South Australia’s Mining and Petroleum Services Centre of Excellence

10th GMUSG / SACOME Annual Resources

Industry Conference & Trade ExpoWhyalla – 4 September 2014

Paul GoiakDirector, Industry Participation

South Australia – Economic Priorities

• Economic Priority 1 – Unlocking the full potential of South Australia’s resources, energy and renewable assets

opportunities for mining services companies

• Economic Priority 4 – The Knowledge State –attracting a diverse student body and commercialising our research

co-investment between local and global industry

our research institutions will drive development

a place of knowledge creation and innovation

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• Economic Priority 6 – Growth through innovation

adopt new ways of doing things

use advanced technologies

build globally competitive high value firms

• Economic Priority 10 – South Australia’s small businesses have access to capital and global markets

small businesses are the most effective engine for job creation

continue to accelerate the growth and transition

globally competitive opportunities

South Australia – Economic Priorities

South Australian Resources Industry Indicators

• Petroleum ($531.3m) and Minerals ($116.3m)

$647.6 million EXPLORATION EXPENDITURE - 2013/14

• ~$30 billion of potential capital for Minerals and Energy projects in the Major Developments Directory RECORD HIGH

$1.8 billion new CAPITAL EXPENDITURE – 12mth to June 2014

• Minerals ($5.4 b) and Petroleum ($1.6 b) RECORD HIGH

$7.0 billion resources PRODUCTION - 2013

• Minerals ($4.6 b) and Petroleum ($0.2 b) RECORD HIGH

• 39% of South Australia’s total exports ($12.4 b)

$4.8 billion EXPORTS – 12mth to June 2014

• Minerals ($157.4 m) and Petroleum ($133.9 m) RECORD HIGH

$291.3 million ROYALTIES – 2013/14

• more than double - 6,641 ten years ago RECORD HIGH

16,208 people EMPLOYED – May 2014

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Industry Participation Office

Strategic Capability Development

• Understand what the customer wants – listen to industry

• Understand the demand forecast and business plan for goods and services

• Customer will want to do business if you:

Lower Cost Increase convenience Customise a solution

• Value-add before or after production phases

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What does Industry Participation Office do?

Growing Supply Chain Involvement for local SMEs

Industry Participation Office (IPO)

Builds capabilities of SA companies allowing them to increase participation in

local, national and international resources supply chains.

This is done by…

• Forecasting opportunities in the resource and developing business cases

• Developing supplier capabilities and future businesses

• Connecting suppliers with procurement packages

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Industry Participation Office

PACEManufacturing

DEVELOP

ICNSACONNECT

MIPO FORECAST

Review results of procurement packages

Improve industry awareness

Pre-qualification

Match local suppliers to project packages

Identify companies to be developed

Capability development programs

Promote clustering

National Water Sector Manager

Supply chain Gap Analysis

Policy Development

Centre of Excellence

Research & Development

Attract new competencies

Strategic Capability Development7

Example: Supply Chain Gap Analysis

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Mining and Petroleum ServicesCentre of Excellence (CoE)

• Supporting the development of South Australian capabilities that assist local supply chains to compete nationally and globally, providing high value added products and services to the resources sector

Objective

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Build on existing SA comparative advantage, either in terms of research, industry or natural endowments

Have industry funding or in-kind support

Have material impact and be identified as priority for industry

Solve problems which industry can’t solve itself, for reasons such as incomplete or asymmetrical information or common resource problems

Have multiple partners and require a collaborative approach, and

Be publicly reportable

Criteria for Funding Project

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• Onshore Petroleum Centre of Excellence training facility

• Australia's first comprehensive ICT Roadmap for Minerals and Energy;

• Brukunga Mine Skills Centre Feasibility Study;

• Remote Mining Operations Centre;

• Chair of Geo-statistics and Qualitative Geology;

• South Australian Research Fellowship in Unconventional Energy Resources

• The Real-Time Drill Site; and

• Australian Copper/Uranium Transformation Research Hub

The following projects are being supported by the CoE:

Projects to date

New Onshore Oil and Gastraining facility at Tonsley

12Source: Photograph, courtesy of TAFE SA

ICT Roadmap for Minerals and Energy

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ICT Roadmap for Minerals and Energy

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• Objective - to determine current & future role that SA ICT industry can play to assist productivity & innovation in the minerals & energy sectors

• Published the roadmap reports www.southaustralia.biz/ICTRoadmap

• Holding a series of roundtable events to bring together experts from the minerals and energy sectors, ICT industry, METS & defence sectors and research institutions

• Funding project manager and events

Remote Mining Operations Centre

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• Implementation of a pilot project to determine the feasibility of a collaborative, open platform for the minerals and energy sectors

• $383k funding plus in-kind support from Oz Minerals & HP

Future Projects

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Can be generated by SMEs, the resources sector or researchers

Can evolve through existing process

Can be brand new ideas

Need to meet CoE criteria

Need to leverage SA comparative advantage

www.statedevelopment.sa.gov.au

Development of a commercial, sustainable ROC on a collaboration platform that fosters an ICT innovation ecosystem for the resources industry

Funded by Mining and Petroleum Services Centre of Excellence

ROCAIIA

UniSA

Oz Minerals IPACS

HP

Department of State

Development CoE

Remote Operating Centre (ROC)Collaboration Project

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Disclaimer

The information contained in this presentation has been compiled by the Department of State Development and originates from a variety of sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for general information only and does not purport to be a professional advice. No warranty, express or implied, is given as to the completeness, correctness, accuracy, reliability or currency of the materials.

The Department of State Development and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the information for any loss or damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of these materials. The Department of State Development reserves the right to update, amend or supplement the information from time to time at its discretion.

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