michelle andrews - dept of mines & petroleum - opportunities and challenges in australia’s...

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www.dmp.wa.gov.au Department of Mines and Petroleum Deputy Director General Michelle Andrews 1 Mining the Pilbara 10 July 2014 Opportunities and Challenges in Australia’s West

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Michelle Andrews delivered the presentation at the 2014 Mining the Pilbara Conference. The 2014 Mining the Pilbara Conference explored current projects and regulatory updates in the Pilbara region. For more information about the event, please visit: http://www.informa.com.au/pilbaramining14

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Page 1: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

Department of Mines and Petroleum

Deputy Director General – Michelle Andrews

1

Mining the Pilbara

10 July 2014

Opportunities and Challenges

in Australia’s West

Page 2: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au 2

The department’s role

Page 3: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

WA’s resources industry

3

Page 4: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au 4

Value of WA’s resources industry

Page 5: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

Role of the Pilbara

5

State

agreements

Employment

Royalties and taxes

Infrastructure

Community services

Page 6: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

WA State Government revenue

6

2004-05 Revenue:

• Royalties 8%

• Other State Revenue 45%

• Commonwealth 47%

2014-15 Revenue:

• Royalties 22%

• Other State Revenue 48%

• Commonwealth 30%

2004-05

2014-15

Page 7: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

Benchmarking WA

7

Since 2008, WA has steadily improved its

ranking across a number of measures:

In 2013 we ranked:

• 6th Policy Perception1

• 1st Investment Attractiveness1

• 5th Business Environment2

1 – 2013 Fraser Institute Survey of Mining Companies

2 – 2014 Economist Intelligence Unit

Page 8: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

Changing community expectations

8

Page 9: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

Royalties

9

• Fair return to the

community - 10%

• Three tier system

recognises level of

processing - 7.5%

5% 2.5%

• Stability important

Page 10: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

Shale and tight gas

10

Page 11: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au 11

Community aspirations for the Pilbara

The State

Government is

supporting

sustainable

regional

development

State Offshore

Petroleum

Pilbara

Other

Federal Offshore

Petroleum

Peel

Mid West

Wheatbelt

Goldfields-

Esperance

Value of resources by region 2013

Page 12: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

DMP contributing to sustainable regional

development

12

Continued collaboration

between industry, government

and the community is key in

producing good policy and

realising the potential of WA’s

resources industry

Page 13: Michelle Andrews - Dept of Mines & Petroleum - Opportunities and challenges in Australia’s West

www.dmp.wa.gov.au

Summary

13

The Western Australian

Department of Mines and

Petroleum offers detailed

information on its website

Log onto:

www.dmp.wa.gov.au