On the rise Gas projects push WA jobs - WESTERN AUSTRALIA'S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE - Department of Mines and Petroleum
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WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE
Summer 2019
Print post approved PP 665002/00062
On the rise
Gas projects push WA jobs
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).
Level 6, 1 Adelaide Terrace
JTSI Editorial management: Rebecca Atkinson, JTSI Communications and Marketing Division.
Tel: +61 08 9222 0417 • Fax: +61 08 9222 0505 East Perth, Western Australia 6004 • AUSTRALIA
DMIRS Editorial management: Beau Pearson, DMIRS Corporate Communications Division. Tel: +61 8 9222 0555 • Fax: +61 8 9222 0505
Tel: +61 08 9222 3736 • Fax: +61 08 9222 3862 www.jtsi.wa.gov.au
Digital Subscriptions: www.dmp.wa.gov.au/prospect. Tel: +61 08 9222 3333
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)
Scan this QR code to view links to all the department’s publications
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
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.
2
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
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
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
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.”
6
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
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.
8BRIGHT 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.
9The 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.
10Australia’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.
11Asian 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.
12WESTERN 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.
13RENEWED 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.
14Asian 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.
15Sheffield 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.
16The 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.
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