On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum

 
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On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE
                                      Summer 2019
Print post approved PP 665002/00062

                                              On the rise
                                              Gas projects push WA jobs
On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
The first edition of Prospect magazine for 2019 coincides with
                                           a positive start to the New Year.
                                           Confidence is returning to the Western Australian economy and new jobs are being created.

                                           Western Australia’s total employment rose through last year to November 2018, with a rise in full-time employment –
                                           up four per cent or 35,520 full time workers.

                                           The largest increases in employment through the year to the December quarter 2018 were in the State’s mining (up
                                           24,027) and manufacturing (up 23,786) sectors.

                                           Our State continues to lead the way nationally as the main minerals and petroleum exporting region of Australia and
                                           produces a significant proportion of the world’s minerals and petroleum commodities.

                                           Western Australia accounted for over half of Australia’s mining output (52 per cent gross value added) in 2017–18,
                                           during which minerals and petroleum sales rose nine per cent to $115 billion, mainly due to increased sales of LNG.

                                           This edition of Prospect covers recent successes across Western Australia’s resources sector, including for Western
                                           Australian gas giant Woodside in Karratha (page 2); the 2018 Resources Sector Awards for Excellence (24); and the
                                           130th anniversary of Western Australia’s Geological Survey (20).

                                           New industries also feature in this edition, including a lithium projects update (page 8); the launch of Airbus Defence
                                           and Space’s pseudo-satellite aircraft in Western Australia (page 23); and opportunities in renewable hydrogen for
                                           Western Australia (11).

                                           The Western Australian Government is continuing to work with the State’s resources industry across the board to
                                           ensure local jobs are maximised on new projects, and we are committed to implementing our Plan for Jobs and
                                           diversifying the economy.

                                           Mark McGowan
                                           PREMIER; MINISTER FOR STATE DEVELOPMENT, JOBS AND TRADE

                                           Bill Johnston
                                           MINISTER FOR MINES AND PETROLEUM

ISSN 1037-4590

Prospect                                                                                                                   DEPARTMENT OF JOBS, TOURISM, SCIENCE
Western Australian Prospect magazine is published quarterly by the Western Australian Government’s Department of           AND INNOVATION
Mines, Industry Regulation and Safety (DMIRS) and Department of Jobs, Tourism, Science and Innovation (JTSI).
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Disclaimer                                                                                                                 DEPARTMENT OF MINES, INDUSTRY REGULATION
Prospect has been compiled in good faith by the Department of Mines, Industry Regulation and Safety (DMIRS) and
Department of Jobs, Tourism, Science and Innovation (JTSI). Opinions expressed in Prospect are those of the authors        AND SAFETY
and do not necessarily represent the views, or have the endorsement of DMIRS and JTSI. DMIRS and JTSI has                  Mineral House, 100 Plain Street
used all reasonable endeavours to ensure the material contained in this publication is correct, but it is intended to be
general in nature. No representation is made with regard to the completeness or accuracy of the information contained      East Perth, Western Australia 6004 • AUSTRALIA
herein. DMIRS and JTSI disclaims any or all liability for loss or damage whatsoever suffered or incurred resulting         Tel: +61 8 9222 3333 • Fax: +61 8 9222 3862
from the use of or reliance on information contained herein. Readers of this publication should make and rely on their
own enquiries, research and judgements in making decisions affecting their own or any other persons’ interest.             www.dmirs.wa.gov.au
All currency figures in Prospect are in Australian dollars unless otherwise specified.

                   Cover Photo: Pluto LNG Plant onshore gas plant employees. Copyright Woodside Energy Ltd.
                   (story page 2)

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On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
In this issue

                                        05                                                        08                                                        12

                                        18                                                      20                                                          23
05		 LNG jobs taskforce                                               18		 New MRIWA CEO
Government and industry come together to                              The Minerals Research Institute of Western Australia appoints new
maximise jobs and economic benefits for WA.                           CEO Nicole Roocke to lead the way with mineral research priorities
                                                                      for the State.

08		 New mines                                                        20		 GSWA marks 130th anniversary
Two new lithium mines in WA’s Pilbara region
officially open.                                                      From plane-tables and glass-plate negatives, to GPS and drones,
                                                                      the Geological Survey of Western Australia celebrates its rich history.

12		 Asian engagement                                                 23		 From the UK to WA and into space
The WA Government brings Asian Business                               Airbus Defence and Space chooses Western Australia to launch its
Councils together to discuss job creation and                         High Altitude Pseudo Satellites program.
future economic prosperity.

           Department of Mines, Industry Regulation and Safety   Department of Mines, Industry Regulation and Safety   Department of Jobs, Tourism, Science and Innovation
           Department of Jobs, Tourism, Science and Innovation                 www.dmirs.wa.gov.au                                     www.jtsi.wa.gov.au
On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
Pluto LNG onshore gas plant. Photo: Woodside Energy Ltd

    GAS SUCCESSES FOR WOODSIDE
           AND KARRATHA
Australian oil and gas giant Woodside is                  portfolio, adding to its foundation domestic gas      “The project team has done an outstanding
entering a growth and construction phase and              facility at the North West Shelf.                     job executing and delivering GWF-2, which
investing significantly into its developments,            Additional domestic gas supply from Pluto is          represents the next phase in gas supply to the
with thousands of job opportunities to be                 scheduled to start up early this year with the        NWS Goodwyn A platform, extending the life
created, helping secure the long-term future              commissioning of the Pluto LNG trucking facility.     of the Karratha Gas Plant and contributing to
of Karratha.                                                                                                    Woodside achieving our targeted production of
                                                          Woodside stated the domestic gas infrastructure
                                                          on the Pluto site also will be expanded as part of    100 MMboe (million barrels of oil equivalent) in
Growth and expansion projects, including the Pluto
                                                          the proposed Pluto Train 2 Project, for which a       2020,” he said.
LNG expansion, upgrade of the Karratha Gas Plant
and future processing of Browse and Scarborough           final investment decision is targeted in 2020.
                                                                                                                “This success has been achieved by combining
gas in Karratha, are part of Woodside’s plans to          Late last year, gas production at the Woodside-       the two GWF-2 drilling campaigns, accelerating
build on the significant infrastructure it has already    operated North West Shelf Greater Western Flank       project work packages and collaborating closely
developed locally.                                        Phase 2 (GWF-2) Project off the northwest coast       with our contractors.”
                                                          of Australia commenced ahead of schedule.
December saw the Woodside-operated Pluto                                                                        Mr Coleman said that the capabilities
LNG Project supply its first gas to the Dampier           The GWF-2 Project was approved in December
                                                                                                                demonstrated on the GWF-2 Project would
                                                          2015 to develop gas and condensate from gas
to Bunbury Natural Gas Pipeline, with successful                                                                be carried forward in the next phase of
                                                          fields in the Carnarvon Basin.
commissioning of the Pluto pipeline gas facility.                                                               growth, including proposed developments
                                                          Between 2015 and 2018, Woodside implemented
A ceremony was held on site in Karratha on                                                                      of the Scarborough and Browse offshore
                                                          the two-phase project, connecting additional fields
18 December following the completion of                                                                         gas resources.
                                                          to the Goodwyn A platform using subsea tiebacks.
commissioning activities, during which the facility
                                                          Woodside CEO Peter Coleman said the project           “The Scarborough and Browse projects are part
produced at near its capacity of 25 terajoules per day.
                                                          had been delivered below the expected cost            of our vision for the Burrup Hub, which would
The company stated that Pluto pipeline gas will           of about $2 billion, and six months ahead             unlock the future of the Karratha Gas Plant and
now form part of Woodside’s domestic gas supply           of schedule.                                          Pluto LNG,” he said.
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On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
Future plans and local jobs                            Woodside’s contractors will also be required to        “Karratha workers have the skill and the
The start of gas production at the Greater             use the ‘Locals First Portal’, to ensure more local    knowledge to do this work and the Local Jobs
Western Flank Phase 2 Project in October               jobs are created.                                      Portal will ensure they are in the box seat for
followed the announcement in mid-2018 of a                                                                    future job opportunities,” he said.
                                                       “I’m pleased we’ve been able to work with
new local jobs plan and online jobs portal by          Woodside to ensure that the development will           “With the expansion of Pluto and the potential for
Woodside, to ensure Karratha locals are                lead to long-term jobs for people in Karratha,”        Browse and Scarborough gas to be processed
given more opportunities to secure work on             Mr McGowan said.                                       in Karratha, there is an opportunity to create a
Woodside projects.                                                                                            pipeline of jobs for locals, supporting the local
                                                       “I’d like to acknowledge local MP Kevin Michel
Premier and Minister for State Development,                                                                   economy for years to come.
                                                       for his tireless work to ensure that people in the
Jobs and Trade, Mark McGowan welcomed                  Pilbara are given every opportunity to secure          “This announcement will ensure Karratha has a
Woodside’s commitment to local jobs in Karratha.       work on big resources projects.                        strong future and the local workforce will play a
“The Local Participation Plan will ensure that the                                                            key role.”
                                                       “I have made it clear that creating local jobs is my
next wave of Woodside projects create direct jobs      number one priority, and my Government is keen         To view the jobs portal, visit
for people in the Pilbara,” Mr McGowan said.           to ensure that future resources projects create        www.karrathalocaljobs.com.au
The plan includes a Local Jobs Portal, an online       similar outcomes for local communities.”
tool where locals can register their skills and        Mr Michel said the announcement of the Local
availability for jobs, with Woodside using the         Participation Plan and Local Jobs Portal would be
portal to find suitable workers from the Pilbara       key to the future of Karratha.
region before considering FIFO workers to work
on its facilities in the region.

North West Shelf Project: nation’s largest oil and gas development in WA
•    The Woodside-operated North West Shelf (NWS) Project’s facilities           •     The NWS Project participants are Woodside Energy Ltd (Operator
     constitute Australia’s largest oil and gas development and represent              16.67%); BHP Billiton Petroleum (North West Shelf) Pty Ltd
     an investment of more than $34 billion.                                           (16.67%); BP Developments Australia Pty Ltd (16.67%); Chevron
                                                                                       Australia Pty Ltd (16.67%); Japan Australia LNG (MIMI) Pty Ltd
•    Accounting for more than one third of Australia’s oil and gas
                                                                                       (16.67%); and Shell Australia Pty Ltd (16.67%).
     production, the NWS Project is a joint venture between six major
     international companies.

•    It is one of the world’s largest liquefied natural gas (LNG) producers,
     supplying oil and gas to Australian and international markets from
     huge offshore gas, oil and condensate fields in the Carnarvon Basin.
                                                                                                                                                                  3
On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
AUSTRALASIAN OIL AND GAS CONFERENCE 2019
Featuring a world-class conference program,              To be held at the Perth Convention & Exhibition    and technology from specialised industry
AOG 2019 is set to soar when the premier                 Centre from March 13–15, AOG 2019 aims             sectors at the Knowledge Forum, with keynote
oil and gas conference event lands in Perth              to connect, re-engage and inspire the oil and      presentations on offshore marine technology,
in March.                                                gas industry to move forward and embrace the       drilling, completions and reservoir management,
                                                         shifting market.                                   new energy, micro grids and energy efficiency,
Future jobs in oil and gas will be a focus                                                                  non-destructive testing and automation.
of a Collaboration Forum to be held at the               With this renewed sense of optimism comes a
Australasian Oil and Gas (AOG) Conference and            focus on new jobs and employment.                  Partnering with the Society for Underwater
Exhibition 2019, with sessions seeking to identify                                                          Technology, Subsea Energy Australia and
                                                         AOG 2019 is working alongside the Western
new long-term job opportunities focused on                                                                  Subsea UK, the AOG Subsea Forum will focus
                                                         Australian Government, through the Department      on how the industry can adjust to the evolving
servicing, maintaining and improving existing oil        of Jobs, Tourism, Science and Innovation (JTSI),   market, engage with the latest thinking on
and gas operations.                                      to deliver the Collaboration Forum.                subsea engineering solutions, life extension and
AOG is working with key partners NERA,                   The Collaboration Forum is a free-to-attend        the application of subsea geoscience.
Woodside, Deloitte, Shell, Chevron, and the              opportunity for industry professionals, with a     As the largest gathering of oil and gas
Western Australian Government to reflect the             focus on enhancing collaboration between           professionals in Australia, with major
current trends and challenges impacting the              operators, contractors and the supply chain to     operator and government support, AOG 2019
wider oil and gas industry.                              drive a greater understanding of challenges and    provides an opportunity to network and create
The Collaboration Forum will include a                   access to opportunities – including new markets    valuable connections.
presentation from the Western Australian                 and future jobs.
                                                                                                            AOG Event Director Bill Hare said, “Input from
Government’s LNG Taskforce.                              The Collaboration Forum will have a full           industry leaders is key to the event’s success
                                                         day dedicated to new energy, focussing on          - we’re delighted to have Woodside, Chevron,
The oil and gas industry is currently going
                                                         renewables for power generation for gas            Deloitte, NERA and the Department of Jobs,
through rapid changes related to new
                                                         processing facilities, remote power generation     Tourism, Science and Innovation on board
market requirements, the introduction of new
                                                         (LNG and renewables), and alternate uses for       again, and we’re looking forward to the exhibition
technologies, increased digitalisation and the
                                                         LNG and future fuels including hydrogen.           being 30 per cent larger this year with renewed
retirement of many experienced workers, and
                                                                                                            optimism generating a high level of interest.”
there has been significant government, industry          In addition to the Collaboration Forum, the
and academic focus on identifying the workforce          AOG conference program offers attendees the        Registrations are open for fast and free entry to
of the future.                                           opportunity to discuss the latest techniques       the event at www.aogexpo.com.au

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4
On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
A State Government, union and industry collaboration is working to maximise benefits in the LNG sector for Western Australia.

                       ON TASK: FOCUS ON LNG JOBS
Western Australia’s LNG Jobs Taskforce                 •    Education, Training and Innovation –             “This period of investment created over 30,000
met for the first time in December, bringing                identifying skills for success in the sector,    direct jobs during the construction phase, and
government and industry together to focus                   ensuring Western Australian talent is            has helped to drive strong growth in the Western
on maximising local jobs and economic                       developed, identifying opportunities for         Australian economy.
benefits from the liquefied natural gas                     innovation and new technologies, and
                                                                                                             “However, the operations phase of these projects
(LNG) industry and establishing Western                     encouraging collaboration.
                                                                                                             has the potential to create many thousands of
Australia as a hub servicing Australia and the
                                                       •    Business Development and Diversification –       highly skilled, well paid jobs for decades to come.
broader region.
                                                            developing complementary industries
                                                                                                             “The operational phase of LNG projects has
Premier and Minister for State Development,                 and maximising local business participation
                                                                                                             positive employment flow-on effects on the rest
Jobs and Trade Mark McGowan announced in                    during construction and operations,
                                                                                                             of the economy through direct maintenance,
March 2018 the State Government’s intention to              attracting long term investment to
                                                                                                             servicing and supply contracts and through
form the Taskforce.                                         Western Australia.
                                                                                                             increased consumption.”
In August last year, the Taskforce was formally        •    Downstream and Future Energies –
                                                                                                             The Premier cited recent figures estimating the
established and its membership announced by                 pursuing emerging opportunities arising
                                                                                                             costs to sustain operations on LNG plants over
WA Agent General Mike Deeks, representing the               from the availability and production of gas
                                                                                                             their lifetimes, to be equivalent to 125 per cent
Premier, and industry representatives at the ONS            in Western Australia, including value adding     of the original capital investments.
2018 Conference in Stavanger, Norway.                       downstream processing and future energies
                                                            such as hydrogen production.                     Recent figures also estimate servicing and
Chaired by the Premier, the Taskforce includes                                                               maintenance work in the Western Australian
the Chief Executive Officers of major LNG              •    Technology, Ocean Industries and                 LNG industry to be worth about $9 billion per
producers in Western Australia as well as the               Renewables – encouraging innovative              year, and research indicates that each job in
Secretary of Unions WA and the Australian                   technology and collaboration with other          the LNG industry supports up to 10 jobs in the
Petroleum Production and Exploration                        industry sectors including ocean industries      rest of the economy through procurement and
Association (APPEA).                                        and renewables.                                  induced consumption.
The Taskforce’s first meeting leapt straight           Addressing the Taskforce, the Premier targeted        “By working collaboratively, government, unions
into action with a structure and governance            growth opportunities for Western Australia’s          and industry have an opportunity to maximise the
framework agreed, establishing a steering              LNG industry.                                         benefits for WA arising from this new phase and
group to be chaired by the Director General of                                                               establish Perth and Western Australia as a major
                                                       “Western Australia has experienced a prolonged
the Department of Jobs, Tourism, Science and                                                                 hub servicing the LNG industry in the southern
                                                       period of capital investment in new and
Innovation (JTSI) Rebecca Brown and senior                                                                   hemisphere,” Mr McGowan said.
                                                       expanded LNG production capacity. WA is
industry and union representatives.
                                                       home to a significant proportion of the world’s
In addition, a number of working groups will add       LNG production, and when Prelude and Gorgon
to Taskforce momentum, with each group based           Phase 2 are completed we will be the second
around targeted themes, including:                     largest producer in our own right,” he said.

                                                                                                                                                                 5
On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
LNG sales increased from $12.7 billion to $19.1 billion in 2017–18. Photo: Chevron

       WA’S MINERAL AND PETROLEUM SALES
             REFLECT GLOBAL GROWTH

In 2017–18 Western Australia’s mineral and              fluctuations in crude oil prices and a lack of        Lithium continued to see significant increases
petroleum industry reported sales of $114.9             project investment which saw minimal mine             in both production and value, with sales of
billion, up $10 billion from 2016–17.                   supply growth in some commodities.                    spodumene concentrate rising 167 per cent to
                                                                                                              reach $1.6 billion and 2.1 million tonnes.
It was the second highest financial year sales          “While these factors created uncertainty in
value on record, behind only the $123 billion           financial markets, WA’s commodity driven export       The number of individuals employed by the
achieved in 2013–14.                                    market remained steady with the exception of          State’s mining industry also increased to
                                                        the LNG sector which grew substantially over the      112,008 people, up from 106,490 the previous
Department of Mines, Industry Regulation and
Safety Director General David Smith said the            period,” Mr Smith said.                               financial year. However, consistent with the trend
figures reflected the improvement across global                                                               towards more contract employment over the past
                                                        “We also saw the emergence of WA as a                 few years, the number of full time equivalents
commodity markets in 2017–18.
                                                        potential supplier of the battery related materials   was 89,819.
“About half of the world’s countries experienced        needed to support substantial green energy
an increase in economic growth, creating a              initiatives around the world.                         Mines and Petroleum Minister Bill Johnston said
period of synchronised global upturn with most                                                                overall the figures demonstrate the strength of
                                                        “Stemming from this, it is pleasing to see a          Western Australia’s resources sector.
Western Australian producers benefitting from the
                                                        new wave of investment in lithium and related
recovery in prices seen throughout 2017 and into                                                              “Creating job opportunities is the State
the start of 2018,” Mr Smith said.                      sectors which will help sustain our minerals and
                                                                                                              Government’s number one priority and it’s
                                                        petroleum sector into the future.”
“However, in the latter half of the period, growing                                                           pleasing to see strong job numbers, as
tensions between the US and China and talk of           A number of commodities reached record                well as record production and sales in our
a potential trade war became a major headline,          production levels including gold, iron ore, LNG       resources industry,” Mr Johnston said.
creating some investor uncertainty.”                    and lithium.
                                                                                                              “The State Government is committed to
Other factors to influence global commodity             LNG saw the largest increase in value, climbing       supporting industry investment in Western
markets during this period included the                 from $12.7 billion to $19.1 billion, coming off the   Australia’s diverse and record-setting sector and
moderation of China’s economic growth,                  back of a 32 per cent increase in production.         the opportunities it brings to our economy.”
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On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
Mineral sector highlights
Mineral commodities still dominate the State’s
resources sector, accounting for 77 per cent, or
$88 billion, of total sales value. Iron ore was by
far the most valuable commodity, accounting for
70 per cent of mineral sales and 54 per cent of
overall sales.

Iron ore recorded sales valued at $61.7 billion in
2017–18, down slightly (three per cent) on last
year. Record sales volumes of almost 826 million
tonnes was not enough to offset the lower prices
received by Western Australian producers.

Gold sales volumes increased for the third
year in a row to reach a record 212 tonnes
(7.5 million ounces) in 2017–18. Increased
volumes combined with strong gold prices to
deliver a five per cent increase in the value of
the sector, from $10.9 billion in 2016–17 to          Figure 1: Western Australia’s share of Australian mineral exploration expenditure (2008–09 to 2017–18).
$11.4 billion in 2017–18.                             Data source: ABS
Alumina and bauxite sales accounted for
7.5 per cent of mineral sales and six per cent of     LNG remains Western Australia’s most valuable         Petroleum exploration
total sales. Sales volumes increased more than        petroleum product, accounting for close to            National petroleum exploration expenditure
four per cent year–on–year, attributable to a         17 per cent of all mineral and petroleum sales in     continued to decline, falling from $1.4 billion
substantial increase in bauxite sales, which offset   2017–18. The value of LNG sales value rose just       in 2016–17 to $1 billion in 2017–18. National
a decrease in alumina sales. This meant that the      over $6 billion from $12.7 billion in 2016–17 to      petroleum exploration expenditure continues to
value of the sector increased 30 per cent to          $19.1 billion in 2017–18.                             decline rapidly, having fallen 79 per cent ($3.8
$6.6 billion in 2017–18.
                                                      The volume of LNG produced in Western                 billion) since 2013–14.
Western Australia’s nickel sector has struggled       Australia increased 45 per cent during the five       WA’s share of the petroleum exploration spend
in recent years, with the value of the sector         years to 2016–17 and a further 32 per cent in         increased to 55 per cent in 2017–18, up from
declining year-on-year since 2010–11. However,        2017–18. This follows the start-up of several new     47 per cent on 2016–17. This was still well below
in 2017–18, fortunes turned with the value of the     LNG projects over the period marking the last of      the 70 per cent share the State averaged in the
sector increasing 26 per cent from $2.1 billion in    the “mega” LNG investment projects to                 10 years prior to 2016–17.
2016–17 to $2.6 billion in 2017–18.                   reach production.
Mineral exploration                                   In 2017–18, crude oil volumes were down
Australia’s mineral exploration expenditure           11 per cent to 4.8 gigalitres, while condensate
was $2 billion in 2017–18, up from $1.6 billion       production increased 18 per cent to 7.1 gigalitres.
in 2016–17. WA contributed $1.2 billion (61           Improvements in the prices received by Western
per cent) of this spend with the gold and iron        Australian producers contributed to the increase
ore sectors attracting the largest shares. Gold       in the value of crude oil and condensate sales
exploration expenditure in WA continued to            which rose for the first time in seven years from
increase from $509.5 million in 2016–17 to            $4.3 billion in 2016–17 to $5.6 billion in 2017–18.
$591.5 million in 2017–18. Iron ore exploration
decreased, but only marginally from $281.6
million in 2016–17 to $274.1 million in 2017–18.

Globally, exploration budgets have declined
since 2012 with the mix between greenfield and
brownfield exploration shifting towards the latter.
In terms of expenditure, the mix of Australian
exploration has remained static over the past
five years, roughly weighted 70:30 towards
brownfield exploration.

Petroleum sector highlights
The petroleum sector, which comprises crude
oil, condensate, LNG, natural gas and LPG,
accounted for 23 per cent of the total value
of Western Australia’s mineral and petroleum
sales in 2017–18. This made it the second most
valuable sector after iron ore.

The sector was valued at $26.6 billion in
2017–18, an increase of 39 per cent from              Figure 2: Western Australia’s share of Australian petroleum exploration expenditure (2008–09 to 2017–18).
$19.2 billion in 2016–17.                             Data source: ABS
                                                                                                                                                               7
On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
An aerial view of Altura Mining’s Pilgangoora operation. Photo: Altura Mining

NEW LITHIUM MINES POWER UP IN THE PILBARA

Western Australia’s two newest lithium                  General Lithium, Ganfeng Lithium, Great Wall        In 2017–18, Western Australia produced nearly
mines are hard at work in the State’s far-north         Motors, and Posco have all signed up as global      2.1 million tonnes of spodumene concentrate
Pilbara region.                                         offtake partners.                                   worth $1.6 billion.

Pilbara Minerals’ lithium-tantalum project at           The company has also completed a stage-two          More than $4 billion has been invested in lithium
Pilgangoora, 120km south of Port Hedland, was           definitive feasibility study for a $118-million     mining and downstream processing operations
officially opened in November by Mines and              expansion that would increase production to         since 2017 and the industry now directly employs
Petroleum Minister Bill Johnston, bringing the          450,000 tonnes per annum.                           more than 2000 people.
number of operating lithium mines in WA                 Altura has offtake agreements with Chinese          Sales reached a record $678 million last year and
to seven.                                               companies OptimunNano and Lionenergy for            the industry employed more than 1200 people.
                                                        100 per cent of Pilgangoora’s production.
Only two months earlier, the Minister also opened
Altura Mining’s Pilgangoora lithium project 90km        Western Australia stands alone as the world’s
south-east of Port Hedland.                             biggest lithium producer.

Pilbara Minerals’ first shipment on 2 October
2018 marked the successful conclusion of stage
one of the mining and processing operation
which is expected to process 2 million tonnes per
annum (Mtpa) of spodumene to produce 330,000
tonnes of spodumene concentrate.

The Perth-based company has since made a
final investment decision to expand the project
to stage two, with an annual capacity of 5 Mtpa,
subject to regulatory approvals.

The Pilbara Minerals mine is Western Australia’s
second-largest operating lithium project and
includes one of the world’s largest pegmatite-
hosted tantalum deposits.

Tantalum is primarily used to manufacture
capacitors in electronic applications such as              Standing next to the plaque commemorating the mine’s opening are Pilbara Minerals’ first employee,
mobile phones, pagers, medical appliances                  Water Resources Manager George Karageorge, Mines and Petroleum Minister Bill Johnston, and the
and computers.                                             company’s non-executive chairman, Tony Kiernan.

8
BRIGHT FUTURE:
WA LEADING
THE WAY IN
FUTURE BATTERY
INDUSTRY

Western Australia is on target to become a              assembly, installation and management of energy         economy with low sovereign-risk, and we’re
leading exporter of future battery minerals,            storage systems.                                        world-leaders in research and development.”
materials, technologies and expertise.
                                                        Additionally, the State Government will commit          The State Government will drive the
Increased demand for electric vehicles and              $6 million if it is successful in its bid to host the   implementation of the strategy and continue to
energy storage systems has created a unique             Future Battery Industries Cooperative Research          work closely with industry, research organisations
opportunity for the State to become a central           Centre in Perth.                                        and the community.
player in the global battery value chain.
                                                        “The unprecedented growth of the future                 More information and a copy of the Western
The Western Australian Government engaged               battery industry represents a once-in-a-lifetime        Australian Future Battery Industry Strategy can
closely with government, industry, research             opportunity for Western Australia,”                     be found at: www.jtsi.wa.gov.au/fbis
organisations and the community to deliver a            Mr McGowan said.
strategy that aims to unlock the State’s potential
                                                        “Our Future Battery Industry Strategy will drive           •     Western Australia has a significant
in this growing sector.
                                                        the development of the Western Australian                        proportion of global battery minerals,
On January 31, Premier and Minister for State           battery materials industry that will create local                including lithium (9%), cobalt (17%),
Development, Jobs and Trade, Mark McGowan,              jobs, contribute to skills development and                       nickel (25%), alumina (20%),
and Minister for Mines and Petroleum; and               economic diversification, and maximise benefits                  manganese (14%), vanadium (9.5%),
Energy, Bill Johnston, launched the Western             to regional communities.                                         and non-battery minerals used in the
Australian Future Battery Industry Strategy.                                                                             manufacturing of electric vehicles
                                                        “This is an exciting opportunity for Western
One of the first initiatives of the strategy is         Australia to be recognised as a world-leading                    and energy storage systems, such as
the development and implementation of an                producer and exporter of future battery materials,               rare earths.
investment attraction strategy – to further develop     technologies and expertise, with huge potential            •     Western Australia is the largest
and strengthen relationships with investors and         for industry growth and job creation across the                  single producer of lithium worldwide,
manufacturers in global battery and electric            battery value chain.”                                            accounting for 42% of lithium production
vehicle supply chains.                                                                                                   in 2017.
                                                        Mr Johnston said the strategy’s release signified
The State Government will continue to facilitate        the State Government’s commitment to
                                                                                                                   •     Three of the world’s four largest
the establishment of new future battery projects        establishing a world leading, sustainable, value-
                                                                                                                         producers of lithium are developing
in Western Australia – assisting and supporting         adding battery industry in Western Australia.
                                                                                                                         downstream processing projects to
projects through the approvals process.
                                                        “The growing global demand for battery                           produce lithium hydroxide, lithium
The next steps for the State Government                 technologies presents an opportunity for Western                 carbonate, and nickel sulphate in
include filling current and future skill gaps, and      Australia to build on its expertise in the resources             Western Australia: Tianqi (China),
facilitating access to infrastructure and funding for   industry and move further along the value chain                  Albermarle (US) and SQM (Chile).
technology SMEs.                                        into downstream processing activities,” he said.
                                                                                                                   •     The State Government manages 12
Other measures include exploring initiatives to         “Western Australia has all the battery minerals                  Strategic Industrial Areas (SIAs) and
increase the uptake of batteries across the State       you need to make batteries and energy                            leases land and utilities for strategic
and globally. These include opportunities through       technologies, we also have a stable and robust                   industry proponents.
                                                                                                                                                                   9
The Albemarle lithium hydroxide manufacturing plant is located at the Kemerton Strategic Industrial Area (pictured), north of Bunbury in WA’s South West.
Photo: LandCorp

     WORK BEGINS ON ALBEMARLE LITHIUM
  HYDROXIDE PROCESSING PLANT AT KEMERTON

 Site works began in January on Albemarle              to the South West and the State by the
 Corporation’s lithium hydroxide                       Government’s investment in Kemerton.
 manufacturing plant, located in the Kemerton
                                                       “This initiative paves the way for additional
 Strategic Industrial Area in Western
                                                       downstream processing industries to be
 Australia’s South West.
                                                       established in Kemerton in the future, which will
 Kemerton is the South West’s largest strategic        mean more jobs for regional Western Australia.”
 industrial area and is designed for major             Mr Cook said the announcement of the Albemarle
 downstream processing industries that add value       Kemerton Plant underscored the importance of
 to the region’s primary resources.                    Strategic Industrial Areas.
 The plant, to be constructed on an 89 hectare         “The Kemerton SIA is the largest in the
 site, has approval to process spodumene               South West region, and is already home to
 ore concentrate from the Talison Lithium              Kemerton Power Station and major established
 Greenbushes mine, through five process trains. It     industries including Simcoa Operations and
 is expected to produce up to 100,000 tonnes per       Cristal,” he said.
 annum of lithium hydroxide.
                                                       “Albemarle would see the Kemerton SIA play
 The Albemarle Kemerton Plant will create              a crucial role in growing and supporting a major
 more than 500 construction jobs and an initial        growth industry for Western Australia.”
 100 operational jobs, increasing to 500 at full                                                               Photo: South West Development Commission.
 operational capacity. Commissioning of the
 Kemerton Plant is expected to begin in 2021.
                                                           Kemerton Strategic Industrial Area
 The Western Australian Government welcomed
 the start of site works, and will work with               •     Located in the South West of                   •    For more information on Strategic
 Albemarle to maximise the benefit of the project                Western Australia, the Kemerton                     Industrial Areas in Western Australia,
 for the South West region.                                      Strategic Industrial Area (SIA)                     visit the Department of Jobs,
                                                                 is designed for strategic and                       Tourism, Science and Innovation
 “I am pleased that the State Government could                   downstream processing industries                    website at www.jtsi.wa.gov.au/
 facilitate the necessary approvals to allow                     in the region.                                      what-we-do/offer-project-support/
 Albemarle to begin bulk earthworks at the                                                                           industrial-land
                                                           •     The SIA is connected to major road,
 Kemerton site,” Acting Premier Roger Cook said.
                                                                 power and gas networks and is
 “The commencement of construction by                            just 17 kilometres northeast of the
 Albemarle demonstrates the benefits presented                   Bunbury Port.
 10
Australia’s Chief Scientist Dr Alan Finkel and Regional Development Minister Alannah MacTiernan with the hydrogen fuel cell vehicles on display, Hyundai’s
NEXO and Toyota’s Mirai, at the Renewable Hydrogen Conference.

                         BOLD IDEAS TO MAP FUTURE
                      FOR RENEWABLE HYDROGEN IN WA
More than 300 national and international               hydrogen can play an important role - and WA          “This State has a long history of delivering energy
delegates came together in Perth recently              can be central to that future.”                       and resources to the world, with established
at the State’s Renewable Hydrogen                                                                            infrastructure and supply chains.
                                                       Exploration of the opportunities for hydrogen will
Conference, at the invitation of the Western
                                                       be driven by a Renewable Hydrogen Council,            “Now is the time to embrace this opportunity
Australian Government.
                                                       which will provide guidance on ways to progress       and drive forward the hydrogen industry and its
Hydrogen is a clean-burning fuel and, when made        the industry and maximise benefits to the State       place in WA - to realise the thousands of jobs this
using renewable energy, it is a carbon-free fuel       and jobs for Western Australians.                     industry could create.
from production to utilisation.
                                                       Meeting in October for the first time, the            “The Renewable Hydrogen Council will report
Hydrogen can be used in a range of industries          Renewable Hydrogen Council is a collective of         back to Government on the best ways to grow the
– including transport and electricity generation –     government (State and Federal), industry, and         industry and maximise benefits for the State.”
and can also be stored and exported.                   other representatives with significant renewable
                                                       hydrogen industry expertise.
Western Australia has the potential for the
development of a renewable hydrogen industry           The council is led by Regional Development
with its vast available land and renewable             Minister Alannah MacTiernan and members have            •     Western Australia is in a prime position to
energy resources.                                      been drawn from the Office of the Minister for                become home to a job-creating renewable
                                                       Energy; the Department of Primary Industries and              hydrogen sector, meeting strong demand
With key international markets such as Japan and       Regional Development; the Department of Jobs,
                                                                                                                     from Asian neighbours.
Korea choosing a substantial role for hydrogen         Tourism, Science and Innovation, the Australian
in their future energy mix, the opportunities for      Gas Infrastructure Group; ATCO Gas; Woodside;           •     The Renewable Hydrogen Council is
Western Australia to export its renewable energy       ENGIE; Hydrogen Mobility Australia; CSIRO;                    working with industry to shape the future for
via hydrogen are potentially significant.              ARENA; Yara; and Jackson McDonald.                            a new sector for Western Australia.
“This Government is pushing for innovation,            A Working Group comprised of a cross section of         •     Hydrogen is a clean-burning fuel and, when
diversification and bold new ways to develop           industry and government representatives active
                                                                                                                     made using renewable energy, it is a carbon
clean energies, grow exports and drive new job         in the hydrogen space has also been created to
opportunities across regional WA,” Premier and                                                                       free fuel from production to utilisation.
                                                       support the work of the Council.
Minister for State Development, Jobs and Trade,                                                                •     Hydrogen can be used in a range of
                                                       “To create renewable hydrogen you need vast
Mark McGowan said.                                                                                                   industries – including transport and
                                                       stretches of land and high-quality renewable
“As the world continues to transition to a low-        energy resources – two things Western Australia               electricity generation – but can also be
emissions future, it is increasingly apparent that     has in abundance,” Ms MacTiernan said.                        stored and exported.

                                                                                                                                                                11
Asian Engagement Minister Peter Tinley with JTSI Director General Rebecca Brown (centre) and Chinese Provincial Business Council members
     at Chung Wah.

                                  ENGAGING ASIA

Western Australia has longstanding                   As a single market, ASEAN is Western                need for Western Australia to increase its focus on
relationships with many countries in Asia,           Australia’s third largest trade partner and is      ASEAN and develop a clear understanding of the
and many of these relationships were largely         projected to become the world’s fourth largest      economic and job-creating opportunities,”
founded on the State’s resources export              economy by 2030.                                    Mr Johnston said.
industry and Asia’s demand for                                                                           Mr Johnston launched the State Government’s
                                                     An inaugural Western Australia–ASEAN Trade
those resources.                                                                                         Asian Engagement Strategy consultation paper at
                                                     and Investment Dialogue was held in November
In December, Premier Mark McGowan                    2018, bringing together business leaders to         the event. The consultation paper is the first formal
announced changes to the Western Australian                                                              step in the State’s Asian Engagement Strategy,
                                                     renew their focus on the way Western Australia
                                                                                                         which the Western Australian Government is
Cabinet, with Minister Peter Tinley now              sees South East Asia.
                                                                                                         developing to outline how the State will develop its
responsible for the Asian Engagement portfolio
                                                     During the event, then Minister for Asian           long-term relationships with Asia.
taking over from Bill Johnston.
                                                     Engagement Bill Johnston attended a full day        The next Western Australia–ASEAN Trade and
Asian markets are set to dominate the                roundtable meeting where he met with 40 invited     Investment Dialogue will be held in 2019.
world economy and the Western Australian             participants, from both government and business
Government is committed to deepening                 across ASEAN and throughout Australia.              Working together
the State’s ties with Asia.                          They discussed opportunities to engage with         The Western Australian Government recently
                                                     South East Asia across the agriculture, energy,     brought together the State’s Asian Business
The Association of Southeast Asian Nations
                                                     mining, and science, technology, research and       Councils for the first time, to discuss job
(ASEAN) was established on 8 August 1967                                                                 creation and securing Western Australia’s
in Bangkok, Thailand, with the signing of the        development industry sectors.
                                                                                                         future economic prosperity.
ASEAN Declaration (Bangkok Declaration).             A free public seminar followed featuring keynote
                                                                                                         The inaugural Asian Business Councils Workshop,
                                                     presentations and a panel discussion, and was
Today, ASEAN has 10 member states, including                                                             held in October, was facilitated by Deloitte and
                                                     attended by around 220 people.
Brunei Darussalam, Cambodia, Indonesia,                                                                  coordinated by JTSI, with Minister Johnston and
Lao PDR, Malaysia, Myanmar, Philippines,             “With ASEAN’s growing middle-class, and             JTSI Director General Rebecca Brown formally
Singapore, Thailand and Vietnam.                     increasingly urbanised populations, there is a      addressing participants.

12
WESTERN AUSTRALIA’S
                    MERCHANDISE EXPORTS 2017–18 TO ASIA
                                                                                                                            JAPAN

                                                                             HONG KONG                               $18.9b
                                                                                                                 Western Australia’s
                                               CHINA
                                                                               $8.1b                         15%
                                                                                                                     2017–18
                                       $61.5b                     47%
                                                                           Western Australia’s
                                                                               2017–18
                                                                                                                  export market
                                     Western Australia’s
                                         2017–18                            export market
                                      export market
                                                                                   6%

                                                         90%
                                                       Western Australia’s                   WESTERN
                                                      merchandise exports                   AUSTRALIA
                                                           2017–18

Attendees participated in facilitated discussions        “Ultimately, the State Government’s focus is on        Each event features a range of guest speakers
that focused on the priorities and strengths of the      boosting growth in three key areas: exports from       from government, State and Federal, as well as
councils and how these can align with the State’s        WA, investment into WA, and diversification of         key business and business council leaders.
economic priorities.                                     the State’s economy,” he said.
                                                                                                                Minsiter Tinley will speak at the Vietnam
“I am aware that Asian Business Councils                 “Within our generation, Asian markets                  Business Round Table.
have a vast range of assets, including market            will dominate the global economy and
intelligence, business networks and cultural             Western Australia needs to prepare for this
knowledge,” Minister Johnston said.                      significant change.
                                                                                                                   Asian Engagement Strategy
“I would like to lift the profile of the Councils,       “In order to succeed, we will need to do business            The consultation paper, and
strengthen their capacity, and include the               in the world’s fastest growing and therefore most
                                                                                                                    additional information is available
Councils in the important task ahead of us –             competitive, economic region.”
securing the economic prosperity of the State.”                                                                       on the Department of Jobs,
                                                         Following the success of the inaugural workshop,           Tourism, Science and Innovation
Mr Johnston identified the first workshop as an          a series of Asian Business Roundtables for
                                                                                                                            (JTSI) website at:
opportunity to, “start shaping a strategy about          specific markets is underway – an Indonesia
how Councils can be supported to work across             Business Roundtable was held in December,
                                                                                                                   www.jtsi.wa.gov.au/about-the-state/
business and government, and how together, we            and a Vietnam Business Roundtable will be held                    asian-engagement
can generate more jobs for Western Australians”.         in March 2019.

                                                                                                                                                             13
RENEWED INDUSTRY-WIDE FOCUS AFTER
             COMMITTEE OVERHAUL
                                                    The Western Australian Government has                 The inaugural RICC meeting was held in October
                                                    transformed one of its key mining industry            2018, setting a 2019 focus to streamline and
                                                    advisory groups, expanding its focus to               improve land access approvals and timelines, and
                                                    include petroleum issues and legislation.             consider the recommendations from the Federal
                                                                                                          Government’s ‘Resources 2030 Taskforce Report’
                                                    The new Resource Industry Consultative                from a State perspective.
                                                    Committee (RICC) replaces the Mining Industry
                                                    Liaison Committee (MILC), which drove                 “Our new committee will be no different in the
                                                                                                          sense it will continue to provide advice and make
                                                    countless amendments to the Mining Act 1978
                                                                                                          recommendations relating to the industry and
                                                    and regulations during the past 30 years.
                                                                                                          legislation – but the focus is now broadened to
                                                    The RICC now includes petroleum sector                include the petroleum sector,” Dr Gorey said.
                                                    representation in addition to the existing mining
                                                                                                          “We will be looking at the Resources 2030
                                                    industry members and is chaired by Department
                                                                                                          Taskforce Report to consider strategic issues facing
                                                    of Mines, Industry Regulation and Safety              the resources sector during the next decade and
     The new Resource Industry Consultative         (DMIRS) Deputy Director General Phil Gorey.           identify potential opportunities and risks that need
     Committee is chaired by DMIRS Deputy           The committee’s membership includes two               to be addressed.
     Director General Phil Gorey.
                                                    members each from the Australian Petroleum            “We will also be making recommendations to
                                                    Production and Exploration Association,               improve and streamline legislation and processes.”
                                                    Australian Mining and Petroleum Law
                                                                                                          Other key considerations of the RICC will include
                                                    Association, Amalgamated Prospectors and
                                                                                                          offering recommendations to enhance resource
                                                    Leaseholders Association of WA, Association
                                                                                                          industry compliance with legislative requirements,
                                                    of Mining and Exploration Companies and
                                                                                                          conditions on titles and government policies.
                                                    the Chamber of Minerals and Energy of
                                                    Western Australia.                                    The committee will meet three times a year in
                                                                                                          March, July and November.

     WA TO HOST LEADING TOURISM EVENT
The Australian Tourism Exchange (ATE),              For 40 years, ATE has provided a forum for             This is the fourth time ATE will be hosted in
Tourism Australia’s premier tourism trade           Australian tourism businesses to showcase their        Western Australia. The event is expected to
event, is returning to Western Australia            products, meet overseas contacts and negotiate         deliver around $9 million to the State’s economy
in 2019.                                            business deals.                                        and, in the long-term, help to grow Australia’s
ATE19, managed by Tourism Australia and                                                                    $100 billion tourism industry through relationships
                                                    ATE19 will also give the international travel trade    and future business established at ATE.
proudly co-hosted by Tourism WA, will take place
from April 8–12, 2019 at the Perth Convention       the chance to experience our extraordinary State
                                                    first hand through the extensive familiarisation       More information is available at
and Exhibition Centre.
                                                    (famils) program run by Tourism WA. The                www.tourism.wa.gov.au/ate19
ATE is the largest tourism trade show of its kind
                                                    program will see more than 500 delegates travel
in the southern hemisphere, attracting around
650 international and domestic buyers and 70        across Western Australia, taking in some of our
media, from more than 30 countries. The event       extraordinary experiences. Tourism WA will also
will also bring approximately 1500 sellers from     be running a famils program in conjunction with
more than 550 companies to Perth.                   Tourism Australia for international media.

14
Asian Engagement Mininster Bill Johnston and delegates at the Western Australian–ASEAN Trade and Investment Dialogue held in Perth.

                        NEW PROGRAM TO SUPPORT
                      GROWTH INTO THE ASIAN REGION
Funding for Western Australian organisations          “As our closest neighbours, it’s important we         •    Commissioning of in-market research on
to increase engagement, trade and investment          continue to strengthen our business ties with Asia         trade and investment opportunities.
between Western Australia and Asia has                – which could create jobs for Western Australians,”
                                                                                                            •    Running in-market business events that
been announced.                                       Mr Johnston said.
                                                                                                                 promote trade and investment linkages.
                                                      “I encourage all organisations who meet the
The Western Australian Government opened                                                                    Guidelines for applicants are available on the
                                                      criteria, and are keen to expand internationally,
applications in October for the new Priority Sector                                                         Department of Jobs, Tourism, Science and
                                                      to apply.”
Funding Program, with up to $30,000 available                                                               Innovation website: www.jtsi.wa.gov.au/PSFP
for outbound projects, such as delegations            Projects that could run under the program
participating at key international forums or          may include:                                          A minor Cabinet reshuffle in December saw
business programs; and $20,000 for inbound            •     Conducting outbound/inbound delegations         Minister Johnston take on the Energy portfolio,
projects showcasing specific Western Australian             as customised stand-alone programs.             and Asian Engagement handed to Minister
industries to international delegations.              •     Conducting outbound/inbound delegation          Peter Tinley.
                                                            programs including participation at a key
The program is open to applications from industry           international forum/event.
associations and bilateral businesses to run
projects on behalf of Western Australia’s priority
trade and investment sectors and markets.

Suitable sectors include mining and energy,
education and training, marine and defence,
aerospace and aviation, information and
communications technology, health care, building
and construction, creative industries, and
consumer goods.

Asian Engagement Minister Bill Johnston said
the program fulfils one of the State Government’s
election commitments to create opportunities for
job growth into the Asian region.

“As our closest neighbours, it’s important we
continue to strengthen our business ties with
Asia – which could create jobs for Western
Australians,” Mr Johnston said.
                                                          Western Australian overseas offices Commissioners and delegates at the ASEAN Dialogue.

                                                                                                                                                              15
Sheffield Resources’ Thunderbird project is located between Broome and Derby. Photo: Sheffield Resources

           MILESTONES FOR MAJOR PROJECT
           AFTER ‘ONE STOP SHOP’ APPROACH
  After benefiting from a coordinated State              The Agreement contains payments to the              “We were able to help the company with
  Government approach, one of the world’s                Traditional Owners, with local and Aboriginal       coordinating approvals advice across
  largest mineral sands deposits in WA’s                 employment and business commitments,                departments, as well as provide regulatory advice
  Kimberley reached major milestones in 2018.            including other controls for Aboriginal heritage    regarding tenure, environmental, safety and land
                                                         and the environment.                                access matters.
  Construction will begin later this year on Sheffield
  Resources’ Thunderbird project, which has a            “We can now all work together and provide           “DMIRS also provided regulatory information for
                                                         long term employment and business                   the Broome and Derby Shires, Port Authorities,
  42-year mine life and is located between Broome
                                                         opportunities for everyone,” Mr McFadzean said.     industry associations, pastoralists and regional
  and Derby.
                                                         The Thunderbird project will provide 280 drive-in   community groups, facilitated multi-agency
  Perth-based company GR Engineering will build                                                              briefing sessions, which helped smooth the
                                                         drive-out (DIDO) full time jobs and aims to
  the majority of the first stage of the mine, which     have 40 per cent Aboriginal employment by           approvals pathway by ensuring the stakeholders
  aims to begin high-grade zircon and titanium           its eighth year.                                    were well informed of the process.
  production by 2020.
                                                         Department of Mines, Industry Regulation and        “I’d like to acknowledge our department’s Liaison
  The two-year construction will include a               Safety (DMIRS) Senior Advisor Graham Cobby          Officer for the Kimberley Brian Lloyd – whose
  mineral processing plant, power station,               said the Thunderbird project was considered         experience and local knowledge of the region
  an accommodation village and associated                an important project for the Kimberley in 2014      helped deliver the ‘one stop shop’ service to
  infrastructure.                                        and, under the State Government Lead Agency         Sheffield Resources.
                                                         Framework, DMIRS was able to provide approval
  The project received Federal and State                 advice and coordination services from feasibility
  Government environmental approval last year,           stage through to project commencement.
  with Sheffield Resources’ Managing Director
  Bruce McFadzean saying he was pleased all key          “As a designated lead agency project, Sheffield
  permits had been secured.                              was provided with a single point of entry and
                                                         assigned one department – in this case DMIRS
  “We’re looking forward to developing                   – to assist and coordinate advice on approvals
  Thunderbird, a project that will make a significant    across government,” Mr Cobby said.
  contribution to the economy and to communities
                                                         “This is a relatively small WA company that found
  throughout the Kimberley,” he said.
                                                         something big, and we’re pleased to be able to
  Late 2018 also saw the company reach a Native          assist them through the approvals process to get
  Title Agreement with Traditional Owners Mount          to where they are now and provide value to the
  Jowlaenga Polygon 2.                                   local community and WA.

  16
The International Mining and Resources Conference was held in Melbourne.

                              FLYING THE WA FLAG
                                IN MELBOURNE
Mines and Petroleum Minister Bill Johnston              Mr Johnston also said that the total number of        “Perth is home to the Australian Resources
took the opportunity at the International               resource sector jobs in Victoria was 11,000 in        Research Centre, a petroleum and minerals
Mining and Resources Conference (IMARC) in              February 2018, compared to 112,000 in for WA.         centre of expertise with more than 300 scientists,
Melbourne in October to emphasise Western                                                                     the National Resource Sciences Precinct and the
                                                        The Minister made the point that although
Australia’s predominant role in the nation’s                                                                  Pawsey Supercomputing Centre,” he said.
                                                        Western Australia had enormous wealth under
resources sector.
                                                        the ground, the State was not just a big quarry.      Mr Johnston said it was significant many big
Now in its fifth year, the conference attracted                                                               businesses had established research and
                                                        “Western Australia is already what Victoria
more than 6000 mining and resource                                                                            development and technology units in Perth,
                                                        aspires to be – a global mining and petroleum
professionals from about 60 countries, including                                                              including BP, Santos, Shell, Conoco Phillips,
                                                        hub,” he said.
around 35 international mining ministers.                                                                     INPEX and Woodside.
                                                        “We do tech very well indeed, and are a go-to
The Minister congratulated the Victorian                                                                      The Minister said that renewed confidence in
                                                        jurisdiction for solutions to challenges, for
Government on its recently-released Mineral                                                                   Western Australia’s resources sector was driving
                                                        technical innovation, and the world-class services
Resources Strategy before making some                                                                         a sharp rise in exploration.
                                                        our METS sector provides.”
striking statistical comparisons between                                                                      The Department of Mines, Industry Regulation
Western Australia and Victoria.                         Mr Johnston said that Western Australia was at
                                                                                                              and Safety received almost 2600 mineral
                                                        the forefront of the national METS sector with
Mr Johnston said that Victoria produced                                                                       exploration applications in 2017 – a jump of
                                                        more than 350 companies and had become a
minerals valued at $1.6 billion in 2016–17, but                                                               43 per cent on 2016.
                                                        magnet for oil and gas companies seeking to
he reminded the audience that the WA figure for         capitalise on that State’s role as a global hub for
the same period was $86 billion.                        scientific and technological innovation.
He said that Victoria did have the largest              More than 900 companies – 400 of them
increase in mineral exploration expenditure of          international – were currently servicing the oil
any Australian jurisdiction for the year to March       and gas sector from Perth, he said.
2018, but the State’s total spend was $74 million,
compared to WA’s $1.2 billion.                          The Minister said that Western Australia had also
                                                        developed powerful capabilities in big data and
“Victoria is a significant global gold province, with   data analytics.
13 goldfields that have each produced more than
one million ounces of gold, but that’s not even
close to WA’s total of 255 million ounces,”
the Minister said.
                                                                                                                                                              17
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