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2011MIneRalS CounCil of AustrAliA

AnnuAl r eport

2 2011 Annual Report – Minerals Council of Australia

Minerals industry key stats 2011 (ABARE)

Mining Industry M

ajor projects • vol 1 no 1 • October 2011 11

1Advanced minerals and energy projects October 2011

Potosilead, zinc & silver

Nundah Bank3rd Rail

rail line

LEGEND

proposed gas pipeline$0–100m$101–500m$501–1000m

>$1000m

Capital expenditure

Mine/platform

Processing facility

AdelaideAdelaide

HobartHobart

Brisbane

Canberra

Darwin

Melbourne

Sydney

Perth

capital city

Worsley Refinery Efficiency & Growth Project alumina

Extension Hill DSO iron ore

NWS North Rankin B LNG

Cape Lambertiron ore infrastructure

Gorgon LNG

Sino Iron Project iron ore

Yilgarn iron ore

Wilcherry Hilliron ore

Jimblebar iron ore

Macedon gas

Karara Project iron ore

Pluto LNG

Reindeer gas field,Devil Creek gas processing plant

Montara/Skua oil

Prelude floating LNG

Wheatstone LNG

Balnaves petroleumErnest Henryundergroundcopper

Boyne Island smelter aluminium

Goonyella to Abbot Point coal infrastructure

Dandenong Micro LNG plant

Kipper (stage 1) gas

Cadia East gold

Woods Point goldTurrum gas

Blackwater SystemPower Upgrade coal infrastructure

Rocklands to Kabra rail duplication coal infrastructureOaky Creek coal

Middlemount (stage 1) coalEnsham underground coal

Daunia coal

Broadmeadow coalBurton coal

Ulan West coal

Newcastle export terminal coal infrastructure

Metropolitan longwall coal

Kooragang Island ammoniaNCIG export terminal Stage 3

Kooragang island coal terminal expansions

Bengalla expansion stage 1 coal

Ravensworth North coalHunter Valley coal

Mt Arthur RX1 project coal

Yarwun alumina refinery expansionGladstone LNG Wiggins Island

coal terminal

Minimbah Bank third rail line

Wiggins Island rail projectQueensland Curtis Island Project LNG

Australia Pacific LNG

Hay Point Phase 3 coal infrastructure

Kestrel coalLake Vermont coal

Curragh coal

Western Australian iron ore infrastructure

Port 55 –155 Mtpairon ore infrastructure

Rail 55 –155 Mtpairon ore infrastructure

Chichester hub 95 iron ore

Nullagine goldSolomon Hub iron ore

Cosmo Deeps gold

Osborne copper

Lady Loretta lead, zinc & silver

Handlebar Hill lead, zinc & silver

Hope Downs 4 iron oreMarandoo iron ore

Moomba to Sydney gas pipeline

South West Queensland Pipeline (stages 2 and 3)gas pipeline Roma to Brisbane

gas pipeline

Wilpinjong coal

Rasp Minelead–zinc

BassGas(Yolla Mid Life Enhancement)

natural gas

Moranbah ammonium nitrateGSE 140 coal infrastructure

Argyle diamonds

Talc redesignnickelDeGrussa

copperMt Magnet gold

Duketon gold

HBJgold

Western Turner Syncline iron ore

Brockman 4 iron ore

Tropicana JointVenture Project gold

Ravensthorpe nickelSpotted Quoll nickel

Mt Marion lithium

Kanmantoo copper

Ankata copper

Dampier Port Expansioniron ore infrastructure

Coniston oil

George Fisherlead, zinc & silver

Caval Ridge/Peak Downsexpansion coal

Black Star Opencut Deeps lead, zinc & silver

GEMCO manganese ore

Newlands Northern Underground coal expansion

Koolyanobbing iron ore

Boggabri opencut coal Narrabri stage 2 coal

Mining Industry M

ajor projects • vol 1 no 1 • October 2011 11

1Advanced minerals and energy projects October 2011

Potosilead, zinc & silver

Nundah Bank3rd Rail

rail line

LEGEND

proposed gas pipeline$0–100m$101–500m$501–1000m

>$1000m

Capital expenditure

Mine/platform

Processing facility

AdelaideAdelaide

HobartHobart

Brisbane

Canberra

Darwin

Melbourne

Sydney

Perth

capital city

Worsley Refinery Efficiency & Growth Project alumina

Extension Hill DSO iron ore

NWS North Rankin B LNG

Cape Lambertiron ore infrastructure

Gorgon LNG

Sino Iron Project iron ore

Yilgarn iron ore

Wilcherry Hilliron ore

Jimblebar iron ore

Macedon gas

Karara Project iron ore

Pluto LNG

Reindeer gas field,Devil Creek gas processing plant

Montara/Skua oil

Prelude floating LNG

Wheatstone LNG

Balnaves petroleumErnest Henryundergroundcopper

Boyne Island smelter aluminium

Goonyella to Abbot Point coal infrastructure

Dandenong Micro LNG plant

Kipper (stage 1) gas

Cadia East gold

Woods Point goldTurrum gas

Blackwater SystemPower Upgrade coal infrastructure

Rocklands to Kabra rail duplication coal infrastructureOaky Creek coal

Middlemount (stage 1) coalEnsham underground coal

Daunia coal

Broadmeadow coalBurton coal

Ulan West coal

Newcastle export terminal coal infrastructure

Metropolitan longwall coal

Kooragang Island ammoniaNCIG export terminal Stage 3

Kooragang island coal terminal expansions

Bengalla expansion stage 1 coal

Ravensworth North coalHunter Valley coal

Mt Arthur RX1 project coal

Yarwun alumina refinery expansionGladstone LNG Wiggins Island

coal terminal

Minimbah Bank third rail line

Wiggins Island rail projectQueensland Curtis Island Project LNG

Australia Pacific LNG

Hay Point Phase 3 coal infrastructure

Kestrel coalLake Vermont coal

Curragh coal

Western Australian iron ore infrastructure

Port 55 –155 Mtpairon ore infrastructure

Rail 55 –155 Mtpairon ore infrastructure

Chichester hub 95 iron ore

Nullagine goldSolomon Hub iron ore

Cosmo Deeps gold

Osborne copper

Lady Loretta lead, zinc & silver

Handlebar Hill lead, zinc & silver

Hope Downs 4 iron oreMarandoo iron ore

Moomba to Sydney gas pipeline

South West Queensland Pipeline (stages 2 and 3)gas pipeline Roma to Brisbane

gas pipeline

Wilpinjong coal

Rasp Minelead–zinc

BassGas(Yolla Mid Life Enhancement)

natural gas

Moranbah ammonium nitrateGSE 140 coal infrastructure

Argyle diamonds

Talc redesignnickelDeGrussa

copperMt Magnet gold

Duketon gold

HBJgold

Western Turner Syncline iron ore

Brockman 4 iron ore

Tropicana JointVenture Project gold

Ravensthorpe nickelSpotted Quoll nickel

Mt Marion lithium

Kanmantoo copper

Ankata copper

Dampier Port Expansioniron ore infrastructure

Coniston oil

George Fisherlead, zinc & silver

Caval Ridge/Peak Downsexpansion coal

Black Star Opencut Deeps lead, zinc & silver

GEMCO manganese ore

Newlands Northern Underground coal expansion

Koolyanobbing iron ore

Boggabri opencut coal Narrabri stage 2 coal

16 Mining Industry Major projects • vol 1 no 1 • October 2011

Figure 6: Value of advanced projects by commodity, October 2011 $231.8 billion

Other 4%

Alumina 2%

Coal 6%

Iron ore 10%

Infrastructure 11%

Petroleum 67%

Figure 7: Value of advanced projects, by state and territory, October 2011 $231.8 billion

Northern Territory 0.2%

Tasmania 0.1%

South Australia 0.4%

Western Australia 63.6%

Queensland 29.6%

Victoria 2%

New South Wales 4%

16 Mining Industry Major projects • vol 1 no 1 • October 2011

Figure 6: Value of advanced projects by commodity, October 2011 $231.8 billion

Other 4%

Alumina 2%

Coal 6%

Iron ore 10%

Infrastructure 11%

Petroleum 67%

Figure 7: Value of advanced projects, by state and territory, October 2011 $231.8 billion

Northern Territory 0.2%

Tasmania 0.1%

South Australia 0.4%

Western Australia 63.6%

Queensland 29.6%

Victoria 2%

New South Wales 4%

32011 Annual Report – Minerals Council of Australia

2011 annual report

COnTenTS >>>

Minerals Operations ...................................................................................................................................... 04

What is the MCA .............................................................................................................................................. 06

Chairman’s review ........................................................................................................................................... 07

CEO’s review ....................................................................................................................................................... 09

Principal Achievements ............................................................................................................................... 12

Special Report: How big is Australia’s mining industry? ........................................................... 14

Safety and Health ............................................................................................................................................ 16

Production, Exports And Commodity Prices .................................................................................. 17

Investment And Exploration Expenditure ........................................................................................ 22

Employment, Workplace Arrangements And Skills ................................................................... 25

Environmental Performance .................................................................................................................... 27

Corporate Social Responsibility .............................................................................................................. 28

Industry Issues ................................................................................................................................................... 29

Progress On Infrastructure Projects ....................................................................................................... 34

Division Reports – Victoria Division ......................................................................................................36

Division Reports – Northern Territory Division ............................................................................. 37

Board of Directors ........................................................................................................................................... 38

Governance Structure and Secretariat chart ................................................................................. 40

MCA Committee list ...................................................................................................................................... 42

MCA Member Companies .......................................................................................................................... 43

Financial statements ....................................................................................................................................... 44


Minerals operations

TORRES STRAIT

CORAL SEA

Great

Reef

Barrier

Gulf

Carpentaria

TASMAN

SEA

BASS STRAIT

Great Australian Bight

INDIAN

OCEAN

TIMOR SEA

JosephBonaparte

Gulf

of

8o

120o

132o144

o

8o

16o

24o

32o

40o

108o

120o

132o 144o

156o

40o

32o

24o

16o

NORTHERN TERRITORY

WESTERN AUSTRALIAQUEENSLAND

NEW SOUTH WALES

VICTORIA

TASMANIA

SOUTH AUSTRALIA

ACT

INDONESIAPAPUA NEW

GUINEA

Mackay

Townsville

Cairns

Normanton

Alice Springs

Mount Isa

Kalgoorlie-Boulder

PERTH

Albany

Esperance

Carnarvon

Geraldton

Port Hedland

Broome

DARWIN

Oodnadatta

Ceduna

ADELAIDE

Mildura

Warrnambool

MELBOURNE

HOBART

CANBERRA

SYDNEY

Wollongong

Newcastle

Bourke

Tamworth

Port Macquarie

Grafton

BRISBANE

Longreach

Gladstone

Skal U

Lock Cbl

Angela U

D-Tree P

Kintyre U

Redtree U

Karara Fe

Stuart Osh

Bindoon Bx

Sequoia Fe

Merlin Dmd

Valhalla U

Rundle Osh

Aurukun Bx

Lake Way U

Wilgerup Fe

Eneabba Cbl

Thortonia P

Mount Gee U

Centipede U

Yeelirrie U

Weedina Cbl

Watershed WOobagooma U

Lady Jane P

Gum Flat Fe

Dandaragan P

Brolga Ni,Co

Southdown Fe

Bigrlyi U, V

Wintinna Cbl

Goulds Dam U

Lady Annie P

Junnagunna U

Merriland Au

Tropicana Au

Roper Bar Fe

Myrtle Zn, Pb

Merlin Mo, ReStarra Cu, Au

Hawks Nest FeBlue Hills Fe

Golf Bore Au

Agate Creek Au

Wiluna West Fe

Marsden Cu, Au

Crocker Well U

Witchelina Mgs

Giffen Well FeMount Karara Fe

Bennetts Well U

Monakoff Cu, Au

Sherrin Creek P

Abra Pb, Cu, Au

Young Nickel Ni

Wilgena Hill Fe

Rocklands Cu, Co

Murloocoppie Cbl

Irvine Island Fe

Wilcherry Hill Fe

Highland Plains P

Mount Dore Cu, Au

Wingellina Ni, Co

Speewah V, Fe, Ti

Yiddah Cu, Au, Mo

Marlborough Ni, Co

Minnamoolka Ni, Co

Kulwin Ilm, Rt, Zrn

Dargues Reef Au, Ag

Thursdays Gossan Cu

Duchess-Paradise Cbl

Mount Elliott Cu, Au

Cummins Range REE, U

Nolans Bore REE, U, P

Silver Hill Au, Ag, Cu

Tripitaka Zrn, Ilm, Rt

Babbling Brooke Hill P

Admiral Bay Zn, Pb, Ag

Nebo Babel Ni, Cu, PGE

Hera Au, Cu, Pb, Zn, Ag

Mount Lindsay Fe, W, Sn

Menninnie Dam Zn, Pb, Ag Syerston Ni, Co, Cr, PGE

Cyclone Zrn, Leu, Rt, Ilm

Snapper Rt, Zrn, Ilm, Leu

Panton PGE, Ni, Cu, Au, Cr

Mindarie Zrn, Rt, Ilm, Leu

Baal Gammon In, Cu, Sn, Ag

Kangiara Pb, Zn, Ag, Cu, Au

Chloe - Jackson Zn, Pb, Cu, Ag

Explorer 108 Zn, Pb, Au, Ag, CuLucky Break (Verde Tinto) Ni, Co

Phillipson Cbl

Lake Maitland U

Peculiar Knob Fe

Andersons Lode U

East Wintinna Cbl

Constance Range Fe

Maroochydore Cu, Co

Dugald River Zn, Pb, Ag

De Grussa Cu, Au, Ag

Hillside Cu, Au

Wonarah P

Cliffs Ni, Co

Mount Gibson FeFour Mile East U

Mount Cattlin Li, Ta

Douglas Rt, Ilm, Zrn

Kanmantoo Cu, Au, Ag

Mungana Zn, Cu, Ag, Au, Pb

Honeymoon U

Ely BxGove Bx

Cowal AuMuja Cbl

Henty Au

Weipa BxRanger U

Pardoo Fe

Callie Au

Cracow Au

Wiluna Au

Coyote Au

Huntly Bx

Yarrie Fe Sonoma Cbl

Redbank Cu

Duncan Cbl

Stawell Au

Tritton Cu

Meandu Cbl

Kara Fe, W

Dawson Cbl

Argyle Dmd

Canyon Cbl

Worsley Bx

Prospero Ni

Rocglen Cbl

Cowell Jade

Plutonic Au

Premier Cbl

Riverside Sn

Boggabri Cbl

Yallourn Cbr

Ewington Cbl

Anglesea CbrLoy Yang Cbr

White Dam Au

Mintabie Opl

Mud Tank Vrm

Baralaba Cbl

Jack Hills Fe

Challenger Au

Commodore Cbl

Koolanooka Fe

Willowdale Bx

Kimbolton Cbl

Rolleston Cbl

Andamooka Opl

Tarrawonga Cbl

Augusta Au, Sb

New Acland Cbl

Thuddungra Mgs

Bootu Creek Mn

Oraparinna Brt

Maddingley Cbr

Osborne Cu, Au

Renison Bell SnCullenswood Cbl

Mount Rawdon Au

Savage River Fe

Coober Pedy Opl

Kogan Creek Cbl

The Peak Au, CuWerris Creek Cbl

White Cliffs Opl

Plutonic East Au

Phosphate Hill P

Mount Fitton Tlc

Wilkie Creek Cbl

New Oakleigh Cbl

Dawson South Cbl

Collinsville Cbl

Frances Creek Fe

Hillgrove Au, Sb

Koolan Island Fe

Triple Chance Fel

Groote Eylandt Mn

Tallering Peak Fe

Capel Ilm, Zrn, Rt

Lake Macdonnell Gp

Century Zn, Pb, Ag

Cockatoo Island Fe

Hazelwood Mine Cbr

Cape Flattery Sisd

Jundee - Nimary Au

CSA Cu, Pb, Zn, Ag

Vera - Nancy Au, Ag

Balcooma Zn, Pb, Cu

Lightning Ridge Opl

Ginkgo Zrn, Rt, Ilm

Savannah Ni, Cu, Co

Argyle Alluvials Dmd

Eneabba Ilm, Zrn, Rt

Ludlow Ilm, Zrn, Leu

Port Gregory Grt, Ilm

Tiwi Zrn, Rt, Leu, Ilm

Tutunup South Zrn, Ilm

Mount Lyell Cu, Ag, Au

Charters Towers Au, Ag

Mount Garnet Zn, Cu, Ag

Endeavor Zn, Pb, Ag, Cu

Donald Ilm, Rt, Zrn, Leu

Angas Zn, Pb, Au, Ag, CuCapel North Ilm, Zrn, Rt

McArthur River Zn, Pb, Ag

Inverell - Glen Innes Cors

Rosebery Zn, Pb, Ag, Au, Cu

Cooljarloo Ilm, Zrn, Rt, Leu

Gingin Ilm, Rt, Zrn, Leu, Mnz

Gossan Hill Pb, Zn, Ag, Au, Cu

Jacinth - Ambrosia Zrn, Rt, Ilm

Dry River South Zn, Cu, Pb, Ag, Au

North Stradbroke Island Zrn, Rt, Ilm

Nifty Cu

Beverley U

Mammoth Cu

Callide Cbl

Narrabri Cbl

Sarsfield Au

Mount Isa Cu

Blackwood Cbl

Bronzewing Au

Telfer Au, Cu

Ellendale Dmd

Kunwarara Mgs

Tapinos Ni, Co

Fosterville Au

Mount Gordon Cu

Leigh Creek Cbl

Mount Wright Au

Beaconsfield Au

Kangaroo Flat Au

Ballarat East Au

Alec Mairs Ni, Co

Ravenswood Au, Ag

Three Springs Tlc

Mount Bischoff Sn

Boundary Hill Cbl

Boddington Au, Cu

Extension Hill Fe

Northparkes Cu, Au

Middleback Range Fe

Ernest Henry Cu, AuMount Isa Zn, Pb, Ag

Cairn Hill Cu, Au, Fe

Cannington Pb, Ag, Zn

Prominent Hill Cu, Au

Mount Keith Ni, Co, Cu

Broken Hill Zn, Pb, Ag

George Fisher Zn, Pb, Ag

Olympic Dam Cu, U, Au, Ag

Dardanup Ilm, Rt, Leu, Zrn

Greenbushes Ta, Li, Kln, Sn

The Pinnacles Pb, Zn, Ag, Au

Gwindinup North Zrn, Ilm, Rt

Que River Zn, Cu, Ag, Pb, Au

Williamstown Kln, Ky, Mica, Cy

Golden Grove Zn, Cu, Au, Ag, Pb

Waroona Shoreline Ilm, Zrn, Leu

Yoganup Shorelines Ilm, Zrn, Leu

Gwindinup South Ilm, Rt, Leu, Zrn

Coorumburra Ni, Co

AUSTRALIANOPERATING MINES

Gibb Ni

Agnew Au

Victor Ni

Darlot Au

Huntly Bx

Trident Au

Raleigh Au

Lawlers Au

Kundana Au

Worsley Bx

Wallaby Au

Burbanks Au

Prospero Ni

Long Ni, CuWestonia Au

Frogs Leg Au

Centenary Au

Cometvale Au

Brightstar Au

Lanfranchi Ni

Flying Fox Ni

Windarling Fe

White Foil Au

Wattle Dam Au

Paddington Au

Tapinos Ni, Co

Sunrise Dam Au

Lord Nelson Au

Mount Weld REE

Carosue Dam Au

Marvel Loch Au

Perseverance Au

Mariners Ni, Co

Gwalia Deeps Au

Norseman Au, Ag

Mount Jackson Fe

Koolyanobbing Fe

Mount Morgans Au

Jaguar Zn, Cu, Ag

Redross Ni, Co, Cu


Spotted Quoll Ni, Cu, Co


Super Pit Au

Otter - Juan Ni

Daisy Milano AuBullabulling Au

Perseverance Ni

Kanowna Belle Au

Alec Mairs Ni, Co

Boddington Au, Cu

Murrin Murrin Ni, Co

Ballarat Last Chance Au

Saint Ives - Kambalda Au

Yeelirrie U

Mulga Rock U

Thatcher Soak U

Lounge Lizard Ni

Goongarrie Ni, Co

Karara FeBlue Hills FeMount Karara Fe

Cliffs Ni, Co

Windimurra V, Fe, Rt, Ti

Maxwells AuSalt Creek Au

Perseverance Ni Thatcher Soak U

Mount Marion Li

Moolarben CblUlan Cbl

Wambo Cbl

Appin Cbl

Awaba CblMyuna Cbl

Austar Cbl

Ashton/Glendell/Newpac 1 Cbl

Tasman Cbl

Tahmoor Cbl

Duralie Cbl

Berrima Cbl NRE No1 Cbl

Charbon Cbl

Clarence Cbl

Cadia Au, Cu

Tallawang Fe

Baal Bone Cbl

Stratford Cbl

Mannering Cbl

Wilpinjong Cbl

Springvale Cbl

Dendrobium Cbl

Ridgeway Au, Cu

Oberon Fel, Mica

South Blakefield Cbl

United Cbl

Mount Arthur/Drayton Cbl

Liddell Cbl

Westside/Newstan Cbl

Bengalla Cbl

Pine Dale Cbl

Donaldson Cbl

Warkworth Cbl

Mandalong CblInvincible Cbl

Mount Owen Cbl

Rixs Creek Cbl

West Cliff Cbl

Bloomfield Cbl

Angus Place CblChain Valley Cbl

Metropolitan Cbl

Mount Thorley Cbl

West Wallsend Cbl

Ravensworth Narama/Hunter Valley Cbl

NRE Wongawilli Cbl

Camberwell/Glennies Creek Cbl

Muswellbrook 2 Cbl

Ravensworth West/Cumnock/Howick Cbl

Ravensworth East Cbl

Copper Hill Au, Cu

Syerston Ni, Co, Cr, PGE

Bowdens Ag, Zn, Pb

Lewis Ponds Cu, Au, Pb, Ag, Zn

McPhillamys Au, Cu

Southern Coalfield

Western CoalfieldNewcastleCoalfield

Hunter Coalfield

Wollongong

Mackay

Cook Cbl

Sonoma Cbl

Ensham Cbl

Dawson Cbl

Crinum Cbl

Saraji Cbl

Burton Cbl

Poitrel Cbl

Curragh Cbl

Minerva Cbl

Gregory CblKestrel Cbl

Foxleigh Cbl

Newlands Cbl

Baralaba Cbl

Clermont Cbl

Moorvale Cbl

Goonyella Cbl

Rolleston Cbl

Millennium Cbl

Oaky Creek Cbl

Blackwater Cbl

Peak Downs Cbl

Blair Athol Cbl

Middlemount Cbl

Norwich Park Cbl

Collinsville Cbl

Suttor Creek Cbl

Eastern Creek Cbl

Boundary Hill Cbl

Moranbah North Cbl

North Goonyella Cbl

Yarrabee Cbl

Hail Creek Cbl

Coppabella Cbl

Lake Vermont Cbl

Isaac Plains Cbl

German Creek Cbl

Lake Lindsay Cbl

Curragh North CblJellinbah East Cbl

Carborough Downs Cbl

German Creek East Cbl

South Walker Creek Cbl

Coorumburra Ni, CoMarlborough Ni, Co

LAMBERT CONFORMAL CONIC PROJECTIONCentral Meridian: 134o E Standard Parallels: 18o S, 36o S

Geocentric Datum of Australia

SCALE 1:10 000 0000 100 200 300 400 500 Kilometres

Compiled by M.B. Huleatt Cartography by G.A. Young It is recommended that this map be referred to as: Huleatt, M.B., 2010 Australian Operating Mines (1:10 000 000 scale map) Geoscience Australia, Canberra Geocat No 71229 ISBN: 978-1-921781-67-4 © Commonwealth of Australia (Geoscience Australia ) 2010 This material is released under the Creative Commons Attribution 3.0 Australia Licence . This work is copyright. Apart from any fair dealings for the purposes of study, research, criticism or review, as permitted under the Copyright Act, no part may be reproduced b y any process without written permission. Inquiries should be directed to the Communications Unit, Geoscience Australia, GPO Box 378, Canberra City, ACT, 2601 Geoscience Australia has tried to make the informat ion in this map as accurate as possible. However, Geoscience Australia does not guarantee that the information is totally accurate or complete. THEREFORE, YOU SHOULD NOT RELY SOLELY ON THIS INFORMATION WHEN MAKING A COMMERCIAL DECISION Published by Geoscience Australia, Department of Resources , Energy and Tourism, Canberra, Australia. Issued under the authority of the Federal Minister for Resources, Energy and Tourism. Geoscience Australia acknowledges the assistance provided by State and Northern Territory geoscience agencies in the preparation of this map Copies of this map may be downloaded from the Ge oscience Australia internet site at: http://www.ga.gov.au

OCTOBER 2010 (ELEVENTH EDITION)

This map shows Australian operating mines, deposits wheredevelopment has commenced or where a decision to mine hasbeen announced and selected mineral deposits. Closed mines ormines not currently operating are not shown. It illustrates broadlythe geographic distribution of mines and deposits, and the range ofselected commodities mined.

Nifty Cu

Pardoo Fe

Yarrie Fe

Wodgina Fe

HIYandi Fe

Nammuldi Fe

Paulsens Au

Marandoo Fe

Ant Hill Mn

BHPBYandi Fe

Jimblebar Fe

Orebody 23 Fe

Deepdale A Fe

Deepdale J Fe

Paraburdoo Fe

Orebody 18 FeHope Downs Fe

Orebody 25 Fe

Cloud Break Fe

West Angelas Fe

Eastern Range Fe

Woodie Woodie MnWhundo Cu, Zn, Ag

Whim Creek Cu, Zn

Christmas Creek Fe

Mount Tom Price Fe

Mining Area C Fe

Mount Whaleback Fe

Hardey Fe

Solomon FeRoy Hill FeMarillana Fe

Nullagine Fe

Abra Pb, Cu, Au

McPhee Creek Fe

Balla Balla V, Fe

Mount Nicholas Fe

Robertson Range FePrairie Downs Zn, Pb, Ag

Abydos Fe

Railway Fe

Yalleen Fe

Wonmunna Fe

Iron Valley Fe

Davidson Creek Fe

Boolgeeda Creek Fe

Brockman 4 Fe

Balmoral Central Fe

A

A

B

B

C

C

D

D

Kalgoorlie-Boulder

Developing mine

Operating mine

Mineral deposit

MAIN MINERALISED REGIONSBY PREDOMINANT AGE

Mainly Phanerozoic basin cover

Paleozoic to Mesozoic

Paleozoic (542-251 million years old)

Proterozoic to Paleozoic

Proterozoic (2500-542 million years old)

Archean to Proterozoic

Archean (>2500 million years old)

SYDNEY

Newcastle

MnMnzMoNi OplOshP PbPGERe REE Rt SbSisd SnTaTiTlcU VVrm W ZnZrn

COMMODITIESAgAuBrtBxCblCbrCoCorsCrCuCyDmdFeFelGpGrtIlmInJadeKlnKyLeuLiMgs

SilverGoldBariteBauxiteCoal (black)Coal (brown)CobaltCorundumChromiumCopperClayDiamondIronFeldsparGypsumGarnetIlmeniteIndiumJadeKaolinKyaniteLeucoxeneLithiumMagnesite

ManganeseMonaziteMolybdenumNickelOpalOil ShalePhosphorousLeadPlatinum Group ElementsRheniumRare Earth ElementsRutileAntimonySilica sandTinTantalumTitaniumTalcUraniumVanadiumVermiculiteTungstenZincZircon


Minerals operations

TORRES STRAIT

CORAL SEA

Great

Reef

Barrier

Gulf

Carpentaria

TASMAN

SEA

BASS STRAIT


INDIAN

OCEAN

TIMOR SEA

JosephBonaparte

Gulf

of

8o

120o

132o144

o

8o

16o

24o

32o

40o

108o

120o

132o 144o

156o

40o

32o

24o

16o

NORTHERN TERRITORY


NEW SOUTH WALES

VICTORIA

TASMANIA

SOUTH AUSTRALIA

ACT

INDONESIAPAPUA NEW

GUINEA

Mackay

Townsville

Cairns

Normanton

Alice Springs

Mount Isa

Kalgoorlie-Boulder

PERTH

Albany

Esperance

Carnarvon

Geraldton

Port Hedland

Broome

DARWIN

Oodnadatta

Ceduna

ADELAIDE

Mildura

Warrnambool

MELBOURNE

HOBART

CANBERRA

SYDNEY

Wollongong

Newcastle

Bourke

Tamworth

Port Macquarie

Grafton

BRISBANE

Longreach

Gladstone

Skal U

Lock Cbl

Angela U

D-Tree P

Kintyre U

Redtree U

Karara Fe

Stuart Osh

Bindoon Bx

Sequoia Fe

Merlin Dmd

Valhalla U

Rundle Osh

Aurukun Bx

Lake Way U

Wilgerup Fe

Eneabba Cbl

Thortonia P

Mount Gee U

Centipede U

Yeelirrie U

Weedina Cbl


Lady Jane P

Gum Flat Fe

Dandaragan P

Brolga Ni,Co

Southdown Fe

Bigrlyi U, V

Wintinna Cbl

Goulds Dam U

Lady Annie P

Junnagunna U

Merriland Au

Tropicana Au

Roper Bar Fe

Myrtle Zn, Pb



Golf Bore Au

Agate Creek Au

Wiluna West Fe

Marsden Cu, Au

Crocker Well U

Witchelina Mgs


Bennetts Well U

Monakoff Cu, Au

Sherrin Creek P

Abra Pb, Cu, Au

Young Nickel Ni

Wilgena Hill Fe

Rocklands Cu, Co

Murloocoppie Cbl

Irvine Island Fe

Wilcherry Hill Fe

Highland Plains P

Mount Dore Cu, Au

Wingellina Ni, Co

Speewah V, Fe, Ti

Yiddah Cu, Au, Mo

Marlborough Ni, Co

Minnamoolka Ni, Co

Kulwin Ilm, Rt, Zrn

Dargues Reef Au, Ag

Thursdays Gossan Cu





















Phillipson Cbl

Lake Maitland U

Peculiar Knob Fe

Andersons Lode U

East Wintinna Cbl

Constance Range Fe

Maroochydore Cu, Co



Hillside Cu, Au

Wonarah P

Cliffs Ni, Co






Honeymoon U

Ely BxGove Bx

Cowal AuMuja Cbl

Henty Au

Weipa BxRanger U

Pardoo Fe

Callie Au

Cracow Au

Wiluna Au

Coyote Au

Huntly Bx


Redbank Cu

Duncan Cbl

Stawell Au

Tritton Cu

Meandu Cbl

Kara Fe, W

Dawson Cbl

Argyle Dmd

Canyon Cbl

Worsley Bx

Prospero Ni

Rocglen Cbl

Cowell Jade

Plutonic Au

Premier Cbl

Riverside Sn

Boggabri Cbl

Yallourn Cbr

Ewington Cbl


White Dam Au

Mintabie Opl

Mud Tank Vrm

Baralaba Cbl

Jack Hills Fe

Challenger Au

Commodore Cbl

Koolanooka Fe

Willowdale Bx

Kimbolton Cbl

Rolleston Cbl

Andamooka Opl

Tarrawonga Cbl

Augusta Au, Sb

New Acland Cbl

Thuddungra Mgs

Bootu Creek Mn

Oraparinna Brt

Maddingley Cbr

Osborne Cu, Au


Mount Rawdon Au

Savage River Fe

Coober Pedy Opl

Kogan Creek Cbl


White Cliffs Opl

Plutonic East Au

Phosphate Hill P

Mount Fitton Tlc

Wilkie Creek Cbl

New Oakleigh Cbl

Dawson South Cbl

Collinsville Cbl

Frances Creek Fe

Hillgrove Au, Sb

Koolan Island Fe

Triple Chance Fel

Groote Eylandt Mn

Tallering Peak Fe

Capel Ilm, Zrn, Rt

Lake Macdonnell Gp

Century Zn, Pb, Ag

Cockatoo Island Fe

Hazelwood Mine Cbr

Cape Flattery Sisd

Jundee - Nimary Au

CSA Cu, Pb, Zn, Ag

Vera - Nancy Au, Ag

Balcooma Zn, Pb, Cu

Lightning Ridge Opl

Ginkgo Zrn, Rt, Ilm

Savannah Ni, Cu, Co






















Nifty Cu

Beverley U

Mammoth Cu

Callide Cbl

Narrabri Cbl

Sarsfield Au

Mount Isa Cu

Blackwood Cbl

Bronzewing Au

Telfer Au, Cu

Ellendale Dmd

Kunwarara Mgs

Tapinos Ni, Co

Fosterville Au

Mount Gordon Cu

Leigh Creek Cbl

Mount Wright Au

Beaconsfield Au

Kangaroo Flat Au

Ballarat East Au

Alec Mairs Ni, Co

Ravenswood Au, Ag

Three Springs Tlc

Mount Bischoff Sn

Boundary Hill Cbl

Boddington Au, Cu

Extension Hill Fe

Northparkes Cu, Au

Middleback Range Fe



















Coorumburra Ni, Co


Gibb Ni

Agnew Au

Victor Ni

Darlot Au

Huntly Bx

Trident Au

Raleigh Au

Lawlers Au

Kundana Au

Worsley Bx

Wallaby Au

Burbanks Au

Prospero Ni


Frogs Leg Au

Centenary Au

Cometvale Au

Brightstar Au

Lanfranchi Ni

Flying Fox Ni

Windarling Fe

White Foil Au

Wattle Dam Au

Paddington Au

Tapinos Ni, Co

Sunrise Dam Au

Lord Nelson Au

Mount Weld REE

Carosue Dam Au

Marvel Loch Au

Perseverance Au

Mariners Ni, Co

Gwalia Deeps Au

Norseman Au, Ag

Mount Jackson Fe

Koolyanobbing Fe

Mount Morgans Au

Jaguar Zn, Cu, Ag

Redross Ni, Co, Cu




Super Pit Au

Otter - Juan Ni


Perseverance Ni

Kanowna Belle Au

Alec Mairs Ni, Co

Boddington Au, Cu




Yeelirrie U

Mulga Rock U

Thatcher Soak U

Lounge Lizard Ni

Goongarrie Ni, Co


Cliffs Ni, Co




Mount Marion Li


Wambo Cbl

Appin Cbl

Awaba CblMyuna Cbl

Austar Cbl


Tasman Cbl

Tahmoor Cbl

Duralie Cbl


Charbon Cbl

Clarence Cbl

Cadia Au, Cu

Tallawang Fe

Baal Bone Cbl

Stratford Cbl

Mannering Cbl

Wilpinjong Cbl

Springvale Cbl

Dendrobium Cbl

Ridgeway Au, Cu

Oberon Fel, Mica


United Cbl


Liddell Cbl


Bengalla Cbl

Pine Dale Cbl

Donaldson Cbl

Warkworth Cbl


Mount Owen Cbl

Rixs Creek Cbl

West Cliff Cbl

Bloomfield Cbl


Metropolitan Cbl

Mount Thorley Cbl

West Wallsend Cbl


NRE Wongawilli Cbl


Muswellbrook 2 Cbl



Copper Hill Au, Cu


Bowdens Ag, Zn, Pb


McPhillamys Au, Cu

Southern Coalfield


Hunter Coalfield

Wollongong

Mackay

Cook Cbl

Sonoma Cbl

Ensham Cbl

Dawson Cbl

Crinum Cbl

Saraji Cbl

Burton Cbl

Poitrel Cbl

Curragh Cbl

Minerva Cbl


Foxleigh Cbl

Newlands Cbl

Baralaba Cbl

Clermont Cbl

Moorvale Cbl

Goonyella Cbl

Rolleston Cbl

Millennium Cbl

Oaky Creek Cbl

Blackwater Cbl

Peak Downs Cbl

Blair Athol Cbl

Middlemount Cbl

Norwich Park Cbl

Collinsville Cbl

Suttor Creek Cbl

Eastern Creek Cbl

Boundary Hill Cbl

Moranbah North Cbl

North Goonyella Cbl

Yarrabee Cbl

Hail Creek Cbl

Coppabella Cbl

Lake Vermont Cbl

Isaac Plains Cbl

German Creek Cbl

Lake Lindsay Cbl












Nifty Cu

Pardoo Fe

Yarrie Fe

Wodgina Fe

HIYandi Fe

Nammuldi Fe

Paulsens Au

Marandoo Fe

Ant Hill Mn

BHPBYandi Fe

Jimblebar Fe

Orebody 23 Fe

Deepdale A Fe

Deepdale J Fe

Paraburdoo Fe


Orebody 25 Fe

Cloud Break Fe

West Angelas Fe

Eastern Range Fe


Whim Creek Cu, Zn

Christmas Creek Fe

Mount Tom Price Fe

Mining Area C Fe

Mount Whaleback Fe

Hardey Fe


Nullagine Fe

Abra Pb, Cu, Au

McPhee Creek Fe

Balla Balla V, Fe

Mount Nicholas Fe


Abydos Fe

Railway Fe

Yalleen Fe

Wonmunna Fe

Iron Valley Fe

Davidson Creek Fe

Boolgeeda Creek Fe

Brockman 4 Fe

Balmoral Central Fe

A

A

B

B

C

C

D

D

Kalgoorlie-Boulder

Developing mine

Operating mine

Mineral deposit









SYDNEY

Newcastle





TORRES STRAIT

CORAL SEA

Great

Reef

Barrier

Gulf

Carpentaria

TASMAN

SEA

BASS STRAIT


INDIAN

OCEAN

TIMOR SEA

JosephBonaparte

Gulf

of

8o

120o

132o144

o

8o

16o

24o

32o

40o

108o

120o

132o 144o

156o

40o

32o

24o

16o

NORTHERN TERRITORY


NEW SOUTH WALES

VICTORIA

TASMANIA

SOUTH AUSTRALIA

ACT

INDONESIAPAPUA NEW

GUINEA

Mackay

Townsville

Cairns

Normanton

Alice Springs

Mount Isa

Kalgoorlie-Boulder

PERTH

Albany

Esperance

Carnarvon

Geraldton

Port Hedland

Broome

DARWIN

Oodnadatta

Ceduna

ADELAIDE

Mildura

Warrnambool

MELBOURNE

HOBART

CANBERRA

SYDNEY

Wollongong

Newcastle

Bourke

Tamworth

Port Macquarie

Grafton

BRISBANE

Longreach

Gladstone

Skal U

Lock Cbl

Angela U

D-Tree P

Kintyre U

Redtree U

Karara Fe

Stuart Osh

Bindoon Bx

Sequoia Fe

Merlin Dmd

Valhalla U

Rundle Osh

Aurukun Bx

Lake Way U

Wilgerup Fe

Eneabba Cbl

Thortonia P

Mount Gee U

Centipede U

Yeelirrie U

Weedina Cbl


Lady Jane P

Gum Flat Fe

Dandaragan P

Brolga Ni,Co

Southdown Fe

Bigrlyi U, V

Wintinna Cbl

Goulds Dam U

Lady Annie P

Junnagunna U

Merriland Au

Tropicana Au

Roper Bar Fe

Myrtle Zn, Pb



Golf Bore Au

Agate Creek Au

Wiluna West Fe

Marsden Cu, Au

Crocker Well U

Witchelina Mgs


Bennetts Well U

Monakoff Cu, Au

Sherrin Creek P

Abra Pb, Cu, Au

Young Nickel Ni

Wilgena Hill Fe

Rocklands Cu, Co

Murloocoppie Cbl

Irvine Island Fe

Wilcherry Hill Fe

Highland Plains P

Mount Dore Cu, Au

Wingellina Ni, Co

Speewah V, Fe, Ti

Yiddah Cu, Au, Mo

Marlborough Ni, Co

Minnamoolka Ni, Co

Kulwin Ilm, Rt, Zrn

Dargues Reef Au, Ag

Thursdays Gossan Cu





















Phillipson Cbl

Lake Maitland U

Peculiar Knob Fe

Andersons Lode U

East Wintinna Cbl

Constance Range Fe

Maroochydore Cu, Co



Hillside Cu, Au

Wonarah P

Cliffs Ni, Co






Honeymoon U

Ely BxGove Bx

Cowal AuMuja Cbl

Henty Au

Weipa BxRanger U

Pardoo Fe

Callie Au

Cracow Au

Wiluna Au

Coyote Au

Huntly Bx


Redbank Cu

Duncan Cbl

Stawell Au

Tritton Cu

Meandu Cbl

Kara Fe, W

Dawson Cbl

Argyle Dmd

Canyon Cbl

Worsley Bx

Prospero Ni

Rocglen Cbl

Cowell Jade

Plutonic Au

Premier Cbl

Riverside Sn

Boggabri Cbl

Yallourn Cbr

Ewington Cbl


White Dam Au

Mintabie Opl

Mud Tank Vrm

Baralaba Cbl

Jack Hills Fe

Challenger Au

Commodore Cbl

Koolanooka Fe

Willowdale Bx

Kimbolton Cbl

Rolleston Cbl

Andamooka Opl

Tarrawonga Cbl

Augusta Au, Sb

New Acland Cbl

Thuddungra Mgs

Bootu Creek Mn

Oraparinna Brt

Maddingley Cbr

Osborne Cu, Au


Mount Rawdon Au

Savage River Fe

Coober Pedy Opl

Kogan Creek Cbl


White Cliffs Opl

Plutonic East Au

Phosphate Hill P

Mount Fitton Tlc

Wilkie Creek Cbl

New Oakleigh Cbl

Dawson South Cbl

Collinsville Cbl

Frances Creek Fe

Hillgrove Au, Sb

Koolan Island Fe

Triple Chance Fel

Groote Eylandt Mn

Tallering Peak Fe

Capel Ilm, Zrn, Rt

Lake Macdonnell Gp

Century Zn, Pb, Ag

Cockatoo Island Fe

Hazelwood Mine Cbr

Cape Flattery Sisd

Jundee - Nimary Au

CSA Cu, Pb, Zn, Ag

Vera - Nancy Au, Ag

Balcooma Zn, Pb, Cu

Lightning Ridge Opl

Ginkgo Zrn, Rt, Ilm

Savannah Ni, Cu, Co






















Nifty Cu

Beverley U

Mammoth Cu

Callide Cbl

Narrabri Cbl

Sarsfield Au

Mount Isa Cu

Blackwood Cbl

Bronzewing Au

Telfer Au, Cu

Ellendale Dmd

Kunwarara Mgs

Tapinos Ni, Co

Fosterville Au

Mount Gordon Cu

Leigh Creek Cbl

Mount Wright Au

Beaconsfield Au

Kangaroo Flat Au

Ballarat East Au

Alec Mairs Ni, Co

Ravenswood Au, Ag

Three Springs Tlc

Mount Bischoff Sn

Boundary Hill Cbl

Boddington Au, Cu

Extension Hill Fe

Northparkes Cu, Au

Middleback Range Fe



















Coorumburra Ni, Co


Gibb Ni

Agnew Au

Victor Ni

Darlot Au

Huntly Bx

Trident Au

Raleigh Au

Lawlers Au

Kundana Au

Worsley Bx

Wallaby Au

Burbanks Au

Prospero Ni


Frogs Leg Au

Centenary Au

Cometvale Au

Brightstar Au

Lanfranchi Ni

Flying Fox Ni

Windarling Fe

White Foil Au

Wattle Dam Au

Paddington Au

Tapinos Ni, Co

Sunrise Dam Au

Lord Nelson Au

Mount Weld REE

Carosue Dam Au

Marvel Loch Au

Perseverance Au

Mariners Ni, Co

Gwalia Deeps Au

Norseman Au, Ag

Mount Jackson Fe

Koolyanobbing Fe

Mount Morgans Au

Jaguar Zn, Cu, Ag

Redross Ni, Co, Cu




Super Pit Au

Otter - Juan Ni


Perseverance Ni

Kanowna Belle Au

Alec Mairs Ni, Co

Boddington Au, Cu




Yeelirrie U

Mulga Rock U

Thatcher Soak U

Lounge Lizard Ni

Goongarrie Ni, Co


Cliffs Ni, Co




Mount Marion Li


Wambo Cbl

Appin Cbl

Awaba CblMyuna Cbl

Austar Cbl


Tasman Cbl

Tahmoor Cbl

Duralie Cbl


Charbon Cbl

Clarence Cbl

Cadia Au, Cu

Tallawang Fe

Baal Bone Cbl

Stratford Cbl

Mannering Cbl

Wilpinjong Cbl

Springvale Cbl

Dendrobium Cbl

Ridgeway Au, Cu

Oberon Fel, Mica


United Cbl


Liddell Cbl


Bengalla Cbl

Pine Dale Cbl

Donaldson Cbl

Warkworth Cbl


Mount Owen Cbl

Rixs Creek Cbl

West Cliff Cbl

Bloomfield Cbl


Metropolitan Cbl

Mount Thorley Cbl

West Wallsend Cbl


NRE Wongawilli Cbl


Muswellbrook 2 Cbl



Copper Hill Au, Cu


Bowdens Ag, Zn, Pb


McPhillamys Au, Cu

Southern Coalfield


Hunter Coalfield

Wollongong

Mackay

Cook Cbl

Sonoma Cbl

Ensham Cbl

Dawson Cbl

Crinum Cbl

Saraji Cbl

Burton Cbl

Poitrel Cbl

Curragh Cbl

Minerva Cbl


Foxleigh Cbl

Newlands Cbl

Baralaba Cbl

Clermont Cbl

Moorvale Cbl

Goonyella Cbl

Rolleston Cbl

Millennium Cbl

Oaky Creek Cbl

Blackwater Cbl

Peak Downs Cbl

Blair Athol Cbl

Middlemount Cbl

Norwich Park Cbl

Collinsville Cbl

Suttor Creek Cbl

Eastern Creek Cbl

Boundary Hill Cbl

Moranbah North Cbl

North Goonyella Cbl

Yarrabee Cbl

Hail Creek Cbl

Coppabella Cbl

Lake Vermont Cbl

Isaac Plains Cbl

German Creek Cbl

Lake Lindsay Cbl












Nifty Cu

Pardoo Fe

Yarrie Fe

Wodgina Fe

HIYandi Fe

Nammuldi Fe

Paulsens Au

Marandoo Fe

Ant Hill Mn

BHPBYandi Fe

Jimblebar Fe

Orebody 23 Fe

Deepdale A Fe

Deepdale J Fe

Paraburdoo Fe


Orebody 25 Fe

Cloud Break Fe

West Angelas Fe

Eastern Range Fe


Whim Creek Cu, Zn

Christmas Creek Fe

Mount Tom Price Fe

Mining Area C Fe

Mount Whaleback Fe

Hardey Fe


Nullagine Fe

Abra Pb, Cu, Au

McPhee Creek Fe

Balla Balla V, Fe

Mount Nicholas Fe


Abydos Fe

Railway Fe

Yalleen Fe

Wonmunna Fe

Iron Valley Fe

Davidson Creek Fe

Boolgeeda Creek Fe

Brockman 4 Fe

Balmoral Central Fe

A

A

B

B

C

C

D

D

Kalgoorlie-Boulder

Developing mine

Operating mine

Mineral deposit









SYDNEY

Newcastle






What is the MCa

� a m a c r o - e c o n o m i c f r a m e w o r k conducive to global competitiveness and sustainable economic growth, which is characterised by low inflation, low interest rates and fiscal prudence;

� a sk i l led, product ive and f lex ible workforce;

� efficient export infrastructure;

� reconci l ing energy secur i t y with managing climate change as part of a sustainable global solution;

� a seamless and efficient Federation characterised by consistent regulation;

� access to competitive markets for capital, production inputs, human resources, and end products;

� a c c e s s to n a t u r a l re s o u rc e s a n d competitive markets for land, water and energy;

� a f a i r a n d s t a b l e s o c i e t y w h e r e effort is encouraged and rewarded, and support is extended to those in need;

� mutually beneficial relationships with Indigenous and local communities through engagement and capacity building; and

� improved environmental performance for a sustainable natural environment embracing longer term considerations for sustainable eco-systems beyond life of mine.

MCa MeMbeR COMPanIeS P R O d u C e M O R e

T h a n 8 5 P e R C e n T O f auSTRalIa’S annual MIneRal PROduCTIOn and OveR 90 PeR CenT Of auSTRalIa’S MIneRal exPORT eaRnIngS.

The industry the MCA represents is physi-cally, economically and socially significant by any measure. It is diverse geographically, structurally, and in the production and export of mineral products. The industry is innovative, technologically advanced, capital intensive, and environmentally and socially progressive.

The industry is profoundly integrated into the world’s capital, product, and human resource markets.

The MCA is, in essence, the corporate affairs division of the Australian minerals industry. It represents the minerals industry with a common purpose in:

� advocating pre-competitive or generic public policy for a socio-economic environment conducive to growth and prosperity;

� identifying and promoting leading operation principles; and

� engaging with opinion leaders and other stakeholders building a public presence that reflects the industry’s contribution to the sustainable economic benefit of all Australians.

The future of the Australian minerals industry is inseparable from the global pursuit of sustainable development. The industry is committed to contributing to the sustained growth and prosperity of current and future generations through the integration of economic progress, responsible social development and effective environmental management.

The MCA’s strategic objective is to advocate public policy and operational practice for a globally competitive industry that is safe, profitable, innovative and environmentally and socially responsible.

The MCA advocates consis tent and balanced policy settings for:

� an industry free of fatalities, injuries and diseases;

The MIneRalS COunCIl Of auSTRalIa’S MandaTe IS TO RePReSenT

auSTRalIa’S exPlORaTIOn, MInIng and MIneRalS PROCeSSIng InduSTRy, naTIOnally and InTeRnaTIOnally, In ITS COnTRIbuTIOn TO SuSTaInable develOPMenT and SOCIeTy.


ChairMan’s year in revieW

Since 2004-05 the resources boom has added about $250 bill ion to federal government coffers and over the same period, state governments have earned more than $30 billion from royalties.

This is why the Reserve Bank says there is a clear chain linking the mines of the Pilbara to the cafes of Sydney and Melbourne. Australians are benefitting from the mining boom.

In 2011, the MCA played a key role with other major business groups in pushing for a better-designed carbon tax.

While we were unable to convince the Government to improve the deeply flawed carbon tax, there is little doubt our efforts to identify the faults with the scheme embedded a broad public recognition that there is a better way to deal with the challenge of climate change.

The MCA was also instrumental in 2011 in ensuring the new Minerals Resource Rent Tax was implemented in line with the agreement struck in July 2010 following the bruising and highly public debate over the Resources Super Profits Tax.

a SuSTaIned SuRge In MInIng InveSTMenT and RelaTed

aCTIvIT y IS bOlSTeRIng The auSTRalIan eCOnOMy In The faCe Of COnTInuIng glObal eCOnOMIC unCeRTaInTy.

A recovery in minerals production and exports following severe f loods early in 2011 has underpinned the nation’s export performance with minerals exports (excluding oil and gas) reaching $154 billion in 2010-11. That is 52 per cent of Australia’s total exports.

Key commodity prices are down from levels reached in the September quarter 2011 and further easing is in prospect given the weaker global economic outlook. Costs are also rising dramatically in Australia.

This underscores the challenge for Australia to transition successfully from a period of price-led mining growth to an era of long-term volume growth. Realisation of the massive pipeline of mining projects in Australia on time and on budget is critical to this objective.

SafetyThe minerals industr y ’s number one value and commitment is the safety and health of its workforce, where everyone who goes to work in the industry returns home safely.

The minerals industry recorded seven fatalities in 2010-11 and two so far in 2011-12, each one a tragic reminder that more needs to be done to secure the industry’s goal of zero harm.

This is not an unrealistic goal. Ours is a hazardous industry but it does not have to be dangerous. We are committed to an industry free of fatalities, injuries and diseases.

TaxationFor much of the past 12 months, the industry has been forced to defend its contribution to Australia in the face of co-ordinated attacks from unions, green-aligned think tanks and some senior politicians.

Given that mining’s tax and loyalt y contribution this year is likely to exceed $30 billion after the introduction of the Minerals Resource Rent Tax and the Carbon tax, these attacks have been hard to fathom.


ChairMan’s year in revieW

Finally, I would like to take this opportunity to thank my fellow Board members, the state organisations and the Secretariat of the MCA for their work in 2011 in protecting the minerals industry from bad policy.

I look forward to 2012 being a year in which the industry continues to grow and prosper.

Peter Johnston Chairman

Challenges aheadRealising the opportunity of the mining boom and lif ting the speed limits of Australia’s economy at a time of global economic uncertainty should be the focus of all Governments in the years ahead.

Governments need to shift gears from “spreading the benefits” of the boom (through higher taxes, ad hoc spending and increased regulation) to tackling the real challenges of fiscal sustainability, productivity growth, expanding supply-side capacity and enhancing the economy’s structural flexibility.

Australia is at a crossroads when it comes to making the most of the mining boom with future gains far too reliant on past economic reforms.

G over nm ent s n e e d to d is c ard t h e complacent view that the benefits of the mining boom are “in the bag” while also rejecting false claims that the boom could be more a threat than an opportunity for Australia, coming at the expense of other parts of the economy.

The challenge in 2012 and beyond for Australia is to recharge the batteries of market-oriented economic reform and not wait for the traditional spur of economic crisis to provide the impulse.


Ceo’s revieW

countering the missives designed to discredit the industry’s standing in the wider community.

Fe w p u b l i c p o l i c y d e b ate s b e t te r characterise this shift in policy sentiment than the minerals resources rent tax (MRRT), the carbon tax and related climate change legislation, and the Fair Work Act.

The MRRT is a top-up tax to the existing company tax and royalties regime, and puts Australian mining at the Mount Everest of international tax rates. It is not tax reform. And this new tax is not necessary for Australians to be sharing in the benefits of the boom. In a fiercely competitive world, Australian mining must have a fair, competitive and stable taxation system.

The carbon tax and related “clean energy” initiatives amount to little more than a massive churn of taxation, compensation and infant industry assistance without any appreciable environmental dividends. The carbon tax – which looks like being about 300% higher than the European carbon price when it comes into effect in July 2012 – will have a greater negative impact on the domestic economy than official Treasury forecasts indicate.

The M I n I n g I n d u S T R y C O M P l e T e d a

ReMaRk able feaT In 2011. It continued to be the underlying strength to the Australian economy amidst rather hysterical claims it was simultaneously wrecking it. Remarkably, some senior commentators were describing the mining boom as Australia’s “biggest economic problem”, and that “the disadvantages out weighed the benef it s”. A senior bureaucrat even went as far as declaring that “… it is critical that society receives an appropriate return on the assets rather than the value being captured solely by Australian and foreign shareholders of the companies that sell the assets”.

I t was an e x t r aordinar y year to b e representing the Australian minerals industry in advocating public policy for the industry’s continued investment and growth in its contribution to sustainable development to the benefit of today’s and future generations of all Australians.

Extraordinary, because the shift in the direction of economic policy, with the Government’s fleet-of-foot fiscal stimulus package in response to the global financial crisis, proved not to be transient. It has given rise to a structural shif t in the

philosophical direction of the economic reform agenda. From the pro-market economic reforms of the past two and a half decades, the Government’s focus has decidedly and profoundly shifted to the redistributive, rather than the productive, side of the economy. From a commitment to fiscal conservatism, fiscal policy became expansionar y with the concomitant requirement for increased taxation. Investment in national capacity building gave material ground to consumption. And the externalisation, particularly to third party union intervention, of workplace arrangements is severely compromising direct relationships and the alignment of employee and employer interests.

Added to which is that the modus operandi of public policy development and advocacy has markedly changed in the last four years to a new paradigm of public contest through the popular media than rational considered and effective consultation and debate.

That the minerals industry has had to engage the community through the popular media with advertising campaigns is a marked shift in our advocacy approach, but vital in effectively representing the industry’s interests, and in particular,


Ceo’s revieW

new resources projects in Australia soared by 31 per cent – an unprecedented growth rate – while investment in machinery and equipment grew significantly by 20 per cent over the year.

Australia’s total resources exports now exceed all of our other export sectors combined. In 2010 -2011, Austra l ia ’s resources exports were close to $176 billion. Rural exports were $35 billion, merchandise exports were $40 billion and exports from the services sector was $50 billion.

There is incontrovertible evidence, and from a stream of respected economic commentators, that the benefits of the mining boom are f lowing throughout the economy, making a significant and substantial contribution to the social and economic welfare of all Australians.

Independent economic analysis for the MCA estimates that for the period of the so called “Boom Mark 1” [circa 2003-2008] of the increase in national revenue, two thirds was distributed across the economy and only a third went to company profits – and of that, just short of all of it – 98 per cent – is retained in the country, either paid as taxes or reinvested.

According the Reserve Bank, since the mining boom got underway the higher terms of trade has boosted GDP by around 15 per cent per annum compared with what would have been the case if the terms of trade had stayed at its long-term average levels.

In a February speech, the RBA’s Deputy Governor Phillip Lowe made it quite clear the benefits of the boom are already flowing through the community. Lowe said:

“There is a chain that links the investment boom in the Pilbara and in Queensland to the increase in spending at cafés and restaurants in Melbourne and Sydney. This chain starts with the high terms of trade that has pushed up the Australian dollar.”

The Fair Work Act has established a platform for the re-institutionalisation of union third party intervention in the workplace, creating the platform for wage and conditions demands predicated on a capacity-to-pay than mutual benefit founded in direct relationships and increas-ing productivity.

This shift in the direction of economic policy is overtly publicly justified in the politics of envy, underscored by claims of the dire consequences of a two speed economy, Australians are missing out on the benefits of the mining boom, manufacturing and other non-mining sectors are suffering severe disadvantage, and the encroachment on agricultural land and water resources is putting Australia’s rural environment and food security at irreversible risk.

None bears scrutiny.

T he mining boom has prov ided an enormous boost to the domestic economy over the past six years.

Since 2004-05 the resources boom has added about $250 bill ion to federal government coffers and over the same period, state governments have earned more than $30 billion from royalties.

In raw tax numbers, the industry is forecast to pay around $23 billion in taxes and royalties in 2010-11 – this is a 500% increase in company taxes and royalty payments from the $4 billion paid in 2003-04 in the year the boom started. And this is before the introduction of the world’s biggest carbon tax and the Minerals Resource Rent Tax, which will add another $6 billion to the industry’s tax bill, make Australian mining one of the highest taxed minerals industries in the world.

Taxes and royalties are just one part of the story of the mining sector’s contribution to all Australians quality of life.

These taxes and royalties – along with the export revenue, new jobs, GDP-boost and spin-off services industries make one thing very clear: Australians are getting a fair share – as they should – f rom the mining industry’s investment and entrepreneurial expertise in developing Australia’s natural resources.

Few contest that a sustained surge in mining investment and related activity is bolstering the Australian economy in the face of global economic uncertainty. With much of the rest of the world facing severe financial difficulties, construction work on


Ceo’s revieW

“In turn, the high dollar has meant that the prices that Australians pay for many manufactured goods are, on average, no higher than they were a decade ago, despite average household incomes having increased by more than 60 per cent over this period.”

Gary Banks, Chairman of the Productivity Commission, torpedoed the notion that the boom is more bad than good in his final speech for 2011:

“The notion that the mining boom is a ‘curse’ because it drives up exchange rates misses the point.”

“The mining boom involves sophisticated industries, whose discoveries and activities – and the buoyancy of export demand for those – have greatly increased the buying power of Australian consumers and industries and produced large income flows. As The Economist magazine has put it: “to refer to a vast, valuable energy resource as the source of a ‘disease’ sounds rather ungrateful”.

O f f ic ia l data re leased in December 2011 showed that economic growth in Australia’s big mining states - Western Australia and Queensland – was holding up the domestic economy.

And it is not just the mining States/Territory that benefit – the “non-mining” states and regions share in the benefits too as they wash through the economy.

Since the mining boom gathered steam, regional disparities in unemployment have f a l len in l in e wi th aggre gate unemployment.

While areas of disadvantage remain, as the economy has strengthened off the back of mining growth the regional distribution of unemployment has become more compressed – with a smaller proportion of regions experiencing high unemployment.

Compared with the late 1990s when less than 15 per cent of local regions had unemployment rates less than 5 per cent, by September 2010 the figure had risen to around half.

There is a bevy of such incontrovertible evidence that Australian’s are sharing in the benefits of the mining boom, that the pressures on some parts of the non-mining

sector are par t of the adjustment to global economic structural change, and that decades of pro-competitive open market economic reforms have been foundation to Australia’s remarkable and enduring economic growth and resilience to external shocks.

Notwithstanding, the Government ’s preoccupation with carving up the pie rather than building it, is an economy that is prospectively structurally weak and its industries more vulnerable to competitive pressures and external shocks than would otherwise be the case.

T he pre disp osi t ion to government intervention in the market is structurally manifest in higher levels of regulation in project approvals and environmental protection processes, (including sof t regulation, eg. local content provisions) without ef f iciency and ef fectiveness dividends to justify correcting “market failure”.

The decline in Australia’s productivity performance is structural, as indicated by the persistence of a marked slowdown in labour and multi-factor productivity growth rates and entrenched underlying causes.

Inf lationar y costs pressures are also structural, reflecting the underlying cost escalators in energy, labour, construction, and transport. The carbon tax is principal among them. This is a massive $120 billion impost on business that our competitors don’t face, to redistribute as compensation to some to offset the very changes it is designed for, and that it will not reduce global GHG’s, nor position Australia to be competitive in a carbon constrained world.

The Commonwealth budget is in structural deficit – the medium-term fiscal policy settings put expenditure ahead of revenue.

Capacity constraints in social and physical infrastructure and skilled labour similarly show no signs of cyclical abatement.

Structural deficits in remote and regional social infrastructure is emphasising external workforces and underscoring local com-munity decline and social tensions.

The structural re-institutionalisation of third party direct involvement in workplace arrangements is compromising direct relationships between employer and employee, f lexibility and choice in the workplace. The Federal Government’s Fair Work Act contains substantial flaws, principally restrictions on legitimate individual agreements, expanded scope of subject matter in agreements beyond those directly relevant to employment arrangements, increased union right of entry and broader than necessary Good Faith Bargaining rules.

And, an emerging structural deficit in social licence to operate is giving rise to increasing restrictions on land access, increasing delays, stringencies and costs on project approvals.

The policy imperative for the minerals resources sector in 2012, will I fear, be more of the 2011 experience. Rather than developing policies and initiatives for a socio-economic environment conducive to building and improving the industry’s socio-economic contribution to Australia, unless there is a profound change in the Government’s economic policy agenda, we will be fighting just to maintain the status quo.

In conclusion, I can repor t that the work of the Secretariat team in 2011 was exceptional – the product of highly skilled and committed professionals unreservedly supported and directed by the Board of Directors and the Full Council, with special recognition and appreciation of the wise counsel and camaraderie of the Chairman.

Mitchell H. Hooke Chief Executive Officer


prinCipal aChieveMents

� Responding effectively to claims that the mining boom is failing to deliver economy-wide benefits, including to domestic industry and suppliers;

� Co-sponsored with Government the National Apprenticeship Program (NAP) for 1,000 advanced entry adult apprentices;

� S u c c e s s f u l l y t r a i n e d a g ro u p o f Indigenous Australians in the Northern Territory and placed them with member companies;

WhIle W e W e R e u n a b l e T O

COnvInCe The gOveRnMenT TO IMPROve The deePly flaWed CaRbOn Tax, there is lit tle doubt our ef forts to identify the faults with the scheme embedded a broad public recognition that there is a better way to price carbon in a suite of measures aimed at managing the challenge of climate change.

The MCA was also instrumental in 2011 in ensuring the new Minerals Resource Rent Tax (MRRT) was drafted in line with the agreement struck in July 2010 following the bruising and highly public debate over the RSPT. The MRRT passed the House of Representatives in November and will move throught the Senate in early 2012.

While these two issues understandably dominated the MCA’s agenda, the Council was also instrumental in positively position-ing the industry and delivering strong outcomes across a range of economic, social and environmental issues, notably:

� Sustained advocacy on the benefits of market-oriented economic reform and on the dangers from interventionist approaches to (perceived) economic challenges under the guise of the so-called “patchwork economy”;

� Putting paid to erroneous claims about the industr y ’s tax contr ibution to governments with the release of the first annual tax collection data report outlining the tax take from the minerals industry in recent years;

2011 WaS anOTheR SIgnIfICanT yeaR fOR The MCa.


prinCipal aChieveMents

� Consol idated a nat ional industr y p o s i t i o n o n f l y - i n f l y - o u t ( F I F O ) work arrangements for advocacy to Governments;

� Cont inued progress towards the adoption of a nationally consistent work health and safety framework;

� Developed and released the Minerals I n d u s t r y I n d i g e n o u s E c o n o m i c Development Strategy;

� Implemented a nationally consistent water accounting framework;

� Challenged attempts to introduce stifling shipping rules in Australia, modified the Australian Government’s adverse provisional position, and placed the need for a more rigorous scientific approach on the international agenda;

� Undertook a thorough review of red tape reform in Victoria that demonstrated the growth in legislation and exceedingly poor implementation of reforms to reduce the burden on the minerals industry;

� Increased co-ordination with other industry partners on issues of mutual and national significance in economic, environmental, labour and transport affairs leading the development of whole-of-industry advocacy on National

Issues. This specifically, in the preparation of over 30 comprehensive Submissions engaging the endorsement of State organisations and, where appropriate, Commodity Councils.


speCial report: hoW big is australia’s Mining industry?

producing offshore. Mining service industry growth has been customer-driven and public policy has not played an important role. The success of mining ser vices reflects the demand of mining itself for competitive inputs if it is to compete in world markets.

While the construction side of mining ser v ices wi l l de c l ine when mining investment peaks, mining output will rise and boost mining service firms involved in contract mining and maintenance. There are 122 firms listed on the Australian Securities Exchange (ASX) with substantial mining service revenue of $86 billion in 2010-11 and with expected revenue growth

By Dr Ed Shann

TReaSuRy a n d T h e

ReSeRve bank Of auSTRalIa uSe dIffeRenT MeThOdOlO -gIeS TO PROduCe RadICally dIffeRenT eSTIMaTeS Of The SIze Of MInIng and RelaTed SeCTORS. The Reserve Bank estimate is clearly too low, as it excludes mining output for the domestic market and mining service exports and investment. Treasury estimates that the mining sector, including metals manufacturing, will account for 12.3% of total Australian real output in 2011-12 and is similar in size to the decade to 2002-03. While iron ore and coal output rose strongly in the last decade, oil output declined.

T he s t ronges t grow th has b e en in mining-related production, which covers manufacturing, construction and service firms that contribute to mining output and investment. Referred to here as mining services, this sector has doubled from 4% of output in the decade to 2002-03 to an expected 8.4% in 2011-12. Mining services output is growing rapidly at 15 to 20% a year and Treasury estimates that on the

back of the mining investment boom it will expand from 6.7% of the economy in 2010-11 to 9.4% in 2012-13. Yet some commentators continue to think of the mining sector as relatively small.

On Budget forecasts, Treasury concludes that over the three years to 2012-13 the mining sector will grow annually at 5% and mining-related sectors at over 20% on the back of the investment boom. By contrast, the non-mining sectors comprise 75% of the economy, but are growing annually at only 1%.

Mining companies demand high quality competitive inputs. This has created many leading edge mining service firms that invest in research and development, enabling them to export and compete of fshore. The rapid growth in mining services ref lects the surge in mining investment, increased contracting out to specialist providers by mining firms and the growth of sizeable Australian mining service firms that are diversifying internationally by both exporting and

MInIng and RelaTed SeCTORS aRe bIggeR Than

yOu ThInk


speCial report: hoW big is australia’s Mining industry?

of 17% in 2011-12 based on sharebroker forecasts. These firms are growing rapidly and 20 of the top 150 ASX firms by market capitalisation have substantial mining service revenue. On one estimate, they generate export revenue of around $9 billion.

Because these firms are not identified as a sector by the Australian Bureau of Statistics or the ASX, their importance and rapid growth is often overlooked. They represent a cluster of internationally competitive Australian firms in construc-tion, engineering, drilling, manufacturing, logistics and services that produce often high technology products and high value added services.

In conventional treatment the expanding mining sector is associated with a contrac-tion in existing tradeable industries like manufacturing and agriculture, while the non-tradeable services sector also expands. Yet the rapid growth in mining services currently underway generates increased demand in several manufacturing sub-sectors. Explosives is recorded in chemicals; rail wagons in transport equipment; high technology mining equipment for

drilling and excavation in machinery and equipment manufacturing; fabrication in metal manufacturing; and off-site homes in prefabricated building manufacturing. Just the listed firms in these industries have revenue of $15.5 billion, though not all is produced in Australia.

So some manufacturers benefit from the mining boom, even if others are squeezed by the higher Australian dollar. Substantial parts of construction, transport and power are also mining-related and some firms do better than the sector average by tapping into the mining boom. Irrespective of the ownership of mining companies, nearly two thirds of mining revenue is spent on labour, goods and service inputs, tax and

royalties, while mining profits are being used at present to finance additional investment.

Dr Ed Shann worked in the Departments of the Treasury and Prime Minister and Cabinet in the 1970s and 1980s and was a Director of Access Economics in the 1990s. His PhD from Cambridge was on “The effects of a mining boom”. This piece was from an MCA policy monograph entitled: Maximising growth in a mining boom.


safety and health

The MIneRalS InduSTRy R e C O R d e d S e v e n

faTalITIeS In 2010-11 and TWO SO faR In 2011-12, each one a tragic reminder that more needs to be done to secure the industry’s goal of zero harm. Having set itself this ambitious goal, the minerals industry is committed to becoming free of fatalities, injuries and diseases.

MCA member companies maintain that:

z all fatalities, injuries and diseases are preventable;

z no task is so important that it cannot be done safely;

z all hazards can be identified and their risks managed; and

z everyone has a personal responsibility for the safety and health of themselves and their work mates.

The industry recognises that even greater ef fort is needed based on leadership, systems, people, culture and behaviour working in unison – backed by robust regulation. It is firmly committed to the principle that every individual, regardless of where they work and what tasks they undertake, should have the same standard of high protection.

0

2

4

6

8

10

12

14

16

18

20

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2006

-07

2007

-08

2008

-09

2009

-10

2010

-1120

11-1

2

2

77

18

4

1110

1212

7

15

19

10

Source: MCA Safety Performance Reports (as at 17 February 2012)

Fatalities in the minerals sector

The MIneRalS InduSTRy’S nuMbeR One value and COMMITMenT IS

The SafeTy and healTh Of ITS WORkfORCe, WheRe eveRyOne WhO gOeS TO WORk In The InduSTRy ReTuRnS hOMe Safely.

Just as the industry has integrated safety and health issues across varied operations, it seeks an integrated approach from governments to support a growing and increasingly mobile labour-force.

The MCA continues to advocate uniform national occupational health and safety legislation, supported by industry-specific regulation, to bring greater certainty, ef-ficiency and clarity to industry participants. It is also critical that compliance challenges do not detract from the practical task of identifying, managing and minimising risk and the continuous improvement of safety and health outcomes.

COPYS Ebit PEl iPSum vEl EOSSint Om-

niEnt PEliSinuS, OmniEt fugita-tur, aut ut mOlESt vEruPtat aS


produCtion, exports and CoMModity priCes

auSTRalIa’ S

M I n I n g I n d u S T Ry R e M a I n S a b u l W a R k O f n a T I O n a l eCOnOMIC STRengTh In The faC e O f g lO ba l e CO n O M I C unCeRTaInTy. Mining investment (including in oil and gas projects) has risen to exceed 4 per cent of GDP and is buffering the Australian economy against weaker global growth prospects.

Most major mineral commodities recorded higher production through 2011 despite severe weather disruptions in the March quarter. This recovery in minerals produc-tion and exports helped to underpin the nation’s export performance with Australia recording its tenth consecutive monthly trade surplus in December 2011. Minerals exports (excluding oil and gas) reached $154 billion in 2010-11 (52 per cent of total exports of goods and services).

In the March quarter 2011, closed mines and damaged infrastructure saw iron ore exports fall 14 per cent below the December quar ter 2010 level, while metallurgical coal and thermal coal exports fell 31 per cent and 19 per cent respectively. Coal operations in Queensland were particularly af fected with 85 per

cent of the state’s coal mines suffering lost production totaling some 20-30 million tonnes.

Export volumes remained below normal capacity in the June quarter due to the scale of de-watering required at flooded mines, but there was a strong recovery in the September quarter with metallurgical coal export volumes increasing by 6 per cent and thermal coal by 9 per cent. Iron ore exports increased by 11 per cent in the September quarter to a reach record volume of 117 million tonnes.

The impact of Australia’s weather-related disruptions to supply buoyed commodity prices strongly through the first half of 2011. The situation reversed in the second half of the year following heightened concerns over Europe’s debt and banking problems and signs of moderation in emerging economy growth. From its peak in August 2011, the Reserve Bank’s non-farm commodity price index had declined by 10 per cent in Special Drawing Rights (SDR) terms by the end of the year.

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45

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60

70

80

90

100

110

120

Iron ore (LHS) Met coal (RHS) Thermal coal (RHS)Mt

Mt

Source: BREE

Export volumes



Forecast 7 per cent growth in metallurgical coal production in 2011-12 reflects both the recovery from weather disruptions and significant expansion projects in Queensland’s Bowen Basin.

Australia’s top three iron ore producers each reported record production volumes in the December quarter and BREE forecasts annual growth of 9 per cent in 2011-12 as mine and infrastructure development programs continue in the Pilbara.

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Silver(New York, USc/troy oz)

Austral ian gold mine produc tion is forecast to increase by 3 per cent as a number of expanded and new operations come online.

Aus t ra l ia ’s nickel mine pro duc t ion increased 21 per cent in 2010-11 and is forecast to grow a further 14 per cent in 2011-12. The significant addition to feedstock is expected to support a 12 per cent increase in production of refined nickel.

These production increases are forecast to occur within the context of higher output worldwide. BREE estimates global trade of iron ore to increase by 7 per cent and by 5 per cent for coal. It also predicts international production to increase by 12 per cent for uranium, 8 per cent for nickel and aluminium, 5 per cent for zinc and 4 per cent for copper.

The e x C e P T I O n S WeRe ThOSe MOST

affeCTed by WeaTheR dISRuP-TIOnS In nORTheRn auSTRalIa: metallurgical coal, uranium and alumina. Alumina declined further in the September quarter, but uranium recorded production growth of 75 per cent with the re-opening of the Ranger mine in the Nor thern Territory.

025050075010001250150017502000

Dec-‐06

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Jun-‐09

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Jun-‐11

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Gold(London afternoon fixing US$/oz)

Expansion in the Pilbara contributed to an 8 per cent quarterly increase in iron ore production which brought the total increase for the year to September 2011 to 20 per cent. Nickel reported a 23 per cent increase in the year to September, zinc 9 per cent and copper and bauxite both 3 per cent. Lead dropped by 15 per cent over the 12 month period and gold by 4 per cent as producers mined lower ore grades.

Preliminary estimates for 2011-12 by the Bureau of Resource and Energy Economics (BREE) predict strong growth for every commodity except tin.

BREE forecasts an overall increase in mine production of 11 per cent in 2011-12 driven by double digit growth for nickel (up 14 per cent), uranium (up 12 per cent) and copper (up 11 per cent).

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Nickel(LME US$/t)

E x p e c te d g ro w t h in t h e r m a l co a l production of 9 per cent ref lects the completion of significant new coal mine capacity in Queensland and New South Wales. Expanded port capacity in the Hunter has also encouraged a number of producers to expand the operations of existing mines.

PROduCTIOn MOST MajOR MIneRal

COMMOdITIeS ReCORded hIgheR PROduCTIOn ThROugh 2010 – 11



Minerals production forecasts by commodity – volume

2008-09 2009-10 2010-11 2011-12f Est. per cent change (y-y)

Thermal coal Mt 209.7 198.3 206.1 224.7 9.0

Metallurgical coal Mt 130 163 146 156 6.8

Iron ore Mt 353.2 423.4 450.0 489.2 8.7

Gold t 217.9 239.7 265.1 273.5 3.2

Uranium t 10 311 7 109 7 069 7 930 12.2

Aluminium

Bauxite kt 64.1 67.8 68.5 69.4 1.3

Alumina kt 19 597 20 057 19 544 20 361 4.2

Aluminium kt 1 974 1 920 1 937 1 979 2.2

Copper

Mine production kt 890 819 952 1 053 10.6

Refined, primary kt 499 395 485 498 2.7

Zinc

Mine production kt 1 411 1 362 1 479 1 584 7.1

Refined kt 506 515 499 523 4.8

Nickel

Mine production kt 185 160 194 221 13.9

Processed ore kt 213 200 234 261 11.5

Lead

Mine production kt 596 617 697 714 2.4

Bullion kt 155 148 133 161 21.1

Refined kt 213 189 190 201 5.8

Manganese ore kt 3 730 5 795 6 784 7 075 4.3

Silver

Mine production t 1 764 1 809 1 792 1 913 6.8

Refined t 751 701 712 803 12.8

Tin

Mine production t 4 045 19 829 18 410 9 202 -50.0

Source: BREE, f=forecast.



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Jun-‐11

Dec-‐11

Zinc(High grade LME US$/t)

Australia’s thermal coal exports are forecast to increase by 14 per cent in volume and 34 per cent in value in 2011-12. It is expected volumes will increase by 16 per cent in the calendar year 2012 in response to strong import demand from China and India. Other top exporters – Indonesia, the Russian Federation and Colombia – are expected to see growth of between 2 and 6 per cent. Metallurgical coal exports are expected to increase by 7 per cent in volume and 13 per cent in value in 2011-12 with stronger demand coming from Japan in particular. After a 16 per cent drop in 2011, BREE expects Australian export volumes to increase by 19 per cent in 2012.

020406080

100120140160

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Uranium (US$/pound)

IROn ORe e xPO R T S aR e PR e d I C Te d TO InCR e aSe by 13 Pe R Ce nT In vOluMe and 12 PeR CenT In value In 2011-12. Demand from China is forecast to increase export volumes from Australia and Brazil by 12 per cent and 9 per cent respectively in 2012.

The next highest share was gold at 8 per cent. December quarter estimates by BREE point to further growth in minerals exports in 2011-12 to around $176 billion.

ThIS R e S u l T W a S undeRWRITTen by

hIgh COMMOdITy PRICeS and aChIeved deSPITe a hIgh auS-TRalIan dOllaR and naTuRal dISaSTeRS In auSTRalIa and jaPan. Exports of iron ore accounted for 35 per cent of total minerals exports while coal accounted for 28 per cent.

exPORTS In 2010-11, auSTRalIa’S MIneRal ReSOuRCe

exPORT eaRnIngS (exCludIng OIl and gaS) InCReaSed 29 PeR CenT TO $154 bIllIOn.

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130

140

150

2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 f

Energy minerals Metals and other minerals Total minerals

Source: BREE

Volume of production index (Annual 1997-98=100)



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Aluminium(High grade LME US$/t)

bulk C O M M O d I T y PRICeS ROSe In

The fIRST half Of 2011 befORe fallIng baCk In The SeCOnd half Of The yeaR. World contract price forecasts for bulk commodities in 2012 anticipate falls of 15 per cent for thermal coal, 22 per cent for metallurgical coal and 9 per cent for iron ore. Only the precious metals, gold and silver, recorded an average monthly price in December 2011 above that of December 2010, rising 18 per cent and 3 per cent respectively. As Chart 6 illustrates, prices for nickel, copper, lead and zinc and aluminium and uranium all ended 2011 lower than December 2010 recorded levels.

11 per cent increase in nickel exports will derive export earnings 9 per cent lower than the previous year. A 17 per cent increase in the volume of copper ores and concentrates and a 2 per cent increase in the export of refined copper will generate only a 3 per cent increase in export returns.

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Lead(LME US$/t)

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6000

8000

10000

12000

Dec-‐06

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Copper(Grade A cathode LME US$/t)

gOld exPORT vOluMeS aRe PRedICTed

TO InCReaSe by 12 PeR CenT I n 2011-12 W I T h T h e va l u e fOReCaST TO ReaCh $18.9 bIl-lIOn. In contrast, a 3 per cent increase in aluminium exports is forecast to deliver a 4 per cent decrease in export returns as prices continue to fall. Similarly, an

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Met coal Iron ore Gold Alumina Aluminium Copper Zinc Nickel

2008-‐09 2009-‐10 2010-‐11 2011-‐2012 f$m

Value of major mineral commodity exports

Source: BREE


investMent and exploration expenditure

BREE reported that advanced projects ( th os e e i th er co mmi t te d o r un d er construction) totalled $71 billion in the six months to October 2011, up from $62.9 billion reported in April and an increase of 75 per cent in two years. Iron ore projects worth $31.8 billion made up the largest share of advanced minerals projects. Advanced coal projects totalled $24.4 billion.

Less advanced or more uncertain minerals projects have a total potential capital expenditure of $155.2 billion, 7 per cent higher than in the six months to April 2011 and 20 per cent higher than the corresponding period in 2010.

BREE estimated the total value of resource projects (either committed or on the drawing boards) at $455 billion in the six months to October 2011. Of minerals industry projects valued at more than $226 billion, the potential value of iron ore mining and infrastructure projects was estimated at almost $100 billion while the prospective pipeline of coal mining and related infrastructure projects has been put at $80 billion.

The SePTeMbeR quaRTeR naTIOnal aCCOunTS

undeRlIne MInIng’S COnTRIbu-TIOn TO naTIOnal PROSPeRITy. St rong mining inves tment saw the economy grow 1 per cent in the quarter, with business investment up more than 31 per cent from a year earlier. Based on estimates by the Australian Bureau of Statistics (ABS), mining investment could reach $80 billion in 2011-12, around 5 per cent of GDP.

MInIng InveSTMenT In auSTRalIa haS SuRged In

2011 WITh The SePTeMbeR quaRTeR fIguRe 62 PeR CenT hIgheR Than a yeaR eaRlIeR.

50

100

150

200

250

300

Inde

x

Mining All industries

Source: ABS (mining includes petroleum and gas)

Private new capital expenditure (Dec 2006=100)



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25

50

75

100

125

150

175

Apr-‐09 Oct-‐09 Apr-‐10 Oct-‐10 Apr-‐11 Oct-‐11

Committed projects Less advanced projects$b

Source: BREE

Minerals sector major development projects

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70

80

Apr-‐09 Oct-‐09 Apr-‐10 Oct-‐10 Apr-‐11 Oct-‐11

Mining projects Processing projects Infrastructure projects

$b

Source: BREE

Advanced major development projects



MORe Than half ThIS S u M W a S e x -

Pended In WeSTeRn auSTRalIa and aPPROxIMaTely a quaRTeR WaS SPe nT In que e nSl and. However, the Northern Territory recorded the biggest increase rising more than 80 per cent in 2010-11 to $195 million. Exploration increased 52 per cent in Queensland and South Australia. Victoria was the only state to record a decline in exploration expenditure dropping 31 per cent to $58 million.

The trend away from greenfield exploration towards brownfield exploration has continued. Expenditure on exploration on areas of new deposits fell from 38 per cent of total expenditure in 2009-10 to 35 per cent in 2010-11. Total metres drilled rose 17 per cent in 2010-11, but the proportion drilled in areas of new deposits declined from 37 per cent to 35 per cent.

Mineral exploration expenditure – by mineral sought

2009-10 ($m) 2010-11 ($m) per cent change

Copper 201.6 323.0 60.2

Silver, lead, zinc 51.6 75.5 46.3

Nickel, cobalt 203.9 270.9 32.9

Gold 575.4 652.1 13.3

Iron ore 524.1 664.9 26.9

Mineral sands 28.3 26.1 -7.8

Uranium 169.0 213.9 26.6

Coal 321.1 519.7 61.8

Diamonds 10.3 8.9 -13.6

Other 147.1 196.3 33.4

Total 2232.5 2951.3 32.2

exPlORaTIOnafTeR gROWTh Of leSS

Than half a PeR CenT In 2009-10, MIneRal exPlORaTIOn exPendITuRe InCReaSed 32 PeR CenT In 2010-11 TO $3 bIllIOn.


eMployMent, WorkplaCe arrangeMents and skills

EmploymEnt growth in mining continuEs to ExcEEd official forEcasts.

baSed O n a b S f I g u R e S ,

eMPlOyMenT In The MIneRalS SeC TO R R e aCh e d 226,200 In nOveMbeR 2011, an increase of 21 per cent in each of the past two years. Total employment in Australia grew by 3.4 per cent over the same period.

Employment growth (original, Nov 2006=100)

80

100

120

140

160

180

Index

Minerals sector Total

Source: ABS

In 2010, the Fe dera l G overnment ’s National Resources Sector Employment Taskforce predicted employment in the sector to increase by an average rate of 4.9 per cent per annum and to reach 216,00 by the end of 2014-15. The industry exceeded that forecast in November 2011. Employment growth occurred across the

minerals sector in the year to November 2011. Employment in metal ore mining increased by 27 per cent to 84,000 people; coal mining employment increased by 5 per cent to 46,300 people.

Wages, workplace training and skills development expenditure are all higher than the national average and the industry continues to be a leader in developing collaborative, direct relationships between employers and employees in the workplace.

Minerals sector employment

100

140

180

220

260

Employment '000s

ABS Data NRSET Projections

Source: ABS

In November 2011, the National Centre for Vocational Education Research (NCVER) published a report on employers’ use and views of the VET system – including

government (TAFE) and private training providers. The survey’s findings counter the misconception that the mining industry’s commitment to training falls short of other industries. The results revealed a significant increase in mining sector employers providing nationally recognised training other than apprenticeships, and an even larger increase is expected in the next 12 months.

NCVER’s June quarter 2011 survey of VET enrolments found that there were more than 11,000 apprentices and trainees in the minerals sector which equates to 5 per cent of the industry’s workforce. The number of apprentices and trainees increased by 11.5 per cent in the year to June 2011 while the number of completions increased by 30 per cent.


eMployMent, WorkplaCe arrangeMents and skills

0

2,000

4,000

6,000

8,000

10,000

12,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

Number in training

Source: NCVER

Minerals sector apprentices/trainees


environMental perforManCe

The minerals indusTry conTinues To be acTively engaged in The

pracTical and effecTive inTegraTion of environmenTal, social and economic aspecTs of resource developmenT.

eaRnIng a n d M a I n -

TaInIng a SOCIal lICenCe TO OPeRaTe and The PRaCTICal IMPleMenTaTIOn Of SuSTaIn-able develOPMenT PRInCIPleS a R e d e f I n I n g f e aT u R e S O f MOdeRn MInIng OPeRaTIOnS.

KEy fEaturES of thE inDuStry’S approach to EnvironmEntal managEmEnt incluDE:

� Land : Less than 0.02 per cent of Australia’s land mass is currently under mining activity, with mined lands available both for alternative land uses consecutively with mining (including for biodiversity conservation through habitat management) and to support alternative post-mining land uses, including agriculture. 1

� Water: Mining accounts for 3.6 per cent of Australia’s water consumption. The industry is a high value-add user and has a significant stake in the development of efficient and sustainable water allocation polices that recognise all major users. The gross value add per GL of water used by mining is $226 million compared with $164 million for manufacturing and $4 million for agriculture. 2

� Energy: The industry is actively minimising the undesirable impacts of energy usage upon health and the environment, and contributing towards

1 Workplan of the Australian Collaborative Land Use and Management Program, Land Use and Land Management Information for Australia, 2010.

2 Australian Bureau of Statistics 4610.0, Water Account Australia, 2008-09, released 29 November 2010.

secure and affordable energy for Australians through the development of alternative energy technologies and energy efficiency measures.

� Emissions management: The industry is actively minimising fugitive emissions to land, air and water to manage both chronic and acute risks to occupational, community and environmental health.

� Materials stewardship: The industry continues to reduce both its use of natural resources and other materials inputs and to minimise its production of wastes through facilitating and encouraging responsible product design, use, re-use, recycling and disposal of our products.

� Biodiversity conservation: The industry has adopted an increasingly sophisticated approach to the assessment and management of biodiversity centred both on the prevention and management of biodiversity impacts from mining and the identification of opportunities to enhance biodiversity conservation within the reach of their operations.

Water consumption 2009-10

Agriculture 49.6%

Forestry & fishing 0.7%

Manufacturing 4.8%

Electricity & gas 2.3%

Water supply 17.0%

Other industries 9.4%

Mining 3.6%

Household 12.5%

Source: ABS

SpEcific initiativES to givE practical EffEct to thiS managEmEnt approach incluDE:

� Adoption of a nationally consistent minerals industry water accounting framework to drive transparency and water use efficiency;

� Dewatering of mine pits following severe flooding across northern Australia in early 2011 through collaboration with Governments on a risk-based approach to discharge without compromising environmental standards;

� Development of alternative frameworks for land use planning and natural resource management to deliver transparent, rigorous and sustainable decision making processes founded in science and to better support the coexistence of mining, agriculture and conservation;

� Reforms to biodiversity offsetting arrangements under EPBC Act, to recognise industry investments in land rehabilitation and enhance biodiversity outcomes through better placement in the landscape;

� Supporting the continued harmonisation of global chemicals and hazardous substances management to ensure comprehensive and effective protection of the environment and community health; and

� Ongoing investment in the search for global climate change solutions, particularly breakthrough abatement technologies across all energy sources, most notably clean coal technology.


Corporate soCial responsibility

� The development of an alternative trust structure, the Indigenous Community Development Corporation, to incentivise intergenerational wealth transfer and a focus on community and enterprise development from mining related agreements with traditional owners; and

� Advocacy of an industry agenda on regional development, with a focus on supporting community resilience and economic diversity, and ensuring that the opportunities provided by minerals development do not lead to a withdrawal of government investment in health, education and other critical services.

The auSTRalIan MIneRalS InduSTRy TOday IS

aCuTely aWaRe ThaT: � T h e o n g o i n g a b i l i t y t o d e v e l o p mineral resources relies on continuous improvement in industry performance;

� Resources can only be found and developed with the support of the community;

� I t is under increasing scrutiny from local, regional and global stakeholders;

� Communit ies expec t to share in the benefits derived from resource development and those benefits must balance economic growth, responsible social development and effective environmental management; and

� The industry’s economic contribution must be sustainable for current and future generations.

Specific initiatives to give practical effect to these values include:

� Leading an Austral ian pilot of the Extractive Industr ies Transparency Initiative (a tool to independently verify and report the payments made by companies to Governments);

� The development of a Minerals Industry Indigenous Employment and Economic Development Strategy as a compliment t o t h e Au s t r a l i a n G o v e r n m e n t ’s commitments to “Closing the Gap” for Indigenous Australians;

� Reforms to the native title system to improve its efficiency and effectiveness without diminishing the r ights of Indigenous Australians;

MaxIMISIng SOCIO-eCOnOMIC value fROM The develOPMenT Of naTuRal ReSOuRCeS IS

The ulTIMaTe gOal Of The MIneRalS InduSTRy and The defInITIOn Of “value” IS InTeRPReTed In TeRMS MORe bROadly Than PROfIT; RaTheR aS The InduSTRy’S COnTRIbuTIOn TO SOCIeTal CaPITal.


industry issues

Fiscal policy

Minerals resource taxation

cliMate change and energy

fiScal policy � Uncertainty provides no fiscal leave-pass – Global economic uncertainty has not diminished the case for ac-tion to improve long-term Budget sustainability. Delivering a specific cash balance is less important than ensuring decisions are taken to ad-dress the structural deterioration in the Budget and to take account of future pressures on spending.

� Still major reform tasks – Improving the quality of public expenditure and administration and reforming Australia’s fiscal institutions remain unfinished business. A top-to-bottom review of Commonwealth spending priorities is long overdue and more needs to be done to improve fiscal accountability and transparency.

� Tax competitiveness remains key issue – Government demands for greater revenue should not com-promise industry competitiveness or come at the expense of good policy. Already one of Australia’s highest taxed sector and with higher taxes in prospect, the minerals industry considers that taxation policies should facilitate rather than impede

growth in sectors of comparative advantage in the economy.

minEralS rESourcE taxation � Stable and competitive taxation arrangements are critical – The minerals industry needs stable, efficient and globally competitive taxation arrangements if Australia is to realise the opportunity of the mining boom.

� The MRRT will make key export industries highly taxed – The MRRT will make coal and iron ore among the highest taxed sectors in Australia. International benchmarking shows the effective tax rate under the MRRT will be higher than producers face in comparable competitor nations.

climatE changE anD EnErgy � Global inaction – UN negotiations in Durban in December 2011 under-scored the extent to which global climate change efforts have stalled and that significant action by most of the world’s major emitters will be delayed until 2020 at the earliest.

� Carbon pricing not least cost abate-ment – The proposed carbon pricing scheme will be the world’s biggest

carbon tax with the highest per capita tax take, the shortest transition for industry and exporters and the weak-est safeguards for jobs. The Australian price starts from 1 July 2012 at A$23 a tonne while European carbon units have been selling for around Euro 9 ( just over A$11) in early 2012. Far from streamlining existing measures, the Clean Energy Future package increased the number of conflicting and contradictory policies.

� Investment in low emissions tech-nologies – Under arrangements for the Clean Energy Finance Corpora-tion, Carbon Capture and Storage projects have been explicitly ex-cluded from support. This is both short-sighted and distortionary, as public investment in emerging clean technologies should be made on an open, transparent and technology-neutral basis in accord with market-based resource allocation.

� Energy policy – The Energy White Pa-per (to be finalised in 2012) needs to address the risks to Australia’s energy security and cost competitiveness from the interaction of new policies and changing market conditions.


industry issues

economic and social development of regional areas.

� Ineffective project approvals lead to duplication and delay – Federal/State duplication and inefficiencies in project approvals processes impose major costs on industry. Direct costs arising under the EPBC Act alone have been estimated at up to $820 million over the last decade, with little demonstrable improvement in environmental outcomes. Costs from the failure to appropriately align approval processes across dif-ferent levels of government are much higher.

� Commonwealth’s role should be strategic – The MCA supports an overhaul of the EPBC Act as part of streamlining and simplifying na-tional project approvals processes. The Commonwealth should have a strategic role based on full imple-mentation of bilateral agreements for assessment and approvals processes, endorsement of regional planning instruments that meet EPBC require-ments and strategic investment and planning support.

projEct approvalS anD EnvironmEntal protEction

� Increased land use conflict is a barrier to market access for land and water – Conflicts between the minerals and agricultural sectors continue to emerge around access to “prime agricultural land”. While water and food security are heralded as the issues of concern, the key is-sues of substance are stakeholder knowledge and confidence with respect to the regulatory require-ments related to both exploration and mining. Government data show that mining occupies less than 0.02 per cent of Australia’s land mass compared with more than 50 per cent for agriculture.

� Need for strategic land use assess-ment and planning – To secure com-munity and industry confidence in the regulatory system, governments should address the lack of long-term strategic land use planning in regional and remote Australia and inconsistencies and duplications in regulatory requirements. These issues pose significant risks to indus-try expansion and the sustainable

SKillS ShortagES � Skills demand is high and increas-ing – The growth in minerals sector employment continues to outstrip of-ficial forecasts, with critical shortages of skilled professionals, tradespeople and experienced mine operators.

� Higher education and VET sec-tor concerns – Minerals-related higher education courses (mining engineer ing, metal lurgy, ear th sciences) have been chronically underfunded, requiring the industry to subsidise these courses heavily. Despite progress towards a more demand-driven training system, the Vocational Education and Training ( VET ) sector continues to fail the industry in the delivery of quality training programs.

� Indigenous employment – The min-erals sector is providing significant opportunities for large numbers of young Indigenous Australians in remote communities. Critical pre-employment issues must be addressed for these opportunities to be realised.

SkIllS ShORTageS

PROjeCT aPPROvalS and envIROnMenTal PROTeCTIOn


industry issues

Water access and use

economic infrastructure constraints

strengthening regional communities

StrEngthEning rEgional communitiES

� Regional development framework – Without effective governance arrangements, ser vice del iver y and community infrastructure, the industry ’s ability to ensure com-munities share fully in the benefits of resource development continues to be limited.

� Minerals sector considered proxy for government service delivery – Successive MCA studies have highlighted chronic shortages in health, education, child care and housing services in regional and remote areas. To make up this gap, the minerals sector has been forced to become a de facto provider of basic public services.

� Better coordination and capacity required – Governments at all levels need to coordinate their efforts to ensure the effective capacity and re-sourcing of governance arrangements and service delivery mechanisms for a diverse and resilient remote and regional Australia. The private sector and communities need to be active partners in this work.

Economic infraStructurE conStraintS

� Infrastructure capacity key to re-alising opportunity – Progress has been made on some major transport and supply bottlenecks identified by the MCA in its 2020 Vision study, but the overall picture remains uneven.

� Key priorities – Given fiscal con-straints, regulatory reform to boost private investment in economic infrastructure and public investment in chronically under-funded social infrastructure warrants priority. A Productivity Commission review of access regimes also needs to be commissioned in 2012.

� Regional Infrastructure Fund not a sufficient policy response – The scale of infrastructure requirements is such that the new Regional Infra-structure Fund (financed from MRRT revenues) can only be a partial source of investment.

WatEr accESS anD uSE � Minerals sector a high value user – The minerals sector accounts for around 3.6 per cent of national con-sumptive water use and generates a very high economic value-add from that use. The gross value add per GL of water used by mining is $226 million compared with $164 million for manufacturing and $4 million for agriculture.

� Priority concerns – Four key issues for the next phase of water reform are: the inclusion of the minerals industry into water planning and entitlement regimes; proper resourc-ing of the National Water Initiative (NWI); further development of a national water trading market; and risk assignment provisions focusing on water security for high value us-ers, including mining.

� Industry-wide water accounting framework – The minerals industry is implementing a landmark industry-wide water accounting framework that aligns with existing and emerg-ing regulatory requirements while maintaining environmental integrity and driving water use efficiency.


STRengThenIng IndIgenOuS COMMunITIeS

WORkPlaCe RelaTIOnS

OCCuPaTIOnal healTh and SafeTy

industry issues

� Building sector changes a backward step – Changes to oversight of the building and construction industry will reduce penalties for unlawful activity, reduce the power of the independent watchdog and tie the replacement body in red tape.

occupational hEalth anD SafEty

� Model Work Health and Safety re-gime needs completion – While the model regime has been enacted in a number of jurisdictions (including the Commonwealth), some states (Western Australia and Victoria) are looking either to delay implementa-tion or retain distinct provisions.

� National uniformity remains policy objective – The MCA continues to advocate that the minerals industry be entirely regulated within the Model Act and Regulations and that no separate or additional laws be adopted in any jurisdiction.

enous Community Development Corporation (ICDC).

� Resourcing representative bod-ies and Native Title reforms – The Government should improve the resourcing of key Indigenous rep-resentative structures including Native Title Representative Bodies and Prescribed Bodies Corporate. Further improvements should also be made in the Native Title system without diminishing the rights and interests and special connections to lands and waters of Indigenous Australians.

WorKplacE rElationS � Fair Work Act review must be genuine and effective – The Federal Government’s Fair Work Act contains substantial flaws, principally restric-tions on legitimate individual agree-ments, expanded scope of subject matter in agreements beyond those directly relevant to employment ar-rangements, increased union right of entry and broader than necessary Good Faith Bargaining rules. The proposed Review of the Act should address these flaws.

StrEngthEning inDigEnouS communitiES

� Investment in infrastructure and critical services – The capacity of the minerals industry to contribute to stronger economic development in Indigenous communities is hampered by inadequate social and physical infrastructure.

� Support for Indigenous economic development – Support is needed for the growing Indigenous business sec-tor in the minerals industry through building capacity in Indigenous SMEs. The MCA strongly supports con-tinuation of work addressing supply chain impediments for Indigenous businesses, within both government and business supply chains.

� Incentivising economic activity – A clear opportunity exists to leverage increased economic activity associ-ated with Native Title agreements to enable Indigenous people to become drivers of regional and community development. The MCA recommends the Australian Government adopts the joint MCA and National Native Title Council proposal for an Indig-


industry issues

maritimE tranSport � Foreign competit ion benefits Australia – The established practice whereby Australian shippers use a mix of Australian-flagged and foreign vessels on domestic routes provides necessary flexibility and price competition.

� New measures work at cross pur-poses – Financial and taxation meas-ures to boost the Australian-flagged fleet are welcome, but changes to competition rules threaten to drive up shipping costs. The Productivity Commission should review proposed changes, especially proposals to re-place current permit arrangements with a “Temporary Licence”.

and additional compliance costs without any clear public policy rationale.

traDE anD invEStmEnt � Fur ther trade l iberal isation is important – As Australia’s largest export earner, the minerals indus-try supports continued trade and investment liberalisation through multilateral, regional and bilateral forums. While continuing efforts to bring the Doha round to a conclu-sion, the Australian Government should pursue other avenues which can offer commercially meaningful outcomes.

� Current foreign direct investment settings are sound – Policy set-tings in Australia should continue to encourage foreign investment. Existing policy frameworks for the scrutiny of investment by foreign governments should be maintained.

� Domestic protectionism needs to be resisted – The Australian Govern-ment should resist special assistance schemes that result in high costs to the economy as a whole.

innovation anD inDuStry policy

� Innovation key to mining industry dynamism – Mining is a high-technology industry which is fuelling innovation and knowledge-intensive exports, yet its contribution in this area tends to be overlooked by policy makers.

� R&D changes need careful imple-mentation – Changes to the R&D tax credit need to be implemented carefully to ensure they do not discriminate against production-based research, development and deployment.

� Minerals industry commitment to domestic suppliers is strong – Claims the mining industry is shunning local suppliers are false as shown by data on local supplier participation in mining sector supply chains.

� Tighter regulation on resource companies is misguided – Moves to further tighten regulations, including under the Enhanced Project By-law Scheme (EPBS) and the associated Australian Industry Participation (AIP) Plan requirements, add complexity

InnovatIon and Industry polIcy

trade and Investment

marItIme transport


progress on infrastruCture proJeCts – deCeMber 2011

PORTS:

vISIOn develOPMenTS

queensland � Fourth deepwater port.

� Expansion of existing facilities to increase capacity from 150Mtpa in 2008 to potential 300Mtpa by 2020

� Accelerated development of Abbot Point State Development area.

� Abbot Point - $9 billion to be spent building 9 terminals with eventual capacity of 400 million tonnes per annum (Mtpa). Existing main terminal, the multi-user facility (near Bowen), owned by Ports Corporation and operated by Xstrata of Queensland is completing an $818 million expansion from 25Mt to 50Mtpa. Agreement for a second 50Mtpa terminal operated by Adani (Indian coal company). Two more terminals to be operated by BHPB and Indian firm GVK (developing Hancock Coal’s Galilee Basin prospects) Remain 5 terminals already have expressions of interest on supply Anglo American Metallurgical Coal, Rio Tinto, Waratah Coal and North Queensland Coal Terminal - a consortium of Peabody Energy, New Hope Corporation and others.

� Land allocated for two terminals at new Port at Dudgeon Point (5km from Hay Point and Dalrymple Bay complex south of Mackay) potential capacity of 180Mtpa. Dalrymple Bay Coal Terminal (Brookfield) and Adani to operate. Project worth $10billion. First stages by 2013.

� Dalrymple Bay (DBCT) has completed an expansion from 48Mt to 85Mtpa. Examination of next stages (8x and 9X) to lift capacity 153Mtpa.

� Hay Point expansion (BMA) of 10Mtpa to 55Mtpa underway.

� Port of Townsville looking to expand coal capacity to 20 million tonnes and and improve access for existing non-ferrous metals and phosphate.

� Xstrata has EIS for new 35Mtpa, $1 billion port at Balaclava Island for Wandoan project. Other companies looking to expand Port Alma to 22Mtpa (Gladstone).

� Wiggins Island expansions, in three phases to 90Mtpa ($3.6 billion) underway (also at Gladstone).

� Shoalwater bay project not going ahead after rebuff from Federal environmental authorities. Abbot Point now the replacement. Conclusion – on track to exceed 2020 target.

nSW � Hunter Valley expansion to

250Mtpa.

� Consolidation of Port Kembla to18Mtpa.

� Port of Newcastle agreement has seen increase in Port Waratah Port Services Carrington terminal from 90Mtpa to 113Mtpa. Further expansions, including additional Kooragang Island capacity 11Mtpa to take operation to 145Mtpa by 2015.

� Newcastle Infrastructure Group has completed a 33Mtpa with a further 33 Mtpa to be completed by 2013.

� A fourth terminal with between 60 and 120Mtpa capacity (up to $5 billion) being evaluated.

� Hunter Ports, new group sponsored by Aston Mining, investigating ‘T5’ 100Mtpa operation terminal.

� Feasibility study of upgrade of Port Kembla (outer harbour) under way.Conclusion – potential to meet or exceed 2020 target.

victoria � Hastings on Westernport Bay.

� Inclusion in future Infrastructure Australia project lists.

South australia � Port Bonython/Whyalla

Expansion – Upper Spencer Gulf.

� Eyre Peninsula Port -lower Spencer Gulf.

� Port Bonython EIS underway with a view to operation by 2016.

� Whyalla (One Steel) expansion from 6 to 12Mtpa underway. Port Pirie expansion on hold.

� Agreement by (Centrex) to develop greenfield port at Sheep Hill, to be called Port Spencer, rather than at fishing/agriculture centre of Port Lincoln further south. Environmental consultation process underway.Conclusion – pathway being developed.

Western australia � Mid-West – additional port

capacity from 12 Mt to 25Mtpa at Geraldton and 80Mtpa at Oakajee from 5 operations.

� Oakajee Port funding and approval processes continuing with a bankable feasibility study soon to be completed. 45Mpta initially lifting to 100Mtpa eventually. Total development $5.2 billion.

� Geraldton port limits lifted with expansion under consideration from 5Mtpa to accepted limit of 16Mtpa.

� MCA Vision 2020 has scope for both Oakajee and Geraldton operations.Conclusion – Oakajee on target despite delays.

� Pilbara – Expanded iron ore facilities at existing sites; two new iron ore ports, expanded facilities for minerals concentrates, supply bases for offshore developments. Potential iron ore supply of from 500Mt to 600 Mtpa.

� BHPBIO port and rail expansion through Port Hedland (Rapid Growth Project 5) and a further $7.4 billion in harbour, rail yards and rail links (Jimblebar) lifting capacity towards 220Mtpa and eventually 350Mtpa. Further expansion of 130Mtpa in outer harbour in the long term to take capacity beyond 2020 to 480Mtpa.

� Utah Point multi-user 18 million tonne completed September 2010.

� North-West Iron Ore Alliance feasibility study completed for 50Mtpa ($2.1 billion) South West Creek facility with Port Hedland’s inner harbour. .

� RTIO goal of 333Mtpa output by 2015. Cape Lambert (Karratha) expansion of 50Mtpa to 183Mpta by 2015. Dampier Port expansion of extra 10Mtpa to 150 Mtpa to be completed by 2012.

� State Government approval for Fortescue/MCC/Aquila for new 40Mtpa port at Port Anketell (Karratha) with potential to 350Mtpa.Conclusion – on schedule.

� South West � IA has identified a $756 million port/rail expansion as at Bunbury as possible project of national significance.

� Port of Fremantle channel deepening under way.


progress on infrastruCture proJeCts – deCeMber 2011

RaIl:

vISIOn develOPMenTS

queensland � Goonyella Abbot Point

Expansion (northern missing link, Jilalan rail yards.

� Critical to the development of the Bowen Basin, funding ($1.1 billion) is now approved and construction to finish by mid 2012.

� BHPB considering building own line to Abbot Point.

� Northern Economic Triangle stakeholders examining ability of single line, narrow gauge track between Townsville and Mt Isa.

� Great Northern Rail line expansion by 165 per cent by 2013.

� Upgrade program from 2005 continuing but further investment required.

� Galilee Basin rail line. � GVK (Hancock Coal)/Adani awaiting second approval on multi-user line to Abbot Point. Some existing segments of line will require upgrading to heavier haulage capacity. (Water and electricity transmission upgrades also needed).

� Surat rail line. � EIS approved by State Government in December 2010 for joint venture by QR, Xstrata, ATEC 42 Mtpa.Conclusion – rail capacity potentially keeping pace with Vision 2020 projections to middle of the decade.

nSW � Hunter Valley, increase capacity

to 200Mtpa.

� Port Kembla, increase in freight capacity separate to passenger network.

� ARTC spending $1.2 billion duplicating line and expanding signalling (with $584 million from Federal Government) raising capacity to 200Mtpa.

� Third rail being considered for part of Hunter Valley line near Maitland.

� Revised Hunter Valley Access Undertaking being finalised.

� Maldon to Dombarton duplication under way after thirty years of delays. Conclusion – expansions keeping pace with port developments but more may be required later in the decade.

victoria � Gippsland – create dedicated

freightlink to export port.

� Victorian Government examining rail line to Port of Hastings from main Gippsland line to avoid transit via Caulfield in Melbourne) in its future projects listing.

Western australia � Mid-west, expansion from

25Mpta to meet 105Mpta potential.

� Oakajee rail line route approved by State Government.

� Pilbara rail line to match 600Mpta production potential.

� BHP Rapid Growth Project 5 ($6.7 billion including port) and further investments announced March 2011 with potential total capacity of 300Mpta.

� Hancock has secured environmental approvals for its new $7.2 billion Roy Hill Iron mine to Port Hedland (total project worth $7.2 billion).

� Fortescue examining rail capacity to Port Anketell (Solomons project).

northern Territory � New loading sidings on

Adelaide to Darwin line.

� Possible construction of Tennant Creek to Wonarah line – with potential extension to Mt Isa.

� Territory 2030 Plan discusses need for increased rail networks to increase viability of mines, as well as potential Mt Isa link.Conclusion – greater commitment needed from governments to realise potential.


division reports – viCtoria division

In The fIRST full yeaR Of The baIllIeu COalITIOn

gOveRnMenT, The vICTORIan dIvISIOn WaS heavIly engaged In The RefORM Of The MIneRalS ReSOuRCeS (SuSTaInable devel-OPMenT) aCT. The reforms involved regulations to support the licencing amendments and the identification of the proposed stage 2 legislative amendments associated with work plan approvals and other industry initiated reforms. It was expected that these legislative reforms would balance the negative impacts of the licencing amendments and were to be introduced into Parliament in 2012.

At the federal level the Victorian Division was actively involved in the detailed policy development and advocacy associated with the Minerals Resources Rent Tax as it applies to vertically integrated brown coal businesses. This work included the development of a sound safe harbour model and review of draft legislation.

In response to the growing red tape, the Division sponsored a thorough review of the regulatory burden of the minerals sector in Victoria. The review clearly demonstrated the growth in legislation af fecting the minerals sector and the

exceedingly poor implementation of reforms to reduce this burden. This report has helped the Government focus on the need for meaningful reforms to the regulatory burden.The Division was also heavily involved in a significant Parliamentary Committee inquiry into green field exploration in Victoria. The Division made presentations to and had discussions with the Committee and facilitated site inspections of member activity. The inquiry is due to report its findings to Parliament in mid-2012.

Following on from the passage of the Traditional Owners Settlement Act in 2010, the Division commenced detailed negotiations with the Victorian Govern-ment and Native Title Services Victoria on the Land Use Activity Agreement for exploration under the Act. Progress is slow, primarily caused by Departmental confusion.

The Victorian Division again hosted two very successful Mine Rescue Competi-tions– an underground competition in its 19th year and a surface competition in i t s 6th year. The V ic tor ian mine rescue competitions continue to attract entrants from across the country, making the competitions truly national events

testing the industry’s skills in emergency response capability. The annual Environment and Communities Seminar was very well at tended and focused on the critical issues of water policy and legislative reform.

In response to the proposed national OHS legislative reform agenda the Division conducted a number of seminars for members on the legal matters associated with the transition to the proposed new model work health and safety regime which was to come into effect in 2012.

The Victorian Division’s commitment to minerals industry careers promotion and minerals education in schools continued with interactive training sessions delivered to pr imar y and secondar y s tudents and an escorted tour of the gold and mineral sand mines for science and careers teachers. The Division also actively contributed to the successful role out of the www.oresomeresources.com.au site which is a national portal for high quality teaching and learning materials for teachers and students in minerals related curricula.

The Division continued to provide the secretariat services for the very successful Melbourne Mining Club which continues to grow and position the minerals industry as a critical component of Melbourne’s business community.

Chris FraserExecutive Director Victoria


division reports – northern territory division

2011 W a S a v e R y e v e n T f u l y e a R

fOR The MIneRalS InduSTRy In The nORTheRn TeRRITORy and auSTRalIa. During the year the Nor thern Terr i tor y Government introduced changes to various mining and mineral titles legislation designed to align the Territory with other jurisdictions. The MCA NT Division has been working with Government to ensure our members’ interests and views are well represented.

At the time of writing, MCA NT Division is continuing to voice member views on several pieces of legislation, including the Native Vegetation Management Bill which in its current form poses a clear risk to the industry and the long-term economic and social prosperity of the Northern Territory. This legislation takes a direction that is out of step with other jurisdictions that specifically exempts the minerals industry given the highly regulated environment in which the industry operates.

The MCA Indigenous Pre-Employment Program was run again at Batchelor College in 2011. The industry-based program has been subject to a number of continuous improvements taking on lessons learned from the initial pilot program in 2010. A full-time program manager employed

by Batchelor College, Russell Wilson, implemented improvements in course quality and provided on-site guidance, an integral part of the 2011 program’s success. Trainees from ERA, Newmont, Territory Iron and GEMCO graduated in October.

In addition, MCA NT Division has formed a solid relationship with the Northern Land Council who act as mentors in the program. MCA NT Division expects that our relationship with NLC will continue in 2012 and will include similar involvement from the Central Land Council to support trainees from the central region.

Introduced during the 2011 program was a school-based numeracy and literacy learn-ing toolkit developed by the University of New England. “Quicksmart” has been adopted for the workplace to improve trainees’ numeracy and literacy skills and is seeing incredible improvements in a very short period. The tool will be fully embraced as part of the 2012 program with broader application and trials being undertaken at GEMCO and in a number of prisons throughout the Northern Territory.

Chris Natt continues to lead the MCA Indigenous Pre-Employment Program with infectious enthusiasm and continues to be a valuable asset to the industry.

Our ongoing representation on the Indigenous Economic Development Taskforce allows us to table and share our experiences with key stakeholders from Government, land councils, business and industry.

The Darwin Mining Club continued to be a real success in 2011 with luncheon attendances climbing throughout the year. Luncheon speakers included the Honourable Kon Vatskalis, Mr Alan Wright, Mr Kevin Gillan and Mr James McMahon.

During 2011 MCA NT Division of fered our support to help formally establish a resources networking group in the Northern Territory. The objectives of the NT Women in Resources group are consistent with the Minerals Council of Australia’s objectives of increasing participation and retention of women in the resources sector. MCA NT Division has been pleased to provide financial and in-kind assistance to the group who are led by a number of passionate and dedicated people including Ms Marcia Kelly and Ms Linda Young. Membership is open to men and women and the group meets regularly at MCA NT Division offices.

While exploration continues to reach record levels in the Territory, the NT Explorers Council meets regularly to discuss various issues affecting the industry. The group also provides feedback and advice on regulatory issues that affect explorers. During 2011 the Explorers’ Council met to discuss a number of issues including changes to the Minerals Title Act. The Counci l is led by Mr Rob Bi l ls f rom Emmerson Resources.

While 2011 was an eventful year, the support and participation of our members has proven invaluable. As an industry body we depend on guidance and advice from our members to ensure we continue to represent your views. To the members of our various committees and the NT Management Committee we thank you for your time and ongoing support.

And finally thank you to Tamara Henderson our Office Manager who is our first point of contact and administrative support. Tamara delivered on an enormous workload in 2011 and still continues to organise us all.

The small team at MCA NT Division looks forward to continuing to represent and work with you all during 2012.

Peter StewartExecutive Director Northern Territory


board of direCtors as at 31 deCeMber 2011

Mr Hubie van Dalsen

Senior Vice Chairman President Metallurgical CoalBHP Billiton Limited

Mr Terry Burgess

Managing Director and Chief Executive OfficerOZ Minerals Limited

Mr Peter Johnston

Chairman Chief Executive Officer and Managing DirectorMinara Resources Limited

Mr John Borshoff

Chief Executive Officer and Managing Director Paladin Energy Limited

Mr David Peever

Vice Chairman Managing Director, Australia Rio Tinto Limited

Mr Seamus French

Chief Executive OfficerAnglo American Metallurgical Coal Pty Ltd


board of direCtors as at 31 deCeMber 2011

Mr Andrew Michelmore

Chief Executive OfficerMinerals and Metals Group (MMG)

Mr Bruce Munro

Managing DirectorThiess Pty Ltd

Mr Greg Robinson

Managing Director and Chief Executive OfficerNewcrest Mining Limited

Mr Peter Freyberg

Chief Executive OfficerXstrata Coal Pty Limited

Mr David Overall

Chief Executive OfficerDowner EDI Mining Pty Limited

safety and health


December 31, 2011

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s C

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December 31, 2011

Exec

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MCa CoMMittee list

healTh, SafeTy, envIROnMenT and COMMunITy POlICy

occupational health & Safety Standing committee Chair: Terry Burgess, Managing Director and Chief Executive Officer, OZ Minerals Limited, Member of MCA Board of DirectorsProviding leadership and strategies in support of the industry’s goal of achieving an Australian minerals industry free of fatalities, injuries and diseases.

Sustainable Development committee Chair: Andrew Michelmore, Chief Executive Officer, Minerals and Metals Group, Member of MCA Board of DirectorsProvides leadership and strategic advice on the development and implementation of policies and practices to maximise the social, environmental and financial dividends of mineral resource development.

indigenous relations Working groupChair: Ken Ramsey, Regional Group Executive Environment and Social Responsibility, Newmont Asia PacificThe development and implementation of policies and strategies relating to the effective operation of the native title system and cultural heritage and sharing leading practice in contributing to the development of mutually beneficial relationships with Indigenous communities and organisations.

Water Working groupChair: Kristina Ringwood, Principal Adviser – Environment, Rio TintoAddressing issues associated with ground and surface water policy development and the effective implementation of the National Water Initiative to secure water access and build industry capacity for water use efficiency.

land management Working groupChair: Sarah Bell, Group Manager Environment, Minerals and Metals GroupDeveloping public policy related to multiple and sequential land use and maximising industry and community benefits from effective land management.

resource tax Working groupChair: Brian Purdy, Vice President Tax - Project Hot, BHP Billiton LimitedCoordinates industry positions on reforms arising from the Henry Tax Review, including the Minerals Resource Rent Tax.

WORkfORCe

Workforce committeeChair: Hubie van Dalsen, President – Metallurgical Coal, BHP Billiton Limited, Senior Vice Chair of MCA Board of DirectorsThe development of policies and strategies for a global framework for emissions reductions, the development and deployment of low emissions technologies and the introduction of economically efficient, environmentally effective market-based mechanisms, specifically emissions trading, for pricing carbon.

RegIOnal dIvISIOnS

victorian State councilChair: Jack Wilson, Executive General Manager, Mining, Loy Yang Power Management Pty LtdDevelopment of policy and advocating strategy for State, and input into National, programs.

Safety Working groupChair: Bernie Hyde, Mine Manager – Yallourn Mine, RTLOHS regulation and capacity building matters.

Exploration Working groupChair: Neil Norris, Executive Director - Exploration, GBM Pty LtdExploration regulations and land access issues.

legislation & indigenous affairs Working groupMining and other related State legislation reform.

Environment & communities Working groupChair: Andrew Mattiske, Health, Safety & Environment Manager, Unity Mining LimitedEnvironment and Community engagement regulations and capacity building.

minerals Stewardship Working groupChair: Peter Glazebrook, Principal Adviser – Product Stewardship, Rio TintoFocuses on the management of minerals and mineral products throughout the supply chain with the aim of protecting community and environmental health and ensuring the efficient use of natural resources.

cyanide management Working groupChair: Mike LeRoy, Health, Safety and Environment Manager, AngloGold Ashanti Australia LimitedAddressing issues associated with the manufacturing, transport and use of Cyanide and the national application of the International Cyanide Management Code.

ClIMaTe Change

climate change Standing committeeChair: Seamus French, Chief Executive Officer, Anglo American Metallurgical Coal Pty Ltd, Member of MCA Board of DirectorsDevelopment of policies and strategies for a global framework for emissions reductions, the development and deployment of low emissions technologies and the introduction of economically efficient, environmentally effective market-based mechanisms, specifically emissions trading, for pricing carbon.

eCOnOMICS POlICy

taxation Standing committeeChair: Ann-Maree Wolff, Global Advisor – Tax Advisory, Asia Pacific, Rio TintoDevelops and advocates reforms to taxation policy and administration that directly and indirectly impact the minerals industry.

gSt Working groupChair: Brett Mawby, Head of Tax, Australia, Peabody Energy Australia Pty LtdMonitors and coordinates representation on GST issues.

r&D tax concessions Working groupChair: Chen Leong, Vice President Tax - Asia Pacific, BHP Billiton LimitedMonitors and coordinates representation on R&D tax concessions issues.

northern territory management committeeChair: Bryan Quinn, Asset Manager Manganese Australia, BHP Billiton LimitedDevelop policy and advocate strategy for the industry in the Northern Territory, and provide input into National programs

Darwin mining club – committeeChair: Wendy Oldham, NT General Manager, APA GroupProvide industry stakeholders with a forum for information exchange, networking and learning opportunities and promote the mining industry as a career of choice.

Environment committeeChair: Ray Hall, Principal Environmental Scientist & NT Manager, Ecoz ConsultingPromote best practise environment management and provide advice on legislative and regulatory matters.

infrastructure and Economic Development committeeChair: Elle Hilton, National Manager, Toll Marine LogisticsPromote development of effective infrastructure and influence economic policies and encourage business and economic development in support of the minerals industry in the Northern Territory.

land access & indigenous relations committeeChair: Alan Tietzel, General Manager External Relations, Energy Resources of AustraliaPromote development of land access provisions that create mutual advantage and promote best practice in relationships with traditional owners.

occupational health & Safety committeeChair: Brian Fowler, Manager Sustainability, Arafura ResourcesPromote industry best practice in Occupational Health and Safety and provide advice on OHS legislation and regulatory matters.

training and Employment committeeChair: Brian Fowler, Manager Sustainability, Arafura ResourcesAs employers of choice, promote the development of a workready skilled population and provide informed comment on training and employment issues.


MCa MeMber CoMpanies As At 31 December 2011

full MeMbeRS

Alliance Resources Ltd Anglo American Metallurgical Coal Pty Ltd AngloGold Ashanti Australia Limited Astron Limited Barrick (Australia Pacific) Ltd BHP Billiton Limited Castlemaine Goldfields Limited Dart Mining NL Downer EDI Mining Pty Ltd Emmerson Resources Ltd GBM Resources Limited Heron Resources Ltd HNC Australia Resources Ignite Energy Resources Pty Ltd International Power Hazelwood Jabiru Metals Ltd John Holland Pty Ltd Leighton Contractors Pty Limited Loy Yang Power Management Pty Ltd Mandalay Resources Mantle Mining Mecrus Resources Pty LtdMinara Resources Ltd Minemakers Limited Minerals and Metals Group Newcrest Mining Limited Newmont Australia Pty Ltd Northgate Australian Ventures Pty Ltd Orion Gold NL OZ Minerals Limited Paladin Energy Ltd Panoramic Resources Ltd Peabody Energy Australia Pty Ltd Providence Gold and Minerals Pty Ltd Reedy Lagoon Corporation Ltd Rio Tinto St Barbara Limited Straits Resources Ltd Thiess Pty Ltd Toro Energy Limited TRUenergy Yallourn Pty Limited TUC Resources Ltd Unity Mining Limited Uranium Equities Ltd Vale Western Desert Resources Xstrata Plc

aSSOCIaTe MeMbeS

AECOM Afmeco Mining & Exploration Pty Ltd Allens Arthur Robinson AMC Consultants Pty Ltd Apache Energy Aries Maritime Svcs Pty Ltd Australian Mines and Metals Association (AMMA) Australian Mining and Exploration Title Ausurv Pty LtdBIS Industries Blake Dawson BP Australia Pty Ltd Chamber of Minerals and Energy of Western Australia Charles Darwin University Corestaff NT Pty Ltd CSIRO Dyno Nobel Asia Pacific ECOZ Environmental Services Elletson Mining Consultants Pty Ltd Ernst & Young Falcon Oil and Gas Australia Pty Ltd Freehills Freeport McMoran Copper and Gold Inc GHD Pty Ltd Golder Associates Pty LtdHitachi Construction Machinery Australia Pty Ltd IBM Australia Ltd Indophil Resources NL Just Outcomes (Aust) Pty Ltd KPMG Linfox Australia Michels Warren Munday Minter Ellison Mitsubishi Development Pty Ltd NSW Minerals Council Orica Australia Ltd PanAust Limited Partners in Performance International Pty Ltd Power and Water Corporation PricewaterhouseCoopers Australia Queensland Resources Council Rongtai International Group Holdings Ltd Sinclair Knight Merz Skilled Group South Australian Chamber of Mines & Energy Sparke Helmore Lawyers Tasmanian Minerals Council Limited UME Australia Pty Ltd University of Western Australia URS Australia Pty Ltd WesTrac Pty Ltd


finanCial stateMents 31 deCeMber 2011

Contents

Report of the Directors 45

Independent Auditors’ Report to the Members 51

Directors’ Declaration 53

Statement of Comprehensive Income 54

Balance Sheet 55

Statement of Changes in Equity 56

Statement of Cash Flows 57

Notes to the Financial Statements 58

This financial report covers the financial statements of Minerals Council of Australia as an individual entity, and is presented in Australian currency.

The financial report was authorised for issue by the directors on 13 April 2012. The directors have the power to amend and reissue the financial report.

Minerals Council of Australia Level 3, Walter Turnbull Building 44 Sydney Avenue, Forrest. ACT. 2603. ACN 008 455 141 ABN 21 191 309 229


direCtors’ report

Your directors present their report on the financial statements of the Minerals Council of Australia (the Council) for the year ended 31 December 2011.

The following persons were directors of the Minerals Council of Australia during the whole of the financial year and up to the date of this report:

Mr J Borshoff Director since 12 March 2009 B.Sc Managing Director & Chief Executive Officer Paladin Energy Limited

Mr S French Director since 4 December 2007 B.Eng Chief Executive Officer Anglo Coal Australia Pty Ltd

Mr P C Freyberg Director since 14 October 2008 B.Sc (Mining Engineering) Chief Executive Xstrata Coal

Mr P B Johnston Chairman BA Director since 1 June 2006 Chief Executive Officer and Managing Director Minara Resources Limited

Mr A Michelmore Director since 6 March 2008 B.Eng Chief Executive Officer MA Minerals & Metals Group

Mr D J Overall Director since 5 October 2010 B.Eng (Hons) Chief Executive Officer MBA Downer EDI Mining Pty Ltd

Mr D Peever Director since 14 December 2009 M.Sc (Mineral Industry Economics) Managing Director B.Econ Rio Tinto Australia

Mr H van Dalsen Director since 28 May 2009 B.Eng (Mech) President - Metallurgical Coal M.Sc (Fin) BHP Billiton Limited


direCtors’ report

The following persons were appointed as directors on the dates specified and continue in office at the date of this report:

Mr T B Burgess Director since 2 June 2011 B.Sc Managing Director and Chief Executive Officer OZ Minerals Ltd

Mr B A Munro Director since 2 June 2011 B.Eng (Civil) Chief Executive Mining Thiess Pty Ltd

Mr G J Robinson Director since 2 June 2011 B.Sc (Hons) Managing Director and Chief Executive Officer MBA Newcrest Mining Limited

The following persons held office as directors from the beginning of the financial year until their resignation on the date specified:

Mr G Halverson 28 November 2011 BSc (Metallurgical Engineering) MBA

Mr T C Netscher 31 March 2011 B.Sc (Eng) (Chemical) B.Com

Mr D Saxelby 2 June 2011 B.Eng

Mr I Smith 2 June 2011 B.Eng B.FA


direCtors’ report

Meetings of Directors

There were 9 meetings of the Council’s directors held during the year ended 31 December 2011. The following table sets out the number of meetings each director was eligible to attend and the number of meetings attended. The table includes those directors who retired or resigned during the financial year.

Director Meetings eligible to attend Meetings attendedJ Borshoff 9 5

T Burgess 7 5

S French 9 5

P Freyberg 9 6

G Halverson 8 3

P Johnston 9 9

A Michelmore 9 5

B Munro 7 5

T Netscher 1 0

D Overall 9 9

D Peever 9 9

G Robinson 7 3

D Saxelby 2 0

I Smith 2 1

H van Dalsen 9 7


direCtors’ report

Objectives, strategy and activitiesThe Council is incorporated under the Corporations Act 2001 as a company limited by guarantee.

The Council’s objectives are assisting the further development of the mining and metallurgical industries in all their branches within the Commonwealth of Australia and its territories.

The Council’s strategy for achieving those objectives is to engage with the various stakeholders in the mining and metallurgical industries.

During the year the continuing principal activities of the Council were making submissions and representations to those stakeholders on various issues affecting the industries as they arose, and representing the Council members’ interests generally. These activites assisted the Council in achieving its objectives by creating an awareness of the industry’s issues. The Council measures its performance by member feedback, legislative outcomes and stakeholder satisfaction.

ResultsThe Council derives its income primarily through members’ subscriptions which, over time, approximate expenditure of the Council. The net result for the year was a surplus of $460,590 (2010: surplus $751,663). This surplus comprises an operating surplus of $689,190 and a decrease in Asset Revaluation Reserve of $228,600. $538,200 of the operating surplus has been transferred to a Campaign Reserve for use on future advertising campaigns.

DividendsThe Council is not permitted to pay dividends, by its Memorandum of Association.

Significant changesThe Council undertook a major media Public Positioning advertising campaign entitled “Australian Mining. This is Our Story”, and contributed to another campaign regarding the Federal Government’s proposed Carbon Tax through the Australian Trade and Industry Alliance. Additional voluntary contributions were made by members to fund both campaigns.

No other significant changes in the state of affairs of the Council occurred during the financial year.

Likely developmentsThe Council commenced in 2011 a 3-5 year industry positioning communications campaign to fortify and improve public perceptions of the minerals industry, to be funded by additional member contributions, with each year’s funding conditional upon the success of the campaign over the previous 12 months. This campaign will continue in 2012.

No other major change to the ongoing program is contemplated.


direCtors’ report

Matters subsequent to the end of the financial year No matter or circumstance which has arisen since 31 December 2011 has significantly affected or may significantly affect:

(a) the operations, in financial years subsequent to 31 December 2011, of the Council; (b) the results of those operations; or (c) the state of affairs, in financial years subsequent to 31 December 2011, of the Council.

Insurance of OfficersDuring the financial year, the Council paid a premium of $2,303 (2010: $2,168) to insure certain officers of the Council. The officers of the Council covered by the insurance policy include all of the directors and the Chief Executive and all executive members of staff. The liabilities insured include costs and expenses that may be incurred in defending any claim that may be brought against the officers for actual or alleged breach of professional duty in carrying out their duties for the Council.

Environmental Regulation The Council has assessed whether there are any particular or significant environmental regulations which apply. It has been determined that the risk of non-compliance is low and the Council has not identified any compliance breaches during the year.

Members’ liabilityThe liability of members is limited to no more than $10.

Auditor’s Independence DeclarationA copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act is set out on Page 50.

Signed in accordance with a resolution of directors determined on 13 April 2012.

H van Dalsen Vice Chairman Brisbane, Qld.

P B Johnston Chairman Perth, WA.


auditors independenCe deClaration


independent auditors’ report to the MeMbers


direCtors’ deClaration

The directors declare that, in their opinion:

(a) the financial statements and notes set out on pages 54 to 69 are in accordance with the Corporations Act 2001, including: (i) complying with the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (ii) giving a true and fair view of the Council’s financial position as at 31 December 2011 and of its performance, as represented by the results of its operations and its cash flows, for the financial year ended on that date.

(b) there are reasonable grounds to believe that the Council will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors determined on 13 April 2012.

P B Johnston Chairman Perth, WA.

H van Dalsen Vice Chairman Brisbane, Qld.


stateMent of CoMprehensive inCoMe FOR THe yeAR enDeD 31 DeCeMBeR 2011

note 2011 2010

$ $

Revenue from continuing operations 2 32,467,997 34,907,431

Expenses:

Employee benefits expense 5,662,698 5,861,357

Project contributions 8,099,260 2,893,897

Depreciation 223,191 158,780

Advertising & promotions 8,917,867 15,784,447

Consultants costs 5,068,720 5,876,980

Travel and accommodation 910,096 983,928

Office rent 599,463 651,221

Functions, entertainment & promotions 433,575 467,744

Computer rental, support & repairs 281,558 362,247

Meeting & venue hire costs 206,592 124,490

Sponsorships 171,133 103,073

Communications 161,801 141,930

Conference and resources production costs 117,663 97,324

Memberships and subscriptions 109,703 82,281

Internet & website costs 93,843 79,704

Insurances 79,042 67,228

Equipment rental costs 75,483 92,748

Conferences, seminars and training 61,405 29,664

Recruitment 61,231 98,918

Printing & stationery 56,990 84,109

Repairs and maintenance 55,838 56,236

Net loss on sale of assets 2,478 -

Sundry administrative expenses 329,177 297,162

Surplus for the year 689,190 511,963

Other comprehensive income

Changes in the fair value of available-for-sale financial asset 6 (228,600) 239,700

Other comprehensive income for the year (228,600) 239,700

Total comprehensive income for the year 460,590 751,663

The above statement of comprehensive income should be read in conjunction with the accompanying notes.


balanCe sheet As At 31 December 2011

note 2011 2010

$ $

ASSeTS

CURRENT ASSETS

Cash and cash equivalents 4 5,315,988 1,830,337

Receivables 5 4,392,506 6,320,052

Available-for-sale financial assets 6 1,511,100 1,739,700

TOTAL CURRENT ASSETS 11,219,594 9,890,089

NON-CURRENT ASSETS

Receivables 7 1,000,000 -

Plant and equipment 8 1,041,425 853,302

TOTAL NON-CURRENT ASSETS 2,041,425 853,302

TOTAL ASSeTS 13,261,019 10,743,391

LIABILITIeS

CURRENT LIABILITIES

Payables 9 2,209,183 1,084,960

Program surpluses carried forward 10 614,786 315,629

Memberships, contributions and grants in advance 11 617,641 3,750

Provisions - employee entitlements 712,786 717,526

TOTAL CURRENT LIABILITIES 4,154,396 2,121,865

NON-CURRENT LIABILITIES

Memberships, contributions and grants in advance 11 13,500 -

Provisions - employee entitlements 67,576 56,569

TOTAL NON-CURRENT LIABILITIES 81,076 56,569

TOTAL LIABILITIeS 4,235,472 2,178,434

neT ASSeTS 9,025,547 8,564,957

MeMBeRS' eQUITy

Accumulated funds 12 8,476,247 8,325,257

Reserves 12 549,300 239,700

TOTAL MeMBeRS' eQUITy 9,025,547 8,564,957

The above balance sheet should be read in conjunction with the accompanying notes.


stateMent of Changes in equity For the yeAr enDeD 31 December 2011

note Retained earnings

Reserves Total

$ $ $

Balance at 1 January 2010 7,813,294 - 7,813,294

Total comprehensive income for the year as reported in the 2010 financial statements 511,963 239,700 751,663

Balance at 31 December 2010 8,325,257 239,700 8,564,957

Balance at 1 January 2011 8,325,257 239,700 8,564,957

Total comprehensive income for the year as reported in the 2011 financial statements 689,190 (228,600) 460,590

Transactions with members in their capacity as members:

Transfer to campaign reserve (538,200) - (538,200)

Transfer from retained earnings - 538,200 538,200

Balance at 31 December 2011 12 8,476,247 549,300 9,025,547

The above statement of changes in equity should be read in conjunction with the accompanying notes.


stateMent of Cash floWs For the yeAr enDeD 31 December 2011

note 2011 2010

$ $

Cash flows from operating activities

Receipts from members and customers, inclusive of GST 34,376,922 37,470,485

Payments to suppliers and employees, inclusive of GST (33,397,133) (37,648,374)

Interest received 1,007,614 811,481

Net cash flow from operating activities 1,987,403 633,592

Cash flows from investing activities

Payments for non-current receivables (term deposits) (1,000,000) -

Proceeds from decrease in current receivables (term deposits)

2,920,012 (241,145)

Payments for plant and equipment (421,764) (45,333)

Net cash flow from investing activities 1,498,248 (286,478)

Net increase in cash held 3,485,651 347,114

Cash and cash equivalents at beginning of year 1,830,337 1,483,223

Cash and cash equivalents at end of year 4 5,315,988 1,830,337

The above statement of cash flows should be read in conjunction with the accompanying notes.


notes to the finanCial stateMents 31 December 2011

Note 1: Summary of Significant Accounting Policies

(a) Basis of preparation

The Council has prepared this general purpose financial report in accordance with Australian Accounting Standards - Reduced Disclosure Requirements, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001.

Compliance with Australian Accounting Standards - Reduced Disclosure Requirements

These financial statements also comply with Australian Accounting Standards - Reduced Disclosure Requirements as issued by the Australian Accounting Standards Board (AASB).

New and amended standards

None of the new standards and amendments to standards that are mandatory for the first time for the financial year beginning 1 January 2011 affected any of the amounts recognised in the current period or any prior period and are not likely to affect future periods.

The Council has elected to apply the following pronouncements to the annual reporting period commencing 1 January, 2010: - AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

The adoption of AASB 1053 and AASB 2010-2 allowed the Council to remove a number of disclosures. There was no other impact on the current or prior year financial statements.

Historical cost convention

These financial statements have been prepared under the historical cost convention, except for certain assets which, as noted, are at valuation. The accounting policies adopted are consistent with those of the previous year.

(b) Depreciation

Depreciation is calculated on a straight line basis so as to write off the net cost of each non-current asset during its expected useful life. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items.

The following rates of depreciation have been employed:

Computer software 40% - 50% Office furniture 7.5% - 10% Leasehold improvement 7.5% Office equipment 5% - 33%

(c) Employee entitlements

(i) Wages and Salaries and Annual Leave

Liabilities for wages and salaries and annual leave, expected to be settled within twelve months of the balance date, are recognised and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees’ services up to that date.

(ii) Long Service Leave

Liabilities for long service leave are recognised, and are measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employees departures and periods of service. Expected future payments are discounted using interest rates on national government bonds with terms that match as closely as possible, the estimated future cash outflows.

(iii) Number of Employees

At balance date the Council employed 29 full time equivalent employees (2010: 29).



(d) Leased non-current assets

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased property and operating leases under which the lessor effectively retains all such risks and benefits.

Where non-current assets are acquired by means of finance leases, the present value of minimum lease payments is established as a non-current asset at the beginning of the lease term and amortised on a straight line basis over its expected economic life. A corresponding liability is also established and each lease payment is allocated between such liability and interest expense.

Operating lease payments are charged to profit or loss in the period in which they are incurred.

Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability.

(e) Income tax

The Council is exempt from income tax under Section 50-40 of the Income Tax Assessment Act.

(f ) Cash and cash equivalents

For purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change of value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.

(g) Impairment of assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

(h) Investments and other financial assets

classification

The Council classifies its investments in the following categories: loans and receivables, and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at the end of each reporting period.

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets. Loans and receivables are included in receivables in the statement of financial position (notes 5 and 7).

(ii) Available-for-sale financial assets

Available-for-sale financial assets, comprising property trust units, are non-derivatives that are either classified in this category, or not classified in any other category. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the end of reporting period (note 6). Investments are designated as available-for-sale if they do not have fixed term maturities and fixed or determinable payments and management intends to hold them for the medium to long term.

recognition and derecognition

Regular purchases and sales of financial assets are recognised on trade date - the date on which the Council commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets are derecognised when the rights to receive cash flows from them have expired or have been transferred and the Council has substantially transferred all of the risks and rewards of ownership.

When securities classified as available-for-sale are sold, the accumulated fair value and adjustments recognised in other comprehensive income are reclassified to profit or loss as gains and losses from investment securities.



subsequent measurement

Loans and receivables are carried at amortised cost using the effective interest method. Available-for-sale financial assets are subsequently carried at fair value.

Impairment

The Council assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss - is reclassified from equity and recognised in profit or loss as a reclassification adjustment. If any such evidence exists for loans and receivables, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss - is recognised in profit or loss as a reclassification adjustment.

(i) Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses. The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up at the date of acquisition, plus costs incidental to the acquisition. Where assets are acquired through a non-reciprocal transfer the balance is recognised as revenue in profit or loss.

(j) Receivables

All debtors are recognised at the amounts receivable on settlement. Trade receivables are due for settlement no more than 30 days from the date of recognition. Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off.

(k) Trade and other creditors

These amounts represent liabilities for goods and services received prior to the end of the financial year and which are unpaid. The amounts are unsecured and are paid in accordance with specified terms.

(l) Program surpluses carried forward

The Council receives funding for the Minerals Tertiary Education Council (MTEC). MTEC is aimed at raising the standard, industry relevance and student appeal of minerals education to a new level. As funds received for these programs are refundable if not expended on the programs, revenue will be matched against the relevant expenditure. Funds received during the year but not expended are recorded as program surpluses carried forward (note 10).

(m) Jointly controlled operation

The proportionate interest in the assets, liabilities, income and expenses of a jointly controlled operation have been incorporated in the financial statements under the appropriate headings. The Council is party to a jointly controlled operation called Melbourne Mining Club. The Council has a 50% participating interest in this venture, and is entitled to 50% of its output. Council’s interests in the assets employed in the jointly controlled operation are included in the balance sheet.

(n) Goods & Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.



(o) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed are net of returns and amounts collected on behalf of third parties.

The Council recognises revenue when the amount can be reliably measured and it is probable that future economic benefits will flow to the Council. Revenue is recognised for the major business activities as follows:

(i) Subscriptions and grants

Revenue from members’ annual subscriptions is recognised in the accounting period in which the subscription is receivable. Grants from governments are recognised at their fair value in the accounting period in which they are contractually payable, and there is a reasonable assurance that the Council will comply with all attached conditions. Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate (note 11).

(ii) Conferences and workshops

The Council holds a number of conferences, seminars and workshops during the year. Revenue from this source is recognised in the accounting period in which the conference is held.

(iii) Interest income

Interest income from cash and cash equivalents and other investments is recognised using the effective interest method.

(p) Segment reporting

The Council operates in one industry, assisting the further development of the mining and metallurgical sectors, and in one geographical segment being Australia.

Note 2: Revenue2011 2010

$ $

From continuing operations

Ordinary revenue

Subscriptions and contributions 30,455,083 33,053,250

Conferences and competitions 990,480 987,499

Sales of publications and education resources & services 22,160 29,964

Copyrights & royalties 2,827 2,384

31,470,550 34,073,097

Other revenue

Interest 977,022 823,725

Sundry income 20,425 10,609

997,447 834,334

Total revenue 32,467,997 34,907,431



Note 3: Operating surplusThe operating surplus is arrived at after charging the following specific expenses:

2011 2010

$ $

Charges

Depreciation of office furniture and equipment 120,430 58,511

Depreciation of leasehold improvement 102,761 100,269

Net loss/(profit) on disposal of non-current assets 2,478 -

Addition to provision for employee entitlements 143,018 99,679

Rental expense relating to operating leases 288,244 393,533

Note 4: Current assets - Cash and cash equivalents2011 2010

$ $

Cash 1,536,944 1,285,628

Short term deposits 3,779,044 544,709

5,315,988 1,830,337

Cash and cash equivalents bear floating interest rates. The weighted average interest rate at 31 December 2011 was 4.94% (2010: 5.11%).

Note 5: Current Assets – Receivables2011 2010

$ $

Term Deposits 2,783,407 5,703,419

Receivables 1,468,766 553,008

Prepayments 140,333 63,625

4,392,506 6,320,052

Term deposits bear fixed interest rates. The weighted average interest rate at 31 December 2011 was 5.51% (2010: 5.82%.)



Note 6: Current Assets – Available-for-sale Financial Assets2011 2010

$ $

Units in 360 Capital Canberra Trust

Value at 1 January 1,739,700 1,500,000

Revaluation (Note 12) (228,600) 239,700

Value at 31 December 1,511,100 1,739,700

1,500,000 units @ $1.00 each in Becton Canberra Trust were acquired on 2 September 2003. Following the change of ownership of the responsible entity in December 2010, the name of the Trust was changed to 360 Capital Canberra Trust in January 2011.The distribution rate at 31 December 2011 was 8.50% (2010: 8.50%). The Trust owns the building at 44 Sydney Avenue in Canberra, in which the Council leases its secretariat offices.

Revaluations at 31 December each year are based on the Trust’s audited valuation of the units as at 30 June each year, in line with their accounting period.

Note 7: Non-current assets - Receivables2011 2010

$ $

Term Deposit 1,000,000 -

Floating rate note 1,000,000 1,000,000

Provision for impairment of floating rate note (1,000,000) (1,000,000)

1,000,000 -

Term deposits are classified as non-current receivables where their maturity dates are greater than 12 months from the reporting date. The term deposit interest rate at 31 December 2011 was 5.96%. As at 31 December 2011 a non-current receivable of the Council with a nominal value of $1,000,000 (2010 - $1,000,000) was impaired. The amount of the provision was $1,000,000 (2010 - $1,000,000). The impaired receivable is a floating rate Collaterised Debt Obligation. The Council is investigating as to whether any of the impaired receivable is recoverable.



Note 8: Non-Current Assets - Plant and Equipmentleasehold

improvementOffice furniture &

equipmentTotal

$ $ $

At 31 December 2010

- Cost 1,349,142 639,264 1,988,406

Accumulated depreciation 675,587 459,517 1,135,104

Net book amount 673,555 179,747 853,302

year ended 31 December 2011

Opening net book amount 673,555 179,747 853,302

Additions 35,759 386,005 421,764

Depreciation 102,761 120,430 223,191

Closing net book amount 606,553 445,322 1,051,875

At 31 December 2011

- Cost 1,376,351 1,006,102 2,382,453

Accumulated depreciation 777,770 563,258 1,341,028

Net book amount 598,581 442,844 1,041,425

Note 9: Payables2011 2010

$ $

Current:

Trade creditors 426,931 231,843

Accruals 1,367,309 406,408

Other liabilities 414,943 446,709

2,209,183 1,084,960

Note 10: Program surpluses carried forward2011 2010

$ $

Minerals Council of Australia 20,226 -

Minerals Tertiary Education Council 594,560 315,629

614,786 315,629



Note 11: Memberships, contributions and grants in advance

2011 2010

$ $

(a) Current:

Minerals Council of Australia 617,641 3,750

617,641 3,750

(b) non-current:

Minerals Council of Australia 13,500 -

13,500 -

Note 12: Reserves and accumulated funds2011 2010

$ $

(a) Reserves:

Available-for-sale financial assets revaluation reserve 11,100 239,700

Campaign reserve 538,200 -

549,300 239,700

Movements:

Available-for-sale investments revaluation reserve:

Balance at 1 January 239,700 -

Revaluation (note 6) (228,600) 239,700

Balance at 31 December 11,100 239,700

Campaign reserve

Balance at 1 January - -

Transfer from retained earnings 538,200 -

Balance at 31 December 538,200 -

(b) Accumulated Funds:

Accumulated funds at the beginning of the financial year 8,325,257 7,813,294

Net operating surplus for the year 689,190 511,963

Transfer to campaign reserve (538,200) -

Accumulated funds at the end of the financial year 8,476,247 8,325,257



(c) nature and purpose of reserves:

(i) Available-for-sale investments revaluation reserve

Changes in the fair value of investments classified as available-for-sale investments are taken to the available-for-sale revaluation reserve, as described in note 1(h). Amounts are reclassified to profit and loss when the associated assets are sold, or impaired.

(ii) Campaign reserve

An excess of funds contributed over costs incurred for an advertising campaign through the Australian Trade and Industry Alliance has been set aside in the campaign reserve for use in future similar purpose advertising campaigns.

Note 13: Director and executive disclosures

(a) Directors

The following persons were directors during the financial year:

(i) Chairman - non-executive

Mr P Johnston

(ii) Non-executive directors

Mr J Borshoff Mr T Netscher

Mr T Burgess Mr D Overall

Mr S French Mr D Peever

Mr P Freyberg Mr G Robinson

Mr G Halverson Mr D Saxelby

Mr A Michelmore Mr I Smith

Mr B Munro Mr H van Dalsen



(b) Key management personnel

The following persons were the key management personnel with the greatest authority for the strategic direction and management of the Council during the financial year:

name Position

Mr M H Hooke Chief Executive

Mr B M Pearson Director - Corporate Affairs, and Deputy to Chief Executive

Mr B E Mitchell Director - Public Affairs

Ms M L Stutsel Director - Health, Environmental & Social Policy

Mr J H Kunkel Director - Taxation & Industry Economics

Mr S J Marris Director - Industry Policy (from 1 January 2011)

Mr K D Tuckwell Executive Director - Minerals Tertiary Education Council (to 30 September 2011)

Mr G H Lind Executive Director - Minerals Tertiary Education Council (from 1 October 2011)

Mr C J Fraser Executive Director - Victorian Division

Mr P D Stewart Executive Director - Northern Territory Division

Ms M M Salmon Director - Administration & Finance

Mr I R Bowden Finance Manager

All of the above key management personnel, except those who commenced during 2011, were also specified key management personnel for the whole of the year ended 31 December 2010, except J H Kunkel, P D Stewart and M M Salmon, who commenced in their positions on 1 February 2010, 8 November 2010 and 22 March 2010 respectively.



(c) Remuneration of directors and key management personnel

(i) Principles used to determine the nature and amount of remuneration

The objective of the Council’s key management personnel reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns reward with achievement of strategic objectives and the creation of value for members, and conforms with market best practice for delivery of reward. In consultation with external remuneration consultants, the Council has structured a remuneration framework that is market competitive and complementary to the reward strategy of the Council. The framework provides a mix of fixed and variable pay, and as personnel gain seniority within the Council, the balance of this mix shifts to a higher proportion of an “at risk” component.

(ii) Directors’ fees

The directors are not entitled to any remuneration and retirement benefits for their services.

(iii) Executive pay

The key management personnel pay and reward framework has 3 components: � base pay and benefits � short-term performance incentives � other remuneration such as superannuation

(a) Base pay

Base pay is structured as a total employment cost package which may be delivered as a combination of cash and non-financial benefits at the personnel’s discretion. Key management personnel are offered a competitive base pay that comprises the fixed component of pay and rewards. External remuneration consultants provide analysis and advice to ensure that base pay is set to reflect the market for a comparable role. Base pay for key management personnel is reviewed annually to ensure that the pay is competitive with the market. Key management personnel pay is also reviewed on promotion. There are no guaranteed base pay increases included in any key management personnel’s contracts.

(b) Short-term performance incentives (STI)

Each key management personnel has a target STI opportunity depending on seniority and the accountabilities of the role. KPI’s linked to short-term incentive plans are based on personal objectives and outcomes, and are generic across the team. The remuneration committee and Chief Executive are responsible for assessing whether KPI’s have been met, and determining the amount of STI payable to individual personnel. The STI target component amounts are reviewed annually.

(c) Retirement Benefits

Accumulation benefits are provided to key management personnel by the various funds to which they belong.

(d) Details of remuneration

Details of the total remuneration paid to the listed senior key management personnel are as follows:

2011 2010

$ $

Key management personnel compensation 3,484,625 3,144,881

3,484,625 3,144,881



Note 14: Commitments(a) Operating lease commitments

Commitments in relation to operating leases for office rental and office equipment contracted for at balance date but not recognised as liabilities:

2011 2010

$ $

Due within 1 year 738,512 853,089

Due later than 1 year but not later than 5 years 2,164,283 2,259,401

Due later than 5 years 497,003 1,037,994

3,399,798 4,150,484

The significant lease commitment is in relation to the Council’s lease of its principal office space at 44 Sydney Avenue, Forrest, ACT. The lease renewal commenced on 21 November 2010, for a period of seven (7) years, with an option for a further period of five (5) years. The lease provides for rental increases of 3.75% per annum on the anniversary date of commencement.

(b) Remuneration commitments

Commitments for the payment of salaries and other remuneration under long-term employment contracts in existence at the reporting date but not recognised as liabilities:

2011 2010

$ $

Due later than 1 year but not later than 5 years 52,500 102,500

52,500 102,500

Amounts disclosed as remuneration commitments include commitments arising from the service contracts of key management personnel referred to in Note 13, that are not recognised as liabilities and are not included in the key management personnel compensation. Payment of the amounts disclosed is dependent upon the relevant key management personnel meeting stipulated service periods.

No person should rely on the contents of this publication without first obtaining advice from a qualified professional person.

The Minerals Council of Australia, and the authors, editors and any consultants accept no liability (including liability in

negligence) and take no responsibility for any loss or damage which a user of this publication or any third party may suffer or

incur as a result of reliance on this publication, and in particular for:

(a) any errors or omissions in this publication;

(b) any inaccuracy in the information and data on which this publication is based or which is contained in this publication;

(c) any interpretations or opinions stated in, or which may be inferred from this publication.

Minerals Council of Australia

Walter Turnbull Building 44 Sydney Avenue FORREST Canberra ACT 2603

T: (+61) 2 6233 0600 F: (+61) 2 6233 0699 www.minerals.org.au

ACN 008 455 141 ABN 21 191 309 229 ISBN 978 1 920891 190

2011 annual reportmInerAls councIl oF AustrAlIA

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