SACOME 2016-17

South Australian Chamber of Mines and Energy 2017 Annual Report

South Australian Chamber of Mines and Energy 2017 Annual Report


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The South Australian Chamber of Mines and Energy (<strong>SACOME</strong>) is the peak industry<br />

body representing companies with interests in the minerals, energy, extractive, oil<br />

& gas and renewables sector in South Australia (SA); including those who provide<br />

services to them.<br />

A not-for-profit, non-government organisation;<br />

<strong>SACOME</strong> facilitates opportunity, drives debate,<br />

brings stakeholders together and advocates<br />

for change to generate new investment, create<br />

jobs and encourage imagination and innovation<br />

– ensuring our state’s future prosperity remains<br />

front and centre.<br />

<strong>SACOME</strong> acknowledges the Councillors, who<br />

have volunteered their expertise and time<br />

during the <strong>2016</strong>/<strong>17</strong> year, including departing<br />

Councillors Alison Snel – Flinders Port Holdings<br />

and Jonathon Glew – Gypsum Resources.<br />



<strong>2016</strong>-<strong>17</strong> <strong>2016</strong>/<strong>17</strong> HIGHLIGHTS 4<br />

STRATEGY 6<br />





<strong>2016</strong>-<strong>17</strong> EVENTS SPONSORS 21 <strong>17</strong><br />

MEMBERS 18<br />

<strong>2016</strong>/<strong>17</strong> SPONSORS 19<br />


<strong>SACOME</strong> Councillors left to right: Andrew Stocks - Iron Road, Mike Flynn, Andrew Dyda - Finlaysons, Wendy Roxbee -<br />

Senex, Andrew Cole - OZ Minerals, Kymberly Sinclair - Gypsum Resources, Vicki Brown, Rob Malinauskas - Santos,<br />

Terry Burgess - <strong>SACOME</strong> President, Greg Hall - Rex Minerals & <strong>SACOME</strong> Vice President, Mark Dayman - Fyfe,<br />

Stewart Lammin - Flinders Port Holdings, Jacqui McGill - BHP & <strong>SACOME</strong> Vice President, Rebecca Knol - <strong>SACOME</strong> CEO,<br />

Chris Jamieson - Beach Energy, George McKenzie, Alice McCleary - Archer Exploration.<br />

Annual Report 20<strong>17</strong>

president’s report<br />

CEO’s message<br />

The past year has continued to be<br />

challenging for our members, however<br />

there are some signs of an upturn,<br />

particularly for the mining sector.<br />

This year has seen the approval of Iron<br />

Road’s Central Eyre Iron Project Mining<br />

Lease and Development Application, Iluka is<br />

recommencing operations at Jacinth-Ambrosia<br />

Mine, OZ Minerals submitted its Mining Lease<br />

application for Carrapateena, BHP is developing<br />

the Southern Mine Area at Olympic Dam<br />

and Hillgrove is considering underground<br />

development at Kanmantoo.<br />

There has also been exploration activity with<br />

companies such as BHP, Minotaur Exploration<br />

and Archer Exploration.<br />

In the oil and gas sector, the decision by BP not<br />

to drill in the Great Australian Bight (GAB) was<br />

disappointing, but recent developments with<br />

Statoil taking over two of the leases, including the<br />

Stromlo 1 well, and Chevron’s continued activity<br />

could see drilling underway in the GAB next year.<br />

The PACE gas initiatives, Beach Energy’s stronger<br />

gas production, and increased drilling activity<br />

in the Cooper and Eromanga Basins by Santos,<br />

Beach Energy, Senex and other companies adds<br />

more positive news for the sector.<br />

Energy security, reliability and affordability has<br />

been a prominent concern of our members for<br />

some time. The South Australian Government<br />

announced a range of independent initiatives<br />

for the state’s energy. The long-awaited Finkel<br />

Review on the Future Security of the National<br />

Electricity Market also offers some alternatives to<br />

consider.<br />

While there are positive initiatives, particularly<br />

with respect to leadership shown from <strong>SACOME</strong><br />

on the Australian Competition and Consumer<br />

Commission (ACCC) submission for collective<br />

electricity supply negotiation, energy in South<br />

Australia remains an area of concern for most<br />

businesses.<br />

As has been widely reported, several jurisdictions<br />

in Australia have announced sweeping bans<br />

or moratoria on gas development. Victoria<br />

has stopped all onshore gas exploration and<br />

development, and Tasmania along with New<br />

South Wales have banned hydraulic fracturing.<br />

With the state election in 2018, <strong>SACOME</strong> will<br />

be focusing on the manifestos of the various<br />

political parties and groupings in the coming<br />

months. If the assessment and approval of<br />

resource projects is left to regulators, supported<br />

by sound regulatory systems, South Australia<br />

can continue to be one of few jurisdictions in<br />

the country where resource companies do not<br />

have to factor in sovereign risk in exploration and<br />

development investment decisions.<br />

<strong>SACOME</strong> is well positioned to support its<br />

members in this changing resources<br />

environment and Council acknowledges the<br />

efforts of its dedicated team. <strong>SACOME</strong> Council<br />

appointed a new CEO, Rebecca Knol, in late <strong>2016</strong><br />

who will prepare <strong>SACOME</strong> to respond to future<br />

developments, which will continue to affect the<br />

sector.<br />

The <strong>SACOME</strong> Council is appreciative of members’<br />

support and look forward to a continued longterm<br />

relationship.<br />

Terry Burgess<br />

President<br />

This year has been one of change for<br />

South Australia’s peak mining and<br />

energy association. Joining <strong>SACOME</strong> as<br />

CEO has provided the opportunity to<br />

reflect and refresh the organisation’s<br />

strategic focus and create member<br />

value.<br />

<strong>SACOME</strong>’s fundamentals have not changed;<br />

we influence policy, advocate on behalf of<br />

our members and connect members with<br />

opportunities to enhance resource projects and<br />

attract investment.<br />

Significant challenges throughout the year<br />

have tested the resilience of the resources<br />

sector – a rejection from the citizens’ jury on<br />

a nuclear waste repository for SA, escalating<br />

electricity prices, restricted domestic gas supply<br />

and a severe storm that lead to disruptions to<br />

electricity supply.<br />

Some of the key challenges for the sector are<br />

access to land and stakeholder engagement.<br />

These require a collective response, with<br />

success for our sector depending on effective<br />

collaboration.<br />

<strong>SACOME</strong>’s commitment to cross sector dialogue<br />

during the historic review of the state’s mining<br />

acts resulted in benefits to both the mining and<br />

agricultural sectors.<br />

<strong>SACOME</strong>’s response to the state’s energy crisis<br />

provided leadership in establishing a multisectoral<br />

power consortium. With representation<br />

from resources, processing, food & wine,<br />

manufacturing, agriculture, retail and education<br />

sector, this consortium has the potential to put<br />

downward pressure on wholesale electricity<br />

pricing throughout SA.<br />

Advocacy remains front and centre for<br />

<strong>SACOME</strong> with a focus on State Economic<br />

Development, Legislation & Regulation, Energy<br />

and Infrastructure. <strong>SACOME</strong> has continued to<br />

support commodity specific strategies, including<br />

the Copper Strategy and Magnetite Strategy,<br />

and will continue to advocate for growth of the<br />

sector.<br />

There is no shortage of imagination and<br />

innovation in the resources sector and<br />

through effective partnering <strong>SACOME</strong> hosted<br />

an Innovation Summit and Futures Forum,<br />

showcasing advances in the digital mine and<br />

clustering space, exploring ways to reduce the<br />

cost of compliance and expanding markets. We<br />

continue to actively support Mining Equipment,<br />

Technology and Services (METS) sector.<br />

With the support of members and sponsors we<br />

held many other outstanding events throughout<br />

the year. These events were strategically placed<br />

to drive debate around key sector issues to<br />

shape policy and provide thought leadership<br />

opportunity for our members.<br />

The year ahead and the opportunities to be<br />

leveraged are clear. <strong>SACOME</strong> commits to driving<br />

robust policy positions to influence government<br />

decisions, as well as looking around corners to<br />

provide agile opportunities.<br />

I would like to thank the <strong>SACOME</strong> Council and<br />

all our staff for their support and commitment to<br />

creating value for our members - driving positive<br />

outcomes for South Australia.<br />

Rebecca Knol<br />

Chief Executive Officer<br />

2 South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 3

<strong>2016</strong>-<strong>17</strong> HIGHLIGHTS<br />

#1<br />

ACCC authorisation to bulk buy power<br />

According to Australian Energy Market Operator data in <strong>2016</strong>-<strong>17</strong>, South Australia<br />

had the most volatile and expensive wholesale electricity prices in Australia and<br />

affordable long-term contracts were not available. <strong>SACOME</strong> received approval<br />

from the ACCC for 22 companies to aggregate their load to improve bargaining<br />

position and establish more cost competitive supply contracts; and potentially<br />

apply downward pressure on wholesale electricity prices.<br />

<strong>SACOME</strong> members are the largest contributors to copper and uranium<br />

production in Australia<br />

Copper<br />

South Australia 31%<br />

Queensland 28%<br />

New South Wales 22%<br />

Western Australia 19%*<br />

Uranium<br />

South Australia 73%<br />

Northern Territory 27%<br />

SA hosts 25% of the world’s uranium resources and 80% of Australia’s uranium<br />

resources. 1<br />

SAcome Together<br />

Over 250 across sector representatives came together to celebrate SA’s ability to<br />

collaborate to generate new investment, create jobs and encourage imagination<br />

and innovation at <strong>SACOME</strong>’s annual gala. The event aimed to ensure SA’s future<br />

prosperity remains front and centre.<br />

The evening featured the presentation of the highly anticipated Premier’s<br />

Community Excellence Awards in Mining & Energy. Congratulations are<br />

extended to:<br />

o Excellence in Supporting Communities - winner BHP Olympic Dam<br />

o Excellence in Leadership (Women in Resources) - commendation to BHP<br />

Olympic Dam<br />

o Excellence in Social Inclusion - joint winners Iluka Resources and OZ Minerals/<br />

Kokatha Aboriginal Corporation<br />

<strong>SACOME</strong> raised nearly $5,000 through a Silent Auction held on the night, with<br />

proceeds shared between two member not-for-profits: Nature Foundation SA<br />

and Lifeline Adelaide.<br />

Mining Acts review<br />

In its submission, <strong>SACOME</strong> sought changes to the framework of the Mining Act,<br />

to make it workable for miners and the SA community. Key recommendations<br />

include:<br />

o Modernisation of processes to improve operational efficiencies and make<br />

clearer for all stakeholders<br />

o Streamlining of the mining lease approvals process to make it more workable<br />

for industry and transparent for stakeholders<br />

o Improving access to land to ensure the process is efficient and affordable for<br />

all parties<br />

Dirt TV (<strong>2016</strong>)<br />

Dirt TV is an innovative video competition for Year 7-12 students which entered<br />

its fourth year in <strong>2016</strong>. The competition engaged student groups who created<br />

a video profiling what mining and energy means to them. Entries highlighted<br />

various concepts within the resources sector including; economic growth,<br />

employment opportunities, and consumer use of mining products.<br />

Josh Langman from Westminster School won the $5,000 BHP Billiton Best Overall<br />

Video, in addition to the $1,000 Heathgate Resources People’s Choice Award for<br />

his video.<br />

Winners<br />

BHP Billiton Best Overall Entry<br />

Josh Langman, Westminster School – Mining, but wait there’s more!<br />

Heathgate Resources People’s Choice Award<br />

Josh Langman, Westminster School – Mining, but wait there’s more!<br />

Santos Best Director Award<br />

Sebastian Deverson, St Johns Grammar – It’s our future<br />

Best Writing Award<br />

Alice McVann, Loreto College – Mining and Technology<br />

Best Music Award<br />

Jordan Miegel and Oliver Douglas, St Johns Grammar – Mining the music of life<br />

Special Commendation (writing)<br />

Liliana Carletti, Pedare Christian College – Thank you mining<br />

Special Commendation (animation)<br />

Daniel Simmonds, Salisbury East High School – What mining means for people<br />

*Source: Department of Industry <strong>2016</strong>CY figures<br />

1 Source: Department of State Development<br />

4 South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong><br />


STRATEGY - 3 pillars<br />

STRATEGY - 4 policy positions<br />

<strong>SACOME</strong> positions itself front and centre on the issues that will not only deliver a<br />

profitable and sustainable resources sector but drive growth and productivity to the<br />

South Australian economy.<br />

As a membership organisation, our role is to drive quality policy direction and high-level advocacy<br />

to create value for the sector. Our industry members have a primary interest in the minerals, energy,<br />

extractive, oil & gas and renewables sectors and inform this debate.<br />


We will help create value for each of our members and recognise the<br />

importance of strengthening our relationships<br />

o Building a broader and deeper understanding of members’ companies and<br />

objectives to better service their needs<br />

o Creating partnerships with our members to enable improved effectiveness<br />

o Continually improving processes, services and communications with members<br />

for optimal engagement<br />

To deliver on our strategy, <strong>SACOME</strong>’s policy position focuses on four priority themes:<br />

State Economic Development<br />

Ensuring a pipeline of discoveries and projects to support a sustainable and<br />

profitable resources sector, contributing to the SA economy<br />

Energy<br />

Energy reform requires a balanced approach to provide secure, reliable and<br />

affordable energy for all, with greater access to oil and gas<br />

POLICY<br />

We will engage with all levels of government to support and enable future<br />

growth of the resources industry<br />

o Advocating for Government policies and legislation that promote the growth<br />

and sustainability of the SA resources sector<br />

o Working with Government to identify opportunities for Government<br />

engagement in key multi-user infrastructure<br />

o Assisting Government in assessing, identifying and proposing best practice<br />

initiatives to attract investment<br />

Infrastructure<br />

Addressing bottlenecks to ‘open up’ the north and west of the state to<br />

boost productivity throughout the SA economy<br />

community<br />

We will build support within the South Australian community for the<br />

resources industry<br />

o Improving awareness of the economic and social role played by the resources<br />

sector through influencing community leaders and the media<br />

o Increasing understanding of the role and benefits of mined minerals and<br />

petroleum and these industries in SA amongst our youth<br />

o Working to prevent and, where necessary, respond to misapprehensions and<br />

misinformation about the resources sector<br />

Legislation & Regulation<br />

Influence the development of efficient, effective and transparent regulation<br />

of the resources sector to promote investment<br />

6<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 7


State Economic Development<br />

The resources sector in SA is an essential part of<br />

the state’s economy. To harness SA’s prosperity,<br />

government policy and regulation must<br />

encourage further economic development<br />

within the resources sector. State economic<br />

development is underpinned by investments<br />

within the resources sector, and provides<br />

significant benefits to the state, including<br />

a broader economic base and increased<br />

employment opportunities.<br />

The commodity specific strategies which have<br />

been developed by the Department of Premier<br />

and Cabinet provide the perfect setting to help<br />

maximise opportunities from the state’s mineral<br />

resources and encourage exploration in these<br />

areas.<br />

Copper & Magnetite strategy<br />

The South Australian Copper Strategy was<br />

launched in February <strong>2016</strong> and sets out a pathway<br />

to harness the state’s rich copper endowment.<br />

The strategy’s objectives are to triple production<br />

from 300,000 to 1 million tonnes per annum<br />

by 2030; and to make SA the nation’s leading<br />

copper producer.<br />

<strong>SACOME</strong> has been an active participant in<br />

the Copper Strategy Implementation Team<br />

throughout <strong>2016</strong>-<strong>17</strong>, providing insight and<br />

feedback to the application and enhancement of<br />

the Copper Strategy in SA. Input was provided at<br />

workshops as part of the creation of the Copper<br />

Development Road Map, facilitated by the<br />

Department of Premier and Cabinet in February,<br />

as well as the Water for Resources workshop<br />

in March. The inaugural ‘Copper to the World’<br />

Conference in Adelaide brought together national<br />

and international speakers and emphasised the<br />

benefits of this commodity specific strategy as a<br />

tool to enhance opportunities for our state.<br />

<strong>SACOME</strong> has also been involved in the<br />

development of SA’s Magnetite Strategy, and<br />

provided a comprehensive and supportive<br />

response to the Magnetite Strategy directions<br />

paper. The directions paper provides a framework<br />

for the development of a magnetite strategy in SA<br />

to chart a course to achieve target production of 50<br />

million tonnes of magnetite per annum by 2030.<br />

The implementation of a long-term, sustainable<br />

magnetite strategy could realise an estimated<br />

14 billion tonnes of untapped wealth for all<br />

South Australians through increased investment,<br />

royalties, jobs, export trade, and further<br />

development of key markets.<br />

Moratoria<br />

Moratoria, introduced by various<br />

state governments and political<br />

parties across Australia during<br />

<strong>2016</strong>-<strong>17</strong>, has lead to uncertainty<br />

and isolation of strategic<br />

resources. Moratoria on the use<br />

of hydraulic fracture stimulation<br />

have been announced and<br />

contradict the findings of various<br />

parliamentary and independent<br />

inquiries into fracking. These<br />

inquires continue to conclude<br />

that the use of hydraulic fracturing<br />

is safe, when managed and<br />

regulated according to global<br />

industry standards.<br />

The prospect of moratoria, which<br />

prevents mineral and petroleum exploration<br />

and production, introduces unnecessary risks<br />

to developing resources in a jurisdiction. The<br />

sovereign risk - as evidenced by international<br />

surveys including the Fraser Institute - highlights<br />

that poorly developed or sudden shifts in policy<br />

or governance will lead to a loss of investment.<br />

<strong>SACOME</strong> continues to advocate against any<br />

unwarranted moratoria that may be introduced<br />

in SA.<br />

Nuclear Fuel Cycle Royal Commission<br />

<strong>SACOME</strong> supported the findings of the<br />

Nuclear Fuel Cycle Royal Commission and their<br />

implementation, particularly the expansion of<br />

uranium exploration and mining. The findings<br />

continued discussion and business development<br />

on the potential for SA to store spent nuclear<br />

material.<br />

The Royal Commission made twelve<br />

recommendations based on the findings<br />

of its 15-month investigation. The first five<br />

recommendations referred to realising<br />

opportunities and reducing the risks of<br />

uranium mining and milling.<br />

The Royal Commission also recommended that<br />

there be further investment in precompetitive<br />

data for uranium.<br />

Other recommendations included the pursuit<br />

of a high level nuclear waste facility and the<br />

removal of Commonwealth nuclear prohibitions<br />

for future involvement in the nuclear fuel cycle.<br />

Public consultation was undertaken in a parallel<br />

process on advancing a nuclear waste facility<br />

with the consultation and response agency<br />

‘Know Nuclear’ and the Citizens Jury. While<br />

disappointed with the result of the citizens<br />

jury, the broader community consultation<br />

highlighted that there is merit in continuing the<br />

discussion on the nuclear waste repository.<br />

<strong>SACOME</strong> will continue to pursue dialogue through<br />

thought leadership sessions, uranium seminars and<br />

opinion pieces.<br />

8<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 9


Energy<br />

The National Electricity Market (NEM), particularly<br />

the SA electricity market, is undergoing<br />

transformational change.<br />

Fossil-fuel synchronous generation is being<br />

displaced by intermittent, non-synchronous<br />

generation at both the utility scale and the<br />

residential level. This change in generation mix<br />

is challenging the designs built into the power<br />

system and the regulatory framework in which<br />

it operates.<br />

These challenges are more acute in SA due to<br />

the combination of its generation mix and the<br />

geographical location to the rest of the NEM.<br />

SA is expected to experience a sustained period<br />

of high electricity prices and increased price<br />

volatility.<br />

Affordable energy<br />

Having access to a competitive and reasonably<br />

priced reliable supply of electricity is critical for<br />

all businesses, but particularly so for high energy<br />

use resource sector companies. It will directly<br />

influence decisions concerning the scope of<br />

ongoing business operations in SA during, and<br />

potentially beyond the transformation change of<br />

the energy system.<br />

Australian Competition and Consumer<br />

Commission (ACCC)<br />

<strong>SACOME</strong> successfully achieved full authorisation<br />

from the ACCC to establish a buyers group of<br />

large SA electricity consumers to jointly procure<br />

electricity.<br />

An application on behalf of the group was first<br />

lodged on 4 January 20<strong>17</strong> seeking authorisation<br />

to collectively seek offers from electricity<br />

suppliers and negotiate long term contracts for<br />

the supply of the combined electricity load.<br />

The members of this group comprise of<br />

companies in the mining, manufacturing,<br />

agricultural, retail, tertiary education and food and<br />

wine sectors. These companies operate in global<br />

markets where they compete against businesses<br />

that enjoy lower input costs. Electricity represents<br />

a major input cost for these companies and they<br />

require competitively priced and reliable<br />

electricity.<br />

The ACCC provided an interim authorisation on<br />

13 April 20<strong>17</strong> and the final determination on<br />

the application on <strong>17</strong> May 20<strong>17</strong>. It is expected<br />

that the combined electricity load of these<br />

companies could be of sufficient scale to<br />

encourage new generation to enter; or with<br />

existing under-utilised generation to re-enter the<br />

SA electricity generation market.<br />

As a result, these companies should have access<br />

to more competitive electricity pricing and<br />

increased reliability which will have a positive<br />

impact on the scope and sustainability of their<br />

present and future operations in SA. Additionally,<br />

the certainty of a firm load will enable electricity<br />

suppliers to better manage their fuel source<br />

portfolios which is likely to have a flow on effect<br />

to all consumers due to increased competition in<br />

the retail electricity market.<br />

The ACCC Chairman, Rod Sims, said “This joint<br />

tender has the potential to change wholesale<br />

market dynamics by allowing generators to use<br />

existing plants more efficiently, or encouraging<br />

new entrants into South Australian electricity<br />

generation. This could bring the benefits of<br />

increased competition in the wholesale market for<br />

electricity”.<br />

A tender process will determine the most<br />

competitive priced arrangement for the supply<br />

of electricity for these members. A preferred<br />

supplier will be selected with a new contract<br />

start date from 1 January 2018.<br />

Reliability and Security<br />

Finkel Review<br />

The Independent Review into the Future Security<br />

of the National Electricity Market, chaired by<br />

Dr Alan Finkel AO, was commissioned by the<br />

Council of Australian Governments (COAG)<br />

Energy Ministers in October <strong>2016</strong>. The intention<br />

was to review the current reliability and security<br />

of the NEM, and provide advice on a coordinated<br />

national reform blueprint.<br />

<strong>SACOME</strong> submitted nine recommendations in<br />

response to the Finkel Review. The Chamber’s<br />

position is that the assessment of system security<br />

and strength must evaluate future developments<br />

on a technology neutral basis to provide tangible<br />

solutions with appropriate powers to direct, if<br />

poor system strength is identified.<br />

The review identified low carbon generation as a<br />

key metric to consider. <strong>SACOME</strong> noted that any<br />

low carbon polices should strive to unify under a<br />

single policy framework to avoid a fragmented<br />

national system where market failures occur and<br />

system strength is put at risk.<br />

The final report was delivered in June 20<strong>17</strong> to<br />

COAG, recommending processes to increase<br />

security and reliability, rewarding consumers and<br />

lowering emissions. The recommendations were<br />

built upon three pillars of an orderly transition,<br />

full system planning and stronger governance.<br />

<strong>SACOME</strong> recommendations were reflected<br />

in the key pillars, particularly on technology<br />

neutrality, stronger governance and assessment.<br />

10<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 11


State Energy Plan<br />

The SA Government released the ‘Our Energy<br />

Plan’ in March 20<strong>17</strong>.<br />

Components of the plan aligned with <strong>SACOME</strong><br />

recommendations to the Finkel Review into the<br />

future security of the NEM, to improve security of<br />

the electricity system.<br />

This included the additional powers to direct the<br />

market under certain circumstances and market<br />

mechanisms to enhance energy security.<br />

Moratorium is inconsistent with the strong<br />

regulatory system, safety record and scientific<br />

facts of gas exploration, development technology<br />

and practices in SA.<br />

<strong>SACOME</strong> supported the State Government’s<br />

announcement of Plan for Accelerating<br />

Exploration (PACE) funding to develop new gas<br />

resources to supply the local energy market.<br />

Climate Change<br />

Government initiatives to address climate<br />

change are characterised by a complex array<br />

of policy instruments at the federal level, and<br />

complicated by state and territory policies that<br />

have created distortions in electricity markets,<br />

leading to negative outcomes for price, reliability<br />

and security.<br />

<strong>SACOME</strong>’s submission to the Federal<br />

Government’s review of climate change policies<br />

emphasised the need for policies to be guided<br />

by the following key principles:<br />

o Market based<br />

o Trade competitive<br />

o Simple and efficient<br />

o Effective in reducing emissions<br />

o Technology neutral<br />

o Broad based<br />

o Complement energy policies<br />

A national framework is critical to ensure policies<br />

at all levels of government are assessed against a<br />

criterion that ensures competitive price, security<br />

and reliability, in addressing agreed national<br />

emissions reduction.<br />

Infrastructure<br />

<strong>SACOME</strong>’s priority is to identify the capacity<br />

needs of freight, ports, electricity, water and<br />

gas, to understand the required infrastructure<br />

development to secure the future of SA’s<br />

resources sector. Access routes to global markets<br />

that are affordable and efficient are essential<br />

for SA resource projects to be competitive in a<br />

globalised market.<br />

There is a critical need to address bottlenecks to<br />

open the north and west of the state - boosting<br />

productivity throughout the economy.<br />

Sealing the Strzelecki ($450m), improved<br />

freight corridor at Port Augusta ($235m), and<br />

transmission upgrading (up to $550m) to<br />

support new resources development on the<br />

Eyre Peninsula are top of the list of priority<br />

infrastructure needs for the industry.<br />

<strong>SACOME</strong> continues to advocate for investment<br />

in business case development to deliver shovel<br />

ready projects and leverage industry infrastructure<br />

requirements to support the wider SA economy and<br />

community.<br />

<strong>SACOME</strong> will continue to support government<br />

initiatives and policies that deliver secure and<br />

competitively priced electricity.<br />

Access to gas<br />

<strong>SACOME</strong> opposes any moratorium on gas<br />

exploration or development in the state. Gas is a<br />

crucial part of the energy mix and to implement<br />

moratoria on known resources of gas is likely to<br />

lead to higher energy prices in SA.<br />

12<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 13


POLICY – submissions<br />

Legislation & Regulation<br />

<strong>SACOME</strong> continues to proactively influence<br />

the development of efficient, effective and<br />

transparent regulation of the resources sector.<br />

A regulatory framework that streamlines<br />

assessment and approvals of projects, while<br />

ensuring social and environmental benefit, is<br />

essential to making SA a jurisdiction of choice for<br />

resources activity and investment.<br />

It is important that the SA regulatory framework<br />

for the resources sector is predictable and<br />

transparent to attract investment in the state.<br />

Such a framework is essential for potential<br />

greenfields exploration programs, which<br />

are high-risk processes that rely on quality<br />

geophysical data and best-practice regulation.<br />

Access to land in a timely manner is also required<br />

to allow these greenfields exploration programs<br />

to undertake the necessary work required to<br />

investigate prospective targets.<br />

Mining Acts Review<br />

A major review of South Australia’s Mining<br />

Acts has commenced and is an opportunity to<br />

modernise and enhance the risk-based approach<br />

to mining regulation in the state. <strong>SACOME</strong>’s<br />

recommendations to the review are key to<br />

facilitating economic development of the state’s<br />

mineral resources, and commit to initiatives that<br />

encourage multiple and sequential land use.<br />

<strong>SACOME</strong> is committed to working collaboratively<br />

with other sectors to ensure that mining and<br />

other land uses can sustainably co-exist.<br />

priority to realise the benefits of the mining<br />

industry for all South Australians, and any<br />

amendments to the Act must reflect this priority.<br />

Following on from <strong>SACOME</strong>’s submission, the<br />

Chamber continues to engage with the Department<br />

of Premier and Cabinet on the proposed changes to<br />

the legislation.<br />

Amendments to the Aboriginal Heritage Act<br />

Since a review in 2008, <strong>SACOME</strong> has been<br />

advocating for changes to the Aboriginal Heritage<br />

Act 1988 (SA) that complement the Native Title<br />

system.<br />

This is to make certain no additional regulatory<br />

burden is placed on resource development<br />

approvals. The amendments provide improved<br />

activity efficiencies for the resources industry.<br />

Leading Practice<br />

Mining Acts Review<br />

Mining Act 1971<br />

Independent Review<br />

into the Future Security<br />

of the NEM<br />

(Finkel Review)<br />

AEMC System Security<br />

Market Frameworks<br />

Review<br />

State Energy Security<br />

Target draft Regulations<br />

Essential Services<br />

Commission of SA<br />

inquiry into the licensing<br />

arrangements for<br />

generators in SA<br />

Australian Energy<br />

Market Commission<br />

(AEMC) System Security<br />

Market Frameworks<br />

Review<br />

Federal Government<br />

Review of Climate<br />

Change Policies<br />

Simplify Day 20<strong>17</strong><br />

Magnetite Strategy<br />

Directions Paper<br />

South Australian Energy<br />

Transformation - RIT-T:<br />

Project Specification<br />

Consultation Report<br />

Aboriginal Heritage<br />

Regulations <strong>2016</strong> and<br />

Guidelines<br />

Native Vegetation<br />

Regulations <strong>2016</strong><br />

Review of the State<br />

Natural Resources<br />

Management Plan<br />

(NRM)<br />

Draft management<br />

plans for SA parks<br />

and reserves<br />

The changes proposed by <strong>SACOME</strong> provide<br />

tools for the transparent regulation of the Act,<br />

allowing greater transparency for stakeholders.<br />

These changes would align SA’s Mining Act with<br />

other jurisdictions nationally and internationally.<br />

<strong>SACOME</strong> supports SA Government’s strategic<br />

Senate Environment and Communications Reference<br />

Committee Inquiry into the Rehabilitation of Mining<br />

and Resources Projects, as it relates to Commonwealth<br />

Responsibilities<br />

14<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 15


<strong>SACOME</strong> has continued to provide informative, engaging, collaborative and relevant<br />

events for members throughout the year.<br />

SAcome Together Annual Gala<br />

The SAcome Together Annual Gala was held<br />

on 26 May at the Hilton Adelaide. The event<br />

celebrated SA’s ability to collaborate across sectors<br />

to generate new investment, create jobs and<br />

encourage imagination and innovation – ensuring<br />

our state’s future prosperity remains front and<br />

centre. The gala brought together hundreds<br />

of attendees to celebrate industry successes as<br />

well as the winners of the Premier’s Community<br />

Excellence Awards in Mining & Energy, which<br />

was announced during the evening.<br />

This event was sponsored by:<br />

Dirt TV<br />

Dirt TV is a video competition for SA students<br />

in years 7-12 that focused on what mining<br />

and energy means to them. The competition<br />

encourages students to research the facts<br />

and value of the resources sector, including<br />

environmental, uses of mined products,<br />

importance of the sector in SA and how the<br />

sector impacts their everyday lives. Student’s<br />

learnings are shared widely through the<br />

People’s Choice Award, which requires voting by<br />

members of the public.<br />

In <strong>2016</strong>, children across several schools in SA<br />

entered the competition. The competition<br />

culminated in a red-carpet Awards Ceremony in<br />

October <strong>2016</strong> at the Adelaide Oval.<br />

This event was sponsored by:<br />

L-R: Sebastian Deverson, St Johns Grammar, Santos<br />

Best Director Award; Alice McVann, Loreto College,<br />

Best Writing Award; Josh Langman, Westminster<br />

School, BHP Billiton Best Overall Entry and Heathgate<br />

Resources People’s Choice Award and Jordan Miegel, St<br />

Johns Grammar, joint winner of Best Music Award.<br />

Women in Resources SA<br />

<strong>SACOME</strong> continued to support women<br />

through the Women in Resources SA (WinRSA)<br />

Committee by hosting the prestigious Women in<br />

Resources National Awards in September <strong>2016</strong>.<br />

With seven states represented, the ceremony<br />

recognised and celebrated the contribution<br />

and achievement of women in the resources<br />

sector. WinRSA also jointly ran a successful<br />

mentoring program with WIMnetSA, providing<br />

opportunities for female mentees to connect<br />

with experienced individuals to provide<br />

professional and personal development support<br />

and advice.<br />

The National Awards were sponsored by:<br />

Exceptional Young Woman in Australian<br />

Resources Award Winner: Jasmine Richards<br />

(Senior Environmental Advisor, OZ Minerals SA).<br />

16<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> <strong>17</strong>


SA Mines Emergency Response Competition<br />

<strong>SACOME</strong> hosted two South Australian Mines<br />

Emergency Response Competitions (SAMERC)<br />

this reporting year. In its 8th successful year, the<br />

competition promotes and improves resource<br />

sector workplace safety skills as well as building<br />

relationships.<br />

Winners <strong>2016</strong> 20<strong>17</strong><br />

Overall winner Challenger Gold Mine BHP Billiton Olympic Dam 1<br />

Theory Challenger Gold Mine Challenger Gold Mine<br />

First Aid BHP Billiton Olympic Dam BHP Billiton Olympic Dam 1<br />

Firefighting BHP Billiton Olympic Dam BHP Billiton Olympic Dam 2<br />

Vertical/rope rescue OZ Minerals Prominent Hill BHP Billiton Olympic Dam 1<br />

Industrial rescue Challenger Gold Mine Newcrest Mining Cadia Valley<br />

Team skills OZ Minerals Prominent Hill BHP Billiton Olympic Dam 1<br />

Breathing apparatus OZ Minerals Prominent Hill BHP Billiton Olympic Dam 1<br />

Confined space search Challenger Gold Mine BHP Billiton Olympic Dam 1<br />

and rescue<br />

Road crash rescue BHP Billiton Olympic Dam Challenger Gold Mine<br />

Best Team Captain Challenger Gold Mine - BHP Billiton Olympic Dam 1 -<br />

Daniel O’Reilly<br />

Ben Treagus<br />

<strong>2016</strong> Sponsors 20<strong>17</strong> Sponsors<br />

The <strong>2016</strong> competition was held at the CFS State<br />

Training Centre and Brukunga Mine Site in the<br />

Adelaide Hills. The 20<strong>17</strong> competition travelled<br />

to BHP’s Olympic Dam. The high adrenaline<br />

competition tested ‘team work’ in the most<br />

realistic circumstances possible.<br />

Thought Leadership Series<br />

<strong>SACOME</strong> launched its Thought Leadership Series<br />

in 20<strong>17</strong> to leverage national and international<br />

thought leader experience. These events are<br />

hosted by member companies and provide<br />

fertile learning ground for members only;<br />

providing an opportunity to explore ideas and<br />

keep abreast of technological advancements.<br />

World class leaders in their field who have<br />

presented this year were: John Jung, CEO<br />

Greensmith Energy, Bob Jensen, crisis and<br />

risk management leader who investigated<br />

the Deepwater Horizon oil spill tragedy,<br />

Professor Mike Young, research chair in Water<br />

and Environmental Policy at the University<br />

of Adelaide, and Jessica Lovering, Director of<br />

Energy, Breakthrough Institute.<br />

Lunch Series<br />

<strong>SACOME</strong>’s lunch events over the <strong>2016</strong>-<strong>17</strong> period<br />

attracted record attendance with high profile<br />

speakers including the Hon. Tom Koutsantonis,<br />

Minister for Mineral Resources and Energy,<br />

and Jacqui McGill, Asset President - Olympic<br />

Dam, BHP.<br />

Breakfast Series<br />

Our Breakfast Series continued with<br />

opportunities for our members to profile projects<br />

and developments. Lincoln Minerals, Minotaur<br />

Exploration, Terramin Australia, Investigator<br />

Resources, Heathgate Resources and Finlaysons<br />

shared insights to participants.<br />

Future Forum<br />

The Minerals & Energy Services Future Forum<br />

was attended by over 250 participants, hearing<br />

from 4 keynote speakers and 16 expert panel<br />

members. The forum was the platform for the<br />

announcement of the Department of State<br />

Development’s South Australian Minerals and<br />

Energy Services Strategy, which discussed<br />

opportunities and challenges for the sector in<br />

SA and provided a framework to address and<br />

action recommendations. Keynotes and panel<br />

members shared ideas, generated discussion<br />

and built knowledge across the sector in the<br />

areas of collaboration, expanding markets, digital<br />

mines and compliance.<br />

Risk & Opportunity Symposium<br />

The Risk and Opportunity Symposium provided<br />

attendees with the opportunity to drive the<br />

debate around the creation of mindful safety<br />

cultures.<br />

The symposium brought together a diverse<br />

group of speakers from industry, academia and<br />

emergency services to share their perspectives<br />

and insightful learnings in the areas of risk<br />

management, operational excellence and safety<br />

in mining.<br />

SA Exploration & Mining Conference<br />

For the 16th year <strong>SACOME</strong> hosted the South<br />

Australian Exploration and Mining Conference – a<br />

premier event in the SA mining industry calendar.<br />

The single day conference attracted over 600<br />

delegates who heard 22 keynote presentations<br />

on exploration and mining projects in SA. The<br />

event also provided extensive networking<br />

opportunities for all attendees, concluding with<br />

the popular post-conference networking.<br />

GMUSG<br />

<strong>SACOME</strong> collaborated with Global Maintenance<br />

Upper Spencer Gulf (GMUSG) to present the<br />

12th GMUSG Conference and Trade Expo at Port<br />

Pirie. As always, the conference was a success<br />

with hundreds of industry delegates coming<br />

together to enjoy an informative, sector relevant<br />

two-day program.<br />

18<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 19

JOIN THE <strong>SACOME</strong> COMMUNITY<br />


Member-only benefits<br />

<strong>2016</strong>-<strong>17</strong> SPONSORS<br />

Creating membership value is at the core of<br />

<strong>SACOME</strong>’s business and we are committed<br />

to continually improve member-only<br />

benefits.<br />

Part of<br />

resources and<br />

energy<br />

community<br />

ENGAGE<br />

Stay ‘Front & Centre’ with access<br />

to agile, timely communication<br />

that brings important industry<br />

news direct to your inbox<br />

through eAlerts & eNews<br />

SELECT<br />

As a <strong>SACOME</strong> member<br />

you are part of a select group<br />

gaining exclusive access to<br />

industry specific events &<br />

activities, such as thought<br />

leadership series, breakfasts,<br />

networking functions &<br />

committees<br />





<strong>SACOME</strong><br />


Opportunity to enhance your<br />

company brand, activities &<br />

reputation by accessing our<br />

broad digital media platforms for<br />

communications. Collectively we can<br />

increase our share of voice when we<br />

celebrate the successes of<br />

each other<br />

Our members provide a<br />

powerhouse of experience &<br />

intellect, to leverage outcomes<br />

that shape South Australia’s<br />

resources & energy future.<br />

<strong>SACOME</strong> lobby on behalf of our<br />

members on issues that<br />

are important to them<br />


Success of our sector is dependent<br />

on collaboration. <strong>SACOME</strong> provide<br />

opportunities for cross sector conversations<br />

which encourage imagination & innovation<br />

for the future. Specifically, our committees<br />

enable members to discuss & debate issues,<br />

engage with policy experts & influence<br />

government decision-making through a<br />

united voice<br />

OFFERS<br />

As a member, you will receive<br />

preferential access to <strong>SACOME</strong><br />

hosted events & activities,<br />

media monitoring, partner<br />

events, business campaigns &<br />

sponsorship<br />

$<br />

Partnership with service members is an important component of <strong>SACOME</strong>’s membership portfolio, as<br />

these companies provide invaluable services to the resources supply chain.<br />

Underpinning www.sacome.org.au our success South Australian is the relationships Chamber of Mines & Energy we have with @Mining_EnergySA government. This South focus Australian ensures Chamber of <strong>SACOME</strong>’s<br />

Mines & Energy<br />

ongoing relevance to members in the next decade and beyond.<br />

As a member, you have a unique opportunity to invest further in <strong>SACOME</strong> as an annual or event specific<br />

sponsor.<br />

<strong>SACOME</strong> sponsorship is a memberonly<br />

opportunity that enables<br />

strategic engagement across the<br />

resource sector.<br />

Sponsorship provides smart brand positioning<br />

aligning your company to SA’s peak body for<br />

the resources sector.<br />

During 20<strong>17</strong>, <strong>SACOME</strong> welcomed new sponsor<br />

Heathgate Resources at the Premier sponsor level.<br />

This highest-level sponsorship is an endorsement<br />

of the great work we do, further supporting<br />

<strong>SACOME</strong> to deliver crucial policy objectives.<br />

Appreciation is also extended to our event<br />

sponsors for enabling our important sector<br />

development conversations to continue.<br />

PREMIER Sponsors<br />

Thank you to our <strong>2016</strong>-<strong>17</strong> sponsors for their<br />

significant contribution and support of the state’s<br />

resources sector:<br />

o Premier sponsors: BHP, Heathgate, Department<br />

of Premier and Cabinet<br />

o Diamond sponsors: OZ Minerals, Bureau Veritas<br />

o Platinum sponsors: Viva Energy, Iron Road<br />

o Gold sponsors: Finlaysons, PWC, Electranet<br />

o Silver sponsor: BP Developments<br />

o Copper sponsor: Exact Mining Services<br />

o Graphite sponsors: Alexander Symonds, Lincoln<br />

Minerals and Hillgrove Resources<br />

BHP’s Olympic Dam is one of the world’s largest ore bodies with significant<br />

deposits of copper, gold, uranium and silver. Employing more than 3,000<br />

people, the scale of the Olympic Dam orebody means it is a cornerstone of<br />

the resource industry and a generational resource for SA. In FY16, Olympic<br />

Dam produced 203 kilotonnes of copper cathode – the highest level of<br />

production since 2006 – and the operation is currently in an exciting period of<br />

sustainable growth. Through significant investment in infrastructure and with<br />

a move into the high-grade Southern Mine Area, the Olympic Dam operation<br />

will underpin jobs and economic development in SA into the future.<br />

Heathgate is an innovative mining and exploration company, operating<br />

the uranium mines in and around Beverley in the northern Flinders Ranges.<br />

Heathgate is proud of its 20-year association with <strong>SACOME</strong> and its 27 years<br />

of continued investment in the SA mining industry. Heathgate provides jobs<br />

and training opportunities for over 220 people at Beverley and Adelaide<br />

locations and actively works to provide employment opportunities to the<br />

Adnyamathanha aboriginal community.<br />

The Mineral Resources and Energy Resources Divisions of the Department for<br />

the Premier and Cabinet are committed to the responsible development of the<br />

state’s mineral and energy resource wealth to benefit all South Australians. The<br />

Divisions drive forward growth and sustainable development of SA’s resource<br />

assets by operating in an internationally respected regulatory framework,<br />

providing highly regarded geoscience initiatives (PACE) and delivering first<br />

class pre-competitive geoscientific information and data through the worldleading<br />

digital platform SARIG.<br />

20<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 21

<strong>2016</strong>-<strong>17</strong> SPONSORS<br />

DIAMOND Sponsors<br />

SILVER Sponsors<br />

PLATINUM Sponsors<br />

GOLD Sponsors<br />

OZ Minerals is a copper-focused company based in SA. Listed on the Australian Securities<br />

Exchange (ASX100), it has a growth strategy focused on creating value for all stakeholders.<br />

OZ Minerals owns and operates the copper-gold-silver mine at Prominent Hill and is<br />

developing one of Australia’s largest copper-gold resources at Carrapateena. The company<br />

also has a pipeline of eight early stage earn-in agreements with experienced exploration<br />

companies. It has a healthy cash balance and no debt.<br />

Bureau Veritas Minerals has a long history of providing high quality laboratory services to<br />

exploration and mining companies. As industry leaders in testing, inspection & certification,<br />

Bureau Veritas Minerals has extensive operations throughout Australia providing superior<br />

one-stop-shop solutions for a wide range of resources and commodities. Their extensive<br />

range of services includes geoanalytical testwork, mineral processing, metallurgy, mineralogy,<br />

coal testing, petroleum & gas testing, oil condition monitoring and more.<br />

Iron Road’s vision is to become a trusted and reliable supplier of premium iron concentrates<br />

to the Asian marketplace. The flagship project in achieving this vision is the Central Eyre Iron<br />

Project (CEIP) in South Australia. CEIP is a large scale development expected to produce<br />

24Mtpa of premium iron concentrate from the integrated mine, rail and port operations. Ore<br />

Reserves top 3.7 billion tonnes, providing for over 25 years of production.<br />

Viva Energy Australia’s mission is to keep local industry moving with quality fuels, chemicals,<br />

marine products and bitumen. Viva Energy is the exclusive Shell Lubricants Macro Distributor<br />

in Australia and Shell Licensee at Shell retail fuel stations. They are Dependable, Energetic<br />

and Committed with plans to invest $1 billion over the next five years, Viva Energy Australia<br />

are committed to building Australia’s energy future.<br />

Finlaysons Lawyers is a long-term partner of <strong>SACOME</strong> and a leading full service commercial law<br />

firm. With its head office in Adelaide, Finlaysons has nationally-recognised Resources, Energy,<br />

Native Title and Environment teams with in-depth and specialist experience in advising the<br />

minerals and energy sector, and strong networks across industry and government. Finlaysons<br />

provides commercial, practical and sustainable solutions to legal and regulatory issues faced by<br />

the sector throughout exploration, development, project approvals, financing and production.<br />

PwC are long-time supporters of <strong>SACOME</strong> whose purpose is to build trust in society and solve<br />

important problems. PwC are a network of firms in 157 countries with more than 223,000<br />

people who are committed to delivering quality in assurance, advisory and tax services. PwC<br />

is one of Australia’s leading professional services firms, bringing the power of their global<br />

network of firms to help Australian businesses, not-for-profit organisations and governments<br />

assess their performance and improve the way they work.<br />

COPPER Sponsor<br />

GRAPHITE Sponsors<br />

BP Australia is engaged in the exploration, production and development of oil, natural gas<br />

and liquefied natural gas; and the refining, transportation and marketing of petroleum and<br />

lubricant products.<br />

Exact Mining Services is a leading Mining and Civil Earthworks Contractor working<br />

predominantly in SA but also nationally. Exact Mining Services is based in Adelaide and<br />

currently provides contract services to major mining projects in the SA such as BHP Olympic<br />

Dam, Iluka Resources at Jacinth Ambrosia, Arrium Mining at Whyalla, WPG Resources at<br />

Tarcoola and CU River Mining at Cairn Hill near Coober Pedy.<br />

Alexander Symonds is one of SA’s leading surveying firms and has been a long-standing<br />

partner of the state’s mining and energy sector. Based in Kent Town and celebrating its 85th<br />

anniversary in 20<strong>17</strong>, the company has provided its cutting-edge surveying services to a host<br />

of SA resources projects over the years, from mine sites and wind farms to oil pipelines and<br />

gas plants.<br />

Lincoln Minerals assisted <strong>SACOME</strong> to develop the first ever Indiginous Land Use Agreement<br />

and is a committed SA exploration company undergoing the difficult transition from<br />

explorer to graphite miner. Lincoln has a Mineral Lease 35km north of Port Lincoln on Eyre<br />

Peninsula and is working towards developing a world class graphite mine and processing<br />

plant in Australia’s premier graphite province.<br />

Hillgrove Resources Limited is an Australian mining company listed on the ASX focused on<br />

developing its flagship Kanmantoo Copper Mine and associated regional exploration targets,<br />

located less than 55km from Adelaide in South Australia. Hillgrove employs approximately<br />

245 employees and contractors and is presently mining at the rate of approximately 20<br />

million tonnes per annum and produces up to 20,000 tonnes of copper per annum. Annual<br />

export earnings are in a range of $140 million to $<strong>17</strong>0 million.<br />

ElectraNet powers people’s lives by delivering safe, affordable and reliable solutions to<br />

power homes, businesses and the economy. A critical part of the electricity supply chain,<br />

their transmission network safely transports electricity over long distances to metropolitan,<br />

regional and remote areas. ElectraNet specialise in asset, project and contract management<br />

and their clients include power generators, South Australia’s electricity distributor, SA Power<br />

Networks, and large directly-connected clients.<br />

22<br />

South Australian Chamber of Mines and Energy<br />

Annual Report 20<strong>17</strong> 23


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