Shire of Roebourne Local Planning Strategy

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy1 Introduction1.1 This paperThis Technical report 1: Economic Development Strategy is a preliminary paper in a suite of five reportsto inform the preparation of the Local Planning Strategy (LPS) for the Shire of Roebourne. There isplanned to be a series of consultations and further information gathering through the course of theformulation of the LPS.The Economic Development Strategy, as a component of the LPS and as a Strategy in its own right, willbe refined and finalised in the course of this process.The scope for the five technical reports was identified through an Information Gap Analysis prepared byMike Allen Planning in June 2012. This means that the Technical Reports do not comprehensivelyaddress all of the issues that will affect the Shire’s future; instead they are designed to complement thewide body of research and planning that has already been undertaken.1.2 History and overviewThe Shire of Roebourne is located in the Pilbara region of northern Western Australia, about 1,200kilometres north of Perth. The Shire of Roebourne is bounded by the Indian Ocean in the north and west,the Town of Port Hedland in the east, and the Shire of Ashburton in the south.The original inhabitants of the Roebourne area were the Ngaluma and Yindibarndi Aboriginal people.European settlement dates from the 1860s, with land used mainly for pastoral purposes (sheep grazing).Some growth took place in the late 1800s and early 1900s, particularly in Cossack and Point Samson.The population then declined. Significant development did not occur until the late 1960s when iron oredeposits and offshore natural gas fields were discovered. The townships of Dampier, Karratha andWickham were established to house mining and transport workers, with Dampier established as a port.Growth took place from the 1970s, with the population of the Shire increasing from about 10,000 in 1971to 17,000 in 1991. This growth was driven by the North-West Shelf Gas joint venture, with Karrathafunctioning as a service centre for on and off-shore oil and gas facilities. The population declined slightlyduring the early 1990s, falling to about 15,000 in 1996. From the late 1990s the population increasedsubstantially, rising to about 19,000 in 2006. By 2011 the resident population of the Shire had grown to23,900. Population growth is expected to continue, particularly in and around Karratha, largely a resultof investment in new mining operations and continued global demand for iron ore and natural gas.The Shire of Roebourne encompasses a total land area of over 15,000 square kilometres. The Shire ispredominantly rural, with growing population centres in the township of Karratha and the smallertownships of Dampier, Roebourne and Wickham/Point Samson. The main industries in the Shire aremining (iron ore and gas extraction), salt production, and cattle and sheep grazing, with some fishing andtourism. The key employment sectors are currently mining and construction, and to a lesser extent, retail,transport, education, tourism and property and business services. The major industrial areas are theDampier and Cape Lambert Ports, with an industrial estate to the south of Karratha. The Shire's mainretail area is the Karratha CBD, with a smaller centre at Wickham. Roebourne features one tertiaryinstitution (Pilbara Institute) and a number of primary and secondary schools.6

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy1.3 Economic development & the role of the governmentThe purpose of economic development is to build up the economic capacity of the Shire of Roebourne toimprove its economic future and the quality of life for all. It is a process by which the Shire will liaise withthe public, business, government and not-for-profit sector partners collectively, to create better conditionsfor economic growth and employment generation.The Shire of Roebourne City of the North Plan identifies the need to explore options for the creation ofan economic development model for the Shire. Delivery of the plan cannot be achieved by any oneorganisation. All stakeholders and partners, both big and small, need to work together to help achievethe visionThe Roebourne Shire is in an influential position to implement economic development and currentstrategic planning aims to be inclusive and expansionary. The Shire and its residents recognise thevalues and special characteristics which are the foundation of long term planning. The Shire can play thefollowing economic development governance role: Shape the qualities of the community; Provide assistance and support to business; Determine how land use and facilities are developed; Support the development of a local workforce; Communicate the district’s assets, advantages and aspirations; Establish policies to align business and community goals; Allocate funds to key projects and services 1 ;Provide leadership for long term economic success; andForm strategic partnerships with the public and private sector to maximise the value of thestrategy and share implementation responsibility.Underpinning the aspirational target of 50,000 residents for Karratha: City of the North is the need tocreate over 22,000 jobs and with it substantial economic diversity. Proactive engagement anddevelopment of initiatives is needed to facilitate job creation and business expansion. The Shire’seconomic development services provide a range of initiatives to enhance economic diversity andbusiness development. This creates a more normalised market and improves the delivery of services tothe community.1These include community facilities and programs which improve liveability in the Shire and thus have aneconomic dimension.7

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy1.4 Policy frameworkStrategic Community Plan 2012-2022Some guidance for the economic strategy is contained in the Shire’s Strategic Community Plan 2012-2022.Aspiration:The primary aspiration for the Shire over the next ten years is to grow into a collectionof diverse and sustainable cities supporting a regional population of 40,000 residents,realising the State Government’s ‘Pilbara Cities’ initiative of transforming Karratha intoa ‘world class City of the North’Themes involve a quadruple bottom line approach (QBL) to achieving the primary communityaspiration. These themes include ‘Our community – Diverse and Balanced’, ‘Our Economy – Well Managed and Diversified’, ‘Our Natural and Built Environment – Thriving and Sustainable’; and ‘Our Leadership – Responsive and Accountable’ in line with community expectations.The Goal for the Economy Strategic Theme is: To develop infrastructure and facilities in a sustainable way to support the communities’needs. To manage and maximise the benefits of growth in the region while diversifying theeconomic base.Shire of Roebourne Strategic Community Plan: Outcomes and ResponsesOutcomesResponseCreate opportunities for growth and diversification of thelocal economyMore industrial, commercial and residential land supply andcreation of readily developable land banks that can bequickly released to the market.Develop initiatives, build partnerships and deliver projects toattract and support Small to Medium Enterprises in theregion.Develop Initiatives, build partnerships and initiate projectswhich identify and develop land and accommodationopportunities including facilities for key service workersEncourage diversification of the local economy through thesupport of tourism and visitation.Create opportunities for growth and diversification for localbusiness.Facilitate the release of land to cater for growingdevelopment opportunities.8

2 The economy of the ShireShire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy2.1 Factors of economic growth in the Shire of RoebourneThe economy of the Shire is heavily dependent on the minerals and energy sector. The mining sectoraccounts for $4,041 million of the $6,894 million total value added (59% of total) in the Shire (2011estimates) and the oil and gas and iron ore mining make up 57% and 38% respectively of value addedin the Shire from the mining sector. 2 Construction, the next largest sector measured by value added, isoverwhelmingly directly related to mining and resources projects.Table 2: Value added by industry sector, Shire of Roebourne Modelled dataIndustry sector (2006 ANZSIC) 2011 $ millions (2008/092011 % of totalconstant prices)Agriculture, Forestry and Fishing 63 0.9Mining 4,041 58.6Manufacturing 84 1.2Electricity, Gas, Water and Waste Services 75 1.1Construction 1,940 28.1Wholesale Trade 54 0.8Retail Trade 49 0.7Accommodation and Food Services 25 0.4Transport, Postal and Warehousing 148 2.1Information Media and Telecommunications 16 0.2Financial and Insurance Services 23 0.3Rental, Hiring and Real Estate Services 60 0.9Professional, Scientific and Technical Services 48 0.7Administrative and Support Services 61 0.9Public Administration and Safety 84 1.2Education and Training 56 0.8Health Care and Social Assistance 43 0.6Arts and Recreation Services 2 0Other Services 23 0.3Total industries 6,894 100Source: National Institute of Economic and Industry Research (NIEIR) modelling and .id consultantsThe resources sector is the only one in the Shire selling outside of the Pilbara region in significant volume.It is this which drives wealth into the region.However, the resources sector is highly capital intensive, not labour intensive, and this is likely to becomemore marked over time. Major companies with capital intensive operations will seek to continually reduceon-site labour costs – remote mining technology is one of the main areas of research for the mining2Pilbara Development Commission, Pilbara Regional Economy Version 2, March 201210

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategymajors. Much research and technical development is directed towards improving on-site labourproductivity and increasing the ability to undertake parts of operations remotely. This technology is underdevelopment and is being steadily implemented by the major resource companies. This will serve todampen regional population growth generally. Some of this is already in place: a current example is theremote control (from Perth) of haul trains.Extensions of technological applications over time will serve to subdue or even reduce regional labourdemand from resources projects, even as the volume and value-added measures increase. This willserve to dampen regional population growth generally.Australia is currently positioned at the point of a major transformation in the world’s economic weight fromwest to east. The rapid industrialisation of structurally large Asian economies, predominantly China, hasdriven world economic growth over recent times and changed the dynamics of key international resource,product and capital markets.For Australia, this has translated to strong demand and elevated prices for energy and mineral resources,and is underpinning massive investments by the minerals and oil and gas industry in new capacity. Theeconomic advancement in Australia’s region is overwhelmingly positive for Australia, playing tocomparative advantages as a secure and reliable energy exporter.The oil and gas industry currently represents around 2.0% of gross domestic product, with direct andflow-on value added of approximately $28.3 billion in 2010-11 (based on total sales of $29.7 billion).Moreover, the industry’s systemic significance is continuing to grow on the back of large LNG exportinvestments, mainly in Western Australia, Queensland and the Northern Territory. Separately, these represent some of the biggest projects ever undertaken in Australia; andcollectively, they account for around 35.4% of all business investment. Further, if all oil andgas investments are realised, they will comprise over 64% of all committed investment. LNG output is expected to grow by around 250% over the next seven years, with a projectedvalue of over $35 billion in 2017-18.Importantly, the industry’s economic linkages are broad and deep. Of total industry value added, about$4.3 billion is generated by supplying industries across the economy — including the resource supportservices, maintenance and construction and professional services sectors. These linkages areparticularly visible in the thriving resource service hubs which have emerged in Brisbane and Perth, butalso in the supply sectors of resource communities such as in the Shire of Roebourne.Building on these linkages, robust export performance by Australia’s oil and gas industry, and otherresource producers more broadly, has provided important income and employment support over thecourse of the global downturn. This has played a key role in Australia withstanding the more dramaticeconomic declines which confronted other developed economies.11

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy2.2 EmploymentThus while the mining sector is an important employer, it is not currently the main one. The dominanceof the construction sector as an employer in the Shire is illustrated in the following table and graph:Employment by Industry Shire of Roebourne 2006, 2011 and 2012 (Persons Employed)Industry sector (2006 ANZSIC) 2012 2011 2006Agriculture, Forestry, Fishing 137 100 82Mining 5,040 4,837 2,367Manufacturing 950 743 515Electricity, Water, Waste Services 423 505 252Construction 5,246 5,017 2,332Wholesale Trade 434 343 405Retail Trade 1,209 906 790Accommodation & Food Services 822 829 559Transport, Postal, Warehousing 1,286 1,289 865Information Media & Telecommunications 116 71 94Financial and Insurance Services 107 65 109Rental, Hiring and Real Estate Services 426 402 197Professional, Scientific & Technical Services 1,019 911 506Administrative and Support Services 743 694 397Public Administration and Safety 1,431 1,196 609Education and Training 931 845 634Health Care and Social Assistance 994 751 422Arts and Recreation Services 59 53 101Other Services 610 544 293Total industries 21,983 20,101 11,529Source: National Institute of Economic and Industry Research (NIEIR) modelling and .id consultants12

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyFigure 2: Roebourne Shire Employment 2006, 2011 and 2012Roebourne Shire Employment 2006, 2011, 20126000500040002006201120123000200010000Source: National Institute of Economic and Industry Research (NIEIR) modelling and .id consultantsIt shows a very substantial increase in construction-related employment over the period 2006 to 2011,increasing by almost 2,700 over the period, while employment in the mining sector rose substantially, butby 2,470 workers. It is also worth noting the relatively large increases in proportionate terms ofadministrative categories and of professional, scientific and technical services.The nature of economic activity in the Shire of Roebourne is different to many mining communities: it hasfew iron ore mines and none within commuting distance of the main settlement areas. In addition toconstruction, economic activities driving employment around the main settlement areas are regionalservices and administration, LNG production, port and port-related transport operations and salt mining.While major centres in the Shire are not close to operational mines – some FIFO workers may useKarratha, Roebourne and other settlements as a FIFO / DIDO residential base to work elsewhere in thePilbara. This may partly be the result of the indigenous employment program of Fortescue and Rio.There is some evidence of this – the 2006 census shows in the two big employment sectors of miningand manufacturing, employment self-containment of 85% and 81% respectively, with almost 500 workersin those two industries and almost 1,200 overall with their main residence in the Shire but their place ofemployment elsewhere. These will have the reverse effect on demand for community facilities to theincoming FIFO workers.However information provided by Rio shows that the numbers of workers using Karratha as a residentialbase is far eclipsed by other locations: amongst regional WA, Rio FIFO workers are far more likely tohave Busselton, Geraldton and Broome as a home base than Karratha. This is an area of opportunityfor the Shire.13

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyEmployment Self-Containment Shire of Roebourne 2006ResidentemployeesEmployedin ShireEmployedoutsideShireSelfcontainment %Agriculture, Forestry and Fishing 31 13 18 41.9Mining 1,889 1,602 287 84.8Manufacturing 408 332 76 81.4Electricity, Gas, Water and Waste Services 134 121 13 90.3Construction 1,057 848 209 80.2Wholesale Trade 218 201 17 92.2Retail Trade 665 621 44 93.4Accommodation and Food Services 376 334 42 88.8Transport, Postal and Warehousing 464 392 72 84.5Information Media & Telecommunications 48 39 9 81.3Financial and Insurance Services 67 67 0 100Rental, Hiring and Real Estate Services 206 190 16 92.2Professional, Scientific & Technical Services 200 163 37 81.5Administrative and Support Services 295 252 43 85.4Public Administration and Safety 528 480 48 90.9Education and Training 589 561 28 95.2Health Care and Social Assistance 424 394 30 92.9Arts and Recreation Services 30 30 0 100Other Services 229 202 27 88.2Inadequately described 278 109 169 39.2Total industries 8,136 6,951 1185 85.4Ref: id consultants and ABS2.3 FIFO in the Shire of RoebourneA significant challenge faced together by Pilbara towns and the resources sector is a rapid increase inemployees and their families choosing fly-in-fly-out (FIFO) employment in preference to residentiallybased employment. ‘Long distance commuting’ for work can be traced back to the first half of the 20thcentury when shearing teams, recruited in Perth, travelled from sheep stations in the Kimberley throughto pastoral areas. In the resources sector, long distance commuting has manifested into FIFO and hadits beginnings during construction of the iron ore mining and shipping facilities in the Pilbara in the 1960sand 70s. Groups of specialist labour recruited from outside the region were housed in temporary campswhile they completed their work. When they were done, some of these workers took permanent jobs inthe region, but most returned home.It remains a significant proportion of the workforce employed in the Pilbara and there is no indication thatthis will change markedly. It is an entrenched practice for workers and their employers. According to theChamber of Minerals and Energy:14

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy“At the most basic level, FIFO is about providing choice for workers. In a competitive labourmarket, employee choice is paramount. Choice of what job they do, who they work for and,importantly, of where they choose to live.” 3In the next few years, the majority of FIFO workers in WA will be involved in construction of new resourcesprojects and maintaining existing ones. Construction workforces are typically much larger and transientthan operational workforces, as many individual employees or contractors may only be required for ashort time. For example, ground surveyors may only be utilised at the start of a construction project,whereas fit-out specialists such as painters will generally be engaged near the completion of the project.Once their specialist task is complete, they then demobilise from the site.Large maintenance workforces are also often employed over short periods to undertake routinemaintenance tasks once a project is operational. These workers typically move from one worksite toanother across the state and the nation, utilising their specialist skills for a defined period of time.Operational workforces tend to be smaller, and their employment is generally for the longer-term andmore stable.In accommodating construction and maintenance staff, facilities typically are less permanent and ofvarying standards compared with those provided to operational employees, who have ongoingemployment, though the facilities may be used for multiple projects. Some facilities are not permanent,as companies, as well as local governments, naturally avoid the provision of accommodation forconstruction workers that is not suitable for long-term operational employees. This is not only importantfrom an economic point of view, but can also be important for communities, as it avoids the provision ofun-needed accommodation that could adversely affect the local market, particularly in times of economicchange.It may also be the preference of communities to have construction camps located at site, or outside town,due to the potential disruption that could be created by having a large workforce in the community for ashort period of time.Limited research has been undertaken to qualify the impact of a non-resident population on importanthard infrastructure that sustains and builds communities i.e. roads, water, sewer, waste and socialinfrastructure that supports strong local communities i.e. community sport and recreation facilities,libraries, community events.Resource sectors expand and contract rapidly, often with little warning due to volatile commodity prices,which makes it difficult for councils to plan for and supply key community and emergency services.Community services such as general practitioners, emergency rooms, ambulances, hospitals,pharmacies, nursing services, dentists and police confront significantly increased levels of demand asFIFO workers are as likely to use these as local residents. The public benefit nature of many of theseservices, that is they are available to all participants in the community, results in the perception of theFIFO workforce is acting as “free-loaders”, utilising the services and facilities without being required tocontribute to the provision of the services and infrastructure. A resulting situation where these essentialservices are only provided to the level of “permanent” population benchmarks is that local residentsperceive under delivery of service in the local community and may be forced to travel to other larger townsto access these services.3The Chamber of Minerals and Energy Of WA, A Matter of Choice: Capturing the FIFO Opportunity in Pilbara Communities,April 201215

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyA survey by the Queensland Department of Treasury of short term accommodation providers in theBowen Basin (including the Isaac Region) is likely to give results that are broadly similar to the shortterm accommodation situation in the Shire of Roebourne if a similar survey were conducted there.From the survey, the characteristics of non-resident workers were found to vary, but generalobservations upon their disposition were: Single Persons Quarters (SPQs) are more likely to contain young single people than otherforms of accommodation, but also house unaccompanied non-resident workers whosepartners and dependants live elsewhere. Although the occupants of SPQs arepredominantly male, most larger establishments also cater for female workers. A relativelysmall number of workers live in SPQs as their permanent place of residence; Many motels have a semi-permanent block booking arrangement for companies, cateringlargely to sub-contractors and government agencies. Where permanent housing is in shortsupply, motels may supply medium-term interim accommodation for mining companyemployees and contractors. Motels are the primary providers of short-term accommodationfor visiting executive, managerial and consulting staff; The number of hotel occupants varies according to location and availability of other dwellingtypes. With a few exceptions, hotels are less likely to provide medium-term accommodationfor non-resident workers than motels, caravan parks and SPQs; Of all accommodation types surveyed, caravan parks have the most diverse range ofoccupants, ranging from usual residents to short-term visitors. These parks usually containa mix of working age singles, couples and families with children. Compared with the stateoverall, local area caravan parks generally have lower proportions of usual residents whoare retirees; and Head-leased private housing is sometimes used as interim accommodation for newly arrivedworkers with families, particularly those awaiting permanent housing in the local area.Private housing is also rented by groups of unaccompanied workers, either in the form ofprivate group housing arrangements or as overflow rooming to existing hostels. 8The Scale and Constitution of the FIFO CommunityA literature review indicates that the data on FIFO workers in the Shire of Roebourne is not definitive andis incomplete. The recently released AEC report 9 provides some information, but does not providesufficient detail to make any definitive conclusions. It provides some estimated breakdown on the sizeof the FIFO workforce and their possible location, based on the PDC report, but this is not in the form ordetail to inform the Shire’s particular needs concerning the appropriate level and scale of communityfacilities.There is some data available that can give some insights into the FIFO workforce in the Shire:8Queensland Treasury, Office of Economic and Statistical Research, Bowen Basin population report, 2009, Full-time equivalent (FTE)population estimates, July 20099Fly-In Fly-Out Worker Economic Impact Assessment on Services and Infrastructure Delivered by Local Government in thePilbara Region, AEC Group, June 201218

Comparative Data for Shire of Roebourne from 2011 Census:Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyPlace of Usual Residence (Includes people who state they were at home in the Shire on Census nightplus those who were elsewhere but stated a Shire address as usual place of residence)Table 5: Population of usual residentsRef: ABS Census 2006, 2011, Cat 2001.0 Table B01Note the very large increase in the male population. These data will include people living in FIFOvillages and camps who regard it as their usual residence.Place of Enumeration (The Place of Enumeration count is a count of people based on where theywere located on Census Night. In many cases people are located away from where they usually live.Census counts by place of enumeration include overseas visitors.)Table 6: Population by place of enumeration on Census night2001 2006 2011Male 8,757 10,922 19,612Female 7,217 8,430 10,356Total 15,974 19,352 29,968Ref: ABS Census 2001, 2006, 2011 Cat 2003.0 Table T012006 2011 ChangeMale 8,865 13,751 4,886Female 7,558 9,149 1,591Total 16,423 22,900 6,477The difference between the two tables (i.e. approximately 2,929 in 2006 and 7,068 in 2011) gives anindication of the approximate scale of the FIFO workforce in the Shire.Note that the very substantial increase between 2006 and 2011 is likely to be predominantly constructionrelated.The Geographia survey gives an indication (based on a very small sample) that in the order of73% of FIFO workers may be construction–activity related, indicating a longer term FIFO operationalworkforce in the Shire of around 2,000 – 3,000. To assist in firming up this estimate, the 2011 Censusdata indicates that out of a total of 7,407 dwellings in the Shire, 2,390, or 33% of them, were being rentedfrom bodies other than a private landlord or public housing authority. This includes employer-providedhousing and accommodation in caravan parks and residential parks.The Geographia survey also confirms the short term nature of the construction non-resident workforce,compared to the workforce involved in operations. This is shown in the table following.19

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyDuration of employment – FIFO workersDuration of Employment Construction FIFO workers Operations FIFO workersless than 1 yr 32% 30%1 to 2 yrs 36% 18%3 to 5 yrs 27% 16%6 to 9 yrs 0% 6%10+ yrs 5% 21%Total 27.8% 72.2%Source: Geographia SurveyThe Geographia survey also found that while access to health services is very important, the range andquality of community services is not high on the factors affecting whether or not to relocate to the Shire.The main factors affecting relocation decisions for FIFO workers in the 2012 survey are: Cheaper accommodation & more housing choice; Better hospital & medical services; Lower cost of living; More cafes & restaurants; and Better shopping.The figures for overall FIFO workforce size above are of the same order of magnitude but at a littlevariance from those reported in the 2012 AEC Group report 10 , which estimates a 2012 Shire populationof 20,172 and a FIFO workforce of 10,719. This would indicate a current core service population ofaround 30,900. Of this a large proportion is involved in the construction phase of minerals resourcesprojects. It size and nature will change as the resources projects now under construction move towardsan operational phase and if the economy diversifies away from its current resources base.There are good indications that a very high proportion of the current FIFO workforce is in the constructionsector and that the current high rate of short-term accommodation demand is driven by constructionactivity for major projects. At some stage in the medium term this activity will decrease substantially andthe construction sector in the Shire will then resemble that found in a relatively stable community.10Fly-In Fly-Out Worker Economic Impact Assessment on Services and Infrastructure Delivered by Local Government in thePilbara Region, AEC Group, June 201220

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy2.4 Imports and exportsRegional Exports data represents the value ($) of goods and services exported outside of the definedregion that have been generated by businesses / organisations in each of the industry sectors within theregion. Another way of defining exports is as an inflow of money into the region, i.e. Motels have an inflowof money from people who live outside the region’s boundaries thus they are earning export dollars. Nodistinction is made between domestic and international exports. For instance, so exports of goods andservices from Pilbara Region include sales to the rest of the region.Regional Imports data represents the value ($) of goods and services imported into the defined region bybusinesses / organisations in each of the industry sectors. Another way of defining imports is as anoutflow of money from the region, i.e. a local business outsourcing accountancy services to a firm inanother region which results in an outflow of money thus they are importing services. No distinction ismade between domestic and international imports, and so imports into Pilbara Region include goods andservices sourced from the broader region.The value of the import and export flow of the major industries is shown below, indicating, consistent withthe value add data, a net outflow in mining and construction industries.Figure 3: Shire of Roebourne value of imports and exports (major industries) $MMiningConstructionManufacturingTransport, Postal & Warehousing$0.00 $2,000.00 $4,000.00 $6,000.00 $8,000.00 $10,000.00 $12,000.00ExportsImportsData Source: PDC / REMPLANWhen the Shire import and export data for other industries an interesting picture emerges of high levelsof import flows compares with export flows from the Shire across a wide range of services. This is shownin the table following:21

Figure 4: Shire of Roebourne value of imports and exports (other industries) $MElectricity, Gas, Water & Waste ServicesAccommodation & Food ServicesRental, Hiring & Real Estate ServicesPublic Administration & SafetyWholesale TradeEducation & TrainingProfessional, Scientific & Technical ServicesAdministrative & Support ServicesRetail TradeAgriculture, Forestry & FishingOther ServicesArts & Recreation ServicesInformation Media & TelecommunicationsFinancial & Insurance ServicesHealth Care & Social AssistanceShire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy$0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00ExportsImportsData Source: PDC / REMPLANNote that the Shire is net importer of many services, including many that service the local economy andlocal community. Most of these services would be sourced from major administrative and commercialcentres, principally Perth, but also other Australian major centres (Sydney, Melbourne, Canberra) andoverseas. This points to an area of expansion as the community expands and diversifies. It would alsoincrease as the role of Karratha as the principal service centre for eh Pilbara region expanded.An objective would be for the Shire to be a net exporter of services such as health, education, professionaland administrative services and knowledge industries in general to the wider Pilbara region.22

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy2.5 Pilbara regional economyThe Shire of Roebourne is a significant component of the Pilbara Region. The Pilbara is often describedas the engine room of the nation because of its significant contribution to the national wealth. Its immensereserves of natural resources provide massive direct export sales and also fuel a thriving economy ofsupport services.Resource sectorThe Pilbara's economy is strongly dominated by the mining and petroleum industries and is consideredto be the State's premier mining region. These industries are growing at a considerable rate.The largest export commodity in Australia is iron ore and approximately 95% of this is produced in thePilbara. Demand for iron ore principally comes from Japan, China and other rapidly developing Asiannations. In 2010, approximately 400 million tonnes of iron ore were exported from the Pilbara, worthAU$46.5b. New projects are continually being proposed and developed in the region as extensivegeological research is uncovering more resources.The region also produces 70% of Australia's natural gas. This is sourced from the Carnarvon Basin offshoreand is serviced and processed onshore from the Shire of Roebourne at Dampier.In addition to iron ore and natural gas, 85% of Australia's crude oil and condensate comes from thePilbara.The Pilbara also produces a range of other minerals having a total 2011 value of AU$2.4b. This is led by: gold and silver at $1 billion; copper at $643 million; manganese and salt at $585 million; and other minerals at $131 million.While the Shire of Roebourne is only a small proportion of this, it is one of the region’s major service andextraction hubs where port, rail, government and industry intersect.Value of minerals and energy by LGA region (2012 value)Region Value ($)East Pilbara 29,828,820,725Ashburton 20,002,483,643Roebourne 155,782,451Port Hedland 753,742,294Total 50,740,829,113Offshore Petroleum 24,373,312,323Source: Dept of Mines and Petroleum, Mineral and Petroleum Statistics Digest 2012Other industriesOther industries include manufacturing, tourism, sheep and cattle, fishing and aquaculture. All figureprominently in the economy of the region, providing a diversity of activity - and a range of business23

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategyopportunities. A number of projects aimed at economic diversification are also currently being trialled,including solar energy production at Marble Bar and algae production for biofuel and protein.2.6 The Shire in the Pilbara economyMajor resource projectsThere are three major resource companies operating in the Shire (Rio Tinto, Woodside Energy Ltd andCitic Pacific Mining). Each company is currently operating or rolling out mining and energy extractioninfrastructure investments worth an estimated $69 billion (Table 9). The most significant include theWoodside operated North West Shelf Venture, Woodside’s Pluto project, Rio Tinto’s expansion ofDampier Port, Cape Lambert Port and CP Mining plans for Cape Preston. A total of more than 22,000construction jobs and 4,000 permanent jobs are to be created from these projects.ProjectWest Pilbara - Selected Committed Resource Infrastructure ProjectsDevil Creek Development Project Apache Energy/ Santo gasprocessingCapitalInvestmentConstructionWorkforceOperationalWorkforce$896m 200 20Citic Pacific Mining Sino Iron Ore Project US$5.2b 4500 800Chevron Gorgon Joint Venture offshore gas extraction $43b 3500 600Woodside Pluto offshore gas extraction $12b 4000 300Woodside joint venture gas project $7.9b - -Total $69b 12,200+ 1,720+(Data source: Prospect)In addition to this, some $16.8 billion worth of investment is under consideration or at pre-feasibility stage.It is noteworthy from the table above that the total operational workforce represents only around 14% ofthe construction workforce.ScaleThe Shire contains a very high proportion of the Pilbara economy – around 33 % of all employment andbetween 30% and 60% of most services. It has only 19% of all Pilbara employees in the mining sector.It has a higher proportion than the Pilbara average of employment in the following sectors: Electricity, Gas, Water & Waste Services; Public Administration & Safety; Construction; Professional, Scientific & Technical Services; Retail Trade; Rental, Hiring & Real Estate Services; Financial & Insurance Services; Manufacturing; Transport, Postal & Warehousing; Information Media & Telecommunications; Education & Training; Wholesale Trade; Health Care & Social Assistance; Administrative & Support Services; and Other Services.24

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyThis is illustrated in the following graph.Figure 5:Shire of Roebourne – proportion of Pilbara total: employmentData Source: PDC / REMPLANInterestingly it has a lower than average employment in arts and recreation services. This is an area thatwill need to be supported to provide the lifestyle values that will be expected by new residents if thepopulation is to expand to those anticipated in the higher level scenarios.Note also that the proportion of workers in the construction industry is likely to decline from 2014 unlessmajor new projects are announced.Mining activities in the Shire produce over $6,000 m of value add, but this is only 23% of the Pilbara total.The Shire provides 40% – 50 % of value add in the region as a whole in a large number of servicecategories, with the highest proportions in: Electricity, Gas, Water & Waste Services; Manufacturing; Construction; Public Administration & Safety; Professional, Scientific & Technical Services; Retail Trade; Rental, Hiring & Real Estate Services; Financial & Insurance Services; Transport, Postal & Warehousing; Information Media & Telecommunications; Education &Training;25

Electricity, Gas, Water & Waste ServicesManufacturingConstructionPublic Administration & SafetyProfessional, Scientific & Technical ServicesRetail TradeRental, Hiring & Real Estate ServicesFinancial & Insurance ServicesTransport, Postal & WarehousingInformation Media & TelecommunicationsEducation &TrainingWholesale TradeTourismHealth Care & Social AssistanceOwnership of DwellingsAdministrative & Support ServicesArts & Recreation ServicesOther ServicesMiningAccommodation & Food ServicesAgriculture, Forestry & FishingShire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyWholesale Trade;Tourism; andHealth Care & Social Assistance.These generally mirror the employment data and indicate the strengths of the Shire in a regional context.Figure 6:$7,000.00Shire of Roebourne – value addShire of Roebourne - Value Add70%$6,000.00$5,000.00Value AddProportion of Pilbara total60%50%$4,000.0040%$3,000.0030%$2,000.0020%$1,000.0010%$-0%Data Source: PDC / REMPLANTourismTourism is a category of economic development that would have an expansion objective and requiresseparate analysis. The Tourism category is an amalgam of activities across various industry sectorssuch as retail, accommodation, cafes & restaurants, cultural & recreational services. The tourism industrysector services the activities of persons travelling to and staying in places outside their usual environmentfor not more than one consecutive year for leisure, business and other purposes not related to theexercise of an activity remunerated from within the place visited.26

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyIt currently employs 750 people in the Shire of Roebourne and accounts for 5.1% of total employment inthe Shire. This is a much lower proportion than in tourist-oriented localities such as the Shire of Augusta-Margaret River where one sub-category of tourism employment (accommodation and food services)accounts for over 13% of Shire employment.800700Figure 7:Tourism employment in the Pilbara7.0%6.0%6005004003002001005.0%4.0%3.0%2.0%1.0%Tourism employmentProportion of LGA totalemployment0Ashburton (S) East Pilbara (S)Port Hedland(T)Roebourne (S)0.0%Source: Australian Bureau of Statistics National Accounts Tourism Satellite Account.27

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy3 Growth prospects –the global and regionalcontextThe demand for iron ore is expected to grow; one of the biggest drivers of demand is the growth of China.The Bureau of Resources and Energy Economics forecasts that iron ore world demand will continue togrow up to nearly 2000 mtpa by 2025. 11In 2011 approximately 410 million tonnes of iron ore was exported from the Pilbara at a value ofAU$60.3b, approximately 45% of world iron ore exports.Iron Ore:Based on data provided from the Bureau of Resources and Energy Economics and the WA Departmentof State Development, the current identified figures for additional jobs required in the Pilbara between2012 and 2018 are: 27,300 construction jobs; 15,870 operational jobs.Primary risks to the growth of the Pilbara iron ore industry are: Change in the Chinese economic outlook; Cost pressures; Lack of skilled workers; International competition from Brazil and West Africa; and Infrastructure constraints, ports, roads, housing, power, water.The Pilbara LNG industry is experiencing major growth simultaneously with the iron ore industry andlooking to expand to 30 mtpa by 2015 and 60 mtpa by 2020.LNG:In 2011 the world LNG trade measured 238 million tonnes of LNG. Due to location, the growth in the Asiapacific region is most important to the Pilbara and this trade in 2011 was measured at 147 million tonnesannually. Demand for LNG in the region is expect to continue to increase at a 6% yearly average.Based on data provided from the Bureau of Resources and Energy Economics and the WA Departmentof State Development, the current identified figures for additional jobs required in the Pilbara between2012 and 2018 are: 11,330 Construction jobs; 708 Operational jobs. 12Primary risks to the growth of the Pilbara liquefied natural gas industry are: Demand for skilled labour will outstrip supply; Increase in capital and labour costs; Development of alternative fuel sources; and Competition from other suppliers.11(Resource and Energy Quarterly March 2012 BREE)12WA Chamber of Minerals and Energy28

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyOther minerals:Based on data provided from the Bureau of Resources and Energy Economics and the WA Departmentof State Development, the current identified figures for additional jobs required in the Pilbara between2012 and 2018 are: 2,176 construction jobs; 915 operational jobs.Given the current investment detailed across all categories of minerals and petroleum in the Pilbara it isestimated by the WA Chamber of Minerals and Energy that an additional workforce of approximately: 40,000 construction workers and; 17,493 operational workers;will be needed between 2012 and 2018.29

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy4 Competitive PositionTo get a better idea of how to achieve the Pilbara Cities vision, an investigation of the competitive positionof the Pilbara and of the Shire is instructive.A range of factors largely explain differences in regions’ economic prosperity and growth patterns. Theseinclude differences in resource endowments, the size of markets, demography and population dispersion,levels of human capital, the extent and incidence of taxation and the level and quality of publicexpenditure, as well as competition and market settings. It is therefore useful to investigate prospectsfor the region through the prism of its economic performance and competitiveness relative to otherregions or wider areas.A competitiveness index developed by the Regional Australia Institute and drawing on the WorldEconomic Forum’s Global Competitiveness Report provides some guidance 13 . The 10 themes of regionalcompetitiveness are distinguished between: Those that are essentially fixed in nature and cannot easily be adjusted (such as thepresence of natural resources or market size); and Those that can be changed by policy decisions, either directly through a decision to build,invest or change (such as institutions and infrastructure), or at least influenced by policy(such as human capital and labour market efficiency).An assessment of the Pilbara on these parameters provides an indication of the areas of comparativestrength in the region and those that need attention or strategies to deal with them.13Regional Australia Institute: Insight Regional Australia,http://insight.regionalaustralia.org.au/#30

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyIn the following section graphs for selected parameters show the relative comparative rankings for thePilbara Region against all 55 Australian Regions identified by Regional Development Australia and usingthe data measures utilised in the Insight project. Note that this includes regions within capital cities. Thegraphs show relative distance from the median rank; 1 represents the highest ranking and -1 the lowestranking amongst the regions.The section also includes comparative rankings for each of the Pilbara local government areas againstall 560 local government areas in Australia. These are displayed with similar measures as for the regionalcomparisons. This gives information of the ranking of the Shire of Roebourne against other Pilbara localgovernment areas as well as giving an Australia–wide comparison.4.1 InstitutionsCompetitiveness IndexElementPilbara SituationRegional governmentinfluence at state andnational levelThe Pilbara is a high profile regional location and has very goodexposure at the state government level and, to a lesser extent,nationally.Clear roles andresponsibilities in regionalgovernanceAt the development level there is quite a lot of crossover betweenindividual local governments and state agencies and atdevelopment policy level there is some duplication across allthree tiers of government.Financial burden of localgovernmentThe local governments have very high financial commitments forthe provision of infrastructure and services for a rapidlyexpanding population, with a limited rate base and are underconstant financial pressure.The local and regionalassistance available forbusinesses.The local and regional bodies have limited funds available fordirect business assistance, but it ranks amongst the highestamongst Australian regions.Regional governmentindependence (Councils withmore autonomy are moreable to respond to localneeds/demands)Compared with some other Australian jurisdictions, there is ahigh reliance on government decisions made outside of theregion, particularly at State government level.31

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyRegional Relative Strengths: InstitutionsRegional government influence at state/nationallevelLocal government assistance for businessesClear roles and responsibilities in regionalgovernanceTransparency of local government policyFinancial burden of local governmentPublic service: % of workforce employed in thepublic service-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthOverall:In comparative terms the Pilbara is in a strong institutional position: its influence at state andnational level is comparatively high and regional governance is relatively transparent withreasonable clarity of roles However, regional autonomy is quite low: local capabilities arehighly dependent on continuing influence and good relations with the state government (inparticular) and national government for resources; there is limited ability to raise funds locallyfor expansion projects. The relatively low proportion of people working in the public sectorhas positive and negative aspects to it: there is reduced understanding amongst the variouslevels of the bureaucracy of regional conditions, but a higher reliance on private sectoractivity to drive the economy.4.2 Infrastructure and servicesCompetitiveness IndexElementPilbara Situation Road infrastructure The region contains part of the intrastate regional road network - giventhe relative remoteness of the Pilbara it is a high quality connection. Aviation infrastructure The region has several large airports, including two that have regularinterstate connections and are capable of expansion to regularinternational operations.Access to highereducation.There is only limited access to higher education – the Pilbara Instituteprovides a range of vocational education and training courses, butthere is virtually no access to tertiary education Port infrastructure The region contains some of the largest and busiest bulk portsanywhere. It has no or limited capacity for general cargo. A commonuser facility is planned but not yet executed. This would enable32

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyCompetitiveness IndexElementPilbara Situationservicing of new projects outside of the region, either off-shore or inthe Canning Basin. Land cost Land cost generally is very high for all classes of accommodation. Themedian cost of buying a house in December 2012 was $747,000 inKarratha; $844,000 in Port Hedland; $840,000 in Newman and$890,000 in Onslow. It was $495,000 in Perth.Access to hospitalservices and to alliedhealth servicesWith the establishment of the Nickol Bay Hospital in Karratha and theSouth Hedland Health Campus, there are good quality district andregional hospitals, but limited specialist services. There is evidencethat people need to leave the region for long periods for specialisttreatment. There is limited aged care available.Police services: Number of people employed in policeservices per capitaAccess to tertiary education services: (% of working agepopulation attending)Access to hospital services: Number of people employedin hospitals in a region per capitaAccess to GP services: Number of per capitaAccess to technical or further education (% of working agepopulation attending)Access to allied health services: % of workforce employedin health services (excl hospitals)Regional Relative Strengths: Essential Services-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative Strength33

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyPolice services: Number of people employed inpolice services per capitaAccess to hospital services: Number of peopleemployed in hospitals in a region per capitaAccess to technical or further education (% ofworking age population attending)Access to tertiary education services: (% of workingage population attending)Access to allied health services: % of workforceemployed in health services (excl hospitals)Access to GP services: Number of per capitaLGA Relative Strengths: Essential ServicesEast PilbaraAshburtonPort HedlandRoebourne Shire-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthOverall:The region has good transport connections and infrastructure. However it ranks poorly in allaspects of access to health services and education services. These are critical areas if thepopulation is to be to retained and expanded. Extended GP, specialist and aged servicesare required to service population growth and to meet Pilbara Cities objectives. There is acritical need for vastly expanded access to tertiary education and also technical and furthereducation.The Shire of Roebourne matches the regional pattern across all measures, with low rankingsfor all essential services except police services. On a per capita basis, Port Hedland ranksmuch higher than The Shire of Roebourne for access to health services.4.3 Macroeconomic conditionsCompetitiveness IndexElementPilbara Situation Population churn The population turnover is high. This makes it difficult to develop alarge and consistent group of regional ‘champions’.Stability of the localeconomy (local inflation)Building approvals – valueof new investmentLocal inflation is high – local costs generally are high comparedwith elsewhere in the country.The rate of building approvals is generally high, showing goodevidence of business willingness to invest in the local community. Total income per person The average income is much higher than the national average,with a very high proportion of individual workers earning very highincomes.34

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyOverall:Average incomes are high, meaning there is wealth in the community and latent demandfor new business initiatives; however the cost base is very high.4.4 Human capitalCompetitiveness IndexElementMedian age of theworkforcePilbara SituationGenerally the workforce is younger than the national average, witha high proportion in the 25 to 44 year age groups. Workforce education levels The region has a lower proportion of people with tertiary educationin the workforce, even compared with other resources regions inAustralia.Early school leavers % of adult population that completedyear 12Health: Adults with none of the risk factors of smoking,harmful use of alcohol, physical inactivity, obesityLifelong learning: % of working age population participatingin education and trainingTechnical qualification: % of working age population withcertificate and diploma qualificationsUniversity qualification: % of working age population withuniversity qualificationsSchool performance - Secondary: % students in top 2 Bands(literacy and numeracy)School performance - Primary: % students in top 2 Bands(literacy and numeracy)Regional Relative Strengths: Human CapitalEarly childhood performance: % of childrendevelopmentally vulnerableEnglish proficiency: % population with English as firstlanguage or speaks English well-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative Strength35

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyEarly school leavers % of adult population that completedyear 12Health: Adults with none of the risk factors of smoking,harmful use of alcohol, physical inactivity, obesityLifelong learning: % of working age populationparticipating in education and trainingTechnical qualification: % of working age population withcertificate and diploma qualificationsUniversity qualification: % of working age population withuniversity qualificationsSchool performance - Secondary: % students in top 2Bands (literacy and numeracy)School performance - Primary: % students in top 2 Bands(literacy and numeracy)LGA Relative Strengths: Human CapitalEarly childhood performance: % of childrendevelopmentally vulnerableEnglish proficiency: % population with English as firstlanguage or speaks English wellEast PilbaraAshburtonPort HedlandRoebourne Shire-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthOverall:The region has a relatively young, healthy and energetic workforce. However, the regionranks comparatively poorly on other measures of human capital, with a lower than averageincidence of trade qualifications and of tertiary education amongst the workforce. The highproportion of FIFO workers limits the ability of this part of the workforce to contribute toregional expansion beyond the specific project on which they are working. Of particular noteis the relatively low school performance scores at both primary and secondary level. This isa key factor that must be improved if population retention and growth is to be achieved.At the LGA level, both the Shire of Roebourne and Port Hedland have higher than averagerankings in population health measures and lifelong learning and the Shire of Roebournehas good scores on early childhood performance. These are good signs that there is a levelof comparative attraction on some key measures in Karratha.4.5 Labour Market EfficiencyCompetitiveness IndexElementPilbara Situation Wage/labour costs Very highUnemployment rates in theregionLevels of labour forceparticipation in each regionGenerally lowGenerally high36

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy Youth unemployment Generally low Skilled labour Generally very low Welfare dependence Generally low (except for indigenous community)Regional Relative Strengths: Labour Market EfficiencyYoung unemploymentUnemployment rateWelfare dependence: % of population usingGovernment support main source incomeParticipation rate: % working age population in thelabour forceSkilled labour: % of workforce employed asmanagers and professionals-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthLGA Relative Strengths: Labour Market EfficiencyYoung unemploymentUnemployment rateWelfare dependence: % of population usingGovernment support main source incomeParticipation rate: % working age population in thelabour forceSkilled labour: % of workforce employed asmanagers and professionalsEast PilbaraAshburtonPort HedlandRoebourne Shire-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthOverall:In comparative terms the labour force is relatively engaged, flexible and mobile.However, the participation rate is quite low, possibly partly reflecting the indigenouspopulation , but also possibly reflecting the lower than average participation of partnersof people working in major projects who might regard their time in the Pilbara as relativelyshort term and not have employment that meets their needs or expectations. The levelof skilled labour (i.e. people employed as managers and professionals) is amongst thelowest in the country.At the LGA level both the Sire of Roebourne and Port Hedland have lower thanaverage levels of welfare dependency.37

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy4.6 Technological readiness:Regional business and individual effectiveness using information and communication technologies(ICT); Preparedness for technological developmentCompetitiveness IndexElementPilbara Situation Government IT investment Karratha and Port Hedland are served by the Telstra fibre optictrunk cableHigh-speed broadbandavailability Mobile phone coverage Adequate in the major centresBusinesses in technologyrelated industriesLarge parts of the major centres already have NBN commencedor are on the three-year rollout programAverage for a regional centreRegional Relative Strengths: Technological ReadinessBroadband connections: % Households and businesseswith broadband internetWorkers in ICT and electronics: % employed as ICT andelectronics specialistsInternet connection: % of households with internetconnectionBusinesses in technology and related industries: % ofworkforce employed by technology related businesses-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative Strength38

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyLGA Relative Strengths: Technological ReadinessBroadband connections: % Households andbusinesses with broadband internetWorkers in ICT and electronics: % employed as ICTand electronics specialistsInternet connection: % of households with internetconnectionBusinesses in technology and related industries: % ofworkforce employed by technology related…East PilbaraAshburtonPort HedlandRoebourne Shire-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthOverall:There is coming to be good access to high speed broadband in most parts of the region andparticularly in the main settlements. This is not a barrier to growth. There is no particularexpertise amongst the business community for technology related industries.At the LGA level, the Shire of Roebourne has the highest relative proportion of workers inICT occupations than other Pilbara shires, except for the much smaller Shire of East Pilbara.4.7 Business sophisticationCompetitiveness IndexElementQuality of region’s overallbusiness networksDominance of largeemployers - number of largefirms in the region.Pilbara SituationSmall business networks and local chambers of commerce existand can be expanded.Economy is dominated by a very small number of very largeemployers Exports High proportion of imports in all sectors (except for mining),particularly services Economic diversification Low Access to local finance All channelled through Perth and elsewhereIncome source – ownbusinessRelatively small SME sector39

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyRegional Relative Strengths: Business SophisticationExports: % business sales revenue earned from exportsIncome source - Own businessEconomic diversificationAccess to local finance: Number of banks/lendinginstitutions as a share of total businessesExporters, importers, wholesalers: % employedDominance of large employers-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthAccess to local finance: Number of banks/lendinginstitutions as a share of total businessesExporters, importers, wholesalers: % employedLGA Relative Strengths: Business SophisticationIncome source - Own businessEconomic diversificationDominance of large employersEast PilbaraAshburtonPort HedlandRoebourne Shire-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthOverall:The region is dominated by very large employers and has a small and underdeveloped smalland medium business sector. With several exceptions there is not a tradition of newenterprise creation.The Shire of Roebourne shows the most diverse and sophisticated business environment inthe Pilbara, with the highest level of income sourced form own business, the highest levelsof economic diversification and reasonable access to local finance.40

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy4.8 InnovationCompetitiveness IndexElementHuman resources in scienceand technologyPresence of researchorganisationsPilbara SituationComparatively lowVery low Patents Very lowExpenditure on research anddevelopmentVery low, except for within major companies as part of theiroperations research; this explains the high overall ranking.Presence of research organisations: % of researchorganisations out of all businessesRegional Relative Strengths: InnovationExpenditure on research and development:Average expenditure on R&D per businessHuman resources in science and technologyResearch and development managers: % employed-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthOverall:Amongst the major minerals and resources companies the level of leading edge researchand development is very high and its application in the region is widespread, resulting incontinuous innovation and globally competitive operations. This presents an opportunity forthe future of the region. It provides a level of skill and expertise that can be applied to otherregional enterprises and also opportunity for supply chain and spin-off enterprises.41

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy4.9 Economic fundamentalsCompetitiveness IndexElementPilbara Situation Size of local market There is a substantial and growing population base, although it isrelatively small compared with most other Australian regions. A keystrategic advantage is the presence of very large purchasers in theform of the major mining companies – local businesses able tosupply to them will develop skills and expertise in selling to worldclasspurchasers, which will increase their viability for expansionoutside of the region, including international expansion.Number of businessesrelative to population sizeThere is a relatively small business sector – this might be explainedby the presence of very large employers and the high cost base Proximity to markets Main metropolitan markets are distant and will have high freight costto service them. This will affect the viability of some potential agribusinessdiversification projectsRegional Relative Strengths: Economic Fundamentals / Market SizeBuilding approvals: Value of building approvals percapitaPopulation: Number of working age residentsSize of economy: Value of business turnoverWage/labour costs: Average wage and salaryincomeNet primary productivity-1 -0.75 -0.5 -0.25 0 0.25 0.5 0.75 1Relative StrengthOverall:While the region currently has a relatively small local market, it is coming to a scalethat it can support a greater range and diversity of business and services; the presenceof world-class purchasers provides a substantial opportunity.42

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy4.10 Natural ResourcesCompetitiveness IndexElementPilbara SituationRegional access to naturalresourcesThere are abundant mineral resources but very limited waterresources.Physical attributes of aregion, and whether theyare conducive to industryThe climate is not conducive to agriculture, except for some potentialspecialist and technology-intensive applications. There is CO 2 feedstock and good conditions for intensive algae farming. There arehigh-value heritage sites, giving tourist potential.Overall:There is opportunity for several main classes of expansion to the externally-oriented sectorsof the Pilbara economy:Expansion of the economic base – the probability of development of the main mineralsand energy projects has been addressed and analysed in the Chamber of Minerals andEnergy report. This shows some expansion, but a general slowing of new constructionand a fairly quick transition to an operational phase overall. However, there are newprospects that may arise and become viable over time and be either located in orserviced from the Pilbara. These include Canning Basin gas projects and the BalmoralSouth magnetite project.Diversification projects: several of these are possible and are addressed below.Exportable services: at the moment the services base of the Pilbara is small andunderdeveloped. However research institutes and tertiary education focussing on furtherdevelopment of the region’s base minerals and energy industries and spin-offs formtechnology-based diversification projects would provide a services sector with outputapplicable outside of the region. This is an area of great opportunity for the region andis one key to achievement of the Pilbara Cities vision.43

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy5 Shire growth prospects – the minerals andenergy sectorRegional growth is primarily driven by major projects in the M & E sector. A recent report released bythe Chamber of Minerals and Energy 14 investigates all resources projects currently underway, committedor in planning (up to a stage of preliminary feasibility study) and uses a weighting methodologyincorporating the probability of any individual project proceeding to provide estimates of labour demandfrom resources projects.It also uses indirect employment multipliers and family population multipliers to arrive at estimates ofpopulation change in Pilbara LGAs arising from resources projects.The report recently released by the Chamber of Minerals and Energy indicates only limited likelyexpansion of resource projects within the Shire itself. 15 The CME/PWC report investigates all resourcesprojects currently underway, committed or in planning (up to a stage of preliminary feasibility study) anduses a weighting methodology incorporating the probability of any individual project proceeding to provideestimates of labour demand from resources projects.It also uses indirect employment multipliers and family population multipliers to arrive at estimates ofpopulation change in Pilbara LGAs arising from resources projects.Continuing growth for the regional economy is forecast: the CME report estimates that the workforcerequired to meet current growth plans for the resources sector in the Pilbara is expected to peak at justover 65,500 in 2014, up from over 51,000 in 2011 - an increase of 28.4 per cent.The overall employment outlook is a function of construction and production activity. The constructionworkforce will begin to fall after 2012, but will remain above 2011 levels until 2015. The operationsworkforce will see sustained growth to 2020. The net effect is minerals and energy sector employmentfor the region peaking at just over 65,500 in 2014, up from over 51,000 in 2011, with minerals and energyemployment settling at around 55,000 from 2018.The overall conclusions for the Shire of Roebourne are: The Shire of Roebourne will see a decline in the overall workforce directly related tominerals and energy projects. This decline will commence in 2014 and increase through to2018; A major driver of the decline is the large construction workforce already employed in thearea in 2011. This workforce will decrease as the current set of projects is completed; and Although there will be a corresponding increase in the operations workforce, it will not belarge enough to offset the decline in construction personnel.14PricewaterhouseCoopers, Pilbara Population and Employment Study, Chamber of Minerals and Energy of WA, November201215PricewaterhouseCoopers, Pilbara Population and Employment Study, Chamber of Minerals and Energy of WA, November201244

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyThe expectation is therefore for some increase in operational workforce to 2020 (around 2,100 increaseover 2011), but for a very substantial decrease in construction workforce (up to 10,600 by 2020) asprojects are completed. This would only change if new projects not yet at a stage of preliminary feasibilitystudy were to arise before 2020 and if major infrastructure projects, for example Anketell Port were tocommence within that time. If this were to occur it would likely extend the duration over which theconstruction FIFO workforce was a significant factor in the economy of the Shire (for example extendingdemand period for short stay and TWA accommodation), but the end outcome would be similar to thatdescribed here.The expected change in minerals and energy projects workforce is shown in the graph below.Figure 8:Shire of Roebourne: Minerals & Energy Workforce by Type (Incremental to 2011) (‘000s)Source: PricewaterhouseCoopers 2012The expected impact of these changes on the FIFO and residential workforce population is shown in thefollowing graphs.The first shows quite substantial decreases in the FIFO construction workforce and small increases inthe operational FIFO workforce and residential workforce:45

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyFigure 9:Shire of Roebourne: FIFO vs. Residential (Incremental to 2011 – All M&E projects)(‘000s)Source: PricewaterhouseCoopers 2012The second graph shows the proportionate changes over time, with almost no construction workforcefor minerals and energy projects in the Shire after 2018.Figure 10:Shire of Roebourne: FIFO vs. Residential (All Minerals & Energy projects)Source: PricewaterhouseCoopers 2012Therefore the FIFO proportion noted above for 2011 for metal or mining and oil and gas extraction islikely to be fairly constant in number, but construction FIFO likely to decline to almost zero. This correlateswith previous discussions with Woodside, the main oil and gas sector employer in the Shire, who advisea total stable operational workforce of around 1,000 in the Shire, of whom around 300 are FIFO.This will be accompanied by a corresponding reduction in demand for camp beds in the Shire ofRoebourne, although the CME study does study show a significant increase in demand in the Shire ofEast Pilbara – requiring over 17,000 additional camp beds by 2017). This shows the volatile nature ofdemand when major construction activity is driving it. It also is a source of potential business for Karrathafirms that are able to service remote transient communities.46

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyThe third graph includes the population multipliers and shows the expected maximum impact of theincreases in the residential workforce on the population of Karratha. The expectation is for minerals andenergy projects overall to drive fairly modest increase in the Karratha population, an increase of around1,300 from 2011 to 2021.Figure 11:Karratha – M&E employment effects on population (incremental to 2011) (‘000s)Source: PricewaterhouseCoopers 2012Note however, there is a long list of prospective resources projects, some of which are accounted for inthe CME analysis above, but some which may become viable in the medium and longer term. A full listof prospective projects is attached as Appendix 7.These new prospects that may arise and become viable over time and be either located in or servicedfrom the Pilbara and these would re-ignite the construction sector. These include Canning Basin gasprojects and the Balmoral South and Balla Balla magnetite projects.However, there are several threats facing Australia‘s LNG market. High project costs, scarce laboursupply, a strengthened Australian dollar, infrastructure bottlenecks and tight environmental regulationscould combine to delay the timing of some LNG projects coming on stream.The graph below illustrates various LNG facilities globally based on their output and investment value.This data indicates that new Australian LNG facilities have a relatively high capital costs basis whencompared to projects in other countries. The Sabine Pass project in Texas is the first export LNG facilityto be constructed and available data indicates that its capital costs are substantially lower than mostAustralian projects. This gives the prospect of US-sourced LNG competing directly with Australianproduct and puts a cloud over new LNG projects in Australia in the short and medium term.47

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyFigure 12:LNG Project – Output and Investment ValueSource: MacroPlan Research ReportNevertheless there is substantial activity in the Australian LNG projects and iron ore projects underconstruction already. Most have long term contracts attached to them. The proximity, low political riskand available resources will enable Australia to maintain a key role in supplying the Asian market.By 2018, global LNG trade will be heavily dominated by Qatar and Australia, with a combined total ofapproximately 50% of the global market. This outcome would generate a very substantial pricing powerfor these two countries.The base economic activity for the region is strong. The economy of the Pilbara, particularly thecontribution from the resources sector, is the major driver of growth in the region. The Pilbara has impactson the economic progress of the State, and in turn, is impacted by developments in the State andAustralia, including policy settings and competition for inputs needed for large-scale expansion anddiversification.Expansion projects in advanced planning include infrastructure that will strengthen the capacity of thePilbara region overall. These include the Anketell Port project and the Lumsden Point Maritime CommonUser Facility in Port Hedland. The latter, in particular, will provide infrastructure to service the oil andgas, resources, defence, housing and construction industries. It could provide the capability for the regionto play a significant role in newer on-shore and off-shore gas and other resources projects and will havespin-off activity for Karratha businesses.Possibility of Anketell PortThe Anketell Port project is for the establishment of a bulk ore port at Anketell Point, near to CapeLambert. It would have a full capacity of 350 mtpa. Stage 1 of the project would be for a 115 mtpa48

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategycapacity. This would employ 950 in its construction phase for a 6-month period and employ 150 in theoperational phase 16 .The construction of Anketell Port primarily depends on the API West Pilbara project. The Project is asubstantial iron ore export operation proposed for the Pilbara region, south of Pannawonica, shown onthe map below. Stage 1 of the Project is based initially on pisolite iron ore deposits located 30 km to 85km south west of Pannawonica.16Advice: Dept of State Development49

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyFigure 13:West Pilbara iron ore projectThere is potential for growth in subsequent stages based on the prospective and extensive tenementportfolio in the west Pilbara, as well as tenements in the east Pilbara.API completed the Pre-Feasibility Study for Stage 1 of the Project in May 2008 with the followingprimary Project outcomes: Iron ore mining and export at a rate of 25 million tonnes per annum; Simultaneous mining of multiple pisolite deposits located on the western region of theHamersley Ranges;50

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyA heavy haul railway from the mine area to a port location at Cape Preston;Iron ore stockpiles, processing, blending and ship loading facilities at the port location; andCapital investment in the order of $A4.0 billion.API completed the Feasibility Study (FS) for Stage 1 of the West Pilbara Iron Ore Project in June 2010.The FS reports the technical and financial viability of API’s proposed 30Mtpa Stage 1 development.However, Aquila Resources has put the West Pilbara iron ore project in abeyance, reportedly due tofunding difficulties.The West Pilbara Iron Ore project has won state environmental approval for the proposed Anketell Port,but still needs rail and port construction approvals, key to its plans for exporting 30 million tonnes a yearof ore.The West Australian state government has said it will not approve construction of Anketell Port until it iscertain the project's backers have the funds to build a mine, a 282 km rail line and the multi-user port,which will depend on what has become an increasingly volatile iron ore market. The port project thereforehas some uncertainty, although it is possible that API could have it operational by 2015 if funding isavailable.However, it is possible that the State Government will seek an alternative route to development of stage1 of the project, with a view to operations by the end of 2015.51

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy6 Shire growth prospects – diversificationprojectsA common theme amongst the numerous planning and economic studies for the Pilbara 17 and for theShire of Roebourne is the need to diversify the local economy if the labour force and therefore thepopulation is to expand.Other base and driver industries have been suggested. For example, a report by Worley Parsons on theland requirements for the establishment of an algae industry in the Pilbara 18 notes the Pilbara has anumber of characteristics that provide the potential for the future development of sustainable, commercialscale algae industries. The sunny weather conditions, the vast tracts of non-arable land, matched withthe proximity of both sea water and world scale sources of concentrated CO2, provide the ideal inputs forhigh volume algae production. The Pilbara also houses a number of major industries that are significantconsumers of diesel, and these industries provide a natural market for regionally produced algae basedbiofuels.The report includes a preliminary assessment of potential locations and identifies a site in the Shire ofRoebourne south of Dampier as being amongst the most viable, although there are constraints and risksto address.The report notes, however, that while the Pilbara has many attractive attributes for the development ofalgae industries, it also has a high cost operating environment. There are a number of other areas aroundthe world that offer similar potential to the Pilbara in terms of attractive attributes for algae production, butwhich currently offer cheaper operating environments. Such areas include parts of the Middle East,Southern USA, and North Africa. Global competition from these (and other) areas could materially impactthe likelihood of the Pilbara becoming a future site of major algae industry developments. Therefore theestablishment of this industry could be regarded as possible, but by no means certain in the Shire.Similar factors working against industry establishment are likely to be relevant in many of the other nonminingsector diversification industries that arise for consideration.The labour resources required to operate a full scale 5,000 ha facility would see the employment of inthe order of 200 people. Although a high degree of automation is possible, the efficiency of biologicalprocesses such as algae production is highly dependent on operator input and expertise. As such, manyof these people would require a biological background, and/or a strong understanding of algaeproduction.17For example:Development Australia Pilbara:• Pilbara Report 2012• Pilbara Regional Plan 2012 – 2017Pilbara Development Commission / Pilbara Cities Office:• Pilbara Cities Vision document• Karratha City of the North Plan• Pilbara Planning and Infrastructure Framework• Pilbara Regional Council Plan for the future• Pilbara Regional Economy18WorleyParsons, Pilbara Algae Industry Study, Pilbara Cities Office, June 201252

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyA further spin-off could be the building of a research institute, using the technical input and technicalworkforce requirements for algae production facilities as a basis for such an institute. However, thiscould prove difficult. The effectiveness of research institutes of this type is determined by both the longterm commitment of major funding of infrastructure and its ability to attract high calibre researchers. Thisis long term commitment in a highly competitive and high risk environment. Are more likely path is theestablishment of negotiated and managed relationships with existing and internationally recognizedresearch organisations. This would result in a modest number of researchers on site. (As an aside alocal example of the difficulty of generating anything more than modest local employment from specialistresearch and education bodies can be found in the Margaret River Centre of Wine Excellence andMargaret River Education Campus, which despite being located in a region of high quality wineproduction and in one of the most attractive places to live now has a high proportion of its research andeducation activities and staff located in Perth.)Aurora Algae have a pilot plant now underway south of Dampier. Subject to the results of the pilot plantthe company’s plan is to expand the scale of the plant over time.Figure 14:Aurora Algae Pilot PlantSource: Aurora AlgaeOther potential non-mining export sector projects arise for consideration. Those currently identified byRegional Development Australia Pilbara 19 include:19Regional Development Australia Pilbara, Pilbara Report 201253

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyProspective employment (operations)Project: Skilled professional Skilled technical and semi-skilledBio-fuels Project 5 - 10 20 - 30Hi-Tech Greenhouse 5 - 10 20 - 30Aquaculture fish farm 4 10Fish processing factory 2 10 - 20Source: RDAOther projects will arise for consideration; for example a pilot high intensity horticulture facility in SouthAustralia using seawater desalinated on site shows promise and may represent a technology which couldbe utilised in the Shire at some stage in the future.Some or all of these, or variation of them have some prospects of implementation and will be importantfor the economic diversification of the Shire. However, it is important to retain a sense of scale for eachof these projects: even a very large project (e.g. the algae farm) in full production provides only a modestcontribution to employment growth. Assuming all employment multipliers are applied locally and withminimal FIFO employment the full scale algae farm or 200 workers might account for a populationincrease in the Shire of only around 500 people. A large number of these projects are therefore requiredto achieve significant economic diversification of the export driver sections of the economy away from itscurrent resources base and to significantly increase the population to the levels anticipated in the PilbaraCities program.Direct and Indirect EffectsExpenditure or local employment leads to further activity in the economy. The extent to which extraactivity circulates and stays in the economy depends upon a number of factors including fly-in fly-out andthe size and capacity of the local economy. The following employment multipliers have been calculatedby Compelling Economics and are specific for the Pilbara. The multipliers include the industrial andconsumption effect of direct employment in the Pilbara Regional Economy.54

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyEmployment multipliers in the PilbaraPilbara industry sectorEmployment multipliers using2006/07 national input/outputtablesEmployment multipliers updated to2007/08 national input/outputtablesAgriculture, Forestry and Fishing 1.27 1.27Mining 1.94 1.97Manufacturing 2.17 2.04Electricity, gas, water & waste1.5 1.46servicesConstruction 1.73 1.78Wholesale trade 1.55 1.52Retail trade 1.16 1.14Accommodation & food 1.19 1.18Transport, postal & warehousing 1.5 1.45Information media &1.49 1.45telecommunicationsFinancial & insurance 1.47 1.46Rental, hiring & real estate services 1.68 1.66Professional, scientific and technical1.42 1.38servicesAdmin & support services 1.42 1.42Public admin & safety services 1.34 1.32Education & training 1.22 1.2Health care & social assistance 1.18 1.18Arts and recreation services 1.26 1.22Other services 1.22 1.2Source: Pilbara Development Commission, Pilbara Regional Economy Version 2, March 2012Additional jobs in manufacturing have the strongest impact on employment in the Pilbara. With a multiplierof 2.04, a single manufacturing job leads to 1.04 new jobs in the Pilbara regional economy. A highproportion of manufacturing in the Pilbara, both current and prospective activity, is connected to theresources industry, and much current manufacturing activity is likely to be connected to the constructionphase of resource projects and will be vulnerable to fluctuations in construction activity.55

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy7 Shire growth prospects – regional servicesThe Population Report identifies the prospect of an increased regional role for Karratha as the mainservice centre for the Pilbara, becoming the primary centre in the Pilbara for high-end and specialistservices, particularly in meeting demand for: Education services; Health services; and Administration (private sector and public sector).It is well placed for this: It has the largest regional airport, with a capacity for expansion to international operationsunder the Airport Master Plan. It has a substantial health campus. It has good secondary and some tertiary education facilities. It is the location of the regional office for a number of government agencies. It has a good variety of lifestyle attractions around the Nickol Bay area generally; and It is the largest town in the Pilbara and most likely to contain the mix of community, culturaland social facilities that will keep attract and keep a wider population mix.7.1 Education servicesThe provision of high quality tertiary education is a critical requirement for the future of the Pilbara. Thereare a number of precedents for a substantial regional university in a town of the scale of Karratha andlarger.Institution Students Location / populationJames Cook University11,500 including 1,500Townsville – 175,000TownsvilleinternationalUniversity of New England, Students 17,000, including 12,500 Armadale - 26,000Armidale NSWon-line studentsCharles Sturt University: Multi-campus Bathurst - 37,000Goulbourn - 30,000Orange - 38,000Port Macquarie - 44,300Dubbo - 39,500Wagga Wagga - 58,000Further examples are shown in the appendices to this report.One possible model for the establishment of a university in the Pilbara is the Geraldton UniversitiesCentre. This is an independent, not-for-profit, incorporated body, supporting university courses inGeraldton on behalf of a range of universities including CQUniversity, Charles Sturt University and theUniversity of Southern Queensland. It was generated by initiatives from within the Geraldton community.56

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyThe Geraldton Universities Centre's objective is to facilitate, deliver, promote and provide access touniversity education for people residing in the Mid-West. It was established in 2002, has been in its ownfacilities since 2006, and has 187 graduates and 180 current student enrolments. The population of thewider Geraldton region is around 44,000; the Pilbara population is around 63,000 people.The University of Western Australia is examining the possibility of establishing facilities in the Pilbara tobolster research, professional development and undergraduate outreach and support. A UWA PilbaraTaskforce is assisting UWA’s Energy and Minerals Institute (EMI) to examine the many areas of theUniversity’s research, professional development and outreach capabilities that could be delivered throughUWA Pilbara. Some potential areas include energy and minerals, the Centre for Rock Art Research andManagement, the School of Indigenous Studies, the Oceans Institute, the Centre for Social Impact, theRural Clinical School of WA and Aspire UWA.The Regional Australia Institute regional comparisons show that the Pilbara has some way to go in theoverall level of its secondary education if it is to be competitive and resilient. The recent expansion ofKarratha Senior High School upper school facilities gives promise. The increasing size of this school andof Hedland Senior High School gives opportunity to develop a wide range of programs and develop areasof excellence in secondary education in the Pilbara. An objective is to get these schools to rank amongstthe highest in WA in key educational areas; this would help make the two main Pilbara cities a residentialplace of choice, similar to Perth suburbs with high ranking secondary schools. Boarding facilities for atleast one of these schools would further widen their appeal and enable them to fill a wider regional role.An objective for the Shire is for the Karratha Senior High School to increase its size to over 1,000 students(it is currently around 630) and to become the highest standard regional secondary school in WA. Aboarding facility at the school would assist his aim.7.2 TourismThe growth of the tourism sector will be an urgent action for the Shire from around 2014 on as theconstruction phase of major projects winds down. Demand for informal FIFO accommodation hasunderpinned the viability of many of the short-stay establishments in the Shire. There is likely to becapacity and need to change orientation to tourist demand to maintain business turnover. Note that thiswill spill over to many other areas of economic activity in the Shire, including retail and food services inthe same period.There are many opportunities to increase tourism as a proportion of the total economy from its currentfairly low base. In investigating how this might be achieved it is useful to look at the five ‘A’s of tourism,namely: attractions, amenity, access, accommodation and activities.Attractions:A number of tourist attractions are identified in the Shire or directly accessed through the Shire, including: Cossack; Old Roebourne Gaol; Yaburara Heritage Trail; Millstream; Karijini; Mt Herbert, Wittenoom Road, Chichester Ranges, Roebourne;57

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyBurrup Peninsula;Stairway to the Moon from Hearson's Cove;The Dampier Archipelago; andThe Montebello Islands.Many of these are world-class. The Shire has attractions that can form the basis of a viable and largertourist industry.Amenity:Tourist amenity is variable across the shire – it is not as advanced or comprehensive as some of itscompetitor locations.Access:In comparative terms accessibility to the Pilbara is very good – it has good regional road connectionsand, importantly, a busy airport with a range of interstate and intrastate connections and prospects ofinternational connections. Airfares are comparatively high and if a discount airline were to operate theroute it would be a tourist advantage.Accommodation:The Shire is not a major established tourist destination in the way that, for example, Broome or Exmouthare. There are a number of reasons why this might be the case: Accommodation has been difficult to get and expensive - a FIFO effect; The region is not prompted as a tourist destination the same way that certain other regionsare; and consequently; and There are few tourist –oriented resorts and facilities, with a small ‘resort’ and caravan parksat Point Samson being the notable exception – but these are a small fraction of the rangeand scale of tourist accommodation that is available in other similar localities. Bycomparison, Broome has a wide and extensive range of tourist accommodation andtherefore gets much more attention.There is some evidence that accommodation shortage has led to a major component of the northerntourist market, namely the ‘grey nomad’ caravan and camping trade, to by-pass Nickol Bay and traveldirect from Broome to Exmouth 20 .Activities:Tourist activities are comparatively underdeveloped in the Shire. In large measure they have bencrowded out by the activities of the resource industries. An example is the very low availability of boatsfor tourist operations to off-shore islands in preference for resources off-shore work. This is anopportunity for expansion.The Shire already undertakes or sponsors a range of events which are becoming drawcards, includingCossack Art Awards, Rd Earth Arts Festival’ NAIDOC week, Karratha Community Celebration plus theFeNaCLNG festival.Opportunity:There are many opportunities for an expansion of the tourism sector:20TNS Social Research, Study of Caravan Park Development in Western Australia, 200658

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyBetter and more facilities for caravan and camping segment. There is an opportunity toexamine the possible re-use or re-orientation of existing TWA camps or, at least, the variousshort stay accommodation facilities which are in and around the major centres in the Shire;Expansion of adventure tourism – fishing and diving – in the Dampier Archipelago andMontebello Islands. This would be based out of Dampier and Samson;Industrial tourism; andBurrup rock art.There are several requirements to facilitate and enable this:Immediate requirements: An overall coordinated Shire tourism strategy – this could expand to a regional strategy forthe Pilbara with the involvement of the PDC and RDA Pilbara; Skills development; Promotion; Link with other areas (e.g. Broome, Exmouth) for packages; and Accommodation.Longer term expansion of infrastructure capability: Dampier marina – base for adventure tours ; and International airport – direct links to Asian capitals.A measure of success for the tourism industry in the Shire would be for it to be able to regularly houseindustry and academic conferences, including international conferences, of some size. If it could do thisit wold demonstrate that it has the requisite accommodation, facilities and transport connections to alsoappeal to a wider tourist market. This is an objective of a Shire tourist strategy.An expansion of Karratha airport to include regular international services – particularly from businesscentres in China, Singapore or India is a good medium term objective. The good interstate connectionsfrom Karratha means that such a route need not have Karratha as a primary destination, but possibly astopover on the way to or from Sydney, Melbourne or Perth.7.3 Administration, producer services, consumer servicesThe analysis in section 2 shows that the Shire houses a large proportion of the regions services andadministration, including: Public administration & safety; Construction services; Professional, scientific & technical services; Retail trade; Rental, hiring & real estate services; Financial & insurance services; Manufacturing and manufacturing services; Transport, postal & warehousing; Information media & telecommunications; Education & training; Wholesale trade; Health care & social assistance; and59

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyAdministrative & support services.These have capacity for expansion to form a wider regional role, and for the specialist resources –relatedskills and services, for export outside of the region. This would take advantage of any relativeagglomeration economies that there already are in Karratha and will rely on very high qualitycommunications ability. The NBN is crucial to this.An example of the way in which this might develop is the Pilbara Development Commission / IBM SmartCity concept. This uses broadband and big data to optimise water, power and transport networks, toconnect and integrate key services to minimise risks and gain efficiencies. It uses the cloud, sharedservices, and wi-fi to enable teleworking, smarter education, E-health and connection with remotecommunitiesThrough this, the Pilbara can realistically aim to be: a leader in renewable energy and the conservation of water and other resources; amongst the world’s top industrial and environmental tourism destination; a trading and technology leader; and enable connected and integrated communities.60

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy8 Strategic Analysis8.1 Summary strategic assessmentA summary strategic assessment of the economic strengths, weaknesses, opportunities and threatsinforms the development of specific programs:StrengthsThe Shire contains large world-class economic activity;This provides world-class purchasers, which means that local businesses selling to the maineconomic base (i.e. the minerals and resources sector and to any agri-businessdiversification projects that may become established) will have the skills and experience ofmarketing to major purchaser and may have exportable goods or services applicable to inother similar international markets;It is the biggest centre in the region, housing the greatest diversification, scale and range ofregional services, including a substantial health campus, one public and one private highschool and a TAFE centre with remote university facilities. It is the location of the regionaloffice for a number of government agencies;As the largest town in the Pilbara it is most likely to contain the mix of community, culturaland social facilities that will keep attract and keep a wider population mix. There is a goodvariety of lifestyle attractions around the Nickol Bay area generally; andThere is forecast continuing expansion for the local and regional economy.Weaknesses Labour costs are high, on all national and international comparisons; General costs of doing business are high, including high utilities and services costs; Costs of commercial and residential accommodation remain relatively high, although theseare starting to moderate; Local market is still small (Scale not yet there); There is ‘crowding out’ of tourism activity by FIFO worker demand – this is expected toreduce fairly quickly from 2014; Human capital rankings (educational attainment, skilled labour) are relatively low comparedwith other Australian regions; and High proportions of services are imported from other centres, principally Perth.OpportunitiesThere are opportunities in: Expansion of the economic base; Diversification projects; Tourism expansion; Services expansion; and Expansion of the small business sector.ThreatsThreats to economic growth include: An unexpected slow-down in mining activity possibly caused by substantial reductions incommodity prices due to reduced economic activity in major markets, particularly China;61

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyReduced or delayed infrastructure investment, possibly caused by budgetary constraints atboth state and federal level;Failure to address weaknesses in the local economy, particularly labour andaccommodation costs; andUncertainty of the future of significant government funding (e.g. via the Royalties for Regionsscheme) for necessary infrastructure projects.8.2 Responding to opportunities - expansion of existing projects and additionalresource projectsSituation summary:The prospects are for strong growth in operations expansion in for iron ore and other minerals in thePilbara and wider region. However, very few of these new projects are in the Shire.Opportunities will therefore be in value chain goods and services to both construction and operationalphases. Karratha is already a centre for this, with a god number of small and medium enterprisesmarketing into the Resource sector value chain.This requires support.Similarly LNG generally shows very high growth prospects. However, the extent to which this will flowon to specifically to the Shire of Roebourne is uncertain. There are prospects for on-shore support tofuture Processing of Browse Basin gas on-shore at Dampier is one of the options for the Browse Basingas (along with James Price Point at Broome and a floating LNG platform), and there is a small chancethat this will occur. However, this is likely not to lead to very large increases in operational labour demand.With a solid and expanding LNG industry the opportunities for businesses in the Shire are likely to be touse the existing skill base in LNG and offshore servicing to expand to other areas. However, it isnoteworthy that the current preferred site for a common user facility that might be a focus for theexpansion of businesses servicing the off-shore industry is at Port Hedland.There is likely to be quite rapid increase in the level of knowledge of FLNG technology and capturing thisin the Shire, possibly via some specialised research projects, to the extent it is possible will provide aknowledge base that can be applied elsewhere.Consequences for Shire EDS:Expansion of the existing economic base is largely out of the direct control of the Shire. The Shire cantherefore help with facilitation and seek to maximise local content, for example in: Fabrication; Marine services; and Services (admin, food/catering).It can achieve this by: Ensuring there is sufficient zoned and serviced industry and commercial land; Fostering the further development of SMEs in mining and resources support services andthe resources value chain.62

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyFostering incubation projects and support services, including small business incentives;Fostering small business networking, clustering and skills development.8.3 Responding to opportunities – diversification of the economic baseSituation summary:A number of opportunities for diversification have been identified. Principal ones are: Specialised agri-business; Tourism; Regional services; Education services; Health services; Administration (private sector and public sector); and Knowledge industries, including research on regional specialties.The highest proportion of services employment in the Pilbara is located in the Shire. However, a highproportion is imported from outside of the region. There is opportunity to increase the range and scaleof services offered locally in all categories.A recent study for the Small Business Centre West Pilbara 21 identifies the provision of affordableaccommodation as the most significant barrier to entry to the small business sector. It found that the lackof affordable residential accommodation is the single biggest obstacle to normalising the local economy.As a means of partially addressing this barrier, it proposes that subsidised business incubator premisesmatched with affordable residential accommodation be provided across the West Pilbara to encouragebusiness growth and diversity.Its recommended incubator model for Karratha is: 18 commercial/retail/incubator units in the Town Centre; 10 light industry incubator units in either the Karratha or the Gap Ridge light industry estates; 28 accommodation units of one, two and three bedroom configurations.The report notes that the recommended incubator development model for the Karratha Business Park isunlikely to succeed without the 1:1 provision of residential accommodation matched to the subsidisedbusiness accommodation, and success for the businesses installed in the incubator will be largelydependent upon the level of support and expertise provided to the tenants. Adequate resources toempower the SBCWP in this regard are essential including skilled personnel and access to appropriateand affordable training and meeting spaces.Communications:Karratha is due to be connected to the Australian Government’s National Broadband Network via opticfibre cable, with most work to commence from March 2015. The rollout will include Karratha, KarrathaIndustrial Estate, Gap Ridge, Dampier and Roebourne. Construction in new developments in some ofthese areas has commenced. Horizon Power has an agreement with the NBN Co help install NBNconduits in Karratha in conjunction with its power undergrounding program.21CCS Strategic, Business Case for the Establishment of Karratha Business Park and Transferability of modelto Tom Price and Onslow, Report prepared for SBCEP, August 201263

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyVery high quality tele-conferencing facilities, with general availability through digital hubs 22 or a resourcecentre is essential to the further expansion of general administration and regional services from Karratha.The NBN is crucial to the growth of this industry (and very beneficial to the growth of other industries)and it will be important for the Shire to be NBN ready.A digital strategy should identify the opportunities for the local workforce, home based and smallbusinesses and students, training, up-skilling requirements and collaborative workspace or businessincubator space options.Consequences for Shire EDS:The growth of diversification projects can be facilitated by: Ensuring the needs of agri-business enterprises are accounted for in strategic planning.This is particularly important for the algae farm which potentially is a very large land user; Fostering the development of SMEs in agri-business support services; Fostering incubation projects and support services; Health: further expansion of the health campus and incorporation of areas ofspecialisation; Education: actively promoting the establishment of full-service tertiary education facilitiesand services in the Shire; Promoting the expansion of aged care services and facilities in the Shire; Formulating a digital strategy for the Shire to enable:o Remote and tele-workingo Improved viability of basing regional services and administration in Karrathao Further progress on the Smart Cities initiative. Tourism: Formulate a comprehensive tourism strategy addressing:o Product – attractions and activitieso Amenityo Accesso Accommodationo Marketing8.4 The Pilbara CitiesThere is a danger of some duplication of roles between the two large Pilbara settlements of Karratha andPort Hedland. Each is planned to reach a population of 50,000. At this scale each would warrantsubstantial and high level education, cultural and health services to support its population. However theessence of the economic task to support this population is to for the communities to encompass activities22 A Digital Hub is a community-based computer training and internet access point containing a number of internetready computers. Each Digital Hub is run by staff that provide training and assistance to explain the benefits ofparticipating online, to drive greater digital literacy skills and to demonstrate the possibilities of using the NBN.64

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategyand enterprise that extend beyond the local region and are capable of either replacing imports – includingservices imports from other Australian regions – or exporting goods and services outside of the region.To be viable in this endeavour a focus on competitive advantages and the special capabilities of eachlocation is required. This will ensure the activities which emerge are viable over the long term, in otherwords, sustainable. The leading edge activity that is required to support an expanded Pilbara populationis best focussed in one location.This requires the respective roles of each of the major Pilbara centres to be identified and articulated.These will emerge over time but already the key elements of the distinction are beginning to be apparent.While there is room for much discussion in this area, an initial assessment indicates that Port Hedland,with expanded port operations and the Lumsden Point Common User facility with a general cargocapacity will have the circumstances for development of a range of industrial, maintenance and supportactivities, particularly by small and medium size industrial firms. These would service not only off-shoregas and oil ventures, but also be available to support any new shale gas developments in the CanningBasin This might include an emerging freight and logistics hub for consumer goods. While these activitieswould also be in the Shire of Roebourne, they are likely to become rather more prominent in Port Hedlandand would start to set the tone of the community.In contrast, Karratha already has substantial education, administrative, business, financial and technicaland professional activity. These will expand. It could emerge as the major centre for these services forthe entire northern region. The consequence for planning is that Karratha should allow for: Substantial upgrades to the urban environment, with the full completion of the town centreprecinct, to ensure liveability aspects of the main centre are maximised; A substantial education centre, including tertiary education and research facilities and anexpanded secondary school, including boarding facilities; Expanded health facilities, including allowance for specialist services; Tourist and business tourist accommodation, including conference facilities; Implementation of the airport masterplan (as revised), including regular internationalservices; and Accommodation for expanded government services.65

9 Strategies and actions - summaryShire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyFigure 15:An economic model for Roebourne ShireCurrentAdvantagesCurrent StrengthsEconomicOpportunitiesGrowth OpportunitiesStrong economicbaseRegionaleconomic growthMain site forregional servicesPolicy supportEmerging specialistskill baseEconomicinfrastucture:- Ports- Airport- Industrial land- Services- Transportsystems .CommunityServicesDevelopmentSitesExpansion ofeconomic baseDiversificationprojectsRegional servicesTourismRegionaladministrationMining andresourceindustryservicesResourceefficientconstructionindustriesHealth andwellbeingservicesSpecialistagribusinessEducationservicesAdventureandexperiencetourism andrecreationOverall strategy: Encourage expansion of the economic base Encourage diversification Facilitate expansion of the regional services sector Facilitate expansion of the tourism sectorStrategic focus Provision of enabling infrastructure Provision of employment accommodation Attend to cost structureo Accommodationo Labour Value chain management and local supply chain management Support for micro-enterprises and SME sectoro Skills developmento Intra-regional and extra-regional expansion Capitalise on digital initiatives SME supportSpecific measures:66

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyEnsuring there is sufficient zoned and serviced industry and commercial land;Fostering the further development of SMEs in mining and resources support services andthe resources value chain.Support to small business development programsFostering incubation projects and support servicesFostering clustering and SME incentivesEnsuring the needs of agri-business enterprises are accounted for in strategic planning.Fostering the development of SMEs in agri-business support servicesHealth: further expansion of the health campus and incorporation of areas ofspecialisation;Education: actively promoting the establishment of full-service tertiary education facilitiesand services in the Shire;Promoting the expansion of aged care services and facilities in the ShireFormulating a digital strategy for the Shire to enable:o Remote and tele-workingo Improved viability of basing regional services and administration in Karrathao Improved e-health and e-education serviceso Further progress on the Smart Cities initiative.Tourism: Formulate a comprehensive tourism strategy addressing:o Producto Accommodationo Marketing67

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyAppendix 1Effect of Shire growth scenariosThe potential changes in the Shire’s economy include: Decline in construction activity Increases in services activity Diversification of the economyThe effect on the composition of the workforce of these changes is outlined below.Composition – OccupationPotential changes in the occupation mix can be investigated by comparing the current mix in the Shirewith those in the average of Kalgoorlie-Boulder, Mt Isa, Geraldton-Greenough and Mackay, under thescenario that the Shire economy evolves between 2011 and 2031 to resemble that mix.The graph below shows the Shire’s current worker population (including FIFO workers) and the potentialmix of resident worker population 2031. The forecast changes reflect the expectation from the CMEreport for a substantial decrease in construction activity and consequently for construction labourdemand.68

Figure 16: Shire of Roebourne – potential changes in occupation 2011 – 2021Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development Strategy- 500 1,000 1,500 2,000Automotive and Engineering Trades WorkersConstruction and Mining LabourersDesign, Engineering, Science and Transport ProfessionalsEngineering, ICT and Science TechniciansMachine and Stationary Plant OperatorsElectrotechnology and Telecommunications Trades…Specialist ManagersRoad and Rail DriversConstruction Trades WorkersGeneral Clerical WorkersOffice Managers and Program AdministratorsHealth ProfessionalsOther LabourersHospitality, Retail and Service ManagersOther Clerical and Administrative WorkersCleaners and Laundry WorkersOther Technicians and Trades WorkersSales Assistants and SalespersonsEducation ProfessionalsMobile Plant OperatorsBusiness, Human Resource and Marketing ProfessionalsProtective Service WorkersNumerical ClerksCarers and AidesFood Trades WorkersInquiry Clerks and ReceptionistsStorepersonsSales Support WorkersHospitality WorkersTechnicians and Trades Workers nfdFood Preparation AssistantsLegal, Social and Welfare ProfessionalsFactory Process WorkersSkilled Animal and Horticultural WorkersChief Executives, General Managers and LegislatorsClerical and Office Support WorkersHealth and Welfare Support WorkersSports and Personal Service WorkersSales Representatives and AgentsPersonal Assistants and SecretariesMachinery Operators and Drivers nfdManagers nfdLabourers nfdArts and Media ProfessionalsFarm, Forestry and Garden Workers20112031Source: ABS Census 2011, Syme MarmionThe main increases in occupation by number would be as in the graph below, with high increases in theretail, education services and health services sectors.69

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyFigure 17:Shire of Roebourne - main potential occupation increases- 100 200 300 400 500 600 700 800 900Sales Assistants and SalespersonsCarers and AidesEducation ProfessionalsHospitality, Retail and Service ManagersHealth ProfessionalsNumerical ClerksBusiness, Human Resource and Marketing…Machine and Stationary Plant OperatorsRoad and Rail DriversInquiry Clerks and ReceptionistsGeneral Clerical WorkersFarmers and Farm ManagersHospitality WorkersHealth and Welfare Support WorkersSales Support WorkersSales Representatives and AgentsFood Preparation AssistantsLegal, Social and Welfare ProfessionalsCleaners and Laundry WorkersFarm, Forestry and Garden WorkersSports and Personal Service WorkersStorepersonsPersonal Assistants and SecretariesChange 2011 - 2021Change 2011 - 2031Source: ABS Census 2011, Syme MarmionThe following graph shows the occupations in the Shire workforce likely to decline in number, with thegreatest losses in the construction sectors.70

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyFigure 18:Shire of Roebourne - main potential occupation decreasesConstruction and Mining LabourersDesign, Engineering, Science and TransportProfessionalsEngineering, ICT and Science TechniciansElectrotechnology and Telecommunications TradesWorkersConstruction Trades WorkersChange 2011 - 2031Change 2011 - 2021Other Technicians and Trades WorkersMobile Plant OperatorsTechnicians and Trades Workers nfdOther Clerical and Administrative WorkersMachinery Operators and Drivers nfdProfessionals nfd(800) (700) (600) (500) (400) (300) (200) (100) -Source: ABS Census 2011, Syme Marmion71

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyAppendix 2:Small business supportThe Small Business Centre West Pilbara (SBCWP) provides a range of support services and skillsdevelopment for small business:Home Based Business Support.Development of business case for a Pilbara Virtual Office, to include:o Professional business addresso Personal mail boxo Local telephone number and call handlingo Live professional reception serviceso Call forwardingo Meeting facilitieso Free Wi-Fio Video conferencing serviceso Administrative support as neededo Furnished office access or Hot Officeo Copy servicesAn audit of capabilities is currently being performed. A business case model will then be developed withthe aim of obtaining start-up funding for capital improvements and a full time receptionist. West Pilbara Business ParkThe West Pilbara Business Park project is an initiative of The Small Business Centre West Pilbara andsupported by other agencies involved in the West Pilbara Economic Development Alliance. Theseagencies include the Pilbara Development Commission, Shire of Roebourne, KDCCI, Pilbara Institute,LandCorp, RDA Pilbara and others.The concept is to provide for start-up small businesses, incubator style facilities that offer:o Easy-lease accommodationo Access to training rooms and board roomso Access to Small Business Centre West Pilbara staff and serviceso Networking opportunities with other tenantso Other business services Pilbara Business Development SeriesThe Pilbara Business Development Series consists of the Pilbara Women’s Network – Women inBusiness Luncheon and two Business Development Workshops aimed at assisting small business andemployees in the Pilbara with networking and skills development. BIZFIT Pulse ChecksThe BiZ FiT Pulse Checks are free 90 minute sessions for existing small businesses, with up to 3 followup sessions to help identify which areas of the business can be improved. The SBCWP then assists thesmall business owner with these areas for improvement or refers to a specialist in that area.72

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyAppendix 3:West Pilbara iron ore projectThe Project is a substantial iron ore export operation proposed for the Pilbara region of WesternAustralia (Figure 1). API is currently developing Stage 1 of the Project, which is based initially onpisolite iron ore deposits located 30 km to 85 km south west of Pannawonica. There is potential forconsiderable growth in subsequent stages based on the prospective and extensive tenement portfolioin the west Pilbara, as well as tenements in the east Pilbara.API completed the Pre-Feasibility Study for Stage 1 of the Project in May 2008 with the followingprimary project outcomes:Iron ore mining and export at a rate of 25 million tonnes per annum;Simultaneous mining of multiple pisolite deposits located on the western region of theHamersley Ranges (Figure 2);A heavy haul railway from the mine area to a port location at Cape Preston (approximately160km);Iron ore stockpiles, processing, blending and ship loading facilities at the port location; andCapital investment in the order of$A4.0 billionAPI completed the Feasibility Study (FS) forStage 1 of the West Pilbara Iron Ore Project(the “Project”) in June 2010. The FS reportsthe technical and financial viability of theproposed 30Mtpa Stage 1 development.Aquila Resources has put its $7.4 billionWest Pilbara iron ore project on hold at leastthrough June 2013 due to fundingdifficulties.Aquila and its partners AMCI, a mininginvestment firm, and South Korean steelgiant Posco, effectively froze the project lastSeptember, when iron ore prices hit a threeyearlow. They had failed to agree on abudget for the year to June 2013 and sentthe dispute into arbitration. 23 The WestPilbara Iron Ore project has won stateenvironmental approval for its proposedAnketell Port, but still needs rail and portconstruction approvals, key to its plans for exporting 30 million tonnes a year of ore.23http://www.smh.com.au/business/mining-and-resources/aquila-puts-74b-iron-ore-project-on-ice-20130204-2dthi.html#ixzz2MvQQ7CCa (SMH 3 Feb 2013)73

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyThe West Australian state government has said it will not approve construction of Anketell Port until it iscertain the project's backers have the funds to build a mine, a 282 km rail line and the multi-user port,which will depend on what has become an increasingly volatile iron ore market.74

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyAppendix 4:Rio Tinto iron ore in the PilbaraRio Tinto iron ore operations in the Pilbara have a current annual capacity of 237 million tonnes, withadvanced plans to increase capacity to 290 million tonnes by 2013, on a pathway to 360 million tonnesby 2015. With a network of 14 mines, three shipping terminals and the largest privately owned heavyfreight rail network in Australia, its Pilbara operations make up a major part of the company’s iron oreactivities globally. Operations began in 1966 and are well positioned to meet the growing needs of theworld's iron and steel industry.Strongly underpinning this goal is the roll out of Autonomous Haulage Systems (AHS) across its Pilbaramines. The next operation to venture into driverless trucks will be Rio Tinto’s latest developmentB2/Nammuldi, which will see the world’s largest roll out of autonomous fleet.In the Pilbara, Rio Tinto wholly own Hamersley Iron's eight mines and also operate the Hope Downs mine(50:50 joint venture between Rio Tinto and Hancock Prospecting Pty Limited), the Channar mine (RioTinto: 60 per cent) and the Eastern Range mine (Rio Tinto: 54 per cent). Iron ore operations in the Pilbaraalso include a 53 per cent interest in Robe River Iron Associates' three mines: Mesa J, MesaA/Warramboo and West Angelas.Port facilities are located at Dampier and Cape Lambert.Pastoral stations: Rio Tinto holds six pastoral stations in the Pilbara - Karratha, Hamersley, Rocklea,Juna, Yalleen and Yarraloola, and self-manage five.Rio Tinto has recently won approval from the state to expand its Nammuldi mine and build a 130megawatt power station, a $3 billion iron ore project that is part of its plans to increase annual capacityto 360 million tonnes by 2015.75

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyAppendix 5:GorgonThe Gorgon gas project involves the development of the Greater Gorgon gas fields, subsea gas-gatheringinfrastructure, and a liquefied natural gas (LNG) plant on Barrow Island. The project also includes adomestic gas component. It is currently under construction and once completed, will become Australia'sfourth LNG export development.LNG sales agreements have been reached between the joint venturers and customers in China, India,Japan and South Korea.Chevron Australia has executed Sale and Purchase Agreements (SPAs) with Osaka Gas (1.375Mtpafor 25 years and 1.25 percent equity in the Gorgon Project), Tokyo Gas (1.1Mtpa for 25 years and 1percent equity), Chubu Electric Power (1.44Mtpa for 25 years and 0.417 percent equity in the GorgonProject) and GS Caltex of South Korea (0.5Mtpa for 20 years from Gorgon and Chevron system gas).Chevron Australia also has Heads of Agreements with Korea Gas Corporation (KOGAS) (1.5Mtpa for 15years); Nippon Oil Corporation (0.3 Mtpa for 15 years) and Kyushu Electric (0.3 Mtpa for 15 years).Shell has entered into long-term LNG sale and purchase agreements with PetroChina InternationalCompany Limited and BP Singapore Pte. Limited and also has secured capacity at LNG receivingterminals including the terminals at Energia Costa Azul in Baja California, Mexico and Hazira in Gujarat,India.An Australian subsidiary of ExxonMobil has signed long-term sales and purchase agreements withPetronet LNG Limited of India and PetroChina International Company Limited for the supply of LNG fromthe Gorgon Project. The agreement with Petronet LNG is for the supply of approximately 1.5 Mtpa ofLNG over a 20-year term while the agreement with PetroChina is for the supply of approximately 2.25Mtpa over a 20-year term. Together, these two sales and purchase agreements commit the ExxonMobilsubsidiary's share of LNG from the 15 Mtpa Gorgon LNG Project.Under the provisions of the Barrow Island Act (2003), the joint venturers are required to reserve 2000petajoules of gas for delivery into the domestic market. The Gorgon Joint Venture announced plans toestablish a domestic gas project, including plans for progressive expansion to enable delivery of 300terajoules of gas per day into the domestic transmission system. Chevron have indicated that deliveriesof Gorgon domestic gas will commence around the time of start-up of the third LNG train.76

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyAppendix 6:Examples of regional universities, AustraliaThere are a number of precedents for a substantial regional university in a town of the scale of Karrathaand larger. Examples include:Regional universitiesInstitution Students Location /populationJames CookUniversityTownsvilleUniversity of NewEngland,Armidale NSW11,500including1,500internationalStudents17,000,including12,500 on-linestudentsTownsville –175,00026,000 (Armidale Dumaresq Shire)NotesMajor research themes: Tropical Ecosystems, Conservation and Climate Change Industries and Economies in the Tropics Peoples and Societies in the Tropics Tropical Health, Medicine and BiosecurityResearch priorities: Food and water security; smart science, smarttechnology; Climate change and environmental sustainability;protecting biodiversity, effective policies; Health and wellbeing in rural communities; socialexclusion, health inequity, mental health, social policy; Australia’s regional history, regional memory, regionalidentity; protection and promotion of cultural heritage; Regional and rural development, sustainability,prosperity and peace.Charles SturtUniversity, Multicampus:Bathurstpopulation :37,000Goulbourn30,000Orange: 38,000Port Macquarie44,300Dubbo: 39,500Wagga Wagga58,000Students on CSU's Dubbo Campus have access to: networked library wireless internet connection clinical laboratory Nursing laboratory interactive video studio Interactive Learning Centre (state of the artcomputing laboratory),CSU's Wagga Wagga Campus facilities include: state-of-the-art veterinary science clinical centreand laboratories equine centre77

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyInstitution Students Location /populationEdith CowanUniversityCQUniversityMulti-campusUniversity ofBallaratMulti-campusPilbara Institute –Curtin DomesticStudy Centre10 students(ref: GoodUniversitiesguide)BunburycampusMacKayEmeraldGladstoneBundabergNoosaGeraldtonBallaratAraratHorshamStawellKarrathaNotes commercial winery television production studio state-of-the-art dental clinic medical centre and nutrition clinic networked library animation studio wireless internet connectionThe range of courses offered on campus includes nursing,primary and early childhood education, social work,accounting and business.78

Shire of Roebourne Local Planning StrategyTechnical Report A1: Economic Development StrategyAppendix 7:Prospective Resources Projects, PilbaraProject Company State Location TypeAnketell Point port Fortescue Metals Group / MCC / Aquila WA Pilbara New project n/a y 350000 ktpa Iron Ore 2500-5000Balla Balla project (phase I) Forge Resources WA 90 km E of Karratha New project n/a y 6000 kt Magnetite 1000Balla Balla project (phase II) Forge Resources / Todd Capital WA 90 km E of Karratha New project n/a y 4000 kt Magnetite 500-1000Balla Balla slurry pipe and port infrastructure Forge Resources WA Port Hedland New project n/a y 6000 ktpa Iron Ore 310Balmoral South magnetite project (stage 1) Australasian Resources WA 100 km NE of Onslow New project 2017 y 12000 kt Magnetite 3300Balmoral South magnetite project (stage 2) Australasian Resources WA 100 km NE of Onslow Expansion n/a y 12000 kt Magnetite 2500-5000Balnaves Development Project Apache Energy / KUFPEC WA 180 km NW of Dampier new project 2014 y 30 kbpd Oil 429Buckland Project Iron Ore Holdings WA Pilbara New project 2015 y 8000 kt Hematite 500-1000Burrup ammonium nitrate plant Orica / Yarra / Apache WA Burrup Peninsula New project 2015 y 330 kt Ammonium nitrate 775 600 65Cape Lambert port and rail expansion Rio Tinto / Hancock Prospecting WA 40 km N of Karratha Expansion 2013 y 60000 ktpa Iron Ore 5166Cape Lambert port expansion Rio Tinto / Hancock Prospecting WA 40 km N of Karratha Expansion 2015 y 70000 ktpa Iron Ore 3100Coniston Oil Field Project Apache Energy / Inpex WA 50 km N of Exmouth expansion 2014 y 22 kbpd Oil 526EstimatedStart UpPubliclyAnnouncedFeasibility StageDampier–Bunbury gas pipeline (DBNGP)DBP WA Dampier to Bunbury Expansionn/a y 100 PJ pa Gas 800expansion (stage 5C)Equus Hess WA 300 km W of Dampier new project 2018+ y n/a Gas/LNG 1500 - 2500Fletcher-Finucane Santos / KUFPEC / Nippon Oil / Tap Oil WA Carnarvon Basin new project 2013 y 15 kbpd Oil 490Greater Western Flank - Phase 1 Woodside Energy / BHP Billiton / BP / Chevron / WA Carnarvon Basin expansion2016 y n/a Gas 2300Shell / Japan Australia LNGHamersley Iron Brockman 4 project (Stage 2) Rio Tinto WA Pilbara Expansion 2012 y 18000 kt Hematite 1070Hardey Aquila Resources WA 180 km SW ofNew project2016 y 10000 kt Hematite 1500-2500PannawonicaIron Valley Project Iron Ore Holdings WA Pilbara New project n/a y 15000 kt Hematite 250 - 500Julimar Development Project Apache / KUFPEC WA 180 km NW of Dampier new project 2016 y 2.1 tcf Gas 1200Koodaideri Project Rio Tinto WA Pilbara New project 2016 y 70000 kt Hematite 7000Marandoo Rio Tinto WA Pilbara Expansion 2014 y n/a Hematite 1070 700Marda Southern Cross Goldfields WA 122km N of Southern New projectCross2014 y 35000 oz Gold 25Nammuldi expansion Rio Tinto WA Pilbara Expansion 2014 y 26000 kt Hematite 2140NWS North Rankin B Woodside Energy / BHP Billiton / BP / Chevron / WA 150 km NW of Dampier expansionShell / Japan Australia LNG2013 y 967 PJ pa Gas 5000Sherlock Bay Australasian Resources / Metals Australia WA 100 km E of Karratha New project na y 9 kt Nickel 0-250Sino Iron Project CITIC Pacific Mining WA Cape Preston New project 2013 y 24000 kt Magnetite 8400 4500 800Spar 2 Apache Energy / Santos WA 120 km N of Onslow new project 2015 y 18 PJ pa Gas 117West Pilbara Aquila Resources / AMCI WA Pilbara New project n/a y 30000 kt Hematite 7400Western Turner Syncline II Rio Tinto WA 30 km W of Tom Price Expansion 2012 y 9000 kt HematiteCommittedCompletedEstimatedNewCapacityCapacityUnitResourceIndicativeCostEstimate $mConstructionEmploymentEstimateOperatingEmploymentEstimate79