South Australia s Mining and Petroleum Services Centre of Excellence

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1 South Australia s Mining and Petroleum Services Centre of Excellence 10th GMUSG / SACOME Annual Resources Industry Conference & Trade Expo Whyalla 4 September 2014 Paul Goiak Director, Industry Participation

2 South Australia Economic Priorities Economic Priority 1 Unlocking the full potential of South Australia s resources, energy and renewable assets opportunities for mining services companies Economic Priority 4 The Knowledge State attracting a diverse student body and commercialising our research co-investment between local and global industry our research institutions will drive development a place of knowledge creation and innovation 2

3 South Australia Economic Priorities Economic Priority 6 Growth through innovation adopt new ways of doing things use advanced technologies build globally competitive high value firms Economic Priority 10 South Australia s small businesses have access to capital and global markets small businesses are the most effective engine for job creation continue to accelerate the growth and transition globally competitive opportunities 3

4 South Australian Resources Industry Indicators $647.6 million EXPLORATION EXPENDITURE /14 Petroleum ($531.3m) and Minerals ($116.3m) $1.8 billion new CAPITAL EXPENDITURE 12mth to June 2014 ~$30 billion of potential capital for Minerals and Energy projects in the Major Developments Directory RECORD HIGH $7.0 billion resources PRODUCTION Minerals ($5.4 b) and Petroleum ($1.6 b) RECORD HIGH $4.8 billion EXPORTS 12mth to June 2014 Minerals ($4.6 b) and Petroleum ($0.2 b) RECORD HIGH 39% of South Australia s total exports ($12.4 b) $291.3 million ROYALTIES 2013/14 Minerals ($157.4 m) and Petroleum ($133.9 m) RECORD HIGH 16,208 people EMPLOYED May 2014 more than double - 6,641 ten years ago RECORD HIGH 4

5 Industry Participation Office Strategic Capability Development Understand what the customer wants listen to industry Understand the demand forecast and business plan for goods and services Customer will want to do business if you: Lower Cost Increase convenience Customise a solution Value-add before or after production phases 5

6 What does Industry Participation Office do? Growing Supply Chain Involvement for local SMEs Industry Participation Office (IPO) Builds capabilities of SA companies allowing them to increase participation in local, national and international resources supply chains. This is done by Forecasting opportunities in the resource and developing business cases Developing supplier capabilities and future businesses Connecting suppliers with procurement packages 6

7 Industry Participation Office Review results of procurement packages Match local suppliers to project packages Promote clustering Pre-qualification Identify companies to be developed ICNSA CONNECT PACE Manufacturing DEVELOP Capability development programs National Water Sector Manager Supply chain Gap Analysis MIPO FORECAST Attract new competencies Improve industry awareness Policy Development Centre of Excellence Research & Development Strategic Capability Development 7

8 Example: Supply Chain Gap Analysis 8

9 Mining and Petroleum Services Centre of Excellence (CoE) Objective Supporting the development of South Australian capabilities that assist local supply chains to compete nationally and globally, providing high value added products and services to the resources sector 9

10 Criteria for Funding Project Build on existing SA comparative advantage, either in terms of research, industry or natural endowments Have industry funding or in-kind support Have material impact and be identified as priority for industry Solve problems which industry can t solve itself, for reasons such as incomplete or asymmetrical information or common resource problems Have multiple partners and require a collaborative approach, and Be publicly reportable 10

11 Projects to date The following projects are being supported by the CoE: Onshore Petroleum Centre of Excellence training facility Australia's first comprehensive ICT Roadmap for Minerals and Energy; Brukunga Mine Skills Centre Feasibility Study; Remote Mining Operations Centre; Chair of Geo-statistics and Qualitative Geology; South Australian Research Fellowship in Unconventional Energy Resources The Real-Time Drill Site; and Australian Copper/Uranium Transformation Research Hub 11

12 New Onshore Oil and Gas training facility at Tonsley Source: Photograph, courtesy of TAFE SA 12

13 ICT Roadmap for Minerals and Energy 13

14 ICT Roadmap for Minerals and Energy Objective - to determine current & future role that SA ICT industry can play to assist productivity & innovation in the minerals & energy sectors Published the roadmap reports Holding a series of roundtable events to bring together experts from the minerals and energy sectors, ICT industry, METS & defence sectors and research institutions Funding project manager and events 14

15 Remote Mining Operations Centre Implementation of a pilot project to determine the feasibility of a collaborative, open platform for the minerals and energy sectors $383k funding plus in-kind support from Oz Minerals & HP 15

16 Future Projects Can be generated by SMEs, the resources sector or researchers Can evolve through existing process Can be brand new ideas Need to meet CoE criteria Need to leverage SA comparative advantage 16

17 Remote Operating Centre (ROC) Collaboration Project Oz Minerals IPACS UniSA HP AIIA ROC Department of State Development CoE Development of a commercial, sustainable ROC on a collaboration platform that fosters an ICT innovation ecosystem for the resources industry Funded by Mining and Petroleum Services Centre of Excellence 17

18 Disclaimer The information contained in this presentation has been compiled by the Department of State Development and originates from a variety of sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for general information only and does not purport to be a professional advice. No warranty, express or implied, is given as to the completeness, correctness, accuracy, reliability or currency of the materials. The Department of State Development and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the information for any loss or damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of these materials. The Department of State Development reserves the right to update, amend or supplement the information from time to time at its discretion. 18

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