SACOME Annual Report 2007-08

industry development
Assisting mining and
energy companies to be safe,
enduring and prosperous
Code of Conduct for
Landholders and Mineral &
Energy Explorers in South
Australia: A framework for
access to rural land
On the recommendation of the
SACOME Exploration Committee in
October 2007, SACOME and the SA
Farmers Federation (SAFF) developed
a framework for access to rural land.
The code of conduct is designed
to foster good relations between
landholders and mineral explorers
regarding access to rural land for
mineral exploration. This is based on
the understanding and sensitivity of
explorers that they are “guests” on
land, whether private or leasehold, and
appreciation by farmers of the needs
and rights of mineral explorers.
The code of conduct was completed by
SACOME and endorsed by SAFF in June
2008. The code of conduct:
• recognises the rights and concerns of
both explorers and private landholders
• presents a clear outline for dialogue
and negotiation of access and (if
necessary) compensation for
temporary disturbance.
SACOME acknowledges the SA
Farmers Federation and the staff
of Primary Industry and Resources SA
Minerals and Energy Resources
division for their contribution to this
valuable resource.
Flow through Share Scheme
The new labor Federal Government’s
policy is to promote investment in
resource exploration through the
introduction of a flow through share
scheme as outlined in their ‘Election 07’
Policy Document. At the February 2008
meeting of the SACOME Exploration
Committee meeting, it was decided
to pursue the goal of introducing
a flow through share scheme into
Australia and that the Director, Industry
Development, Jonathon Forbes should
work with Alice McLeary, (SACOME
Exploration Committee member)
who has experience in this area.
Ms McCleary developed a model for
discussion based on the premise that
past models have been attempts to
bolt the Canadian concession onto
the Australian tax system and was
unnecessarily complex.
The model proposed has been developed
based on existing Australian taxation
concepts and is designed as a simple
mechanism that will minimise:
• administrative costs for companies,
regulators and investors
• distortions between shareholders
• tax compliance costs, and
• distortions for investment decisions
by companies.
The model has been distributed to the
Minerals Exploration Advisory Group
(MEAG), a SACOME led working group,
the Minerals Council of Australia,
Association of Mining and Exploration
Companies (WA) and the Department
of Resources, Energy & Tourism (DRET)
(the lead Federal Government agency
on this matter). SACOME will be actively
pursuing the goal of having the Federal
Government introduce a flow through
share scheme in 2009.
Land Access
Mining and Defence seek
co-existence on WPA
The Woomera Prohibited Area (WPA)
occupies some 13 per cent of the total
area of SA within the mineral-rich
northern Gawler Craton and includes
significant projects such as the
Challenger Gold Mine and Prominent
Hill Copper-Gold Mine. It is highly
prospective, with emerging mineral
projects such as iron ore prospects at
Peculiar Knob, Hawkes Nest and Cairn
Hill and the entire WPA is effectively
covered in mineral, petroleum and
geothermal tenements and applications.
In 2007, SACOME was successful
in negotiating with the Director,
Woomera Test Facility, the reduction
in Public Liability provisions in the
Deed of Access (Exploration) from $50m
to $20m. This represents a saving of
approximately $3,000 to $4,000 annually
for any company entering into a Deed of
Access to the WPA. The provision is to
be reviewed on an annual basis.
There have been ongoing issues relating
to access to the Woomera Prohibited
Area (WPA) by mineral explorers which
has been exacerbated in recent times as
the two major industries of mining and
defence ramp up activities in the WPA.
SACOME has, and continues, to
facilitate processes to ensure that
the stated aim by both mining and
defence of co-existence is one that is
fair and reasonable to the resource
and energy sectors. The SACOME
Exploration Committee has been active
in this process, inviting Dr Doug Gerrie,
Director, Woomera Test Facility to
address the Committee at its February
2008 meeting.
SACOME 2008 ANNUAL REPORT