mining industry participation officeenergymining.sa.gov.au/__data/assets/pdf_file/0011/... ·...
TRANSCRIPT
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
3Department of State Development
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
4Department of State Development
Response to Productivity Decline Continued labour force rationalisation… or innovation
Australian Innovation System Report 2016:
Firms that innovate compared to non-innovators
5Department of State Development
Overview
• Australia’s Productivity Decline
• Global Trends affecting our industry
• Mineral and Energy Services Strategy
• Existing Programs
6Department of State Development
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%
$2m >
DIGITISATION
UBIQUITOUS SENSORS
AUTOMATION
ROBOTICS
BIG DATA
MINING &
ENERGY
SERVICES
SOUTH AUSTRALIA
143,486
BUSINESSES
Revenue
Employment
Global Mega Trends Global Mega Trends
Source: METS Ignited, 2016
INTEROPERABILITY
INTEGRATED
MODULAR
SYSTEMS
7Department of State Development
SA Supply Chains and Knowledge Priorities
Comparative
Advantage
IKP1: Improving speed of
innovation, collaboration
and business models
EDUCATION,
TRAINING &
RESEARCH
55
8.3%
TECHNOLOGY &
AUTOMATION
44
6.6%
EQUIPMENT
116
17.4%
SITE
OPERATIONS
& SERVICES
235
35.3%
TRANSPORTATION
& LOGISTICS
45
6.8%
RESEARCH
CAPABILITY
IKP2: Operating in a
global market place
IKP3: Business
development,
optimisation and growth
IKP4: Excellence in
finding, extracting and
processing
IKP5: Reducing
industry footprint
IKP6: Ubiquitous
sensing, digitisation
and data analytics
SUPPLY
IT & PROFESSIONAL
SERVICES
171
25.6%
GEOGRAPHIC
CONCENTRATION
Metro - 513 (77%)
Regional - 153 (23%)
COMMERCIAL PRIORITIES
TECHNICAL PRIORITIES
8Department of State Development
Overview
• Australia’s Productivity Decline
• Global Trends affecting our industry
• Mineral and Energy Services Strategy
• Existing Programs
South Australia’s Economic Priority 1 : Unlocking our resource potential
Position South Australia to
become a leading mining and
energy services hub for the
nation
Department of State Development
Primary Objective for Suppliers
METS Contribution to GSP/GDP ($Bn)
METS Supply Chain ScorecardDeveloping a national services hub for the nation
10Department of State Development
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
South Australia Australia (RHS)
0
2
4
6
8
10
12
0
0.1
0.2
0.3
0.4
0.5
South Australia Australia (RHS)
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)
11Department of State Development
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
12Department of State Development
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
13Department of State Development
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.
14Department of State Development
Consultation Report
Key Themes
15Department of State Development
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
16Department of State Development
Overview
• Australia’s Productivity Decline
• Global Trends affecting our industry
• Mineral and Energy Services Strategy
• Existing Programs
17Department of State Development
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
18Department of State Development
How to Navigate Government “HELP”?
Develop a Relationship with Government
19Department of State Development
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
20Department of State Development
Look for the trends everyone else is missing
“The belief you can make things fly from that nice chair in your office”
– Dain Dunston
21Department of State Development
Thank you
State Development