Advocacy, The AusIMM and the Sustainability of the Australasian Minerals Sector in the 21st Century

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Advocacy, The AusIMM and the Sustainability of
the Australasian Minerals Sector in the 21st
Century
Presentation to The AusIMM Congress, Ballarat
2006
Monika Sarder Policy and Research
Coordinator, The AusIMM
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Overview

• Advocacy why are we doing it?
• Challenges to a sustainable sector in our region
• Target audiences
• Current and future projects
• Challenges to successful advocacy
• Comments/Questions

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Advocacy - Why are we doing it?

• At 2005 Congress advocacy was considered a key
  priority for The AusIMM
• Globalisation breeds new challenges
• Record number of projects 34 billion this year
• BUT Global share of exploration by region
  slipping
• Government attitude has been that the industry
  can look after itself
• Definition of professional someone who puts
  responsibility to their community and profession
  above individual and commercial interests
• The AusIMM is a forum for advocacy that can
  synthesise expert opinion in interests of
  regional good

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Minerals Sector in the 21st Century what has
changed?

• Industry consolidation - market value of top five
  companies is 576 bn, or 44 of market
  capitalisation
• Diminishing returns on exploration investment
• Sustained high demand from India and China
• Global players will now want to refill the
  cupboard
• The want bang for their buck in terms of
  exploration dollars spent. May achieve this
  through
• RD to become more predictive and reduce risks in
  exploration
• RD for minerals processing techniques and mining
  methods to render previously uneconomic deposits
  worth their while
• Shifting their focus to underexplored countries
  with higher political and social risk regimes

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Where does this leave Australia/NZ?

• Global players have said they need to increase
  the search space.
• Whether we can continue to be seen as a
  competitive destination for greenfields
  exploration investment depends on whether we can
  continue to maximise our current advantages
  whilst offering an expanded search space .
• Maximise current advantages
• RD
• Education
• Attraction Retention
• Provision of Geoscientific Data
• Minimise Regulatory Burden
• Social license to operate

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To Increase Search Space

• Encourage State Government strategies aimed at
  increasing exploration/geological knowledge (eg
  PACE program)
• Mechanisms for funding and collaboration for
  minerals related RD
• Improve Access to Finance for Juniors (make most
  of the new discoveries)
• Deal structures between majors and juniors must
  be more attractive
• Encourage policies supportive of uranium
  exploration and activity

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Whom should we be convincing?
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Press and Inquiries

• Increased presence in media
• The Australian exploration issues, macbank
  survey
• The AFR skills shortage, diversity issues
• The Age need for rational uranium policy, OHS
  stats
• The ABC skills shortage and sustainability of
  sector
• Canberra Times uranium policy
• Herald Sun need for more exploration
• Trades press on variety of topics
• Our opinion is being actively sought building
  relationships with journalists
• Major submissions 2005
• Commonwealth Grants submission in favour of
  raising funding for minerals related courses to
  the same level as Agriculture
• Research Quality Framework Submission on
  appropriate assessment for minerals RD
• Higher Education Principles Submission
• Submission to add The AusIMM members to list of
  people who can witness Stat Decs
• Major Submission for 2006
• -Uranium submission to Labor NPC Committee
• -Productivity Commission Inquiry on Innovation

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Major Policies and Projects

• Completed
• Minerals Related Education Policy Paper
• Uranium Policy Paper
• Greenhouse Gas Emissions Policy Paper
• Currently Undertaking
• Audit of mechanisms for funding and collaboration
  for minerals RD
• OHS Liability Policy Paper
• Attraction and Retention Research Paper based on
  qualitative and quantitative answers to Macbank
  Survey

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Challenges to Overcome

• Lobbying State and Federal Governments
• attitude that, the industry is in the midst of a
  boom and that it is not time to ask for subsidies
  
• Making Media Presence Count
• Company announcements speak louder than long term
  strategic warnings
• Addressing Social License Issues with Care
• Issues such as uranium, greenhouse gas emissions,
  OHS etc need to be approached from expert and
  ethical point of view
• Engaging the Membership
• Expert opinions of breadth of membership is not
  sufficiently tapped in to, although excellent
  concentrated input

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In Conclusion

• Current boom is a double edged sword more
  exposure, however mining industry is seen as a
  force unto itself
• None of our advocacy achievements this year would
  have been possible without the expert input of a
  number of committed members
• Highlighting strategic policy considerations
• Reviewing policy documents to ensure evidence
  drawn from secondary sources accorded with
  professional experience
• Providing evidence and developing arguments for
  policy positions
• Engaging in thought provoking discussion
• Bringing to light new issues
• Contact through
• WIR, Bulletin, newsletters
• Committee and Task Force Meetings (especially
  EITF)
• Website http//www.ausimm.com/policy/policyindex.
  asp
• Email policy_at_ausimm.com.au or Phone (03) 9658
  6159