Are these $200,000 mining jobs for real?

[DaveJ]

Source: Wall Street Journal

One of the fastest-growing costs in the global mining industry are workers like James Dinnison: the 25-year-old high-school dropout from Western Australia makes $200,000 a year running drills in underground mines to extract gold and other minerals.

The heavily tattooed Mr. Dinnison, who started in the mines seven years ago earning $100,000, owns a sky-blue 2009 Chevy Ute, which cost $55,000 before a $16,000 engine enhancement, and a $44,000 custom motorcycle. The price tag on his chihuahua, Dexter, which yaps at his feet: $1,200.

A precious commodity himself, Mr. Dinnison belongs to a class of nouveau riche rising in remote and mineral-rich parts of the world, such as Western Australia state, where mining companies are investing heavily to develop and expand iron-ore mines. Demand for those willing to work 12-hour days in sometimes dangerous conditions, while living for weeks in dusty small towns, is huge.

Read more: http://online.wsj.com/article/SB10001424052970204621904577016172350869312.html?mod=WSJ_hp_LEFTTopStories

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I normally wouldn't post something from the front page of the WSJ. It's not really news if it's posted there.

I was just wondering, is this for real, or is Murdoch trying to make people feel if we aren't rich it's our own fault? If it is real, why not work in a mine if you're healthy and willing and in need of a job?

[TheWraith]

1. I have no doubt that it's a case of highly selective reporting.

I'm sure that Dinnison has some kind of highly sought-after expertise in engineering or geology.

[Xithras]

2. Sure it's real

As it says though, it's tough work. You're talking about physically demanding jobs where you will be working far from your friends and family for weeks at a time. You're surrounded by danger, are at risk of death from collapses and explosions on a near-daily basis, and even if nothing happens, long term exposure to mining dust and chemicals will likely kill you before retirement.

These jobs pay a lot because high pay is the only way they can convince people to do them. Nobody would risk death and abandon their families for $30k a year.

[Bluenorthwest]

4. In Australia, full time minimum wage work pays 30K a year

$15.51 an hour is their min hourly.

[plumbob]

6. It's real, just like the oil boom in west Texas in the late 70s.

But look at the side-effects: you're gouged for every dime - he paid $16,000 for engine enhancements? And paid $55,000 for a Chevy to begin? $44,000 for a motorcyle? Housing is also sky-high in places like this.

In 1974, I paid $1500 for an old company house off a Shell lease and had it moved to a lot I bought for $2300. I spent $2000 on the move and setting it down, with about $3000 to cover the foundation and setting an electric meter and water meter. Less than $9,000 invested for a 2200 sq ft 4 bedroom 2 bath house with asbestos siding and asphalt shingles sitting on a lot 8 miles from town. I rented it for $500 a month that year.

The next year, the rig count doubled, and thousands of new people flooded into town. I began charging $2500 per month for rent.

By 1978, I was renting each bedroom separately for $1250 per month, and had a pickup camper sitting on the ground outside for $600 a month with the use of one of the bathrooms inside.

In 1980, the rig count, which had doubled and doubled again to 4000+, took a dip to 3800. As a native, I knew the end was near, so sold the house to one of the renters for $138,000.

I bought it back in 1984 after the crash for $20,000. It rents now for $2100 a month.


So all of those roughnecks making $100k a year came away with nothing to show. Heck, I was making $83,000 as an inventory clerk at the time without ever leaving the office.

When this guy gets hurt, and he will, he can sell his few possessions for a penny on the dollar and go back home to live with family.

What's sad is that they always think this is virtue of some kind and will last forever.


I personally wish investment bankers were guaranteed the same fate - they deserve, but this kid really doesn't.

[dipsydoodle]

8. My sister lives in Perth WA

and years ago the staff clearing the plates in the canteens at the mines were on AUS$ 50,000 pa. On the basis of that the figure is probably accurate.

Nb : that's not US$s

[MineralMan]

3. It's probably real. You wouldn't like the job, though,

and probably aren't qualified to do it, either. Some high-risk, remote jobs pay a lot of money. Getting one of those jobs isn't so easy, though.

[Fumesucker]

5. I know people that are making over $100k on oil rigs..

You have to have the contacts and it's by no means just a grunt type of job, physically demanding but also requires a certain kind of smarts.

It's 12 on 12 off for thirty days, off thirty days.

Edited for redundant redundancy

[Enrique]

7. the labor market apparently works in Australia to some extent

I'd like to see a comparison to other countries, like Chile and Bolivia and China, and even the U.S. My guess is that the game is rigged in some of those countries so that even with the high demand for labor, it somehow doesn't translate into such high wages.