SACOME Annual Report 2008-09

President Report
Chief Executive Report
Our Staff
Behind the Scenes
Industry Development
Industry Promotion
Workforce Development
Education
Indigenous Education, Training & Employment
Indigenous Relations
Environment and Sustainability
United Industry
Report of the Council Members
Statement by Council Members
Income Statement
Statement of Recognised Income & Expenditure
Balance Sheet
Cash Flow Statement
Discussion and Analysis
Notes to the Financial Statements
Independent Auditor’s Report
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The global financial crisis (GFC) brought home to us all just how risky
and vulnerable commerce can be, but few realise just how especially
tough and challenging the mining industry really is.
The mining cycle begins with the exploration phase - one of the highest
risk past-times to engage in - it commonly requires expenditures of millions
of dollars to make one potentially economic mineral discovery. Making the
discovery is really only the start of a miner’s challenges - it then requires
millions of dollars of further expenditure to properly define the quality and
size of the discovery, establish it’s metallurgical, or recovery, characteristics,
it’s mineability, and to study and establish the infrastructure necessary to
support the proposed mining operation and transport it’s product(s) to
market - all in an environmentally responsible manner.
Once in production, the miner is at the mercy of varying commodity prices,
varying ore grades (ore quality), varying metallurgical recoveries and mining
conditions and, finally, adverse weather conditions which can affect access
to and from the mine. It is no wonder that mineral deposits are valuable
and commodity prices often high when the risky, challenging and costly
nature of the industry is taken into account.
Mineral exploration expenditure, supported by the South Australian
Government’s Plan for Accelerated Exploration (PACE), had reached
record highs before the GFC. Commodity prices fell and exploration
expenditure dropped in the March Quarter to $36 million, compared
to $68 million in the previous quarter. In spite of this drop, annual
expenditure in exploration still exceeds the target in the State’s
strategic plan.
New mineral resource projects underway or planned for South Australia
are, in many cases, of high quality and therefore have some inbuilt
protection against the full effects of the variables discussed above.
Despite the GFC, our South Australian resources industry is (for the
most part) business as usual - demonstrating the tough and resilient
nature of our industry in this State. Outstanding examples of progress
include; Terramin’s zinc mine commenced production in July 2008;
Oz Minerals, overcame financial difficulties and opened its $1.5 billion
copper and gold mine at Prominent Hill in May 2009; Iluka’s $420 million
mineral sands project commenced; Geothermal companies, supported by
government renewable energy initiatives have reached several milestones;
and the establishment of a UCL campus in Adelaide offering postgraduate
education for the energy sector.

With eleven operating mines now, and more in the pipeline,
I believe our sector will be the back-bone of our State’s economy
for many years to come.
Several issues affecting the rate of progress are unresolved, and the
chamber has been working on these during the year. Land access and
the need for a deep-sea port remain priorities for the industry.
I extend my very sincere thanks to our small, hard working and dedicated
team for their continuing outstanding commitment and effort during a
very busy year, under the outstanding leadership of our Chief Executive,
Jason Kuchel. I also extend my sincere appreciation to our Council and
the committees for their great contribution to our effectiveness.
JOHN ROBERTS
President

I suspect that many annual reports for 2009 reflect on the
global financial crisis and the impact that it has had on business.
SACOME members were all affected to varying degrees and some
continue to feel the effects of the GFC. For some SACOME members,
the beginnings of the economic downturn started back in July/August
2008, however, it was still generally business as usual for our members
and hence we were ramping up our activities.
In response to the ever-increasing interest in South Australia as a premier
place to develop mining projects, we launched our own magazine; The SA
Mines and Energy Journal in October 2008. This is the first state-based
resources magazine to be launched in at least ten years, and we have a
strong editorial team to ensure it is a standout publication in the sector.
In spite of the economic downturn, interest in the magazine has been
strong from the start, and this encourages us to develop it even further.
Another indication of the increasing interest in SA resources is the steadily
increasing attendance at our corporate events. In response, we created a
dedicated event manager role in July 2008, and we moved our 2009 lunch
program to the larger Adelaide Convention Centre.
In line with our draft South Australian resources industry strategic plan
and as part of our commitment to assist the resources industry develop
a skilled workforce and secure, efficient energy supplies, we created and
filled two new positions in September 2008; Director, Skills and Education
and Director, Environment and Sustainability.
These directors were charged respectively with working with the resources
industry on two projects; a skills and education blueprint for the resources
industry and a balanced energy framework to help industry meet the
Government’s greenhouse gas emission reduction targets.
Little over a month after their appointment, many of our members had
turned their attention from these issues, especially skills, to all matters
financial - and for some, thoughts were of survival. It is great credit to the
Director, Skills and Education and Director, Environment and Sustainability
and our industry members, who have stayed committed to these valuable
projects. Ultimately the time and effort invested now will bring rewards to
our industry members, helping them to thrive in the future. The Skills and
Education Blueprint and the first fruits of the environmental initiatives will
be delivered in the 2009/2010 financial year.
At the very end of the financial year, we also received a significant vote
of confidence from the State Government through Primary Industries and
Resources SA who provided SACOME a grant to run a program to retain
geoscience professionals in the sector. The Geoscientist Assistance Program
will commence later in 2009.
For SACOME’s part, the GFC caused us to turn our minds to how we
could respond to the emerging needs of our members. It became apparent
quite soon that we could assist our members attract foreign investment as
traditional sources of capital-raising quickly evaporated. In particular we
have been working with the government to attract foreign delegations and
provide them with the rationale to invest in SA mining and energy projects.

The Chinese in particular have sought to work with us and look to
SACOME as an organisation that can vouch for the credibility of
our members. We have hosted numerous delegations in the last
nine months of the financial year.
On to SACOME’s finances and naturally we took stock of our
financial situation early in 2009, not knowing what the next
12 months would bring. Accordingly, whilst SACOME is a
prudent organisation, we further tightened the purse strings.
We are also determined to keep our membership fees at the
same levels for the third consecutive year.
Nonetheless, our financial indicators at the end of the financial year
are quite strong with an excellent take up of SACOME sponsorship
packages for the 2009 calendar year, strong attendance at SACOME
functions (including record attendance at the SACOME Annual Gala
Dinner), advertising in the SA Mines and Energy Journal, and strong
membership growth. We are most pleased with the final result for
the financial year, where we exceeded our modest surplus target
and added to our retained earnings to provide more resliance to
the associations’ finances.
For a more indepth look at our activities over the past 12 months,
I commend the reports throughout this our 29th Annual Report. I would
like to thank our dedicated staff, as we strive to produce more and better
services to our members. As we enter the coming year, we continue to be
excited at the opportunities ahead for our industry and SACOME. As we
approach our 30th Anniversary, we believe there is much to celebrate.
Jason Kuchel
Chief Executive

From left to right:
Jonathon Forbes, Director Industry Development
Emma Hughes, Manager Careers & Promotion
Margaret Donaldson, Executive Assistant & Finance Officer
Stephanie Walker, Director Indigenous Relations
Aleisha Sullivan, Administration & Events Assistant
Megan Andrews, Executive Assistant
Kelly Thompson, Manager Events & Member Benefits
Bev Janssan, Director Member Services
Jason Kuchel, Chief Executive
Nigel Long, Director Environment & Sustainability
Anne Walker, Director Industry Marketing
Antonia Mertiris, Director Skills & Education (not pictured)

At the annual general meeting held 21 November 2008, SACOME
members voted to amend the constitution to, among other things,
provide new positions on the council to reflect the changing membership
composition. One position was created for a geothermal/renewable energy
representative and Terry Kallis of Petratherm was welcomed to this position
in May 2009.
The number of service industry positions was increased from one to
two and Michael Reed of Worley Parsons was welcomed to this position,
also in May 2009. Other new appointments to the Council are; Patrick
Clifford (who was elected at the 2008 AGM); Ros DeGaris (who filled
the vacancy for an extractive representative in May 2009); and Andrew
Freeman replaced Roger Kennett in November 2008.
Representing the Industry
Following changes to the constitution, the SACOME council is has 14
positions. Twelve positions represent the resources industry. Six councillors
represent one of the following sectors; minerals, petroleum, extractive,
exploration or geothermal/renewable energy. Two council members
represent the services industry. As at 30 June 2009, the SACOME council
comprised these representatives from the mining, petroleum, extractive,
exploration and service provider sectors.
John Roberts
SACOME President
Mithril Resources
Tino Guglielmo
Vice President
Stuart Petroleum
Dean Dalla Valle
Vice President
BHP Billiton
Graham Ascough
Mithril Resources
Derek Carter
Minotaur Exploration
Patrick Clifford
Ironclad Mining
Ros DeGaris
Adelaide Brighton
Andrew Freeman
Santos
George Mckenzie
Finlaysons Lawyers
Mark Milazzo
HWE Mining
Terry Kallis
Petratherm
Michael Reed
Worley Parsons
Jim White
OneSteel
Hans Umlauff
Iluka Resources

Committees
Sponsors
Executive Committee
Chaired by: John Roberts
Contact: Jason Kuchel
Sponsorship by member organizations assists SACOME to provide its annual
corporate lunch program and other events at economical prices. SACOME
would like to acknowledge the following sponsors for their support:
Exploration Committee
Chaired by: Kevin Wills (Flinders Mines)
Contact: Jonathon Forbes
Editorial - SA Mines & Energy Journal Committee
John Roberts, Tino Guglielmo, Graham Ascough
Contact: Anne Walker
Skills & Education Committee
Chaired by: Tino Guglielmo
Contact: Antonia Mertiris
Occupational Health & Safety Committee
Chaired by: Andy Simmons (BHP Billiton)
Contact: Jonathon Forbes
Energy Policy Working Group Committee
Chaired by: Darren Bilsborough (PB)
Contact: Nigel Long
Health, Safety, Environment & Community
Conference Organising Committee
Chaired by:
Contact: Jonathon Forbes
Apollo Global, BHP Billiton, HWE Mining, Image Brand & Colour,
Mithril Resources, PepinNini, Petratherm, Port of Melbourne, Qantas,
Santos, Simply Containers, Stuart Petroleum, Terramin & Toro Energy.

Guests of Oz Minerals visit new Prominent Hill mine
Inset - Johnaton Forbes, SACOME Director Industry Development

In representing the industry’s interests, SACOME has made headway on
a number of issues that impact the development of the resources sector.
The South Australian resources industry has faced a number of regulatory
and policy issues during 2008-09. Director Industry Development, Jonathon
Forbes has worked with Government and industry members with a view to
overcoming barriers to progression in the sector.
Flow Through Shares Scheme
Throughout 2008-09 SACOME has been urging the introduction by the
Federal Government of a flow through share (FTS) scheme, which would
make investment in exploration more attractive. SACOME has been the
lead agency in designing a model designed for the Australian tax system,
the fundamentals of which have been endorsed by industry. SACOME
thanks Alice McCleary for her excellent work in this area.
Another joint industry initiative was the engagement of Synergies
Economic Consulting to assess the stimulatory benefits of a FTS scheme -
or exploration tax credit (ETC) scheme, as it was referred to in the report.
In spite of the clear evidence that an FTS/ETC scheme could provide a
boost to the economy and overcome structural problems, no such scheme
was introduced in the 2009-10 Budget. The Federal Treasurer indicated it is
firmly on the Government’s agenda and SACOME, with the other states will
continue lobbying for a FTS/ETC scheme in the 2010-11 Budget.
Lobbying for Bulk-Commodities Port
SACOME has been lobbying for a deep-sea bulk-commodities port
for the past two years. Research shows that emerging projects in
South Australia need an export facility with the capacity to move up
to 10-12 million tonnes per annum (mtpa) by 2010 and up to some
20mtpa by 2015.
SACOME, with other State-based industry bodies nominated the
Association of Mining & Exploration Companies (AMEC) to lobby for the
scheme at a Federal level. A joint industry submission for the introduction
of the scheme was submitted to the Federal Minister for Resources and
Energy, the Hon. Martin Ferguson in November 2008. Signatories to the
submission included AMEC, SACOME, WA Chamber of Minerals and Energy,
Minerals Council of Australia (MCA), Australasian Institute of Mining &
Metallurgy (AusIMM), Queensland Resources Council (QRC), Australian
Securities Exchange (ASX) and the Australian Shareholders Association.
In 2008-09, SACOME lobbied both State and Federal Governments, via
the Resources and Energy Sectors Infrastructure Council (RESIC), directly,
and by making a submission to Infrastructure Australia for such a facility.
Port Bonython, situated just to the north of Whyalla in the Upper Spencer
Gulf of South Australia, has been identified as a suitable site for exporting
iron ore because its deep water would accommodate capesized vessels,
it’s proximity to standard gauge and narrow gauge rail and appropriate
land zoning. A consortium prepared a feasibility study, which the
government is considering.

Draft Code of Practice for Community Engagement
Finance Seminar
SACOME believes that effective community engagement is crucial to
the resources industry at every stage and can make the difference
between a project getting all relevant approvals to proceed in a timely
manner. In 2008, SACOME held two workshops where participants agreed
to develop an industry-, regulator- and community-accepted statement
of purpose and principles for effective community engagement as a good
practice tool for the SA resources industry. A working group was charged
with drafting the code to be considered by the industry and it is expected
to be ready for signing later this year.
Occupational Health and Safety
The SACOME Occupational Health and Safety Committee is committed to
the improvement of the safety and health of all employees in the resources
industry with the objective of an industry free of fatalities, injuries and
occupational disease.
The Mining & Quarrying Occupational Health and Safety Committee
(MAQOHSC), has provided funding to SACOME of $50,000 per annum
for two years to develop and manage a program that will assist emerging
South Australian mining companies assess their OH&S needs and
implement improvements to their health and safety management systems.
The program will be jointly managed by SACOME and MAQOHSC and is
likely to start in late 2009.
2008-09 was a particularly difficult period for companies to raise capital.
For members to receive the best possible information and advice in this
area, SACOME held a seminar in April, which included mergers and
acquisitions, equity and debt options, the banking sector outlook, the
Foreign Investment Review Board and disclosure obligations, case studies
and investors’ perspectives.
Nearly 50 people attended the seminar, which brought together an
impressive group of speakers from both South Australia and interstate.
SACOME thanks the guest speakers; Creagh O’Connor (Gryphon Partners),
Paul Early (Barclays Capital), Craig Ball (Taylor Collison), Jeremy Schultz
(Finlaysons Lawyers) and Kevin Malaxos (Centrex Metals).
Research and Development Project Grant
SACOME obtained a $50,000 grant from Department of Further
Education, Employment Science and Technology to complete an R&D
‘innovation roadmap’ for the State’s resources sector. The innovation
roadmap will identify current and future challenges and pathways for
strategic investment in R&D and innovation for researchers, business
and government. This project will be completed by the end of 2009.

Water Resource Management
SACOME Exploration Committee
In mid 2009, the Minister for Environment and Conservation gave notice
of an increase in the levy for water users in the Far North Prescribed Wells
Area from 1c/kl to 3c/kl for water allocated to the mining, energy, gas and
petroleum sectors (excluding co-produced water) for the 2009-10 year.
Although substantial, the increase initially proposed by SA Arid Lands
Natural Resources Management Board (SAAL Board), was 10c/kl (a
1,000% increase). SACOME and industry members found this original
proposal unacceptable and put its positon to the SAAL Board, Department
of Water, Land and Biodiversity Conservation (DWLBC), and directly to
the Minister for Mineral Resources, and Minister for Environment and
Conservation. SACOME highlighted the disproportionate impost on the
resources industry compared with other users, and the significant cost
on the industry to identify and access water, essential to its operations.
The SAAL Board, DWLBC and Primary Industries and Resources SA
(PIRSA) have undertaken in future to consult with all stakeholders in the
Far North Prescribed Wells Area in relation to water management and
programs within the region, including the raising of levies. The Chamber
acknowledges the support of PIRSA - Mineral and Energy Resources
division to achieve the amendments to the proposed levy increase.
The SACOME Exploration Committee has been very active during 2008-
09 and continues to be a valuable forum for responding to a range of
issues affecting exploration in South Australia. The 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.
Land Access
Access to the Woomera Prohibited Area (WPA) is an ongoing problem for
explorers, as the two major industries of mining and Defence seek a way
for co-existence.
The Woomera Prohibited Area
Some exploration companies have found access hard or near impossible
over the last 12 months as restrictions have been tightened in certain
areas of the WPA. In October 2008, SACOME representatives met with the
Federal Resources and Energy Minister, the Hon. Martin Ferguson to seek
assurance that the stated policy of co-existence between the mining and
defence industries in relation to the WPA has real meaning and value.

As a result of lobbying Primary Industries & Resources SA (PIRSA),
Defence SA and the Department of Defence have met regularly to
discuss exploration companies’ requests for access on a case by case
basis. Also, PIRSA MER prepared a report on the mineral prospectivity of
the WPA, which enables both PIRSA MER and Defence to better understand
the locations identified by exporers as highly prospective, and to consider
how defence activities might work around those sectors.
The South Australian Minister for Mineral Resources Development,
the Hon. Paul Holloway MLC has acknowledged the constructive
contribution of SACOME and its members has made on this issue.
Cultana
The existing Cultana Training Area is the major training area for
Commonwealth Defence Force units based in South Australia and
is increasingly used by interstate units. Cultana occupies 484 km 2
in the State’s mid-west.
The State and Commonwealth governments propose to expand the
Cultana Training Area to a total of 2,300 km2 by incorporating pastoral
leases to the west of the current training area. The State Government
is negotiating a 75 year lease (with a further 25 year option) to the
Commonwealth Government.
The proposed military expansion area is highly prospective for copper,
gold, uranium, iron and base metal mineralisation. The expanded area
would also incorporate important infrastructure corridors for rail, road,
water and power that service resource processing sites at Whyalla, Port
Bonython and Port Augusta, and provide important services to Northern
Spencer Gulf towns and the Eyre Peninsula.
The use of this area for defence purposes may impact upon all current
and future exploration, mining, oil, gas, geothermal and associated
infrastructure operations in this region and any further grants of rights
in this area will be made subject to the Commonwealth occupation.
SACOME is working closely with State and Federal agencies to ensure
the best possible access regime for its members under the lease.
Memorandum of Understanding (MoU) between the Australian
Government and the State is intended (among other things) to facilitate
and manage continued access for mineral, petroleum and geothermal
resource exploration, development and production operations. SACOME
has been providing advice and insights into how this can be managed.

Enhancing understanding about the South Australian resources has
become more effective with the launch of the sector’s own magazine.
The South Australian Chamber of Mines and Energy launched its own
magazine in October 2008; the SA Mines and Energy Journal, which it
hopes will be the best-quality resource-industry publication in Australia.
Anne Walker, Director Industry Marketing, who is charged with enhancing
understanding about the South Australian resource industry, established
the magazine in partnership with Solstice Media. The SA Mines and Energy
Journal is the ideal medium to inform those in the industry, and those
providing services to the industry, about the issues affecting the sector.
The magazine regularly covers infrastructure, legal, community, Indigenous,
finance and workforce issues. Every issue has at least one feature story on
some important and timely issue. In October, the feature story was about
the scale of the potential of the sector. In December 2008, the Oz Minerals
Prominent Hill project was featured. February 2009 reported on how the
sector was riding out the global economic storm. In June, the main story
explored issues relating to Chinese investment in the sector.
The direction of the editorial is guided and the content checked by the
Editorial Committee, comprised of industry members. The committee
ensures a credible and constructive treatment of the issues.

David Knox (CEO Santos) and John Roberts
(SACOME President) at the launch of the magazine
Inset - Derek Carter (Minotaur) with the first edition
Images courtesy of Solstice Media

The editorial team acts with integrity and aims to examine issues and
make informed comment on the bad, showcase the good and tease
out complexities and misconceptions. It is SACOME’s intention that the
publication be relevant and informative not just for the industry, but for
all who have an interest in the resources sector, including communities,
educators and policy makers.
The SA Mines and Energy Journal is printed bi-monthly with 52 fullcolour,
glossy pages. Controlled circulation is around 2,000 per edition.
The magazine’s readership is primarily in South Australia but includes
every state and territory. It has also generated interest overseas. SACOME
members receive complimentary copies of the magazine and are also
entitled to a discount on advertising. A complimentary trial subscription
has been given to a number of non-members. The magazine is also
available online at www.sacome.org.au/magazine.
The magazine is primarily paid for by advertising, solicited by Solstice
Media. SACOME and Solstice Media are pleased with the initial success
of the magazine - in spite of the economic downturn. Paid subscriptions
also make a small contribution to revenue, and the team hopes to increase
this as it converts the non-member complimentary subscriptions to paid
subscriptions, and by promoting the magazine to a broader readership.
Media Releases
New magazine launched - 2 October 2008
SACOME unveiled Australia’s first new State-based mining
and energy masthead in more than 10 years.
Family Activity: Exploring Minerals in the CBD - 15 April 2009
SACOME hosts families in mineral resources ‘treasure hunt’
to raise awareness of minerals in everyday life.
Indigenous Activist to Address Mining Industry - 6 May 2009
Noel Pearson, Cape York Partnerships and Managing Director Rio
Tinto Australia Stephen Creese share the stage to speak about the
developing regional communities.
No Funding for Badly Needed Port - 6 June 2009
State Budget omits funds for badly needed exports facility at
Port Bonython leaving mining industry in limbo.
Media Coverage
SACOME, and Chief Executive Jason Kuchel in particular, is regularly
cited in the State, and increasingly in the national media on the range
of issues affecting the South Australian resources sector. Common
topics during 2008-09 were the need for a deep-sea port, changes
in economic environment and the effects on the sector such as
employment and finance.
SACOME provided editorial to a number of publications, including monthly
editorial for regional newspapers; The Roxby Downs Sun and the Whyalla
News. The articles are designed to enhance communities’ understanding
about mining and energy.

Babcock & Brown, Leigh Creek

The South Australian resources industry has had a critical need for
skilled workers and even in a downturn, certain skills are still in demand.
SACOME is taking a long term view on addressing the skills demand.
The growing importance of identifying and managing workforce issues
in the resources industry and the acute skills shortage experienced by
the resources sector in 2008, led the Chamber to create a new position,
Director, Skills and Education. Antonia Mertiris was appointed in September
2008 and the Skills & Education Committee comprising representatives of
resource industry members was established soon after. They were charged
with identifying the key issues facing organisations in relation to workforce
planning and management, many of which were emerging from the global
financial crisis, superseding the skills crisis.
Given the uncertainty organisations were facing of what the ensuing
months would hold, the landscape had changed from just months earlier
where all skills were in high demand to one of a more cautious wait-andsee
approach. By February 2009, it was clear that vacancies were down
and although key roles were still required, the committee determined that
now was the time to focus on long term strategies to address a small
number of critical workforce issues.
In order to give industry a picture of current skills demand, SACOME
developed a resources industry skills survey, completed by twenty
organisations. Questions were mostly about current market conditions
relating to competitors; current resources; and required resources.
Data about methods of attraction, particular skills required, where the
main competition for skills comes from, and issues impeding attraction
informed the Skills and Education Blueprint.
The following four strategies are the focus of the SACOME Skills
& Education Blueprint to be released in the second half of 2009:
Attraction of key skills
Key skills identified by industry will be the target of a panel of South
Australian recruitment agencies in order to ensure a continuous supply
of candidates to meet skills demand as it arises.
Retention of key skills
Due to the slowing of mineral exploration and employment opportunities
for geoscientists with them, a retention strategy to be developed and
implemented was given priority.
Developing a future workforce
The development of a resources industry careers-promotion campaign for
primary, high schools and tertiary institutions across the state was deemed
a high priority in order to ensure a viable future for the industry maintained
by a home grown future workforce.
Indigenous engagement
The development of a comprehensive framework identifying relevant
organisations and funding available to assist member organisations to
meet their Indigenous employment initiatives.
Primary Industry and Resources SA, through its Plan for Accelerated
Exploration has provided SACOME a grant of $750,000 to develop and
manage a program that will retain geosciences professionals in the
industry. The two-year program will commence late 2009.

SACOME treasure hunt
Image courtesy of Solstice Media

Engaging with students is one of the ways in which SACOME is
contributing to the future workforce for the resources industry.
Emma Hughes replaced Aoife O’Mahony as our Manager Careers
Promotion mid-2009 and continues this valuable work.
“There’s More to It” Careers Promotion Campaign
SACOME worked with the Department of Trade and Economic
Development to develop this mass media careers-promotion campaign.
This SA Government initiative targeted years 9 and 10 students to increase
the awareness of careers in the resources and defence industries.
SACOME and participating members received excellent brand exposure
including material in The Advertiser newspaper, the National Careers
& Employment Expo and on the website; www.theresmoretoit.com.au
This campaign has already engaged 11,000 students through the website
and so far the resources career videos have been the most popular on
the site. SACOME coordinated “ultimate work experience” prizes for two
students with Terramin and Monax Mining as part of the campaign.
Minerals Treasure Hunt
Primary school students and their parents participated in the inaugural
SACOME Treasure Hunt during the April 2009 school holidays. The treasure
hunt aimed to raise awareness of the role of minerals in everyday life and
redress the misconceptions associated with the resources industry. The
treasure hunt was held in the Adelaide CBD and participants followed a
route, answering questions on mineral resources, realising their uses in
everyday products and taking part in activities along the way.
Marathon Resources, Santos, the South Australian Museum, State Library
of South Australia and SA Water participated in the event. The evaluation
of the activity showed a very positive response from participants.
Schools Video Conference
In partnership with Skills DMC, SACOME held a video conference
for students at 50 regional schools during June 2009 explaining
the opportunities available within the sector. Volunteers from the
industry shared the experience of their career to date. Also, high school
students attending the VET Certificate 1 course in early January were
welcomed to the industry with a welcome pack and information on
the resources industry.
Future Women in Resources
SACOME ran a writing competition aimed at encouraging young
female students to consider the resources industry as a future career
option. The winning entry addressed the topic: “Success - how science
and maths will take you there”, in which a student wrote about the
epiphany she had watching blasting, and the connection she made
between what she observed and the theory behind it. The winning article
was posted on the SACOME web site and published in the SA Mines &
Energy Journal, and regional newspapers.
The SACOME education program is supported by BHP Billiton.

Noel Pearson with Annesley College students
Student image courtesy of Solstice Media. Inset - Sam Poes (OneSteel)

SACOME works with industry, governments and Indigenous representatives
to develop opportunities for Indigenous people. SACOME finds itself
increasingly assisting those resources companies – and their contractors
and suppliers – seeking to engage with Indigenous South Australians.
SACOME has a history of advocating and negotiating, and Stephanie
Walker, Director Indigenous Relations leverages the expertise to promote
greater cooperation and partnering with the State and Federal governments
to achieve meaningful benefits for Indigenous people.
The memorandum of understanding between SACOME, the State,
SA Native Title Services (SANTS) and the Congress of SANTS has proven
a useful tool for the engagement of the Federal government in Chamber
programs with Indigenous people. The most promising program to date,
which has attracted support from the State and Federal governments
as well as SACOME, is an Indigenous group seeking to realise its vision
with income derived from the resources industry to free itself of welfare
dependence. The MoU is seen as a way that future Statewide ILUA
negotiations may improve the value governments bring to the package
of benefits negotiated for Indigenous people.
that it is up to Aboriginal Australians to take up opportunities for
themselves and their children when offered by resources companies
and other businesses. Mr Pearson and Mr Stephen Creese, MD Rio Tinto
Australia both gave a speech to the SACOME Gala dinner, on the need to
create the opportunities for Indigenous Australians. Mr Creese described
Rio Tinto’s program for recruiting Indigenous employees across Australia
and encouraged other resource companies to learn from their experiences
so the successes can be replicated.
Several companies have been very pro-active in offering boarding
school places to Aboriginal children from the areas in which the companies
are working. At the end of 2008, three children earned entry to university
while several others are continuing in both school and trade qualifications.
SACOME recommends that companies use the skills and resources of those
organisations with established track records in providing links between
the child, the family and the myriad of programs available to support
children into the boarding school system and the tertiary education
sectors. SACOME is also working with the national Aboriginal summer
school in Engineering and with ASSETS 09, for Aboriginal students in
mathematics and science.
The global downturn in the economy impacted severely on employment
opportunities across the board, yet it has provided space for companies
wanting to contribute to a skilled workforce for when growth re-ignites,
by fostering education opportunities.
The highlight of SACOME’s effort in raising awareness of Indigenous
participation was hosting Mr Noel Pearson, Director Cape York Partnerships
in Adelaide on 6 May. During his visit he addressed an audience at
Annesley College, which is one of the schools in Adelaide to host young
women from Indigenous communities. Mr Pearson emphasised his view
SACOME is an organisation with longstanding credibility in lobbying and
representing the interests of its members, and with this reputation it can
and does partner with government and non-government organisations on
a range of policy areas, including the development of suitable education,
health and housing programs for Indigenous South Australians. There is
still a long way to go, but SACOME members can be encouraged that
it is not nearly as difficult to obtain information that supports company
initiatives as it was even two years ago - with SACOME a good
place to start the process.

Images courtesy of Iluka

Indigenous Land Use Agreements
SACOME Director Indigenous Relations, Stephanie Walker has worked
closely with a number of groups to establish Indigenous land use
agreements (ILUA) and a great deal of progress was made in 2008-09.
The frustrations over the previous 12 months in attempting to improve
access to land through the ILUA process has generally eased. The decision
of the Federal Attorney-General to allow funding for SACOME’s legal
advisers to consult with clients on the early exploration provisions of the
template, has stimulated new activity. This culminated in an agreement in
principle for a minerals exploration ILUA with the Adnyamathanyha people
at the end of the financial year. Discussions are also progressing well with
the people of the Far West Coast.
The State Government’s proposed Minerals Conjunctive ILUA, which arose
in relation to the Yandruwanha/Yawarrawarrka minerals exploration ILUA,
is the subject of discussion with SACOME. A conjunctive ILUA would mean
a resource company can have pre-negotiated a agreement that would
apply to both exploration and mining. If accepted, the conjunctive ILUA
holds the potential to be applied across the State and possibly beyond.
Two petroleum conjunctive ILUAs have been in abeyance, pending an
offer to the Dieri from the State, and are likely to finalised later in 2009.
The Wangkangurru/Yarluyandi have indicated that they would be inclined
to sign the ILUA when the Dieri have done so.
The negotiations with the Dieri have opened new opportunities for
enhancing ILUAs in the future. Partnerships with governments to
‘package’ additional benefits that will improve outcomes for Indigenous
South Australians will make this process more attractive for all of the
parties. SACOME has made it clear to Aboriginal people with whom it
negotiates, and to governments, that the role of industry is not to provide
education, health and housing for Aboriginal people, but is happy to
partner and to work with those who do hold responsibilities in these areas.
Aboriginal Heritage Act Review
Late in 2008, the State advised that it would be reviewing the Aboriginal
Heritage Act. This is an area that members have flagged for many years
as requiring change to make the treatment of heritage more transparent
and viable. SACOME is consulting extensively prior to making a submission.
SACOME believes that as far as possible, it should work with the two
Aboriginal Heritage groups and the peak bodies represented at the SA
Native Title Resolution (SANTR) process to prepare a joint submission.
If the resources industry and Indigenous agencies present aligned views,
it is more likely to communicate a strong message to the Government
than several separate presentations.

Image courtesy of Electranet

As Australia develops policy to address climate change, SACOME is
contributing expertise that may assist resource companies to reduce
their environmental footprint and secure water and energy supplies.
Developing Energy Policy
To take a lead in developing a strategic energy policy, the South
Australian Chamber of Mines and Energy appointed Dr Nigel Long as
Director Environment and Sustainability in September 2008 and formed
the SACOME Energy Policy Working Group (EPWG). These initiatives are
in line with the South Australian resource industry strategic plan drafted
by SACOME, which describes a goal of the industry to create a credible
and balanced energy policy for delivering reliable and secure energy in
SA in an economically efficient manner, and to contribute to the Federal
Government’s greenhouse emissions reduction target of 60% of 1990
levels by 2050.
Marine parks
In 2008 the SA Government proposed new boundaries for 19 Marine
Parks established under the Marine Park Act 2007. Consultation will
continue over the next two years in developing the park management plans
and designation of zones. SA resource companies have an excellent track
record in behaving in an environmentally responsible manner. SACOME
will be representing the industry’s need to explore and develop proven
resources, whilst being sensitive to the marine and land environments.
Submissions
SACOME made submissions on behalf of the resources industry
to the following legislative reviews and/or government policy areas:
Environment Protection and Biodiversity Conservation Act 1997
SACOME identified that effective climate change policy should be built
on a strategic energy policy framework, taking into account Australia’s
long term energy needs. SACOME is well positioned to take a lead
in energy policy due to its broad membership base, including energy
producers and suppliers. The EPWG has representatives from major
energy resource companies in South Australia in coal, gas and uranium
through to renewable and emerging technologies (geothermal, solar,
wind, wave/tidal, and coal-to-liquids). The EPWG also includes electricity
generation companies, and transmission and distribution (electricity and
gas) companies, as well as some of the state’s major energy users.
Environment Protection (water quality) policy 2003 under the
Environment Protection Act 1993
Review of Energy Market Frameworks in light of
Climate Change Policies (Australian Energy Market Commission)
SACOME contributed to the development of submissions to legislation on
the Carbon Pollution Reduction Scheme and the Biennial Assessment of the
National Water Initiative.
The group is collaborating with government and energy regulators
in developing and contributing to energy programs, planning and
strategic policy.

Membership of the South Australian Chamber of Mines and energy is
open to those with interests in the South Australian resources industry.
Our main categories are core industry (which includes mining, energy,
extraction and exploration) and service providers. At the end of 2008-09,
SACOME had 302 financial members. Of our 78 core industry members,
59 were explorers. Of these, 13 of these had production outside South
Australia. Core industry members contribute slightly more than half of
SACOME’s subscription revenue, however, service industry members are
becoming increasingly important to SACOME as the number taking up
membership increases. Reflecting this change in membership composition,
the constitution was changed to provide for an additional service industry
position on the SACOME Council. Also, all full members were given the
right to vote, which means that for the first time service provider
members can vote.
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 < $5m
Associate (Individual)
Service Provider Members
Level 1A - Staff in SA over 200
Level 1B - Staff in SA = 101-200
Level 1C - Staff in SA = 51-100
Level 1D - Staff in SA = 21-50
Level 1E - Staff in SA = 11-20
Level 2A - Staff in SA = 4-10
Level 2B - Staff in SA = 1-3
Level 2C - Education & Tertiary
Level 2D - Education Primary
& Secondary
Level 2E - Government Federal,
State, Local

The South Australian Chamber of
Mines and Energy is comprised of
the following members:
Resources Industry
Adelaide Brighton Ltd
Adelaide Energy Ltd
Adelaide Resources
AFMECO Mining and Exploration
Ahava Energy Pty Ltd
Alliance Resources Ltd
Altona Energy/
Arckaringa Energy Pty Ltd
Archer Exploration Ltd
Argonaut Resources NL
Australasia Gold Ltd
Australian Zircon
Babcock & Brown Power
Beach Petroleum
BHP Billiton
BHP Billiton’s Uranium Australia
Centrex Metals
Copper Range Ltd
Diatreme Resources Ltd
Dominion Mining
Epic Energy
Eromanga Uranium Ltd
Exco Resources
FerrAus Ltd
Flinders Mines
Geodynamics
Havilah Resources NL
Heathgate Resources
Hillgrove Resources
HWE Mining Pty Ltd
Iluka Resources
IMX Resources Ltd
Innamincka Petroleum Ltd
Intermet Resources
Iron Road Ltd
Ironclad Mining Ltd
Linc Energy Ltd
Lincoln Minerals Ltd
Marathon Resources Ltd
Marmota Energy
Maximus Resources Ltd
Mega Hindmarsh
Minotaur Exploration
Mithril Resources
Monax Mining
Nyrstar Port Pirie Smelter
OneSteel
Oz Minerals Ltd
PepinNini Minerals Ltd
Petratherm Ltd
Phoenix Copper Ltd
Quasar Resources
Rex Minerals Ltd
Rio Tinto
RMG Services Pty Ltd
Santos Ltd
Sinosteel PepinNini Curnamona
Management Pty Ltd
Somnium Innovations
Southern Gold Ltd
Southern Quarries &
Direct Mix Group
Southern Uranium Ltd
Stellar Resources
Straits Resources Ltd
Strategic Energy Resources Ltd
Stuart Petroleum
Sundance Energy Australia Ltd
Syngas Ltd
Tasman Resources NL
Teck Cominco Australia Pty Ltd
Terramin Australia Ltd
Toro Energy Ltd
Trafford Resources Ltd
Uranium Equities Ltd
Uranium Exploration Australia Ltd
Uranium One Australia
Uranium SA Ltd
Western Desert Resources
Western Plains Resources
Service providers
Abigroup Contractors Pty Ltd
Adciv Pty Ltd
Adelaide Belt & Hose
Distributors Pty Ltd
Adelaide City Council
Adelaide Control
Engineering
AECOM Australia Pty Ltd
Aggreko
AGL SA Pty Ltd
Aker Solutions
Alexander & Symonds
All Skills International
Recruitment Solutions
AMC Consultants
Amdel Ltd
Apollo Global
Applied Structural
Geological Analysis
Are You
Artcraft
Ashvale Pty Ltd
(t/as Instrument
Installation Services)
Asiaworld Shipping Services

Atlas Copco Construction
and Mining Australia
Aurecon Australia Pty Ltd
Ausenco Services
Austin Williams
Australian Camp Services
Australian Civil & Mining Training
Australian Technical College -
Adelaide South
Australian Training Alliance
Australin Conveyor
Company Pty Ltd
BL Shipway & Co
Barossa Helicopters Pty Ltd
Bateman Engineering
Bemex Corporation Pty Ltd
Bianco Building Supplies
Big Sky Credit Union
BMD e*3 Pty Ltd
Boart Longyear Pty Ltd
Bostech Drilling Pty Ltd
BP Australia Pty Ltd
Built Environs
Cavill Power Products
CDE Capital Pty Ltd
Central Diesel Pty Ltd
Chubb Fire Safety
Cliftons
Coffey Natural Systems
Commonwealth Bank of Australia
Community Engagement
Group Australia Pty Ltd
Como Engineers Pty Ltd
Complete Fire Services
Complete Personnel
Contract Resources
Corporate Conversation
Coventry Fasteners
CQ Partners Pty Ltd
Cryogenic Blasting Solutions
DJ Coughlan Drilling
Data at a Touch
DMAW Lawyers
DSC SMEC
E & A Ltd
Ecowise Building
Solutions Pty Ltd
EDN
Electranet
Environmental and
Biodiversity Services Pty Ltd
ETSA Utilities
Experience Matters
Finlaysons
Flinders Ports
Fuelgear
Fujitsu Australia Ltd
Futureye Pty Ltd
Fyfe Pty Ltd
Genessee and
Wyoming Australia
Geoscience Associates
GHD Pty Ltd
Global Tough Alloys
Government Relations
Australia Advisory Pty Ltd
Grundfos Pumps Pty Ltd
Gryphon Partners Pty Ltd
Hardcore IT
Hawker Britton Group
Hays Resources and Mining
Health Safety Environment
Australia Pty Ltd
Hudson
Hughes Public Relations &
Communication Counsel
Hunt & Hunt
Hunt Energy & Minerals co Pty Ltd
Hybrid Energy Australia Pty Ltd
IA Group Pty Ltd
Image Brand & Colour
Immersive Technologies/
Immersive Operator Training
Ingenero
Ingenium Technologies
Injury Management Programs
& Consulting Pty Ltd
Insight International
Consultancy Pty Ltd
ISS International Pty Ltd
James Gall & Associates
Jardine Lloyd Thompson
JKC Kinsmen Properties
John Holland Pty Ltd
John Nitschke Drilling
Joie Creative
Kellogg Brown & Root
Kelly & Co
Kimberley Global Pty Ltd
KJM Contractors
Komatsu Australia Pty Ltd
KPMG
Lane Print and Post
Lawson Risk Management
Services Pty Ltd
Lean Experience
Leighton Contractors Pty Ltd
Liebherr Australia Pty Ltd
Logistica
Lucas Earthmovers Pty Ltd
Ludowici Australia
Macmahon Holdings
Maintenance Systems
Solutions Pty Ltd
Maloney Field Services
Manufacturing and Distribution
Software Pty Ltd (MDS)

Marlow Communications Pty Ltd
McDonald Steed McGrath Lawyers
Mercury Firesafety
Migration Solutions
Minalysis Pty Ltd
Mine Hire Australia Pty Ltd
Minerals & Metals Marketing
Mining & Construction
Safety Specialists
Mining One
Mining People International
Minter Ellison Lawyers
Monadelphous Engineering
Associates Pty Ltd
Morton Philips
Mycon Engineering Pty Ltd
National Australia Bank
National Jet Regional Services
NetCraft Australia Pty Ltd
Normet Asia Pacific Pty Ltd
OAMPS Insurance Brokers
ODT Australis Pty Ltd
O’Loughlins Lawyers
Pall Australia
Parsons Brinckerhoff
Patrick Portlink (SA) Pty Ltd
Paydirt Media Pty Ltd
Piper Alderman
Pirtek (Adelaide) Pty Ltd
Plastic Systems Plus Pty Ltd
Pneumark Automation Pty Ltd
Port Adelaide Football Club
Port of Melbourne
Powranna Consulting Pty Ltd
PWC Services
(PricewaterhouseCoopers)
Qantas
QHSE Integrated Solutions Pty Ltd
Rau International Pty Ltd
RCR Engineering
Red Earth Training Solutions
Remediate Pty Ltd
Rexco People Pty Ltd
Rossair Charter
Rural Solutions SA
SAFEmap International Pty Ltd
Scene Change Adelaide Pty Ltd
Scotford & Fennessy
Sharp Airlines
Shell Australia
Sierra One Global
Simply Containers
(SCF Containers)
Sinclair Knight Merz
SKF Economos Australia Pty Ltd
SKILLED
SkillsDMC
SMC Pneumatics
(Australia) Pty Ltd
Source 4 Pty Ltd
South East Australia Gas Pty Ltd
Sparke Helmore Lawyers
St James Finance Pty Ltd
Stramech Engineering
TAD Technical Careers & Contracts
Tailored Promo Products Pty Ltd
The Direct Mail Centre
of Australia Pty Ltd
The Environmental Burden
The University of Adelaide Faculty
of Engineering Computer and
Mathematical Sciences
Thebarton Senior College
Thiess Pty Ltd
Tonkin Consulting
Torque Industries
Tyco Flow Control Pacific
Ultra Electronics Australia
United Group Resources
University of South Australia
URB Trading & Consulting
Vectra Corporation Ltd
Vipac Engineers and Scientists Ltd
VSL Australia Pty Ltd
Watsons Lawyers
Westpac Banking Corporation
Whitham Media Australia
William Buck
Wilson People Management
WorkPac
Central Pty Ltd
WorleyParsons
Xceptional
Recruitment Pty Ltd
Yakka Pty Ltd
Associates
Bradshaw, Peter
Briggs, John
Cooling, Marcus
Coppin, Teena
Curtis, Lindsay
Fargher, John
Farrington, Vic
Getz, Arnold
Heithersay, Paul
Hill, Darren
Jackson, Norton
Johnson, Jerry
Kennedy, Sean
Pederson, Egon
Penfold, Mike
Steed, Ivan
Thomas, Dave
Tonkin, David
Zwiersen, Tim

Jason Kuchel (SACOME) & Minister Holloway (Minister
for Mineral Resource Development) at a SACOME lunch
Andrew Querzoli (Sonosteel PepinNini) & Julia Dnistrianski
(Finlaysons) at a SACOME lunch
Dean Dalla Valle (BHP Billiton) speaking at a SACOME lunch
SACOME and delegates at SACOME conference booth
Guests listen to John Lynch (RFDS) & David Williams
(Heathgate) at a SACOME lunch
Suzanne Kuhn, John Michell (DFAT) & Rock Van Delft
(Qantas) at the SACOME Gala Dinner
Noel Pearson (Cape York Partnerships) & Stephen Creese
(Rio Tinto Australia) at the SACOME Gala Dinner
Charlie Paterson & Carol Day (RFDS) with John Roberts
(SACOME) at the St Barbara’s Day celebration
Andrew Bet & Grant Augostin (Blackwoods) at the launch
of the SACOME magazine

Bringing Businesses Together
SACOME Gala Dinner
The SACOME event program is designed to keep members informed
on current resource industry projects and the issues affecting them.
The corporate lunches provide opportunities for resource companies
to raise awareness of their projects, to engage with the wider business
community and to network.
In order to keep up with the growing popularity of our corporate
lunch program, in February 2009 we changed our venue to the
Adelaide Convention Centre which caters for larger attendance.
In the 2008-09 financial year, attendance of the SACOME lunches
grew by over ten percent attracting an average of 200 guests each
month from an increasingly diverse range of businesses.
Westpac Bank, Chief Economist Bill Evans, Stuart Petroleum’s Tino
Guglielmo and Adelaide Resources, Chris Drown were among the
presenters. BHP Billiton’s newly appointed President of the Uranium
Customer Sector Group, Dean Dalla Valle was a program highlight
with record attendance of over 335 guests.
Despite the economic downturn nearly 400 guests attended SACOME’s
annual industry gala dinner. This was the official dinner of Paydirt’s South
Australian Resources and Energy Investment Conference, held 6 May.
Influential Indigenous activist Mr Noel Pearson and Managing Director,
Rio Tinto Australia, Mr Stephen Creese spoke to guests about the need
to engage with Indigenous people and develop the potential of regional
communities in preparation for the upturn in the resources industry.
An auction of a painting by Elaine Woods (emerging artist from the
APY lands) and other goods raised over $3800, the proceeds of which
went to Cadetships Australia to support young Indigenous students in
undergraduate degrees.
St Barbara’s Day
An exclusive, member-only St Barbara’s event was held at the Pilatus
Australia Hanger at the Adelaide Airport in December 2008. The occasion
launched SACOME’s new partnership with the Royal Flying Doctor Service,
and with GM Holden Ltd.
35

36

Your Council members submit the financial report of the South
Australian Chamber of Mines and Energy Inc for the financial
year ended 30 June 2009.
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 Derek Carter, Mr Patrick Clifford, Mr Dean Dalla Valle,
Ms Ros DeGaris, Mr Tino Guglielmo, Mr Michael Reed, Mr Roger Kennett,
Mr George McKenzie, Mr Mark Milazzo, Mr John Roberts, Mr Hans Umlauff,
Mr Terry Kallis and Mr Jim White.
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.
After Balance Date Events
No matter or circumstance has arisen since 30 June 2009 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 indirectly provided on behalf of the Chamber on
normal commercial terms.
Operating Results
The surplus for the year amounted to $91,009 (2008: $275,150).
Signed at Adelaide this 19th day of October 2009, in accordance with
a resolution of Council Members.
____________________
Council Member
______________________
Council Member
37

In the opinion of the Council members of The South Australian Chamber
of Mines an Energy Inc, the summarised financial report comprising the
Income Statement, Balance Sheet, Statement of Recognised Income and
Expenditure, Cash Flow Statement and the attached notes:
a) present a true and fair view of the financial position of the Chamber
as at 30 June 2009 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 19th day of October 2009 in accordance with a resolution
of the Council Members.
____________________ ______________________
Council Member
Council Member
b) are consistent with the full financial report of the Chamber for the
year ended 30 June 2009; 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.
38

2009 $ 2008 $
Revenue 1,802,634 1,585,352
Employee benefits expense (795,858) (545,408)
Depreciation and amortisation expense (55,771) (27,541)
Finance Costs (5,454) (3,754)
Other expenses (854,542) (733,499)
Surplus from operations $91,009 $275,150
Retained Earnings $
Balance at 1 July 2007 82,217
Surplus attributable to the Chamber 275,150
Balance at 30 June 2008 $357,367
Surplus attributable to the Chamber 91,009
Balance at 30 June 2009 $448,376
The accompanying notes form part of these summarised financial statements
39

2009 $ 2008 $
Assets
Current Assets
Cash and cash equivalents 1,328,687 441,413
Trade and other receivables 49,992 57,392
Other current assets 1,884 1,514
Total Current Assets 1,380,563 500,319
Non Current Assets
Property, plant & equipment 156,242 176,363
Total Non Current Assets 156,242 176,363
Total Assets 1,536,805 676,682
Liabilities
Current Liabilities
Trade and other payables 1,040,607 293,984
Short-term provisions 40,608 12,469
Total Current Liabilities 1,081,215 306,453
Non Current Liabilities
Long-term provisions 7,214 12,862
Total Non Current Liabilities 7,214 12,862
Total Liabilities 1,088,429 319,315
Net Assets 448,376 357,367
Equity
Retained earnings 448,376 357,367
Total Equity $448,376 $357,367
40
The accompanying notes form part of these summarised financial statements

2009 $ 2008 $
Inflows / (Outflows) Inflows / (Outflows)
Cash flows from Operating Activities
Receipts from Members and Customers 2,645,674 1,697,155
Payments to Suppliers and Employees (1,599,030) (1,493,906)
Interest Received 32,897 40,387
Net GST Refunded by/(Paid to) ATO (151,163) (55,658)
Financial Expenses and Borrowing Costs (5,454) (3,754)
Net cash flows provided by Operating Activities 922,924 184,224
Cash flows from Investing Activities
Proceeds from Sale of Plant and Equipment and Motor Vehicles - -
Payments for Plant and Equipment and Motor Vehicles (35,650) (157,324)
Net cash flows (used in) Investing Activities (35,650) (157,324)
Cash flows from Financing Activities
Repayments of Borrowings - -
Net Cash Flows (used in) Financing Activities - -
Net increase in cash held 887,274 26,900
Cash at the beginning of the year 441,413 414,513
Cash at the end of the year $1,328,687 $441,413
The accompanying notes form part of these summarised financial statements
41

Income Statement
Balance Sheet
The Chamber’s revenues from ordinary activities increased in 2009
by 13.7% to $1,802,634 (2008: $1,585,352), which included Chamber
function fees of $181,145 (2008: $152,098) Uranium education project
management of $50,000 (2008: $50,000), Sponsorship of functions of
$102,464 (2008:$ 82,500), Subscription revenue of $1,087,179 (2008:
$927,932), Sub leasing income of $51,856 (2008: $1,945), Grant funding
reimbursements $95,028 (2008 $125,478) and interest revenue of
$32,897 (2008: $40,387).
Total expenditure increased in 2009 by 30.64% to $1,711,625
(2008: $1,310,202), which included function and project expenses
of $265,591 (2008: $191,475), rent expenses of $180,604 (2008:
$77,244), marketing expenses of $44,032 (2008: $40,392) travel
expenses of $34,568 (2008: $26,198), employee benefits of $795,858
(2008: $545,408), recruitment expenses of $20,100 (2008: $30,640)
and depreciation expenses of $55,771 (2008: $27,541).
The operating surplus from ordinary activities decreased in 2009 by
$184,141 or 66.92% to $91,009; from a surplus in 2008 of $275,150.
The Chamber’s net assets increased by 25.47% in 2009 to $448,376
(2008: increased by 334.66% to $357,367). This increase of $91,009
reflects the Chamber’s operating surplus for 2009.
Total assets in 2009 increased by $860,123 or 127.11% to $1,536,805
(2008: increased by $165,078 or 32.27% to $676,682). Cash holdings
increased during the period by $887,274, trade and other receivables
decreased by $7,400 and property, plant and equipment decreased
by $20,121.
Total liabilities in 2009 increased by $769,114 or 240.86% to $1,088,429
(2008: decreased by $110,072 or 25.63% to $319,315). Grants received
in advance increased by $780,852, sponsorship in advance increased by
$11,700, subscriptions in advance decreased by $38,243, trade payables
increased by $98,249, other creditors and accruals increased by $18,749,
HSE conference liabilities decreased by $124,684 and employee benefits
increased by $22,491.
Prior to 30 June 2009 the Chamber received and deposited a grant of
$750,000 from the Graduate Assistant Program. This program is to be
delivered by the Chamber in 2010 & 2011. The amount of $750,000
has been recognised as a current liability (Grants in Advance) in the
Balance Sheet as at 30 June 2009.
42

Cash Flow Statement
Note 1: Basis Of Preparation Of Summarised Financial Report
Net cash in flows provided by operating activities in 2009 were
$922,924 (2008: $184,224), which represents an increase of
$738,700 in cash provided by operating activities.
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.
During 2009 receipts from members and customers increased by
$948,519 and payments to suppliers and employees increased
by $105,124.
The net cash flows used in investing activities were $(35,650).
This was represented by payments for plant, equipment and motor
vehicles of $35,650 which was a decrease of $121,674 from the
prior year.
The net cash flows used in financing activities were $Nil (2008: $ Nil).
The Chamber’s cash increased by $887,274 during the year to
$1,328,687 (2008 increase of $26,900).
Prior to 30 June 2009 the Chamber received and deposited a grant
for a program to be delivered in future reporting periods of $750,000.
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 a financial report 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 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.
43

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 4: Capital and Leasing Commitments
a) Finance Lease Commitments
The Association had no finance lease commitments owing as at
30 June 2009.
b) Operating Lease Commitments
Non-cancellable operating leases contracted for but not capitalised in
the Financial Statements:
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
2009 Total Compensation
Short Term Benefit $ Post Employment Benefit $ Total $
$562,148 $43,673 $605,821
2008 Total Compensation
Short Term Benefit $ Post Employment Benefit $ Total $
$379,128 $37,119 $416,247
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Minimum Operating Lease
2009 $ 2008 $
Payments Payable:
not later than 1 year 233,987 112,670
later than 1 year but not later than 5 years 935,948 450,680
later than 5 years 233,987 112,670
Total $1,403,922 $676,020
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.
(c) Capital Commitments
The Chamber has commitments for capital expenditure, which at reporting
date have not been recognised as liabilities, of $Nil (2008 $Nil).

Note 5: Contingent Liabilities
Note 8: Association Details
The entity has a business card facility for $20,000 (2008 $20,000)
with the Westpac Bank. An amount of $710 (2008 Nil) was utilised from
this facility as at 30 June 2009, leaving $19,290 (2008 $20,000) credit
available for utilisation by the entity.
There were no other contingent liabilities as at 30 June 2009 (2008 Nil).
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.
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 2009 (2008 Nil).
Note 7: Events After the Balance Sheet Date
a) The financial report was authorised for issue on 19 October 2009.
b) There have been no significant events which have occurred subsequent
to 30 June 2009.
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 2008/09 were $20,565 (2007/08: $16,254)
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Mines and Energy House
290 Glen Osmond Road,
Fullarton, South Australia 5063
Phone +61 8 8202 9999
Fax +61 8 8202 9900
Email sacome@sacome.org.au
www.sacome.org.au
Zinc processing at Terramin’s Angas mine
Image courtesy of Robert Habel