SACOME Annual Report 2018-19

South Australian Chamber of Mines and Energy
Annual Report 2019

contents
LEADERSHIP COUNCIL 3
President’s Report 4
CEO Message 5
Strategy 6
– South Australian Resources
Sector 2024 Vision
– Policy Plan
– External Affairs Strategy
Friends of the Resources 8
Sector Parliamentary Forum
Joint Electricity 9
Purchasing Group
SACOME ADVOCACY 10
SACOME Code of Conduct 11
Committees 12
Committee Survey 13
Policy Submissions 14
Membership Survey 15
SACOME Events 16
– Flagship Events
– AGM Lunch
– Resources Sector Dinner
– SACOME Event Series
– Breakfast Series
– Thought Leadership Series
– Annual sponsors and
long-term members roof
climb experience
– Sponsored Events
– South Australian Mines
Rescue Competition
– Global Maintenance Upper Spencer
Gulf (GMUSG) Conference
– Export Awards
– On the public stage
Member Communications 21
Publications 22
– Mental Health pocket guide
– Information sheets
Media Coverage 23
Opinion pieces 24
Sponsorship 26
Financial Report 30
– Profit and loss comparison
– Balance sheet comparison

LEADERSHIP COUNCIL
The South Australian Chamber of Mines and Energy (SACOME) is the leading
industry body representing companies with interests in minerals, energy,
extractives, oil & gas and renewables in South Australia (SA); including those who
provide services to them.
SACOME, a not-for-profit, non-government organisation, drives debate, facilitates
opportunity, brings stakeholders together and advocates for change; ensuring the many
benefits of South Australia’s resources are recognised.
SACOME is grateful to the Councillors, who have volunteered their expertise and time
during the 2018/19 year; including departed Councillors Vicki Brown, Stewart Lammin –
Flinders Port Holdings, Nicole Galloway-Warland – PepinNini Lithium and Steve McClare
– Hillgrove Resources (replaced by Lachlan Wallace).
SACOME Councillors L to R: Sarah Clarke (Piper Alderman) – Service Industry,
Rob Malinauskas (Beach Energy) – Industry General, Andrew Cole (OZ Minerals) – Minerals,
Steve McClare (Hillgrove) – Industry General, Greg Hall (Rex Minerals) – Industry General,
Varis Lidums (Minotaur Exploration) – Exploration, Andrew Dyda (Finlaysons) – Service Industry,
Rebecca Knol (CEO, SACOME), Matt Sherwell (SANTOS) – Petroleum, Mark Dayman (FYFE) –
Service Industry, Andrew Cannon (Adelaide Brighton Cement) – Extractive Minerals,
Laura Tyler (BHP) – Industry General, Wendy Roxbee (Senex Energy) – Energy,
Hamish Little (Iluka Resources) – Industry General.
Annual Report 2019 3

president’s report
The resources industry within South
Australia has had a mixed year, with
stronger oil and gas prices supporting
one of our largest industries. Our
industry can be a cyclical one,
and hence it is very good to see
advancing projects within the State
at Carapateena, the restart of mining
at Jacinth – Ambrosia, Equinor
continuing with its important oil and
gas exploration, and a significant new
discovery at Oak Dam in the north of
the State.
The Statutes Amendment (Mineral
Resources) Bill has passed the Lower
House of Parliament, and at time of writing
has yet to be debated in the Upper House.
It is important to the ongoing certainty
of our sector that this Bill passes without
amendment.
There are calls for a “Commission of
Inquiry” into land access for exploration
and mining, and resource industry
regulation. Our sector favours a forwardlooking
modernisation of the Mining
Act incorporating an evaluation of best
practice and fit for purpose legislation and
regulation for our State.
The State Government’s establishment of
Infrastructure South Australia (ISA) forms
a foundation for future infrastructure
evaluation. SACOME contributed to the
20-Year Infrastructure Strategy Discussion
Paper highlighting the critical role of
infrastructure to support the resource
sector and other regional industries.
The resources sector in South Australia
makes a substantial contribution to South
Australia’s prosperity and resilience,
financially contributing up to 33% of the
State’s exports. The resource industry
utilises less than 0.05% of the State’s land
area to contribute this one third of the
State’s income.
Our sector continues to be at the
forefront of cutting-edge technology
and innovation and plays a key role in
advancing the transformation of other
industries. Automation, robotics and
artificial intelligence will enable our sector
to remain leaders in global technology.
Rebecca Knol and her team are to be
congratulated for the implementation
and influence of some significant policy
and industry steps during the year.
These included the member Code of
Conduct, the 2024 Vision, the return of
the exploration incentive scheme and
the Friends of the Resources Sector
Parliamentary Forum.
I wish all our members and fellow industry
participants well for the upcoming year.
Greg Hall
President
4 South Australian Chamber of Mines and Energy

CEO’S MESSAGE
Over the past year the South
Australian Chamber of Mines & Energy
has established and implemented a
Code of Conduct with our industry
members. The Code provides a shared
platform for resources companies to
demonstrate their commitment to
sustainable development objectives
and operations consistent with leading
practice.
This year we launched a ‘2024 Vision’ for
the South Australian Resources Sector,
setting a bold framework for growth and
prosperity. This vision is the culmination
of strategic planning undertaken by
SACOME’s Council and provides an
important road map for our sector. The
vision celebrates the contribution of our
sector to the State while acknowledging
our challenges.
This year, with bipartisan political support,
we have facilitated the establishment
of a Friends of the Resources Sector
Parliamentary Forum, providing an
opportunity to inform parliamentarians on
issues that are strategically important to
our industry.
Our key policy areas of State Economic
Development, Legislation & Regulation,
Energy, and Infrastructure continue to be
supported by the valuable contribution of
members through our vibrant committee
structure. These committees underpin
our policy work and have enabled us to
successfully advocate for the reintroduction
of an exploration incentive and to provide
government with balanced submissions
on complex issues such as infrastructure
and energy.
Modernisation of the State’s key mining
legislation has dominated conversations
throughout the year. SACOME will
continue to support the consultation
and negotiations required to reform the
oldest mining legislation in the country,
and ensure it is fit for our modern mining
industry and that mining and agriculture
sectors can sustainably co-exist.
As a sector we are achieving great things
- from discoveries to developments,
expansions and closures that can benefit
communities. Our sector continues to
drive economic prosperity for all South
Australians, to meaningfully engage
communities in our progress and to
ensure they also share in the benefits of
our industry.
Thank you to President Greg Hall and
the SACOME Council for volunteering
their time, expertise and leadership to
the State’s peak resources association, to
ensure we provide member value and a
strong voice for our sector.
Rebecca Knol
Chief Executive Officer
Annual Report 2019 5

STRATEGY
South Australian Resources Sector 2024 Vision
The SACOME Council has developed a five-year vision for
the South Australian Resources Sector to showcase the
many benefits the sector brings to South Australia and to
provide a roadmap for future growth and prosperity.
It highlights the strengths and shared challenges and
provides a selection of case studies and examples of best
practice within the South Australian resources sector.
The vision was launched at SACOME’s Annual Resources
Sector Dinner event, published on the SACOME website
and has been distributed to SACOME member companies.
Our key visions are:
1. To be recognised as an industry of the future.
2. To have strong support of both Government and community.
3. To be a sector of choice for employment.
4. To be a recognised contributor to the South Australian economy.
5. To positively impact and support regional communities.
6. To provide continued social and environmental responsibility.
7. To be profitable and resilient for the benefit of all South Australians.
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South Australian Chamber of Mines and Energy

To achieve these visions, seven strategic investments have been identified:
1. Land access
2. Communication
3. Community engagement and development
4. Transparency and disclosure
5. Inclusion and diversity
6. Electricity affordability
7. Infrastructure
Policy Plan
2019 has seen the Policy
team consolidate the
restructuring efforts
of previous years and
focus on implementing a
strategic policy agenda.
Reflecting the increased
focus of its committees, SACOME undertook dedicated consultation with committee
members and incorporated strategic direction from the SACOME Council to develop its
policy agenda for 2019/20 and beyond.
The Policy Plan 2019 sets out objectives, aims and outcomes under the ‘headline’ areas of
Land Access; Infrastructure; Energy; and Regulation/Approvals.
External Affairs Strategy
SACOME launched an External Affairs and
Communication strategy in 2019 outlining
SACOME’s key audiences, messages and
channels to ensure effective communication
for the South Australian Resources Sector.
The plans were developed with the External
Affairs Committee and include SACOME’s
approach to media relations, social media,
events, member communications and
publications.
Annual Report 2019 7

PARLIAMENTARY FORUM
Friends of the Resources Sector
Parliamentary Forum
In 2018 SACOME achieved bipartisan
support for the introduction of a
‘Parliamentary Friends of the Resources
Sector’ forum series. The forums aim
to provide information and a greater
understanding of the resources sector.
Events are open to attendance by
Parliamentary staffers, minor party and
independent Members of Parliament.
The forum series was launched in February
and provided over 30 guests with a
deep dive into oil exploration and its
economic potential in South Australia with
a particular focus on the Great Australian
Bight. Speakers, including Norwegian Oil
company Equinor, busted popular myths
and explored what an oil discovery could
mean for South Australia.
A forward calendar of events will continue
throughout the coming year.
Jone Stangeland, Country Manager for Equinor
Australia, presents at Parliament House.
Image credit: TRY EA Brazil
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South Australian Chamber of Mines and Energy

JOINT ELECTRICITY PURCHASING GROUP
SACOME made history when it awarded an eight-year supply contract to
renewable energy retailer SIMEC ZEN Energy, part of Sanjeev Gupta’s GFG
Alliance, to significantly reduce the cost of electricity for members.
The contract, which came into effect on 1 July 2019, represented a successful outcome for
the bulk-buying consortium and was a significant step forward for this remarkable initiative.
The energy consortia provided market disruption at a time of escalating power prices and
unreliability and has underpinned the development of new renewable generation that will
benefit all South Australians.
Masterminded by SACOME, the ground-breaking deal highlights the benefits of
collaboration across sectors. SACOME’s consortia is providing benefits to all South
Australians across manufacturing, retail, agriculture and resources companies. The deal is
also responsible for fast-tracking the 220MW Cultana Solar Farm near Whyalla, which has
received development approval.
Joint Electricity Purchasing Group representatives; (L-R) Back row: Gavin McMahon, CIT; Nicholas Mumford,
MC²; Marc Barrington, SIMEC Energy; Michael Reis, Foodland; Paul Denton, IGA. Front row: Simon Kibble,
AdChem; Rebecca Knol, SACOME; Lachlan Wallace, Hillgrove. Absent – Jason Rees, Viterra.
Annual Report 2019 9

SACOME ADVOCACY
Joy Baluch Bridge
SACOME, in collaboration with RAA and SAFC, was successful in advocating for the
duplication of the Joy Baluch Bridge securing $200 million of State and Federal funding. The
funding will address the key infrastructure bottleneck at Port Augusta and is scheduled to be
completed in 2021.
Eyre Peninsula Transmission Line
SACOME successfully advocated for the South Australian Government to allocate funding
for the upgrade of electricity transmission infrastructure to enable development of resources
projects on the Eyre Peninsula, Yorke Peninsula and in the Far North of the State and
welcomed $240 million funding for a new transmission line for the Eyre Peninsula, which was
approved by the Australian Energy Regulator.
Accelerated Discovery Initiative
SACOME was successful in advocating for the reinstatement of exploration incentives in
South Australia. A $10 million ‘Accelerated Discovery Initiative’ was announced by the South
Australian Government in June.
Having consistently advocated for a Mineral Exploration Incentive to bring South Australia
back to relative parity with other states, SACOME recognised the investment as crucial to
securing South Australia’s resources pipeline.
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South Australian Chamber of Mines and Energy

SACOME CODE OF CONDUCT
The South Australian Chamber
of Mines and Energy (SACOME)
launched a Code of Conduct to
drive continuous improvement
in the South Australian
resources sector.
SACOME’s voluntary Code of
Conduct has been adopted from
the Minerals Council of Australia’s
Enduring Value framework for
sustainable development and
provides a structure for mining, oil
and gas companies to demonstrate
commitment to sustainable
development.
Rebecca Knol, CEO SACOME & Matt Reed, Chief
Operating Officer, SIMEC Mining
By adopting this Code of Conduct, resource companies can improve their practices in areas
such as ethical governance, sound risk management and transparent engagement, health
and safety, employee rights, community development and environmental management.
SIMEC Mining – a part of the GFG Alliance - was the first signatory to the Code, leading the
way for mining, oil and gas companies across the State.
Annual Report 2019 11

COMMITTEES
SACOME’s industry committees provide vehicles for consultation, feedback and
assistance in guiding SACOME’s policy work and advocacy priorities.
SACOME’s committees are:
Mining & Extractives
Committee
Infrastructure Committee
Petroleum Committee
Legislation & Regulation
Committee
Exploration Committee
Economics & Tax Committee
Energy Committee
External Affairs Committee
This committee structure continues to reflect the restructuring undertaken in September
2017, with the addition of a dedicated External Affairs committee in 2018.
Industry committees assist SACOME to:
• Identify and address priority issues for the resources sector;
• Encourage and advocate for the improvement and development of the sector;
• Prepare submissions to Government departments, institutions and statutory bodies;
• Influence and work with the relevant Government departments to advance the sector;
• Identify and promote ‘leading practice’ strategies; and
• Provide a forum for the exchange of relevant information and resources.
Committee members’ expertise and technical understanding materially informs SACOME’s
policy agenda and is invaluable in ensuring the views of the South Australian resources
sector are accurately represented.
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South Australian Chamber of Mines and Energy

COMMITTEE SURVEY
The 2018 Committee member survey was conducted to provide SACOME with feedback on
the effectiveness of the committee platform.
The positive response from survey respondents supports the work undertaken in 2017 and
2018 to restructure and refocus industry Committees; and that they are operating in a way
that is both relevant and useful to members.
Highlights included;
• 80% of respondents believe the meetings contain the expertise, experience and diversity
to make them effective.
• 89% of respondents believe adequate information is provided in the right format and at
the right time to inform decisions.
• 90% of respondents believe SACOME delivers on commitments it makes to committee
members.
• 77% of respondents believe committee meetings are valuable to them or their company.
The committees contain an appropriate range of expertise, experience and
diversity to make them effective.
Answered: 44 Skipped: 0
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Annual Report 2019 13

POLICY SUBMISSIONS
Resources 2030 Taskforce Submission
Productive Economy submission to the
State Planning Commission
National Energy Guarantee Draft
Detailed Design Consultation Paper
Draft Fair Trading (Mining and
Resources Industry Land Access
Resolution Code) Regulations 2018
South Australian Energy Transformation
- RIT-T Project Assessment Draft
Report & Submission
Managing Our Landscapes – Natural
Resources Management Reforms
submission to the Government of
South Australia
State Pre-Budget Submission 2018-19
SACOME Submission to the draft
Radiation and Protection and Control
Act 1982
The Economic and Finance Committee
– Investment Attraction Policies.
Princes Highway Corridor Strategy
Review of Rail Guidelines – Tarcoola
Darwin
State Skilled Migration list
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South Australian Chamber of Mines and Energy

MEMBERSHIP SURVEY
The 2018 member survey was conducted to provide SACOME with a more
accurate picture of how members feel about the way SACOME operates and
communicates.
Our communication over the last year has been well received and 89% of members are
either satisfied or very satisfied by the quality of information communicated.
81% of members felt that SACOME networking opportunities are appropriate to their
organisation’s need.
Overall, the survey demonstrated 81% of members are satisfied or very satisfied with
SACOME. This is a 14% rise on 2017 when 67% of members were satisfied or very satisfied.
70%
60%
50%
40%
30%
20%
10%
Overall satisfaction with SACOME
0%
Very satisfied Satisfied Neutral Unsatisfied Very unsatisfied
2017 2018
Annual Report 2019 15

SACOME EVENTS
Flagship Events
AGM Lunch
In November 2018 SACOME
further refined the AGM lunch to
provide a platform for members
to hear from a transformational
industry leader. SACOME members
and guests were treated to an
opening address from The Minister
for Resources and Northern
Australia Senator, the Hon
Matthew Canavan, followed by
the opportunity to hear Sanjeev
Gupta, Executive Chairman of GFG
Alliance, speak about the future of
industrialisation.
Resources Sector Dinner
On 22 May 2019, over 250 industry professionals came together for the SACOME Resources
Sector Dinner. Guests joined representatives from Australia’s leading resource sector
companies, service industries, Government Ministers and dignitaries for an evening of
networking, entertainment and business. SACOME CEO, Rebecca Knol, launched the 2024
Vision for the sector and guests heard from the Hon Dan van Holst Pellekaan MP and Hon
Stephan Knoll MP.
The audience was entertained and enlightened by a keynote presentation from futurist and
internationally renowned speaker Michael McQueen who decoded the millennial mind,
recognising that understanding and harnessing the enthusiasm and idealism of the next
generation will drive the resources sector into the future.
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South Australian Chamber of Mines and Energy

Breakfast Series
SACOME Event Series
SACOME hosted several breakfast events during the year, exploring topics such as the Great
Australian Bight, Petroleum development, energy and commodities.
Thought Leadership Series
SACOME’s Thought Leadership series went from strength to strength throughout 2018/19,
providing a fertile learning ground exclusive to members. Ideas and innovations were
explored through world class leaders in their field and provided extensive networking
opportunities for SACOME members. Topics included;
• Future directions for Part 9B
• Infrastructure SA
• Predictive Maintenance
• Commodity Pricing
• Stronger Partners, Stronger Futures
Annual Report 2019 17

SACOME EVENTS
SACOME Event Series
Annual sponsors and long-term members roof climb experience
SACOME’s Annual Sponsors and long-term members were treated to an Adelaide Oval roof
climb and exclusive breakfast in June to celebrate their support for South Australia’s peak
industry body.
Guests included;
• BHP
• Santos
• SIMEC Mining
• Finlaysons
• Cavpower
• Epic Energy
• Minotaur Exploration
• Alexander Symonds
• Heathgate Resources
• MSM Legal (formerly McDonald Steed
McGrath Lawyers)
• Beach Energy
• Senex Energy
• WSP | Parsons Brinckerhoff
• Iluka Resources
• PwC
• Bureau Veritas Minerals Pty
• OZ Minerals
• Terramin Australia
• Nyrstar
• FYFE
• Exact Contracting
• Alexander Symonds
• CU River Mining
• Petro Diamond Australia
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South Australian Chamber of Mines and Energy

Sponsored Events
In addition to SACOME’s event series, SACOME provided support to a number of
events strategically aligned to SACOME’s priorities and principals.
South Australian Mines Rescue
Competition
SACOME continues its support for
the South Australian Mines & Rescue
Competition, which was held in April
2019 at Prominent Hill. The competition
provides friendly rivalry for mining
emergency response teams, but more
importantly an opportunity to practice
emergency response skills in a safe but
realistic environment.
Global Maintenance Upper Spencer Gulf (GMUSG) Conference
SACOME was a premier sponsor of the 14th GMUSG Conference & Trade Expo in August
2018. The sell-out event at Port Augusta set a historical benchmark as arguably the largest
regional industry event in South Australia, with 520 delegates coming together to hear from
an impressive line-up of industry experts.
Export Awards
SACOME was a sponsor of the
prestigious Minerals, Energy and
Related Services Award at the
Business SA Export Awards in
October 2018. Winner of the award,
FCT International, was recognised
for being a world-leading burner
supplier operating within the iron ore,
cement, lime, pulp and paper, and
mineral processing industries and
received a one-year complimentary
SACOME membership.
Rebecca Knol, CEO SACOME with representatives from
FCT International at the Business SA 2018 Export Awards
Annual Report 2019 19

SACOME EVENTS
On the public stage
SACOME’s share of voice was heard on a national stage with SACOME CEO
Rebecca Knol presenting at a number of high-profile conferences over the
2018-19 period.
These speeches reached over 3,500 people, covering eight different sectors and provided
SACOME the opportunity to spread key messages and highlight issues for the sector.
Events included;
• Large Format Retail Association Forum,
Sydney
• Global Maintenance Upper Spencer
Gulf (GMUSG) Annual Conference,
Port Augusta
• Business SA Export Awards, Adelaide
• LGA Conference, Adelaide
• SAFC and International Cargo Handling
Coordination Association, Adelaide
• SA Explorers & Mining Conference,
Adelaide
• South Australian Resources & Energy
Investment Conference, Adelaide
• CEDA, Adelaide
• Associations Forum, Adelaide
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South Australian Chamber of Mines and Energy

MEMBER COMMUNICATIONS
SACOME’s communication channels are designed to provide timely, clear and relevant
information to our membership. SACOME has responded to feedback and has refined the
channels to offer further value to members.
1. Front & Centre: Monthly eNews letter summarising SACOME policy priorities,
submissions, events, news, media and industry updates
2. SACOMember News: Monthly summary of ASX and major announcements from
members, providing an overview of developments within the South Australian resources
sector
3. SACOMedia: Media Releases
4. SACOMEvent: Event invitations
5. SACOMeAlert: Important sector announcements
6. SACOME Vantage: Publication of opinion pieces
Annual Report 2019 21

FINANCIAL ASSURANCE
SACOME Policy Position
PUBLICATIONS
Mental Health pocket guide
In recognition of the importance
of healthy workforces and in
collaboration with Minerals Council
of Australia, SACOME has published
a ‘Make a Difference Pocket Guide’
to complement the previously
published Blueprint for Mental
Health and Wellbeing.
Together these documents provide
a framework to promote wellbeing
and reduce risks and impacts of
mental illness in the workplace.
The pocket guide provides simple
strategies in a user-friendly format.
Information guides
SACOME has launched a
series of information guides
to provide members and the
general public with knowledge
on specific issues in the South
Australian Resources Sector.
Published information includes;
• Oil Exploration in the
Great Australian Bight
• Statutes Amendment
(Mineral Resources) Bill 2018
• Mine Closure
May, 2019
Oil exploration in the Great Australian Bight
HIGHLIGHTS
3,800 $71.5M 370 km 2,000 +
Wells drilled Received in Proposed drilling Potential jobs
in Australia Petroleum Royalties distance from South created from successful
in 2016/17 Australian shore oil exploration
BACKGROUND
The Great Australian Bight is an area which has been continuously and actively worked by the
oil and gas industry since the early 1970s. A Norwegian energy company, Equinor, is planning
to drill the 14th exploration well in the Great Australian Bight, nearly 400kms offshore from
Ceduna and further offshore than any previous well.
SOUTH AUSTRALIAN CONTEXT
Mine Closure
BACKGROUND
More than 59,000 offshore oil and gas wells have been drilled around the
world, with more than 3,800 of those in Australia and 13 in the Great
Australian Bight.
South Australia currently has over 150 oil tankers that sail into Adelaide each
year through the Great Australian Bight and the risks associated with shipping
and unloading oil in this marine environment are managed on a daily basis.
Although Australia continues to invest in renewable energy, Australians use
three times more oil than is produced in Australia. Production is dwindling, but
Australians will continue to rely on oil in the coming decades.
BENEFITS OF OIL EXPLORATION
Successful oil exploration in the Great Australian Bight could see the
$7 BILLION
creation of more than 2,000 jobs in South Australia and generate
Revenue tax
over $7 billion in average annual tax revenue to Federal and State
governments over the next four decades.
5,000
The indirect benefits of the activity and the associated tax revenue
Indirect jobs
could see almost 5,000 jobs created across Australia in the period
between 2020 and 2060 (source: APPEA report).
“Our oil and gas industry funds our schools, hospitals and
infrastructure, it is essential we continue to explore“
Globa ly, there have been poor examples of mine closure. In What is mine closure?
South Australia, the Brukunga site was mined by the State After a mineral resource has been
until 1972. Closure planning was not undertaken during the economica ly exhausted, the mine
mine life, as was common at the time, and the site now moves into the final phase in its
constitutes an ongoing financial and environmental liability development cycle. This phase is
to South Australia. To mitigate generational risk, resources referred to as mine closure.
companies are now required to plan for closure. Mining However, planning for closure
companies understand mine closure is fundamental to begins at the concept planning
responsible mining. It is a critical factor for ongoing stage even before a mine is
community acceptance and future land access.
developed and is reevaluated at
each stage.
STAGES OF CLOSURE
Pre-mining Mining Post-mining Relinquishment
Closure planning in the
approval and design
process pre-mining
Activities to support mine
closure, such as
stockpiling topsoil, seed
co lection, landform
contouring occur
throughou the mine life
Closure activities post
mining - removal of
infrastructure, final
landforms and monitoring
CURRENT REGULATORY FRAMEWORK
After ongoing monitoring,
and closure activities,
relinquishment wi l occur.
Mine closure and rehabilitation in South Australia are currently regulated by the Department for
Energy & Mining (DEM) through the mining approvals process and subsequently through annual
Mining and Rehabilitation Compliance Reports (MARCR).
“Industry have proactively engaged with government to improve the
current mine closure regulations to improve outcomes for the South
Australian community”
June, 2019
A l companies are required to make financial provision for closure. Additiona ly, the South
Australian mining approval process requires payment of a security bond that reflects the estimated
rehabilitation costs. This bond is held by the government until mining and rehabilitation is
completed.
SACOME has recommended that the Department for Energy & Mining (DEM) consider adopting a
system where a fu l bond is not required from responsible operators but is retained for higher-risk
operators and projects. Where the fu l bond is required, SACOME recommends a mechanism to
refund the bond in stages as the mining operator carries out progressive rehabilitation.
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South Australian Chamber of Mines and Energy

MEDIA COVERAGE
Throughout 2018-19, SACOME’s key messages have received national media
coverage across print, radio and online.
SACOME has consistently been sought out as a commentator for breaking news, further
establishing its position as a thought leader in the South Australian resources sector.
Annual Report 2019 23

OPINION PIECES
SACOME published two opinion pieces throughout 2018/19. These articles were
published in newspapers, but also on the SACOME website as part of the SACOME
Vantage campaign.
Mining for Answers
There are two engine rooms in the State’s
economy – Resources & Agriculture. Combined
they contribute 83% of the States exports
and employ 65,900 people. Collectively, these
sectors fund our hospitals, schools and roads.
When farming and resources prosper, so to,
does the State.
Farmers and miners have co-existed since
the 1840s and by building on this strong
foundation of co-existence, we can continue
to thrive alongside each other into the future.
We have a state-wide economic imperative
to do so.
The State’s sovereign ownership of minerals
has deep historical context. The claim of the
Crown to minerals originates from the English
Case of Mines in 1567, and subsequently, a
widely held belief that mineral deposits are a
fortuitous `gift of nature’ with any net benefits
flowing from their exploitation belonging to
the community rather than to whoever
happens to own the surface rights. Changing
this right would place the State’s wealth in a
private purse.
These non-renewable resources are held in
trust by the governments of Australia who
have a mandate to ensure that they
are utilised efficiently and effectively
in the interests of those they have
been elected to represent. Royalties
flow to the State from mineral
developments and today, in South
Australia, the annual value of these
royalties is $237m.
As a result, the State, on behalf of
the people of South Australia, have
responsibility for determining access
to minerals for the best overall economic
outcome, and should continue to do so.
The Mining Act was last revised in 1971. It is
a 47-year-old piece of legislation, the oldest
Mining Act in the country and one that is
both out of date and overdue for reform. The
process of modernising the Act in consultation
with agriculture and mining commenced in
2017.
The South Australian Chamber of Mines and
Energy has consistently called for a structural
review of the Act commencing with an
independent comparative analysis of other
jurisdictions. We are always seeking to lift the
bar of industry and one of the best ways to
do this is to look at what others are doing.
Mining occurs all over the world and there are
many examples of legislation that are more
contemporary than ours.
We feel that by starting with a review of how
other States and countries have set up their
legislation, we can begin to update our Act
with one that is fit for South Australia today,
and one that reflects the changes of this
fast-growing, high tech industry.
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South Australian Chamber of Mines and Energy

The Great Debate
The Great Australian Bight is an area which
has been continuously and actively worked by
the oil and gas industry since the early 70s.
Equinor, a major international energy company,
is planning to drill the 14th exploration well
in the Great Australian Bight, nearly 400kms
offshore from Ceduna and further offshore
than any previous well in the Bight.
The reality is that although Australia continues
to invest in renewable energy, Australians will
continue to rely on oil in the coming decades
– and production is dwindling. Today, Australia
uses three times more oil than it produces.
It is essential that exploration for oil and gas
continues — and it is an advantage to do
so in countries like Australia that have strict
environmental and safety requirements.
Australia’s National Offshore Petroleum Safety
and Environmental Management Authority
(NOPSEMA) is responsible for the regulation of
safety and environmental management for all
exploration licence holders. Drilling will not be
authorised unless the regulator has approved
stringent environmental plans.
It is also important to remember the deep
history of this industry. South Australia has
always been deeply entwined in Australia’s oil
production past. The country’s first drilling to
produce oil was in the Coorong area in 1892.
In 1959 the first offshore seismic survey was
undertaken by GSI for Frome Lakes in the
Otway Basin.
Today, more than 59,000 oil and gas wells have
been drilled around the world, with more than
3,800 of those in Australia.
Australians have been living with and
benefiting from oil and gas activity in the
North West Shelf and Bass Strait for more than
50 years.
In addition, South Australia currently has over
150 oil tankers that sail into Adelaide each year
through the Great Australian Bight and the
risks associated with shipping and unloading
oil are managed on a daily basis.
The exploration proposed by Equinor is
located in an area where the conditions
are similar to those in the North Sea and
Norwegian Sea where Equinor has operated
safely for decades.
Tourism and fishing industries have prospered
together in Scotland and along Norway’s
west coast, as they have done in Victoria
and Western Australia’s offshore oil and gas
regions. The resources sector recognises the
importance of protecting these vital industries
in South Australia.
Tolerance for financial risk and the potential
consequences are topics faced by every
business – from the biggest mining
companies to the smallest service providers.
While financial risk tolerances vary, resource
companies share a very low tolerance for
operational and environmental risk, coupled
with high safety standards. Indeed, Australia’s
resources sector has some of the highest
standards in the world when it comes to
safeguarding our natural environment.
The South Australian Chamber of Mines and
Energy applauds Equinor’s transparency and
dedication to community consultation. The
early release of their draft environmental plan
to the community prior to finalisation and
submission to NOPSEMA sets a new standard
in transparency and acknowledges the intense
public interest in their proposal.
Annual Report 2019 25

SPONSORSHIP
SACOME sponsorship is a member-only opportunity that enables strategic
engagement across the resources sector. It is financial recognition of the great
work that SACOME does, over and above membership.
Sponsorship provides smart brand positioning, aligning your company to South Australia’s
leading industry body representing the resources sector. SACOME offers annual and event
sponsorship; with both opportunities providing far-reaching brand exposure.
Premier
BHP’s Olympic Dam is one of the world’s largest ore
bodies with significant deposits of copper, gold, uranium
and silver. Employing around 3,500 people, the scale of
the Olympic Dam orebody means it is a cornerstone of
the resource industry and a multi-generational resource
for South Australia. Through significant investment in
infrastructure and with a move into the Southern Mine
Area, the Olympic Dam operation will underpin jobs
and economic development in South Australia and into
the future. In 2018, Olympic Dam celebrated 30 years of
production and 30 years of the mine’s host community of
Roxby Downs.
26
South Australian Chamber of Mines and Energy

Premier
Heathgate is an innovative mining and exploration
company committed to operational success,
environmental sustainability and growth. Its uranium
initiative at Beverley in the northern Flinders Ranges
is Australia’s first In-Situ Recovery (ISR) mine and is
recognised as among the world’s best. Heathgate is
proud of its 20-plus-year association with SACOME
and almost 30 years of continuing investment in
South Australia mining. More than 220 people
work for Heathgate at Beverley and its Adelaide
headquarters and, consistent with its commitment
to success and local sustainability, it maximises job
opportunities for Adnyamathanha people in the
northern Flinders Ranges. Heathgate is committed to
expanding its Australian mining operations beyond
uranium with a focus on energy and energy related
commodities.
Platinum
OZ Minerals is a copper-focused, global, modern
mining company based in South Australia. Listed on
the Australian Securities Exchange (ASX 100), it has a
healthy cash balance and no debt. OZ Minerals’ growth
strategy is focused on creating value for all stakeholders.
It owns and operates the copper-gold mine at Prominent
Hill and is developing one of Australia’s largest coppergold
resources at Carrapateena. The company also
has a pipeline of earn-in agreements with experienced
exploration companies in Australia and internationally. It
also has an operating mine and a significant pipeline of
development and exploration opportunities in the Carajás
and Gurupi provinces in Brazil.
Annual Report 2019 27

SPONSORSHIP
Silver
Finlaysons Lawyers is a long-term supporter of
SACOME and a leading full service commercial law
firm. With its head office in Adelaide, Finlaysons has
nationally-recognised Resources, Energy, Native Title
and Environment teams with in-depth knowledge and
specialist expertise in relation to the minerals and energy
sector in addition to strong networks throughout industry
and government.
Iluka Resources is an international mineral sands company
with expertise in exploration, mining, development,
processing, marketing and rehabilitation. The company
has operations in Western Australia, South Australia
and Sierra Leone. Iluka is the largest producer of zircon
globally and a major producer of titanium dioxide
feedstocks.
Copper
Fyfe is a national consultancy with over 35 years’
experience in engineering, environment, town planning
and surveying services across the property, infrastructure,
mining and energy sectors. We have 250 staff who work
with a wide array of clients across the length and breadth
of Australia. Our engineering, environmental planning
and surveying incorporate a high degree of ingenuity and
resourcefulness to accomplish the unique challenges that
surround each project.
28
South Australian Chamber of Mines and Energy

Copper
Exact Contracting is a leading Mining and Civil Earthworks
Contractor working across Australia. Based in South
Australia, where we provide most of our contract services
for significant mining projects at BHP Olympic Dam, Iluka
Resources at Jacinth Ambrosia, SIMEC at Whyalla, WPG
Resources at Tarcoola and CU River Mining at Cairn Hill near
Coober Pedy.
Alexander Symonds first made its mark on the Australian
surveying scene in 1932 and has since grown to become one
of the leading and longest serving surveying consultancies
in the country. We consult to a broad range of clients
across the public and private sectors, with our passionate
team bringing a depth of expertise to projects to offer
tailored solutions and ensure best practice principles are
implemented.
Graphite
Cu-River is one of two magnetite producers in SA, dedicated
to large-scale expansion of its resources in the Far North of
the State.
Petro Diamond is the #1 supplier of quality diesel and fuel
logistics services to the mining market in South Australia.
Annual Report 2019 29

FINANCIAL REPORT
For the year ended 30 June 2019
SACOME has maintained a focus on cost control returning a profit of $138,612 for the
financial year ended 30 June 2019.
The reduction in revenue is a result of attaining independence from Government funding
and sponsorship; a decline in revenue related to the Joint Electricity Purchasing Group
membership; and an offer of affordable networking and policy based opportunities to
members.
Consulting costs have reduced substantially as staff positions have been appointed following
the organisational restructure.
Total expenses have been substantially reduced as the organisation continues to streamline
its operations and staffing, whilst providing a low cost value based member proposition.
Profit and Loss Comparison
Profit and Loss FY19 FY18 % change
$ $
Membership Revenue 1,123,425 1,236,231 (9.1%)
Sponsorship Revenue 165,000 218,897 (24.6%)
Grant Revenue 0 229,085 (100.0%)
Other Revenue 185,980 218,912 (15.0%)
Total Revenue 1,474,405 1,903,125 (22.5%)
Employee Benefits (738,733) (564,572) (30.8%)
Consulting Costs (177,818) (531,797) 66.6%
Depreciation and Amortisation (14,457) (13,494) (7.1%)
Finance Costs (2,618) (3,478) 24.7%
Rental Expenses (123,918) (135,679) 8.7%
Other Expenses (278,249) (286,323) 2.8%
Total Expenses (1,335,793) (1,535,343) 13.0%
Profit for the year 138,612 367,782 (62.3%)
(Red %) = Unfavourable
Black % = Favourable
30
South Australian Chamber of Mines and Energy

Balance Sheet Comparison
• Total cash on hand is $1.062 million at 30 June 2019 as compared to $945k at the end of
30 June 2018.
• At the end of the financial year SACOME’s total equity has steadily increased from $740k
to $879k as a result of a successful net profit for the year.
• SACOME’s current asset ratio has also increased from 3.5 to 4.3, further consolidating
SACOME’s ability to be able to meet its future commitments.
Balance Sheet FY19 FY18 % change
$ $
Total Current Assets 1,128,808 1,044,873 8.0%
Total Non-Current Assets 17,744 25,851 (31.4%)
Total Assets 1,146,552 1,070,724 7.1%
Total Current Liabilities 253,162 319,836 20.8%
Total Non-Current Liabilities 14,253 10,363 (37.5%)
Total Liabilities 267,415 330,199 19.0%
Net Assets 879,137 740,525 18.7%
Total Equity 879,137 740,525 18.7%
Annual Report 2019 31

Annual Report 2019
Email: sacome@sacome.org.au
Printed on recycled paper
www.sacome.org.au