SACOME Annual Report 2016-17

president’s report
CEO’s message
The past year has continued to be
challenging for our members, however
there are some signs of an upturn,
particularly for the mining sector.
This year has seen the approval of Iron
Road’s Central Eyre Iron Project Mining
Lease and Development Application, Iluka is
recommencing operations at Jacinth-Ambrosia
Mine, OZ Minerals submitted its Mining Lease
application for Carrapateena, BHP is developing
the Southern Mine Area at Olympic Dam
and Hillgrove is considering underground
development at Kanmantoo.
There has also been exploration activity with
companies such as BHP, Minotaur Exploration
and Archer Exploration.
In the oil and gas sector, the decision by BP not
to drill in the Great Australian Bight (GAB) was
disappointing, but recent developments with
Statoil taking over two of the leases, including the
Stromlo 1 well, and Chevron’s continued activity
could see drilling underway in the GAB next year.
The PACE gas initiatives, Beach Energy’s stronger
gas production, and increased drilling activity
in the Cooper and Eromanga Basins by Santos,
Beach Energy, Senex and other companies adds
more positive news for the sector.
Energy security, reliability and affordability has
been a prominent concern of our members for
some time. The South Australian Government
announced a range of independent initiatives
for the state’s energy. The long-awaited Finkel
Review on the Future Security of the National
Electricity Market also offers some alternatives to
consider.
While there are positive initiatives, particularly
with respect to leadership shown from SACOME
on the Australian Competition and Consumer
Commission (ACCC) submission for collective
electricity supply negotiation, energy in South
Australia remains an area of concern for most
businesses.
As has been widely reported, several jurisdictions
in Australia have announced sweeping bans
or moratoria on gas development. Victoria
has stopped all onshore gas exploration and
development, and Tasmania along with New
South Wales have banned hydraulic fracturing.
With the state election in 2018, SACOME will
be focusing on the manifestos of the various
political parties and groupings in the coming
months. If the assessment and approval of
resource projects is left to regulators, supported
by sound regulatory systems, South Australia
can continue to be one of few jurisdictions in
the country where resource companies do not
have to factor in sovereign risk in exploration and
development investment decisions.
SACOME is well positioned to support its
members in this changing resources
environment and Council acknowledges the
efforts of its dedicated team. SACOME Council
appointed a new CEO, Rebecca Knol, in late 2016
who will prepare SACOME to respond to future
developments, which will continue to affect the
sector.
The SACOME Council is appreciative of members’
support and look forward to a continued longterm
relationship.
Terry Burgess
President
This year has been one of change for
South Australia’s peak mining and
energy association. Joining SACOME as
CEO has provided the opportunity to
reflect and refresh the organisation’s
strategic focus and create member
value.
SACOME’s fundamentals have not changed;
we influence policy, advocate on behalf of
our members and connect members with
opportunities to enhance resource projects and
attract investment.
Significant challenges throughout the year
have tested the resilience of the resources
sector – a rejection from the citizens’ jury on
a nuclear waste repository for SA, escalating
electricity prices, restricted domestic gas supply
and a severe storm that lead to disruptions to
electricity supply.
Some of the key challenges for the sector are
access to land and stakeholder engagement.
These require a collective response, with
success for our sector depending on effective
collaboration.
SACOME’s commitment to cross sector dialogue
during the historic review of the state’s mining
acts resulted in benefits to both the mining and
agricultural sectors.
SACOME’s response to the state’s energy crisis
provided leadership in establishing a multisectoral
power consortium. With representation
from resources, processing, food & wine,
manufacturing, agriculture, retail and education
sector, this consortium has the potential to put
downward pressure on wholesale electricity
pricing throughout SA.
Advocacy remains front and centre for
SACOME with a focus on State Economic
Development, Legislation & Regulation, Energy
and Infrastructure. SACOME has continued to
support commodity specific strategies, including
the Copper Strategy and Magnetite Strategy,
and will continue to advocate for growth of the
sector.
There is no shortage of imagination and
innovation in the resources sector and
through effective partnering SACOME hosted
an Innovation Summit and Futures Forum,
showcasing advances in the digital mine and
clustering space, exploring ways to reduce the
cost of compliance and expanding markets. We
continue to actively support Mining Equipment,
Technology and Services (METS) sector.
With the support of members and sponsors we
held many other outstanding events throughout
the year. These events were strategically placed
to drive debate around key sector issues to
shape policy and provide thought leadership
opportunity for our members.
The year ahead and the opportunities to be
leveraged are clear. SACOME commits to driving
robust policy positions to influence government
decisions, as well as looking around corners to
provide agile opportunities.
I would like to thank the SACOME Council and
all our staff for their support and commitment to
creating value for our members - driving positive
outcomes for South Australia.
Rebecca Knol
Chief Executive Officer
2 South Australian Chamber of Mines and Energy
Annual Report 2017 3