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 />
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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 />
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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 />
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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 />
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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 />
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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