SACOME Annual Report 2007-08
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
CONTENTS<br />
President’s <strong>Report</strong><br />
Chief Executive<br />
Behind the Scenes<br />
Infrastructure<br />
Industry Development<br />
Financials<br />
<strong>Report</strong> of the Council Members<br />
Statement by Council Members<br />
Income Statement<br />
Statement of Changes in Equity<br />
Balance Sheet<br />
Cash Flow Statement<br />
Discussion and Analysis<br />
Notes to the Financial Statements<br />
Independent Auditor’s <strong>Report</strong><br />
Skills and Education<br />
Indigenous Relations<br />
Industry Promotion<br />
United Industry<br />
Members<br />
Sponsorship<br />
4<br />
5<br />
6<br />
8<br />
9<br />
ii<br />
iii<br />
iv<br />
iv<br />
v<br />
vi<br />
vii<br />
viii<br />
xi<br />
11<br />
12<br />
13<br />
15<br />
16<br />
18
President’s <strong>Report</strong><br />
The outstanding momentum<br />
that the South Australian mineral<br />
resources industry achieved last<br />
financial year continued into <strong>2007</strong> - <strong>08</strong>.<br />
Mineral exploration in the state totalled<br />
$355.2 million for the year under<br />
review representing 14.4 per cent of<br />
the national spend - a huge increase<br />
over our 5.3 per cent share in 2003/04<br />
and well above our per capita share<br />
with only 7 per cent of the nation<br />
people living in South Australia.<br />
As I have said before, this outstanding<br />
achievement is the direct result of<br />
the South Australian Government’s<br />
plan for accelerating exploration<br />
(PACE) launched in 2004. Importantly,<br />
exploration has been successful and<br />
has resulted in significant new mineral<br />
resource discoveries and justification<br />
for mine expansions. Thirty new<br />
mine developments and major mine<br />
expansions are in the pipeline. The<br />
<strong>SACOME</strong> infrastructure study combined<br />
with updated figures obtained by<br />
<strong>SACOME</strong> indicate that these projects<br />
represent a further $25 billion in private<br />
infrastructure investment in South<br />
Australia in the years to come.<br />
If mineral exploration expenditure<br />
levels remain high, we can reasonably<br />
expect many more economic mineral<br />
discoveries by 2020.<br />
I believe that for the first time, South<br />
Australia is on the cusp of realising<br />
our rich mineral endowment. The<br />
resources sector is expected to become<br />
the most important industry to the State<br />
of South Australia underpinning years<br />
of expansion, bringing many years of<br />
prosperity and opportunity for regional<br />
communities, indigenous people<br />
and all South Australians.<br />
This success has to date translated<br />
into export earnings for South Australia<br />
from the mineral resources sector<br />
(including petroleum) that is now<br />
outstripping all other sectors. Minerals<br />
exports accounted for 26 per cent of the<br />
States exports with Petroleum a further<br />
3 per cent. Combined, our industry<br />
contributed exports of over $2.6bn and<br />
overtook the exports of the wine industry<br />
for the first time and even outstripped<br />
agriculture and food to be the number<br />
one exporting industry for the first time.<br />
Exports, of course, are not the<br />
whole picture with South Australia<br />
using much of its own coal and gas<br />
resources for energy use, as well as<br />
steel in the construction sector, and lead<br />
and zinc products in other applications.<br />
In addition, our industry also supplies<br />
its products to other states, overall<br />
increasing the importance of South<br />
Australia to the whole nation.<br />
All this activity has also seen many<br />
service providers to the industry<br />
increase their presence in SA and for<br />
the first time, many companies have<br />
opened an office in SA rather than<br />
simply servicing the needs of mining<br />
from elsewhere. These companies are<br />
also vital to the success of mining and<br />
<strong>SACOME</strong> has worked with the State<br />
Government to assist these companies<br />
expand their capacities and also to<br />
attract new service providers,<br />
particularly where there are gaps.<br />
One of the ways we have done this is<br />
to participate with the Government in<br />
overseas missions to Chile and Canada<br />
throughout the year.<br />
The Chamber tackled many issues<br />
during the year a number of which<br />
were handled and assessed by our<br />
specialist committees. I must thank<br />
those committees and their chairs for<br />
their outstanding work, without which<br />
we would be much less effective.<br />
Finally, I must express my very sincere<br />
appreciation to our small staff for their<br />
outstanding efforts during another<br />
hectic year under the very capable<br />
leadership of Jason Kuchel.<br />
John Roberts<br />
President<br />
<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
Chief Executive’s <strong>Report</strong><br />
The past financial year has been<br />
extremely positive for both the industry<br />
and the South Australian Chamber<br />
of Mines and Energy. Our financial<br />
position is the strongest in the history<br />
of the organisation. Every single<br />
financial indicator has improved and<br />
our retained earnings have increased<br />
from $82,217 to $371,526. This is a<br />
reassuring position and in particular, it<br />
means that we have the resources to<br />
run a significant campaign or to fund<br />
a substantial piece of work if required<br />
by industry. All in all, a strong financial<br />
position means better representation<br />
of our industry to Government and the<br />
community at large.<br />
By the end of the financial year,<br />
we have reached a milestone of<br />
almost 300 members, an increase<br />
of just over 100 members since the<br />
end of the previous financial year.<br />
<strong>SACOME</strong> represents virtually every<br />
exploration, mining, petroleum and<br />
geothermal company with interests<br />
in South Australia, making us a truly<br />
representative body. This means that,<br />
more than any other industry body, we<br />
can go hand on heart to Government<br />
and say that we fully represent the<br />
interests of the resources industry.<br />
The industry has also reached<br />
milestones with exploration expenditure<br />
reaching an annualised figure of over<br />
$300 million compared with historical<br />
averages around the $30 million mark.<br />
The number of mines in production,<br />
under construction or approved has<br />
reached double digits compared with<br />
only four a few short years ago. These<br />
numbers, combined with 30 projects in<br />
the pipeline, ensure that we are still on<br />
our way to reaching 23 mines by 2015<br />
and 40 mines by 2020.<br />
With the resources industry expanding<br />
rapidly, the <strong>SACOME</strong> Council identified<br />
the need to be strategic about the<br />
issues for industry and the way in<br />
which we assist and represent industry.<br />
Accordingly, the <strong>SACOME</strong> Council, with<br />
member input, has spent the year<br />
drafting a Resources Industry Strategic<br />
Plan. Key performance indicators were<br />
being finalised in June with a view to<br />
consultation with members during<br />
20<strong>08</strong>-09. As part of this Strategic<br />
plan and in recognition of the export<br />
performance potential of the industry,<br />
the <strong>SACOME</strong> Council adopted a vision<br />
for the Resources Industry that;<br />
“The minerals and energy industries<br />
will contribute 50 per cent of South<br />
Australian exports by 2015”.<br />
We began 20<strong>08</strong> in new premises at<br />
Fullarton. The move has reinvigorated<br />
the team, provides a convenient meeting<br />
place for our members, affords us<br />
greater opportunities to host seminars<br />
for our members and presents a<br />
more professional face to Government<br />
and our own industry. We welcomed<br />
three new staff members this year;<br />
Jonathon Forbes, Anne Walker and<br />
Aleisha Sullivan. In May, the <strong>SACOME</strong><br />
Council approved a new organisational<br />
structure for 20<strong>08</strong>-09, which will see<br />
new staff employed in the areas of<br />
skills and education, environment and<br />
sustainability and member services.<br />
Our staff have been very focussed on<br />
improving every aspect of member<br />
representation and benefits. We have<br />
an excited, pro-active team working<br />
together to ensure we maximise the<br />
bang for your member dollar. I invite<br />
you to talk more with any of our staff<br />
so that we can understand how to<br />
better serve you.<br />
Lastly I would like to take this<br />
opportunity to thank the <strong>SACOME</strong><br />
staff for their tireless efforts this year.<br />
I know I speak for our whole team when<br />
I say that we look forward to many more<br />
achievements and a much higher profile<br />
for next year as we step up to a whole<br />
new level of activity, particularly in the<br />
areas of member services, industry<br />
profile, community engagement,<br />
environment and sustainability,<br />
and skills and education.<br />
I encourage you to take the time to read<br />
this annual report to get a snapshot of<br />
our activities over the <strong>2007</strong>-<strong>08</strong> year. We<br />
have achieved a lot this year and much<br />
of our efforts will be built upon in the<br />
years to come, so we are excited about<br />
the future and the ever increasing role<br />
we will play in South Australia reaching<br />
it mining potential.<br />
Jason Kuchel<br />
Chief Executive<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
Behind the scenes<br />
Working for members<br />
Jason Kuchel, Chief Executive<br />
Bev Janssan, Director Member Services<br />
Jonathon Forbes, Director Industry Development<br />
Anne Walker, Director Industry Marketing<br />
Stephanie Walker, Director Indigenous Relations<br />
Aleisha Sullivan, Administrative Officer<br />
Debbie Boyd, Membership Officer<br />
Margaret Donaldson, PA & Finance Officer<br />
Nikki Borchardt, Administrative Officer<br />
The South Australian Chamber<br />
of Mines and Energy Council<br />
MR JOHN<br />
ROBERTS<br />
MR GRAHAM<br />
ASCOUGH<br />
New appointments<br />
Two key positions were created by<br />
<strong>SACOME</strong> in <strong>2007</strong> to strengthen the<br />
organisation’s ability to represent<br />
its members’ interests:<br />
Mr Jonathon Forbes was appointed<br />
Director Industry Development<br />
with a mandate to provide programs<br />
and projects to assist industry in its<br />
development, taking a pro-active<br />
approach. Johnathon works with<br />
government and other stakeholders<br />
to ensure the resources industry<br />
is well placed to take advantage<br />
of opportunities and overcome the<br />
constraints of a growing sector.<br />
Ms Anne Walker was appointed Director<br />
of Industry Marketing in recognition<br />
of the need to better promote the<br />
resources industry to the South<br />
Australian Community, particularly<br />
in light of the community backlash<br />
beginning in Western Australia,<br />
a state heavily reliant on mining.<br />
Anne communicates with a range of<br />
stakeholders to enhance understanding<br />
of the industry and the role of <strong>SACOME</strong>.<br />
Exploration Committee<br />
The Exploration Committee comprises<br />
of mainly industry members and is<br />
ably chaired by Kevin Wills from Flinders<br />
Mines. The committee has discussed<br />
issues as diverse as land access,<br />
flow-through share schemes, heritage<br />
clearances, research and development<br />
and the Mining Act Amendments, to<br />
name just a few. The committee has<br />
been instrumental in policy setting<br />
and providing direction on behalf<br />
of the members.<br />
Occupational health<br />
& safety Committee<br />
The OH&S Committee was<br />
reconvened to identify and address<br />
issues and share information. Issues<br />
that have been dealt with include<br />
OH&S training facilities for South<br />
Australia, Protection from Incrimination,<br />
Review of the Occupational Health,<br />
Safety and Welfare Regulations 1995,<br />
Alcohol Management and Generic<br />
Safety Inductions.<br />
The committee, chaired by Andy<br />
Simmons from BHP Billiton has also<br />
kept close ties with the Mining and<br />
Quarrying Occupational Health & Safety<br />
Committee (MAQOSHC) with a <strong>SACOME</strong><br />
OH&S Committee member, Kevin<br />
Husler, representing members’<br />
interests on MAQOSHC.<br />
MR DEREK<br />
CARTER<br />
MR TINO<br />
GUGLIELMO<br />
MR GEORGE<br />
MCKENZIE<br />
MR HANS<br />
UMLAUFF<br />
MR DEAN<br />
DALLA VALLE<br />
MR ROGER<br />
KENNETT<br />
MR MARK<br />
MILAZZO<br />
MR JIM<br />
WHITE<br />
<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
New premises<br />
The growth of the resources sector and a corresponding<br />
growth within the South Australian Chamber of Mines<br />
and Energy meant the organisation outgrew its previous<br />
site. <strong>SACOME</strong> began 20<strong>08</strong> in new, larger premises on Glen<br />
Osmond Road Fullarton. Mines and Energy House is a larger,<br />
contemporary style office that symbolises a new stage for<br />
<strong>SACOME</strong> and its increasing role in serving the resources<br />
industry. The refurbished office accommodates the growing<br />
<strong>SACOME</strong> team and allows <strong>SACOME</strong> to host an increasing<br />
number and variety of events for its members. The finishing<br />
touch to the offices is an art exhibition of industrial landscapes<br />
by South Australian artist, Robert Habel. The Minister for<br />
Mineral Resources Development, the Honourable Paul<br />
Holloway officially opened Mines and Energy House at a<br />
special event for members, government representatives<br />
and industry leaders.<br />
Initially, known as the Chamber of Mines, the organisation<br />
was based within the offices of the Chamber of Commerce.<br />
The small office comprised a team of just two staff. There<br />
has been a steady growth since that time, with the Chamber<br />
of Mines adding Energy to its portfolio - and then during the<br />
following years, including service providers to the mining<br />
and energy sectors.<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
Infrastructure<br />
The <strong>SACOME</strong> Infrastructure Study was launched on 28 March by Minister for Energy,<br />
Pat Conlon. Commissioned by <strong>SACOME</strong>, the study was conducted by Ron Ely (Connell<br />
Wagner), Professor Dick Blandy (Uni of SA) and Scott Mackay (SCM Advisory Service).<br />
Key findings<br />
Recommendations include<br />
Among the key findings of the<br />
infrastructure study are;<br />
• Competition from other sectors<br />
for inputs, especially skilled people.<br />
• Critical importance of BHP Billiton’s<br />
needs to the SA economy and<br />
future mining development<br />
• Scale, timing and composition<br />
of whole-of-sector future needs<br />
is uncertain.<br />
• Effective coordination must<br />
occur at all levels of government<br />
and between resource and<br />
infrastructure companies<br />
• South Australia urgently requires<br />
a strategic master plan for mining<br />
supply chains and infrastructure<br />
• ‘First in, best dressed’<br />
infrastructure locks out smaller,<br />
start-up mining opportunities<br />
• Critical nation building, base<br />
infrastructure needs to be scoped<br />
and developed<br />
• Mining infrastructure and skills<br />
gaps could ‘choke off’ many South<br />
Australian mining opportunities<br />
• South Australia could<br />
potentially miss the opportunity<br />
to ‘step change’ the South<br />
Australian economy.<br />
• Facilitate improved coordination<br />
and processes<br />
• Facilitate development of<br />
shared infrastructure<br />
• Provide investor certainty and<br />
facilitate assistance<br />
• Implement migration, off-shoring<br />
and investor strategies<br />
• Greater government and industry<br />
participation to focus and improve<br />
investor certaintyv<br />
• Clear pathways, leverage off<br />
meeting BHP Billiton’s requirements<br />
• Set effective infrastructure<br />
finance framework<br />
The State government formed the<br />
Resources and Energy Sectors<br />
Infrastructure Council (RESIC) late in<br />
<strong>2007</strong> in response to the preliminary<br />
findings and recommendations of the<br />
study. <strong>SACOME</strong> has two representatives<br />
on RESIC (The Chief Executive and<br />
President) and expects to have an<br />
influence on the timely provision of<br />
critical infrastructure for the resources<br />
and energy sector of South Australia.<br />
Image couresy of Fyfe<br />
<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
industry development<br />
Assisting mining and<br />
energy companies to be safe,<br />
enduring and prosperous<br />
Code of Conduct for<br />
Landholders and Mineral &<br />
Energy Explorers in South<br />
Australia: A framework for<br />
access to rural land<br />
On the recommendation of the<br />
<strong>SACOME</strong> Exploration Committee in<br />
October <strong>2007</strong>, <strong>SACOME</strong> and the SA<br />
Farmers Federation (SAFF) developed<br />
a framework for access to rural land.<br />
The code of conduct is designed<br />
to foster good relations between<br />
landholders and mineral explorers<br />
regarding access to rural land for<br />
mineral exploration. This is based on<br />
the understanding and sensitivity of<br />
explorers that they are “guests” on<br />
land, whether private or leasehold, and<br />
appreciation by farmers of the needs<br />
and rights of mineral explorers.<br />
The code of conduct was completed by<br />
<strong>SACOME</strong> and endorsed by SAFF in June<br />
20<strong>08</strong>. The code of conduct:<br />
• recognises the rights and concerns of<br />
both explorers and private landholders<br />
• presents a clear outline for dialogue<br />
and negotiation of access and (if<br />
necessary) compensation for<br />
temporary disturbance.<br />
<strong>SACOME</strong> acknowledges the SA<br />
Farmers Federation and the staff<br />
of Primary Industry and Resources SA<br />
Minerals and Energy Resources<br />
division for their contribution to this<br />
valuable resource.<br />
Flow through Share Scheme<br />
The new labor Federal Government’s<br />
policy is to promote investment in<br />
resource exploration through the<br />
introduction of a flow through share<br />
scheme as outlined in their ‘Election 07’<br />
Policy Document. At the February 20<strong>08</strong><br />
meeting of the <strong>SACOME</strong> Exploration<br />
Committee meeting, it was decided<br />
to pursue the goal of introducing<br />
a flow through share scheme into<br />
Australia and that the Director, Industry<br />
Development, Jonathon Forbes should<br />
work with Alice McLeary, (<strong>SACOME</strong><br />
Exploration Committee member)<br />
who has experience in this area.<br />
Ms McCleary developed a model for<br />
discussion based on the premise that<br />
past models have been attempts to<br />
bolt the Canadian concession onto<br />
the Australian tax system and was<br />
unnecessarily complex.<br />
The model proposed has been developed<br />
based on existing Australian taxation<br />
concepts and is designed as a simple<br />
mechanism that will minimise:<br />
• administrative costs for companies,<br />
regulators and investors<br />
• distortions between shareholders<br />
• tax compliance costs, and<br />
• distortions for investment decisions<br />
by companies.<br />
The model has been distributed to the<br />
Minerals Exploration Advisory Group<br />
(MEAG), a <strong>SACOME</strong> led working group,<br />
the Minerals Council of Australia,<br />
Association of Mining and Exploration<br />
Companies (WA) and the Department<br />
of Resources, Energy & Tourism (DRET)<br />
(the lead Federal Government agency<br />
on this matter). <strong>SACOME</strong> will be actively<br />
pursuing the goal of having the Federal<br />
Government introduce a flow through<br />
share scheme in 2009.<br />
Land Access<br />
Mining and Defence seek<br />
co-existence on WPA<br />
The Woomera Prohibited Area (WPA)<br />
occupies some 13 per cent of the total<br />
area of SA within the mineral-rich<br />
northern Gawler Craton and includes<br />
significant projects such as the<br />
Challenger Gold Mine and Prominent<br />
Hill Copper-Gold Mine. It is highly<br />
prospective, with emerging mineral<br />
projects such as iron ore prospects at<br />
Peculiar Knob, Hawkes Nest and Cairn<br />
Hill and the entire WPA is effectively<br />
covered in mineral, petroleum and<br />
geothermal tenements and applications.<br />
In <strong>2007</strong>, <strong>SACOME</strong> was successful<br />
in negotiating with the Director,<br />
Woomera Test Facility, the reduction<br />
in Public Liability provisions in the<br />
Deed of Access (Exploration) from $50m<br />
to $20m. This represents a saving of<br />
approximately $3,000 to $4,000 annually<br />
for any company entering into a Deed of<br />
Access to the WPA. The provision is to<br />
be reviewed on an annual basis.<br />
There have been ongoing issues relating<br />
to access to the Woomera Prohibited<br />
Area (WPA) by mineral explorers which<br />
has been exacerbated in recent times as<br />
the two major industries of mining and<br />
defence ramp up activities in the WPA.<br />
<strong>SACOME</strong> has, and continues, to<br />
facilitate processes to ensure that<br />
the stated aim by both mining and<br />
defence of co-existence is one that is<br />
fair and reasonable to the resource<br />
and energy sectors. The <strong>SACOME</strong><br />
Exploration Committee has been active<br />
in this process, inviting Dr Doug Gerrie,<br />
Director, Woomera Test Facility to<br />
address the Committee at its February<br />
20<strong>08</strong> meeting.<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
industry development<br />
As a result of this meeting, the<br />
<strong>SACOME</strong> Exploration Committee<br />
formed a working party to work<br />
through the issues of access to<br />
WPA, which met for the first time in<br />
May 20<strong>08</strong>. The participants included<br />
representatives from the Department<br />
of Defence (Woomera Test Facility),<br />
Primary Industries and Resources SA<br />
(Minerals Energy & Resources), Defence<br />
SA, Department of Premier & Cabinet<br />
and <strong>SACOME</strong>. The meeting had positive<br />
outcomes and a way forward was<br />
outlined. <strong>SACOME</strong> is hopeful that the<br />
Working Group will continue to meet<br />
regularly and work through the<br />
ongoing issues.<br />
Environment and sustainability<br />
Significant Environmental<br />
Benefits (SEBs)<br />
As the majority of mining, petroleum,<br />
geothermal and exploration activities<br />
involve some degree of clearance of<br />
native vegetation, operators need to<br />
familiarise themselves with how best to<br />
meet the legislative requirement within<br />
a management plan, so that the Native<br />
Vegetation Council has confidence<br />
the plan will result in a significant<br />
environmental benefit (SEB) and<br />
grant clearance.<br />
In May 20<strong>08</strong>, <strong>SACOME</strong> organised a<br />
workshop on SEB’s to hear how the<br />
Native Vegetation Council works, how<br />
best to maximise value in their SEB<br />
obligations and examine options on<br />
how to meet SEB requirements,<br />
from both Government and industry<br />
perspectives. Close to forty participants<br />
attended the workshop held at Primary<br />
Industries and Resources SA to hear<br />
guest speakers from the Nature<br />
Foundation, PIRSA, Native Vegetation<br />
Council and OneSteel.<br />
10 <strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT<br />
Minerals Exploration<br />
Advisory Group (MEAG).<br />
In <strong>2007</strong>, the Ministerial Council on<br />
Minerals and Petroleum Resources<br />
(MCMPR) agreed to establish a group<br />
to advise Ministers on key strategic<br />
issues relating to a sustainable<br />
minerals exploration industry.<br />
The Minerals Exploration Advisory Group<br />
(MEAG) was formed in mid <strong>2007</strong> with the<br />
following Terms of Reference:<br />
“The MEAG will advise the MCMPR on<br />
strategic issues impacting on mineral<br />
exploration and discovery of mineral<br />
deposits in Australia, including:<br />
• The drivers of successful outcomes<br />
in exploration and discovery;<br />
• Contemporary global trends and<br />
their likely impact on exploration<br />
and discovery in Australia; and<br />
• Potential approaches and actions<br />
by government to attract and<br />
stimulate exploration and discovery,<br />
considering all aspects of the<br />
exploration chainfrom land access<br />
to exploration technology.”<br />
MEAG consists of 11 people with each<br />
given an area of study. Each State<br />
(plus NT) is represented by at least<br />
one group member, while there are<br />
also representatives from Geoscience<br />
Australia and CSIRO. Peak bodies (like<br />
<strong>SACOME</strong>) are not included, although<br />
almost all the Group members belong<br />
to one or other of these, for example,<br />
the chairman of MEAG is Derek Carter,<br />
a Council member of <strong>SACOME</strong>.<br />
The various Group members are<br />
expected to consult with individual<br />
Industry members in addition to the<br />
peak bodies. As a result, <strong>SACOME</strong><br />
was invited to make a submission<br />
for inclusion in the South Australian<br />
submission to go to the MEAG<br />
meeting in July 20<strong>08</strong>.<br />
Submissions<br />
<strong>SACOME</strong> has made submissions on<br />
behalf of the resources industry to the<br />
following legislative reviews and/or<br />
government policy areas:<br />
• Mining Act 1971 Amendments<br />
• Migration Amendment<br />
(Sponsorship Obligations) Bill <strong>2007</strong><br />
• Prospectivity of the Cultana Training<br />
Area Expansion<br />
• Nature Conservation Legislative<br />
Review Project Reference Group<br />
• Statutes Amendment<br />
(Bulk Goods) Bill 20<strong>08</strong><br />
• The Review of SA OHS&W Regulations<br />
Images couresy of Bryan Charlton
REPORT OF THE COUNCIL MEMBERS<br />
Your Council members submit the financial report of the South Australian<br />
Chamber of Mines and Energy Inc for the financial year ended 30 June 20<strong>08</strong>.<br />
Council Members<br />
The names of the council members throughout the financial year<br />
and at the date of the report are:<br />
Mr Graham Ascough<br />
Mr Derek Carter<br />
Mr Dean Dalla Valle<br />
Mr Tino Guglielmo<br />
Mr Roger Kennett<br />
Mr George McKenzie<br />
Mr Mark Milazzo<br />
Mr John Roberts<br />
Mr Hans Umlauff<br />
Mr Jim White<br />
Principal Activities<br />
The principal activities of the Chamber during the year were to represent the<br />
minerals and energy industry in South Australia and to promote the interests<br />
of the industry within the state.<br />
Significant Changes<br />
There were no significant changes in the state of affairs of the Chamber<br />
which occurred during the financial year.<br />
Operating Results<br />
The surplus for the year amounted to $275,150 (<strong>2007</strong>: $27,756).<br />
After Balance Date Events<br />
No matter or circumstance has arisen since 30 June 20<strong>08</strong> that has<br />
significantly affected or may significantly affect:<br />
(i)<br />
(ii)<br />
(iii)<br />
the operations of the Chamber;<br />
the results of the operations; and<br />
the state of affairs of the Chamber.<br />
ii<br />
<strong>SACOME</strong> FINANCIALS
REPORT OF THE COUNCIL MEMBERS Continued<br />
COUNCIL MEMBERS BENEFITS<br />
During the financial year:<br />
(i)<br />
(ii)<br />
(iii)<br />
no Council member of the Chamber;<br />
no firm in which a Council member is a member; and<br />
no body corporate in which a Council member has a substantial interest,<br />
has received or become entitled to receive a benefit as a result of a contract between the Council member, firm or<br />
body corporate and the Chamber and no officer has received either directly or indirectly from the Chamber any payment<br />
or other benefit of a pecuniary value, with the exception of a Council Member, who is a partner in a legal firm which<br />
receives fees indirectly provided on behalf of the Chamber on normal commercial terms.<br />
Signed at Adelaide this 28th day of October 20<strong>08</strong>, in accordance with a resolution of Council Members.<br />
.............................................. ..............................................<br />
Council Member<br />
Council Member<br />
STATEMENT BY COUNCIL MEMBERS<br />
In the opinion of the Council members of The South Australian Chamber of Mines an Energy Inc, the summarised<br />
financial report comprising the Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow<br />
Statement and the attached notes:<br />
a) present fairly the financial position of the Chamber as at 30 June 20<strong>08</strong> and its performance for the year ended on<br />
that date in accordance with Australian Accounting Standards, mandatory professional reporting requirements and<br />
other authoritative pronouncements of the Australian Accounting Standards Board; and<br />
b) are consistent with the full financial report of the Chamber for the year ended 30 June 20<strong>08</strong>; and<br />
c) at the date of this statement, there are reasonable grounds to believe that the Chamber will be able to pay its<br />
debts as and when they fall due.<br />
Signed this 28th day of October 20<strong>08</strong> in accordance with a resolution of the Council Members.<br />
.............................................. ..............................................<br />
Council Member<br />
Council Member<br />
<strong>SACOME</strong> FINANCIALS<br />
iii
SUMMARISED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 20<strong>08</strong><br />
20<strong>08</strong> $ <strong>2007</strong> $<br />
Revenue 1,585,352 1,114,707<br />
Employee benefits expense (545,4<strong>08</strong>) (553,612)<br />
Depreciation and amortisation expense (27,541) (16,122)<br />
Finance Costs (3,754) (4,035)<br />
Other expenses (733,499) (513,182)<br />
Surplus from operations $275,150 $27,756<br />
SUMMARISED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 20<strong>08</strong><br />
Retained Earnings $<br />
Balance at 1 July 2006 54,461<br />
Surplus attributable to the Chamber 27,756<br />
Balance at 30 June <strong>2007</strong> $82,217<br />
Surplus attributable to the Chamber $275,150<br />
Balance at 30 June 20<strong>08</strong> $357,367<br />
The accompanying notes form part of these summarised financial statements.<br />
iv<br />
<strong>SACOME</strong> FINANCIALS
SUMMARISED BALANCE SHEET AS AT 30 JUNE 20<strong>08</strong><br />
ASSETS 20<strong>08</strong> $ <strong>2007</strong> $<br />
CURRENT ASSETS<br />
Cash and cash equivalents 441,413 414,513<br />
Trade and other receivables 57,392 48,781<br />
Other current assets 1,514 1,730<br />
TOTAL CURRENT ASSETS 500,319 465,024<br />
NON CURRENT ASSETS<br />
Property, plant & equipment 176,363 46,580<br />
TOTAL NON CURRENT ASSETS 176,363 46,580<br />
TOTAL ASSETS 676,682 511,604<br />
LIABILITIES<br />
CURRENT LIABILITIES<br />
Trade and other payables 293,984 420,746<br />
Short-term provisions 12,469 8,641<br />
TOTAL CURRENT LIABILITIES 306,453 429,387<br />
NON CURRENT LIABILITIES<br />
Long-term provisions 12,862 -<br />
TOTAL NON CURRENT LIABILITIES 12,862 -<br />
TOTAL LIABILITIES 319,315 429,387<br />
NET ASSETS 357,367 $82,217<br />
EQUITY<br />
Retained earnings 357,367 82,217<br />
TOTAL EQUITY $357,367 $82,217<br />
The accompanying notes form part of these summarised financial statements<br />
<strong>SACOME</strong> FINANCIALS<br />
v
SUMMARISED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 20<strong>08</strong><br />
20<strong>08</strong> $ <strong>2007</strong> $<br />
Inflows<br />
Inflows<br />
(Outflows)<br />
(Outflows)<br />
Cash flows from Operating Activities<br />
Receipts from Members and Customers 1,697,155 1,383,483<br />
Payments to Suppliers and Employees (1,493,906) (1,048,718)<br />
Interest Received 40,387 21,212<br />
Net GST Refunded by/(Paid to) ATO (55,658) (57,626)<br />
Financial Expenses and Borrowing Costs (3,754) (4,035)<br />
Net cash flows provided by Operating Activities 184,224 294,316<br />
Cash flows from Investing Activities<br />
Proceeds from Sale of Plant and Equipment and Motor Vehicles - 15,932<br />
Payments for Plant and Equipment and Motor Vehicles (157,324) (9,236)<br />
Net cash flows Provided by (used in) Investing Activities (157,324) 6,696<br />
Cash flows from Financing Activities<br />
Repayments of Borrowings - (26,194)<br />
Net Cash Flows (used in) Financing Activities - (26,194)<br />
Net increase in cash held 26,900 274,818<br />
Cash at the beginning of the year 414,513 139,695<br />
Cash at the end of the year $441,413 $414,513<br />
The accompanying notes form part of these summarised financial statements<br />
vi<br />
<strong>SACOME</strong> FINANCIALS
DISCUSSION AND ANALYSIS FOR THE YEAR ENDED 30 JUNE 20<strong>08</strong><br />
INCOME STATEMENT<br />
The Chamber’s revenues from ordinary activities increased in 20<strong>08</strong> by 42.22% to $1,585,352 (<strong>2007</strong>: $1,114,707),<br />
which included Chamber function fees of $152,098 (<strong>2007</strong>: $121,522) Uranium project management of $50,000<br />
(<strong>2007</strong>: $50,000), Sponsorship of functions of $82,500 (<strong>2007</strong>:$100,518), Subscription revenue of $927,932 (<strong>2007</strong>: $623,713),<br />
Unearthing project and DEST Grant $161,121 (<strong>2007</strong> Nil), Grant funding reimbursements $125,478 (<strong>2007</strong> $140,020)<br />
and interest revenue of $40,387 (<strong>2007</strong>: $21,212).<br />
Total expenditure increased in 20<strong>08</strong> by 20.54% to $1,310,202 (<strong>2007</strong>: $1,<strong>08</strong>6,951), which included function and project<br />
expenses of $191,475 (<strong>2007</strong>: $216,530), rent expenses of $77,244 (<strong>2007</strong>: $48,814), marketing expenses of $40,392<br />
(<strong>2007</strong>: $41,398) travel expenses of $26,198 (<strong>2007</strong>: $28,314), employee benefits of $545,4<strong>08</strong> (<strong>2007</strong>: $553,612), DEST<br />
project expenses of $181,248 (<strong>2007</strong> Nil), recruitment expenses of $30,640 (<strong>2007</strong> $24,397) and depreciation expenses<br />
of $27,541 (<strong>2007</strong>: $16,122).<br />
The operating surplus from ordinary activities increased in 20<strong>08</strong> by $247,394 to $275,150;<br />
from a surplus in <strong>2007</strong> of $27,756.<br />
BALANCE SHEET<br />
The Chamber’s net assets increased by 334.66% in 20<strong>08</strong> to $357,367 (<strong>2007</strong>: increased by 50.96% to $82,217).<br />
This increase of $275,150 reflects the Chamber’s operating surplus for 20<strong>08</strong>.<br />
Total assets in 20<strong>08</strong> increased by $165,078 or 32.27% to $676,682 (<strong>2007</strong>: increased by $152,421 or 42.43% to $511,604).<br />
Cash holdings increased during the period by $26,900, trade and other receivables increased by $8,611 and property,<br />
plant and equipment increased by $129,783.<br />
Total liabilities in 20<strong>08</strong> decreased by $110,072 or 25.63% to $319,315 (<strong>2007</strong>: increased by $124,665 or 40.91% to<br />
$429,387). Grants received in advance decreased by $85,726, sponsorship in advance decreased by $38,500,<br />
income received in advance decreased by $16,056, subscriptions in advance decreased by $16,520, trade payables<br />
decreased by $56,794, other creditors and accruals decreased by $37,850, HSE conference liabilities increased by<br />
$124,684 and employee benefits increased by $16,690.<br />
CASH FLOW STATEMENT<br />
Net cash in flows provided by operating activities in 20<strong>08</strong> were $184,224 (<strong>2007</strong>: $294,316),<br />
which represents a decrease of $110,092 in cash provided by operating activities.<br />
During 20<strong>08</strong> receipts from members and customers increased by $313,672 and payments to suppliers and employees<br />
increased by $445,188.<br />
The net cash flows used in investing activities were $(157,324). This was represented by payments for plant, equipment<br />
and motor vehicles of $157,324 which was an increase of $148,<strong>08</strong>8 from the prior year, and proceeds from the sale of<br />
plant, equipment and motor vehicles of $Nil, which was a decrease of $15,932 from the prior year.<br />
The net cash flows used in financing activities were $Nil (<strong>2007</strong>: $26,294).<br />
These outflows represent the repayment of interest bearing liabilities in <strong>2007</strong>.<br />
The Chamber’s cash increased by $26,900 during the year to $441,413 (<strong>2007</strong> increase of $274,818).<br />
<strong>SACOME</strong> FINANCIALS<br />
vii
NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 20<strong>08</strong><br />
1 BASIS OF PREPARATION OF SUMMARISED FINANCIAL REPORT<br />
The summarised financial report has been prepared in accordance with Australian Accounting Standards, Australian<br />
Accounting Interpretations, other authoritative pronouncements of the Australia Accounting Standards Board and the<br />
requirements of the Associations Incorporation Act 1985.<br />
The financial report covers The South Australian Chamber of Mines and Energy Inc (Chamber) as an individual entity.<br />
The Chamber is an Association incorporated in South Australia under the Associations Incorporation Act 1985.<br />
The summarised financial statements and specific disclosures have been derived from the Chamber’s full financial<br />
report for the financial year. The summarised financial report does not, and cannot be expected to, provide as full an<br />
understanding of the financial performance, financial position and financing and investing activities of the Chamber<br />
and should be read in conjunction with the full financial report which includes all disclosures required by the relevant<br />
financial reporting framework.<br />
The Financial report of the Chamber as an individual entity complies with all Australian equivalents to International<br />
Financial <strong>Report</strong>ing Standards (AIFRS) in their entirety.<br />
The summarised financial report has been prepared on an accruals basis and is based on historical costs modified by<br />
the revaluation of selected non current assets and financial assets and financial liabilities for which the fair value basis<br />
of accounting has been applied.<br />
The accounting policies have been consistently applied, unless otherwise stated.<br />
2 SEGMENT REPORTING<br />
The Chamber operates within the minerals and energy industry to promote and protect the interests of the industry<br />
in South Australia.<br />
3 KEY MANAGEMENT PERSONNEL COMPENSATION<br />
Short Term Benefit $ Post Employment Benefit $ Total $<br />
20<strong>08</strong> Total Compensation 379,128 37,119 416,247<br />
<strong>2007</strong> Total Compensation 243,106 26,651 269,757<br />
viii<br />
<strong>SACOME</strong> FINANCIALS
NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 20<strong>08</strong> Continued<br />
4 CAPITAL AND LEASING COMMITMENTS<br />
(a) Finance Lease Commitments<br />
The Association had no finance lease commitments owing as at 30 June 20<strong>08</strong>.<br />
(b) Operating Lease Commitments<br />
Non-cancellable operating leases contracted for but not capitalised in the Financial Statements:<br />
Minimum Operating Lease Payments Payable:<br />
20<strong>08</strong> $ <strong>2007</strong> $<br />
not later than 1 year 112,670 8,223<br />
later than 1 year but not later than 5 years 450,680 26,229<br />
later than 5 years 112,670 -<br />
During <strong>2007</strong>, the Chamber relocated its premises to 1/290 Glen Osmond Road, Fullarton. The property lease is a<br />
non-cancellable lease with a three year term. Contingent rental provisions within the lease agreement require that the<br />
minimum lease payments shall be increased by CPI review plus 1% per annum. Under the agreement, an option exists<br />
to renew the lease at the end of the three year term, for an additional term of three years.<br />
(c) Capital Commitments<br />
The Chamber has commitments for capital expenditure, which at reporting date have not been recognised as liabilities,<br />
of $Nil (<strong>2007</strong> $Nil).<br />
5 CONTINGENT LIABILITIES<br />
The Chamber had no contingent liabilities as at 30 June 20<strong>08</strong> (<strong>2007</strong> Nil).<br />
6 FUNDING AND SOLVENCY<br />
The ability of the Council to provide services at the current level of operations is dependent upon the Association<br />
maintaining and increasing the existing membership subscription levels, sponsorship funding, grant funding and<br />
other additional sources of funding.<br />
7 EVENTS AFTER THE BALANCE SHEET DATE<br />
(a) The financial report was authorised for issue on 28th October 20<strong>08</strong>.<br />
(b) There have been no significant events which have occurred subsequent to 30 June 20<strong>08</strong>.<br />
<strong>SACOME</strong> FINANCIALS<br />
ix
NOTES TO THE SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 20<strong>08</strong> Continued<br />
8 ASSOCIATION DETAILS<br />
The registered office of the Chamber is:<br />
The South Australian Chamber of Mines and Energy Inc.<br />
Mines and Energy House, 290 Glen Osmond Road, FULLARTON SA 5063<br />
The principal place of business is:<br />
The South Australian Chamber of Mines and Energy Inc<br />
Mines and Energy House, 290 Glen Osmond Road, FULLARTON SA 5063<br />
9 REMUNERATION OF COUNCIL MEMBERS<br />
No amounts were received or are due and receivable by the Council members of The South Australian Chamber<br />
of Mines and Energy Incorporated during the year ended 30 June 20<strong>08</strong> (<strong>2007</strong> Nil).<br />
Other - Fees Paid<br />
Mr George McKenzie is a partner of a legal firm. The legal firm employs a number of practitioners who provided legal<br />
services to the Chamber. Fees paid to the legal firm for <strong>2007</strong>/<strong>08</strong> were $16,254 (2006/07: $55,011).<br />
x<br />
<strong>SACOME</strong> FINANCIALS
xii<br />
<strong>SACOME</strong> FINANCIALS
Skills and Education<br />
With the mining and energy sectors<br />
facing continuing pressure from the<br />
current skills shortage, the South<br />
Australian Chamber of Mines and<br />
Energy partnered with stakeholders<br />
to promote careers in the industry,<br />
and focused on educating young<br />
South Australians on the importance<br />
of studying maths and science in order<br />
to broaden their future career options.<br />
Schools program<br />
<strong>SACOME</strong> continued its Education<br />
and Careers Program until the<br />
departure of the geologist Andy Becis<br />
early 20<strong>08</strong>. The program, funded by BHP<br />
Billiton, aimed to increase participation<br />
in maths and science subjects by<br />
providing students with interesting<br />
minerals related information. Twenty<br />
six secondary and primary schools<br />
across the State participated in the<br />
program during terms three and four<br />
of <strong>2007</strong>. Showing parents and teachers<br />
the types of roles available was also an<br />
important part of the program, ensuring<br />
that interested students have access to<br />
additional information to assist them<br />
with career choices.<br />
These pathways recognised and built<br />
on the skill demands in careers such<br />
as engineering, trades, laboratory<br />
operations and geosciences.<br />
Students from the Port Augusta<br />
Secondary School studying Certificate<br />
I in Manufacturing Industry (Pathways)<br />
secured full-time apprenticeships by the<br />
end of <strong>2007</strong>. Eighteen students from the<br />
Mid North Schools Education Cluster<br />
commenced their studies in July <strong>2007</strong><br />
in a modified Port Augusta program.<br />
Six of the 18 students were successful in<br />
securing either apprenticeships or entry<br />
into pre-vocational programs at the end<br />
of their six months’ study.<br />
The success of this pilot prompted a<br />
number of organisations to approach<br />
the project management team<br />
expressing interest in becoming<br />
involved. These included the Australian<br />
Drilling Industry Association and ETSA<br />
Utilities. ETSA Utilities funded the<br />
development and customisation of a<br />
complementary model, which has the<br />
potential to result in school-based<br />
apprenticeships in the near future –<br />
in addition to preparing students for<br />
full-time apprenticeship selection.<br />
Due to the success of this pilot program<br />
and unprecedented demand from<br />
teaching staff, parents and students, the<br />
pathways are likely to continue in 20<strong>08</strong>.<br />
Career pathways<br />
The program Unearthing Australia’s<br />
Potential Skilled Workforce for the<br />
Resources Industry (UAPSWRI)<br />
ended late <strong>2007</strong>. The project was a<br />
joint initiative between The Department<br />
of Education and Children’s Services<br />
(DECS) Futures Connect strategy,<br />
TAFESA, the Australian Government<br />
Department of Education, Science and<br />
Technology (DEST), <strong>SACOME</strong> and its<br />
member companies. Its aim was to<br />
pilot pathways from education and<br />
entry-level training programs to careers<br />
in the mining and resources industries.<br />
The resources developed for career pathways have been recorded on CD<br />
and distributed to all government high schools in South Australia.<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT<br />
11
Indigenous Relations<br />
fostering partnerships<br />
between the resources<br />
industry, government and<br />
Aboriginal communities<br />
Stephanie Walker, Director Indigenous<br />
Relations has worked with stakeholders<br />
on programs and agreements on<br />
behalf of all parties. The need for<br />
successful partnerships between<br />
industry, Aboriginal communities and<br />
governments is seen as critical to<br />
successful outcomes for Aboriginal<br />
South Australians. The establishment<br />
and growth of strong partnerships will<br />
be a focus in the coming year.<br />
Indigenous land use agreements<br />
Progress with both the minerals<br />
exploration and the petroleum<br />
conjunctive Indigenous Land Use<br />
Agreements (ILUA) negotiations<br />
has been frustrated on two counts.<br />
Without a doubt the major impediment<br />
to forming agreements has been<br />
the inadequate funding from both<br />
the State and Federal governments,<br />
which triggered extensive lobbying of<br />
Ministers at all levels of government,<br />
including the new Attorney General,<br />
the Hon Robert McLelland. The lack of<br />
funding has impacted particularly on the<br />
representation of the native title parties<br />
at the table, and also on <strong>SACOME</strong>’s<br />
ability to discuss matters not directly<br />
related to the ILUAs, but associated<br />
with them. A significant change has<br />
been noticed with the change of<br />
government in Canberra – and funding<br />
not previously available is expected to<br />
flow in the new financial year.<br />
Secondly, the minerals exploration<br />
ILUAs have stalled around matters to<br />
do with the early exploration provisions<br />
in the template document. However, it is<br />
anticipated that these can be progressed<br />
in the new financial year. <strong>SACOME</strong><br />
has withdrawn from the outstanding<br />
petroleum conjunctive ILUAs pending<br />
resolution of certain matters between<br />
the State and the claimant groups.<br />
It is hoped that all of the ILUAs will be<br />
progressed in the new financial year.<br />
With effect from 30 June, 20<strong>08</strong>, the<br />
Aboriginal Legal Rights Movement<br />
(ALRM) ceases to exist. <strong>SACOME</strong> will<br />
therefore be working with its new entity,<br />
SA Native Title Services (SANTS) to<br />
progress native title matters.<br />
Indigenous education,<br />
training and employment<br />
<strong>SACOME</strong> activities in this area are<br />
strongly supported through the<br />
assistance of the Commonwealth<br />
Department of Education, Employment<br />
and Workplace Relations (DEEWR). A<br />
review of actions identified during the<br />
forum of May 2006 indicate that without<br />
high level coordination and cooperation,<br />
progress in Indigenous engagement in<br />
the industry is variable. The key factors<br />
impacting on progress include;<br />
• the capacity of the Aboriginal<br />
participants<br />
• the entrenched habits of all<br />
organisations working in isolation<br />
• the need for industry employers to<br />
know all of the (at least) 26 agencies<br />
and departments which might be able<br />
to provide assistance<br />
• awareness in the resources industry<br />
that it cannot deliver by itself the<br />
range of social and other potential<br />
requirements to attain a fully fledged<br />
employee with career prospects.<br />
The reality is that no single entity or<br />
organisation working in isolation can<br />
achieve lasting outcomes with and for<br />
Aboriginal South Australians.<br />
Most of the activity in <strong>2007</strong>-<strong>08</strong> has<br />
focussed on building a pilot partnership<br />
between industry, governments and<br />
one particular Aboriginal community,<br />
the Dieri people of the Cooper Basin.<br />
This group was chosen because they<br />
presented with a vision (to attain<br />
economic independence) and a<br />
management strategy to achieve its<br />
aspirations. While a lot of progress has<br />
been made to assist the members with<br />
support networks within the State and<br />
Federal government (particularly in<br />
relation to the establishment of their<br />
own bank, their own training facilities,<br />
acquisition of apprenticeships, the<br />
establishment of a leadership team<br />
to push their program and industry’s<br />
provision of scholarships at two<br />
secondary boarding colleges) the efforts<br />
highlight, again, the need for strategic,<br />
cross-sector partnership training.<br />
Consideration is being given to doing<br />
this in the next financial year.<br />
12 <strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
Industry promotion<br />
In the news<br />
The level of interest in the industry<br />
has triggered an increase in the level<br />
of media attention during <strong>2007</strong>-<strong>08</strong>.<br />
<strong>SACOME</strong> has been quoted in the<br />
news on average 21 times per month.<br />
<strong>SACOME</strong> has also submitted articles<br />
for publication in a range of media.<br />
Media releases<br />
Uranium Open Day<br />
Demystifying uranium was the theme of the <strong>SACOME</strong> uranium open day held on 20 June<br />
20<strong>08</strong>. This event was free and open to the public to allow people to learn about the issues<br />
related to uranium; its mining, processing, radiation and controls.<br />
A series of seminars covered uranium • Australia’s non-proliferation<br />
mining, processing and disposal in<br />
regime by Rob Rawson,<br />
Australia, uranium’s role as a part of<br />
Director of Safety and Health,<br />
climate change mitigation, advances<br />
Minerals Council of Australia<br />
in nuclear technology and international • Why Australia has so much uranium<br />
safeguards designed to ensuring its use by Dr Ian Lambert, Onshore Energy and<br />
for peaceful purposes.<br />
Minerals Division, Geoscience Australia<br />
The seminars were presented by<br />
Close to 200 people attended the<br />
some of the world’s leading uranium event to listen to the seminars, speak<br />
producers, researchers and scientists to experts who were on hand to answer<br />
who were in Adelaide for the<br />
questions, watch a science show by<br />
Australasian Institute of Mining<br />
science communicator, Deane Hutton<br />
and Metallurgy (The AusIMM)<br />
and view displays including the SA<br />
International Uranium Conference:<br />
Museum cloud chamber and a<br />
• Uranium Exploration, mining<br />
geoscience logging truck.<br />
and processing by Mark Chalmers,<br />
Chair Uranium Industry Framework This highly successful event was<br />
• Uranium Mine Rehabilitation<br />
organised by <strong>SACOME</strong> with practical<br />
by Peter Waggitt<br />
support from The AusIMM, <strong>SACOME</strong><br />
• Health, safety, environment and<br />
members, PIRSA and others in the<br />
community by Sharon Paulka,<br />
uranium industry. The Advertiser<br />
Manager Radiation, Environment<br />
published a special uranium supplement<br />
and Safety, Uranium Equities ltd<br />
to coincide with the uranium open day.<br />
• Radiation Protection in the<br />
uranium mining industry by Rick<br />
<strong>SACOME</strong> wishes to acknowledge<br />
Tinker, Australian Radiation Protection sponsors; Uranium SA; Uranium One;<br />
and Nuclear Safety Agency (ARPANSA) BHP Billliton; Marathon Resources; Toro<br />
• Australia’s uranium and<br />
Energy; AFMECO; Uranium Equities;<br />
climate change by Michael Angwin,<br />
PIRSA; Uranium Exploration Australia.<br />
Executive Director, Australian<br />
Uranium Association<br />
<strong>SACOME</strong> applauds new<br />
infrastructure council<br />
22 November <strong>2007</strong><br />
The Resources and Energy Sectors<br />
Infrastructure Council will be the<br />
foundation for a prosperous industry.<br />
Key Personnel Boost for<br />
Mining Lobby 10 December 20<strong>08</strong><br />
Two senior personnel have been<br />
appointed to <strong>SACOME</strong> as it develops<br />
the industry’s profile in the State.<br />
Director Industry Development,<br />
Jonathon Forbes and Director<br />
Industry Marketing, Anne Walker.<br />
No Breaches Acceptable!<br />
15 February 20<strong>08</strong><br />
The mining industry does not<br />
condone poor practices. <strong>SACOME</strong><br />
states that any environmental breach<br />
by explorers are totally unacceptable.<br />
Launch of Infrastructure<br />
Study 28 March 20<strong>08</strong><br />
Infrastructure and skills growth<br />
now critical for achieving SA’s<br />
mining industry boom.<br />
SA State Budget <strong>08</strong>-09 6 June 20<strong>08</strong><br />
Increases for resources is not keeping<br />
pace with the growing sector.<br />
Uranium Open Day 13 June 20<strong>08</strong><br />
Adelaide public to be given unique<br />
access to world uranium experts on<br />
20 June 20<strong>08</strong>.<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT 13
snapshot -<br />
sacome events<br />
1 The annual gala dinner was the premier event on the <strong>SACOME</strong> calendar<br />
2 Professor Richard Blandy and Ian Gould at the <strong>SACOME</strong> Infrastructure luncheon<br />
3 Finlaysons win glory in the St Barbara’s dragon boat race<br />
4 Members and industry leaders celebrate the opening of the Mines and Energy House<br />
5 Greg Hall, Bronny Wood and Debbie Boyd at the <strong>SACOME</strong> Uranium Open Day<br />
1 2<br />
3<br />
4 5<br />
14 <strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
United Industry<br />
Bringing industry members<br />
together to develop<br />
business opportunities<br />
<strong>SACOME</strong> Events<br />
Designed to keep members informed<br />
of the resources industry’s current<br />
projects, <strong>SACOME</strong>’s corporate function<br />
program promotes the industry to the<br />
wider community and provides an ideal<br />
opportunity for members to network<br />
and meet socially.<br />
Membership<br />
During <strong>2007</strong>-<strong>08</strong>, 101 new members joined the South Australian Chamber of Mines<br />
and Energy – the greatest influx of any year. This rapid growth of the membership base<br />
has enabled <strong>SACOME</strong> to expand, increasing its staff and broadening its activities. The<br />
capacity of <strong>SACOME</strong> to represent the interests of the resources sector has never been<br />
greater. With the continuing growth of the resources industry in South Australia and<br />
more exploration companies going into production within the next few years, there is a<br />
level of excitement not seen since the Chamber’s inception in 1979.<br />
During the <strong>2007</strong>-20<strong>08</strong> year,<br />
<strong>SACOME</strong> hosted eleven luncheon<br />
and breakfast functions, which<br />
attracted an average 175 interested<br />
guests. The function program offered a<br />
collection of interesting and informative<br />
presentations on relevant and topical<br />
subjects. A highlight of the program,<br />
the Resource Sector Infrastructure<br />
Lunch held in March, had a record<br />
attendance of 255 guests.<br />
At the conclusion of the Paydirt<br />
SA Resources and Energy Investment<br />
Conference, <strong>SACOME</strong> hosted its annual<br />
gala dinner - the premier event on<br />
the Chamber’s function calendar.<br />
More than 400 guests, including<br />
<strong>SACOME</strong> members and conference<br />
delegates, were addressed by the<br />
new Governor of South Australia,<br />
His Excellency, Rear Admiral Kevin<br />
Scarce AC CSC RANR.<br />
Participating members enjoyed<br />
the perfect weather, food and<br />
activities at the annual St Barbara’s<br />
Day celebration in December <strong>2007</strong>.<br />
With dragon boat racing featuring<br />
again this year, members enjoyed a<br />
little friendly competition on the<br />
banks of the River Torrens.<br />
Membership categories<br />
Industry members<br />
Level 1A Global Revenue >$500m<br />
Level 1B Global revenue >$100 - $500m<br />
Level 1C Global revenue >$50m - $100m<br />
Level 1D Global revenue >$20 - $50m<br />
Level 1E Global Revenue >$0 - $20m<br />
Level 2 Explorer or early production<br />
with production outside of SA<br />
Level 3 Early production<br />
Level 4 Junior explorer / extractive
Membership<br />
The South Australian Chamber of Mines and Energy comprised the following members in <strong>2007</strong>-<strong>08</strong><br />
Core industry<br />
Service industry<br />
Adelaide Brighton Ltd<br />
Adelaide Energy Ltd<br />
Adelaide Resources<br />
AFMECO Mining<br />
and Exploration<br />
Altona Australia Pty Ltd<br />
Archer Exploration Ltd<br />
Australasia Gold Ltd<br />
Australian Zircon<br />
Babcock & Brown<br />
Beach Petroleum<br />
BHP Billiton<br />
BHP Billiton Olympic Dam<br />
Cameco Australia<br />
Centrex Metals<br />
Copper Range Ltd<br />
Diatreme Resources Ltd<br />
Dominion Mining<br />
Eagle Bay Resources<br />
Epic Energy<br />
Eromanga Uranium Ltd<br />
Exco Resources<br />
FerrAus Ltd<br />
Flinders Mines Ltd<br />
Geodynamics<br />
Green Rock Energy Ltd<br />
Havilah Resources NL<br />
Heathgate Resources<br />
Hillgrove Resources<br />
HWE Mining Pty Ltd<br />
Iluka Resources<br />
IMX Resources NL<br />
(Previously Goldstream<br />
Mining NL)<br />
Innamincka Petroleum Ltd<br />
Intermet Resources<br />
Ironclad Mining Ltd<br />
Lakes Oil NL<br />
Lincoln Minerals Ltd<br />
Marathon Resources Ltd<br />
Marmota Energy<br />
Maximus Resources Ltd<br />
Mega Hindmarsh Pty Ltd<br />
Minotaur Exploration<br />
Mithril Resources<br />
Monax Mining<br />
Newcrest Mining Ltd<br />
OneSteel<br />
Oxiana<br />
PepinNini Minerals Ltd<br />
Perilya<br />
Petratherm Ltd<br />
Phoenix Copper Ltd<br />
Quasar Resources<br />
Rio Tinto<br />
RMG Services Pty Ltd<br />
Santos Ltd<br />
SAPEX Ltd<br />
Scimitar Resources Ltd<br />
Sinosteel PepinNini<br />
Curnamona<br />
Management Pty Ltd<br />
Southern Gold Ltd<br />
Southern Quarries &<br />
Direct Mix Group<br />
Southern Uranium Ltd<br />
Stellar Resources<br />
Strike Oil Ltd<br />
Stuart Petroleum<br />
Sundance Energy Australia<br />
Tasman Resources NL<br />
Teck Cominco<br />
Australia Pty Ltd<br />
Terramin Australia Ltd<br />
Territory Resources<br />
Toro Energy Ltd<br />
Trafford Resources Ltd<br />
Uranium Equities Ltd<br />
Uranium Exploration<br />
Australia Ltd<br />
Uranium One Australia<br />
UraniumSA Ltd<br />
Western Desert Resources<br />
Western Plains Resources<br />
Zinifex Port Pirie Smelter<br />
900 Degrees Ltd<br />
Abigroup Contractors<br />
Pty Ltd<br />
Adciv Pty Ltd<br />
Adelaide Belt & Hose<br />
Distributors Pty Ltd<br />
Adelaide City Council<br />
Adelaide Control<br />
Engineering<br />
Aggreko<br />
Airport Travel Centre<br />
Aker Solutions<br />
Alexander & Symonds<br />
All Skills International<br />
Recruitment Solutions<br />
Alleasing<br />
AMC Consultants<br />
Amdel Ltd<br />
Applied Structural<br />
Geological Analysis<br />
Artcraft<br />
ASEA Pacific Group<br />
Ashvale Pty Ltd<br />
(t/as Instrument<br />
Installation Services)<br />
Asiaworld Shipping Services<br />
Atlas Copco Construction<br />
and Mining Australia<br />
ATS Workforce<br />
Ausenco Services<br />
Austin Williams<br />
Australian Camp Services<br />
Australian Civil &<br />
Mining Training<br />
Australian Technical<br />
College - Adelaide South<br />
Australin Conveyor<br />
Company Pty Ltd<br />
B & R Enclosures Pty Ltd<br />
BL Shipway<br />
Barossa Helicopters Pty Ltd<br />
Bateman Engineering<br />
Bemex Corporation Pty Ltd<br />
Bianco Building Supplies<br />
Big Sky Credit Union<br />
BMD e*3 Pty Ltd<br />
Boart Longyear Pty Ltd<br />
Bostech Drilling Pty Ltd<br />
BP Australia Pty Ltd<br />
Budget Car & Truck Rental<br />
Built Environs<br />
Bureau Veritas Asset<br />
Integrity Reliability<br />
Services Aust Pty Ltd<br />
Cable Controls<br />
Calibre Global Pty Ltd<br />
Cavill Power Products<br />
Central Diesel Pty Ltd<br />
Chandler McLeod<br />
Chiodi Enterprise Pty Ltd<br />
Chubb Fire Safety<br />
Citygroup Concrete Services<br />
Civil Train SA<br />
Cliftons<br />
Colliers International<br />
(SA) Pty Ltd<br />
Como Engineers Pty Ltd<br />
Complete Personnel<br />
Connell Wagner<br />
Corporate Conversation<br />
Coventry Fasteners<br />
Cryogenic Blasting Solutions<br />
Customs Agency<br />
Services Pty Ltd<br />
DJ Coughlan Drilling<br />
Dare Sutton Clarke<br />
Data at a Touch<br />
DMAW Lawyers<br />
E & A Ltd<br />
Ecco Consulting Pty Ltd<br />
EDN<br />
Electranet<br />
Environmental and<br />
Biodiversity<br />
Services Pty Ltd<br />
Equip Aust Pty Ltd<br />
ETSA Utilities<br />
Euro Exploration<br />
Extrastaff Recruitment<br />
Finlaysons<br />
Flinders Ports<br />
Fuelgear<br />
16 <strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
Fugro Airborne<br />
Surveys Pty Ltd<br />
Fyfe Pty Ltd<br />
Genessee and<br />
Wyoming Australia<br />
Geoscience Associates<br />
GHD Pty Ltd<br />
Global Tough Alloys<br />
Grundfos Pumps Pty Ltd<br />
Gryphon Partners<br />
Hays Resources and Mining<br />
Health Safety Environment<br />
Australia Pty Ltd<br />
Heavy Transport<br />
Engineering<br />
Heli Air Pty Ltd<br />
& Rossair Charter<br />
Hughes Public Relation &<br />
Communication Counsel<br />
Hunt & Hunt<br />
Hunt Energy &<br />
Minerals Co Pty Ltd<br />
Hybrid Energy<br />
Australia Pty Ltd<br />
Indigelink Pty Ltd<br />
James Gall & Associates<br />
Jardine Lloyd Thompson<br />
John Holland Pty Ltd<br />
John Nitschke Drilling<br />
Johnson Winter & Slattery<br />
Kellogg Brown & Root<br />
Kelly & Co<br />
Kimberley Global Pty Ltd<br />
Kingway Group, Kingway<br />
International<br />
Holdings Pty Ltd<br />
KJM Contractors<br />
Komatsu Australia Pty Ltd<br />
KPMG<br />
Lane Print and Post<br />
Leighton Contractors<br />
Pty Ltd<br />
Liebherr Australia Pty Ltd<br />
Logicoil Pty Ltd<br />
Logistica<br />
Lucas Earthmovers Pty Ltd<br />
Ludowici Australia<br />
Macmahon Holdings<br />
Macquarie<br />
Financial Services<br />
Macweld Industries Pty Ltd<br />
Maloney Field Services<br />
Manufacturing Excellence<br />
and Robotics (MEAR)<br />
Marlow Communications<br />
Maunsell Australia Pty Ltd<br />
McDonald Steed<br />
McGrath Lawyers<br />
Mercury Firesafety<br />
Migration Solutions<br />
Minerals & Metals<br />
Marketing<br />
Mining & Construction<br />
Safety Specialists<br />
Mining One<br />
Mining People International<br />
Minter Ellison Lawyers<br />
Monadelphous Engineering<br />
Associates Pty Ltd<br />
Morton Philips<br />
Mycon Engineering Pty Ltd<br />
National Australia Bank<br />
National Jet<br />
Regional Services<br />
OAMPS Insurance Brokers<br />
O’Loughlins Lawyers<br />
Optus Business<br />
Outback Ecology<br />
Pall Australia<br />
Parsons Brinckerhoff<br />
Paydirt Media Pty Ltd<br />
Piper Alderman<br />
Pirtek (Adelaide) Pty Ltd<br />
Plastic Systems Plus Pty Ltd<br />
Port Adelaide Football Club<br />
Port of Melbourne<br />
Procontrol Systems<br />
PWC Services<br />
(PricewaterhouseCoopers)<br />
Qantas<br />
Rau International Pty Ltd<br />
Relocation Unit<br />
Remediate Pty Ltd<br />
Resources & Environmental<br />
Management Pty Ltd<br />
Rexco People Pty Ltd<br />
Rural Solutions SA<br />
Scene Change<br />
Adelaide Pty Ltd<br />
Scotford & Fennessy SA<br />
Shell Australia<br />
Simply Containers<br />
(SCF Containers)<br />
Sinclair Knight Merz<br />
SKF Economos<br />
Australia Pty Ltd<br />
SKILLED<br />
SkillsDMC<br />
SMC Pneumatics<br />
(Australia) Pty Ltd<br />
Source 4 Pty Ltd<br />
Sparke Helmore Lawyers<br />
St James Finance Pty Ltd<br />
Stramech Engineering<br />
Sutherland People Pty Ltd<br />
TAD Technical<br />
Careers & Contracts<br />
The University of<br />
Adelaide Faculty of<br />
Engineering Computer<br />
and Mathematical Sciences<br />
Thebarton Senior College<br />
Thiess Pty Ltd<br />
Thomson Playford<br />
Tonkin Consulting<br />
Torque Hydraulics<br />
Training Materials<br />
Consultancy<br />
Transaction Partners<br />
Tyco Flow Control Pacific<br />
United Group<br />
Vectra Corporation Ltd<br />
Vipac Engineers and<br />
Scientists Ltd<br />
Water Data Services Pty Ltd<br />
Watsons Lawyers<br />
Westpac Banking<br />
Corporation<br />
Whitham Media Australia<br />
William Buck<br />
Wilson People Management<br />
WorkPac Central Pty Ltd<br />
World Link International<br />
WorleyParsons<br />
Yakka Pty Ltd<br />
Associates<br />
Active Bobkats<br />
Bradshaw, Peter<br />
Coppin, Teena<br />
EP Quarry Consultants<br />
Fargher, John<br />
Farringtom, Vic<br />
Getz, Arnold<br />
Goldsworthy, Roger<br />
Haddow, Graham<br />
Hardy AO, Barbara<br />
Heithersay, Paul<br />
Hill, Darren<br />
JLC Exploration<br />
Kennedy, Sean<br />
Mellor, Barbara<br />
Northern Regional<br />
Development Board<br />
Penfold, Mike (Agri-ped)<br />
Steed, Ivan<br />
Thomas, Dave<br />
Tonkin, David<br />
Zwiersen, Tim<br />
(Outback Native Seeds)<br />
<strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT<br />
17
Sponsorship<br />
Sponsorship by member organisations assists <strong>SACOME</strong> provide its annual corporate lunch program and other events at economical<br />
prices. In January 20<strong>08</strong>, <strong>SACOME</strong> introduced a new sponsorship scheme allowing members more options to gain additional exposure<br />
throughout the calendar year and support the organisation. <strong>SACOME</strong> is grateful for the ongoing support of these and all of our sponsors.<br />
Adelaide Resources<br />
Alexander & Symonds<br />
B.L.Shipway<br />
Bateman Engineering<br />
Beach Petroleum<br />
Bianco<br />
Boart Longyear<br />
Cavpower<br />
Chandler Macleod<br />
Chubb Foresafety<br />
Heathgate Resources<br />
HeliAir Pty Ltd<br />
KBR<br />
Macquarie Private Wealth<br />
Maximus Resources<br />
Mercury Firesafety<br />
Minotaur Exploration<br />
Mithril Resources<br />
OAMPS Insurance Brokers<br />
Optus Business<br />
Oxiana Limited<br />
PB (Parsons Brinckerhoff)<br />
PepinNini Minerals<br />
Qantas<br />
Terramin Australia<br />
Toro Energy Ltd<br />
Trafford Resources<br />
Tyco Flow Control<br />
Uranium Exploration Australia Ltd<br />
Wilson People Management<br />
Workpac<br />
18 <strong>SACOME</strong> 20<strong>08</strong> ANNUAL REPORT
Mines and Energy House<br />
290 Glen Osmond Road,<br />
Fullarton, South Australia 5063<br />
Phone +61 8 8202 9999<br />
Fax +61 8 8202 9900<br />
Email sacome@sacome.org.au<br />
www.sacome.org.au