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SACOME Annual Report 2011-12

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CONTENTS<br />

Presidents <strong>Report</strong> 4<br />

Chief Executive <strong>Report</strong> 6<br />

Our Staff 8<br />

Voice of the resources industry in SA 10<br />

Environment & Sustainability <strong>12</strong><br />

Land Access 14<br />

Mining Act & Taxes 15<br />

Community Engagement 16<br />

Occupational Health & Safety 18<br />

Regional Infrastructure 20<br />

Membership Events 21<br />

Indigenous Relations 24<br />

Skills & Education 26<br />

Marketing & Communications 28<br />

Sponsors 30<br />

<strong>SACOME</strong> Membership 31<br />

<strong>Report</strong> of the Council Members 37<br />

Statement by Council Members 38<br />

Income Statement 39<br />

Statement of Recognised<br />

Income & Expenditure 39<br />

Balance Sheet 40<br />

Cash Flow Statement 41<br />

Discussion & Analysis 42<br />

Notes to the Financial Statements 43<br />

Independent Auditor’s <strong>Report</strong> 46<br />

2 2<br />

3


PRESIDENTS REPORT<br />

If one thing dominated our sector during the<br />

year under review it was the challenge of<br />

rising costs – both operating and capital costs.<br />

Australia now has the dubious honour of having<br />

mining costs amongst the highest in the world.<br />

The negative impact of this malaise is serious<br />

and no amount of ‘quality’ mineral resources<br />

can completely counteract this disadvantage.<br />

A key characteristic of the mining industry is the long<br />

term nature of most projects – decisions taken today<br />

may have no impact until years into the future. This<br />

characteristic is often not compatible with the shorter<br />

term nature of political life cycles.<br />

Despite these challenges, I continue to believe that<br />

the future of our mineral resources sector still burns<br />

brightly, although we must be eternally vigilant for<br />

actions that could kill our golden goose. We must all<br />

look for ways to continue the growth enjoyed by our<br />

sector in South Australia so that the benefits for our<br />

State and Australia continue for generations to come.<br />

Turning to Chamber activities for the year, these<br />

indicate just how busy we have been as our sector<br />

grows. An overview of some of these activities<br />

follows with more detail provided in the body of<br />

this publication.<br />

The annual Resources Industry dinner held in April<br />

was our biggest yet, with guests numbering close to<br />

600, the event was moved from the Hilton Hotel to<br />

the Adelaide Convention Centre to accommodate this<br />

anticipated increase.<br />

<strong>SACOME</strong>’s busy events team never has far to look<br />

for new presenters at our ever popular breakfast and<br />

lunch events - with South Australia’s local minerals<br />

and energy sector remaining a hive of activity amidst<br />

lowered commodity prices and the widely publicised<br />

increasing costs.<br />

The year also brought a wave of fresh policy issues to<br />

address in addition to longstanding concerns.<br />

Infrastructure needs, particularly a cape size vessel<br />

capable port, remained high on <strong>SACOME</strong>’s advocacy<br />

agenda. Other issues for the year included extensive<br />

lobbying against amendments to the Mining Act<br />

and individual and collaborative submissions on the<br />

Minerals Resources Rent Tax, together with numerous<br />

submissions in the environmental sphere, details of<br />

which can be found on page 13.<br />

One of <strong>SACOME</strong>’s successes for <strong>2011</strong>/<strong>12</strong><br />

was achieving a 66% adoption rate of our<br />

recommendations and amendments to the Woomera<br />

Prohibited Area Deed of Access. A good example of<br />

what can be achieved through effectively combining<br />

co-ordination with industry and active government<br />

engagement. <strong>SACOME</strong> held various workshops, direct<br />

meetings and consultations and developed a detailed<br />

submission on the key issues and policy objectives<br />

requiring amendment. These were then discussed at<br />

length and negotiated with the Woomera Prohibited<br />

Area Co-ordination Office (WPACO) and the<br />

government.<br />

<strong>SACOME</strong>’s activities in community engagement<br />

have certainly amplified over the year, with a<br />

highlight being the launch of our Code of Practice<br />

for Community and Stakeholder Engagement.<br />

The Code was developed in conjunction with<br />

CEGA and DMITRE and is just one of our growing<br />

activities in this area. Commended publicly by<br />

senior government, the Code is an excellent tool<br />

through which companies can demonstrate their<br />

commitment to this critical area - to their local<br />

communities, but also to government and other<br />

stakeholders.<br />

Another area where we are boosting efforts is that<br />

of China relationships. With regular attendance<br />

at the annual China Mining conference, including<br />

the coordination of a local industry component,<br />

relationships forged over recent years culminated<br />

in a Memorandum of Understanding with the<br />

China Chamber of Commerce of Metals, Minerals<br />

and Chemical Importers. Negotiated in June for<br />

signing in the new financial year, the MOU is<br />

expected to benefit <strong>SACOME</strong> and our members by<br />

facilitating enhanced communication of information,<br />

particularly in regards to trade and investment.<br />

All in all, the <strong>SACOME</strong> team continues to increase its<br />

breadth of activities in its role to serve the industry.<br />

The position of Researcher Analyst, created in 2010,<br />

has proved to be an excellent addition. Investigative<br />

outcomes over the year included the Mining Dollar<br />

<strong>Report</strong>, which detailed where SA’s resource mining<br />

companies spend their money for every $100 worth of<br />

resources extracted (rebuking the myth that miners are<br />

rolling in cash profits) and a revealing analysis of South<br />

Australia’s future energy options; both publicised in the<br />

SA Mines & Energy Journal and local media.<br />

A new HSEC Officer role was created over the year,<br />

providing solid support to the increasing demands<br />

arising from our expanding environmental and<br />

community relations work.<br />

Finally, on behalf of the council and myself I would like<br />

to thank each and every member of the team for their<br />

dedication and commitment under the outstanding<br />

leadership of our Chief Executive Jason Kuchel.<br />

I would also like to extend my sincere appreciation to<br />

our Councillors and those who volunteer their time<br />

and knowledge on our various committees.<br />

John Roberts<br />

President<br />

4 2<br />

5


CHIEF EXECUTIVE REPORT<br />

The <strong>2011</strong>/<strong>12</strong> membership year was<br />

characterised more than any other by the<br />

words “bringing together”.<br />

Industry associations are often seen purely as<br />

advocacy bodies, however over the last five years<br />

we have been striving to be more - much more.<br />

We have pro-actively sought to assist members<br />

with their broader needs, rather than dealing<br />

solely with Government policy and legislation,<br />

although there has been no shortage there. Over<br />

the last couple of years, the value of <strong>SACOME</strong> has<br />

repeatedly been proven in this regard, however<br />

this past year has seen us increasingly bringing<br />

industry together with government over some of<br />

the most difficult (and as yet unresolved ) issues<br />

surrounding land access.<br />

And it’s not just about bringing industry and<br />

communities together, but also about engagement<br />

with the media and community leaders.<br />

As of 30 June we are most of the way through a<br />

major study (using the South Australian Centre for<br />

Economic Studies) on the anticipated benefits our<br />

communities and South Australia as a whole will<br />

experience over the coming decade, as a result of<br />

our State’s resources industry. There is no doubt<br />

the results of this work will bring many community<br />

members who may be sitting on the fence in<br />

regards to their opinions on mining, to a much<br />

more supportive view point.<br />

<strong>SACOME</strong> has also embarked on a new program<br />

to provide tailored professional development<br />

Membership has continued to grow, albeit in a<br />

tough year where companies are watching every<br />

dollar.<br />

Raising capital, particularly for our junior explorers,<br />

is difficult to say the least. It seems however that<br />

during these tougher times, our members need<br />

us more than ever and we continue to look for<br />

opportunities to do more.<br />

To that end, we have been working closely<br />

with our equivalent in China with a view to<br />

encouraging investment at earlier stages, not just<br />

once a project is fully development ready.<br />

Of course, we have continued to lobby for a Flow<br />

Through Shares (or Exploration Tax Credit) scheme<br />

and will not relent on this important issue.<br />

to be very dedicated, and collectively they are<br />

providing exceptional services, evident by the<br />

constant positive feedback we receive. Should<br />

there be anything that your company needs, please<br />

call me or one of our team members and we<br />

would be most pleased to see how we can help.<br />

Our numbers of volunteers and committee<br />

participants have also increased and on behalf of all<br />

of our staff, I wish to thank them all for their efforts.<br />

I commend this report to you, which provides an<br />

excellent snapshot of a number of the key issues<br />

affecting South Australia’s mining and energy sector<br />

over the <strong>2011</strong>/<strong>12</strong> year, together with a summary of<br />

<strong>SACOME</strong>’s many activities and achievements.<br />

Jason Kuchel<br />

Chief Executive<br />

Although <strong>SACOME</strong> has continued to increase<br />

our services, we have managed to do so whilst<br />

still maintaining fiscal responsibility. Allowing for<br />

a $50,000 grant accounted for in the 2010/11<br />

financial year with the funds being expended in<br />

<strong>2011</strong>/<strong>12</strong>, we have effectively maintained a small<br />

<strong>SACOME</strong> has also worked tirelessly to create,<br />

launch and advocate for our Code of Practice<br />

for Community and Stakeholder Engagement.<br />

We firmly believe that successful community<br />

engagement will ultimately increase acceptance of<br />

resources companies and their projects, which will<br />

in turn lead to reductions in approval times.<br />

courses to meet the needs of our industry.<br />

This program will bring together and influence<br />

our member universities, registered training<br />

organisations (RTOs) and TAFE institutions to<br />

ensure courses contain the right content and<br />

are delivered in the form and timeframes to<br />

suit industry.<br />

surplus once again.<br />

In line with our growing membership and growing<br />

services, we have also increased our staff numbers<br />

by one and I am very proud of the team we have<br />

and their interactions with our members and<br />

stakeholders. Each of them has proven themselves<br />

6 2<br />

7


OUR STAFF<br />

As at September 20<strong>12</strong><br />

From left to right:<br />

Front: Nigel Long (Director Corporate Social Responsibility), Jonathon Forbes (Director Industry Development), Jason Kuchel (Chief Executive), John Cocks (Director Strategy<br />

and Governance), Megan Andrews (Director Membership and Communications), Emma Chesterman (Careers Promotion Manager).<br />

Middle: Aleisha Sullivan (Manager Events), Kate Fantinel (Communications Officer), Dayne Eckermann (Policy Analyst/Researcher), Lewis Stoll (HSE&C Project Officer),<br />

Lisa Jeffery (Indigenous Relations Manager), Rob Malcolm (Manager GAP).<br />

Back: Joel Callander (Manager Professional Development), Layla Mignone (Executive Assistant), Paula LaForgia (Receptionist/Administration Support Officer),<br />

Alison Snel (Manager Member Relations).<br />

Absent: Margaret Donaldson (Finance Officer).<br />

8 2<br />

9


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

VOICE OF THE RESOURCES<br />

INDUSTRY OF SOUTH AUSTRALIA<br />

The <strong>SACOME</strong> Council represents the mining,<br />

petroleum, extractive, exploration and service<br />

provider sections. The <strong>2011</strong>/<strong>12</strong> financial year saw<br />

several changes to the Council with <strong>SACOME</strong><br />

welcoming Mike Flynn and Steven Olsen as new<br />

councillors, replacing Iain McDougall, Ros DeGaris<br />

and Mark Parry.<br />

Councillors as at 30 June 20<strong>12</strong>:<br />

George McKenzie<br />

Finlaysons<br />

Mark McGeough<br />

Toro Energy<br />

Jim White<br />

Centrex Metals<br />

Michael Reed<br />

Worley Parsons<br />

Committees<br />

<strong>SACOME</strong> administers various committees with key<br />

focus areas. <strong>SACOME</strong> staff also participate on a<br />

myriad of external committees in our commitment<br />

to addressing the issues that affect South Australia’s<br />

mining and energy sector.<br />

<strong>SACOME</strong> extends its gratitude to all of its committee<br />

participants who generously donate their time and<br />

experience. As at 30 June 20<strong>12</strong>, <strong>SACOME</strong>’s current<br />

committees are:<br />

Editorial- SA Mines & Energy Journal<br />

Committee<br />

Chaired by: Megan Andrews<br />

Contact: Megan Andrews<br />

The SA Mines & Energy Journal Committee meets<br />

before work commences on the coming issue of the<br />

journal. Committee members include key members<br />

of our resources industry who are experienced and<br />

knowledgeable on various facets of the sector,<br />

ensuring the journal remains relevant, balanced and<br />

accurate.<br />

Executive Committee<br />

Chaired by: John Roberts<br />

Contact: Jason Kuchel<br />

John Roberts<br />

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

Mithril Resources<br />

Hans Umlauff<br />

Vice President<br />

Iluka Resources<br />

Terry Burgess<br />

OZ Minerals<br />

Graham Ascough<br />

Mithril Resources<br />

Alice McCleary<br />

Archer Exploration<br />

Terry Kallis<br />

Petratherm<br />

Exploration Committee<br />

Chaired by: Graham Ascough<br />

Contact: Jonathon Forbes<br />

The <strong>SACOME</strong> Exploration Committee continues to<br />

be a valuable forum for responding to a range of<br />

issues affecting exploration in South Australia. In<br />

<strong>2011</strong>/<strong>12</strong> the committee was very active and provided<br />

direction on the MRRT, infrastructure needs, marine<br />

parks, Community Engagement, royalties, Indigenous<br />

relations and land access issues including the WPA<br />

submission, to name just a few.<br />

Occupational Health & Safety Committee<br />

Stefan Buys<br />

BHP Billiton<br />

Mike Flynn<br />

Santos<br />

Steven Olsen<br />

Rex Minerals<br />

Chaired by: Nigel Long<br />

Contact: Nigel Long<br />

10 2<br />

11


ENVIRONMENT & SUSTAINABILITY<br />

Environmental regulation continues to be<br />

a substantial matter for the industry in<br />

terms of the approvals process, land access<br />

and cost. The levy on water use in the Far<br />

North Prescribed Wells Area continues to<br />

grow, with the resources industry carrying<br />

a disproportionate burden and there is a<br />

proposal to introduce protection zoning<br />

within a dual proclamation park that will<br />

impact the sector. <strong>SACOME</strong> lobbied to protect<br />

members interests for these and other issues.<br />

Natural Resources Management<br />

The resources sector remains outside the peak<br />

advisor body for the State Government: the NRM<br />

Council. <strong>SACOME</strong> has sought amendments to<br />

the NRM Act since 2010 to recognise it as a<br />

formal peak Body in the context of the NRM Act<br />

and the equivalent entitlement as other peak<br />

bodies within the Act to nominate persons for<br />

selection by the Minister as members on the<br />

NRM Council.<br />

All regions should be assured of appropriate and<br />

sustainable funding to address their capacity<br />

and resourcing pressures if they are to achieve<br />

government and NRM objectives.<br />

The new NRM Plan launched in June notes the<br />

resources sector as a stakeholder, however this falls<br />

short of the recognition <strong>SACOME</strong> is seeking for<br />

the industry within NRM in SA. The new plan does<br />

not make the business case for natural resources<br />

management in the state which is essential to get<br />

business buy-in and does not address the inequitable<br />

and unsustainable funding model.<br />

<strong>SACOME</strong> wrote to the Minister for Environment and<br />

Conservation concerned there are regions heavily<br />

dependent on the resources industry to acquire<br />

secure funding; which is neither equitable nor<br />

sustainable, and recommending a full review and<br />

re-structuring of the way NRM is funded in SA to<br />

address the disparities in the system.<br />

The Minister however elected not to undertake<br />

a review, stating that additional funding through<br />

environment and conservation portfolio as well as<br />

State recurrent funding was adequate to meeting<br />

legislative requirements.<br />

Management Plans for reserves<br />

under NPWS<br />

The resources industry supports the government’s<br />

risk based decision-making approach to the approval<br />

of resources development in South Australia, as it is<br />

outcome focused rather than prescriptive.<br />

Recent draft management plans for reserves<br />

under the National Parks and Wildlife Act 1972<br />

are introducing protection zoning within dual<br />

proclamation parks that are proposing to arbitrary<br />

prohibit new infrastructure development. This is<br />

not supported by <strong>SACOME</strong>. Consistent with the<br />

intent of dual proclamation, management plans<br />

should continue to ensure the rights to sustainable<br />

economic development of resources can be<br />

exercised while remaining sensitive to environmental<br />

objectives. The industry accepts its activities being<br />

subject to reasonable conditions to protect and<br />

manage important environmental features and<br />

factors of cultural sensitivity. However, introducing<br />

a blanket prohibition is a blunt policy that will have<br />

the effect of preventing sensible development of<br />

mineral resources.<br />

<strong>SACOME</strong> has, and will continue to, argue that<br />

the Program for Environment Protection and<br />

Rehabilitation already provides a risk-based<br />

mechanism for managing explorations and mining<br />

(including infrastructure, environmental impacts and<br />

rehabilitation), in consultation with the Department<br />

of Manufacturing, Innovation, Trade, Resources<br />

and Energy (DMITRE) and the Department of<br />

Environment, Water and Natural resources (DEWNR),<br />

to avoid and minimise impacts on factors of<br />

environmental and cultural sensitivity.<br />

Energy<br />

The Carbon Tax was passed into law by Federal<br />

Parliament in November <strong>2011</strong> to commence on 1 July<br />

20<strong>12</strong>. The tax will be a hot policy issue for 20<strong>12</strong>/13<br />

as the industry begins to feel the effects of a price<br />

on greenhouse gas emissions on the cost of doing<br />

business in Australia which will have implications<br />

for our trade competitiveness and investment<br />

attractiveness. The Renewable Energy Target is to be<br />

reviewed in late 20<strong>12</strong>.<br />

<strong>SACOME</strong>s position is that with the introduction of the<br />

Carbon tax which is meant to incentivise investment<br />

in low emission technologies the RET should be<br />

not be increased or extended beyond the existing<br />

timeframe of the scheme.<br />

Submissions<br />

Over the year <strong>SACOME</strong> made submissions on behalf<br />

of the resources industry to the following:<br />

• SA Arid Lands NRM Board draft Business Plan<br />

• Bimbowrie Conservation Park draft management<br />

plan (DEWNR)<br />

• State Natural Resources Management Plan South<br />

Australia 20<strong>12</strong>-2017 (NRM Council)<br />

• Wind Farms – Notification regime and land<br />

division and Pastoral Land Management and<br />

Conservation (renewable Energy) Amendment Bill<br />

<strong>2011</strong> (Renewables SA)<br />

• Carbon intensity of South Australia’s new<br />

electricity generation Discussion Paper<br />

(Renewables SA)<br />

• Protected Areas on Private land Discussion Paper<br />

(DEWNR)<br />

• Proposed regulation changes to the Environment<br />

and Biodiversity Protection Act 1999 (SEWPC)<br />

• Mineral exploration and mining Discussion Paper<br />

– Development of the new Water Allocation Plan<br />

(WAP) for the Southern Basins and Musgrave<br />

Prescribed Wells Area (Eyre Peninsula NRM Board)<br />

• Workers compensation and rehabilitation<br />

practices with respect to return to work training,<br />

retraining and work hardening programs<br />

(Parliamentary Committee on Occupational Safety,<br />

Rehabilitation and Compensation)<br />

<strong>12</strong> 2<br />

13


LAND ACCESS<br />

MINING ACT & TAXES<br />

Land Access has been of particular interest to<br />

the industry over the past <strong>12</strong> months, with a<br />

number of reviews and legislation proposals<br />

undertaken. Coupled with ongoing issues as<br />

explorers push further into farming land, the<br />

issue of access to land for our industry has<br />

never been more important.<br />

Woomera Prohibited Area<br />

In May 2010, the Federal Government announced<br />

a review of the Woomera Prohibited Area (WPA),<br />

led by Dr Alan Hawke. Then in November 2010, the<br />

Federal Government released the Review’s Interim<br />

<strong>Report</strong> whereby interested parties were invited to<br />

comment on the recommendations, prior to the<br />

Hawke WPA Review Team submitting a final report to<br />

the Government.<br />

Through effective coordination with industry and active<br />

engagement with Government departments and the<br />

Woomera Co-ordination office (WPACO), <strong>SACOME</strong><br />

achieved a 66% adoption rate of recommendations<br />

and amendments to the deed of access.<br />

A new deed of access aligned with the<br />

recommendations from the Hawke review was drafted<br />

with government and industry support. In March 20<strong>12</strong><br />

<strong>SACOME</strong> met with representatives from WPACO,<br />

Departments of Defence and Finance, and Treasury.<br />

Following the submissions <strong>SACOME</strong> was invited,<br />

along with industry members, to a workshop to<br />

discuss the legal technicalities of the new deed.<br />

Following these consultations <strong>SACOME</strong> made a<br />

submission on the Draft Deed of Access in June 20<strong>12</strong>.<br />

Parks and Reserves<br />

<strong>SACOME</strong> supports a risk based decision-making<br />

approach to the management of parks and reserves<br />

as it enables an outcome focused approach rather<br />

than a prescriptive approach. Through the Program<br />

for Environment Protection and Rehabilitation this<br />

approach provides a risk based mechanism for<br />

managing exploration and mining.<br />

The recent draft changes to the management plans<br />

for Reserves under the National Parks and Wildlife<br />

Act 1972 run contrary to this position. A further<br />

description of the effects of the changes is covered<br />

on page 13 of the <strong>Annual</strong> <strong>Report</strong>.<br />

Arkaroola<br />

In mid-2010 the State government released a plan<br />

“Seeking a Balance” for the management of the<br />

Arkaroola region in the Northern Flinders Ranges.<br />

In early <strong>2011</strong> the State government announced<br />

intentions for future conservation management<br />

of the region with one option to exclude mining,<br />

limiting mining in sensitive areas, or designating the<br />

area as a National Park.<br />

<strong>SACOME</strong> has advocated that there are existing<br />

legislative measures in place that ensure the<br />

area is protected from activities that would affect<br />

conservation of this area’s natural character and<br />

environment.<br />

The Premier announced on 22 July <strong>2011</strong> that the<br />

Arkaroola area would be declared in the Mining Act<br />

as an area exempt from mining. On 26 April 20<strong>12</strong><br />

the Arkaroola Protection Act 20<strong>12</strong> came into effect<br />

banning mining in this region.<br />

However on 29 August <strong>2011</strong> the State government<br />

passed a special act to declare the Arkaroola area as<br />

land exempt from the Mining Act 1971.<br />

South Australia’s mining and energy industry<br />

faced a number of regulatory and policy<br />

issues during <strong>2011</strong>/<strong>12</strong>. <strong>SACOME</strong> continued to<br />

work with Government and industry members<br />

with a view to overcoming barriers to the<br />

sectors’ progression.<br />

MRRT and PRRT<br />

The Federal Government announced in June 2010<br />

a Minerals Resource Rent Tax (MRRT), applicable<br />

to iron ore and coal projects from 1 July 20<strong>12</strong>. The<br />

agreement included the extension of the current<br />

Petroleum Resource Rent Tax (PRRT) regime to all<br />

Australian onshore and offshore oil and gas projects.<br />

<strong>SACOME</strong> was part of an Industry Submission made<br />

by the Minerals Council of Australia (MCA) as well as<br />

providing our own submissions after consulting with<br />

our members. <strong>SACOME</strong> led discussions on behalf of<br />

its membership and outlined the main points of its<br />

submissions to the PTG, Federal Treasury, Department<br />

of Resources, Energy and Tourism, and State<br />

government departments.<br />

The MRRT and PRRT were voted into law on<br />

19 February 20<strong>12</strong> with the first taxation period to<br />

begin on 1 June 20<strong>12</strong>.<br />

Mining Legislation<br />

<strong>SACOME</strong> was heavily involved with the review<br />

of the Mining Act 1971 and Mining Regulations<br />

1998 throughout 2010 and early <strong>2011</strong>. Apart from<br />

numerous meetings and submissions regarding<br />

proposed changes to the Mining Act going back to<br />

2009, <strong>SACOME</strong> lobbied hard against a number of<br />

amendments that were put up by various parties<br />

once the Bill had been introduced into Parliament<br />

including; proposals to exempt all land in the Greater<br />

Adelaide Area, onerous processes involving the<br />

granting of an exploration lease, and an amendment<br />

to ban mining at Arkaroola.<br />

<strong>SACOME</strong> was successful in lobbying the<br />

government to weigh up and reconsider these<br />

amendments.<br />

In August <strong>2011</strong> <strong>SACOME</strong> held a member only<br />

briefing on the amendments and key impacts on<br />

explorers and miners.<br />

14 2<br />

15


COMMUNITY ENGAGEMENT<br />

<strong>SACOME</strong> was successful in attracting financial<br />

assistance for <strong>2011</strong>-<strong>12</strong> under the PACE 2020<br />

Partnerships program to scope, implement<br />

and manage a multi-faceted project titled<br />

‘Community Engagement in the Minerals and<br />

Energy Sector’.<br />

Community Engagement Code of<br />

Practice<br />

Work in this area included a revision of the Code<br />

of Practice for Community and Stakeholder<br />

Engagement, which was formally launched at<br />

<strong>SACOME</strong>’s South Australian Resources Industry<br />

Dinner on 30 April 20<strong>12</strong>.<br />

The code is a universally benchmarked document<br />

which provides a set of guidelines for companies<br />

when formulating strategies for community<br />

engagement and incorporating community-based<br />

initiatives into their strategic framework.<br />

To accompany the Code of Practice, a logo under the<br />

phrase “Committed to Community Partnerships” was<br />

developed. This logo is available to companies who<br />

are signatories to the Code to use on their website,<br />

letterhead, email, presentations and community<br />

related material as a public demonstration of their<br />

commitment to the Code’s principals. The logo<br />

is prominent on the certificate of commitment<br />

presented to signatories.<br />

Code of Conduct for access to<br />

rural land<br />

With the amendments to the Mining Act coming into<br />

effect on 1 July <strong>2011</strong>, the <strong>SACOME</strong> Code of Conduct<br />

for Access to Rural Land, which is endorsed by the<br />

SA Farmers’ Federation (SAFF), required updating to<br />

address new provisions within the Act. A draft was<br />

completed for consideration by SAFF and the new<br />

code is expected to be launched by the end of 20<strong>12</strong>.<br />

Community Engagement workshop<br />

Community and stakeholder engagement is a critical<br />

pillar for the sustainability of the resources industry<br />

in SA. It is fundamental for resources and energy<br />

companies to operate in a manner that conveys<br />

a positive message in order to obtain their ‘social<br />

licence to operate’ -arguably the most crucial ‘licence’<br />

a company holds.<br />

The potential for ‘lock the gate’ style campaigns<br />

is real and companies must have a culture of<br />

engagement within their business that projects<br />

trust, confidence, inclusiveness, and empathy to<br />

communities.<br />

<strong>SACOME</strong> held an industry-based workshop on<br />

community engagement in May 20<strong>12</strong>.<br />

The workshop was very well attended with 80<br />

registrations. Participants heard from a variety of<br />

presenters including DMITRE - on the regulators<br />

expectations and perspectives, and cega (Community<br />

Engagement Group Australia) - a leading practitioner<br />

in community engagement strategies.<br />

Presentations from a resource company, a farming<br />

landholder and a traditional owner shared insights<br />

and experiences to provide a case study on how one<br />

company embarked on engaging with its community<br />

and stakeholders in the development of its project.<br />

Highlights from this example included perspectives<br />

on what worked, what didn’t and the various pitfalls<br />

together with the importance of issue awareness,<br />

adapting to changing circumstances and looking at<br />

ways to strengthen dialogue between all parties.<br />

An overview of ILUA’s and opportunities that<br />

can be incorporated into agreements to facilitate<br />

constructive engagement, relationships and<br />

employment opportunities was also provided.<br />

Regional presence<br />

<strong>SACOME</strong> has been actively developing relationships<br />

with regional groups. Over the year, the Chief<br />

Executive, Directors and other staff were involved<br />

in a number of forums to discuss the development<br />

of exploration and mining in South Australia;<br />

the economic and social influences of resources<br />

development, community engagement, land and<br />

water management.<br />

Presentations were made to local councils, regional<br />

development committees, Natural Resources<br />

Management Boards, and through public open days.<br />

The Code of Practice for Community and Stakeholder<br />

Engagement was promoted as a key element in<br />

assisting relationships between the resources industry<br />

and regional communities.<br />

<strong>SACOME</strong> coordinated a ‘Resources Industry’ marquee<br />

for the Yorke Peninsula Field Days in September<br />

<strong>2011</strong>. Four exploration members with projects on the<br />

Yorke Peninsula participated. The Field Days provided<br />

an excellent opportunity to present the industry as<br />

part of the regional community, have companies<br />

available to answer queries from landholders and<br />

develop <strong>SACOME</strong>’s profile.<br />

The Premier’s Awards for<br />

Community Excellence in<br />

Mining and Energy<br />

The Premier’s Awards are now in their second year<br />

and have been extended to include two categories;<br />

Excellence in Social Inclusion and Excellence in<br />

Community Participation. <strong>SACOME</strong> continued to be<br />

involved with the awards and were represented on<br />

the judging panel. OZ Minerals again won the Social<br />

Inclusion category and Santos was the winner of<br />

the Community Excellence category. The field was<br />

so strong a number of companies were also highly<br />

commended this year – PepinNini Minerals, Iluka<br />

Resources and Leighton Contractors.<br />

All entries displayed a commonality in their strong<br />

commitment to promoting employment and social<br />

development opportunities, fostering positive<br />

relationships in the communities they work in,<br />

and hands on participation in a broad range of<br />

community activities. These companies recognised<br />

that engaging with the community and their<br />

workforce was pivotal to their success.<br />

16 2<br />

17


OCCUPATIONAL HEALTH & SAFETY<br />

Safety is the Number One priority for the<br />

South Australian mining and energy sector.<br />

<strong>SACOME</strong> implements practical approaches<br />

to build capacity and skills in Occupational<br />

Health & Safety. <strong>SACOME</strong> continues to<br />

support a uniform approach to OH&S in<br />

Australia to reduce the regulatory burden<br />

faced by companies that operate in a number<br />

of jurisdictions.<br />

Emerging Mines OH&S Project<br />

<strong>SACOME</strong> successfully negotiated funding for two<br />

years of $50,000pa with the Mining & Quarrying<br />

Occupational Health and Safety Committee<br />

(MAQOHSC) to assist emerging South Australian<br />

mining companies assess their OH&S needs and<br />

implement improved systems, with the emphasis on<br />

leaving mining staff more experienced and<br />

skilled in OH&S.<br />

The program was jointly managed by <strong>SACOME</strong> and<br />

MAQOHSC and was completed over the <strong>2011</strong>-<strong>12</strong><br />

financial year.<br />

Assisting a total of eight companies receive OH&S<br />

advice and training, the specific areas included: the<br />

development of high level management standards,<br />

a desktop review of drilling and exploration safety,<br />

contractor management safety, working at heights<br />

procedure, a legislative compliance audit, developing<br />

a comprehensive procedure for incident investigation<br />

and coaching and mentoring safety staff on site.<br />

<strong>SACOME</strong> would like to thank MAQOHSC and MACSS<br />

Group for making this program such a success.<br />

SA Mines Rescue Competition<br />

The 20<strong>12</strong> Mines Rescue Competition returned to<br />

the Adelaide Hills in April this year with events held<br />

across three sites; Angas Zinc mine at Strathalbyn,<br />

the CFS Training Centre at Brukunga and Kanmantoo<br />

Copper Mine, Kanmantoo. Teams competed in a<br />

range of activities including underground rescue, rope<br />

rescues, using breathing apparatus, fire fighting, first<br />

aid, theory, basic skills and road crash rescue.<br />

Perilya from Broken Hill won the competition and<br />

was presented with the <strong>SACOME</strong> Perpetual Trophy,<br />

edging out teams from Kingsgate’s Challenger, OZ<br />

Minerals’ Prominent Hill, BHP Billiton’s Olympic Dam,<br />

UraniumOne’s Honeymoon and Terramin’s Angas<br />

Zinc mine.<br />

sacome would like to thank the team of<br />

dedicated volunteers involved in organising and<br />

running the event.<br />

18 2<br />

19


egional infrastructure<br />

MEMBERSHIP EVENTS<br />

The lack of adequate infrastructure to enable<br />

South Australia to reach its mining potential<br />

remained strong on <strong>SACOME</strong>’s agenda over<br />

the year.<br />

Many miners and renewable-energy providers will<br />

need to share common-user infrastructure, including<br />

roads, rail, ports, water, energy and transmission lines.<br />

<strong>SACOME</strong> has directed efforts to lobbying the State<br />

Government, the State Opposition (especially during<br />

the State election) and Federal Government on a<br />

range of infrastructure issues, the highlights being:<br />

Infrastructure Demand Survey <strong>2011</strong><br />

<strong>SACOME</strong> is representative on the Resources &<br />

Energy Sector Infrastructure Council (RESIC), which<br />

engaged Parsons Brinckerhoff to undertake the<br />

<strong>2011</strong> Infrastructure Demand Study with the aim of<br />

identifying the sector’s strategic infrastructure needs<br />

over the next 10 years and beyond.<br />

The RESIC Infrastructure Demand Study was released<br />

in November <strong>2011</strong> to the public. In August 20<strong>12</strong><br />

following the release of the report, the RESIC council<br />

began discussions on five key recommendations<br />

to be published in a report to be released for<br />

community comment.<br />

Funding for a Bulk Commodities Port<br />

South Australia’s resources sector is pushing for a<br />

deep-water port for cape sized vessels. Without<br />

such a facility, the emerging iron-ore province in<br />

the north of the State goes without a cost-effective<br />

means of export.<br />

<strong>SACOME</strong> continues to lobby the State Government to<br />

consider underwriting tonnages for the first 5 years<br />

of a deep-water port operation at Port Bonython to<br />

attract investment.<br />

<strong>SACOME</strong>’s <strong>2011</strong>/20<strong>12</strong> corporate events<br />

program continued to deliver valuable<br />

information and opportunities to members<br />

and other industry stakeholders. A forum<br />

for information sharing and networking, the<br />

breakfast briefings and lunch series continued<br />

to attract record attendances.<br />

Breakfast briefings<br />

Attendance numbers at breakfast briefings continued<br />

to climb, with an average of just under 200 guests<br />

at each breakfast. A range of mining and energy<br />

companies provided members with presentations<br />

that included an insight into their operations, future<br />

plans and potential procurement opportunities, along<br />

with time for questions and networking.<br />

Lunch series<br />

Strong attendance at <strong>SACOME</strong> lunches continued<br />

over the year with an average of 320 guests at each<br />

lunch.<br />

The financial year kicked off with a Women in<br />

Resources lunch in August <strong>2011</strong> featuring Erica<br />

Smyth (Toro), Pam McRae-Williams (Rex Minerals)<br />

and Susie Smith (Santos).<br />

20 2<br />

21


MEMBERSHIP EVENTS<br />

October saw a legend of the industry, Mr Rudy<br />

Gomez cover his new Lake Gairdner project plans,<br />

his sale of the Carrapateena tenement and his many<br />

patents. Guests at December’s lunch heard from<br />

South Australia’s new Premier, the Hon Jay Weatherill,<br />

as he highlighted his outlook for the State for 20<strong>12</strong><br />

and beyond, together with his opinions on the mining<br />

and energy sector.<br />

The 20<strong>12</strong> events calendar started with an energy<br />

panel discussion on the Energy White Paper,<br />

with representatives from the Australian Petroleum<br />

Production and Exploration Association, Australian Coal<br />

Association, Australian Uranium Association, and the<br />

Clean Energy Council. Rounding out the year in May,<br />

saw Greg Waters from Arrium (formerly OneSteel)<br />

highlight the company’s new strategy, including name<br />

change, as well as a continuing focus on expanding its<br />

mining operations.<br />

Guests at the <strong>Annual</strong><br />

Resources Industry<br />

Dinner 20<strong>12</strong><br />

Kim and Nyrell McNamara<br />

Anthea Koutsantonis and the Hon Tom Koutsantonis<br />

Rob Waugh, Graham Ascough and Jim McKinnon-Matthews<br />

<strong>Annual</strong> Resources Industry Dinner<br />

This year’s annual resources industry dinner saw<br />

almost 600 guests enjoy a fun and information<br />

packed evening, themed around our State’s sweet<br />

success.<br />

Dinner guests heard from PwC’s Tim Goldsmith who<br />

highlighted the economic outlook for the State, and<br />

discussed the continued growth of China together<br />

with the growing markets of India and South East<br />

Asia. Santos’ James Baulderstone also presented,<br />

reflecting on the history of the Cooper Basin and the<br />

importance of this resource to South Australia.<br />

The evening included the presentation of The<br />

Premier’s Awards for Community Excellence in Mining<br />

and Energy, now in its second year (see page 17 for<br />

details on the winners).<br />

Seminars<br />

<strong>SACOME</strong> continued its diverse schedule of seminars<br />

and workshops over the last <strong>12</strong> months, and most<br />

of these continued to be provided at no charge<br />

to members. Topics included the Mining Act and<br />

Regulations, Managing Risks and Liabilities,<br />

WHS Legislation, Mining for Non-Miners, doing<br />

business with China, Community Engagement and<br />

procurement. The seminars and workshops were<br />

well attended and as with all <strong>SACOME</strong> events,<br />

provided topical information combined with valuable<br />

networking time.<br />

Participants in <strong>SACOME</strong>’s Mining for Non-Miners course on<br />

site at Hillgrove’s, Kanmantoo mine.<br />

Guests also enjoyed a chocolate fountain, a silent<br />

auction hosted by the Royal Flying Doctor Service and<br />

music provided by the Concordia College ‘Big Band’.<br />

Kylie and Marcus Lojsczyk<br />

Kate Fantinel, Aleisha Sullivan, Layla Mignone and<br />

Margaret Donaldson<br />

Paul and Celine Heithersay<br />

22 2<br />

23


INDIGENOUS RELATIONS<br />

<strong>SACOME</strong>`s Indigenous Relations portfolio<br />

continued to embrace a large and diverse<br />

range of topics over the year. Policy,<br />

legislative amendments, ILUAs, best practice<br />

initiatives and Native Title have all featured<br />

highly on <strong>SACOME</strong>’s agenda with an emphasis<br />

on creating an improved knowledge base and<br />

effective advocacy channels for members.<br />

Part 9B Mining Act<br />

The granting of PEPRs (formerly Works Approvals)<br />

from DMITRE and its connection to initiating a<br />

Mining Act Part 9b agreement with Native parties<br />

was a key topic.<br />

DMITRE has expressed its intention to formerly link<br />

the two and at what point this will be enforced was<br />

the subject of discussion between <strong>SACOME</strong> , our<br />

Exploration Committee and other affected parties<br />

including the SA Native Title Service.<br />

A series of round table discussions were scheduled<br />

for the new financial year and <strong>SACOME</strong> will continue<br />

to provide feedback and seek industry input through<br />

our Exploration Committee.<br />

It is hoped that an agreement can be reached with all<br />

parties to ensure the industry and Aboriginal groups<br />

have clarity and certainly as to the correct processes<br />

to be followed.<br />

ILUAs<br />

During the past financial year the Adnyamathanha<br />

Minerals Exploration and Wangkangurru/<br />

Yarluyandi Petroleum Conjunctive ILUAs were<br />

signed by all parties and registered with the<br />

National Native Title Tribunal. Other ILUAs<br />

progressed to an advance stage included the Far<br />

West Minerals Exploration and the Dieri Petroleum<br />

Conjunctive.<br />

Negotiations were initiated with the Kokatha<br />

Uwankara claim group whose land covers the<br />

Roxby Downs and Woomera areas.<br />

Continued financial support for <strong>SACOME</strong>`s<br />

participation in the State wide ILUA initiative has<br />

been unclear since the Federal Attorney Generals<br />

department announced a review of the Native Title<br />

Respondent Funding Scheme in late <strong>2011</strong>.<br />

<strong>SACOME</strong>, accompanied by George McKenzie of<br />

Finlayson’s, made direct representation to<br />

A.C. Neale S.C. who was tasked with providing a<br />

report to the A.G.s office as well as two written<br />

submissions, one from <strong>SACOME</strong> and the other<br />

a joint submission from the SA Native Title<br />

Resolution group (SANTR).<br />

As at 30 June the department’s position was<br />

that funding would cease for both Native Title<br />

Officers and Legal representation on 31st of<br />

December 20<strong>12</strong>.<br />

Federal Native Title Act 1993<br />

The Federal government released an exposure draft<br />

for amendments to the Native Title Act 1993 with<br />

the key points of interest to the industry being:<br />

• clarify the meaning of ‘good faith’ and<br />

associated amendments to the ‘right to<br />

negotiate’ provisions,<br />

• enable parties to agree to disregard historical<br />

extinguishment of native title in areas such as<br />

parks and reserves, and<br />

• streamline Indigenous Land Use Agreement<br />

(ILUA) processes.<br />

<strong>SACOME</strong>, through its representation on the MCAs<br />

Indigenous Relations Working Group (IRWG)<br />

provided input from a State perspective and the<br />

possible impacts on South Australian legislation.<br />

Final submissions will be available for members to<br />

view from October.<br />

The MCAs IRWG – Indigenous<br />

Relations Working Group<br />

<strong>SACOME</strong> continued to be represented on this group<br />

which provides the MCA with SAs perspective into<br />

policy proposals, legislative amendment submissions,<br />

(for example the review of Native Title Act) and<br />

the broader operation of the MOU between the<br />

Minerals Council and the Federal Government.<br />

Promoting Indigenous Professional<br />

Development in the Minerals and<br />

Energy Sectors Project<br />

<strong>SACOME</strong> collaborated with AusIMM on a project<br />

to look at increasing Indigenous participation and<br />

completion rates in university qualified positions within<br />

the industry, for example geology and engineering.<br />

The project will assess the current participation rates then<br />

bring together key stakeholders for a dialogue event to<br />

stimulate new ideas and formulate future strategies.<br />

<strong>SACOME</strong> Indigenous Advisors Group<br />

<strong>SACOME</strong> established a group of Aboriginal leaders<br />

working in the industry to provide guidance and input<br />

to our strategic direction for Indigenous Relations.<br />

The group will meet early in the new financial<br />

year to establish its purpose and goals focusing<br />

on two key areas of assisting industry to increase<br />

economic engagement with Aboriginal businesses<br />

and increasing employment outcomes for Aboriginal<br />

people in industry.<br />

Image courtesy of Australian<br />

Cultural Heritage Management<br />

Review of the South Australian<br />

Aboriginal Heritage Act 1998<br />

This process continued to stall with no further<br />

consultation or release of an exposure draft since the<br />

original submission process closed in 2009.<br />

<strong>SACOME</strong> continued to support the sentiment<br />

and views expressed in its 2009 joint submission that<br />

detailed consultation across all groups is essential.<br />

<strong>SACOME</strong> has expressed its concerns to Government<br />

as to the length of time this process has taken and<br />

the uncertainly it has created for industry and<br />

Aboriginal groups.<br />

At the time of writing, SA Premier Jay Weatherill had<br />

announced the review would be progressed by the<br />

end of 20<strong>12</strong>.<br />

Land Access<br />

The key topic in accessing land where there is an<br />

Indigenous connection to it is the linkage between<br />

the granting of a PEPR and the initiation of a<br />

Part 9B in the Mining Act. <strong>SACOME</strong> is in active<br />

consolation with DMITRE and industry stakeholders<br />

as to ensuring the intention by DMITRE to link the<br />

two and allowing access to the land for work is clear<br />

and certain.<br />

24 2<br />

25


SKILLS & EDUCATION<br />

Careers Program<br />

Over the <strong>2011</strong>-20<strong>12</strong> year, the Careers Promotion<br />

Program delivered school presentations to thousands<br />

of Primary and High School students across the state<br />

and presented at numerous school career expos. The<br />

program continues to engage students in maths and<br />

science activities from an early age and challenge<br />

common misconceptions around jobs in the industry.<br />

Manager, Careers Promotion, Emma Chesterman,<br />

travelled across metropolitan Adelaide, north to<br />

the APY lands, west to the Eyre Peninsula and<br />

Yorke Peninsula, spreading the message to school<br />

children on the benefits of a career in the mining<br />

industry.<br />

The purpose of the APY Lands trip was to deliver an<br />

educational message to the Anangu communities<br />

of Mimili, Fregon, Amata and Ernabella, requiring<br />

a completely different style of delivery. <strong>SACOME</strong><br />

gratefully acknowledges OZ Minerals and the<br />

Anangu Pitjantjatjara Yankunytjatjara Trade Training<br />

Centre for their support and assistance.<br />

<strong>SACOME</strong> was delighted with the opportunity<br />

to extend the program’s reach to Ceduna and<br />

surrounding areas with strong support from Iluka.<br />

Iluka’s mineral sands operation, Jacinth-Ambrosia,<br />

is located approximately 300km north west of<br />

Ceduna. The program was warmly welcomed by<br />

principals, teachers and students from Ceduna Area<br />

School, Penong Primary School, Yalata Anangu<br />

School, Koonibba Aboriginal School and Crossways<br />

Lutheran School.<br />

<strong>SACOME</strong> also joined forces with the Eyre Peninsula<br />

Mining Alliance (EPMA) to take part in a careers<br />

road show across the Eyre Peninsula. Key messages<br />

to the 600 high school students who attended the<br />

expos focused on the diversity of mining careers<br />

and how to obtain the necessary training and skills.<br />

<strong>SACOME</strong> would like to acknowledge the<br />

Resources and Engineering Skills Alliance (RESA)<br />

for its generous sponsorship of <strong>SACOME</strong>’s highly<br />

successful careers program.<br />

Treasure Hunt<br />

The <strong>SACOME</strong> <strong>Annual</strong> Treasure Hunt, was held in<br />

the April 20<strong>12</strong> school holidays. The free activity is<br />

aimed at increasing the awareness of the industry<br />

among 8 – <strong>12</strong> year olds and their parents. The 260<br />

participants followed an interactive route starting<br />

with engineering workshops at the University of<br />

Adelaide, continuing on an ‘Amazing Race’ style<br />

clue-hunt across the CBD, and finishing with<br />

a science ‘rock show’ at the Science Exchange<br />

(RiAus).<br />

Professional Development<br />

Research Project<br />

<strong>SACOME</strong> commissioned a research project<br />

to ascertain any resource sector professional<br />

development training gaps perceived by the<br />

industry in South Australia.<br />

In January 20<strong>12</strong> the resulting report titled An<br />

Industry constrained: A review of training and<br />

education in the resources sector in South Australia<br />

listed 34 recommendations for <strong>SACOME</strong>, training<br />

institutions, tertiary education providers, and<br />

government on how to improve the flow and level<br />

of skills in the industry.<br />

This study and its recommendations informed a<br />

decision by <strong>SACOME</strong> to commence a professional<br />

development program, including the creation of<br />

the Manager of Professional Development position<br />

which was filled in July 20<strong>12</strong>.<br />

MOU with Resources and<br />

Engineering Skills Alliance<br />

Since late 2010, <strong>SACOME</strong> and the Resources<br />

and Engineering Skills Alliance (RESA) have<br />

been in discussions to establish a Memorandum<br />

of Understanding (MOU) which addresses areas<br />

of mutual interest and contributes to the<br />

coordination of plans and initiatives to meet<br />

industry workforce needs.<br />

Areas of potential collaboration include:<br />

• Promotion of resources sector as an industry of<br />

choice for workers<br />

• Contributing to the uptake of STEM and<br />

resources industry supporting curriculum in<br />

schools<br />

• Career Promotion initiatives to support the<br />

industry<br />

• Attraction, retention, training and education<br />

initiatives to address gaps and issues to meet<br />

industry needs<br />

• A point of reference for workforce information for<br />

the industry<br />

In September <strong>2011</strong> the Memorandum of<br />

Understanding between <strong>SACOME</strong> and RESA was<br />

signed.<br />

Geoscientist Assistance<br />

Program (GAP)<br />

<strong>SACOME</strong> continued its role administering the GAP<br />

which was funded by the State Government in 2009<br />

for an initial period of two years. Aiming to encourage<br />

mining professionals to remain in South Australia<br />

and maintain their skills and expertise, the program<br />

provided salary subsidies of up to $25,000pa<br />

per participant and offered training grants up to<br />

$8,500pa.<br />

<strong>SACOME</strong> applied to the State Government for an<br />

extension to the program, which then continued<br />

for another year and will be finalised at the end of<br />

the 20<strong>12</strong>/13 financial year. Over the length of the<br />

program, a total of 33 participants were placed in 22<br />

companies.<br />

A detailed report is available via the <strong>SACOME</strong><br />

website.<br />

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27


Marketing & communications<br />

<strong>SACOME</strong> continued to promote the South<br />

Australian resources sector through a variety<br />

of events and media channels and kept our<br />

members informed on important national and<br />

local issues.<br />

SA Mines and Energy Journal<br />

The SA Mines and Energy Journal, <strong>SACOME</strong>’s official<br />

publication, is now in its fifth year of publication.<br />

The journal provides timely content relevant to<br />

industry members, service provider members, policy<br />

makers and educators. It is distributed to readers<br />

Australia wide who have an interest in the South<br />

Australian resources industry, including key<br />

community and opinion leaders in business and<br />

government, and back issues are available online.<br />

Journal content is sourced primarily through an<br />

editorial committee co-ordinated by <strong>SACOME</strong>,<br />

which comprises a minimum of three leaders from<br />

within the State’s mining and energy sector, and is<br />

led by the magazine Editor - <strong>SACOME</strong>’s Director of<br />

Membership and Communications.<br />

Content is researched and written by <strong>SACOME</strong><br />

staff, Solstice Media (who publish the journal) and<br />

<strong>SACOME</strong> members.<br />

Lead stories over the financial year covered the<br />

following topics:<br />

• The iron-ore rich Eyre Peninsula<br />

• Unconventional gas<br />

• Olympic Dam project overview<br />

• Energy options for South Australia<br />

• Issues in local resource sector training<br />

• Australia’s increasing cost of mining and<br />

diminishing competitive edge<br />

A diverse range of articles continued to be<br />

published in line with areas of key interest to<br />

<strong>SACOME</strong> members, including business and finance;<br />

innovation; procurement; workforce; Indigenous<br />

issues; community engagement; education and<br />

the environment.<br />

Media<br />

<strong>SACOME</strong> continued to feature heavily in the print<br />

and broadcast media over the year, with many major<br />

issues dominating the national and state sector.<br />

<strong>SACOME</strong> released 14 media releases over the year,<br />

covering areas from the MRRT to SA’s energy options;<br />

Federal Treasury decisions to the impact of the carbon<br />

tax; and infrastructure demand to Olympic Dam<br />

expansion approvals. The number of media releases,<br />

however, undersell the number of times <strong>SACOME</strong> is<br />

called upon to provide comment to the print, radio<br />

and television media, which continues to increase<br />

year on year. <strong>SACOME</strong>’s Chief Executive, Jason<br />

Kuchel, is available 24/7 for the media to contact,<br />

ensuring <strong>SACOME</strong> member’s concerns are made<br />

known to the general public.<br />

is available to view via this site, with more to be<br />

added in the future.<br />

Social Media<br />

<strong>SACOME</strong> increased its strong media presence on<br />

Twitter through its @MiningSA account. Twitter<br />

allows <strong>SACOME</strong> to connect with the general<br />

public, members and the media, with a number of<br />

journalists following the account and picking up<br />

media releases and stories through this medium.<br />

<strong>SACOME</strong> tweets about current issues affecting<br />

the mining and energy industry, including a series<br />

of ‘fun facts’ to combat any negative mistruths<br />

present on other social media sites.<br />

Additions for the year included a full year series on<br />

nuclear power and the introduction of a Services<br />

in Spotlight page focussing on a service provider<br />

member with an interesting story to tell.<br />

Tailored editorial content was provided to external<br />

publications including Australia’s Mining Monthly,<br />

the Stock Journal, AusIMM and various regional<br />

newspapers.<br />

E-news<br />

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

<strong>SACOME</strong>’s informative fortnightly newsletter was<br />

updated to a new web based system, allowing<br />

easier readability on smart phones and tablets.<br />

It continued to feature relevant information on<br />

issues, projects, initiatives and events relevant to<br />

the industry.<br />

<strong>SACOME</strong> launched its very own YouTube channel,<br />

<strong>SACOME</strong>TV, with the aim of broadcasting highlights<br />

from some of our key events. A snapshot of Jay<br />

Weatherill’s first address to the mining and energy<br />

industry at <strong>SACOME</strong>’s December 14 lunch in <strong>2011</strong><br />

28 2<br />

29


SPONSORS<br />

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

<strong>SACOME</strong> members have the option to support <strong>SACOME</strong>’s corporate lunch series and other events via sponsorship. This enables events to be<br />

provided at economical prices to members. <strong>SACOME</strong> is very appreciative of the support from its valued sponsors and would like to acknowledge<br />

the following organisations as 20<strong>12</strong> sponsors:<br />

Diamond Sponsor<br />

<strong>SACOME</strong>’s membership is made up of<br />

organisations that either work directly as<br />

mining, exploration or energy companies<br />

in the South Australian mineral industry or<br />

provide services to the sector.<br />

Service companies are essential to the State’s<br />

resources industry and are highly valued <strong>SACOME</strong><br />

members with voting rights and representation on<br />

the <strong>SACOME</strong> council.<br />

Gold Sponsors<br />

Silver Sponsors<br />

Bronze Sponsors<br />

Event Sponsors<br />

<strong>SACOME</strong> also thanks our event lanyard sponsor: Migration Solutions<br />

and the following companies who have sponsored various individual events over the <strong>2011</strong>-20<strong>12</strong> membership year:<br />

Aggreko; BankWest; Baulderstone; Beach Energy; DMITRE; IMER (Institute for Mineral and Energy Resources); IronClad Mining; Iron Road<br />

Limited; Liebherr; Migration Solutions; Nova Systems; Statewide Super; Zen Commercial Energy<br />

As at 30 June 20<strong>12</strong>, <strong>SACOME</strong> had 360 financial<br />

members, comprising 76 industry members and 268<br />

service providers, with associate members totalling 16.<br />

<strong>SACOME</strong> industry members either have exploration<br />

or production projects in South Australia or own<br />

tenements in the State. Industry exploration and<br />

production products can encompass energy,<br />

exploration, extraction or mining activities. Tenements<br />

held may or may not be active at present.<br />

Our service provider members include any company<br />

which is committed to servicing and supporting the<br />

South Australian resources and energy sector.<br />

Sacome membership to 30 June 20<strong>12</strong><br />

Membership Categories<br />

Core industry members<br />

Level 1A: Global Revenue >$500m<br />

Level 1B: Global revenue >$100m - $500m<br />

Level 1C: Global revenue >$50m - $100m<br />

Ind Level 1D: Global revenue >$20m - $50m<br />

Ind Level 1E: Global Revenue >$0m - $20m<br />

Level 2: Explorer or early production with<br />

production outside of SA<br />

Level 3: Early production<br />

Level 4: Junior explorer or extractive


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

Industry Members<br />

Acer Energy<br />

Adelaide Brighton Limited<br />

Adelaide Resources<br />

AFMECO Mining and Exploration<br />

Ahava Resources Pty Limited<br />

Alinta Energy<br />

Alliance Resources Limited<br />

Altona Energy/Arckaringa Energy Pty Limited<br />

Arafura Resources Limited<br />

Archer Exploration Limited<br />

Argonaut Resources NL<br />

Arrium Mining & Materials<br />

Barrick (Australia Pacific) Limited<br />

Beach Energy Limited<br />

BHP Billiton Uranium Australia<br />

BP Developments Australia Pty Limited<br />

Cameco Australia<br />

Carpentaria Exploration Limited<br />

Cartwheel Resoruces Pty Limited<br />

Centrex Metals<br />

Core Exploration<br />

Epic Energy<br />

Exco Resources<br />

Eyre Iron Pty Limited<br />

Geodynamics<br />

Gypsum Resources Australia<br />

Havilah Resources NL<br />

Heathgate Resources<br />

Hillgrove Resources<br />

Iluka Resources<br />

IMX Resources Limited<br />

Investigator Resources Limited<br />

Iron Road Limited<br />

IronClad Mining Limited<br />

Kingsgate Consolidated Limited<br />

Linc Energy Limited<br />

Lincoln Minerals Limited<br />

Marathon Resources Limited<br />

Marmota Energy<br />

Maximus Resources Limited<br />

Metals X Limited<br />

Minotaur Exploration<br />

Mithril Resources<br />

Mungana Goldmines Ltd<br />

Murray Zircon<br />

Musgrave Minerals Limited<br />

Nyrstar Port Pirie Smelter<br />

OZ Minerals<br />

Penrice Soda Products Pty Limited<br />

PepinNini Minerals Limited<br />

Petrathem Limited<br />

Phoenix Copper Limited<br />

Polymetals Group Pty Limited<br />

Rex Minerals Limited<br />

Rio Tinto<br />

Royal Resources Limited<br />

Santos Limited<br />

Senex Energy Limited<br />

Sinosteel PepinNini Curnamona Management Pty Ltd<br />

Southern Quarries & Direct Mix Group<br />

Straits Resources Limited<br />

Strike Energy Limited<br />

Sundance Energy Australia Limited<br />

Syngas Limited<br />

Tasman Resources NL<br />

Teck Australia Pty Limited<br />

Terramin Australia Limited<br />

Thor Mining PLC<br />

Toro Energy Limited<br />

Torrens Energy<br />

Trafford Resources Limited<br />

Uranium Equities Limited<br />

Uranium One Australia<br />

UraniumSA Limited<br />

UXA Resources Limited<br />

WPG Resources<br />

Service Provider Members<br />

Adelaide Airport Limited<br />

Adelaide Control Engineering<br />

ADT Security<br />

Adventure 4WD<br />

AEC Environmental Pty Limited<br />

AECOM Australia Pty Limited<br />

Aggreko<br />

Ahrens<br />

Alere<br />

Alexander & Symonds<br />

Alliance Airlines<br />

AMC Consultants<br />

Ancorloc Earth Systems<br />

ANZ<br />

Appliance Tagging Services<br />

Aquamate<br />

Aquenta Consulting<br />

Aries Maritime Services Pty Limited<br />

ASC Training & Development Pty Ltd<br />

Ashurst<br />

Asiaworld Shipping Services<br />

Atlas Copco Construction and Mining Australia<br />

Aurecon Australia Pty Ltd<br />

Ausco Modular<br />

Ausenco Services<br />

Australian Camp Services<br />

Australian Civil & Mining Training<br />

Australian Cultural Heritage Management<br />

Australian Groundwater Technologies<br />

Australian Industrial Rental<br />

Australian Saltworks (Previously Mulgundawa Salt)<br />

Australian Training Alliance<br />

Australian Water Environments<br />

Austwide Mining Title Management Pty Limited<br />

Aztec Analysis<br />

B.L. Shipway & Co<br />

Ballestrin Construction Services Pty Limited<br />

BankWest Business<br />

Basetec Services<br />

Battery World<br />

Baulderstone - Engineering<br />

BMD Constructions<br />

Bonacci Group Pty Ltd<br />

Boral Resources (SA) Limited<br />

BP Australia Pty Limited<br />

Brown and Pang<br />

BRS<br />

Bureau Veritas Minerals<br />

Buschutz Engineering Pty Limited<br />

Cadgile<br />

CAPS Australia Pty Limited<br />

Cavill Power Products<br />

Celtic Group of Companies, The<br />

Chubb Fire Safety<br />

Coffey Environments Pty Limited<br />

Color On Demand<br />

Colour Tech Copying<br />

Commonwealth Bank of Australia<br />

Community Engagement Group Australia Pty Limited<br />

Complete Personnel<br />

Connexion Australia Pty Limited<br />

Contract Resources<br />

CoOE (Care of Our Environment)<br />

Cooper Fluid Systems<br />

Cor Cooling<br />

Corporate Conversation<br />

Corporate Traveller<br />

CQ Partners Pty Limited<br />

CQR Consulting<br />

CRC Care Pty Ltd<br />

Cryogenic Blasting Solutions<br />

D.J. Coughlan Drilling<br />

Dalkeith Plastics<br />

David Moss Corporation<br />

Deep Exploration Technologies CRC<br />

Diamond Conveyors<br />

Direct Workshop Supplies<br />

Dixon Partnership Solutions<br />

DMAW Lawyers<br />

Doconade Legal & Migration<br />

Draeger Safety Pacific Pty Limited<br />

DriForce<br />

E & A Limited<br />

EBS Ecology<br />

Ecological Associates Pty Limited<br />

Electranet<br />

EMAC Systems<br />

Emeco International Pty Limited<br />

Enterprise Connect Resources Technology<br />

Innovation Centre<br />

Environmental Projects<br />

EQAS Business Development<br />

Ernst & Young<br />

Ertech Pty Limited<br />

ETSA Utilities<br />

Exact Mining Services<br />

Experience Matters<br />

Finlaysons<br />

FirecorpSA Pty Limited<br />

Fire Safe Services Pty Ltd<br />

Flight Safety Foundation<br />

Flinders Ports<br />

Modular Building Systems<br />

Fox Tucker Lawyers<br />

Fugro Spatial Systems<br />

Fyfe Pty Limited<br />

Genesee and Wyoming Australia<br />

Geofabrics Australasia<br />

GHD Pty Limited<br />

Golder Associates Pty Limited<br />

32 2<br />

33


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

Government Relations Australia Advisory Pty Limited<br />

Government Relations Solutions Pty Ltd<br />

(GR Solutions)<br />

Grundfos Pumps Pty Limited<br />

Hawker Britton Group<br />

Hays Resources and Mining<br />

Health Safety Environment Australia Pty Limited<br />

Hender Consulting<br />

Hertz Truck Rental<br />

Hills Holdings Limited<br />

Hitachi Construction Machinery Australia Pty Limited<br />

Hughes Public Relations & Communication Counsel<br />

Hunt & Hunt<br />

Hunt Energy & Minerals Co Pty Limited<br />

Hunter Bros. Earthmoving Pty Limited<br />

Icon Recruitment<br />

Iman International Pty Limited<br />

Integrity Sampling<br />

Intermodal Solutions<br />

Intract - Indigenous Contractors<br />

J & H Williams Holdings Pty Ltd<br />

Jardine Lloyd Thompson<br />

Jean Cannon Consulting<br />

JM Gilligan Consulting<br />

John Nitschke Drilling<br />

Joie Creative<br />

Kadego<br />

Kellogg Brown & Root<br />

Kelly & Co<br />

Kempe Fluidpower & Engineering Services<br />

Kerry Logistics<br />

KJM Contractors<br />

KOJO<br />

KPMG<br />

KSB Australia Pty Limited<br />

Lawson Risk Management Services Pty Limited<br />

Leadership Management Australia - Bettcher<br />

Leighton Contractors Pty Limited<br />

Leske Transport Pty Ltd<br />

Lester Franks Survey & Geographic Pty Limited<br />

Liebherr Australia Pty Limited<br />

LR & M Constructions Pty Limited<br />

Lucas Earthmovers Pty Limited<br />

Macmahon Holdings<br />

Maloney Field Services<br />

Manpower Australia<br />

Maritime Constructions Pty Limited<br />

Marlow Communications Pty Limited<br />

MAV Media Pty Limited<br />

Max Crane & Equipment Hire<br />

Macquarie Drilling<br />

McConnell Dowell<br />

McDonald Steed McGrath Lawyers<br />

McMahon Services<br />

Megaron International Pty Limited<br />

Migration Solutions<br />

Mine & Quarry Service Co Pty Ltd<br />

Minecorp<br />

Minerals & Metals Marketing<br />

Mining & Construction Safety Specialists<br />

Mining One<br />

Mining People International<br />

Mining, Energy & Engineering Academy<br />

Minter Ellison Lawyers<br />

Mitsui & Co Uranium Australia Pty Limited<br />

Morton Phillips<br />

National Australia Bank<br />

Native Title SA<br />

Nedrill Blasting Contractors<br />

Nextgen Networks<br />

Normet Asia Pacific Pty Limited<br />

OAMPS Insurance Brokers<br />

ODT Australis Pty Limited<br />

O’Loughlins Lawyers<br />

OneTN<br />

Opposite Lock Adelaide<br />

Osmoflo<br />

OTEK Australia<br />

Outback Ecology<br />

Panurgem Pty Limited<br />

Parker Hannifin (Australia) Pty Limited<br />

Parsons Brinckerhoff<br />

Paydirt Media Pty Limited<br />

Payneham Financial Services<br />

Peter Kittle Motor Company<br />

Phoenix Project Management Pty Limited<br />

Phoenix Society Inc.<br />

Piper Alderman<br />

PKF Organisation & Development<br />

Port Adelaide Football Club<br />

Port of Melbourne<br />

Powranna Consulting Pty Limited<br />

PT Hydraulics Australia Pty Ltd<br />

Pursuit People Solutions<br />

PwC Services (PricewaterhouseCoopers)<br />

Qube Logistics (SA) Pty Ltd<br />

Qube Ports & Bulk Division Pty Ltd<br />

Red Appointments Pty Limited<br />

Red Dirt Personnel Group<br />

Red Earth Training Solutions<br />

Red Mulga<br />

Rema Tip Top<br />

Resources & Engineering Skills Alliance (RESA)<br />

Revenue by Design<br />

Rexco People Pty Limited<br />

Rhino Plant Hire<br />

Roadside Services & Solutions Pty Limited<br />

Rob Savory Environmental Audits<br />

Roxby Serviced Offices<br />

RPS Aquaterra<br />

Rural Solutions SA<br />

SCF Group Pty Limited<br />

SG Fleet<br />

Sharp Airlines<br />

Sims Metal Management S.A.<br />

Sinclair Knight Merz<br />

Sitemed (O.T. Private Pty Ltd)<br />

SJ Cheesman<br />

Skills DMC<br />

SLC Pty Limited<br />

SME Gateway<br />

Smith & Georg<br />

Southwick Goodyear<br />

Sparke Helmore Lawyers<br />

Spatial Scientific<br />

SRA Information Technology<br />

St John Ambulance Australia SA Inc<br />

Statewide Financial Management Services Limited<br />

Stramech Engineering<br />

Street Fleet Pty Ltd<br />

Telstra<br />

The Direct Mail Centre of Australia Pty Limited<br />

The University of Adelaide Faculty of Engineering<br />

Computer and Mathematical Sciences<br />

Thiess Pty Limited<br />

Thinc Projects<br />

Thrifty<br />

Tingira Pty Limited<br />

Tonkin Consulting<br />

Training Materials Consultancy<br />

Trainway<br />

TRILITY Pty Limited<br />

UCL School of Energy and Resources, Australia<br />

University of South Australia<br />

URS Australia Pty Ltd<br />

Value Adviser Associates<br />

Watpac Civil and Mining Pty Limited<br />

Watsons Lawyers<br />

Wave Rider Energy Pty Limited<br />

Wealth on Track<br />

Wendy Perry & Associates Pty Limited<br />

Westpac Banking Corporation<br />

Whitham Media Australia<br />

Wilson People Management<br />

WorkPac Central Pty Limited<br />

WorleyParsons<br />

Xceptional Recruitment Pty Limited<br />

Yaran Business Services Pty Limited<br />

York Resources Pty Limited<br />

ZEN Commercial Energy System<br />

Associates<br />

Mr Andrew Andrjewkskis<br />

Mr Peter Bradshaw<br />

Ms Teena Coppin<br />

Mr Egon Pederson<br />

Mr Lindsay Curtis<br />

Mr John Fargher<br />

Mr Vic Farrington<br />

Mr Rob Gibb<br />

Mr Sean Kennedy<br />

Mr Egon Pederson<br />

Mr Mike Penfold<br />

Mr Ivan Steed<br />

Mr Dave Thomas<br />

Mr David Tonkin<br />

Mr Kevin Wills<br />

Mr Tim Zwierson<br />

34 2<br />

35


South Australian Chamber of Mines & Energy<br />

Mines and Energy House<br />

290 Glen Osmond Road<br />

Fullarton, South Australia 5063<br />

Phone +61 8 8202 9999<br />

Fax +61 8 8202 9900<br />

Email: sacome@sacome.org.au<br />

www.sacome.org.au

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