Opportunity

An entrepreneur sees an opportunity and grasps it...

The mining boom is radically changing regional labour markets. In turn,
cashed-up employees are driving a surge in regional property markets.

Everyday we hear more and more stories about how the mining boom is
transforming regional areas. Perhaps we haven't seen anything like it in
Australia since the gold-rush.

Indeed, reports of astronomical salaries suggest that quite a few people
are striking it rich. And yet mining companies are still complaining about
chronic labour shortages.

In the Bowen Basin for example. there are an estimated 1500 open positions.
BHP's joint venture coal mines have 750 vacant jobs in central Queensland
while Rio Tinto has 530 vacancies at its global operations. The Queensland
Resources Council found that there were 4924 current internet job
advertisements for the mining industry in Queensland with 1300 posted in
just one week!

This has sparked a pay war between companies and between states, with
recruiters now offering big incentives to get the right people for the job.
According to recruiters Robert Walters, project managers in mining can
now earn more than $500,000 a year, while a mine deputy can get $200,000. 

Labourers are getting $100,000 and dozer drivers are earning
$50 an hour.

"I've seen sign-on bonuses for 50 per cent of a salary," Robert Walters' head of
mining and engineering Adam Harris said.

He said some executives were getting their home loans repaid, others had
their children's school fees covered and huge bonuses were being paid to stay
beyond three or four years.

The surge in cashed-up workers is of course driving a boom in resource properties.

Add to the mix growing frustration locals have with a fly-in, fly-out workforce.
Some complain that these transient workers, many of whom fly home for the
weekend, drain council resources without contributing anything in return.

In fact, Isaac Shire Council, in the heart of the Bowen Basin, has gone so far
as to call for a cap on non-residential workers.

"Our population is only 21,500 and there are 9000 itinerant workers and they
are using all our facilities," Isaac Mayor Cedric Marshal said. "The boom is going at
100 miles an hour. I think we need to take a serious look at it."

If caps are implemented, this will only drive property prices further.

There is gold in them there hills...