Mining and Petroleum Services Centre of Excellence
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- Emery Farmer
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1 Department for Manufacturing, Innovation, Trade, Resources and Energy Mining and Petroleum Services Centre of Excellence RESA s Productivity Breakfast 17 October
2 South Australian Mineral Exploration Licences 2013 Applications Granted Renewed Transferred Surrendered Current Total (Active) Area Exploration Licences Nil , sqkm Mineral Claims Mineral Leases Extractive MLs Misc. Purposes Licences Retention Leases 3 4 NA NA NA , Ha Nil Nil Nil Nil Nil , Ha Nil Nil Nil Nil , Ha Nil Nil Nil Nil Nil , Ha Nil Nil Nil Nil Nil 40 47, Ha September 2013 January 2004
3 $ Millions South Australian Mineral and Petroleum Exploration Expenditure 1993/ /13 Minerals and Petroleum exploration for 2012/13 was $616.7m ($230.4m Minerals and $386.3m Petroleum) % % % % % % % Minerals Petroleum SA % share of Australia 3
4 $millions 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. Jacinth-Ambrosia Kanmantoo Prominent Hill Cairn Hill White Dam Honeymoon Beverley North Prominent Hill Ankata Iron Chieftain Beverley Challenger Beltana Angas Peculiar Knob 4
5 $ Billions South Australian Mineral Production Honeymoon 6 Jacinth-Ambrosia Beverley North Kanmantoo 5 PACE 2020 Angas White Dam Iron Chieftain 4 Cairn Hill Prominent Hill 3 Beltana 2 Challenger PACE 1 Peculiar Knob Copper Hematite Magnetite Gold Uranium Coal Other Metallics Industrial Construction Gemstones
6 Average Number of People South Australian Mining Industry Employment Actual and Projected 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 RESA FORECAST: ~15,000 current operating operations workforce to ,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 ,000 estimated for new mines 32,000 total estimated 50,000 total estimated ,043 from current operations Source: ABS Labour Force, Australia, Cat.No , May 2013 annual average RESA Workforce Scoping Report from current operations RESA 2020 and 2030 estimated jobs to support construction and production of new mines NOTE: ABS data and RESA data are obtained through different survey and sampling methodology.
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. 7
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. 8
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. Project Example 2. Identifying and supporting* strategic projects that: A B C Develop SA s reputation in a field of established excellence, or one in which SA has a clear comparative advantage Link the resources sector to applied research, capturing knowledgeintensive activity in SA Link services companies with resources companies Supporting research institutions in specialist areas, such as Geostatistics Deep Exploration Technologies CRC ICT Roadmap for Minerals and Energy Resources Project Unconventional gas roundtable *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 D E F G Connect indigenous enterprises to the resources sector Find local innovative solutions to identified industry-wide need Increase competitiveness and reduce cost for the resources sector Assist SA unlock its mineral and energy potential Advancing the regional procurement strategy Onshore oil and gas training facility at Tonsley Park Unconventional gas roadmap Supporting the Schools of Petroleum Engineering and Management and the Centre for Mineral Exploration Undercover 9
10 Functions of the Advisory Group 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. 10
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. 11
12 Measuring Outcomes 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. 12
13 Initial Key Project Outcomes 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. 13
14 On-shore oil and gas skills training centre 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
15 ICT Roadmap for minerals and energy resources Methodology Evidence-based foresighting Major trends that will impact the minerals and energy resources industry through 2025 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 Technology model ICT technologies that address business drivers and solve major business pain points Exploration Approvals Design Construction Operations Rehabilitation South Australia capabilities ICT, academia, resources, other industries 15
16 Brukunga Mine Skills Centre feasibility phase 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
17 Industry Participation Office 3 complementary functions Review results of procurement packages Match local suppliers to project packages National Water Sector Manager Industry Participation Policy Identify Companies to be developed Supply chain Gap Analysis ICNSA CONNECT Policy Development MIPO Mining Industry Participation Office FORECAST Centres of Excellence "The Journey to "Be Ready" Improve industry awareness PACE Manufacturing DEVELOP Research & Development Attract Investment Assist with prequalification Promote clustering Government improvement programs aimed at developing capability MIPO identifies problems in the value chain
18 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 19
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