Department for Manufacturing,

Innovation, Trade, Resources and Energy

Mining and Petroleum Services

Centre of Excellence

RESA’s Productivity Breakfast

17 October 2013

www.dmitre.sa.gov.au

South Australian Mineral Exploration Licences 2013

January 2004

Applications Granted Renewed Transferred Surrendered Current Total

(Active) Area

Exploration Licences

11 6 5 Nil 2 972 421,923.00 sqkm

Mineral Claims

3 4 NA NA NA 109 16,874.58 Ha

Mineral Leases

Nil Nil Nil Nil Nil 896 99,627.61 Ha

Extractive MLs

Nil Nil Nil Nil 1 706 16,271.86 Ha

Misc. Purposes Licences

Nil Nil Nil Nil Nil 104 12,086.16 Ha

Retention Leases

Nil Nil Nil Nil Nil 40 47,896.70 Ha

September 2013

3

South Australian Mineral and Petroleum Exploration

Expenditure 1993/94 – 2012/13

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

Minerals Petroleum SA % share of Australia

$ M

illio

ns

Minerals and Petroleum exploration for 2012/13 was $616.7m

($230.4m – Minerals and $386.3m – Petroleum)

0

200

400

600

800

1000

1200

1400

1600

1800

4

Capital Expenditure – Investment Remains Strong

Private New Capital Expenditure for 2012/13 totalled $1599 million,

$517 million (47.8%) higher than for 2011/12 totalling $1082 million.

Private New Capital Expenditure for the 2012/13 reached the second highest

expenditure on record and the highest expenditure since pre-GFC 2007/08

when Capital Expenditure on Mining in South Australia reached a record

$1621 million.

$m

illio

ns

Kanmantoo

Honeymoon

Beverley North

Jacinth-Ambrosia

Prominent Hill

Cairn Hill

Angas

Beltana

Iron Chieftain White Dam

Prominent Hill Ankata

Challenger

Peculiar Knob

Beverley

South Australian Mineral Production 2000 – 2012

0

1

2

3

4

5

6

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

$ B

illio

ns

Copper Hematite Magnetite Gold Uranium Coal Other Metallics Industrial Construction Gemstones

Challenger

Prominent Hill

Kanmantoo

Jacinth-Ambrosia

PACE 2020

PACE

Cairn Hill

Angas

Beltana

Beverley North

Honeymoon

Iron Chieftain

Peculiar Knob

White Dam

South Australian Mining Industry Employment

Actual and Projected 2004 - 2030

NOTE: ABS data and RESA data are obtained through different survey and sampling methodology.

0.000

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

15,043 from current operations

17,000 estimated for new mines

32,000 total estimated

50,000 total estimated

Source: ABS Labour Force, Australia, Cat .No. 6291.0.55.003, May 2013 – annual average

RESA Workforce Scoping Report 2013-20 from current operations

RESA 2020 and 2030 estimated jobs to support construction and production of new mines

Ave

rage

Nu

mb

er o

f P

eop

le

CURRENT WORKFORCE (ABS Figures):

ABS figures show the number of people employed in the mining sector has risen from an annual

average of 3,600 in 2002 to 12,200 in the 12 months to August 2013.

RESA FORECAST:

~15,000 current operating operations workforce to 2020

17,000 additional employees required by 2020 for new mines

TOTAL 32,000 employed in mining sector by 2020

TOTAL 50,000 employed in mining sector by 2030

7

Background

In June 2013, in keeping with the Government's vision to establish

South Australia as a minerals and energy services centre for

Australia, the Premier announced the creation of a Mining and

Petroleum Services Centre of Excellence (COE)

The COE:

• builds on commitment by the South Australian (SA) Government to

unlock SA’s mineral and energy potential

• supports the Government’s strategic priority: to spread the benefit

from the sector’s growth by developing local supply chains and

high value added products and services;

• will bring together the resources sector, researchers and service

providers to generate innovative ideas that build on areas of

existing excellence or comparative advantage for the State.

• will be driven by resources industry demand and be overseen by

an Advisory Group to ensure that the focus on industry led

initiatives is maintained.

8

Purpose of the COE

To bring together resource companies, research institutions

and services businesses to foster and coordinate innovation

and applied research initiatives, to benefit the resources

sector and service providers.

To drive new and innovative ways of overcoming barriers to

resource and energy growth, promoting new ways of doing

things which support unlocking South Australia’s mineral and

energy wealth.

The COE will focus on collaboration and partnership to

achieve its purpose.

Its ultimate aim is to support the development of local supply

chains and see South Australian based suppliers providing

high value added products and services.

9

Objectives

1. Actively facilitating dialogue between resource companies, research institutions and services businesses, including indigenous enterprises and those

located in the Upper Spencer Gulf.

2. Identifying and

supporting* strategic

projects that:

*Support can take the form of seed

funding or the contribution to salaries of SA Government

project staff who are dedicated to

projects within the COE

Project Example

A

Develop SA’s reputation in a field of established excellence, or one in which SA has a clear comparative advantage

• Supporting research institutions in specialist areas, such as Geostatistics

B Link the resources sector to applied research, capturing knowledge-intensive activity in SA

• Deep Exploration Technologies CRC

C Link services companies with resources companies

• ICT Roadmap for Minerals and

Energy Resources Project

• Unconventional gas roundtable

D Connect indigenous enterprises to the resources sector

• Advancing the regional

procurement strategy

E Find local innovative solutions to identified industry-wide need

• Onshore oil and gas training

facility at Tonsley Park

F Increase competitiveness and reduce cost for the resources sector

• Unconventional gas roadmap

G Assist SA unlock its mineral and energy potential

• Supporting the Schools of Petroleum Engineering and Management and the Centre for Mineral Exploration Undercover

Functions of the Advisory Group

10

Function

1 Partner with industry and research institutions to achieve the listed objectives

2 Create a forum in order to identify and articulate industry needs and supplier

capability, so customer and suppliers can share information

3 Project identification, scoping and validation

4 Project prioritisation

5 Project management, facilitation and coordination

6 Provide seed funding

7 Leverage financial contributions from other sources including the federal

government

8 Leverage existing forums and engagement opportunities

9 Collaborating with other relevant national institutes

10 Communications, advocacy and the promotion as South Australia as a Centre of

Excellence in Mining and Petroleum Services. Outreach to other institutions

within SA relevant to the resources industry.

11

Criteria to guide Advisory Board decision making

To limit COE involvement in areas of little benefit or which industry

should be solely funding/driving itself, any projects will need to be

consistent with COE objectives. Projects will therefore need to:

1. Build on existing SA comparative advantage, either in terms of

research, industry or natural endowments;

2. Have industry funding or in-kind support;

3. Have material impact and be identified as priority for industry;

4. Solve problems which industry can’t solve itself, for reasons such

as incomplete or asymmetrical information or common problems;

5. Have multiple partners and require a collaborative approach; and

6. Be publicly reportable.

These criteria will determine which projects become part of the COE

work program and also which receive seed funding.

Measuring Outcomes

12

The ultimate aim of the COE is to support the development of local

supply chains and see South Australian based suppliers providing high

value added products and services.

At this point, there is little reliable data which can be used to measure

the number of suppliers to the minerals and energy industries in South

Australia, their penetration into national and international supply chains,

their growth and their product or service type.

As such, the COE will support the development of a Supplier

Scorecard, collecting survey and other data, to ensure a baseline of

accurate information.

The Scorecard will be repeated annually to ensure that the outcomes of

the COE are able to be measured.

In addition, the COE will have leading indicators, such as reports on the

number of activities or projects it is supporting or overseeing and their

estimated impact on supply chains in South Australia.

Initial Key Project Outcomes

13

It is anticipated that the following will be amongst the first projects in the

COE workplan:

1. established a deep gas service and training hub at Tonsley Park,

with partners such as the major oil companies and service sector

companies;

2. completed Australia's first comprehensive mining and ICT roadmap

in conjunction with the Australian Information Industry Association

and CSIRO;

3. consolidated the Australian Drilling School with the DET and the

CRC at Brukunga;

4. participated in at least two CRC or innovation precinct bids with local

institutions and companies;

5. established national centres in specialised strengths, such as mining

and petroleum geostatistics and deep gas and geothermal drilling

technology; and

6. completed an online mining and energy innovation interconnector in

conjunction with the Australian Academy of Technology, Science and

Engineering.

• To address industry needs for

a high quality labour force

• Identified as industry priority

through ‘Unconventional gas

round table’

• Will establish an industry

training centre in partnership

between industry and

government

14

On-shore oil and gas skills training centre

Methodology

15

ICT Roadmap for minerals and energy resources

Evidence-based foresighting

Major trends that will impact the minerals and energy resources

industry through 2025

Technology model

ICT technologies that address business drivers and solve major business pain points

South Australia capabilities

ICT, academia, resources, other industries

Exploration Approvals Design Construction Operations Rehabilitation

Business model

Value chains Business drivers

“Pain points”

Broad set of conceptual scenarios

The role of ICT in developing South Australia’s mining and

energy resources in 2025

Evaluating proposal for a multi-user, multi-faceted training platform

that would

• leverage existing comparative advantages of Brukunga mine site

remediation program - a national centre for environmental impact

monitoring

• provide a residential mine skills centre offering ‘full value chain’

experiential training

16

Brukunga Mine Skills Centre – feasibility phase

Industry Participation Office

PACE

Manufacturing

DEVELOP

ICNSA

CONNECT

MIPO Mining Industry Participation

Office

FORECAST

Industry

Participation

Policy

Review

results of

procurement

packages

Improve

industry

awareness

Assist with

prequalification

Match local

suppliers to

project

packages

Identify

Companies to

be developed

Government

improvement programs

aimed at developing

capability

Promote

clustering

National

Water Sector

Manager

Supply chain

Gap Analysis

Policy

Development Centres of

Excellence

Research &

Development

Attract

Investment

"The Journey to "Be Ready"

3 complementary

functions

MIPO identifies

problems in the

value chain

SARIG 2020

DMITRE online web application for geological and geospatial data

• Example of government using location aware information to inform

service design and delivery

• Integration of over 400 spatial datasets from across government and

the private sector

• Winner of Geospatial Category in the 2013 Australian Government

Excellence in eGovernment awards which recognise and promote

excellence, innovation and professionalism in the use of ICT

• Search, view and download information relating to minerals and

mining in South Australia including:

• tenement details

• mines, advanced exploration projects and mineral deposits

• geological and geophysical data

• publications and reports (including company reports)

18

19

Application Status Received and Validated: application has been received and determined to be valid in accordance with the Mining Act. Assessment: DMITRE and external agencies: DMITRE technical assessment of valid applications, including consultations with other Government Agencies, and formulation of licence conditions. Prepare Offer: DMITRE Mineral Tenements preparation of Letter of Offer, including approval from the Minister's delegate. Offer Made: offer of a mineral exploration licence has been made and is being considered by the applicant. Outcome: the offer of a mineral exploration licence (EL) has been accepted by the applicant and will be granted on completion of statutory advertising (28 days) and DMITRE administrative procedures.

Process Complete

In Progress

Information Requested or Pending

Process has not commenced