what’s down the track? 1 nicole roocke the chamber of minerals and energy of western australia...
TRANSCRIPT
1
What’s Down the Track?
Nicole RoockeThe Chamber of Minerals and Energy of Western Australia (CME)
23 October 2014
2
About CME
• Peak resources sector representative body in WA
• In operation for 113 years
• Over 200 member companies representing over 95% of resources production by value in WA
• Represents both large and small companies across the mining and oil and gas sectors
3
Western Australian resources sector
In 2013-14, the sector accounted for:
• $121.6 billion in sales value – a 20% increase on 2013 levels
• 91% of state and 48% of national merchandise export incomes
• 22% of state government income
As at August 2014, 95,800 people directly employed in mining and petroleum
4
Goldfields-Esperance resources sector
In 2013-14, the Goldfields-Esperance region:• Produced commodities totalling $9.1 billion• Accounted for 7.5% of total minerals and
petroleum sales value • 3rd largest region contributor• Provided 84% of the state’s nickel and 65% of
the state’s gold value• Employed 22% of the population in mining
related roles
5
Key WA export destinations
Gold Nickel
6
Resources Sector Outlook
Supply and demand forecasts:
– people– energy– water– roads– rail– ports– aviation
7
Resources Sector Outlook
Preliminary findings indicate:– Workforce will decline, with FIFO remaining
at around 60%
– Energy and water requirements will continue to increase
– Perth airport passenger volumes likely to decline to 2016 before increasing out to 2020
8
Challenges
• Weakening commodity prices
• International investment and competitiveness
• Changing workforce dynamics
• Cost of doing business (taxation, royalties, approvals, removing red-tape)
• Maintaining a social license to operate
9
Decreasing exploration
Jun-
2011
Sep-
2011
Dec
-201
1
Mar
-201
2
Jun-
2012
Sep-
2012
Dec
-201
2
Mar
-201
3
Jun-
2013
Sep-
2013
Dec
-201
3
Mar
-201
4 -
500
1,000
1,500
2,000
2,500
Petroleum Copper Nickel, Cobalt Gold Iron Ore
Uranium Other Australian Total
$million
Source: ABS
Exploration expenditures by commodity, Western Australia, Unadjusted
10
Cost of doing business
• Ever-increasing government taxes, levies and charges
• “Red tape”
• Project approval delays
• Unnecessary and outdated regulation
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Royalties
12
Positive community perceptions of the resources sector
“Provide funds for local areas with regards to sporting facilities, entertainment venues so this
can only be a good thing.”
“It is a dynamic industry that provides a lot of employment for this state and is the
backbone of our economy.”
“Provides an income to many people, my house included. We have been able to build a home we
otherwise never could have afforded.”
“The mining industry in West Australia whether iron ore, gold, oil and gas has been a wonderful
uplift for the economy.”
13
Negative community perceptions of the resources sector
“Put pressure on everyone’s living
cost” “Western Australians should be employed in these industries ahead of interstate and international
workers”
“The rich gets richer”
“Only interested in making a profit”
“Mining in areas of importance to indigenous communities and natural biodiversity”
“Wreck the landscape, environmental issues…”
14
WA vs the World
Zircon
Salt
Rutile
Nickel
LNG
Iron ore
Ilmenite
Gold
Garnet
Diamonds
Alumina
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Western Australia Rest of Australia Rest of World
Source: DMP, BREE, EnergyQuest and USGS
Thank you
The Chamber of Minerals and Energy of Western AustraliaLevel 10, 2 Mill Street
Perth WA 6000T 08 9021 2155
E [email protected] www.cmewa.com.au