SACOME Annual Report 2016-17
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president’s report<br />
CEO’s message<br />
The past year has continued to be<br />
challenging for our members, however<br />
there are some signs of an upturn,<br />
particularly for the mining sector.<br />
This year has seen the approval of Iron<br />
Road’s Central Eyre Iron Project Mining<br />
Lease and Development Application, Iluka is<br />
recommencing operations at Jacinth-Ambrosia<br />
Mine, OZ Minerals submitted its Mining Lease<br />
application for Carrapateena, BHP is developing<br />
the Southern Mine Area at Olympic Dam<br />
and Hillgrove is considering underground<br />
development at Kanmantoo.<br />
There has also been exploration activity with<br />
companies such as BHP, Minotaur Exploration<br />
and Archer Exploration.<br />
In the oil and gas sector, the decision by BP not<br />
to drill in the Great Australian Bight (GAB) was<br />
disappointing, but recent developments with<br />
Statoil taking over two of the leases, including the<br />
Stromlo 1 well, and Chevron’s continued activity<br />
could see drilling underway in the GAB next year.<br />
The PACE gas initiatives, Beach Energy’s stronger<br />
gas production, and increased drilling activity<br />
in the Cooper and Eromanga Basins by Santos,<br />
Beach Energy, Senex and other companies adds<br />
more positive news for the sector.<br />
Energy security, reliability and affordability has<br />
been a prominent concern of our members for<br />
some time. The South Australian Government<br />
announced a range of independent initiatives<br />
for the state’s energy. The long-awaited Finkel<br />
Review on the Future Security of the National<br />
Electricity Market also offers some alternatives to<br />
consider.<br />
While there are positive initiatives, particularly<br />
with respect to leadership shown from <strong>SACOME</strong><br />
on the Australian Competition and Consumer<br />
Commission (ACCC) submission for collective<br />
electricity supply negotiation, energy in South<br />
Australia remains an area of concern for most<br />
businesses.<br />
As has been widely reported, several jurisdictions<br />
in Australia have announced sweeping bans<br />
or moratoria on gas development. Victoria<br />
has stopped all onshore gas exploration and<br />
development, and Tasmania along with New<br />
South Wales have banned hydraulic fracturing.<br />
With the state election in 2018, <strong>SACOME</strong> will<br />
be focusing on the manifestos of the various<br />
political parties and groupings in the coming<br />
months. If the assessment and approval of<br />
resource projects is left to regulators, supported<br />
by sound regulatory systems, South Australia<br />
can continue to be one of few jurisdictions in<br />
the country where resource companies do not<br />
have to factor in sovereign risk in exploration and<br />
development investment decisions.<br />
<strong>SACOME</strong> is well positioned to support its<br />
members in this changing resources<br />
environment and Council acknowledges the<br />
efforts of its dedicated team. <strong>SACOME</strong> Council<br />
appointed a new CEO, Rebecca Knol, in late <strong>2016</strong><br />
who will prepare <strong>SACOME</strong> to respond to future<br />
developments, which will continue to affect the<br />
sector.<br />
The <strong>SACOME</strong> Council is appreciative of members’<br />
support and look forward to a continued longterm<br />
relationship.<br />
Terry Burgess<br />
President<br />
This year has been one of change for<br />
South Australia’s peak mining and<br />
energy association. Joining <strong>SACOME</strong> as<br />
CEO has provided the opportunity to<br />
reflect and refresh the organisation’s<br />
strategic focus and create member<br />
value.<br />
<strong>SACOME</strong>’s fundamentals have not changed;<br />
we influence policy, advocate on behalf of<br />
our members and connect members with<br />
opportunities to enhance resource projects and<br />
attract investment.<br />
Significant challenges throughout the year<br />
have tested the resilience of the resources<br />
sector – a rejection from the citizens’ jury on<br />
a nuclear waste repository for SA, escalating<br />
electricity prices, restricted domestic gas supply<br />
and a severe storm that lead to disruptions to<br />
electricity supply.<br />
Some of the key challenges for the sector are<br />
access to land and stakeholder engagement.<br />
These require a collective response, with<br />
success for our sector depending on effective<br />
collaboration.<br />
<strong>SACOME</strong>’s commitment to cross sector dialogue<br />
during the historic review of the state’s mining<br />
acts resulted in benefits to both the mining and<br />
agricultural sectors.<br />
<strong>SACOME</strong>’s response to the state’s energy crisis<br />
provided leadership in establishing a multisectoral<br />
power consortium. With representation<br />
from resources, processing, food & wine,<br />
manufacturing, agriculture, retail and education<br />
sector, this consortium has the potential to put<br />
downward pressure on wholesale electricity<br />
pricing throughout SA.<br />
Advocacy remains front and centre for<br />
<strong>SACOME</strong> with a focus on State Economic<br />
Development, Legislation & Regulation, Energy<br />
and Infrastructure. <strong>SACOME</strong> has continued to<br />
support commodity specific strategies, including<br />
the Copper Strategy and Magnetite Strategy,<br />
and will continue to advocate for growth of the<br />
sector.<br />
There is no shortage of imagination and<br />
innovation in the resources sector and<br />
through effective partnering <strong>SACOME</strong> hosted<br />
an Innovation Summit and Futures Forum,<br />
showcasing advances in the digital mine and<br />
clustering space, exploring ways to reduce the<br />
cost of compliance and expanding markets. We<br />
continue to actively support Mining Equipment,<br />
Technology and Services (METS) sector.<br />
With the support of members and sponsors we<br />
held many other outstanding events throughout<br />
the year. These events were strategically placed<br />
to drive debate around key sector issues to<br />
shape policy and provide thought leadership<br />
opportunity for our members.<br />
The year ahead and the opportunities to be<br />
leveraged are clear. <strong>SACOME</strong> commits to driving<br />
robust policy positions to influence government<br />
decisions, as well as looking around corners to<br />
provide agile opportunities.<br />
I would like to thank the <strong>SACOME</strong> Council and<br />
all our staff for their support and commitment to<br />
creating value for our members - driving positive<br />
outcomes for South Australia.<br />
Rebecca Knol<br />
Chief Executive Officer<br />
2 South Australian Chamber of Mines and Energy<br />
<strong>Annual</strong> <strong>Report</strong> 20<strong>17</strong> 3