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20131213 michelin presentation


Michelin presentation - Paul Heithersay

Michelin presentation - Paul Heithersay

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  • Notes:
  • Government SupportWorld leading geoscientific data.Opening up new areas for exploration. Co-funding for exploration drilling.Streamlined approval processes


  • 1. OVERVIEW OF SOUTH AUSTRALIA’S RESOURCES SECTOR AND INITIATIVES Dr Paul Heithersay Deputy Chief Executive, Resources and Energy, DMITRE and Chief Executive, Olympic Dam Task Force
  • 2. THE STATE OF SOUTH AUSTRALIA • KEY LOCATION FOR SUSTAINABLE BUSINESS • A robust, resilient, knowledge based economy – with capacity to grow. • World leading minerals and energy assets – ranked as Australia’s top destination for resources investment.1 • Leading agricultural region producing premium quality food and wine for global export markets. • A strong manufacturing base, including automotive, submarines and warships and high-value advanced manufacturing. • Home to Australia’s wind and solar power industries. State population 1.6 million Adelaide population 1.2 million • A world-class education system; leader in research and development; flexible and skilled workforce; and the fifth most liveable city in the world.2 Minerals & Energy 1 2 Agriculture Renewable Energy Resourcestocks 2012 World Risk Survey EIU: A Summary of Liveability Ranking and Overview August 2012 Advanced Manufacturing Defence Education Health 2
  • 3. ECONOMY OF STRENGTH Gross State Product $91 billion Progressive and steady growth • Over two decades of uninterrupted economic growth • Linked to fast growing Chinese, Indian and other Asian economies • Major developments nearing $100 billion fuelling future growth • 6.0% unemployment – seasonally adjusted (September 2013) Services (44%) Construction, housing and utilities (19%) Retail & wholesale trade (9%) Manufacturing (9%) Agriculture, forestry & fishing (6%) Mining (5%) Major Developments $94 billion Minerals & Energy (42%) Defence (20%) Urban Development (16%) Manufacturing & Industrial Development (7%) Health, Education & Other Services (5%) Infrastructure (5%) Industry highlights • 7% of Australia’s population • 80% of Australia’s uranium reserves • 70% of Australia’s copper resources • 60% of Australia’s wine exports • 50% of Australia’s wind power capacity • 40% of Australia’s automotive manufacturing • 30% of Australia’s defence industry • 25% of Australia’s onshore gas resources • 20% of Australia’s grain production Water Management (4%) Exports $11 billion Metals (34%) Wheat (14%) Wine (10%) Meat (6%) Other (35%) Export Destinations East Asia (excl. China) (33%) China (20%) United States (9%) Middle East (8%) European Union (8%) India (7%) Source: ABS 5220, 5368, 6202, Department of Treasury & Finance Rest of the world (16%) 3
  • 4. ADVANTAGES OF SOUTH AUSTRALIA Low cost Australian business location • • • Labour Costs – South Australian labour costs are 10% below the Australian average (including 20% below Western Australia, and up to 10% below New South Wales, Queensland and Victoria). Property Prices – Adelaide’s residential, commercial and industrial property prices are amongst the lowest of Australia’s mainland capital cities. Construction Price – Adelaide is competitive in terms of construction costs for the development of new multi-residential, commercial and industrial properties. • Average Weekly Earnings ($) 1,400 1,200 1,000 800 600 400 200 0 Location • • South Australia is located at the centre of Australia’s road, rail and air logistics networks; with time and cost advantages for air and sea freight transport to key Asian markets. The South Australian time zone (Greenwich Mean Time +9.30 hours, or +10.30 during Daylight Savings time) is within two hours of major Asia Pacific centres. Government open for business • • • • • • The South Australian Government is pro investment, supporting business including: Direct access to key government decision-makers. A dedicated Invest in South Australia team and renowned case management service to streamline investors’ establishment and approvals processes. An ambitious and successful red tape reduction program. A commitment to create 100,000 training places within broader activity to meet industry demand for skilled workers. Pro-investment programs including the Plan for Accelerating Exploration (PACE), which has resulted in extraordinary growth in the State’s minerals and energy sector. South Australia Australia ACT NT WA NSW QLD VIC TAS KPMG ranked Adelaide as having lower business location costs than Sydney, Melbourne and Brisbane in their 2012 international business location costs study Adelaide: The most liveable city • The 5th most liveable city in the world by the Economist Intelligence Unit. • The most liveable city in Australia by the Property Council of Australia. • The cheapest of the Australian mainland capital cities according to Mercer’s Cost of Living Survey. • The safest city in Australia by Suncorp Bank’s Family Friendly City Index. 4 Source: ABS 6302, 6416, AECOM: The Blue Book 2012, KPMG: Competitive Alternatives 2012, EIU: A Summary of Liveability Ranking and Overview August 2012, Property Council of Australia: Australian City Liveability Index 2011, Mercer: Worldwide Cost of Living Survey 2012, Suncorp Bank: Family Friendly City Report
  • 5. THE SOUTH AUSTRALIAN RESOURCE SECTOR World Class Deposits A WORLD CLASS DESTINATION FOR RESOURCE INVESTMENT Over the last decade, major operating mines has increased from 4 to 21, with another 30 major developments underway. With continued exploration now is an opportune time to become involved in some of these projects, many of which are requiring cornerstone investors to develop their full value. Copper 67% of Australia’s economically demonstrated copper resources Gold 30% of Australia’s economically demonstrated gold resources Uranium South Australia is resource rich with significant deposits of copper, gold, iron ore, uranium and mineral sands. 78% of Australia’s identified resources Iron Ore 14 billion tonnes in identified resources 5 Rare earths Minerals Sands Silver Coal Zinc Lead Graphite 4 mines in 2003 21 mines in 2013 Nickel Tin
  • 6. South Australia’s Decade of Growth South Australian Minerals Industry Indicators 2001–2012 Mineral exploration $400.0 Mineral production value $6,000 $350.0 $5,000 $300.0 $4,000 $200.0 $3,000 $150.0 $100.0 $2,000 $50.0 $1,000 $m $- $- Capital expenditure $900 Net minerals industry value $7,000 $800 $6,000 $700 $5,000 $500 $4,000 $million $600 $400 $300 $3,000 $2,000 $200 $1,000 $100 $- $m $- Mineral royalties $140.0 Mineral exports $4,500 $120.0 $4,000 $3,500 $100.0 $2,500 $2,000 $1,500 $1,000 $500 $million $3,000 $ million Lead indicators – influenced by fluctuating economic conditions $ millions $250.0 $80.0 $60.0 $40.0 $20.0 $$-
  • 7. Mines and Developing Mineral Projects • • 21 Major Mines ~30 Developing Mineral Projects • 5 World Class discoveries in last decade • • • • • Prominent Hill Jacinth-Ambrosia, Carrapateena Four Mile Hillside 2004 2013 December 2013
  • 8. Mineral Exploration Activity 2013 2004
  • 9. Mineral Exploration in Australia by Commodity 2012/13 South Australia – increasing share of Iron Ore (largest outside WA) maintaining 33% of Copper & significantly decrease in share of Uranium COPPER IRON ORE URANIUM Other $30.30 3% NSW $7.3 2% Other $10.2 15% Other $28.4 9% WA $76.6 24% NT $9.6 3% $319.3 million QLD $91.1 29% Source: ABS Cat. 8412.0 SA $106.3 33% SA $10.3 15% $69.5 million WA $35.1 50% Source: ABS Cat. 8412.0 SA $47.9 5% QLD $3.9 6% NT $10.0 14% $1,011.3 million WA $921.8 91% Source: ABS Cat. 8412.0 NT $11.3 1%
  • 10. Copper 3 operational copper mines 4 development projects 40 prospects 67% of Australia’s economically demonstrated copper resources Many of the deposits in South Australia’s copper provinces are covered by a sequence of younger rocks that have effectively hidden many large copper deposits from the early explorers. 10
  • 11. Precious Metals 4 operational mines 8 development projects 37 prospects 30% of Australia’s economically demonstrated gold resources Gold mineralisation is widespread in South Australia and occurs in most geological provinces. 11
  • 12. Uranium 3 operational mines and 1 approved mine 78% of Australia’s identified resources 25% of the world’s uranium resources Olympic Dam – the world’s largest uranium deposit South Australia has an unusually high incidence of ‘felsic magmatic rocks’, these provide an excellent naturally elevated source for uranium. 12
  • 13. Iron Ore 3 operational iron ore mines 20 development projects 14 billion tonnes in identified resources Forecast production of 105Mtpa by 2025 Forecast Iron Ore Production (Mtpa) 120 North Gawler Craton South Gawler Craton Braemar Province 100 80 60 40 20 0 2013 13 2018 2023 2028 2032 Source: Deloitte Regional Mining & Infrastructure Plan
  • 14. Oil and Gas Cooper Basin Exploration & development for 50+ years Otway Basin Mature & immature conventional/unconventional plays Arkaringa Basin Unconventional plays with significant shale oil potential Bight Basin BP & Statoil leading offshore exploration An emerging unconventional oil & gas boom. 14
  • 15. Resources Infrastructure $10+ billion in announced infrastructure Path to Market Projects 6 port projects, multiple slurry pipelines, rail upgrades Mine Infrastructure Projects 3 desalination plants, magnetite beneficiation plants Electricity transmission upgrades Eyre Peninsula, North Gawler Craton, Braemar Province Source: Deloitte Regional Mining & Infrastructure Plan 15
  • 16. Disclaimer The information contained in this presentation has been compiled by the Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) 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 professional advice. No warranty, express or implied, is given as to the completeness, correctness, accuracy, reliability or currency of the materials. DMITRE 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. DMITRE reserves the right to update, amend or supplement the information from time to time at its discretion. 16