SACOME Annual Report 2009-10

2 annual report 2010

Contents 

President Report 4 

Chief Executive Report 6 

Our Staff 8 

Voice of the Resources Industry in South Australia 10 

Industry Development 12 

Sponsors 17 

Industry Promotion 18 

SACOME Events 20 

Skills & Education 23 

Indigenous Relations 26 

Environment and Sustainability 28 

Sacome Membership 31 

Report of the Council Members 37 

Statement by Council Members 38 

Income Statement 39 

Statement of Recognised Income & Expenditure 39 

Balance Sheet 40 

Cash Flow Statement 41 

Discussion & Analysis 42 

Notes to the Financial Statements 43 

Independent Auditor’s Report 46 

annual report 2010 

3

What a year! 

Last year I described just how tough and 

risky the mineral exploration and mining 

industries really are. And there we were, having 

weathered the Global Financial Crisis, when 

a proposed Resources Super Profits Tax was 

lobbed on us in May of this year, plunging 

Australia’s sovereign risk rating. 

This tax bombshell united our industry as 

no other issue, that I can recall, ever has. 

SACOME played a very active, important and 

daily role in the industries responses to this 

poorly conceived, inequitable and punitive tax 

proposal – eventually seeing it off. Beware, 

however, this issue is not over and we must 

continue to be vigilant. 

The Mineral Resources Rent Tax (MRRT) 

announced in June has a long way to go in 

meeting the needs of the industry. SACOME will 

be involved in its design and implementation, 

aiming to ensure our fledgling iron ore and coal 

industry is not unfairly impacted. 

The Chamber tackled many other challenges 

during the year, ranging from land access and 

the Carbon Pollution Reduction scheme to 

infrastructure. Details on these various issues 

appear later in this report. 

On the positive side, South Australia now 

boasts 12 operating mines and this is expected 

to increase to 16 by the end of 2010. In new 

developments, Oz Mineral’s Prominent Hill 

mine producing strongly in its first full year of 

operation, with expansion plans well underway. 

Iluka’s Jacinth Ambrosia operation commenced 

production during the financial year, with 

the impressive capacity to provide 25% of 

the worlds zircon. Both of these companies 

have not only excelled at an operational level, 

but also in their Indigenous employment 

achievements, meeting their high attraction 

and retention targets through innovative 

programs and initiatives. Well done! 

Exploration is on the increase, some highlights 

include Rex Minerals exciting copper finds 

on the Yorke Peninsula and encouraging 

preliminary drilling results for UraniumSAs 

Mullaquana Blackbush project. Exploration 

spending in the State totalled $47.7 million for 

the June 2010 quarter, and $166 million for 

the 2010 financial year– which bodes well for 

further mineral resource discoveries. 

Exploration will continue to be supported by the 

South Australian Government’s successful Plan 

for Accelerating Exploration program (PACE 

2020), designed to assist further exploration 

and mining development. The State government 

must be commended for their dedication to the 

program, pledging continued support in the 

2010-11 budget. SACOME will however 

continue to hold the Federal Government to 

account on its promise of introducing a flow 

through shares scheme (or a suitable variation) 

to attract investment to the exploration sector. 

Sacome celebrated its 30th birthday during the 

year and it is with a sense of pride that I reflect 

on the chamber’s increasingly important role in 

the success of our sector in South Australia. 


On behalf of the council and myself, I extend 

very sincere thanks to our small dedicated 

team for their continuing commitment and 

outstanding efforts under the exceptional 

leadership of our Chief Executive, Jason Kuchel. 

I also extend my sincere appreciation to 

our Councillors and committees for their 

contribution to the Chamber’s effectiveness. 

John Roberts 

President 

The Chamber 

tackled many other 

challenges during the 

year, ranging from 

land access and the 

Carbon Pollution 

Reduction scheme to 

infrastructure. 


5

The past financial year has seen the resources 

sector pushed from pillar to post. 

At the beginning of the financial year we were 

still suffering the effects of the Global Financial 

Crisis with investment dollars hard to come by. 

As the year progressed, commodity prices 

improved, the Australian dollar rose and the 

Federal Government decided that the minerals 

and oil and gas sectors were a cash cow that 

could pay for their spending spree... and 

without consultation the Resources Super 

Profits Tax (RSPT) was announced. Overnight, 

Australia took on a greater sovereign risk 

than many despot countries, South Australia’s 

ranking as a desirable minerals jurisdiction by 

the Fraser Institute dove from 10th to 15th spot 

and international investors packed their bags 

and headed for home. 

The only positive to come out of the RSPT was 

an industry united like never before. SACOME 

and our state and national counterparts 

participated in daily telephone hook-ups, 

determined to ensure that the industry which 

had saved Australia from the GFC would not be 

torn apart. From national advertising campaigns 

(which put our Federal Government into a spin) 

to behind the scenes lobbying at all levels of 

Government, the industry representative bodies 

moved swiftly to farewell the RSPT. 

SACOME played a particularly important role as 

the RSPT design had not considered the impact 

on the Olympic Dam expansion, Onesteel’s 

steel works and the ability of potential first 

time miners to raise capital. The potential loss 

of over a 1000 jobs in Whyalla was politically 

unpalatable. Through intense lobbying, the 

Federal Government quickly understood that 

the RSPT would kneecap any potential mining 

boom in South Australia before it got off the 

ground. Whilst this was not the only policy 

or legislative issue for the year, it served to 

highlight the importance of industry being 

united and represented by a body which 

understands the nuances of the sector in this 

state. The defeat of the RSPT is not the end of 

the tax issue, which continues into 2010/11. 

On a more positive note, SACOME celebrated 30 

years of service to the industry with a gala dinner 

in November 2009 following another successful 

Explorers Conference. The evening celebrated 

everything from the inception of the Chamber 

and the foresight of those industry leaders 

who saw the need for the establishment of an 

industry representative body, to the numerous 

achievements and the current Chamber, now 

representing more than 300 members. 

Other big policy issues throughout the year 

surrounded the Carbon Pollution Reduction 

Scheme (CPRS) which ultimately failed in 

the senate; the Northern Flinders Ranges 

management called “Seeking a Balance” which 

fortunately was bagged by the environmentalists 

as much as it was by the resources sector; 

and Marine Parks which we continue to 

work through with a number of our members 

represented on the Local Advisory Groups, who 

will make recommendations to Government on 

the zones to make up the parks. 

Of course some issues continue to be at the 

front of our collective thoughts, the number one 

being infrastructure. SACOME worked with the 

Resources and Energy Sectors Infrastructure 

Council (RESIC) to update the SACOME 

infrastructure study. In addition, we worked 

closely with RESIC and Electranet to undertake 

several key reports into future energy source 

timelines and associated issues for getting 

these new generators to market. 

Land access has grown as an issue to members 

on multiple fronts, including the need for 

better community engagement generally with 

pastoralists, landholders and communities; 

furthering ILUAs with native title claimants; and 

access to Department of Defence controlled 

lands including the Woomera Prohibited Area 

(WPA) and Cultana. Throughout the financial 

year we worked with the State Government 

and the Department of Defence to try and work 

through a satisfactory access regime for the 


WPA. Towards the end of the financial year we 

welcomed the announcement of a review into 

the mining and exploration access within the 

Woomera Prohibited Area, known as the Hawke 

Review, expected to report by Christmas 2010. 

On the skills front, SACOME was provided 

with a $750,000 grant from PIRSA to retain 

geoscientists in SA during the fallout of the 

GFC. The program has been highly successful 

and continues for a further year. We thank the 

Minister for Mineral Resources, the Hon Paul 

Holloway for his confidence in SACOME to 

develop and manage this program. 

These are just a few highlights of the 2009/10 

financial year, with more detailed reports of our 

activities and successes following. I would also like 

to thank our SACOME Council for their leadership 

and the staff for their dedication and commitment. 

In particular, I would like to thank Bev Janssan, 

Director Member Services who retired from 

SACOME after almost 25 years of outstanding 

service. 

Jason Kuchel 

Chief Executive 

A big highlight for the year was our inaugural 

Mines Rescue Competition. Teams from SA and 

Victoria participated, with BHP Billiton’s Olympic 

Dam team taking out top honours. 

Financially, SACOME was able improve its financial 

position, enabling the organisation to be better 

placed to respond to key policy issues - such as 

the RSPT. 

The RSPT served to highlight the 

importance of industry being united 

and represented by a body which 

understands the nuances of the 

sector in this state. 


7


9

SACOME council 

In the 2009/10 financial year there was minimal 

change to the SACOME council structure, with 

councillors comprising representatives from the 

mining, petroleum, extractive, exploration and 

service provider sectors. During the year Mark 

McGeough, Mick Wilkes and Kym Winter- 

Dewhirst were welcomed as new councillors, 

replacing Mark Milazzo and Derek Carter. 

John Roberts 

SACOME President 

Mithril Resources 

George McKenzie 

Finlaysons 

Tino Guglielmo 

Vice President 

Stuart Petroleum 

Mark McGeough 

Toro Energy 

Hans Umlauff 

Vice President 

Iluka Resources 

Mick Wilkes 

OZ Minerals 

Dean Dalla Valle 

BHP Billiton 

Graham Ascough 


Kym Winter-Dewhirst 

BHP Billiton 

Andrew Freeman 

Santos 

10 annual report 2010

Committees 

Executive Committee 

Chaired by: John Roberts 

Contact: Jason Kuchel 

Jim White 

Centrex Metals 

Exploration Committee 

Chaired by: Graham Ascough 

Contact: Jonathon Forbes 

Patrick Clifford 

Ironclad Mining 

Editorial- SA Mines & Energy 

Journal Committee 

John Roberts, Tino Guglielmo, Graham Ascough 

Contact: Megan Andrews 

Ros DeGaris 

Adelaide Brighton 

Skills & Education Committee 

Chaired by: Tino Guglielmo 


Occupational Health & Safety Committee 

Chaired by: Andy Simmons 


Michael Reed 

Worley Parsons 

Energy Policy Working Group Committee 

Chaired by: Darren Bilsborough 

Contact: Nigel Long 

Terry Kallis 

Petratherm 

Health, Safety, Environment & Community 

Conference Organising Committee 

Chaired by: Jonathon Forbes 



11

Land access and infrastructure continued 

to feature as impediments to industry 

development in South Australia, with 

proposed Federal tax reform contributing to 

concerns towards the end of the financial 

year. SACOME worked with Government and 

industry members on these issues and many 

more, with a view to overcoming the barriers 

limiting the sector. 

Flow Through Shares Scheme 

SACOME continued to lobby for the 

introduction by the Federal Government of a 

flow through share (FTS) scheme to encourage 

exploration investment, and asked that the 

Labour Party honour its 2007 election promise 

to introduce such a scheme. SACOME has been 

the lead agency in the design of a model for 

the Australian tax system, the fundamentals of 

which have been endorsed by industry. 

Olympic Dam Plant 

Image courtesy of BHP Billiton 

(also front cover) 

In May 2010 the Federal Government 

announced a number of tax measures in 

response to the Henry Tax Review, including 

the proposed introduction of a Resource Super 

Profits Tax (RSPT) from July 2012 to fund 

many of the proposed new tax measures. The 

RSPT was also to fund a Resource Exploration 

Rebate (RER) from July 2011. Whilst there was 

a possibility that minerals exploration activity 

would have increased as a consequence of the 


RER, is was not expected to attract additional 

investment. This is the essential element of a 

FTS scheme and SACOME made it clear to the 

Government that the RER was not the preferred 

model. SACOME, along with other state-based 

industry bodies continued to lobby for the FTS 

scheme submitted to the Federal Government in 

2008 and will continue to promote this model. 

Infrastructure 

Whilst the State Government’s exploration 

plan (PACE) has seen exploration increase 

threefold, the next challenge is to turn the 

State’s exploration boom into the long touted 

‘mining boom’. To achieve this, many miners 

and renewable-energy providers will need to 

share common-user infrastructure, including 

roads, rail, ports, water, energy and transmission 

lines. SACOME has directed efforts to lobbying 

the State Government, the State Opposition 

and Federal Government on a range of 

infrastructure issues, the highlights being: 

Planning and seed capital 

The State Government should assist in 

identifying, undertaking feasibility studies 

and developing common-user infrastructure. 

A commitment of $100m per annum in seed 

capital would kick-start a number of crucial 

infrastructure projects in rural and remote 

areas. This commitment should be leveraged to 

attract a potential $1billion per annum in new 

infrastructure. Power is emerging as a crucial 

issue for resource companies and SACOME is 

looking for government’s infrastructure plans in 

this area. 

Whilst the State 

Government’s 

exploration plan (PACE) 

has seen exploration 

increase threefold, 

the next challenge 

is to turn the State’s 

exploration boom 

into the long touted 

‘mining boom’ 

Lobbying for Bulk Commodities Port 

The resources sector of South Australia is in 

need of a deep-water port for cape sized vessels. 

Without such a facility, the emerging iron-ore 

province in the north of the State goes without 

the most efficient and cost-effective means of 

export. The State Government should lobby 

Infrastructure Australia to secure seed capital 

of at least $100m to get the project started. A 

funding arrangement between State and Federal 

governments and the resources industry, similar 

to the Oakajee Port in Western Australia, would 

also be suitable for South Australia. The State 

Government should underwrite tonnages for the 

first 5 years of a deep-water port’s operation 

(potentially at no cost to Government) to attract 

investment. SACOME will continue to lobby for 

this outcome. 

Infrastructure Demand Survey 

In 2009, SACOME assisted the Resources & 

Energy Sector Infrastructure Council (RESIC), 

to undertake a survey to understand the latest 

resource sector infrastructure demands. The 

survey provided detail into the scale, timing 

and composition of planned infrastructure 

demands to assist in the strategic co-ordination 

of infrastructure plans for the resource sector. 

The final report was handed to RESIC by the 

contracted company, Aurecon, in January 2010 

Research and Development Project Grant 

SACOME obtained a $50,000 grant from the 

Department of Further Education, Employment 

Science and Technology to complete an R&D 

‘Innovation Roadmap’ for the State’s resources 

sector. The roadmap identified current and future 

challenges and pathways for strategic investment 

in R&D and innovation for researchers, business 

and government. This project was completed 

on time with the final report being handed to 

SACOME in December 2009. 


13

Occupational Health and Safety 

SACOME was directly involved with a large 

range of OH&S projects and programs 

designed to enhance the knowledge, skills and 

experience of the resource and energy sector in 

South Australia. Highlights were: 

SA Mines Emergency Response Competition 

In 2009, SACOME hosted South Australia’s 

first mines rescue competition, where six 

teams battled it out at Angas Zinc Mine near 

Strathalbyn and the CFS State Training Centre in 

Brukunga. Jason Carroll, captain of the winning 

team (BHP Billiton Olympic Dam) commented 

“The challenges we faced were really realistic 

and we also liked that it was set up as a 

training event as well.” 

Health, Safety, Environment & 

Community Conference 

The third annual Health, Safety, Environment 

& Community (HSEC) Conference for the 

Resources sector was held in October 2009 

at the Hilton Hotel. The Planning Committee 

was concerned about the effect of the global 

financial crisis on sponsorship and attendance, 

and this prediction proved correct with numbers 

for the event down by around 60% on 2008. 

However, a worst case scenario was planned 

for and the event went ahead on the basis that 

sufficient reserves were held from previous 

conferences, and for the sake of continuity the 

event should be held. The conference made a 

small loss, but was successful in the quality of 

the speakers and information imparted. Future 

conferences are, however, under review. 

Code of Practice for Community 

Engagement 

Following on from workshops held in 2008, 

SACOME committed to develop a Code of 

Practice for Community Engagement as a good 

practice tool for the SA resources industry. 

A working group comprising representatives 

from SACOME, Community Engagement Group 

Australia (CEGA) and PIRSA MER drafted the 

Code and Guidelines. The Code was accepted 

and endorsed by industry at a formal launch and 

signing ceremony in October 2009 where 10 

companies signed up to the Code. Those members 

who signed were also eligible to access a 

‘toolkit’ of resources to help them navigate their 

way through this important process. All members 

are encoouraged to sign up to the Code. 

Emerging Mines OH&S Project 

The Mining & Quarrying Occupational Health 

and Safety Committee (MAQOHSC), provided 

funding to SACOME of $50,000 per annum 

for two years (which equates to assisting five 

companies per annum) to develop and manage 

a program to assist emerging South Australian 

mining companies assess their OH&S needs and 

implement improvements to their health and 

safety management systems. The program is 

jointly managed by SACOME and MAQOHSC, and 

is on track in its first year with four companies 

signed up to the project at the time of writing. 

South Australia’s 

forecast resource value 

to 2020, based on 

PIRSA projected data 

50 

45 

40 

35 

30 

25 

20 

15 

10 

5 

0 

1980 

1985 

1990 

1995 

Number of Mines (RHS) 

Resource Value (LHS) 

Record Commodity Prices 

2000 

2001 

2002 

2003 

2004 

Global Financial Crisis 

2005 

2006 

Years 1980-2020 

2007 

2008 

2009 

Projected 

Mines, & Resource 

Value 

2010 

2011 

2015 

2020 

$15.0 

$12.5 

$10.0 

$7.5 

$5.0 

$2.5 

$0.0 

Billions 


SACOME Exploration Committee 

The SACOME Exploration Committee continues 

to be a valuable forum for responding to a 

range of issues affecting exploration in South 

Australia. SACOME members who give their 

time and expertise to the committee have 

provided direction on such issues as the Mining 

(Miscellaneous) Amendment Bill 2009, the 

Aboriginal Heritage Act Review, Indigenous land 

use agreements, land access issues (particularly 

Defence lands), infrastructure needs, a flow 

through share scheme, a code of practice 

for community engagement, and heritage 

clearances. A special thank you to Dr Kevin Wills, 

who stepped down from the Chairman’s role in 

September 2009, after accepting the position 

in 2007 when the Exploration Committee was 

reformed. Graham Ascough replaced Kevin in the 

role of Chairman in November 2009. 

Land Access 

Woomera Prohibited Area 

Concerns surrounding access to the Woomera 

Prohibited Area (WPA) are an ongoing problem 

for explorers. SACOME regularly met with the 

South Australian Minister for Mineral Resources 

Development, the Hon. Paul Holloway MP, to 

further the issue and made representations to 

the Federal Government in the 2009/10 

financial year. 

Lake Hart, Woomera 

Prohibited Area 


15

SACOME acknowledges the work of the 

State that chairs a Working Group with 

representatives from Defence SA, Primary 

Industries and Resources South Australia 

(PIRSA), Air Force Headquarters, Aerospace 

Operational Support Group, Defence Support 

Group, and the Department of Resources, 

Energy and Tourism. Underpinning this group 

is an operational committee which meets on 

a monthly basis to deliberate on functional 

SACOME will continue 

to lobby hard for 

reasonable and fair 

outcomes when it 

comes to accessing land 

for our industry. 

Terramin’s Angus 

Mine at Strathalbyn 

matters. In the past SACOME has respected 

the wishes of State and Federal agencies and 

not pushed for a place on this group, however 

the time is right and a seat at the table has 

been requested as soon as possible. With the 

announcement of a Review of the WPA by 

the Minister of Defence in May 2010, industry 

representation will now be particularly timely. 

The review will be examining the WPA with 

a view to maximising its value to the nation 

for Defence and economic development for 

the next 20 – 30 years. The review is headed 

up by Dr Allan Hawke and will report to the 

Government at the end of 2010. 

Northern Flinders Ranges Management Plan 

In late October 2009, SACOME received 

a copy of a paper: ‘Seeking a Balance: 

Conservation and resource use in the Northern 

Flinders Ranges’ which proposed a series 

of management zones across the northern 

Flinders Ranges area, effectively changing 

and restricting the access and use of parts of 

the area. Concerns were raised by a number 

of members regarding the proposal and also 

the lack of consultation before release of 

the paper. Representations were made to 

PIRSA and Minister Holloway regarding our 

concerns. SACOME worked with interested 

member companies before making a formal 

submission in January 2010. No decision had 

been announced by the State Government on 

the future of the proposed zones at the time of 

writing. SACOME will continue to lobby hard for 

reasonable and fair outcomes when it comes to 

accessing land for our industry. 


Sponsorship by member organisations assists SACOME to provide its corporate lunch series and other events at economical prices to its members. 

SACOME greatly appreciates the support of its valued sponsors and would like to acknowledge the following organisations: 

Diamond Sponsor 

Gold Sponsors 

Silver Sponsors 

Bronze Sponsors 

Adelaide Brighton Ltd, Beach Petroleum, BHP Billiton, Boral, DMAW Lawyers, Iluka Resources, Leighton Contractors, Minotaur, Primary Industries and Resources 

SA, PepinNini Minerals Ltd, Rex Mineral Ltd, Santos, SCF Group, Southern Uranium Limited, Toro Energy Limited, & Western Plains Resources Ltd. 


17

Issue 6 

Aug/Sept 09 

$9.95 (incl. GST) 

ISSN 1836-0777 

Issue 8 

Dec 09 - Jan 10 

$9.95 (incl. GST) 

ISSN 1836-0777 

Issue 9 

Feb - Mar 10 

$9.95 (incl. GST) 

ISSN 1836-0777 

Issue 11 

June - July 10 

$9.95 (incl. GST) 

ISSN 1836-0777 

SACOME worked hard to promote the 

industry, communicating with both 

members and the community through a 

variety of publications. 

SA Mines and Energy Journal 

The SA Mines and Energy Journal continued 

into its second year of publication, retaining 

a high quality format and content with the 

purpose to inform a broad readership. 

Readership includes: 

• People within the mineral and energy 

resources industries 

• Service providers to the industry 

• Policy makers 

• Educators 

• Others with an interest in the local mineral 

and energy resources industries 

2009-10 main stories included the need for a 

deep sea port in South Australia, land access 

issues within the Woomera Prohibited Area, 

uranium, taxation and meeting the State’s 

energy needs. Regular features included finance, 

infrastructure, innovation, legal, community, 

Indigenous issues, workforce and education. 

Another interesting regular piece profiled a 

successful or innovative significant person in 

the industry. 

The journal is a valuable resource, providing 

timely and relevant content in a glossy 

and easy to read style. Distributed to 

approximately 2000 people, including 

SACOME industry and service provider 

members who receive it with their 

membership, it is also available at selected 

newsagencies or by paid subscription. 

SACOME’s Director, Membership and 

Communications is the Editor of the journal, 

supported by a committee which includes 

knowledgeable industry members. This 

structure has facilitated accurate, relevant 

and informative editorial content and enabled 

tackling of the controversial issues in a 

researched and balanced manner. 

E-news 

SACOME distributed electronic newsletters to 

its members on a fortnightly basis. 

Designed to inform members about upcoming 

events or issues important to the industry, 

these also include news about new projects 

All at sea 

SA miners battle for a deep port 

Special Feature 

PROFESSIONAL 

SERVICES page 23 

Mining in 2010 

The Henry 

tax eruption 

Major confusion and delays 

SA people, projects, policies, markets & happenings 





or initiatives. The newsletter is an important 

resource for communicating external events 

both in our state and interstate which 

members may be interested in, as well as 

SACOME functions, workshops and seminars. 

E-news has also been an excellent medium 

to advise members of SACOME’s positioning 

and activities on important issues, and also 

to seek input on relevant topics such as the 

Woomera Prohibited Area review and 

marine parks. 

Media 

SACOME featured heavily in the print and 

broadcast media in the 2009-10 financial year. 

Chief Executive Jason Kuchel is regularly cited 

in both the state and national media on a 

broad range of issues affecting the local mineral 

and energy resources sectors. Tax reform and 

political change were popular topics, together 

with the more perennial issues including 

infrastructure and land access. 

Chief Executive Jason 

Kuchel is regularly cited 

in both the state and 

national media on a 

broad range of issues 

affecting the local 

mineral and energy 

resources sectors. 

SACOME’s media releases for the year included: 

• The Industry Code of Practice launch 

• High quality resource projects cushion SA 

from the impact of the global financial crisis 

• Defence urged to clarify access conditions for 

miners in Woomera weapons testing area 

• The Geoscientist Assistance Program – a 

joint SACOME / PIRSA initiative 

• Major parties urged to commit to State 

resources infrastructure needs 

• SA Mines Emergency response competition 

• Families explore minerals at the SACOME 

treasure Hunt 2010 

• Call to replace outdated royalties system 

• Industry views on the Henry Resource Super 

Profits Tax 

• SA most vulnerable state to proposed 

Resource Super Profits Tax 

Editorial content was provided to various 

publications including Australia’s Mining 

Monthly, The Roxby Downs Sun and the Whyalla 

News. Articles in regional newspapers were 

tailored to enhance community understanding 

of the minerals and energy sectors, whilst 

those for national journals reported on issues 

specifically affecting our state - in line with the 

industry readership. 


19

SACOME draws together a diverse group 

of industry members, service providers and 

government representatives at a variety 

of high calibre events designed to share 

information, as well as provide social and 

networking opportunities. SACOME’S range 

of events increased over the year, with 

attendance rates also continuing to increase. 

30th Birthday Celebration Dinner 

In late 2009 SACOME celebrated its 30th 

birthday with a well attended dinner at the 

Adelaide Convention Centre. A panel style 

discussion featuring Fraser Ainsworth, Derek 

Carter and John Roberts took us back to when 

it all began and recapped the ups and downs 

of life in the mining industry. The night also 

featured a special presentation to Derek Carter 

and John Roberts for their services, as the first 

two inductees of SACOME life membership. 

In keeping with the birthday theme, 

SACOME gave away 30 door prizes on the 

night including items donated by members 

and others. 

Breakfast Briefings 

20 annual report 2010 

30th Birthday Dinner; MC Brenton Ragless, 

Paul Holloway, John Roberts, 

Fraser Ainsworth and Derek Carter 

2010 saw the introduction of the member 

only breakfast briefing series, aimed towards 

providing our service industry members with

SACOME 30th birthday dinner - Jonathon Forbes, 

(SACOME) Andrew Minns (Iluka) & Lidia Minns and 

Fraser Ainsworth (former SACOME President) 

Dean Dalla Valle (BHP Billiton) with Tony Wilkinson 

(Integralign) and Stephen Lawrie (Schulz Hobbs) at 

the September 2009 lunch 

firsthand knowledge of emerging mining project 

developments. The breakfasts each featured 

key representatives from three mines in South 

Australia and proved extremely popular, leading 

to plans for an increase next year from three to 

four breakfasts per calendar year. 

Corporate Lunches 

SACOME’S corporate lunch program has 

remained an important feature in the 

calendar of key industry and public sector 

representatives, as well as our valued 

service providers, for many years. Providing 

opportunities for resource companies and 

service providers to be kept at the forefront of 

issues affecting the sector and to engage with 

the wider business community, attendance 

continued to increase in 2009/2010. 

The Women in Resources lunch attracted a huge 

attendance, with over 60% of the guests being 

female for the first time at a SACOME event. 

The first lunch of 2010 saw Leader of the 

Opposition, Ms Isobel Redmond MP take to the 

stage to talk about resources issues in the lead 

up to the State election, followed in April by 

Terry Burgess presenting the new OZ Minerals. 

SACOME staff shaved and coloured their hair 

for the Leukaemia Foundations World’s Greatest 

Shave at the April lunch, raising over $2,600 

with generous support from members. 

Wrapping up the financial year in mid June, the 

Hon Craig Emerson MP – Federal Minister for 

Small Business and a last minute substitute for 

Hon Martin Ferguson AM MP, spoke to a large 

audience of 350 apprehensive guests on the 

Entertainment at the 

30th birthday dinner 


21

proposed introduction of the Resources Super 

Profits Tax (RSPT). This hugely successful and 

quite heated lunch invited some very interesting 

discussion at question time. 

Gala Dinner 

SACOME again hosted the Annual Resources 

Industry Dinner at the Hilton Adelaide, following 

the Paydirt South Australian Resources and 

Energy Investment Conference (SAREIC). 

Renowned business commentator, Robert 

Gottliebsen provided a very engaging talk to 

the 360+ audience, in particular sharing his 

thoughts on the newly introduced and now 

defunct RSPT. Door prizes, an auction to raise 

funds for the Royal Flying Doctor Service 

and entertainment were features of a very 

enjoyable evening. 

Seminars & Workshops 

Greg Pattinson, Chris Nunis and Steve McAllister 

(Bureau Veritas Amdel) at the April lunch 

Rachael Sullivan (PWC) with Duro Curlija (Boral) at 

the March breakfast briefing 

Highly acclaimed econoomic commentator 

Robert Gottliebsen presents at the 2010 Gala Dinner 

Kim MacNamara (KJM Contractors) and MC Kelly Nestor 

collaborate for the prize draw at the 2010 Gala Dinner 

During the year SACOME hosted many 

workshops and seminars for its members, 

many as collaborative efforts with various 

partners. Some topics included proposed tax 

reform, uranium information, geology for non 

geologists, Geoscientist Assistance Program 

(GAP) briefing and an information session on 

accessing native title land. 

Andrew Freeman (SANTOS) Paul Heithersay (PIRSA) 

and Keith Yates 

Steve Whitham (Whitham Media) and Samantha 

Wilkinson (OZ Minerals) at the April lunch 


SACOME’s 2010 Treasure Hunt 

Image courtesy of Solstice Media 

In late 2009, the Skills & Education 

Blueprint 2010 was ratified by SACOME 

Council and released. It outlined four 

strategies that were developed in response 

to the main skills issues identified by 

SACOME’s Skills and Education Committee 

as core focus areas. 

The Blueprint followed on from the work of 

early 2009 completed by SACOME’s Skills and 

Education Committee, comprising resource 

industry members and SACOME’s Director 

Skills and Education. The four strategies focus 

on the areas of future workforce development; 

attraction of key skills; retention of key skills 

and Indigenous engagement. 

Future workforce development 

In line with Strategy 3 of SACOME’s Skills & 

Education Blueprint, SACOME has been 

very active in promoting careers in the 

resources industry to young South Australians 

in order to develop a long term workforce for 

the industry. 


23

With funding from BHP Billiton, the Resources 

and Engineering Skills Alliance (RESA) and 

the Department of Trade and Economic 

Development’s ‘There’s More To It’ careers 

promotion campaign, and with support from 

the Department of Primary Industry and 

Resources, SACOME has conducted hundreds of 

presentations at primary and high schools across 

the state highlighting careers in the industry. 

The technical and science based presentations 

have been extremely popular, also assisting to 

increase knowledge of mining and exploration 

processes and interest in science subjects. 

SACOME purchased a careers promotion vehicle, 

sponsored by Rex Minerals, Beach Energy, Oz 

Minerals, Terramin and One Steel Whyalla for the 

delivery of these presentations. 

In August 2009, SACOME delivered mining 

and geosciences based activities as part of 

National Science Week at the SA Museum, and 

in September 2009, SACOME partnered with 

Youth Jet to deliver the annual ‘Unearth your 

Future’ program. Visits to Kanmantoo Mine, 

Penrice Marble Mine and Stonyfell Quarry were 

coordinated for visits by year 10 -12 students. 

Following the success of the inaugural 

SACOME Treasure Hunt in 2009, SACOME 

again delivered a Treasure Hunt with support 

from GHD, the Adelaide Festival Theatre, State 

Library, SA Museum, Adelaide City Council, 

RiAus and PIRSA on April 14 2010. The theme 

of this year’s Treasure Hunt was ‘Environment 

and Sustainability in the Resources Industry’,in 

line with the United Nation’s declaration 

of 2010 as the Year of Biodiversity. 135 

participants took part in the free event and 

learnt a lot about the resources industry while 

having fun in the Adelaide CBD. The Treasure 

Hunt was also sponsored by the Resources and 

Engineering Skills Alliance (RESA). 

SACOME was also active in discussions with 

the Department of immigration and Citizenship 

on proposed changes to 457 Visa requirements 

which affect industry’s ability to secure specialised 

skills from overseas, and was involved with the 

National Resources Sector Employment Taskforce 

in relation to their Resourcing the Future paper. 

Attraction of new skills 

An important component in skills issues is the 

identification of precisely the types of skills 

and at what levels of experience these skills 

are required. To this end, SACOME sought 

input from industry members through the 

2010 Resources Industry Skills Survey. The 

success of the previous year’s survey and the 

many beneficial uses of this data reinforced 

the need to continue the survey on an annual 

basis. Results will allow for a planned approach 

to skills attraction and be used to inform 

interested, relevant members such as providers 

of recruitment services. 

A highlight of the year has been the 

background work the Director Skills & 

Education completed to increase the profile 

of women in the industry, as SACOME’s 

representative on the Women in Resources 

South Australia committee, established in early 

2010. The committee includes representatives 

from BHP Billiton, Beach Energy, Santos, 

Finlayson’s and PricewaterhouseCoopers and 

will hold its official launch event in late 2010. 

Retention of Key Skills 

The Retention of key skills strategy currently 

focuses on the Geoscientist Assistance Program, 

funded by the Department of Primary Industry 

and Resources’ (PIRSA) PACE initiative, in 

the amount of $750,000. This SACOME and 

PIRSA partnership was critical in ensuring 

that graduates from the 2009 cohort of 

Geoscientists were retained to work in the 

state and not lost to interstate or overseas 

competitors. The project plan for the roll out 

of the program was developed in 2009 and 

commenced operations in late 2009. By June 

2010 the program has been established as a 

successful industry/Government initiative and 

has assisted 15 Geoscientists to be retained by 

SA companies. 


Indigenous Engagement 

A strategy was developed and a timeline 

established, with the development of a 

detailed framework requiring extensive 

research and collaboration programmed for 

late 2010 and 2011. 

In other areas, the Skills and Education 

division ran a very popular Geology for Non 

Geologists course, for people working in 

industry in non-technical roles who wanted to 

increase their knowledge of core business. 

SACOME worked closely with industry, state 

and federal government and educational 

institutions throughout the year to address 

skills issues facing the resources industry. 

Alex Sen at the 

Tunkilla gold deposit 


25

Indigenous Land Use Agreements 

SACOME continued to work closely with 

various groups on Indigenous Land Use 

Agreements (ILUA’s), with significant progress 

made during the year. 

In the last quarter of the 2009-10 financial 

year, the Adnyamathanha people, after long 

and difficult negotiations, finally agreed on 

a minerals exploration Indigenous land use 

agreement (ILUA). The agreement will be 

sent to the National Native Title Tribunal for 

Registration after signing off by the State, from 

which time it will be available for use. 

Negotiations were also held with the people 

of the Far West Coast, and SACOME believes 

agreement has been reached, subject to 

community endorsement this financial year. 

The State made an acceptable offer to the 

Dieri people with regard to their Consent 

Determination, with the Dieri advising the 

State and SACOME that they would now like to 

conclude the petroleum conjunctive ILUA. 

Planning for the roll-out of minerals exploration 

ILUAs commences in April of each year for 

the ensuing 12 months. In 2010 the SACOME 

negotiation team, together with the State, 

SA Native Title Resolution (SANTS) and the 


elevant claimants commenced planning for 

the 2010-2011 year with aims to achieve 

petroleum conjunctive agreements with the 

Wankangurru/Yarluyandi and the Arabunna 

peoples and to commence discussion towards 

a minerals exploration agreement with the 

Kokatha Uwankara. If successfully concluded, 

approximately 15.4% of the State will be 

covered by ILUA’s. 

A new factor that came to play within the year 

was the increased influence of the Federal 

Court to have more claims resolved. While 

it is the preference of the court to take into 

consideration the aspirations of the SANTR 

group prior to resolution of the various Native 

Title claims, they are now imposing much 

tighter deadlines that has previously been the 

case. The SANTR process gives South Australia 

a clear advantage in achieving collaboration 

between all interested parties towards the goal 

of resolution. 

as the Anangu Pitjantjatjara Yankunytjatjara 

(APY) and SACOME continues to pursue 

alternative sources of funding for this area. 

SACOME promoted the use of ILUAs to industry 

as the best way to access native title land, with 

a free information workshop provided to both 

the petroleum/gas and the minerals sectors on 

the use of ILUAs and their clear advantages 

over alternative procedures. It is hoped that 

a similar workshop can be held in Western 

Australia in the 2010/11 financial year. 

Aboriginal Heritage Act Review 

SACOME joined with SA Farmers Federation, 

Local Government Association, with fishing 

interests the State Aboriginal Heritage 

Committee and the Aboriginal Congress of 

South Australia to put a joint submission on the 

review of the Aboriginal Heritage Act, 1988 to 

the State. 

This historic level of collaboration should lead to 

positive changes to the Aboriginal Heritage Act. 

SACOME believes the product of the 

minerals and petroleum negotiations are 

the best arrangements in Australia for 

access to Aboriginal land. Funding from the 

Federal Attorney General for the Chamber’s 

participation is enabled under the Native Title 

Act for the settlement of Indigenous Land Use 

Agreements. Unfortunately it does not extend 

to areas where land use is already settled, such 

Looking at ‘bush tucker’ with some of the 

Antakarinja elders 


27

SACOME continued to ensure industry 

was represented on a wide variety of 

environmental issues by providing input to 

legislative reviews and government policy. 

Developing Energy Policy 

SACOME, through the Energy Policy Working 

Group, produced two reports in collaboration 

with the Resources and Energy Sector 

Infrastructure Council (RESIC) and ElectraNet 

(Transmission Network Service Provider for 

South Australia). The first report investigated 

the future electricity demand of the resources 

industry beyond 2020, based on forecasted 

demand provided by resource companies. The 

second report combined these projections with 

forecasted demand profiles for the whole of SA 

out to 2030, current supply and future projects 

and the necessary infrastructure requirements 

to enable SA’s extensive renewable energy 

resource potential to be realised. 

The second report provided the momentum for 

ElectraNet and the Australian Energy Market 

Operator (AEMO) to undertake a joint feasibility 

study of transmission development options that 

could economically increase the interconnector 

transfer capability between South Australia and 

other National Electricity Market (NEM) regions, to 

capitalise on the State’s renewable energy resources. 

A comprehensive Energy Policy is being 

developed by the Energy Policy Working Group 

Flowing steam 

Image courtesy of 

Geodynamics Ltd 


which will be released in the next financial year. 

During the year the Energy Policy Working 

Group contributed to reviews of the NEM in 

light of potential climate change policies being 

considered by the Federal Government and the 

Federal Government’s Energy White Paper- since 

delayed due to deferral of the Carbon Pollution 

Reduction Scheme (CPRS). 

Climate Change Policy 

Debate on Australia’s policy response to 

climate change was marked by complexity, 

compensation, high economic cost, proposed 

tax reform, lack of environmental benefit, 

leadership spills and finally delay of the CPRS 

until at least 2013. 

This accentuated the uncertainty already being 

experienced within the energy sector in terms 

of investment in renewable and conventional 

generation, and transmission and distribution 

infrastructure. 

Due to the delay of the CPRS, there was limited 

scope for input to climate change policy in 

the 2009-10 year, however over this time 

SACOME participated in discussions with 

the resources industry nationally through the 

MCA, on potential policy options to managing 

greenhouse gas emissions and the key 

parameters the industry will apply to judge 

future Australian Government framework. 

SACOME is developing a set of principles 

consistent with the MCA to frame its position 

on emissions pricing on the basis of: 

• Energy security 

• Market based 

• Trade competitiveness 

• Efficiency (economic, scheme design) 

• Simplicity 

• Effectiveness (reducing emissions, deploying 

new technologies, technology neutral, 

behavioural change) 

• Comprehensiveness 

• Complements and delivers on strategic 

energy policy 

• Complements energy market reforms, and 

other related policies such as energy efficiency, 

fuel and vehicle standards, and adaptation. 

• Revenue goes to transitioning the economy 

(e.g. assistance to low-income households, 

reduction in taxes, and maintaining trade 

competitiveness) 

• Facilitate Government/industry 

partnerships where gaps exist such as the 

commercialisation phase in the deployment 

of new technologies 

• Carbon offsets – allows a full suite of 

abatement opportunities to reduce 

emissions 

Solar panels 

Image courtesy of F-Cubed 

Cleantech Seminar 

During 2009-10 SACOME, in conjunction 

with KPMG and Australian Cleantech, held a 

seminar on clean technology opportunities for 

the resources industry. The seminar attracted 50 

people from both the resources and cleantech 

industry and heard presentations on the 

research, development and innovation road 

map for the SA mining industry. 

Solar concentrated photovoltaic systems, solar 

desalination, geothermal and soil mapping 

technology were discussed. Guest speakers 

included: Dr Kristin Alford (Bridge8), Steve 

Horne (Solfocus), Robert Pyman (F-Cubed), 

Jonathon Teubner (Petratherm), and Chris 

McDonough (Rural Solutions SA). 


29

Native Vegetation 

SACOME supported a recommendation to the 

Minister for Environment and Conservation by 

the Nature Foundation of SA, to allow resource 

companies to gain credits for significant 

environmental benefits (SEB) beyond their 

regulatory requirements for native vegetation 

clearances. 

Proposed amendments to the Native Vegetation 

Act 1990 debated by the previous Parliament 

Santos rig 

near Moomba 

did not allow for resource companies to 

receive credits for environmental benefits; 

however the federal election outcome called 

for a re-introduction of the Amendment 

Bill, providing the opportunity for change. 

SACOME’s view is that SEB credits would 

deliver positive outcomes for the environment 

by giving companies an incentive to direct 

SEB requirements to regional priorities in 

partnership with NRM Boards or conservation 

groups, rather than dispatching obligations 

through the Native Vegetation Fund where 

companies have no influence over how SEBs 

are invested. 

The proposal is currently under consideration by 

the Minister. 

Marine Parks 

The SA Government through the Department 

of Environment and Natural Resources (DENR), 

formerly the Department for Environment and 

Heritage, established a number of Marine 

Park local advisory groups to provide advice 

in the development of management plans and 

zonings for the 19 marine parks falling under 

the Marine Park Act 2007. 

SACOME has representation on 6 of these 

parks and was in close discussions with 

the DENR on all marine parks during the 

development of zones and management plans. 

This consultation continues, with the initial 

draft zoning proposals for sanctuary protection 

set for release for public discussion in October 

2010. Draft management plans and remaining 

zones will be consulted on by mid 2011. 

Submissions 

SACOME made submissions on behalf of the 

resources industry to the following legislative 

reviews and/or government policy areas: 

• Australian Energy Market Commission’s 

(AEMC) proposed rule change to the 

National Electricity Rules to enable efficient 

connection of new remote generation to the 

national electricity grid 

• Marine Parks (Zoning) Variation Regulations 

2010 

• Marine Parks (Parliamentary Scrutiny) 

Amendment Bill 2010 

• Proposed Nullarbor Wilderness Protection 

Area Report 

• Proposed Nuyts Archipelago and 

Investigator Group of Islands Wilderness 

Protection Area Report 

• Ten year review of the Yellabinna Regional 

reserve 

• SA Arid Lands Natural Resources 

Management (NRM) Board draft NRM Plan 


SACOME members comprise a broad 

range of organisations working directly in 

the South Australian mineral and energy 

resources sectors and those providing 

services to the industry. 

As at 30 June 2010, SACOME had 312 

financial members, comprised of 80 core 

industry members and 232 service providers 

and associates. 

Most of our industry members have activities 

here in South Australia, including mining, 

energy, exploration and extraction operations. 

Several of our exploration members moved 

into the production phase over the 2009/10 

financial year. 

Our service provider members are committed 

to servicing and supporting the industry. They 

are crucial to the resources sector in our state 

and are valued SACOME members, with voting 

rights and representation on our council. 

Industry Service providers Associates 

250 

200 

150 

100 

50 

0 

2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 

SACOME membership to 30 June 2010 

Membership Categories 

Core industry members 

Level 1A: Global Revenue >$500m 

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

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

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

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

Level 2: Explorer or early production with 

production outside of SA 

Level 3: Early production 

Level 4: Junior explorer or extractive

Richard Bonython, Derek Carter 

and Tony Belperio from Minotaur 

Exploration at Prominent Hill 

The South Australian Chamber of Mines 

and Energy is comprised of the following 

members as at 30 June 2010: 

Industry Members 

Adelaide Brighton Limited 

Adelaide Energy Limited 

Adelaide Resources 

AFMECO Mining and Exploration 

Ahava Resources Pty Ltd 

Alinta Energy 

Alliance Resources Limited 

Altona Energy/Arckaringa Energy Pty Ltd 

Archer Exploration Ltd 

Argonaut Resources NL 

Australian Zircon NL 

Barrick (Australia Pacific) Limited 

Beach Energy Limited 

BHP Billiton 

BHP Billiton Uranium Australia 

Cameco Australia 

Centrex Metals 

Copper Range Limited 

Diatreme Resources Ltd 

Dominion Mining 

Energy Exploration Limited 

Epic Energy 

Eromanga Uranium Limited 

Exco Resources 

Flinders Mines Limited 

Geodynamics 

Havilah Resources NL 


Heathgate Resources 

Hillgrove Resources 

HWE Mining Pty Limited 

Iluka Resources 

IMX Resources Ltd 

Innamincka Petroleum Limited 

Iron Road Ltd 

Ironclad Mining Ltd 

Linc Energy Ltd 

Lincoln Minerals Limited 

Marathon Resources Limited 

Marmota Energy 

Maximus Resources Limited 

Metals X Limited 

Minotaur Exploration 


Monax Mining 

Nyrstar Port Pirie Smelter 

OneSteel 

Oz Minerals Limited 

Penrice Soda Products Pty Ltd 

PepinNini Minerals Limited 

Petratherm Limited 

Phoenix Copper Ltd 

Polymetals Group Pty Ltd 

Quasar Resources 

Rex Minerals Ltd 

Rio Tinto 

RMG Services Pty Ltd 

Royal Resources Limited 

Santos Limited 

Sinosteel PepinNini Curnamona 

Management Pty Ltd 

Southern Gold Limited 

Southern Quarries & Direct Mix Group 

Southern Uranium Ltd 

Stellar Resources 

Straits Resources Ltd 

Strategic Energy Resources Limited 

Stuart Petroleum 

Sundance Energy Australia Limited 

Syngas Ltd 

Tasman Resources NL 

Teck Cominco Australia Pty Ltd 

Terramin Australia Limited 

Toro Energy Limited 

Torrens Energy 

Trafford Resources Limited 

Uranium Equities Limited 

Uranium Exploration Australia Ltd 

Uranium One Australia 

UraniumSA Limited 

Western Desert Resources 

Western Plains Resources 

Service Provider Members 

AGL SA Pty Ltd 

Abigroup Mining Services Pty Ltd 

Adciv Pty Ltd 

Adelaide City Council 

Adelaide City Engineering 

Adelaide Control Engineering 

Aggreko 

Ahrens 

Alexander & Symonds 

AMC Consultants 

Amdel Limited 

Apollo Global 

Aquatic Operation & Development Australasia 

Artcraft 

Asiaworld Shipping Services 

Atlas Copco Construction and Mining Australia 

ATS Workforce 

Ausenco Services 

Australian Camp Services 

Australian Civil & Mining Training 

Australian Training Alliance 

B.L. Shipway & Co 

Bateman Engineering 

Bianco Building Supplies 

Blackmore Property SA Pty Ltd 

Blake Dawson 

BMD Constructions 

Boart Longyear Pty Ltd 

Boral Resources (SA) Ltd 

BP Australia Pty Ltd 


33

Built Environs 

Buschutz Engineering Pty Ltd 

Carey Mining Pty Ltd 

Cavill Power Products 

CDE Capital Pty Ltd 

Chubb Fire Safety 

Coffey Natural Systems 

Commonwealth Bank of Australia 

Community Engagement Group Australia Pty Ltd 

Como Engineers Pty Ltd 

Complete Personnel 

Contract Resources 

Corporate Conversation 

Coventry Fasteners 

CQ Partners Pty Ltd 

Cryogenic Blasting Solutions 

D.J. Coughlan Drilling 

de Bruin Air Pty Ltd 

Diamond Conveyors 

Dixon Partnership Solutions 

DMAW Lawyers 

Downer EDI Mining 

E & A Ltd 

Ecological Associates Pty Ltd 

Penrice quarry 

EDN 

Electranet 

Emeco International Pty Ltd 

Enterprise Connect Mining Technology 

Innovation Centre 

Environmental and Biodiversity Services Pty Ltd 

ETSA Utilities 

Exact Mining Services 

Experience Matters 

F Cubed 

Finlaysons 

Flinders Ports 

Fyfe Pty Ltd 

Genessee and Wyoming Australia 

Geos Mining 

Geoscience Associates 

GHD Pty Ltd 

Golder Associates Pty Ltd 

Government Relations Australia Advisory Pty Ltd 

Grundfos Pumps Pty Ltd 

Gryphon Partners Pty Ltd 

Hatch Associates 

Hawker Britton Group 

Hays Resources and Mining 

Health Safety Environment Aust Pty Ltd 

Hughes Public Relation & 

Communication Counsel 

Hunt & Hunt 

Hunt Energy & Minerals co Pty Ltd 

Hybrid Energy Australia Pty Ltd 

Idam Distributors Pty Ltd 

Iman International Pty Ltd 

Ingenero 

Insight International Consultancy Pty Ltd 

Integralign Pty Ltd 

Intermodal Solutions 

Jardine Lloyd Thompson 

Jiangsu CSY Science & Trade Co 

John Nitschke Drilling 

Joie Creative 

Kellogg Brown & Root 

Kelly & Co 

Kimberley Global Pty Ltd 

KJM Contractors 

KPMG 

Lane Print and Post 

Lawson Risk Management Services Pty Ltd 

Leighton Contractors Pty Ltd 

Lester Franks Survey & Geographic Pty Ltd 

Liebherr Australia Pty Ltd 

Logistica 

Lucas Earthmovers Pty Ltd 

Ludowici Australia 

Macmahon Holdings 

Maloney Field Services 

Marlow Communications Pty Ltd 

Matlin Resources Pty Ltd 

Max Crane & Equipment Hire 

May Brothers Pty Ltd 

McDonald Steed McGrath Lawyers 

Mercury Firesafety 

Meridien Winches & Marine Equipment Hire 

Migration Solutions 

Minalysis Pty Ltd 


Minelab Electronics Pty Ltd 

Minerals & Metals Marketing 

Mining & Construction Safety Specialists 

Mining One 

Mining People International 

Mining Sims Aust 

Mining, Energy & Engineering Academy 

Minter Ellison Lawyers 

Monaco Distributors 

Morton Philips 

Mulgundawa Salt 

National Australia Bank 

National Jet Regional Services 

Normet Asia Pacific Pty Ltd 

OAMPS Insurance Brokers 

ODT Australis Pty Ltd 

O’Loughlins Lawyers 

Opposite Lock Adelaide 

Pall Australia 

Parker Hannifin (Australia) Pty Ltd 

Parsons Brinckerhoff 

Patrick Portlink (SA) Pty Ltd 

Paulka Radiation & Environment Pty Ltd 

Paydirt Media Pty Ltd 

Payneham Financial Services 

Peter Kittle Motor Company 

Piper Alderman 

Pirtek (Adelaide) Pty Ltd 

Plastic Systems Plus Pty Ltd 

Pneumark Automation Pty Ltd 

Port Adelaide Football Club 

Port of Melbourne 

Adelaide Brighton Ltd 


35

Powranna Consulting Pty Ltd 

PWC Services (PricewaterhouseCoopers) 

Qantas 

R W Way Management Pty Ltd 

RCR Positron 

Red Dirt Personnel Group 

Red Earth Training Solutions 

Renaissance Air 

Rexco People Pty Ltd 

Roadside Services & Solutions Pty Ltd 

Rossair Charter 

Roxby Serviced Offices 

Rural Solutions SA 

Samaras Group 

Scene Change Adelaide Pty Ltd 

SCF Group Pty Ltd 

Schulz Hobbs Pty Ltd 

Sharp Airlines 

Short Focus Films 

Short Focus Films 

Sierra One Global 

Signature Security 

Sinclair Knight Merz 

SkillsDMC 

SMC Pneumatics (Australia) Pty Ltd 

South East Australia Gas Pty Ltd 

Iluka’s Jacinth 

Ambrosia Mine 

Southern Steel Supplies 

Sparke Helmore Lawyers 

SRA Information Technology 

Stephens Strapping Supplies 

Stramech Engineering 

Strategic Energy Solutions Pty Ltd 

Sundowner Cabin & Tourist Park 

TAD Technical Careers & Contracts 

Tailored Promo Products Pty Ltd 

Telstra 

The Direct Mail Centre of Australia Pty Ltd 

The Productive Studio Pty Ltd T/A Image 

Brand & Colour 

The University of Adelaide Faculty of 

Engineering Computer and 

Mathematical Sciences 

Thebarton Senior College 

Thiess Pty Ltd 

Tonkin Consulting 

Torque Industries 

Total 

Tracey Brunstrom & Hammond Pty Ltd 

Tradition Rebuilt Quarries Pty Ltd 

Training Materials Consultancy 

Tyco Flow Control Pacific 

UCL School of Energy and Resources, Australia 

Ultimate Safety Solutions Australia 

Ultra Electronics Australia 

United Group Resources 

University of South Australia 

URB Mining Logistics 

Vectra Corporation Ltd 

VSL Australia Pty Ltd 

Watsons Lawyers 

Wave Rider Energy Pty Ltd 

Westpac Banking Corporation 

Whitham Media Australia 

Wilson People Management 

WorkPac Central Pty Ltd 

WorleyParsons 

Xceptional Recruitment Pty Ltd 

Yaran Business Services Pty Ltd 

York Civil Pty Ltd 

Associates 

Briggs, John 

Bradshaw, Peter 

Coppin, Teena 

Curtis, Lindsay 

Fargher, John 

Farrington, Vic 

Getz, Arnold 

Goldsworthy, Mark 

Jackson, Norton 

Johnson, Jerry 

Kennedy, Sean 

Pederick, Adrian MP 

Pederson, Egon 

Penfold, Mike 

Steed, Ivan 

Thomas, Dave 

Tonkin, David 

Zwiersen, Tim 


Your Council members submit the financial 

report of the South Australian Chamber of 

Mines and Energy Inc for the financial year 

ended 30 June 2010. 

Council Members 

Operating Results 

The surplus for the year amounted to $102,500 

(2009: $91,009). 

After Balance Date Events 

services provided on behalf of the Chamber on 

normal commercial terms. 

Signed at Adelaide this 22nd day of October 

2010, in accordance with a resolution of 

Council Members. 

The names of the council members throughout 

the financial year and at the date of the report 

are: 

Mr Graham Ascough Mr Andrew Freeman 

Mr Dean Dalla Valle Ms Ros DeGaris 

Mr Tino Guglielmo Mr Michael Reed 

Mr Jim White Mr Mick Wilkes 

Mr Terry Kallis Mr Mark McGeough 

Mr George McKenzie Mr John Roberts 

Mr Hans Umlauff Mr Kym Winter-Dewhirst 

Principal Activities 

The principal activities of the Chamber during 

the year were to represent the minerals and 

energy industry in South Australia and to 

promote the interests of the industry within 

the state. 

Significant Changes 

There were no significant changes in the state 

of affairs of the Chamber which occurred during 

the financial year. 

No matter or circumstance has arisen since 30 

June 2010 that has significantly affected or may 

significantly affect: 

(i) the operations of the Chamber; 

(ii) the results of the operations; and 

(iii) the state of affairs of the Chamber. 

Council Members Benefits 

During the financial year: 

(i) no Council member of the Chamber; 

(ii) no firm in which a Council member is a 

member; and 

(iii) no body corporate in which a Council 

member has a substantial interest, 

has received or become entitled to receive a 

benefit as a result of a contract between the 

Council member, firm or body corporate and 

the Chamber and no officer has received either 

directly or indirectly from the Chamber any 

payment or other benefit of a pecuniary value, 

with the exception of a Council Member, who is 

a partner in a legal firm which receives fees for 

G McKenzie 

Council Member 

T Guglielmo 

Council Member 


37

In the opinion of the Council members of The 

South Australian Chamber of Mines and Energy 

Inc, the summarised financial report comprising 

the Statement of Comprehensive Income, 

Statement of Financial Position, Statement of 

Changes in Equity, Statement of Cash Flows 

and the attached notes: 

a) present a true and fair view of the financial 

position of the Chamber as at 30 June 2010 

and its performance for the year ended on 

that date in accordance with Australian 

Accounting Standards (including Australian 

Accounting Interpretations) of the Australian 

Accounting Standards Board; and 

Signed this 22nd day of October 2010 in 

accordance with a resolution of the Council 

Members. 

G McKenzie T Guglielmo 

Council Member Council Member 

b) are consistent with the full financial report 

of the Chamber for the year ended 30 June 

2010; and 

c) at the date of this statement, there are 

reasonable grounds to believe that the 

Chamber will be able to pay its debts as and 

when they fall due. 


2010 $ 2009 $ 

Revenue 2,169,254 1,802,634 

Employee benefits expense (936,604) (795,858) 

Depreciation and amortisation expense (91,472) (55,771) 

Finance Costs (6,501) (5,454) 

Other expenses (1,032,177) (854,542) 

Other Comprehensive Income - - 

Retained Earnings $ 

Balance at 1 July 2008 357,367 

Surplus attributable to the Chamber 91,009 

Surplus attributable to the Chamber 102,500 

The accompanying notes form part of these summarised financial statements 


39


Assets 

Current Assets 

Cash and cash equivalents 1,307,961 1,328,687 

Trade and other receivables 79,243 49,992 

Other current assets 2,018 1,884 

Non Current Assets 

Property, plant & equipment 124,302 156,242 

Liabilities 

Current Liabilities 

Trade and other payables 890,979 1,040,607 

Short-term provisions 52,402 40,608 

Non Current Liabilities 

Long-term provisions 19,267 7,214 

Equity 

Retained earnings 550,876 448,376 



Inflows / (Outflows) 


Inflows / (Outflows) 

Cash flows from Operating Activities: 

Receipts from Members and Customers 2,172,064 2,645,674 

Payments to Suppliers and Employees (2,058,693) (1,599,030) 

Interest Received 28,548 32,897 

Net GST Refunded by/(Paid to) ATO (96,612) (151,163) 

Financial Expenses and Borrowing Costs (6,501) (5,454) 

Cash flows from Investing Activities: 

Proceeds from Sale of Plant and Equipment and Motor Vehicles - - 

Payments for Plant and Equipment and Motor Vehicles (59,532) (35,650) 

Cash flows from Financing Activities: 

Repayments of Borrowings - - 

Net increase (decrease) in cash held (20,726) 887,274 

Cash at the beginning of the year 1,328,687 441,413 



41

Statement of Comprehensive Income 

Statement of Financial Position 

Statement of Cash Flows 

The Chamber’s revenues from ordinary activities 

increased in 2010 by 20.3% to $2,169,254 

(2009: $1,802,634), which included Chamber 

function fees of $217,651 (2009: $181,145), 

Sponsorship of functions of $159,755 (2009:$ 

102,464), Subscription revenue of $1,146,978 

(2009: $1,087,179), Uranium education income 

of $40,000 (2009: $50,000), Sub leasing 

income of $118,964 (2009: $51,856), Grant 

funding reimbursements $120,989 (2009 

$95,028) and interest revenue of $28,548 

(2009: $32,897). 

Total expenditure increased in 2010 by 20.75% 

to $2,066,754 (2009: $1,711,625), which 

included function and project expenses of 

$450,609 (2009: $265,591), rent expenses 

of $216,451 (2009: $180,604), marketing 

expenses of $64,768 (2009: $44,032) travel 

expenses of $30,148 (2009: $34,568), 

employee benefits of $936,604 (2009: 

$795,858), recruitment expenses of $267 

(2009: $20,100) and depreciation expenses of 

$91,472 (2009: $55,771). 

The Chamber’s net assets increased by 22.86% 

in 2010 to $550,876 (2009: increased by 

25.47% to $448,376). This increase of 

$102,500 reflects the Chamber’s operating 

surplus for 2010. 

Total assets in 2010 decreased by $23,281 

or 1.51% to $1,513,524 (2009: increased 

by $860,123 or 127.11% to $1,536,805). 

Cash holdings decreased during the period by 

$20,726, trade and other receivables increased 

by $29,251 and property, plant and equipment 

decreased by $31,940. 

Total liabilities in 2010 decreased by 

$125,781or 11.56% to $962,648 (2009: 

increased by $769,114 or 240.86% to 

$1,088,429). Grants received in advance 

decreased by $152,555, sponsorship in 

advance increased by $4,445, subscriptions in 

advance increased by $18,240, trade payables 

decreased by $22,441, other creditors and 

accruals increased by $2,683 and employee 

benefits increased by $23,847. 

Net cash in flows provided by operating 

activities in 2010 were $38,806 (2009: 

$922,924), which represents a decrease of 

$884,118 in cash provided by operating 

activities. 

During 2010 receipts from members and 

customers decreased by $473,610 and 

payments to suppliers and employees increased 

by $459,663. 

The net cash flows used in investing activities 

were $(59,532). This was represented by 

payments for plant, equipment and motor 

vehicles of $59,532, which was an increase of 

$23,882 from the prior year. 

The net cash flows used in financing activities 

were $Nil (2009: $ Nil). 

The Chamber’s cash decreased by $20,726 

during the year to $1,307,961 (2009 increase 

of $887,274). 

The profit attributable to members increased 

in 2010 by $11,491 or 12.63% to $102,500; 

from a profit in 2009 of $91,009. 


Note 1: Basis of Preparation of Summarised Financial Report 

The summarised financial report has been prepared in accordance with 

Australian Accounting Standards, Australian Accounting Interpretations, and 

the requirements of the Associations Incorporation Act 1985. 

The financial report covers The South Australian Chamber of Mines 

and Energy Inc (Chamber) as an individual entity. The Chamber is an 

Association incorporated in South Australia under the Associations 

Incorporation Act 1985. 

Australian Accounting Standards set out accounting policies that the AASB 

has concluded would result in financial statements containing relevant and 

reliable information about transactions, events and conditions to which 

they apply. Compliance with Australian Accounting Standards ensures that 

the financial statements and notes also comply with International Financial 

Reporting Standards. 

The summarised financial report has been prepared on an accruals basis 

and is based on historical costs modified by the revaluation of selected non 

current assets and financial assets and financial liabilities for which the fair 

value basis of accounting has been applied. 

The accounting policies used in the preparation of the chamber’s full 

financial report have been consistently applied, unless otherwise stated and 

are, in the opinion of the Council members, appropriate to meet the needs 

of the Chamber. 

Note 2: Segment Reporting 

The Chamber operates within the minerals and energy industry to promote 

and protect the interests of the industry in South Australia. 

Note 3: Key Management Personnel Compensation 

The summarised financial statements and specific disclosures have been 

derived from the Chamber’s full financial report for the financial year. The 

summarised financial report does not, and cannot be expected to, provide 

as full an understanding of the financial performance, financial position 

and financing and investing activities of the Chamber and should be read 

in conjunction with the full financial report which includes all disclosures 

required by the relevant financial reporting framework. 

$623,144 $56,083 $679,227 

$562,148 $43,673 $605,821 


43

Note 4: Capital and Leasing Commitments 

Note 5: Contingent Liabilities 

(a) Finance Lease Commitments 

The Association had no finance lease commitments owing as at 

30 June 2010. 

The entity has a business card facility for $20,000 (2009 $20,000) with the 

Westpac Bank. An amount of $2,398 (2008 $710) was utilised from this 

facility as at 30 June 2010, leaving $17,602 (2009 $19,290) credit available 

for utilisation by the entity. 

(b) Operating Lease Commitments 

There were no other contingent liabilities as at 30 June 2010 (2009 Nil). 

Non-cancellable operating leases contracted for but not capitalised in the 

Financial Statements: 

Minimum Operating Lease 2010$ 2009$ 

Payments Payable: 

not later than 1 year 233,987 233,987 

later than 1 year but not later than 5 years 935,948 935,948 

later than 5 years - 233,987 

Note 6: Funding and Solvency 

The ability of the Council to provide services at the current level of 

operations is dependent upon the Association maintaining and increasing 

the existing membership subscription levels, sponsorship funding, grant 

funding and other additional sources of funding, as well as achieving 

positive operating cash flows and operational surpluses. 

Note 7: Events After the Balance Sheet Date 

The Chamber is currently operating from 1/290 Glen Osmond Road, 

Fullarton. The property lease is a non-cancellable lease with a three year 

term. Contingent rental provisions within the lease agreement require that 

the minimum lease payments shall be increased by CPI review plus 1% per 

annum. Under the agreement, an option exists to renew the lease at the 

end of the three year term, for an additional term of three years. 

(a) The financial report was authorised for issue on 22 October 2010. 

(b) There have been no significant events which have occurred subsequent 

to 30 June 2010. 

(c) Capital Commitments 

The Chamber has commitments for capital expenditure, which at reporting 

date have not been recognised as liabilities, of $Nil (2009 $Nil). 


Note 8: Association Details 

The registered office of the Chamber is: 

The South Australian Chamber of Mines and Energy Inc. 

Mines and Energy House 

290 Glen Osmond Road 

FULLARTON SA 5063 

The principal place of business is: 

The South Australian Chamber of Mines and Energy Inc 

Mines and Energy House 

290 Glen Osmond Road 

FULLARTON SA 5063 

Note 9: Remuneration of Council Members 

No amounts were received or are due and receivable by the Council 

members of The South Australian Chamber of Mines and Energy 

Incorporated during the year ended 30 June 2010 (2009 Nil). 

Other – Fees Paid 

Mr George McKenzie is a partner of a legal firm. The legal firm employs a 

number of practitioners who provided legal services to the Chamber. Fees 

paid to the legal firm for 2009/10 were $45,587 (2008/09: $20,565). 


45

SACOME Annual Report 2009-10

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