Mining Industry Participation Officeenergymining.sa.gov.au/__data/assets/pdf_file/0011/... ·...

Mining Industry Participation Office

Roundtable for Oil and Gas Projects – 1 December 2016

www.statedevelopment.sa.gov.au

Lachlan CroweManager, MIPO

2Department of State Development

Overview

• Australia’s Productivity Decline

• Global Trends affecting our industry

• Mineral and Energy Services Strategy

• Existing Programs


Productivity: key driver of profitability“resources boom masked a decline in Australia’s productivity” 1

0

50

100

150

200

250

19

89

-90

19

94

-95

19

99

-00

20

04

-05

20

09

-10

20

14

-15

Qualityadjustedhours workedbasis

Capitalproductivity

Mining Industry Multifactor Productivity, AustraliaIndex 2013-14 = 100

Source:1 – CSIRO, Unlocking Australia’s resource potential, 20152 – The Conference Board, Total Economy Database, Sep 2015

Multifactor Productivity, Australia vs Peers


Response to Productivity Decline Continued labour force rationalisation… or innovation

Australian Innovation System Report 2016:

Firms that innovate compared to non-innovators


Overview






What are the MEGA TRENDS influencing our economy?… and how can we leverage these

2.3%

20 - 199

AGEING

POPULATION

GLOBAL ECONOMIC

DEVELOPMENT AND THE

RISING MIDDLE CLASS OF

CHINA AND INDIA

CYCLICAL

INDUSTRY

SOCIAL LICENCE

LOW IMPACT MINING

PRESSURE ON

EXISTING BUSINESS

MODELS

0.1%

200+

32.6%

1 - 19

65%

Sole Traders

INCREASING

RESOURCE

COMPLEXITY

34%

$50 - $200k

27.8%

<$50k

32.3%

$200k - $2m

5.9%

$2m >

DIGITISATION

UBIQUITOUS SENSORS

AUTOMATION

ROBOTICS

BIG DATA

MINING &

ENERGY

SERVICES

SOUTH AUSTRALIA

143,486

BUSINESSES

Revenue

Employment

Global Mega Trends Global Mega Trends

Source: METS Ignited, 2016

INTEROPERABILITY

INTEGRATED

MODULAR

SYSTEMS


SA Supply Chains and Knowledge Priorities

Comparative

Advantage

IKP1: Improving speed of

innovation, collaboration

and business models

EDUCATION,

TRAINING &

RESEARCH

55

8.3%

TECHNOLOGY &

AUTOMATION

44

6.6%

EQUIPMENT

116

17.4%

SITE

OPERATIONS

& SERVICES

235

35.3%

TRANSPORTATION

& LOGISTICS

45

6.8%

RESEARCH

CAPABILITY

IKP2: Operating in a

global market place

IKP3: Business

development,

optimisation and growth

IKP4: Excellence in

finding, extracting and

processing

IKP5: Reducing

industry footprint

IKP6: Ubiquitous

sensing, digitisation

and data analytics

SUPPLY

IT & PROFESSIONAL

SERVICES

171

25.6%

GEOGRAPHIC

CONCENTRATION

Metro - 513 (77%)

Regional - 153 (23%)

COMMERCIAL PRIORITIES

TECHNICAL PRIORITIES


Overview





South Australia’s Economic Priority 1 : Unlocking our resource potential

Position South Australia to

become a leading mining and

energy services hub for the

nation

Department of State Development

Primary Objective for Suppliers

METS Contribution to GSP/GDP ($Bn)

METS Supply Chain ScorecardDeveloping a national services hub for the nation


0

20

40

60

80

100

0.0

1.0

2.0

3.0

4.0

South Australia Australia (RHS)

METS Sector Employment (FTE ‘000)

METS Sector Exports ($Bn)

0

200

400

600

0

10

20

30


0

2

4

6

8

10

12

0

0.1

0.2

0.3

0.4

0.5


South Australian Targets

- METS Contribution to GDP ↑ contribution from 3% to 5% (national average)

- Employment ↑ employment from 2% to 4% (national average)

- Export Revenue ↑ exports from 10% to 15% by 2025 (share of Sector Revenue)


Australian Committed Projects & Value

Source: “Resources and Energy Major Projects, October 2015 - Office of the

Chief Economist www.industry.gov.au

South Australia

Committed

• Pt Pirie $514• Uley $50• Total $564m

Feasibility• 8 Projects $6b15

10

42

2

2

Committed Stage ProjectsAustralian Total : $220 Billion

$0 – $1 Billion

$10 Billion

$100 Billion

http://www.industry.gov.au/


Strategic Plan Position South Australia to become a leading mining and energy services hub

South Australian mining and energy services are globally competitive, innovative and unlock our resource potential

Mining & Energy Services

Strategic Plan


Consultation Process

• 46 people participating in a Northern Economic Plan METS forum• 24 one on one interviews with established minerals or energy service

providers• 197 surveys completed across 12 weeks, including feedback during the

GMUSG conference• Input from 9 industry bodies• Comprehensive research on major global and national trends• A review of current research capability and present public research

funding allocations across major universities in South Australia• Mapping of the South Australian supply chain and categorisation of

capabilities and geographic concentrations

Over 230 businesses, industry associations and research organisations contributing their views and ideas.


Consultation Report

Key Themes


Proposed Strategic Priorities

Strategic Industry Growth Themes

1. Leverage industry strengths from Automotive and Defence sectors for the development and application of sensors and data analytics.

2. Commercialise Innovation in Mining Services for Export Markets

3. Drive Cost Reduction Through Local Innovation in Oil and Gas Services

4. Export of Environmental, Community and Water Services

Strategic Business Themes

5. Reduce the Cost of Compliance

6. Increase the Opportunities for Collaboration and

Clustering


Overview






Government Initiatives

Mining and

Petroleum

Services Centre of

Excellence

Premier’s Research and Industry Fund

Sm

all

Bu

sin

ess

Develo

pm

en

t

Fu

nd

Automotive Supplier Diversification

Program

Business Transformation

Voucher Program

Innovation Voucher Program

Reg

ion

al

Dev

elop

men

t

Fu

nd

Automotive Transformation Scheme

Business Transformation Voucher Program

Exp

ort

Fin

ance

A

ssis

tan

ce

Industry Skills Fund

TradeStart

Acc

ess

ing

bu

sin

ess

gro

wth

op

po

rtu

nit

ies

Australian Small Business Advisory Services

Auto

motive Industr

y

Str

uctu

ral A

dju

stm

ent

Pro

gra

m

Bu

sin

ess

SA

Co

ach

ing

and

M

en

tori

ng

Pro

gram

Export Market

Development Grants

Next Generation Manufacturing Investment Program

Accelerating Commercialisation

Industry Capability Network - South

Australia

Research Connections

SA Micro Finance Fund

Supply Chain Facilitation


How to Navigate Government “HELP”?

Develop a Relationship with Government


Mining & Petroleum Services Centre of Excellence Selected highlights

SRA Environ’

Compliance Platform

IPACS Remote

Operations Centre

LabSAProppant

Testing

IMPTEC Super Fine Crushing

Onshore Petroleum

Training Facility

LaserBondSurface

Treatment

Copper Uranium

Hub

Overseas Delegations


Look for the trends everyone else is missing

“The belief you can make things fly from that nice chair in your office”

– Dain Dunston


Thank you

State Development

Mining Industry Participation Officeenergymining.sa.gov.au/__data/assets/pdf_file/0011/... ·...

Documents

Transcript of Mining Industry Participation Officeenergymining.sa.gov.au/__data/assets/pdf_file/0011/... ·...