Update on WA s Resources Sector

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1 Update on WA s Resources Sector Dr Tim Griffin Deputy Director General Department of Mines and Petroleum Latin America Down Under - Perth, May 2016

2 Our economy relies on the resources sector Industry contribution to Western Australia s GSP

3 Value of minerals and petroleum

4 Our economy relies on the resources sector Mining Construction Manufacturing Transport, postal and warehousing Professional, scientific and technical services Health care and social assistance Retail trade Financial and insurance services Administrative and support services Public administration and safety Education and training Agriculture, forestry and fishing Wholesale trade Electricity, gas, water and waste services Rental, hiring and real estate services Accommodation and food services Other services Information media and telecommunications Arts and recreation services Industry contribution to Western Australia s GSP $ Billions

5 Our business

6 Our Organisation 6

7 WA's Fraser World Ranking Western Australia the world s most attractive mining investment destination The Fraser Institute ranked WA as the most attractive jurisdiction in the world for mining investment in Top Australian State for government policy Policy Perception index Best practice mineral potential Investment attractiveness Geoscience database 21 Fraser Institute s Policy Potential Index (Australian States only) Fraser Institute ranking SA SA SA SA SA NT WA WA WA WA WA 2 QLD TAS NT NT WA SA SA SA SA SA 3 TAS NT WA WA NSW NSW NT NT TAS NT 4 VIC WA NSW NSW NT TAS VIC QLD NT QLD.. 7 WA

8 Communities expect strong regulation Governments change approval and compliance requirements: community expectations changing technology new resource opportunities In WA the private sector funds mineral and energy exploration and development A downturn in commodity prices and a withdrawal of international funds for high risk resource investments has a major impact on the funds for exploration and development on the royalty return and taxation to Government

9 Administering the resources sector DMP provides approvals for, and assesses compliance of, minerals and energy resources projects. This is critical to a successful and sustainable sector. Industry wants Secure title to the resources they discover and develop. Clear and consistent regulatory requirements including the royalty/tax regime. Government ensures Workers and community are safe. The community gets value through royalties. Transparent and consistent policy settings that promote economic activity. Environment, cultural, and community values are protected.

10 Cooperation & collaboration across Govt The Department of Mines and Petroleum works closely with other agencies and in many cases we have interagency agreements 10

11 Our approach T Transparency Making sure our processes are open to public scrutiny C Clarity Information and guidelines are easily accessible and in a useable form for industry and general public E Equity We treat everybody equally. There is no special treatment

12 Reducing red tape and encouraging investment DMP is committed to a series of initiatives and reforms that reduce red tape and encourage investment. Our aim is to boost the efficiency of existing regulations and remove impediments to development, whilst maintaining appropriate safety and environmental safeguards. Key examples include the Mining Rehabilitation Fund, the Reforming Environmental Regulation program and safety reform.

13 Community engagement Industry must achieve a social licence to operate DMP and government must be seen and valued as robust regulators Industry and government need to be empathetic and respond to queries promptly 13

14 Emerging resources technologies Western Australia is in an ideal position to build on the innovation from the resources sector and become a major research hub for Asia and the World: Use of remotely controlled machinery and driverless equipment Remote mine management from Perth - integrated mining, railway and port operation Carbon Capture and Storage (CCS) - largest project in the world at Gorgon Floating Liquefied Natural Gas (FLNG) - the first in the world at Prelude Shale and tight gas - current focus on domestic gas supplies Heap cyanide leaching and carbon-in-pulp gold extraction Use of saline water in mineral processing Renewable energy supplies 14

15 More information Online Applications Online Tracking Online Databases Mineral deposits Mining titles Geoscience publications Exploration results Policy documents Resource Information GeoVIEW MINDEX

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