Transcript The Chamber of Minerals and Energy of WA Challenges in the

The Chamber of Minerals and Energy of WA
Resource Sector Engagement
The Pilbara Region
Presented by Amy Ruddock
Executive Officer – North West / PICC
Regional Perspectives Conference
June 2008
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Our Business
• CME is the peak resources industry representative body in Western Australia
• The role of CME is to lead the way in having the resources sector recognised
as a highly valued and strongly supported member of the Western Australian
community
• In order to achieve this, CME strives to:
- represent the views and needs of our industry members;
- act as a powerful industry voice to Government;
- provide an avenue by which members can work together to advance and promote the
interests of the membership; and
- assist the community in understanding the unique ability of our industry to contribute
to their well being.
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The Western Australian Resources Sector
Western Australia’s resources sector accounted for:
• $53.1 billion in production value *
• 86% of the State’s merchandise export income *
• Around 30% of WA’s Gross State Product *
• $2.2 billion in State royalties *
• Direct employment of 62,000 *
• Direct and indirect employment totalling 244,000 *
• More than A$102 billion of resources projects are either
underway or planned in WA *
Photo courtesy of BHP Billiton Iron Ore
* 2007 Department of Industry and Resources statistics
* 2006/2007 Department of Industry and Resources statistics
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WA’s Resource Sector: a long-term growth story
Value of resource production ($A):
•
1985/86
$5.2 billion
•
1995/96
$15.3 billion
•
2006/07
$53.4 billion
Source: DoIR 2006, 2007
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WA at a National Level
The WA resources sector accounted for:
• 50% of Australia’s total value of mineral and petroleum
sales *
• 71% of Australia’s oil and condensate production *
• 37% of Australia’s total merchandise exports *
• 49% of Australia’s mineral exploration expenditure *
• 67% of Australia’s petroleum exploration expenditure *
• 62% of total national mining investment *
Source: DoIR 2007
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WA and the World Commodities Market
WA output (by quantity) as a share of
the world market for:
• Tantalum
• Garnet
• Zircon
• Rutile
• Iron ore
• Ilmenite
• Alumina
• Nickel
• Diamonds
• LNG
• Gold
• Salt
61%
49%
27%
17%
18%
16%
15%
13%
11%
7%
6%
4%
Source: DoIR 2007
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WA’s Resource Regions: the mainstay of
the State’s regional economic growth
North West
Petroleum, iron ore, diamonds, salt, manganese, copper,
gold
Mid West
Gold, nickel and cobalt, heavy mineral sands, petroleum,
copper, zinc, lead, salt, iron ore
Goldfields/Esperance
Nickel, gold, Goldfields Gas Transmission
South West
Alumina, coal, heavy mineral sands, tantalite, spodumene,
tin, Dampier Bunbury Natural Gas Pipeline
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Pilbara Region
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•
The Pilbara is the leading resources
sector region in Western Australia,
accounting for 63% of the value of WA
minerals and energy production in
2007
•
Value of minerals and petroleum sales
in 2007 was $33.3 billion
•
Pilbara onshore committed projects:
~$23.8 billion
•
Pilbara offshore committed projects
(Carnarvon Basin): ~$6.06 billion
Photo courtesy of Woodside Energy Ltd
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Kimberley Region
•
•
Resources have a long history in the Kimberley
•
1885 discovery of gold near Halls Creek
•
1951 first shipments of iron ore from Cockatoo
Island
•
1980s diamond and zinc/lead deposits were
discovered and mines commissioned at Argyle
(diamonds) and Cadjebut (zinc/lead)
Resource output continues to grow to a new level
– Currently 8% of GDP
•
Argyle Underground Diamond Mine
•
Browse Basin
•
West Kimberley Power Project
•
Value of production in 2006/2007 was $990 million
Photo courtesy of Argyle Diamond Mines Pty Ltd
Source: Minerals Council of Australia 2007
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Resources Sector Role in Regional Development
•
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The resources sector plays a major part in the development of regional
infrastructure
•
Service towns, transport and essential services
•
Key developments – Dampier to Bunbury Natural Gas Pipeline, the Goldfields Gas
Transmission and the CY O’Connor Mundaring-Kalgoorlie water pipeline
•
Resource companies themselves are significant providers of physical
infrastructure including water, electricity, ports, rail, roads and airports
•
Social infrastructure provided by resources companies includes health care,
education and training, housing and community development
•
Better community facilities attract and retain skilled workers to live in
regional areas
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Challenges: Community Engagement
The Resources Sector must be seen as
adding value to the communities in
which it operates. To do this the
Resources Sector in WA will continue to:
•
Consult and work with community to
achieve positive outcomes for all
stakeholders
•
Support community development in ways
that add unique value
CME - Pilbara Industry Community Council
(PICC)
- NGO Industry Environment Forum
(NIEF)
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Photo Courtesy Goldfields Football
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Challenges: Indigenous Employment
It is important that the resources sector
continue to:
•
deliver sustainable benefits for
Indigenous people
•
be a key employer of Indigenous people
in WA
•
strive to achieve equitable Indigenous
employment targets
•
Provide cross cultural training for
industry employees
CME - Indigenous Participation in Western
Australia’s Resource Sector
publication
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Photograph Courtesy of Newmont Asia Pacific
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Pilbara Industry’s Community Council (PICC)
•
A commitment by the major resources industry partners (BHP Billiton Iron
Ore; Rio Tinto Iron Ore; Woodside; Chevron; North West Shelf Venture and
Fortescue Metals Group) to work in collaboration with all levels of
Government to develop a shared vision and strategy to achieve two specific
outcomes:
• Increase Indigenous participation in employment in the Pilbara
• Sustainability of Pilbara towns
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PICC Overview
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•
PICC members will be seeking to co-ordinate existing and proposed Industry,
community and Government programmes designed to address PICC’s two
core objectives.
•
PICC is a unique concept wherein Industry has joined forces with a view to
improving the outcomes of the significant community investment made
each year
•
Government involvement in the PICC initiative is vital to ensure that both
sectors work together to achieve the best possible outcome.
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Challenges: Infrastructure
A key restraint on the growth of the
Resources Sector in WA is the
investment in much needed ‘hard’
and ‘soft’ infrastructure.
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•
Hard infrastructure (ports, rails, roads,
etc.) is critical to take advantage of
the booming growth in the industry
•
Soft infrastructure (culture, services,
lifestyle, attractions, etc.) is critical in
attracting and retaining the right
people as well as generating the right
atmosphere for balanced growth
Photo courtesy of WESTNET RAIL
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State Development Framework
Growth Outlook Study
•
•
Water
People
• Direct labour
• Indirect labour
• Support
•
Energy
• Electricity
• Gas
• Diesel
Photo Courtesy of Western Power
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Challenges: Occupational Safety and Health
The WA Resources Sector is a world
leader in best practice safety and health.
• For the sector to continue to
grow, Health and Safety must
continue to be a key focus area.
• Safer, healthier, and more
effective practices and
frameworks must continue to be
developed by the sector.
CME
- Safety case exemplar project
Photograph Courtesy Kalgoorlie Miner
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Challenges: Environment
Environmental conservation and
management needs to ensure
sustainability and shared benefits from
the rich natural resources of Western
Australia
•
•
Environmental management must be
smarter and more effective
The Minerals and Energy Sector must
continue to put significant resources in
researching environmental impact and
rehabilitation, as well as implementation
of best practice management principles
CME – Greenhouse gas reference group
- Response to Garnaut
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Photo Courtesy of HWE Mining
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Challenges: Skills Shortage
The Resources Sector in WA is
fortunate to have some of the best and
brightest employees, however, there is
a significant shortage of skilled
workers in the sector.
• The Resources Sector must
continue to attract and retain the
best and brightest
• The Resources Sector will have to
explore new ways to do this
CME - Changes to Industrial Training
Act (1975
CME Teachers Tour April 2007
- Immigration research
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Challenges: Project Approvals
•
Effective project approvals are
necessary to maintain West
Australian pre- in an international
competitive market place
CME - Project approval advocacy
report – APPEA
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Photo Courtesy of Barrick (Kanowna) Ltd
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Challenges - Sustainable Resource Sector
for Western Australia to be a global leader in minerals research, development and
post graduate education.
• Enhance capacity and capability
• Establish strategic minerals group to
provide vision, strategy and policy
• Align post graduate education with
MaTRIX research outcomes
• Guiding collaboration between
industry, government, and research
organisations
• Promote the State’s research
capability
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Photo Courtesy of Barrick (Kanowna) Ltd
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For further information please contact
<Amy Ruddock>
The Chamber of Minerals and Energy of Western Australia Inc
Locked Bag N984, Perth WA 6844
Telephone: (08) 9325 2955
Facsimile: (08) 9221 3701
Email: [email protected]
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