SACOME Priorities: State Election 2018

SACOME PRIORITIES:
STATE ELECTION 2018
South Australian Chamber of Mines & Energy
Mines & Energy House
290 Glen Osmond Road
Fullarton SA 5063
+61 8 8202 9999
SACOME 2018 Election Charter sacome@sacome.org.au 1
www.sacome.org.au

Contents
1. SACOME Policy Recommendations ................................................................................. 3
1.1 State Economic Development ........................................................................................................... 3
1.2 Infrastructure ........................................................................................................................................... 4
1.3 Energy ........................................................................................................................................................ 5
1.4 Legislation & Regulation .................................................................................................................... 6
Economic Contribution of the South Australian Resources Sector ..................................... 7
2. SACOME 2018 South Australian Election Policy Agenda .............................................. 8
3. State Economic Development.......................................................................................... 9
3.1 Policy Discussion .................................................................................................................................... 9
3.2 State Economic Development Policy Recommendations: ................................................... 10
3.2.1 Rejection of Resources Moratoria ............................................................................................... 10
3.2.2 Greater access to the Woomera Prohibited Area ................................................................. 10
3.2.3 Increased PACE Minerals Funding .............................................................................................. 10
4. Infrastructure .................................................................................................................. 11
4.1 Policy Discussion ................................................................................................................................. 11
4.2 Infrastructure Policy Recommendations .................................................................................... 12
4.2.1 Duplication of the Joy Baluch Bridge, Port Augusta ............................................................ 12
4.2.2 Regional Port Infrastructure .......................................................................................................... 12
4.2.3 Electricity Transmission Infrastructure ....................................................................................... 12
5. Energy .............................................................................................................................. 13
5.1 Policy Discussion ................................................................................................................................. 13
5.2 Energy Policy Recommendations ................................................................................................. 14
5.2.1 Nationally Cohesive Energy Policy .............................................................................................. 14
5.2.2 Electricity Storage .............................................................................................................................. 14
5.2.3 Ensuring Gas Supply ......................................................................................................................... 14
6. Legislation & Regulation................................................................................................ 15
6.1 Policy Discussion ................................................................................................................................. 15
6.2 Legislation & Regulation Policy Recommendations ............................................................. 16
6.2.1 Completion of the Leading Practice Mining Acts Review Process ................................. 16
6.2.2 Land Access Arrangements ........................................................................................................... 16
6.2.3 Completion of EPBC Bi-lateral Agreements ............................................................................ 16
SACOME Priorities: State Election 2018 2

1. SACOME Policy Recommendations
1.1 State Economic Development
Rejection of Resources Moratoria - Reject all moratoria on resources exploration and
development in South Australia.
SACOME opposes resources moratoria and calls for all South Australian political parties and
independents to reject their use.
Greater access to the Woomera Prohibited Area - Increase economic development
opportunities for the State through improved Woomera Prohibited Areas access arrangements.
SACOME calls for increased access to the WPA and for the South Australian Government to
support increased exploration and improved access arrangements as part of the 2018 WPA
Review process.
Increased PACE Minerals Funding - Increase PACE Minerals funding to incentivise ongoing
mineral exploration in South Australia.
SACOME calls for increased PACE Minerals funding.
SACOME Priorities: State Election 2018 3

1.2 Infrastructure
Duplication of the Joy Baluch Bridge, Port Augusta - Create economic efficiencies for the
resources, agricultural and freight sectors through duplication of the Joy Baluch Bridge and
increased vehicle flow.
SACOME welcomes the South Australian Government’s funding commitment of $40m (of the
total $200m cost) for duplication of the Joy Baluch Bridge, and calls for support of this
commitment from all political stakeholders.
In addition, SACOME calls for a commitment from all South Australian political stakeholders
to pursue Commonwealth co-funding for this project.
Regional Port Infrastructure - Facilitate the development of critical port infrastructure,
including development of deep water ‘capesize’ port, to increase South Australian export capacity
and drive efficiency across the resources supply chain.
SACOME calls for all political stakeholders to implement regulatory, funding and other
necessary approvals that will enable the prompt development of port infrastructure projects.
Electricity Transmission Infrastructure - Facilitate the development of electricity transmission
infrastructure to enable South Australian resources projects.
SACOME calls for investment in electricity transmission infrastructure for resources provinces
in the Far North and on the Eyre Peninsula to enable the development of existing and future
projects.
SACOME Priorities: State Election 2018 4

1.3 Energy
Nationally Cohesive Energy Policy - Greater collaboration between Federal and State
governments to develop nationally cohesive energy policies.
SACOME calls for Federal and State leaders to work together to develop nationally cohesive
energy policy that facilitates the supply of affordable, secure and reliable energy.
Electricity Storage Options - Ensure continued investment in electricity storage options that
improve reliability of the South Australian electricity network.
SACOME calls for all political stakeholders to support continued investment in electricity
storage options that will improve the reliability and operation of variable renewable energy
generation and supply of electricity in South Australia.
Ensuring Gas Supply - Ensure an ongoing supply of affordable gas for South Australian
industrial, commercial and domestic users.
SACOME calls for all political stakeholders to support development of conventional and
unconventional gas projects in South Australia.
SACOME Priorities: State Election 2018 5

1.4 Legislation & Regulation
Completion of the Leading Practice Mining Acts Review Process - Ensure the regulatory
structures governing the resources sector are efficient, reflective of industry practices and
facilitate industry activity through completion of the South Australian Leading Practice Mining
Acts Review process.
SACOME calls for all political stakeholders to commit to completion of the Leading Practice
Mining Acts Review process following the 2018 State Election.
Land Access Arrangements - Ensure that processes governing land access arrangements in
South Australia are transparent, evidence-based and strike a balance between land holder rights
and land access for the resources sector.
SACOME calls for a commitment by all political stakeholders to enable land access
opportunities for the resources sector while appropriately balancing native title,
compensation, environmental, heritage and other relevant concerns.
Completion of EPBC Bilateral Agreements - Commit to the completion of EPBC Bilateral
Agreement processes.
SACOME calls for the completion of EPBC Bilateral agreements between the South Australian
and Commonwealth Governments to streamline environmental approvals under the EPBC Act.
SACOME Priorities: State Election 2018 6

Economic Contribution of the South Australian
Resources Sector
Source: South Australian Resources Information Gateway (SARIG) 2016
SACOME Priorities: State Election 2018 7

2. SACOME 2018 South Australian Election Policy Agenda
The South Australian Chamber of Mines
and Energy (SACOME) is the leading
industry body representing companies with
interests in the South Australian minerals,
energy, extractive, oil and gas sectors; and
the companies who provide support
services to these sectors.
SACOME’s membership comprises
companies across the exploration,
extractives, mining, petroleum, service
provision and allied sectors.
SACOME’s policy agenda is guided by the
principle that, as the leading industry body
for the South Australian resources sector,
we create an environment that is conducive
to the development of the sector while
ensuring that industry activity is governed
by effective regulatory structures and
transparent environmental controls.
The resources sector is steadily recovering
from a period of downturn and, as the
green shoots of recovery emerge, South
Australia is seeing investment in major
commodity projects which will materially
contribute to the wealth of our State.
and makes funding decisions that will
enable the development of resource sector
projects and drive much-needed
efficiencies for operators.
This document is informed by SACOME’s
professional industry committees, and the
policies set out in this document directly
reflect the priorities of those companies
that represent our members.
These election priorities are set out under
SACOME’s four areas of strategic focus;
namely:
State Economic Development;
Infrastructure;
Energy; and
Legislation & Regulation.
SACOME’s 2018 Election Charter seeks to
inform South Australian political
stakeholders of the South Australian
resource sector’s policy priorities ahead of
the next election, and we call for their
adoption by all political parties and
independents.
The next South Australian Government
needs to ensure that it implements policy
SACOME Priorities: State Election 2018 8

3. State Economic Development
3.1 Policy Discussion
Prosperous state economic development is
a goal that SACOME shares with the
broader South Australian community.
SACOME members make a major
contribution to the South Australian
economy through royalties, export
revenues, employment; and the supply of
mineral commodities and oil and gas to
domestic and global supply chains.
SACOME calls for policy and funding
outcomes that encourage growth and
investment in the resources sector while
dispelling sovereign risk concerns.
In addition, reducing operational expense,
improving access to land and incentivising
exploration underpin the ongoing
development of resources projects in South
Australia.
South Australia has an abundance of
mineral wealth, however, the State’s
challenging geology means extracting
these commodities can be an expensive
and lengthy proposition for operators.
The PACE program has been a cornerstone
of South Australia’s ability to attract
investment in mineral exploration. It is a
demonstrated economic multiplier, having
generated an increase in state mining
revenue of $2.4B for a public expenditure
of about $50M.
Ensuring an ongoing pipeline of
discoveries is important to both the
resources sector and the State, and PACE
plays an important role in this regard.
Resources moratoria are an anathema to
state economic development as they
impede the ability of the sector to develop
new supplies, distort markets and drive up
the cost of critical feedstocks like gas with
flow on effects for industrial, commercial
and domestic users.
They act as a disincentive to investment
and represent a simplistic, populist
response to complex issues which require a
considered and nuanced policy response.
Government and industry must continue to
work in partnership to resolve these
challenges if the economic opportunities
arising from major commodity projects are
to be realised.
SACOME Priorities: State Election 2018 9

Calls for resources moratoria are a
continual frustration for our sector as they
dismiss the stringent compliance
obligations required of operators as part of
the approval process for all resources
projects.
In addition, resources moratoria raise
sovereign risk concerns for the sector, and
act as a strong disincentive for investment
in jurisdictions where they have been
adopted.
3.2 State Economic
Development Policy
Recommendations:
3.2.2 Greater access to the Woomera
Prohibited Area
Increase economic development
opportunities for the State through
improved Woomera Prohibited Areas access
arrangements.
SACOME calls for increased access to the
WPA and for the South Australian
Government to support increased
exploration and improved access
arrangements as part of the 2018 WPA
Review process.
3.2.3 Increased PACE Minerals Funding
3.2.1 Rejection of Resources Moratoria
Reject all moratoria on resources
exploration and development in South
Australia.
Increase PACE Minerals funding to
incentivise ongoing mineral exploration in
South Australia.
SACOME calls for increased PACE Minerals
funding.
SACOME opposes resources moratoria and
calls for all South Australian political parties
and independents to reject their use.
SACOME Priorities: State Election 2018 10

4. Infrastructure
4.1 Policy Discussion
Infrastructure is fundamental to enabling
the growth and productivity of not only the
resources sector, but all sectors that rely on
it.
The extensive scoping work undertaken in
South Australia through initiatives like the
South Australian Regional Mining &
Infrastructure Plan 2014, alongside
business case development for a range of
projects via Infrastructure Australia mean
the infrastructure requirements of the
resources sector are generally well
understood.
This extensive planning must now be
translated into activity.
Resources sector activity overwhelmingly
occurs in regional South Australia, with our
regions contribution around $25.4 billion
to the State’s economy, or over one quarter
of Gross State Product (GSP).
Investment in regional infrastructure is
investment in economic growth.
Critical regional infrastructure must be
given funding priority if the State’s
economic development and job creation
goals are to be realised. In 2017, the South
Australian Government announced a
record $12.1 billion in infrastructure
investment, with the overwhelming
majority of these projects occurring in
metropolitan areas.
SACOME calls for a focus on developing
infrastructure projects that will alleviate
bottlenecks and increase economic output
of both the resources sector and the State.
Road, rail and port infrastructure is critical
to enabling the efficient transport of goods
along supply chains and maximising export
opportunities for South Australia. Similarly,
electricity transmission infrastructure is
necessary for development of major
resources projects in the Far North and on
the Eyre Peninsula.
Many of SACOME’s infrastructure priorities
are shared by other industry sectors and
funding of these projects will yield
economic benefits across multiple
constituencies.
Where responsibility for infrastructure
funding falls across multiple tiers of
government, SACOME calls for all parties to
work in collaboration to realise funding
and development outcomes.
SACOME Priorities: State Election 2018 11

4.2 Infrastructure Policy
Recommendations
4.2.1 Duplication of the Joy Baluch
Bridge, Port Augusta
Create economic efficiencies for the
resources, agricultural and freight sectors
through duplication of the Joy Baluch Bridge
and increased vehicle flow.
SACOME welcomes the South Australian
Government’s funding commitment of
$40m (of the total $200m cost) for
duplication of the Joy Baluch Bridge, and
calls for support of this commitment from
all political stakeholders.
In addition, SACOME calls for a
commitment from all South Australian
political stakeholders to pursue
Commonwealth co-funding for this project.
4.2.2 Regional Port Infrastructure
Facilitate the development of critical port
infrastructure, including development of
deep water ‘capesize’ port, to increase South
Australian export capacity and drive
efficiency across the resources supply chain.
SACOME calls for all political stakeholders
to implement regulatory, funding and
other necessary approvals that will enable
the prompt development of port
infrastructure projects.
4.2.3 Electricity Transmission
Infrastructure
Facilitate the development of electricity
transmission infrastructure to enable South
Australian resources projects.
SACOME calls for investment in electricity
transmission infrastructure for resources
provinces in the Far North and on the Eyre
Peninsula to enable the development of
existing and future projects.
SACOME Priorities: State Election 2018 12

5. Energy
5.1 Policy Discussion
The South Australian and national energy
markets are undergoing a period of
significant change, affecting the
deliverability and reliability of energy
across the State and the nation.
Access to affordable, secure and reliable
sources of energy are vital for the South
Australian resources sector to prosper.
South Australia has the highest penetration
of renewable generation in Australia
(42.2%) and, as such, experiences increased
volatility and higher wholesale and retail
electricity prices.
The retirement of baseload generation in
South Australia has prompted a reduction
of synchronous generation traditionally
responsible for frequency control and
ancilliary services critical to the stability and
reliability of the network.
Integrating measures to improve the
reliability of renewable generation is
fundamental to ensuring reliability of
supply, with electricity storage playing an
important role in this regard.
South Australia faces a unique challenge in
bringing greater reliability of supply to the
South Australian market, and in addressing
the price shocks that occur when
renewable generation is not sufficient to
meet demand.
SACOME has been active in addressing this
issue through its Joint Purchasing Electricity
Group.
This SACOME-led initiative secured ACCC
authorisation, allowing 22 major electricity
users in South Australia to collectively
negotiate a long-term supply contract
aimed at leveraging this collective
purchasing power to negotiate a more
affordable electricity supply arrangement.
The group’s combined load of 267 MW
constitutes 16% of South Australia’s total
load. The Purchasing Group is also an
exercise in cross-sector collaboration,
comprising members across the mining,
food and wine, agriculture, manufacturing,
retail and tertiary education sectors.
Gas is a critical component of South
Australia’s energy sector and delays or
restrictions to supply and development will
negatively impact gas consumers.
Gas is symbiotically linked with electricity
generation, and gas-fired generation
comprises 50% of South Australia’s
electricity production. A reliable, affordable
supply of gas is essential to ensuring
reliable, affordable electricity generation.
A cohesive national energy policy is
fundamental to ensuring the reliable,
affordable supply of energy to all users.
SACOME calls for greater collaboration
between the Commonwealth and all States
SACOME 2018 Election Charter 13
SACOME Priorities: State Election 2018 13

to develop and implement policy settings
that facilitate the supply of affordable,
reliable energy.
Policies such as the National Energy
Guarantee and Finkel Review
recommendations demonstrate a welcome
shift toward national coordination of
energy policy. SACOME submits that such
policies should be technology neutral and
that climate policy targets operating under
such frameworks should operate in line
with international policies incorporating
market-based mechanisms.
5.2 Energy Policy
Recommendations
5.2.2 Electricity Storage
Ensure continued investment in electricity
storage options that improve reliability of
the South Australian electricity network.
SACOME calls for all political stakeholders
to support continued investment in
electricity storage options that will improve
the reliability of variable renewable energy
generation and supply of electricity in
South Australia.
5.2.3 Ensuring Gas Supply
Ensure an ongoing supply of affordable gas
for South Australian industrial, commercial
and domestic users.
5.2.1 Nationally Cohesive Energy Policy
Greater collaboration between Federal and
State governments to develop nationally
cohesive energy policies.
SACOME calls for all political stakeholders
to support development of conventional
and unconventional gas projects in South
Australia.
SACOME calls for Federal and State leaders
to work together to develop nationally
cohesive energy policy that facilitates the
supply of affordable, reliable energy.
SACOME 2018 Election Charter 14
SACOME Priorities: State Election 2018 14

6. Legislation & Regulation
6.1 Policy Discussion
The resources sector is subject to extensive
regulatory oversight across all stages of
activity and is one of the most heavily
regulated sectors in Australia.
South Australia benefits from a reputation
as a low-risk investment destination with a
consultative and responsive regulator.
Sound regulatory structures create an
attractive environment within the context
of global competition for resources sector
investment.
The competitive advantage offered by
efficient, balanced regulatory frameworks
cannot be overlooked by political
stakeholders and SACOME calls for all
political stakeholders to commit to
ongoing regulatory reform as a matter of
principle.
The Leading Practice Mining Acts Review
process is a necessary step in amending
outdated legislation and creating a
regulatory framework that reflects modern
operational practices and facilitates
industry activity. SACOME calls for the
continuation of the review following the
2018 State Election.
Similarly, SACOME calls for completion of
the Environment Protection Biodiversity &
Conservation (EPBC) bilateral agreement
processes commenced in 2012 and
designed to establish an arrangement
between the Commonwealth and the
South Australian Government to streamline
environmental approvals process under the
EPBC Act. Finalisation of this process would
reduce duplication and timeframes
associated with securing project approval,
with no change to environmental
protection in the Act.
Land access is fundamental to the
operation of the resources sector and
SACOME has been engaged in active
consultation with government, the
agricultural sector and traditional owners
as part of the Mining Acts review and the
Stronger Partners, Stronger Futures
initiative.
These discussions have been constructive
and are actively assisting the development
of improved land access arrangements in
South Australia. SACOME calls for all
political stakeholders to support and
engage in these discussions.
In addition to these specific examples of
regulatory improvement, SACOME calls for
a commitment to ongoing consultation by
government in developing legislative
frameworks that are relevant to industry
practices; and which properly balance the
interests and responsibilities of all
stakeholders.
Government must ensure that the
obligations established by these regulatory
structures do not create unnecessary
administrative burdens or operational
expenses.
SACOME Priorities: State Election 2018 15

SACOME calls for South Australian political
stakeholders to commit to best-practice
regulatory frameworks that facilitate
industry activity, encourage investment and
put in place mechanisms that anticipate
and address issues of potential conflict
between the resources sector and the
many other stakeholders it interacts with.
6.2 Legislation & Regulation
Policy Recommendations
SACOME calls for a commitment by all
political stakeholders to enable land access
opportunities for the resources sector while
appropriately balancing native title,
compensation, environmental, heritage and
other relevant concerns.
6.2.3 Completion of EPBC Bi-lateral
Agreements
Commit to the completion of EPBC Bilateral
Agreement processes.
6.2.1 Completion of the Leading Practice
Mining Acts Review Process
Ensure the regulatory structures governing
the resources sector are efficient, reflective
of industry practices and facilitate industry
activity through completion of the South
Australian Leading Practice Mining Acts
Review process.
SACOME calls for the completion of EPBC
Bilateral agreements between the South
Australian and Commonwealth
Governments to streamline environmental
approvals under the EPBC Act.
SACOME calls for all political stakeholders
to commit to completion of the Leading
Practice Mining Acts Review process
following the 2018 State Election.
6.2.2 Land Access Arrangements
Ensure that processes governing land access
arrangements in South Australia are
transparent, evidence-based and strike a
balance between land holder rights and
land access for the resources sector.
SACOME Priorities: State Election 2018 16