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Fiona Park, Resource Trade and Investment - Creating Opportunities for Resource Development and attracting foreign investment

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Fiona Park, Resource Trade and Investment delivered the presentation at the 2013 Mining the Territory Conference. …

Fiona Park, Resource Trade and Investment delivered the presentation at the 2013 Mining the Territory Conference.

Mining the Territory Conference is part of the Northern Territory Resources Week. It provides the perfect platform for stakeholders in the NT mining industry to hear the latest information on this booming region.

For more information about the event, please visit: http://www.miningnt.com.au/miningnt2013conference

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  • 1. DEPARTMENT OF MINES AND ENERGY Creating Opportunities for Resource Development and attracting foreign investment Fiona Park, Director Investment Attraction www.minerals.nt.gov.au
  • 2. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Key features of Government’s draft policy: Framing the Future's strategic goals are: 1. A Prosperous Economy 2. A Strong Society 3. A Balanced Environment 4. A Confident Culture A prosperous economy • Promoting NT in Asia as an investment location • A pro-investment environment • Ensuring that investment in mining benefits the host region 11 September 2013 NT Government Policy Context
  • 3. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY 11 September 2013 Why is the mining sector so important? Only 22% of the Territory Government’s revenue in 2013/14 expected to be self-generated. NT Government heavily dependent on Commonwealth Government funding Vulnerable to changes in GST revenue
  • 4. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY 11 September 2013 Growing own source revenue Taxes and mining royalties $598.6m (2013/14 budget)
  • 5. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Governments at all levels – National, State & Territory, City are involved in investment attraction efforts All do some form of general promotion, however usually a number of focussed areas reflecting top policy priorities. The Northern Territory Government has a unit that does general investment promotion – Invest NT, and one policy focussed investment attraction unit to cater for a priority sector - the Investment Attraction team at the Department of Mines and Energy. 11 September 2013 Why does the NT government play a role in attracting investment?
  • 6. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Short term: • Difficulties raising finance Longer-term: Market failures in providing information to investors • Difficulty for small companies to reach a large and diverse investor base • Cultural factors – cold calling not an effective tactic • Government has perceived credibility when providing information • Overcoming negative perceptions about investing in Australia 11 September 2013 Why does the NT government play a role in attracting investment?
  • 7. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Within the Northern Territory Geological Survey We market NT projects to potential investors in China, Japan and South Korea Take industry delegations to meet investors overseas Hold events in Australia to make investment introductions Only targeted, specific business development activities Investment Attraction Division 11 September 2013
  • 8. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY We have been regularly visiting and building an investment database in 3 countries: • China – since 2006 • Japan since 2008 • South Korea – since 2010 Strategic research in 2010 determined that China, Japan and South Korea should be the NT’s target markets Updated internal market research in 2012/13 reaffirmed those as the three highest potential markets Why China, Japan and South Korea? 11 September 2013
  • 9. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Long-term factors • First urbanisation and industrialisation, now policy of inclusive growth • New geographical investment sources • Reducing number of new major discoveries • Capacity to increase Offshore Foreign Direct Investment (OFDI) • Changing structure of the economy • Consolidation in China’s mining sector China – investment drivers 11 September 2013
  • 10. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY China – commodity demand 11 September 2013 China Very high High Moderate Low or very low Gold Iron ore Lithium Manganese Niobium REEs Titanium Tungsten Uranium Copper Phosphate Potash Salt Tantalum Tin Vanadium Zinc Lead Molybdenum Nickel Silver
  • 11. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Japan – investment drivers 11 September 2013 Long-term factors • Developed, wealthy nation • Limited natural resources - need to secure resources for industry • Resource conflict • Concern about being overlooked due to rise of China • Long-term thinking
  • 12. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Japan – commodity demand 11 September 2013 Japan Very high High Moderate Low or very low Copper Lithium Niobium REEs Tantalum Titanium Tungsten Vanadium Lead Phosphate Gold Salt Silver Uranium Iron ore Manganese Nickel Zinc Molybdenum Potash Tin
  • 13. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY South Korea – investment drivers 11 September 2013 Long-term factors • Developed, wealthy nation • Mismatched natural resources - needs to secure resources for high tech industries • South Korean government has signalled increased interest in the NT
  • 14. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY South Korea – commodity demand 11 September 2013 South Korea
  • 15. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Let us promote your project 11 September 2013 We assist junior exploration companies that: • Have a Territory project with granted exploration licenses • Either early stage or advanced projects • Clear exploration objectives (commodities) and company strategy • Management experience and a technical team in place • Some financial capacity to participate in events and promotions • Are interested in meeting potential investors from China, Japan or South Korea
  • 16. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Results to date 11 September 2013 To date there have been deals done with companies from China, Japan and South Korea The majority of investment has come from Chinese companies. A total of $268m deals were successfully completed. $233m of those were initiated by our Investment Attraction program. Our success rate is 59% deal completion versus 44% for the deals in which we had no involvement Year announced Amount ($m) Commodity 2007 83.0 copper, cobalt, nickel 2008 22.9 rare earths 2009 0.6 gold, base metals 2009 81.6 uranium 2009 1.4 iron ore 2010 15.7 rare earths 2010 1.2 uranium 2011 15.4 iron ore, vanadium 2012 1.5 gold, rare earths 2012 10.0 rare earths 233.2
  • 17. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Upcoming activities 11 September 2013 October/November 2013 – Ministerial investment delegation to Japan, South Korea and China March 2014 – Present at the NTGS Annual Geoscience Exploration Seminar (AGES) in Alice Springs Early 2014 – Domestic promotional roadshow to visit Australian branch offices of potential investors 2013/14 – updated websites and marketing materials September 2014 (dates tbc) – Australia China Minerals Investment Summit in Adelaide, with South Australian government
  • 18. www.nt.gov.auDEPARTMENT OF MINES AND ENERGY Contact 11 September 2013 Investment Attraction Division Northern Territory Geological Survey Department of Mines and Energy 08 8999 6222 cindy.mcintyre@nt.gov.au