Rio Tinto Coal Australia's Hail Creek Mine has formed a strategic partnership with CQU Mackay in a bid to help counter the skills shortage.

The 2 organisations are offering to fund 7 scholarships to encourage local people of all ages to undertake undergraduate programs at CQU Mackay.

General Manager of Hail Creek Mine, Andrew Woodley and Head of Mackay Campus, Dr Trevor Davison work together to combat the skills shortage

The Hail Creek Mine's Community Development Fund is partnering with CQU Mackay to provide the $28,000 scholarship program.

Hail Creek Mine General Manager Operations, Andrew Woodley, said the scholarships are aimed at encouraging local people to undertake study in Mackay to increase and retain the number of skilled people in the region.

"Too often people leave Mackay to undertake study and that skills base is lost from the area as many don't return," Mr Woodley said.

"The Mackay region is currently facing a skills shortage in many disciplines and this is having an impact on local businesses who can't find skilled personnel for professional and trade positions.

"We are encouraging all prospective students in the Mackay Whitsunday area, which includes those in the mining areas of Moranbah, Dysart and Middlemount, to apply for these scholarships and help address the skills shortage."

The 7 scholarships are worth $4000 each and will be made available for first-year students enrolled in a program in either: Engineering, Science, Business, Nursing or Information Technology.

"We expect that at least 4 of the scholarships will be awarded to students studying engineering or science, with the remaining 3 scholarships provided to the next best applicants in the other disciplines," Mr Woodley said.

CQU Mackay Head of Campus, Dr Trevor Davison, said the initiative was designed to increase the pool of qualified specialists who are locally trained and qualified.

"We want to encourage enrolment in a tertiary institute in Mackay so that students are more likely to fulfil their education here and remain in the region for work opportunities," Dr Davison said.

"This region is undergoing huge growth at the moment and we see this strategic partnership as a way to help keep pace with this growth."

Dr Davison said a selection committee made up of representatives from the Hail Creek Mine, CQU Mackay and the Mackay Whitsunday community will be set up to consider all applications.

Mr Woodley said the initiative built on a series of educational partnerships that Hail Creek Mine has established.

"We already have a range of local partnership programs in place to encourage further skilling and employment opportunities, such as Mirani State High's Kickstart to Literacy and E=MC2 programs, the MAIN Care Program, MRAEL's Work Readiness Program and the REA Engineering Hubs at various local high schools," Mr Woodley said.

"During their scholarship, the 7 successful applicants will have the opportunity to visit Hail Creek Mine and those who are high achievers and deemed suitable will be offered end-of-year vacation work at the mine.

"We look forward to this scholarship program being highly successful, and the start of other further alliances between us and CQU Mackay."

The scholarships will open on October 29. Applications will close on Friday November 23 and short-listing will start in early December.

The scholarships will commence in 2008, with 2 $2000 instalments paid over 2 years.

Application forms are available at http://www.cqu.edu.au/scholarships