Presentation by Paul Goiak, Director Industry Development, Mining Industry Participation Office. Paul talks about growth opportunities in the METS sector.

1. PACE Supply Chain Development
Program
IDENTIFYBrief–9February2016
www.statedevelopment.sa.gov.au
Paul Goiak
Director, Industry Development

2. www.statedevelopment.sa.gov.au
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.

3. Background
3Department of State Development
Paul Goiak
Director, Industry Development
Department of State Development
Supply Chain Development: Minerals, Energy, Information and
Communication Technologies (ICT), Defence (Defence SA)
Administration of economic development programs aimed at growing
South Australian supply chain capability and capacity
Sector Experience: Automotive, Ophthalmics (lens manufacture),
Uranium Mining, ICT Wholesale Distribution, Public Service

4. What will be covered
4Department of State Development
• Why are METS so important?
• Success drivers (and constraints) for METS companies.
• Role of Government
• Where is the opportunity for growth?
• Why the PACE Supply Chain Development Program?

5. METS supply a very wide range of services
What are METS?
Mining EquipmentTechnology and Services
5Department of State Development
Exploration Development/Operation
Decommission/
Rehabilitate
Feasibility & Approvals
Information
Communications
Technology (ICT)
Geophysical Surveys
Drilling
Equipment manufacture
Metal fabrication
Civil Contracting
Automation/ Control
Oil & Gas well services
Accommodation camps
Maintenance
Water treatment
Logistics & support
Environmental services
Removal of facilities
Land Rehabilitation
Front End
Engineering Design
Professional services
eg Land Access,
Asset Evaluation
Typical
activities

6. 6Department of State Development
Activity Examples of SA Companies
Information Communications
Technology (ICT)
Maptek, SRA
APC Technology, Codan/Minelab, Speedcast
Environmental Services Coffey, Golder, Parsons Brinckerhoff, URS, Water Data Services, Cooe,
Australian Groundwater Technologies
Professional services GPA, Fyfe, Jacobs, WorleyParsons, GHD,
Aurecon, Exact Mining, Kempe Engineering
Specialised equipment (mining)
Specialised equipment (petroleum)
Liebherr, Cavpower
Thermo Fisher, Scantech
X Drilling, Gearhart, Transco
Automation Sage, Logicamms, Atsys
METS in SouthAustralia

7. 7Department of State Development
Activity Examples of SA Companies
Oil & Gas - Drilling & Completion Saxon Energy, Baker Hughes, Ensign, Condor, Farley Riggs
Water Osmoflo, Century Products, Veolia, Hydrus Technology, Baleen Filters
Basetec, RPC Pipe
Metal fabrication Ahrens, Manuel, Samaras, SA Structural,
Ottoway Fabrication/Ottoway Engineering, Pipetech, Smart Fabrication
Civil Contracting Exact Mining, Lucas TCS, Bardrill
Electrical Cowell Electric, RJE, Mayfield, Nilsen
Accommodation camps
(manufacture & camp services)
KJM, Ausco, Australian Portable Camps
METS in SouthAustralia

8. METS State and National objectives
8
Oil, gas and energy resources
Mining, equipment, technology and services
Medical technologies and pharmaceuticals
Food and agribusiness
Advanced manufacturing
Industry Growth Sectors
METS are a priority for State and Federal governments

9. SouthAustralia’s share ofAustralia’s
key mineral resources
Department of State Development

10. METS supply a very wide range of services
Why grow the METS sector?
10Department of State Development
• Diverse nature of METS will grow economic complexity of SA
• Technology driven sector – long term jobs
• Global growth will continue to drive demand
• Global market – jobs/capabilities remain after primary commodity exhausted
• Complementary to our comparative advantage – Oil & Gas, Copper, Uranium,
Graphite, Iron Ore

11. METS
METS in SouthAustralia
(more significant than previously thought)
Gross sales $3.9B
Total Employment1 17,830 FTE
GSP contribution1 $2.4B (2.6%)
Revenue/employee = $220,000
Source: Econsearch METS analysis, 2012/13 input/output tables
1 Tier 1 and Tier 2
National average METS contribution to GDP 4.7%
MINERALS & PETROLEUM
Gross sales $6.2B
Total Employment2 15,800 FTE
GSP contribution3 $3.3B (3.7 %)
Sources:
Gross Sales, DSD
ABS 5220.0 and Data Cube
2 Direct only
3 exclude taxes, royalties and subsidies.

12. How do we grow?
Successful METS do their homework
12Department of State Development
Globally
competitive
Connect and build relationships
Understand the Issues
Provide innovative solutions
Growth

13. Are there constraints ?
13
Department of State Development
Source: 2015 Austmine National Survey
SA/NT not leveraging international opportunities like other States
Base: Total Sample (n=432)
Q23. Does your company export equipment, products, services or technology to other countries?
Companies Currently Exporting:
by State, 2015
66% 64%
74%
66%
82%
36%
0%
20%
40%
60%
80%
100%
Total NSW & ACT WA VIC & TAS QLD SA & NT
Top Growth Opportunities:
by State, 2015 (selected)
Growth
Opportunity
Total QLD SA &
NT
International /
Export
42% 58% 20%
Industry
Collaboration /
Partnership
17% 10% 26%

14. What is the role of government?
14Department of State Development Source: A Scorecard for Growing South Australian METS, 2015
• Provide a compelling set of programs for encouraging increased
investment
• Expose local mining services companies to global supply chains
as a measure to build relationships
• Provide an environment where technology can be integrated from
universities and the ICT sector into the mining services sector

15. What is the government doing?
15Department of State Development
•Connect and build relationships
•Understand the Issues
PACE Supply
Chain
Development
Program
• Provide innovative solutions
Mining &
Petroleum
Services
Centre of
Excellence
Globally
competitive

16. Where are the opportunities?
16Department of State Development
Tapping external
markets is the
key to growth
0
50
100
150
200
250
300
SA Australia Global
Development Phase Minerals Projects
Capital Cost US$Billion
Feasibility
Committed
Projects
257
7
92
Source: BREE April 2015; SNL Metals and Mining July 2015

17. Where are the opportunities?
17Department of State Development
Source: A Scorecard for Growing South Australian METS, 2015
0
50
100
150
200
250
1989-90
1994-95
1999-00
2004-05
2009-10
2014-15
Labour
Productivity
Capital
productivity
Mining Industry Multifactor Productivity, Australia
Index 2013-14 = 100
Productivity Growth 2014-15, By Industries, Australia
Hours worked basis
-10 -5 0 5 10 15 20 25
Average
Arts and recreation
Professional & technical
Transport & warehousing
Administrative
Construction
Retail trade
Manufacturing
Rental, hiring & real estate
Wholesale trade
Agriculture, forestry & fishing
Accommodation & food
Utilities
Other services
Financial & insurance services
Media & telecommunications
Mining
MFP
Labour
Productivity

18. • Develop relationships, understand value drivers
• Transition companies from other sectors into the resources
sector
• Delivered by industry experts
• Supported by the State Government
Why the PACE Supply Chain Development
Program?
18Department of State Development

19. 19Department of State Development
What’s in the PACE Program?
► Stage 1 – Identify
increasing market intelligence and awareness
► Stage 2 – Develop
developing sales and marketing capabilities
► Stage 3 – Extend
preparing companies for export market opportunities

20. Final word - The world is investing in METS …
20Department of State Development
TSX, the primary stock exchange globally for exploration companies and junior miners, is
transferring its capital raising to the Technology and Innovation space which:
• is the fastest-growing sector on TSX/TSXV since the start of 2013
• is now collectively valued at over $250 billion
• has raised nearly $12 billion in equity capital since the start of 2014
For more key facts visit http://www.bctia.org/Blog/2015/7/3/Canadas-Thriving-Tech-
Sector

21. 21Department of State Development
… are you on board?

22. Thank you
www.statedevelopment.sa.gov.au
PAUL GOIAK
Director, Industry Development
T: 08 8303 2465
paul.goiak@sa.gov.au