... 5

Risks for Companies ... 6

Positions Most in Demand ... 7

Stellar Recruitment’s Services ... 7

Strategies to Avoid Employee Turnover ... 8

Contract Recruitment versus Permanent Recruitment ... 9

Quotes from Industry Professionals ... 9

Section One - Mining Operations ... 12

Section Two – Trades and Mobile Plant Operators ... 31

Section Three – Oil and Gas ... 35

Section Four – Infrastructure Construction ... 44

Section Five – Commercial Building ... 54

Section Six – Corporate and Commercial ... 59

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From our Managing Director

Stellar Recruitment’s exposure to both clients and candidates over the past twelve months has provided the company with some of the following insights. As an introduction to this year’s salary guide, Stellar has seen a wide spectrum of client sentiment and market confidence. This has been mirrored by Stellar’s scope of work ranging from mine start-ups to mine outplacement services following mine closures. Thanks for taking the time to read this information, Stellar trusts that this data will provide value to you or your organisation.

Following a sustained period of growth, the mining sector has been in a volatile state with commodity prices declining. Miners have responded to the downturn by cutting jobs, scaling back expansion plans and projects, and reducing costs. Given the lack of competitiveness on a global stage, Australian clients are now faced with increased pressure to reduce costs and improve productivity. Conversely Africa, South America, PNG, and Asia have continued to present great opportunities for the business with the cost to develop and operate assets in these regions being significantly lower than the other western countries coupled with much less regulatory pressure. Falling commodity prices has meant that there is difficulty gaining access to capital and as such explorers haven’t been able to raise funds to develop their assets. Marginal projects and operations have been forced to downscale or go into care and maintenance, which has in some instances created redundancies. A dominant factor for Australian companies has been the cost of labour that has been a result from salaries and wages having been negotiated in a much more buoyant market place. Despite the comments above, Stellar is still hearing from clients who don't have the level of competence they would like across leadership, production optimisation, and achieving targeted plant availability.

The energy, oil and gas sectors has brought growth over the past 12 months and a growing demand for key skill sets. This has been driven by robust energy demand from Asia especially and the rest of the world. Stellar has witnessed current and forecasted shortfalls of experienced personnel for both onshore and offshore projects. These shortages have been across the engineering and construction phase through operations. That said, Stellar has seen some softening in demand; particularly within the Australian engineering firms. The greatest challenge moving forward for countries such as Australia, will be the management of the escalating costs to develop and operate assets relative to the other countries with a much lower cost base. With forecasted peak capital expenditure in Australia looming in 2014, future projects may come under scrutiny based on the aforementioned drivers, which will correlate to reduced job growth within the sector.

Stellar’s infrastructure division has been focussing on activity in Australian, African, American, and Canadian mining and oil and gas projects. Stellar has seen a clear slowdown recently in mining based infrastructure projects. This downtown has been in line with falling commodity prices, which has meant there has been a migration wave of relevant skill sets towards oil and gas based infrastructure projects. The Australian industry has specifically experienced this due to the lack of spend from all forms of government across all the regions that Stellar covers; the company has seen a big movement of personnel to remote gas projects and an increased willingness for candidates to work away on fly in fly out (FIFO) rosters. Stellar’s New Zealand offices have shown strong demand for both building construction and civil related blue and white collar staff that has largely been driven by the Christchurch earthquake rebuild. This shortfall of key personnel will only become more acute in the next year and beyond with upward inflation with employment costs and shortfalls with accommodation in Christchurch becoming variables that will impact the labour market moving

forward.

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Synopsis

Stellar Recruitment’s 2013-2014 Salary Guide aims to inform clients and candidates about remuneration trends and pivotal activities within the resources and infrastructure industries. Stellar is an industry specialist in these sectors and this guide has been developed from the knowledge that the company has gained through servicing clients and candidates during the 2012-2013 financial year.

Methodology

The predictions and salary information has been compiled by Division Managers from data collected since 1st July, 2012.

The salary ranges in this guide relate to a taxable income that would typically include base salary and superannuation. These ranges are provided in the hundreds of thousands (‘000s), except where an hourly rate is clearly shown. These do not reflect any additional benefits within packages such as share options, bonuses or any other arrangement between the employer and employee. Those roles that are not applicable are shown as N/A and those where Stellar has not had enough data to comment are marked with a ‘–’.

Please note that these figures are a guide only and in some circumstances much higher figures may be offered to a candidate where their specific experience is highly sought after e.g. specific technical expertise, strong knowledge, or experience. To secure these ‘top’ candidates, it is important to pay attention to the potential employee’s drivers and motivators whether it is financial, work hours, roster or point of hire as this will allow more chance of an alignment of expectations.

Predictions

Resources and infrastructure clients have a heightened optimism surrounding business prospects in the coming financial year. This last year has been a challenging time within the sectors that Stellar services; it has been a year of company reflection with companies undergoing cost cutting and re-structuring activities. Companies have taken this opportunity to implement improvements where possible, which will ensure future growth. This will allow the risk-return equation to attract investment, as well as new technology development delivering efficiencies on current operations.

Throughout this cost readjustment phase there has still been a continuation of experimenting with remuneration packages to secure specific candidates – especially for technical roles. To combat this many clients have committed to international recruitment campaigns to source highly skilled candidates.

Throughout this salary guide, Stellar Recruitment’s industry specialists will comment on the industry and remuneration package fluctuations. Both the resources and infrastructure industries continue to face an ongoing skill shortages and one of the best recommendations that Stellar can offer its clients is to constantly undertake market research and analysis to identify innovative approaches to attract and retain the best staff.

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Risks for Companies

Mining, oil and gas, and construction companies are attempting to mitigate as many risks as possible. The major challenges and risks that Stellar Recruitment foresees range from government regulations, increasing costs, commodity pricing, candidate sourcing, and the cost of providers.

Government Regulations

Even though Australia, New Zealand, the United States, and Canada do not have the same sovereign risk as other resources rich countries, each still have government involvement that heavily impact on the performance and investor enthusiasm in the market. Australia recently experienced the Mining Resources Rent Tax (MRRT) and the Carbon Tax; in comparison, the United States have re-elected their president, this leads to a government that can concentrate on permitting projects and licensing procedures. Whether governments are building up, winding down from an election or in the middle of their term, their actions have a flow on effect for their industries.

Increasing Costs

Increasing costs due to labour, energy, health and safety requirements, delays, taxes, and increased compliance is a major concern for all industry stakeholders. The International Mining Report reported that 55% of all people involved within the sector believe that labour costs will continue to increase. This means that companies will continue to limit the overall costs to develop and implement strategies for their business. These pressures and challenges are not new and will not be going away anytime soon for the mining, oil and gas, and construction industries. In the future, companies will continue to become strategically lean to ensure that they maintain their competitive edge and to ensure that they have an economically viable future.

Candidate Sourcing

Stellar Recruitment has recognised that there is still a skills shortage within technical disciplines. Over the past year Stellar Recruitment has placed candidates with over 114 clients. The company has further developed its database to over 100,000 candidates and worked on international strategic campaigns with clients. Stellar will continue to work successfully with clients to obtain candidates with the required skill sets and ensure that successfully placed candidates become an integral and long term part of their business.

Cost of Providers

Mining, oil and gas, and construction companies are reliant on service providers and the costs associated with receiving goods/services. Over the last year, Stellar Recruitment has recognised that many companies have engaged in cost-cutting and streamlining processes. This often involves procurement teams, who increased the release of Preferred Supplier Agreements (PSAs) and tender opportunities. Stellar encourages the opportunity to work closely with clients to enable them to reach their overall corporate goals, however, it advises companies to judge these on the entire value add. This should not only include the cost of a service or product but also the quality, timeframes, account management systems and the feedback process. Stellar is committed to only providing high calibre and relevant candidates for each role. The company’s market awareness also allows it to consult on candidate availability, quality, and timeframes.

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Commodity Pricing

The resources and infrastructure industries biggest threats and opportunities lie within the global pricing of commodities. Unfortunately this challenge cannot be controlled by companies, they must instead control all internal factors that contribute to the financial success of the business and gain an understanding of their market demands and build relationships with all stakeholders involved.

Positions Most in Demand

There continues to be a lack of supply in experienced and skilled candidates, which has presented employers with their biggest human resource challenge yet. Companies need to promote more innovative attraction and retention strategies as the demand for skilled candidates further exceeds the supply.

There is no shortage of people wanting to secure a career within the resources and infrastructure industries; however, the most difficult positions to fill are those that require highly skilled candidates. Highly skilled candidates are required across all levels from trades to senior management.

The areas with the most notable shortages are across the following job categories:

 Mining Engineering  Petroleum Engineering  Civil Engineering  Mechanical Engineering  Electrical Engineering  Geology

 Trades- electrical and mechanical

 Project, Construction and Mine Managers

Stellar Recruitment’s Services

Stellar’s aim is to become an extension of its client’s internal human resources capabilities by providing recruitment services to complement their processes. The company can offer complete recruitment solutions including:

 Executive Recruitment

 Permanent Recruitment

 Contract Recruitment / Temporary Recruitment

 Labour Hire

 Payroll Services

 Outplacement Services

 Restructuring Services

Key Solutions for Clients during 2013

Outplacement Services

During the 2012-2013 financial year, Stellar Recruitment worked in partnership with clients to improve the professional employment prospects of employees that have been made

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redundant due to cost cutting. The company provides outplacement consultation with affected employees following redundancy announcement. This can include consultation and coaching.

Restructuring Services

Stellar Recruitment are able to assist clients during company restructures. This involves the recruitment and selection of some of the existing workforce, as well as source and selection of external candidates to fill gaps in the new teams that cannot be filled internally. The company works closely with the client’s human resources and management teams to effectively manage these types of assignments whilst maintaining a strong presence and contact with the employees within the group to ensure a smooth transition.

Strategies to Avoid Employee Turnover

The best way to avoid employee turnover is to understand your employee’s main drivers and motivators from the beginning. The ability of the organisation to be flexible will assist developing strategies to attract and retain the best staff. Stellar Recruitment believes organisations that provide structured and clear career progression strategies, offer genuine support to their employees to reach their career goals and develop diversity within the role, remain the best positioned to retain their staff.

Methods and Strategies to Avoid Employee Turnover

Pay above market rates for:

 High performers in management and supervisory level positions

- They are likely to attract strong candidates to the organisation due to their leadership abilities

- They are likely to set up the project or team right from the start, create a positive culture and drive performance. This will contribute to reducing staff turnover

 Unattractive or remote work locations

 People with specific technical knowledge or experience

Creative Remuneration Packages:

 Those companies that are willing to pay at the top end of the market (with creative remuneration packages) will continue to attract and retain the best staff available. Please see “Remuneration Packages” below for more detail

Training:

 Offer clear career progression plans for existing staff, especially high calibre staff with potential to move up in the organisation

 Training and development strategies to allow transfer of skills and/ or professional development

Rosters:

 Flexible rosters that promote an improved lifestyle (lifestyle rosters) are in higher demand. These rosters help significantly with attraction and retention of highly skilled and experienced staff

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Attracting and hiring overseas (highly skilled) employees through:

 Employer sponsored visa programs

 Attractive international relocation packages

 Support not only for the employee but the spouse and dependants

NOTE: An employer should consider logistical timeframes for visa processing when resource planning.

Contract Recruitment versus Permanent Recruitment

Contractor or labour hire arrangements provide employers the opportunity to avoid many of the financial risks and responsibilities associated with employing permanent staff. This risk minimisation allows companies to establish a more predictable cost structure.

Stellar Recruitment’s contract solution offers:

 Fully screened, interviewed and referenced candidates matched to your business requirements

 Onsite consultant representation for ramp up periods (as required)  A comprehensive safety management system (refer to WHS section)  Advanced payroll and administration systems including online time sheeting  Provision of allowances or payment of expenses e.g. work vehicle

 Comprehensive aftercare and performance review participation

 Full site mobilisation - arranging medicals, accommodation and/ or transport

Overall temporary staff may allow a company to improve management of cash flow and improve forecasting in expenses.

Quotes from Industry Professionals

“Firstly, it’s still pretty tough to find the right people despite having a significant amount of replies to vacancies.

Salary expectations have been all over the place and I have seen a trend of more and more people coming from outside the industry willing to take a salary package considerably less than those with experience in the industry.

If managers sacrifice real expertise when hiring, it causes problems of its own. I have seen construction contractors who are running on a shoe string budget, who continue this strategy when resourcing their whole teams. When appointing key positions, particularly servicing world class projects, they need to be filled with good people who can add value from day one.

This leads on to the importance of maintaining your reputation as a business in the market because when competition for work is high, as it is, integrity is vitally important and unprofessional behaviour will soon see you kicked off the project in favour of a competitor.”

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“It’s no secret the coal industry is struggling. The market is down and we have spent the last year resetting our cost base. There are uncontrollable factors like price that you cannot change, but there has been a huge change in the way we do business moving from ‘coal at any cost’ to building a sustainable model and cost base. In the last year we have been re-pricing and re-negotiating our contracts and the competition is tough for anyone providing a service to a major coal mine in Australia.

With regards to commercial roles in mining, there will always be opportunities and key positions to be filled despite the market. What I have seen is that there are more people available to choose from, but the quality always stands out from the rest. From a commercial perspective identifying, attracting, and keeping quality people is even more important in the industry than before.”

Senior Commercial Manager, Coal Mining Industry

‘We think the next year will be based on a difficult operating environment. Our current retention has improved enormously, as people hang onto their jobs while they see what the market is doing. We are continuing to receive a large number of candidates at all levels looking to move to, or return to New Zealand from Australia and the Asia pacific region. Our expectation is that overall staff numbers will not increase over the next year and only the critical roles will be replaced, as we try to control costs.’

HR Manager, Mineral Mining Industry, New Zealand

“Over the past 12 months we’ve generally been able to find the calibre of personnel we’ve wanted, and salary expectations have mostly remained unchanged. It feels like demand for personnel has now past it’s absolute peak on the projects side; a lot of the engineering work has now been completed for the 3 CSG to LNG projects so there will be more design engineers coming on the market. The operators’ focus is changing from a project mode to an operational mode as first LNG approaches. This has led to restructuring and a renewed focus on production cost. The organisational culture transition from reactive teams supplying into a relatively resilient domestic market to very tightly planned and predictable operations supplying a capacity-limited, tightly scheduled export market is likely to be difficult. There is currently under-supply of gas to the projects so the short term priority will be to bring more wells online. It will be interesting to see the decision Arrow Energy (owned by Shell and Petro China) takes, and if they commit to building an LNG facility or tie into one of the other LNG projects. Political decisions will also have a significant effect on the industry; as it stands it’s significantly more profitable to supply gas to LNG for export instead of domestic supply.”

Senior Production, Maintenance and Engineering Manager, Oil and Gas Industry

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“Due to Australia’s and the rest of the world’s current economic climate, we are currently finding it easier to find qualified and good quality candidates in the majority of disciplines within our business; however, I do not know how long this good fortune will last. Due to some misfortunes that manufacturing companies are experiencing, our business will experience further growth of candidate pools, as the skill sets of the employees are transferrable in to our work place. Overall the slowdown of the mining industry has not affected the level of opportunities available for our company.

Conversely, this good fortune is predominantly seen in major cities or business hubs. There is still a lack of trade qualified Diesel Fitters and HV Electricians wanting to be located in remote areas, particularly Mt Isa, Queensland’s Western Region and Emerald without being remunerated at a level that is not sustainable for employers. We are currently noticing a significant focus on cost reduction activities in our client base with a strong emphasis on labour costs. This is evident in the decrease of FIFO and Life Style Roster positions available, which will eventually force employees to relocate to areas where employment opportunities are more readily available. Surprisingly it has become a little easier to recruit in notoriously hard regions like Gladstone and Mackay.

The usual uncertainty with a looming government election produces delays in major decisions, which causes each business to blindly forecast. I am predicting the 3rd quarter of 2013/2014 will bring more clarity to the future of the mining industry, especially in the Queensland region.”

Recruitment Advisor, Queensland OEM

“In the project infrastructure industry, salaries are not equal with the current workload and the way that external markets are working. There is a lot of pressure on construction contractors, as the end user is looking for the best value and the client is also feeling the pinch.

Tier One Contractors need to add value through good quality service and this comes through the people we have in our project teams. On the commercial side, a lot of candidates don’t understand cost control well enough and now, more than before, understanding your cost base is paramount. There are some companies still filling their pockets as fast as they can but their cash flow is all over the place.

The infrastructure industry still needs to be able to find project commercial people with broad knowledge across contracts, cost, and finance, so that we can de-risk our client and ourselves. The United Kingdom experienced candidates seem to be the best suited to this and they are not easy to find. The other aspect is being able to collaborate with the client to get the project completed on time and under budget. We need to ensure that the candidate has the whole package and this is the key to success.”

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Coal Mining Operations – Queensland

Open Cut Underground

Client Contractor Consultancy Client Contractor Consultancy

General Manager (site- client, corp.- Contractor) 300-380 - - 300-380 - - Project Manager / Mine Manager 220-280 220-300 - 240-320 220-320 - Technical Services Manager 220-230 190-220 190-210 220-240 - 185-205 Technical Services Superintendent 175-180 175-195 - 185-195 -

Senior Mining Engineer (5 yrs.+) 150-180 150-180 140-170 150-190 150-190 150-170 Mining Engineer (3-5 yrs.) 130-150 130-150 120-160 145-170 145-160 145-160 Senior Mine Geologist 150-170 150-170 140-170 160-180 - 145-160

Mine Geologist 120-150 120-140 - 140-160 - -

Senior Geotechnical Engineer 150-175 150-180 140-170 160-180 - 140-170

Geotechnical Engineer 130-150 130-150 120-160 140-160 - -

Exploration Manager 200-250 - - - -

Senior Exploration Geologist 130-165 130-165 - 130-165 - -

Exploration Geologist 100-130 100-130 100-130 100-130 - -

Registered Mine Surveyor 145-165 140-160 $60-$70 / hr. 160-185 - $80-$110 / hr. Senior Mine Surveyor (5 yrs.+) 130-155 140-160 $55-$85 / hr. 150-170 - $55-$90 / hr. Mine Surveyor (3-5 yrs.) 115-130 115-130 $45-$55 / hr. 140-150 - $50-$60 / hr.

HSET Manager 185-220 180-200 - 190-230 - -

HSET Superintendent 175-185 150-185 - 175-185 - -

Senior HSET Advisor 133-155 120-150 100-150 120-150 120-160 120-150

HSET Advisor 90-120 100-120 70-120 100-120 100-120 80-120

Environmental Manager 170-200 170-200 160-190 170-200 170-200 160-190 Environmental Advisor 110-130 110-130 90-120 110-130 110-130 90-120

Production Manager N/A N/A N/A 240-280 250-300 N/A

Longwall Superintendent N/A N/A N/A 220-260 230-270 N/A

Production Superintendent 180-200 185-225 - 220-240 - -

Production Supervisor 155-195 155-180 - - - -

Deputy N/A N/A N/A 175-250 195-250 N/A

Open Cut Examiner 160-280 160-280 - 190-230 190-230 -

CHPP Manager 180-220 175-195 - - - $120-180 / hr. CHPP Superintendent 160-190 140-160 - - - - Reliabilities Engineer 130-140 130-140 - - - - Mechanical Engineer 130-140 130-140 - 130-140 - - Electrical Engineer 130-140 130-140 - 130-140 - -

Senior Process Engineer 140-160 - - - - -

Process Engineer 120-140 - - - - -

Maintenance Superintendent 200-230 195-220 - 195-220 195-220 -

Maintenance Supervisor 165-185 160-180 - 160-185 160-180 -

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Note 1: Remuneration indicated in the above table is for taxable income, which typically includes base and superannuation or alternatively an hourly rate.

Note 2: Above salaries vary due to project nature, values, and associated accountabilities. SECTOR OVERVIEW

Stellar Recruitment expects that over the next 12 months the market will steadily improve with positive signs already evident. There are still significant projects forging ahead that will create momentum within the market. Mining contractors have been very busy over the last few months tendering for a vast amount of opportunities. Some of these projects are being awarded and are adding to a quiet confidence in an improved 12 month period.

Stellar expects key technical and statutory positions to still be in high demand across the board with a primary need in underground operations. The challenge of sourcing and securing these professionals across both open and underground mining environments still remain. Salaries are expected to stay constant but with less flexibility on fly-in -out (FIFO) rosters or added benefits due to an increasing demand in cost-saving.

The last 12 months have been a challenging period for most mining companies, with constant peaks and troughs in media representation, large scale redundancies, and confidence levels regarding pricing. Some pockets of professionals have become more readily available due to expenditure cuts, which include exploration and expansion projects. Key technical and managerial professionals have remained in short supply but with fewer opportunities in the market for these candidates to move.

Most mining companies have taken the last year as an opportunity to review their operations and make significant changes to the base cost. This has concluded with shelving capital expenditure, expansions and exploration. Mining companies also took a significant step to freeze all internal and external recruitment until the operating cost or coal price changes in their favour. This environment has meant that salaries have remained relatively constant with some mining companies opting to reduce the amount of days worked as an effort to cut cost without the need for redundancies.

Salary packages are primarily structured on base plus superannuation. Depending on the location, position, and the company packages they can also include vehicle, housing, performance bonus, and site uplift. The last year has seen a cut-back in incentives and bonuses with companies opting to focus on cost saving initiatives with a focus on staff retention; however, for some key positions housing, rosters and other incentives have still been on offer to attract high quality candidates.

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Coal Mining Operations – New South Wales

Open Cut Underground

General Manager 290-350 250-350 - 290-350 N/A

Project Manager (Ops Mgmt.) /

Mine Manager 220-260 220-300 - 220-280 220 - 280 N/A

Technical Services Manager 190-230 190-220 180-200 210-240 N/A N/A Technical Services Superintendent 175-180 175-195 - 185-195 170-195 N/A Senior Mining Engineer (5 yrs. +) 140-170 140-160 140-170 150-170 150-170 140-170 Mining Engineer (3-5 yrs.) 120-140 110-140 120-160 145-160 145-160 145-160 Senior Mine Geologist 150-170 150-170 140-170 160-180 140-160 140-165

Mine Geologist 120-140 120-140 120-140 140-160 N/A

700-1000/day Senior Geotechnical Engineer 150-175 150-160 150-170 160-180 N/A

1600-1800/day Geotechnical Engineer 130-150 120-140 130-150 140-160 N/A

1000-1400/day Registered Mine Surveyor 140-170 145-170 $60-$70 / hr. 160-185 N/A $80-$110 /

hr. Senior Mine Surveyor (5 yrs.+) 125-145 130-155 $55-$80 / hr. 150-165 N/A $55-$80 / hr. Mine Surveyor (3-5 yrs.) 115-130 115-130 $45-$55 / hr. 140-150 N/A $50-$60

HSET Manager 185-220 180-200 N/A 190-230 N/A N/A

HSET Superintendent 175-185 150-185 N/A 175-185 N/A N/A

Senior HSET Advisor 133-155 120-150 100-150 120-150 120-160 120-150

HSET Advisor 90-120 100-120 70-120 100-120 100-120 80-120

Environmental Manager 170-200 170-200 160-190 170-200 170-200 160-190 Environmental Advisor 110-130 110-130 90-120 110-130 110-130 90-120

Production Manager N/A N/A N/A 240-280 250-300 N/A

Longwall Superintendent N/A N/A N/A 220-260 230-270 N/A

Production Superintendent 180-200 185-225 N/A N/A N/A N/A

Production Supervisor 155-195 155-180 N/A N/A N/A N/A

Undermanager N/A N/A N/A 200-240 200-250 N/A

Deputy N/A N/A N/A 160-200 160-210 N/A

CHPP Manager 180-220 180-220 N/A N/A N/A N/A

CHPP Superintendent 160-190 150-180 N/A N/A N/A N/A

Reliabilities Engineer 110-125 115-130 N/A _- - N/A

Mechanical Engineer 110-125 115-130 N/A 130-140 - N/A

Electrical Engineer 110-125 115-130 N/A 130-140 - N/A

Senior Process Engineer 140-160 140-160 - - - -

Process Engineer 120-140 120-140 - - - -

Maintenance Superintendent 180-210 180-210 - 190-215 180-200 - Maintenance Supervisor 150-175 140-170 - 150-180 150-180 -

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New South Wales’s mining industry is showing signs of movement. Recruitment activity in the sought after Hunter Valley area has again started for technical and statutory positions. More regional areas such as Gunnedah and Mudgee are also recruiting for similar positions now that the operations have settled after cost cutting exercises. Stellar expect the market to maintain a steady pace with a continual focus on operating efficiency and cost saving. There are still significant projects progressing through the approvals stages such as BHP’s Caroona, Whitehaven Coal’s Maules Creek, and Shenhua’s Watermark project. These projects will steadily create a greater need for staff in the Gunnedah Basin area. Stellar also expect changes in operating structures with mining contractors tendering for various opportunities.

Stellar expects recruitment to remain replacement based rather than through growth. Certain regions still struggle to attract staff on a residential basis as both Queensland and Western Australia are still offering FIFO or DIDO (drive-in, drive-out) to coastal locations.

The last year has been a challenging period for New South Wales alongside Queensland. However, due to the type of coal generally mined within New South Wales operations, the industry has always attempted to maintain a lean workforce and therefore run at a lower operating cost to their Queensland counterparts. Stellar have still seen cost cutting and staff redundancies; however, these have been at a far smaller scale than in Queensland. Mining contractors within underground environments were hit the hardest, with contracts being reduced or retrenched entirely. There has also been a trend with the open cut mines moving for an owner operator model in an attempt to further improve the operating cost. To date there has only been a small amount of movement within the New South Wales coal industry in terms of recruitment for key technical, statutory, and management positions.

Similar to Queensland mining operations, the last year has seen a cut-back in incentives and bonuses with companies opting to focus on cost saving with a focus on staff retention. For some key positions housing, rosters and other incentives have still been on offer to attract high quality candidates, however these are quite rare within coal.

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Mining Operations – New Zealand

Open Pit Underground

Client Contractor Consultancy Client Contractor Consultancy

General Manager (site- client, corp.- Contractor) 300-350 320-380 - 300-380 _- - Project Manager / Mine Manager 180-290 220-320 - 215-240 220-250 -

Technical Services Manager 200-230 180-220 220-240 - -

Technical Services Superintendent 170-190 160-180 - 175-195 - - Senior Mining Engineer (5 yrs.+) 150-180 150-180 140-170 130-160 150-190 120-150 Mining Engineer (3-5 yrs.) 130-150 130-150 120-160 145-170 120-140 100-130

Senior Mine Geologist 130-160 - 100-140 110-140 - -

Mine Geologist 120-150 - - 90-130 - -

Senior Geotechnical Engineer 150-175 - 100-150 140-160 - -

Geotechnical Engineer 130-150 - 70-120 110-135 - -

Exploration Manager 160-220 - - - - -

Senior Exploration Geologist 130-165 - - - - -

Exploration Geologist 75-100 - 100-130 - - -

Senior Mine Surveyor (5 yrs.+) 130-155 140-160 - 150-170 - - Mine Surveyor (3-5 yrs.) 115-130 115-130 - 140-150 - -

HSET Manager 185-220 180-200 - 190-230 - -

HSET Superintendent 175-185 150-185 - 175-185 - -

Senior HSET Advisor 133-155 120-150 - 120-150 120-160 120-150

HSET Advisor 90-120 100-120 - 100-120 100-120 80-120

Environmental Manager 170-200 - - 170-200 170-200 160-190 Environmental Advisor 110-130 - - 110-130 110-130 90-120

Production Superintendent 180-200 185-225 - - - -

Production Supervisor 155-195 155-180 - - - -

Open Cut Examiner N/A N/A - N/A N/A N/A

CHPP Manager 180-220 - - - - -

CHPP Superintendent 160-190 - - - - -

Reliability Engineer 100-130 100-120 - - - -

Mechanical Engineer 90-130 90-130 - 100-150 - -

Electrical Engineer 100-140 130-140 - 100-150 - -

Senior Process Engineer 110-150 - - - - -

Process Engineer 80-120 - - - - -

Maintenance Superintendent 170-210 150-195 - 160 - 185 160 - 185 - Maintenance Supervisor 150-175 140-180 - 150-175 150-180 - Maintenance Planner 100-130 85-120 - 90 -130 115-160 -

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SECTOR OVERVIEW

With coal and gold prices significantly decreased at the moment, one hopes that there is light at the end of the tunnel for the New Zealand mining industry; fortunately most signs are positive. New Zealand coal has an excellent calorific value and is still required for key operations and blending across the world. Continued demand from both China and India for such coal and fundamental supply/demand factors globally for gold should mean that the current slump is an overall correction in the market. The last year has been another reminder of the cyclical nature of this industry that is dominated by macro-economic factors. The climb back out will create significant efficiencies across operations and opportunities for those smart enough and willing to buck the status quo.

In terms of recruitment, it is most certainly a buyers’ market for candidates in 2013, with significant numbers of people in the market for jobs. This means organisations have a ready supply of people to choose from and will often be able to identify talent that is ticking most, if not all of the boxes. Certain roles will continue to experience shortages, particularly Geotechnical Engineers, to a lesser extent Mining Engineers and mine management but the ‘war for talent’ has turned into a few sporadic battles here and there. Geologists are once again doing it tough, but most with quality experience, flexibility and good ‘employability’ traits are still gainfully employed and are picking up new opportunities.

New Zealand has seen significant change in the mining industry over the past year, dominated by some major redundancies, cost cutting, and senior personnel changes. Mining has picked up increased media attention in 2012-13 that has been mostly negative, however more and more New Zealanders have recognised the benefits that it brings to the economy and are lending support to sustainable and environmentally sound operations.

Salaries continue to be very competitive and compared to similar jobs regionally in Australia, remuneration is on par with similar residential lifestyle locations such as Victoria, Tasmania and New South Wales, which offer family-friendly towns to reside in close to the operations, quality schooling and very affordable housing. New Zealand offers only a small number of FIFO/DIDO rosters for professional positions; these are more common on the trades and operating side and are only achievable on a select number of sites. Salaries generally consist of a base salary; standard Kiwisaver/ Superannuation employer contributions of 3% to match the compulsory employee 3%; a work vehicle for professional and managerial roles; relocation costs based on seniority and up to 30% of annual salary as a performance related bonus depending on the employer.

The New Zealand Government has made clear its intention to promote the industry, both as a strong and important part of the economy and to potential overseas investors for new investment. As a part of this, they have ramped up their internal hiring to ensure they have the resources and capability to regulate, tender and administer mineral properties. This bodes well for the industry in 2013 - 2014 and if legislation can provide greater investor confidence in relation to timelines and requirements for mining approvals, this will go a long way to improving capital expenditure and investment.

New Zealand has multiple projects moving ahead such as the Northland minerals tender which has just been released. This sees both existing and new entrants into NZ minerals exploration, opening up jobs for Geologists, drilling staff and support roles. As well as this,

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the Taupo epithermal gold competitive tender opens in July, paving the way for another round of investment and the opportunity to grow the industry into something world-class and profitable for the whole country.

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Metalliferous Operations – Queensland and New South Wales

Open Cut Underground

General Manager 310-360 300+ 280+ 310-360 N/A N/A

Project Manager 250-330 250-330 N/A 250-330 250-330 N/A

Technical Services Manager 190-230 190-230 N/A 190-230 190-230 N/A Senior Mining Engineer (5 yrs.+) 180-200 170-190 170-190 180-200 170-190 170-190 Mining Engineer (3-5 yrs.+) 140-180 140-160 140-160 140-180 140-160 140-160

Chief Geologist 190-220 N/A 160-200 190-220 N/A 160-200

Senior Mine Geologist 160-180 N/A 150-180 160-180 N/A N/A

Mine Geologist 120-150 N/A 110-150 120-150 N/A 110-150

Exploration Manager 190-220 N/A N/A 180-220 N/A N/A

Senior Exploration Geologist 150-190 N/A N/A N/A N/A N/A

Exploration Geologist 120-150 N/A N/A N/A N/A N/A

Senior Geotechnical Engineer 160-190 N/A 140-180 150-190 N/A 140-180

Geotechnical Engineer 130-170 N/A N/A 130-170 N/A N/A

Senior Mine Surveyor (5 yrs.+) 150-170 150-170 150-170 150-170 150-170 150-170 Mine Surveyor (3-5 yrs.) 130-150 130-150 130-150 130-150 130-150 130-150 Safety Manager 180-200 180-200 180-200 180-200 180-200 180-200 Safety Superintendent 160-190 160-190 160-190 160-190 160-190 160-190 Safety Advisor 120-150 120-150 120-150 120-150 120-150 120-150 Senior Safety Advisor 140-170 140-170 140-170 140-170 140-170 140-170 Environmental Manager 200-220 200-220 N/A 200-220 200-220 N/A

Environmental Advisor 130-160 - - 130-160 - -

Reliabilities Engineer 110-130 110-130 N/A - - N/A

Mechanical Engineer 110-130 110-130 N/A 120-140 - N/A

Electrical Engineer 110-130 110-130 N/A 120-140 - N/A

Production Superintendent 180-220 180-220 180-220 180-220 180-220 180-220 Production Supervisor 160-180 160-180 160-180 160-180 160-180 160-180

Metallurgy Manager 190-240 N/A N/A N/A N/A N/A

Metallurgist 130-155 130-155 130-155 130-155 130-155 130-155 Maintenance Superintendent 195-220 195-220 195-220 195-220 195-220 195-220 Maintenance Supervisor 150-175 150-175 150-175 150-175 150-175 150-175 Maintenance Planner 135-155 135-155 135-155 135-155 135-155 135-155

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SECTOR OVERVIEW

The next year will see a higher demand for key technical positions, especially in underground operations. Salaries are expected to remain similar with some clients opting to increase rosters and restructuring departments in the aim of reducing overhead cost. The exploration market would be expected to remain flat due to companies spending most of their capital on production and junior exploration companies having difficulty in raising funds. Over the last 12 months, most mining companies have reduced their cost base, which has included redundancies, freezing of recruitment for non-critical roles, changing rosters, and putting exploration projects on hold. Exploration has been hit the hardest with many junior exploration companies unable to raise funds.

Salary packages continue to be structured on a base plus superannuation arrangement. The majority of remote residential roles are compensated by employers offering some kind of allowance to offset living in a remote location. Other incentives usually include a vehicle and bonus structure for management positions.

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Mining Operations – Western Australia

Open Cut Underground

General Manager 280-320 300-320 - 280-320 300-320 -

Mine Manager 300-330 N/A - 300-330 N/A -

Project Manager 250-300 250-300 - 250-300 250-300 - Technical Services Manager 180-200 N/A 180-200 180-200 - 180-200 Technical Services Superintendent 150-180 N/A - 150-180 - - Senior Mining Engineer (5 yrs.+) 140-170 140-170 120-150 140-170 140-170 120-150 Mining Engineer (3-5 yrs.) 120-140 120-140 100-120 120-140 120-140 100-120 Senior Drill & Blast Engineer (5 yrs.+) 140-160 - - 140-160 - - Drill and Blast Engineer (3-5 yrs.) 120-135 120-135 - 120-135 - -

Chief Geologist 180-200 N/A N/A 180-200 N/A N/A

Senior Mine Geologist 140-180 N/A N/A 140-180 N/A N/A

Mine Geologist 120-140 N/A N/A 120-140 N/A N/A

Senior Exploration Geologist 140-180 N/A N/A 140-180 N/A N/A Exploration Geologist 110-130 N/A N/A 110-130 N/A N/A Senior Geotechnical Engineer 130-160 N/A N/A 130-160 N/A N/A Geotechnical Engineer 120-150 N/A N/A 120-150 N/A N/A Senior Mine Surveyor (5 yrs.+) 130-150 130-150 - 140-160 140-160 - Mine Surveyor (3-5 yrs.) 110-130 110-130 - 110-130 110-130 -

Safety Advisor 100-140 100-140 - 100-140 100-140 -

Senior Safety Advisor 120-140 120-140 - 140 - 160 120-140 -

Environmental Manager 160-180 - - 160 - 190 - -

Environmental Advisor 80-120 - - 90 -130 - -

Production Superintendent 140-185 140-185 - 190 - 220 140-185 - Production Supervisor 120-150 120-150 140 - 180 120-150

Metallurgy Manager 180-200 N/A N/A 180-200 N/A N/A

Metallurgist 110-130 N/A N/A 110-130 N/A N/A

Reliability Engineer 140-160 140-160 N/A 140-160 140-160 N/A Mechanical Engineer 140-160 140-160 N/A 140-160 140-160 N/A Electrical Engineer 140-160 140-160 N/A 140-160 140-160 N/A Maintenance Superintendent 140-180 150-180 - 150-180 150-180 - Maintenance Supervisor 140-170 140-170 - 130-150 130-150 - Maintenance Planner 130-160 130-160 - 110-140 110-140 - Maintenance Manager 190-220 200-230 - 180-210 180-210 -

Quarry Manager 180-240 180-240 - N/A N/A -

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SECTOR OVERVIEW

Over the last year there has been a cooling in the demand for skills in a variety of areas such as Geologists, exploration field staff, as well as operational and maintenance personnel. Experienced engineering staff are still in strong demand though not at the levels seen over the last couple of years. We expect salaries to remain consistent over the coming year and whilst there will not be the same levels of intensity around recruitment activity many organisations are expected to take advantage of the perceived increase in availability of talent to secure key people for their organisations. Partnering with a recognised recruiter with strong industry contacts will be essential to access this passive job seeker market. Salary packages over the next 12 months will continue to be tailored. These will reflect the location, size of the operation, and whether it is residentially based or fly in fly out (FIFO). Expat salaries have remained steady over the last year as the increase for work in Africa and South East Asia continues. Most companies are still offering net figures whilst paying in-country taxes along with other benefits such as business class flights and performance bonuses. The most prevalent change has been that most companies are changing their rosters to a standard 6/3 week FIFO arrangement. This change seems to be the biggest selling point when attracting expats to work in remote locations.

The mining industry in Western Australia has always had a strong focus on re-investing into the community. Initiatives vary from supporting sporting club as well as local and indigenous community groups. They also provide scholarships, internships, and vacation study programs for students from the WA School of Mines and other tertiary institutions. This is done directly by companies and by industry body’s such as the WA Mining Club of which Stellar is proud to be associated with.

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Mining Operations – South Australia

Open Cut Underground

General Manager 280-320 300-320 - 280-320 300-320 -

Project Manager 250-300 250-300 - 250-300 250-300 -

Technical Services Manager 180-200 N/A 180-200 180-200 - 180-200 Technical Services Superintendent 150-180 N/A - 150-180 - - Senior Mining Engineer (5 yrs.+) 140-170 140-170 120-150 140-170 140-170 120-150 Mining Engineer (3-5 yrs.) 120-140 120-140 100-120 120-140 120-140 100-120

Chief Geologist 180-200 N/A N/A 180-200 N/A N/A

Senior Mine Geologist 140-180 N/A N/A 140-180 N/A N/A

Mine Geologist 120-140 N/A N/A 120-140 N/A N/A

Senior Exploration Geologist 140-180 N/A N/A 140-180 N/A N/A

Exploration Geologist 110-130 N/A N/A 110-130 N/A N/A

Senior Geotechnical Engineer 130-160 N/A N/A 130-160 N/A N/A

Geotechnical Engineer 120-150 N/A N/A 120-150 N/A N/A

Senior Mine Surveyor (5 yrs.+) 130-150 130-150 - 140-160 140-160 - Mine Surveyor (3-5 yrs.) 110-130 110-130 - 110-130 110-130 -

Safety Manager 180-220 180-220 - 180-220 180-220 -

Safety Superintendent 150-180 150-180 - 150-180 150-180 - Senior Safety Advisor 120-140 120-140 - 140 - 160 120-140 -

Safety Advisor 100-140 100-140 - 100-140 100-140 -

Environmental Manager 160-180 - - - - -

Environmental Advisor 80-120 - - - - -

Production Superintendent 140-180 140-180 - 190 - 220 140-180 - Production Supervisor 120-150 120-150 - 140 - 180 120-150 -

Metallurgy Manager 180-200 N/A N/A 180-200 N/A N/A

Metallurgist 110-130 N/A N/A 110-130 N/A N/A

Reliability Engineer 130-150 130-150 N/A 130-150 130-150 N/A Mechanical Engineer 130-150 130-150 NA 130-150 130-150 N/A Electrical Engineer 130-150 130-150 N/A 130-150 130-150 N/A Maintenance Superintendent 140-180 140-180 - 150-180 150-180 - Maintenance Supervisor 130-150 130-150 - 130-150 130-150 -

Maintenance Planner 120-150 120-150 - 110-140 110-140 -

Quarry Manager 180-240 180-240 - - - -

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SECTOR OVERVIEW

Given the smaller size of the resources industry in South Australia, when compared with Queensland and Western Australia, Stellar is not expecting any major moves in salaries over the coming year. Operations that are running on smaller cost bases should continue to have success, and Stellar would expect a demand for qualified, experienced personnel to continue in these areas.

Over the last 12 months South Australia, like other states, has been experiencing challenges across the resources industry with the expansion of Olympic Dam being put on hold and a level of uncertainty in general. On the whole salaries have remained consistent with little change from last year.

Stellar are not expecting to see any major change in packages on offer or any real diversification in rosters or work arrangements.

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Mining Operations – North Americas

USA

Client Consultancy

Mining Engineer 50-80 75-110

Senior Mining Engineer 80-110 110-130 Chief / Principal Mining Engineer 110-130 150-170

Geologist 40-65 40-65

Senior Geologist 65-90 65-90

Chief / Principal Geologist 90-115 90-115

Geotechnical Engineer 55-75 75-110

Senior Geotechnical Engineer 75-100 110-130 Principal Geotechnical Engineer 115-145 150-170

Metallurgist 55-80 65-85

Senior Metallurgist 80-110 85-115

Chief Metallurgist 110-140 115-140

Mine Manager / Management 130-160 140-180 General Management 180-200+ 180-200+

Note 1: Remuneration indicated in the above table is for taxable income.

Note 2: Above salaries vary due to project nature, values, and associated accountabilities.

Canada

Client Consultancy

Mining Engineer 80-100 100-120

Senior Mining Engineer 110-130 130-150 Chief / Principal Mining Engineer 130-170 150-180

Geologist 80-100 100-120

Senior Geologist 100-120 120-150

Chief / Principal Geologist 130-160 150-180 Technical Services Superintendent 140-160 - Technical Services Manager 150-180 -

Management 170-200 150+

General Management 200+ 180+

Note 1: Remuneration indicated in the above table is for taxable income.

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SECTOR OVERVIEW

The next 12 months for the North American mining industry will see a continuation of the past year, with key players in the market focusing on mining fundamentals, being disciplined with overhead costs, capital spend, and optimizing existing operations. On a positive note, the majority of Stellar’s major mining clients are optimistic about 2014 and are talking of increased capital expenditure, and bringing some deferred projects back on line pending market conditions later in the year. This will lead to job creation and may increase salaries as competition for talent heats up.

There are still key shortages predicted across the industry for technical, production and trades roles. Whilst Stellar do not predict salary increases in the short term come the New Year things may change if market conditions improve.

Over the last 12 months the North American mining industry saw major mining companies refocus, being more disciplined with cost, reducing overheads, and cutting or deferring capital spend. Job losses were felt with major mining companies attempting to reduce overheads and projects being shelved. This had a roll on effect with mining consultancies losing more jobs as their work dried up. Additional job cuts were felt within the United States coal industry after the re-election of President Obama.

On a more positive note, there were still a number of companies who did expand over the year. There were developing greenfield mines and brownfield expansions, contributing to job growth across the industry.

Due to the various market conditions, salaries in the mining industry remained the same. Despite some uncertainty in the market, there was still movement. The roles in most demand are across technical areas– mining engineering, geotechnical, metallurgy, and reliability as well as trades, including mechanical and electrical technicians.

The industry did see an increased interest from Canadian’s and American’s looking to work overseas in places like Africa, Australia and South America; and vice versa with many Australian’s expressing interest in working in Canada and the United States.

Salary packages in the United States are typically being offered as base, health benefits, matching retirement contribution between 4% and 6%, bonus payment between 20% and 30%, and stock options or employee share purchase plans. Clients are offering paid time off (PTO) at 4 weeks for senior roles, and generally starting at 2 weeks for low to mid-level roles. Low to mid-level candidates in contracts are expecting 3 weeks PTO as a minimum starting point. The majority of roles that offer residential are working Monday to Friday. Canadian salaries are typically higher than those in the United States; however, living in Canada warrants an increase due to cost of living and tax payable. Common packages within the mining industry include base, health benefits, retirement contributions around 5%, bonus payments between 10% to 30%, and stock options or employee share purchase plans.

Lifestyles in Canada are a mix of residential or FIFO, typically a 2 week on, 2 week off rotation. The 2:2 rosters seem to be highly attractive to a large number of candidates. The United States Government are mandating an overhaul of the mining permitting process has been reintroduced. The bill streamlines the permitting process for mineral development by coordinating the actions of federal, state, local, and tribal agencies to reduce red tape while protecting the environmental review process. By reintroducing the National Strategic and Critical Minerals Production Act of 2013, it will allow the country to be more efficient in

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developing strategic and critical minerals, such as rare earth elements, that are vital to job creation, and American economic competitiveness.

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Mining Operations – Africa

Open Cut Underground

Client Contractor Client Contractor

General Manager 280-350 280-320 300-350 280-320 Project Manager 200-250 200-250 200-250 200-250 Technical Services Manager 180-200 N/A 180-200

Technical Services Superintendent 150-180 N/A 150-180

Mining Engineer (3-5 yrs) 120-140 120-140 120-140 120-140 Senior Mining Engineer (5yrs +) 150-180 150-180 150-180 150-180

Chief Geologist 200-250 200-250

Senior Mine Geologist 160-180 160-180 Exploration Manager 180-200 180-200 Senior Exploration Geologist 150-180 150-180 Exploration Geologist 120-140 120-140 Senior Geotechnical Engineer 160-180 160-180 Geotechnical Engineer 150-170 150-170

Senior Mine Surveyor (5yrs +) 130-150 130-150 140-160 140-160 Safety Manager 180-200 180-200 180-200 180-200 Safety Superintendent 140-160 150-180 150-180 150-180 Senior Safety Advisor 130-150

Environmental Manager 170-190 N/A N/A

Environmental Advisor N/A 120-150 N/A

Production Superintendent 140-180 140-180 160 - 180 140-180 Production Supervisor 140-160 140-160 140 - 160 120-150 Metallurgy Manager 200-220 N/A 190-220 N/A Metallurgist 130-150 N/A 140-160 N/A Reliability Engineer 140-180 140-180 130-170 130-170 Mechanical Engineer 140-180 140-180 140-180 140-180 Electrical Engineer 150-180 150-180 150-180 150-180 Maintenance Superintendent 180-200 180-200 170-200 170-200 Maintenance Supervisor 140-160 140-160 140-160 140-160 Maintenance Planner 150-170 150-170 130-150 130-150

Note 1: Remuneration indicated in the above table is NET income, clear of in country taxes. Note 2: Above salaries vary due to project nature, values, and associated accountabilities. SECTOR OVERVIEW

Stellar Recruitment’s presence throughout Africa still remains strong and the business continues to grow with Australian based companies’ assets across African nations increasing. The past year has been a rollercoaster with projects being ready to start construction through to the more recent projects being put on hold due to the Australian dollar and gold price. Most explorers have reduced their programs and operators still

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continue to produce with confidence that further exploration activities will occur at a later stage.

Salaries have more recently come down slightly due to fewer roles being on the market. This has meant more candidates being available and being more realistic with their salary expectations. Stellar is expecting slower growth over the next 12 months; however, there is still plenty of activity and it remains prevalent that operations are able to run at a much lower cost than Australia. Specific countries across Western Africa do have major security issues, which may impact the ability to mine in safe mining environments. These security issues has brought further awareness to expats and increased their hesitation to working in specific regions.

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Trades and Operators – Queensland

Open Cut Underground

Client Contractor OEM Client Contractor OEM

Diesel Fitter - Coal 125-135 125-135 130-150 130-150 130-150 130-150 Longwall/Development

Electrician - - - 130-150 130-150 130-150

Development Operator - - - 125-140 125-140 -

Longwall Operator - - - 125-140 125-140 -

Auto Electrician - Coal 120-140 120-140 120-140 - - - HV Electrician - Coal 120-140 120-140 120-140 - - - Serviceman - Coal 115-120 115-120 115-120 - - - Drill Fitter - Coal/Hard rock 120-130 120-130 120-130 120-130 120-130 120-130 Diesel Fitter - Hard rock 110-130 110-130 110-130 110-130 110-130 110-130 Auto Electrician - Hard rock 110-130 110-130 110-130 110-130 110-130 110-130 HV Electrician - Hard rock 110-130 110-130 110-130 110-120 110-120 110-120 Boiler Maker Welder 120-130 120-130 120-130 120-130 120-130 120-130 Dump Truck Operator - Coal 110-120 100-115 - - - - Multi-Skilled Operator - Coal 115-125 110-120 - - - - Excavator Operator - Coal 125-140 120-130 - - - -

Last year’s cost cutting by service providers resulted in mining companies reducing costs by up to 20%. This focus is creating optimism within the industry, which will continue to grow if the Australian dollar drops further and the coal commodity prices increase.

Global mining companies have projected that the Asian market will pick up their demand for Australian resources that will in turn drive up production. Increased production will create a further need for labour that will allow them to ramp up production.

There has been a great deal of negative press about the Queensland mining industry, however Stellar believes that there will be real opportunity over the next couple of years as big mining projects transfer from construction to operational phase.

Over the last year more candidates have become available due cost cutting and redundancies; however, the market is still finding it difficult to find skilled and experienced Diagnostic Diesel Fitters, HV Electricians, and Excavator Operators producing high BCM rates.

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In the recent downtown, salaries have stabilised and in some cases dropped slightly. Stellar expects that packages will remain the same for the immediate future until the sector lifts.

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Trades and Operators – Western Australia

Open Cut Underground

Client Contractor OEM Client Contractor OEM

Heavy Duty Diesel Fitter 130-180 140-170 150-200 120-160 120-140 110-130 Mechanical Fitter 115-150 115-150 100-110 120-150 110-120 110-130 Auto Electrician 130-170 130-180 150-200 120-150 120-140 120-140 HV Electrician 130-170 130-180 150-200 120-150 110-130 110-130 Underground Fitter N/A N/A N/A 110-150 110-150 110-150 Underground Electrician N/A N/A N/A 110-150 110-150 110-150 Fixed Plant Electrician 120-150 120-150 120-150 110-130 110-130 110-130 E & I Technicians 120-150 120-150 120-170 110-130 110-130 110-130 Boiler Maker Welders 110-145 110-145 120-150 110-130 110-130 110-130 Product Support Advisor 140-200 140-180 140-220 120-130 120-130 120-130 Technical Trainer 130-150 130-150 130-150 130-150 130-150 130-150 Dump Truck Operator 100-120 100-120 N/A 110-150 110-150 N/A All-rounder Operator 115-135 115-135 N/A 110-150 110-150 N/A Excavator Operator 135-150 135-150 N/A N/A N/A N/A

The next year is expected to be a very interesting time for Western Australian mining industry. Commodity price movements are forcing companies to reassess production levels and focus on controlling costs as well as maximising productivity. Some sites have reduced their trades and operator staffing levels although productivity remains a focus for maintenance departments; this strategy still requires quality, skilled and experienced personnel.

The last 12 months have seen a definite cooling in the recruitment market for trades and operators. There was a very sharp decline in activity last August/September and since then the market has remained steady but at a much lower level than the last couple of years. In regards to salaries, there has not been a great movement across trades and operators, and Stellar does not foresee a change in the immediate future.

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Oil and Gas – Queensland

Operator Contractor Consultancy

Project Manager 170-240 160-220 150-210

Project Controls Manager 190-250 180-230 180-240 Project Services Manager 200-260 200-250 200-250 Senior Pipeline Engineer (8 yrs.+) 150-220 150-210 150-210 Pipeline Engineer (3-5 yrs.) 90-110 80-110 80-100 Petroleum/ Reservoir Engineering Manager 220-300 N/A 220-300 Senior Petroleum Engineer (5 yrs.+) 155-210 155-210 150-230 Petroleum Engineer 120-180 135-175 135-175 Senior Reservoir Engineer 160-230 160-230 160-230 Reservoir Engineer 120-160 120-160 120-160 Drilling/ Completions Manager 190-255 180-240 180-240 Senior Drilling/ Completions Engineer 140-210 140-200 140-200 Drilling/ Completions Engineer 115-170 115-165 115-165 Wellsite Supervisor - Drilling 160-240 160-240 160-240

Cost Manager 180-230 180-220 180-230

Senior Cost Engineer 140-180 140-180 140-180

Cost Engineer 110-140 110-140 110-140

Contracts Manager 180-220 180-220 180-220 Lead Contracts Engineer 120-160 120-160 120-160

Contract Engineer 90-130 90-130 90-130

Planning Manager 190-250 190-240 190-240

Senior Planner 140-180 140-180 140-180

Planner 110-140 110-140 110-140

Senior Mechanical Engineer (8 yrs.+) 150-220 150-210 150-210 Mechanical Engineer (3-5 yrs.) 90-110 80-110 80-110 Senior Electrical Engineer (8 yrs.+) 150-220 150-210 150-210 Electrical Engineer (3-5 yrs.) 90-110 80-110 80-110 Senior Structural Engineer (8 yrs.+) 150-220 150-210 150-210 Structural Engineer (3-5 yrs.) 90-110 80-110 80-110

Geology Manager 180-280 180-280 180-280 Senior Geologist 145-190 145-190 145-190 Geologist 110-155 110-155 110-155 Geophysicist 100-150 100-150 100-150 Petrophysicist 100-160 100-160 100-160 QA/ QC Manager 160-200 160-200 160-200 QA/ QC Coordinator 135-160 135-160 135-160

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Oil and Gas – Queensland continued.

Operator Contractor Consultancy

QA/ QC Advisor 105-145 105-145 105-145

Estimating Manager 190-240 190-250 190-240

Senior Estimator 140-190 140-180 140-180

Estimator 120-150 120-150 120-150

Document and Data Control Manager 120-150 120-150 120-150 Lead Document Controller 100-130 100-130 100-130

Document Controller 60-90 60-90 60-90

Safety Manager 160-220 160-220 170-210

Safety Superintendent 150-180 150-180 150-180 Senior Safety Advisor 130-160 140-160 140-160

Safety Advisor 105-135 105-140 105-140 Environment Manager 155-220 155-220 155-220 Environment Coordinator 120-160 120-160 120-160 Environment Advisor 105-145 105-145 105-145 Production Superintendent 130-170 180-200 180-200 Production Supervisor 155-180 155-180 155-180 Maintenance Superintendent 195-220 195-220 195-220 Maintenance Supervisor 160-200 150-175 150-175 Maintenance Planner 135-155 135-155 135-155

A number of the Queensland ‘mega’ projects continue to progress forward through construction; as such Stellar anticipates an increase in the site construction personnel required. Looking further ahead, the industry anticipates a demand for experienced oil and gas operations and maintenance personnel on both upstream and downstream (Liquefied Natural Gas (LNG) facility) areas.

Stellar Recruitment envisages that for the next six months the design consultancy and EPCM sector will be rea