2010 r eport AnnuAl - Minerals Council of Australia · Total $117.5b $230.7b Agriculture $31.5b $32.1b Minerals $34.4b $83.6b Energy $19.7b $77.9b Manufacturing $28.0b $33.0b other

Safe | Sustainable | Profitable | Innovative | Responsible

2010MIneRalS CounCil of AustrAliA

AnnuAl r eport

2 2010 Annual Report – Minerals Council of Australia

Minerals industry key stats 2010 (ABARE)

PAGE | 4 | www.minerals.org.au

The Australian Minerals Industry and the Australian Economy Factsheet

Australia is the largest exporter of:•alumina; •metallurgical coal; •iron ore; and •lead;

the second largest exporter of:•thermal coal and •zinc

the third largest exporter of:•uranium.

Australian commodities • vol 17 no 1 • December quarter 2010 239

5 Contribution to exports by sector, balance of payments basisAustralia

Proportion ofmerchandise exports

Proportion of exportsof goods and services

a Includes farm, forest and fisheries products.

Sources: Australian Bureau of Statistics; ABARE.

2004-05

2005-06

2008-09

2006-07

2007-08

othermerchandise

21.0%

rural a19.7%

mineralresources

59.3%

othermerchandise

20.1%

rural a16.4%

mineralresources

63.5%

mineralresources

69.1%

rural a14.7%

othermerchandise

16.2%

othermerchandise

22.7%

rural a23.7%

mineralresources

53.6%

services18.7%

rural a 11.9%

othermerchandise

13.2%

mineralresources56.2%

services21.8%

rural a 12.8%

othermerchandise

15.7%


services21.3%

rural a 14.1%

othermerchandise

15.1%


services21.3%

rural a 15.5%

othermerchandise

16.5%


services23.5%

rural a 18.2%

othermerchandise

17.3%


othermerchandise

19.2%

rural a17.9%

mineralresources

62.9%

Exports


China 5% China 33%

Thailand 2% Thailand 3%

India 2% India 8%

Japan 16% Japan 13%

Republic of Korea 11% Republic of Korea 7%

other Asia 20% other Asia 8%

European Union 27 13% European Union 27 12%

other 31% other 16%

China 4% China 8%

Japan 7% Japan 7%


New Zealand 20% New Zealand 17%


United States 23% United States 20%

other 22% other 29%

Markets for Australian exports in 2008-09 dollars

2008-091998-99

Total $117.5b $230.7b

$31.5b $32.1bAgriculture

$34.4b $83.6bMinerals

$19.7b $77.9bEnergy

Manufacturing $28.0b $33.0b

other

European Union 27

India

New Zealand

United States

Republic of Korea

China

Japan

other

European Union 27

India

New Zealand

United States

Republic of Korea

China

Japan

26%

10%

7%

4%

5%

8%

17%

23%

37%

14%

2%

7%

9%

7%

5%

19%

13%

10%

11%

8%

13%

19%

16%

10%

20%

7%

8%

11%

15%

16%

17%

6%

other

United States

Middle East

European Union 27

other Asia

ASEAN

Japan

China

other

United States

Middle East

European Union 27

other Asia

ASEAN

Japan

China

Japan 42% Japan 42%


Chinese Taipei 7% Chinese Taipei 5%

India 5% India 9%



other 17% other 10%

Export markets


China 5% China 33%

Thailand 2% Thailand 3%

India 2% India 8%

Japan 16% Japan 13%




other 31% other 16%

China 4% China 8%

Japan 7% Japan 7%


New Zealand 20% New Zealand 17%


United States 23% United States 20%

other 22% other 29%

Markets for Australian exports in 2008-09 dollars

2008-091998-99

Total $117.5b $230.7b

$31.5b $32.1bAgriculture

$34.4b $83.6bMinerals

$19.7b $77.9bEnergy

Manufacturing $28.0b $33.0b

other

European Union 27

India

New Zealand

United States

Republic of Korea

China

Japan

other

European Union 27

India

New Zealand

United States

Republic of Korea

China

Japan

26%

10%

7%

4%

5%

8%

17%

23%

37%

14%

2%

7%

9%

7%

5%

19%

13%

10%

11%

8%

13%

19%

16%

10%

20%

7%

8%

11%

15%

16%

17%

6%

other

United States

Middle East

European Union 27

other Asia

ASEAN

Japan

China

other

United States

Middle East

European Union 27

other Asia

ASEAN

Japan

China

Japan 42% Japan 42%


Chinese Taipei 7% Chinese Taipei 5%

India 5% India 9%



other 17% other 10%

Export markets

Source: ABARE, Australian Commodities, 2010



Major development projects – October 2009 listing abare.gov.au

8

Another significant LNG project on the list is Woodside’s Pluto LNG project, which has an announced capital cost of $12 billion. This project will have an annual production capacity of 4.3 million tonnes of LNG and is scheduled for completion in late 2010.

Ten other petroleum developments account for a further $15.7 billion in capital expenditure. In December 2008, the North West Shelf Joint Venture (Woodside, BHP Billiton, Shell, Chevron, BP and Japan Australia LNG) approved the US$1.5 billion NWS CWLH project. The project will allow for continued production from the Cossack, Wanea, Lamarina and Hermes fields beyond 2013. A significant proportion of the investment will be spent on the purchase of a new floating production, storage and offtake vessel.

The North West Shelf Joint Venture is also undertaking the US$5.1 billion North Rankin B project in Western Australia, which is due for completion in 2012. Other significant petroleum projects include: the US$1.7 billion joint venture Pyrenees oil field, in Western Australia which is scheduled for completion in early 2010; the US$1.3 billion Turrum natural gas and condensate field in Bass Strait due for completion in 2011; and the US$1.1 billion Kipper gas and condensate field off the coast of Gippsland, also scheduled for completion in 2011.

October 2009

Investment

The Australian Bureau of Agricultural and Resource Economics reports twice yearly on development projects in the Australian minerals industry. The most recent report covers projects that have been ‘completed’ between April and October 2009, those that are ‘advanced’ (either committed or under construction) and those that are ‘less advanced’ (no definite decision has been taken on development following the completion of a feasibility study).

In the six months ended October 2009, 15 major minerals and energy projects with a capital expenditure of $3.8 billion were completed. A further 74 projects were at an advanced stage, with total projected expenditure of $112 billion. Coal and related infrastructure projects made up 15 of the advanced projects with expenditure of $38 billion while other minerals projects were worth $62.6 billion.The completion of these projects is expected to result in increased production and export capacity for a range of commodities including coal, petroleum, iron ore, gold, minerals sands, nickel, copper and zinc.

There are a further 267 less advanced projects worth $238 billion.

Spending on exploration reached a record $6 billion during 2008/9, a ten per cent increase.

The advanced projects are shown on the above map of Australia.



Sources: ABARE, Reuters

0

1000

2000

3000

4000

5000

Zinc US$/t

0

5000

10000

15000

20000

25000

30000

Tin US$/t

0 50

100 150 200 250 300 350 400 450

Metallurgical coal EUV A$/t

0

50

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150

200

Thermal coal

Newcastle spot Japan contract

US$/t

0 50

100 150 200 250

Jun-‐09 Jun-‐10 Jun-‐11 Jun-‐12 Jun-‐13

Iron ore

Indian spot Japan contract

US$/t


0

1000

2000

3000

4000

5000

Zinc US$/t

0

5000

10000

15000

20000

25000

30000

Tin US$/t

0 50

100 150 200 250 300 350 400 450


0

50

100

150

200

Thermal coal


US$/t

0 50

100 150 200 250


Iron ore


US$/t


0

1000

2000

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Zinc US$/t

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10000

15000

20000

25000

30000

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0 50 100 150 200 250 300 350 400 450


0

50

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150

200

Thermal coal


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Iron ore


US$/t

32010 Annual Report – Minerals Council of Australia

2010 annual report

COnTenTS >>>

Minerals Operations ......................................................................................................................................... 4

What is the MCA ................................................................................................................................................. 6

Chairman’s review .............................................................................................................................................. 7

CEO’s review .......................................................................................................................................................... 9

2010 Signature achievements ................................................................................................................. 12

Safety and Health ............................................................................................................................................ 14

Production, Exports And Commodity Prices .................................................................................. 15

Investment And Exploration Expenditure ........................................................................................ 20

Employment, Workplace Arrangements And Skills ................................................................... 23

Environmental Performance .................................................................................................................... 25

Corporate Social Responsibility .............................................................................................................. 26

Industry Issues ................................................................................................................................................... 27

Division Reports – Victoria Division ..................................................................................................... 37

Division Reports – Northern Territory Division ............................................................................. 39

Board of Directors ........................................................................................................................................... 40

Governance Structure and Secretariat chart ................................................................................. 42

MCA Committee list ...................................................................................................................................... 44

MCA Member Companies .......................................................................................................................... 45

Submissions list ................................................................................................................................................. 46

Financial statements ....................................................................................................................................... 48


Minerals operations

TORRES STRAIT

CORAL SEA

Great

Reef

Barrier

Gulf

Carpentaria

TASMAN

SEA

BASS STRAIT

Great Australian Bight

INDIAN

OCEAN

TIMOR SEA

JosephBonaparte

Gulf

of

8o

120o

132o144

o

8o

16o

24o

32o

40o

108o

120o

132o 144o

156o

40o

32o

24o

16o

NORTHERN TERRITORY

WESTERN AUSTRALIAQUEENSLAND

NEW SOUTH WALES

VICTORIA

TASMANIA

SOUTH AUSTRALIA

ACT

INDONESIAPAPUA NEW

GUINEA

Mackay

Townsville

Cairns

Normanton

Alice Springs

Mount Isa

Kalgoorlie-Boulder

PERTH

Albany

Esperance

Carnarvon

Geraldton

Port Hedland

Broome

DARWIN

Oodnadatta

Ceduna

ADELAIDE

Mildura

Warrnambool

MELBOURNE

HOBART

CANBERRA

SYDNEY

Wollongong

Newcastle

Bourke

Tamworth

Port Macquarie

Grafton

BRISBANE

Longreach

Gladstone

Skal U

Lock Cbl

Angela U

D-Tree P

Kintyre U

Redtree U

Karara Fe

Stuart Osh

Bindoon Bx

Sequoia Fe

Merlin Dmd

Valhalla U

Rundle Osh

Aurukun Bx

Lake Way U

Wilgerup Fe

Eneabba Cbl

Thortonia P

Mount Gee U

Centipede U

Yeelirrie U

Weedina Cbl

Watershed WOobagooma U

Lady Jane P

Gum Flat Fe

Dandaragan P

Brolga Ni,Co

Southdown Fe

Bigrlyi U, V

Wintinna Cbl

Goulds Dam U

Lady Annie P

Junnagunna U

Merriland Au

Tropicana Au

Roper Bar Fe

Myrtle Zn, Pb

Merlin Mo, ReStarra Cu, Au

Hawks Nest FeBlue Hills Fe

Golf Bore Au

Agate Creek Au

Wiluna West Fe

Marsden Cu, Au

Crocker Well U

Witchelina Mgs

Giffen Well FeMount Karara Fe

Bennetts Well U

Monakoff Cu, Au

Sherrin Creek P

Abra Pb, Cu, Au

Young Nickel Ni

Wilgena Hill Fe

Rocklands Cu, Co

Murloocoppie Cbl

Irvine Island Fe

Wilcherry Hill Fe

Highland Plains P

Mount Dore Cu, Au

Wingellina Ni, Co

Speewah V, Fe, Ti

Yiddah Cu, Au, Mo

Marlborough Ni, Co

Minnamoolka Ni, Co

Kulwin Ilm, Rt, Zrn

Dargues Reef Au, Ag

Thursdays Gossan Cu

Duchess-Paradise Cbl

Mount Elliott Cu, Au

Cummins Range REE, U

Nolans Bore REE, U, P

Silver Hill Au, Ag, Cu

Tripitaka Zrn, Ilm, Rt

Babbling Brooke Hill P

Admiral Bay Zn, Pb, Ag

Nebo Babel Ni, Cu, PGE

Hera Au, Cu, Pb, Zn, Ag

Mount Lindsay Fe, W, Sn

Menninnie Dam Zn, Pb, Ag Syerston Ni, Co, Cr, PGE

Cyclone Zrn, Leu, Rt, Ilm

Snapper Rt, Zrn, Ilm, Leu

Panton PGE, Ni, Cu, Au, Cr

Mindarie Zrn, Rt, Ilm, Leu

Baal Gammon In, Cu, Sn, Ag

Kangiara Pb, Zn, Ag, Cu, Au

Chloe - Jackson Zn, Pb, Cu, Ag

Explorer 108 Zn, Pb, Au, Ag, CuLucky Break (Verde Tinto) Ni, Co

Phillipson Cbl

Lake Maitland U

Peculiar Knob Fe

Andersons Lode U

East Wintinna Cbl

Constance Range Fe

Maroochydore Cu, Co

Dugald River Zn, Pb, Ag

De Grussa Cu, Au, Ag

Hillside Cu, Au

Wonarah P

Cliffs Ni, Co

Mount Gibson FeFour Mile East U

Mount Cattlin Li, Ta

Douglas Rt, Ilm, Zrn

Kanmantoo Cu, Au, Ag

Mungana Zn, Cu, Ag, Au, Pb

Honeymoon U

Ely BxGove Bx

Cowal AuMuja Cbl

Henty Au

Weipa BxRanger U

Pardoo Fe

Callie Au

Cracow Au

Wiluna Au

Coyote Au

Huntly Bx

Yarrie Fe Sonoma Cbl

Redbank Cu

Duncan Cbl

Stawell Au

Tritton Cu

Meandu Cbl

Kara Fe, W

Dawson Cbl

Argyle Dmd

Canyon Cbl

Worsley Bx

Prospero Ni

Rocglen Cbl

Cowell Jade

Plutonic Au

Premier Cbl

Riverside Sn

Boggabri Cbl

Yallourn Cbr

Ewington Cbl

Anglesea CbrLoy Yang Cbr

White Dam Au

Mintabie Opl

Mud Tank Vrm

Baralaba Cbl

Jack Hills Fe

Challenger Au

Commodore Cbl

Koolanooka Fe

Willowdale Bx

Kimbolton Cbl

Rolleston Cbl

Andamooka Opl

Tarrawonga Cbl

Augusta Au, Sb

New Acland Cbl

Thuddungra Mgs

Bootu Creek Mn

Oraparinna Brt

Maddingley Cbr

Osborne Cu, Au

Renison Bell SnCullenswood Cbl

Mount Rawdon Au

Savage River Fe

Coober Pedy Opl

Kogan Creek Cbl

The Peak Au, CuWerris Creek Cbl

White Cliffs Opl

Plutonic East Au

Phosphate Hill P

Mount Fitton Tlc

Wilkie Creek Cbl

New Oakleigh Cbl

Dawson South Cbl

Collinsville Cbl

Frances Creek Fe

Hillgrove Au, Sb

Koolan Island Fe

Triple Chance Fel

Groote Eylandt Mn

Tallering Peak Fe

Capel Ilm, Zrn, Rt

Lake Macdonnell Gp

Century Zn, Pb, Ag

Cockatoo Island Fe

Hazelwood Mine Cbr

Cape Flattery Sisd

Jundee - Nimary Au

CSA Cu, Pb, Zn, Ag

Vera - Nancy Au, Ag

Balcooma Zn, Pb, Cu

Lightning Ridge Opl

Ginkgo Zrn, Rt, Ilm

Savannah Ni, Cu, Co

Argyle Alluvials Dmd

Eneabba Ilm, Zrn, Rt

Ludlow Ilm, Zrn, Leu

Port Gregory Grt, Ilm

Tiwi Zrn, Rt, Leu, Ilm

Tutunup South Zrn, Ilm

Mount Lyell Cu, Ag, Au

Charters Towers Au, Ag

Mount Garnet Zn, Cu, Ag

Endeavor Zn, Pb, Ag, Cu

Donald Ilm, Rt, Zrn, Leu

Angas Zn, Pb, Au, Ag, CuCapel North Ilm, Zrn, Rt

McArthur River Zn, Pb, Ag

Inverell - Glen Innes Cors

Rosebery Zn, Pb, Ag, Au, Cu

Cooljarloo Ilm, Zrn, Rt, Leu

Gingin Ilm, Rt, Zrn, Leu, Mnz

Gossan Hill Pb, Zn, Ag, Au, Cu

Jacinth - Ambrosia Zrn, Rt, Ilm

Dry River South Zn, Cu, Pb, Ag, Au

North Stradbroke Island Zrn, Rt, Ilm

Nifty Cu

Beverley U

Mammoth Cu

Callide Cbl

Narrabri Cbl

Sarsfield Au

Mount Isa Cu

Blackwood Cbl

Bronzewing Au

Telfer Au, Cu

Ellendale Dmd

Kunwarara Mgs

Tapinos Ni, Co

Fosterville Au

Mount Gordon Cu

Leigh Creek Cbl

Mount Wright Au

Beaconsfield Au

Kangaroo Flat Au

Ballarat East Au

Alec Mairs Ni, Co

Ravenswood Au, Ag

Three Springs Tlc

Mount Bischoff Sn

Boundary Hill Cbl

Boddington Au, Cu

Extension Hill Fe

Northparkes Cu, Au

Middleback Range Fe

Ernest Henry Cu, AuMount Isa Zn, Pb, Ag

Cairn Hill Cu, Au, Fe

Cannington Pb, Ag, Zn

Prominent Hill Cu, Au

Mount Keith Ni, Co, Cu

Broken Hill Zn, Pb, Ag

George Fisher Zn, Pb, Ag

Olympic Dam Cu, U, Au, Ag

Dardanup Ilm, Rt, Leu, Zrn

Greenbushes Ta, Li, Kln, Sn

The Pinnacles Pb, Zn, Ag, Au

Gwindinup North Zrn, Ilm, Rt

Que River Zn, Cu, Ag, Pb, Au

Williamstown Kln, Ky, Mica, Cy

Golden Grove Zn, Cu, Au, Ag, Pb

Waroona Shoreline Ilm, Zrn, Leu

Yoganup Shorelines Ilm, Zrn, Leu

Gwindinup South Ilm, Rt, Leu, Zrn

Coorumburra Ni, Co

AUSTRALIANOPERATING MINES

Gibb Ni

Agnew Au

Victor Ni

Darlot Au

Huntly Bx

Trident Au

Raleigh Au

Lawlers Au

Kundana Au

Worsley Bx

Wallaby Au

Burbanks Au

Prospero Ni

Long Ni, CuWestonia Au

Frogs Leg Au

Centenary Au

Cometvale Au

Brightstar Au

Lanfranchi Ni

Flying Fox Ni

Windarling Fe

White Foil Au

Wattle Dam Au

Paddington Au

Tapinos Ni, Co

Sunrise Dam Au

Lord Nelson Au

Mount Weld REE

Carosue Dam Au

Marvel Loch Au

Perseverance Au

Mariners Ni, Co

Gwalia Deeps Au

Norseman Au, Ag

Mount Jackson Fe

Koolyanobbing Fe

Mount Morgans Au

Jaguar Zn, Cu, Ag

Redross Ni, Co, Cu


Spotted Quoll Ni, Cu, Co


Super Pit Au

Otter - Juan Ni

Daisy Milano AuBullabulling Au

Perseverance Ni

Kanowna Belle Au

Alec Mairs Ni, Co

Boddington Au, Cu

Murrin Murrin Ni, Co

Ballarat Last Chance Au

Saint Ives - Kambalda Au

Yeelirrie U

Mulga Rock U

Thatcher Soak U

Lounge Lizard Ni

Goongarrie Ni, Co

Karara FeBlue Hills FeMount Karara Fe

Cliffs Ni, Co

Windimurra V, Fe, Rt, Ti

Maxwells AuSalt Creek Au

Perseverance Ni Thatcher Soak U

Mount Marion Li

Moolarben CblUlan Cbl

Wambo Cbl

Appin Cbl

Awaba CblMyuna Cbl

Austar Cbl

Ashton/Glendell/Newpac 1 Cbl

Tasman Cbl

Tahmoor Cbl

Duralie Cbl

Berrima Cbl NRE No1 Cbl

Charbon Cbl

Clarence Cbl

Cadia Au, Cu

Tallawang Fe

Baal Bone Cbl

Stratford Cbl

Mannering Cbl

Wilpinjong Cbl

Springvale Cbl

Dendrobium Cbl

Ridgeway Au, Cu

Oberon Fel, Mica

South Blakefield Cbl

United Cbl

Mount Arthur/Drayton Cbl

Liddell Cbl

Westside/Newstan Cbl

Bengalla Cbl

Pine Dale Cbl

Donaldson Cbl

Warkworth Cbl

Mandalong CblInvincible Cbl

Mount Owen Cbl

Rixs Creek Cbl

West Cliff Cbl

Bloomfield Cbl

Angus Place CblChain Valley Cbl

Metropolitan Cbl

Mount Thorley Cbl

West Wallsend Cbl

Ravensworth Narama/Hunter Valley Cbl

NRE Wongawilli Cbl

Camberwell/Glennies Creek Cbl

Muswellbrook 2 Cbl

Ravensworth West/Cumnock/Howick Cbl

Ravensworth East Cbl

Copper Hill Au, Cu

Syerston Ni, Co, Cr, PGE

Bowdens Ag, Zn, Pb

Lewis Ponds Cu, Au, Pb, Ag, Zn

McPhillamys Au, Cu

Southern Coalfield

Western CoalfieldNewcastleCoalfield

Hunter Coalfield

Wollongong

Mackay

Cook Cbl

Sonoma Cbl

Ensham Cbl

Dawson Cbl

Crinum Cbl

Saraji Cbl

Burton Cbl

Poitrel Cbl

Curragh Cbl

Minerva Cbl

Gregory CblKestrel Cbl

Foxleigh Cbl

Newlands Cbl

Baralaba Cbl

Clermont Cbl

Moorvale Cbl

Goonyella Cbl

Rolleston Cbl

Millennium Cbl

Oaky Creek Cbl

Blackwater Cbl

Peak Downs Cbl

Blair Athol Cbl

Middlemount Cbl

Norwich Park Cbl

Collinsville Cbl

Suttor Creek Cbl

Eastern Creek Cbl

Boundary Hill Cbl

Moranbah North Cbl

North Goonyella Cbl

Yarrabee Cbl

Hail Creek Cbl

Coppabella Cbl

Lake Vermont Cbl

Isaac Plains Cbl

German Creek Cbl

Lake Lindsay Cbl

Curragh North CblJellinbah East Cbl

Carborough Downs Cbl

German Creek East Cbl

South Walker Creek Cbl

Coorumburra Ni, CoMarlborough Ni, Co

LAMBERT CONFORMAL CONIC PROJECTIONCentral Meridian: 134o E Standard Parallels: 18o S, 36o S

Geocentric Datum of Australia

SCALE 1:10 000 0000 100 200 300 400 500 Kilometres

Compiled by M.B. Huleatt Cartography by G.A. Young It is recommended that this map be referred to as: Huleatt, M.B., 2010 Australian Operating Mines (1:10 000 000 scale map) Geoscience Australia, Canberra Geocat No 71229 ISBN: 978-1-921781-67-4 © Commonwealth of Australia (Geoscience Australia ) 2010 This material is released under the Creative Commons Attribution 3.0 Australia Licence . This work is copyright. Apart from any fair dealings for the purposes of study, research, criticism or review, as permitted under the Copyright Act, no part may be reproduced b y any process without written permission. Inquiries should be directed to the Communications Unit, Geoscience Australia, GPO Box 378, Canberra City, ACT, 2601 Geoscience Australia has tried to make the informat ion in this map as accurate as possible. However, Geoscience Australia does not guarantee that the information is totally accurate or complete. THEREFORE, YOU SHOULD NOT RELY SOLELY ON THIS INFORMATION WHEN MAKING A COMMERCIAL DECISION Published by Geoscience Australia, Department of Resources , Energy and Tourism, Canberra, Australia. Issued under the authority of the Federal Minister for Resources, Energy and Tourism. Geoscience Australia acknowledges the assistance provided by State and Northern Territory geoscience agencies in the preparation of this map Copies of this map may be downloaded from the Ge oscience Australia internet site at: http://www.ga.gov.au

OCTOBER 2010 (ELEVENTH EDITION)

This map shows Australian operating mines, deposits wheredevelopment has commenced or where a decision to mine hasbeen announced and selected mineral deposits. Closed mines ormines not currently operating are not shown. It illustrates broadlythe geographic distribution of mines and deposits, and the range ofselected commodities mined.

Nifty Cu

Pardoo Fe

Yarrie Fe

Wodgina Fe

HIYandi Fe

Nammuldi Fe

Paulsens Au

Marandoo Fe

Ant Hill Mn

BHPBYandi Fe

Jimblebar Fe

Orebody 23 Fe

Deepdale A Fe

Deepdale J Fe

Paraburdoo Fe

Orebody 18 FeHope Downs Fe

Orebody 25 Fe

Cloud Break Fe

West Angelas Fe

Eastern Range Fe

Woodie Woodie MnWhundo Cu, Zn, Ag

Whim Creek Cu, Zn

Christmas Creek Fe

Mount Tom Price Fe

Mining Area C Fe

Mount Whaleback Fe

Hardey Fe

Solomon FeRoy Hill FeMarillana Fe

Nullagine Fe

Abra Pb, Cu, Au

McPhee Creek Fe

Balla Balla V, Fe

Mount Nicholas Fe

Robertson Range FePrairie Downs Zn, Pb, Ag

Abydos Fe

Railway Fe

Yalleen Fe

Wonmunna Fe

Iron Valley Fe

Davidson Creek Fe

Boolgeeda Creek Fe

Brockman 4 Fe

Balmoral Central Fe

A

A

B

B

C

C

D

D

Kalgoorlie-Boulder

Developing mine

Operating mine

Mineral deposit

MAIN MINERALISED REGIONSBY PREDOMINANT AGE

Mainly Phanerozoic basin cover

Paleozoic to Mesozoic

Paleozoic (542-251 million years old)

Proterozoic to Paleozoic

Proterozoic (2500-542 million years old)

Archean to Proterozoic

Archean (>2500 million years old)

SYDNEY

Newcastle

MnMnzMoNi OplOshP PbPGERe REE Rt SbSisd SnTaTiTlcU VVrm W ZnZrn

COMMODITIESAgAuBrtBxCblCbrCoCorsCrCuCyDmdFeFelGpGrtIlmInJadeKlnKyLeuLiMgs

SilverGoldBariteBauxiteCoal (black)Coal (brown)CobaltCorundumChromiumCopperClayDiamondIronFeldsparGypsumGarnetIlmeniteIndiumJadeKaolinKyaniteLeucoxeneLithiumMagnesite

ManganeseMonaziteMolybdenumNickelOpalOil ShalePhosphorousLeadPlatinum Group ElementsRheniumRare Earth ElementsRutileAntimonySilica sandTinTantalumTitaniumTalcUraniumVanadiumVermiculiteTungstenZincZircon


Minerals operations

TORRES STRAIT

CORAL SEA

Great

Reef

Barrier

Gulf

Carpentaria

TASMAN

SEA

BASS STRAIT


INDIAN

OCEAN

TIMOR SEA

JosephBonaparte

Gulf

of

8o

120o

132o144

o

8o

16o

24o

32o

40o

108o

120o

132o 144o

156o

40o

32o

24o

16o

NORTHERN TERRITORY


NEW SOUTH WALES

VICTORIA

TASMANIA

SOUTH AUSTRALIA

ACT

INDONESIAPAPUA NEW

GUINEA

Mackay

Townsville

Cairns

Normanton

Alice Springs

Mount Isa

Kalgoorlie-Boulder

PERTH

Albany

Esperance

Carnarvon

Geraldton

Port Hedland

Broome

DARWIN

Oodnadatta

Ceduna

ADELAIDE

Mildura

Warrnambool

MELBOURNE

HOBART

CANBERRA

SYDNEY

Wollongong

Newcastle

Bourke

Tamworth

Port Macquarie

Grafton

BRISBANE

Longreach

Gladstone

Skal U

Lock Cbl

Angela U

D-Tree P

Kintyre U

Redtree U

Karara Fe

Stuart Osh

Bindoon Bx

Sequoia Fe

Merlin Dmd

Valhalla U

Rundle Osh

Aurukun Bx

Lake Way U

Wilgerup Fe

Eneabba Cbl

Thortonia P

Mount Gee U

Centipede U

Yeelirrie U

Weedina Cbl


Lady Jane P

Gum Flat Fe

Dandaragan P

Brolga Ni,Co

Southdown Fe

Bigrlyi U, V

Wintinna Cbl

Goulds Dam U

Lady Annie P

Junnagunna U

Merriland Au

Tropicana Au

Roper Bar Fe

Myrtle Zn, Pb



Golf Bore Au

Agate Creek Au

Wiluna West Fe

Marsden Cu, Au

Crocker Well U

Witchelina Mgs


Bennetts Well U

Monakoff Cu, Au

Sherrin Creek P

Abra Pb, Cu, Au

Young Nickel Ni

Wilgena Hill Fe

Rocklands Cu, Co

Murloocoppie Cbl

Irvine Island Fe

Wilcherry Hill Fe

Highland Plains P

Mount Dore Cu, Au

Wingellina Ni, Co

Speewah V, Fe, Ti

Yiddah Cu, Au, Mo

Marlborough Ni, Co

Minnamoolka Ni, Co

Kulwin Ilm, Rt, Zrn

Dargues Reef Au, Ag

Thursdays Gossan Cu





















Phillipson Cbl

Lake Maitland U

Peculiar Knob Fe

Andersons Lode U

East Wintinna Cbl

Constance Range Fe

Maroochydore Cu, Co



Hillside Cu, Au

Wonarah P

Cliffs Ni, Co






Honeymoon U

Ely BxGove Bx

Cowal AuMuja Cbl

Henty Au

Weipa BxRanger U

Pardoo Fe

Callie Au

Cracow Au

Wiluna Au

Coyote Au

Huntly Bx


Redbank Cu

Duncan Cbl

Stawell Au

Tritton Cu

Meandu Cbl

Kara Fe, W

Dawson Cbl

Argyle Dmd

Canyon Cbl

Worsley Bx

Prospero Ni

Rocglen Cbl

Cowell Jade

Plutonic Au

Premier Cbl

Riverside Sn

Boggabri Cbl

Yallourn Cbr

Ewington Cbl


White Dam Au

Mintabie Opl

Mud Tank Vrm

Baralaba Cbl

Jack Hills Fe

Challenger Au

Commodore Cbl

Koolanooka Fe

Willowdale Bx

Kimbolton Cbl

Rolleston Cbl

Andamooka Opl

Tarrawonga Cbl

Augusta Au, Sb

New Acland Cbl

Thuddungra Mgs

Bootu Creek Mn

Oraparinna Brt

Maddingley Cbr

Osborne Cu, Au


Mount Rawdon Au

Savage River Fe

Coober Pedy Opl

Kogan Creek Cbl


White Cliffs Opl

Plutonic East Au

Phosphate Hill P

Mount Fitton Tlc

Wilkie Creek Cbl

New Oakleigh Cbl

Dawson South Cbl

Collinsville Cbl

Frances Creek Fe

Hillgrove Au, Sb

Koolan Island Fe

Triple Chance Fel

Groote Eylandt Mn

Tallering Peak Fe

Capel Ilm, Zrn, Rt

Lake Macdonnell Gp

Century Zn, Pb, Ag

Cockatoo Island Fe

Hazelwood Mine Cbr

Cape Flattery Sisd

Jundee - Nimary Au

CSA Cu, Pb, Zn, Ag

Vera - Nancy Au, Ag

Balcooma Zn, Pb, Cu

Lightning Ridge Opl

Ginkgo Zrn, Rt, Ilm

Savannah Ni, Cu, Co






















Nifty Cu

Beverley U

Mammoth Cu

Callide Cbl

Narrabri Cbl

Sarsfield Au

Mount Isa Cu

Blackwood Cbl

Bronzewing Au

Telfer Au, Cu

Ellendale Dmd

Kunwarara Mgs

Tapinos Ni, Co

Fosterville Au

Mount Gordon Cu

Leigh Creek Cbl

Mount Wright Au

Beaconsfield Au

Kangaroo Flat Au

Ballarat East Au

Alec Mairs Ni, Co

Ravenswood Au, Ag

Three Springs Tlc

Mount Bischoff Sn

Boundary Hill Cbl

Boddington Au, Cu

Extension Hill Fe

Northparkes Cu, Au

Middleback Range Fe



















Coorumburra Ni, Co


Gibb Ni

Agnew Au

Victor Ni

Darlot Au

Huntly Bx

Trident Au

Raleigh Au

Lawlers Au

Kundana Au

Worsley Bx

Wallaby Au

Burbanks Au

Prospero Ni


Frogs Leg Au

Centenary Au

Cometvale Au

Brightstar Au

Lanfranchi Ni

Flying Fox Ni

Windarling Fe

White Foil Au

Wattle Dam Au

Paddington Au

Tapinos Ni, Co

Sunrise Dam Au

Lord Nelson Au

Mount Weld REE

Carosue Dam Au

Marvel Loch Au

Perseverance Au

Mariners Ni, Co

Gwalia Deeps Au

Norseman Au, Ag

Mount Jackson Fe

Koolyanobbing Fe

Mount Morgans Au

Jaguar Zn, Cu, Ag

Redross Ni, Co, Cu




Super Pit Au

Otter - Juan Ni


Perseverance Ni

Kanowna Belle Au

Alec Mairs Ni, Co

Boddington Au, Cu




Yeelirrie U

Mulga Rock U

Thatcher Soak U

Lounge Lizard Ni

Goongarrie Ni, Co


Cliffs Ni, Co




Mount Marion Li


Wambo Cbl

Appin Cbl

Awaba CblMyuna Cbl

Austar Cbl


Tasman Cbl

Tahmoor Cbl

Duralie Cbl


Charbon Cbl

Clarence Cbl

Cadia Au, Cu

Tallawang Fe

Baal Bone Cbl

Stratford Cbl

Mannering Cbl

Wilpinjong Cbl

Springvale Cbl

Dendrobium Cbl

Ridgeway Au, Cu

Oberon Fel, Mica


United Cbl


Liddell Cbl


Bengalla Cbl

Pine Dale Cbl

Donaldson Cbl

Warkworth Cbl


Mount Owen Cbl

Rixs Creek Cbl

West Cliff Cbl

Bloomfield Cbl


Metropolitan Cbl

Mount Thorley Cbl

West Wallsend Cbl


NRE Wongawilli Cbl


Muswellbrook 2 Cbl



Copper Hill Au, Cu


Bowdens Ag, Zn, Pb


McPhillamys Au, Cu

Southern Coalfield


Hunter Coalfield

Wollongong

Mackay

Cook Cbl

Sonoma Cbl

Ensham Cbl

Dawson Cbl

Crinum Cbl

Saraji Cbl

Burton Cbl

Poitrel Cbl

Curragh Cbl

Minerva Cbl


Foxleigh Cbl

Newlands Cbl

Baralaba Cbl

Clermont Cbl

Moorvale Cbl

Goonyella Cbl

Rolleston Cbl

Millennium Cbl

Oaky Creek Cbl

Blackwater Cbl

Peak Downs Cbl

Blair Athol Cbl

Middlemount Cbl

Norwich Park Cbl

Collinsville Cbl

Suttor Creek Cbl

Eastern Creek Cbl

Boundary Hill Cbl

Moranbah North Cbl

North Goonyella Cbl

Yarrabee Cbl

Hail Creek Cbl

Coppabella Cbl

Lake Vermont Cbl

Isaac Plains Cbl

German Creek Cbl

Lake Lindsay Cbl












Nifty Cu

Pardoo Fe

Yarrie Fe

Wodgina Fe

HIYandi Fe

Nammuldi Fe

Paulsens Au

Marandoo Fe

Ant Hill Mn

BHPBYandi Fe

Jimblebar Fe

Orebody 23 Fe

Deepdale A Fe

Deepdale J Fe

Paraburdoo Fe


Orebody 25 Fe

Cloud Break Fe

West Angelas Fe

Eastern Range Fe


Whim Creek Cu, Zn

Christmas Creek Fe

Mount Tom Price Fe

Mining Area C Fe

Mount Whaleback Fe

Hardey Fe


Nullagine Fe

Abra Pb, Cu, Au

McPhee Creek Fe

Balla Balla V, Fe

Mount Nicholas Fe


Abydos Fe

Railway Fe

Yalleen Fe

Wonmunna Fe

Iron Valley Fe

Davidson Creek Fe

Boolgeeda Creek Fe

Brockman 4 Fe

Balmoral Central Fe

A

A

B

B

C

C

D

D

Kalgoorlie-Boulder

Developing mine

Operating mine

Mineral deposit









SYDNEY

Newcastle





TORRES STRAIT

CORAL SEA

Great

Reef

Barrier

Gulf

Carpentaria

TASMAN

SEA

BASS STRAIT


INDIAN

OCEAN

TIMOR SEA

JosephBonaparte

Gulf

of

8o

120o

132o144

o

8o

16o

24o

32o

40o

108o

120o

132o 144o

156o

40o

32o

24o

16o

NORTHERN TERRITORY


NEW SOUTH WALES

VICTORIA

TASMANIA

SOUTH AUSTRALIA

ACT

INDONESIAPAPUA NEW

GUINEA

Mackay

Townsville

Cairns

Normanton

Alice Springs

Mount Isa

Kalgoorlie-Boulder

PERTH

Albany

Esperance

Carnarvon

Geraldton

Port Hedland

Broome

DARWIN

Oodnadatta

Ceduna

ADELAIDE

Mildura

Warrnambool

MELBOURNE

HOBART

CANBERRA

SYDNEY

Wollongong

Newcastle

Bourke

Tamworth

Port Macquarie

Grafton

BRISBANE

Longreach

Gladstone

Skal U

Lock Cbl

Angela U

D-Tree P

Kintyre U

Redtree U

Karara Fe

Stuart Osh

Bindoon Bx

Sequoia Fe

Merlin Dmd

Valhalla U

Rundle Osh

Aurukun Bx

Lake Way U

Wilgerup Fe

Eneabba Cbl

Thortonia P

Mount Gee U

Centipede U

Yeelirrie U

Weedina Cbl


Lady Jane P

Gum Flat Fe

Dandaragan P

Brolga Ni,Co

Southdown Fe

Bigrlyi U, V

Wintinna Cbl

Goulds Dam U

Lady Annie P

Junnagunna U

Merriland Au

Tropicana Au

Roper Bar Fe

Myrtle Zn, Pb



Golf Bore Au

Agate Creek Au

Wiluna West Fe

Marsden Cu, Au

Crocker Well U

Witchelina Mgs


Bennetts Well U

Monakoff Cu, Au

Sherrin Creek P

Abra Pb, Cu, Au

Young Nickel Ni

Wilgena Hill Fe

Rocklands Cu, Co

Murloocoppie Cbl

Irvine Island Fe

Wilcherry Hill Fe

Highland Plains P

Mount Dore Cu, Au

Wingellina Ni, Co

Speewah V, Fe, Ti

Yiddah Cu, Au, Mo

Marlborough Ni, Co

Minnamoolka Ni, Co

Kulwin Ilm, Rt, Zrn

Dargues Reef Au, Ag

Thursdays Gossan Cu





















Phillipson Cbl

Lake Maitland U

Peculiar Knob Fe

Andersons Lode U

East Wintinna Cbl

Constance Range Fe

Maroochydore Cu, Co



Hillside Cu, Au

Wonarah P

Cliffs Ni, Co






Honeymoon U

Ely BxGove Bx

Cowal AuMuja Cbl

Henty Au

Weipa BxRanger U

Pardoo Fe

Callie Au

Cracow Au

Wiluna Au

Coyote Au

Huntly Bx


Redbank Cu

Duncan Cbl

Stawell Au

Tritton Cu

Meandu Cbl

Kara Fe, W

Dawson Cbl

Argyle Dmd

Canyon Cbl

Worsley Bx

Prospero Ni

Rocglen Cbl

Cowell Jade

Plutonic Au

Premier Cbl

Riverside Sn

Boggabri Cbl

Yallourn Cbr

Ewington Cbl


White Dam Au

Mintabie Opl

Mud Tank Vrm

Baralaba Cbl

Jack Hills Fe

Challenger Au

Commodore Cbl

Koolanooka Fe

Willowdale Bx

Kimbolton Cbl

Rolleston Cbl

Andamooka Opl

Tarrawonga Cbl

Augusta Au, Sb

New Acland Cbl

Thuddungra Mgs

Bootu Creek Mn

Oraparinna Brt

Maddingley Cbr

Osborne Cu, Au


Mount Rawdon Au

Savage River Fe

Coober Pedy Opl

Kogan Creek Cbl


White Cliffs Opl

Plutonic East Au

Phosphate Hill P

Mount Fitton Tlc

Wilkie Creek Cbl

New Oakleigh Cbl

Dawson South Cbl

Collinsville Cbl

Frances Creek Fe

Hillgrove Au, Sb

Koolan Island Fe

Triple Chance Fel

Groote Eylandt Mn

Tallering Peak Fe

Capel Ilm, Zrn, Rt

Lake Macdonnell Gp

Century Zn, Pb, Ag

Cockatoo Island Fe

Hazelwood Mine Cbr

Cape Flattery Sisd

Jundee - Nimary Au

CSA Cu, Pb, Zn, Ag

Vera - Nancy Au, Ag

Balcooma Zn, Pb, Cu

Lightning Ridge Opl

Ginkgo Zrn, Rt, Ilm

Savannah Ni, Cu, Co






















Nifty Cu

Beverley U

Mammoth Cu

Callide Cbl

Narrabri Cbl

Sarsfield Au

Mount Isa Cu

Blackwood Cbl

Bronzewing Au

Telfer Au, Cu

Ellendale Dmd

Kunwarara Mgs

Tapinos Ni, Co

Fosterville Au

Mount Gordon Cu

Leigh Creek Cbl

Mount Wright Au

Beaconsfield Au

Kangaroo Flat Au

Ballarat East Au

Alec Mairs Ni, Co

Ravenswood Au, Ag

Three Springs Tlc

Mount Bischoff Sn

Boundary Hill Cbl

Boddington Au, Cu

Extension Hill Fe

Northparkes Cu, Au

Middleback Range Fe



















Coorumburra Ni, Co


Gibb Ni

Agnew Au

Victor Ni

Darlot Au

Huntly Bx

Trident Au

Raleigh Au

Lawlers Au

Kundana Au

Worsley Bx

Wallaby Au

Burbanks Au

Prospero Ni


Frogs Leg Au

Centenary Au

Cometvale Au

Brightstar Au

Lanfranchi Ni

Flying Fox Ni

Windarling Fe

White Foil Au

Wattle Dam Au

Paddington Au

Tapinos Ni, Co

Sunrise Dam Au

Lord Nelson Au

Mount Weld REE

Carosue Dam Au

Marvel Loch Au

Perseverance Au

Mariners Ni, Co

Gwalia Deeps Au

Norseman Au, Ag

Mount Jackson Fe

Koolyanobbing Fe

Mount Morgans Au

Jaguar Zn, Cu, Ag

Redross Ni, Co, Cu




Super Pit Au

Otter - Juan Ni


Perseverance Ni

Kanowna Belle Au

Alec Mairs Ni, Co

Boddington Au, Cu




Yeelirrie U

Mulga Rock U

Thatcher Soak U

Lounge Lizard Ni

Goongarrie Ni, Co


Cliffs Ni, Co




Mount Marion Li


Wambo Cbl

Appin Cbl

Awaba CblMyuna Cbl

Austar Cbl


Tasman Cbl

Tahmoor Cbl

Duralie Cbl


Charbon Cbl

Clarence Cbl

Cadia Au, Cu

Tallawang Fe

Baal Bone Cbl

Stratford Cbl

Mannering Cbl

Wilpinjong Cbl

Springvale Cbl

Dendrobium Cbl

Ridgeway Au, Cu

Oberon Fel, Mica


United Cbl


Liddell Cbl


Bengalla Cbl

Pine Dale Cbl

Donaldson Cbl

Warkworth Cbl


Mount Owen Cbl

Rixs Creek Cbl

West Cliff Cbl

Bloomfield Cbl


Metropolitan Cbl

Mount Thorley Cbl

West Wallsend Cbl


NRE Wongawilli Cbl


Muswellbrook 2 Cbl



Copper Hill Au, Cu


Bowdens Ag, Zn, Pb


McPhillamys Au, Cu

Southern Coalfield


Hunter Coalfield

Wollongong

Mackay

Cook Cbl

Sonoma Cbl

Ensham Cbl

Dawson Cbl

Crinum Cbl

Saraji Cbl

Burton Cbl

Poitrel Cbl

Curragh Cbl

Minerva Cbl


Foxleigh Cbl

Newlands Cbl

Baralaba Cbl

Clermont Cbl

Moorvale Cbl

Goonyella Cbl

Rolleston Cbl

Millennium Cbl

Oaky Creek Cbl

Blackwater Cbl

Peak Downs Cbl

Blair Athol Cbl

Middlemount Cbl

Norwich Park Cbl

Collinsville Cbl

Suttor Creek Cbl

Eastern Creek Cbl

Boundary Hill Cbl

Moranbah North Cbl

North Goonyella Cbl

Yarrabee Cbl

Hail Creek Cbl

Coppabella Cbl

Lake Vermont Cbl

Isaac Plains Cbl

German Creek Cbl

Lake Lindsay Cbl












Nifty Cu

Pardoo Fe

Yarrie Fe

Wodgina Fe

HIYandi Fe

Nammuldi Fe

Paulsens Au

Marandoo Fe

Ant Hill Mn

BHPBYandi Fe

Jimblebar Fe

Orebody 23 Fe

Deepdale A Fe

Deepdale J Fe

Paraburdoo Fe


Orebody 25 Fe

Cloud Break Fe

West Angelas Fe

Eastern Range Fe


Whim Creek Cu, Zn

Christmas Creek Fe

Mount Tom Price Fe

Mining Area C Fe

Mount Whaleback Fe

Hardey Fe


Nullagine Fe

Abra Pb, Cu, Au

McPhee Creek Fe

Balla Balla V, Fe

Mount Nicholas Fe


Abydos Fe

Railway Fe

Yalleen Fe

Wonmunna Fe

Iron Valley Fe

Davidson Creek Fe

Boolgeeda Creek Fe

Brockman 4 Fe

Balmoral Central Fe

A

A

B

B

C

C

D

D

Kalgoorlie-Boulder

Developing mine

Operating mine

Mineral deposit









SYDNEY

Newcastle






What is the MCa

The MCA advocates consis tent and balanced policy settings for:

� an industry free of fatalities, injuries and diseases;

� a m a c r o - e c o n o m i c f r a m e w o r k conducive to global competitiveness and sustainable economic growth, which is characterised by low inflation, low interest rates and fiscal prudence;

� a sk i l led, product ive and f lex ible workforce;

� efficient export infrastructure;

� reconci l ing energy secur i t y with managing climate change as part of a sustainable global solution;

� a seamless and efficient Federation characterised by consistent regulation;

� access to competitive markets for capital, production inputs, human resources, and end products;

� a c c e s s to n a t u r a l re s o u rc e s a n d competitive markets for land, water and energy;

� a f a i r a n d s t a b l e s o c i e t y w h e r e effort is encouraged and rewarded, and support is extended to those in need;

� mutually beneficial relationships with Indigenous and local communities through engagement and capacity building; and

� improved environmental performance for a sustainable natural environment embracing longer term considerations for sustainable eco-systems beyond life of mine.

The MIneRalS COunCIl Of auSTRalIa’S mandate is

to represent Australia’s exploration, mining and minerals processing industry, nationally and internationally, in its contribution to sustainable development and society.

MCA member companies produce more than 85 per cent of Australia’s annual mineral production and over 90 per cent of Australia’s mineral export earnings.

The industry the MCA represents is physi-cally, economically and socially significant by any measure. It is diverse geographically, structurally, and in the production and export of mineral products. The industry is innovative, technologically advanced, capital intensive, and environmentally and socially progressive.

The industry is profoundly integrated into the world’s capital, product, and human resource markets.

The MCA is, in essence, the corporate affairs division of the Australian minerals industry. It represents the minerals industry with a common purpose in:

� advocating pre-competitive or generic public policy for a socio-economic environment conducive to growth and prosperity;

� identifying and promoting leading operation principles; and

� engaging with opinion leaders and other stakeholders building a public presence that reflects the industry’s contribution to the sustainable economic benefit of all Australians.

The future of the Australian minerals industry is inseparable from the global pursuit of sustainable development. The industry is committed to contributing to the sustained growth and prosperity of current and future generations through the integration of economic progress, responsible social development and effective environmental management.

The MCA’s strategic objective is to advocate public policy and operational practice for a globally competitive industry that is safe, profitable, innovative and environmentally and socially responsible.

The MIneRalS COunCIl Of auSTRalIa’S MandaTe IS TO RePReSenT

auSTRalIa’S exPlORaTIOn, MInIng and MIneRalS PROCeSS-Ing InduSTRy, naTIOnally and InTeRnaTIOnally, In ITS COnTRIbuTIOn TO SuSTaInable develOPMenT and SOCIeTy.


ChairMan’s year in revieW

In health and safety, the minerals industry tragically experienced five fatalities in 2009-2010. A further two fatalities occurred in the extractive/quarry sector giving a total of seven fatalities for minerals and extractive industries.

We recognise that even greater collective ef fort is needed based on leadership, systems, people, culture and behaviour working in unison –to eliminate fatalities in the minerals sector.

Resources Super Profits Tax Without doubt, 2010 will be remembered by the minerals industry for the Federal Government’s surprise announcement of the 40 per cent Resources Super Profits Tax.

Labelled a tax on the so-called super profits of Australia’s major mining companies, the Government’s proposal represented a revenue grab from an industry already paying Australia’s largest taxes.

auSTRalIa’S MIneRalS InduSTRy ReCORded

a STROng PeRfORManCe In 2010, ThOugh The yeaR ended wITh MajOR OuTPuT dISRuPTIOnS In The COal SeCTOR due TO SeveRe flOOdIng In QueenSland.

While recovery in this sector will take many months, and require determined action by companies and all levels of government, the outlook for the minerals industry continues to be positive based on historically strong commodity prices and the prospect of continued demand growth in key Asian markets.

In 2009-10, the value of Australia’s minerals exports was $138 billion. Minerals exports currently account for around half of Australia’s total exports of goods and services with coal and iron ore alone making up one third.

Australian Bureau of Statistics figures show that mining industry investment (including oil and gas) is at historically high levels and accounted for around 40 per cent of new capital expenditure across all surveyed industries in the September quarter 2010.

In the minerals sector specifically, the Australian Bureau of Agricultural and Resource Economics and Sciences reports that advanced projects (those either committed or under construction) totalled $45.2 billion in the six months to October 2010, while less advanced projects have a total potential capital expenditure of $131.2 billion.

Employment in the minerals industry grew to 187,200 in the December quarter 2010, 21 per cent higher than a year earlier. The industry is a key driver of economic activity in regional and remote Australia, accounting for 30 per cent of direct employment in some regions. The industry is the largest source of private sec tor employment for Indigenous Australians who comprise up to a quarter of employees in certain locations.

The industry’s environmental performance is continuing to improve with an increased f o c u s o n r e s o u rce u s e e f f i c i e n c y, including in relation to energy, water and chemicals. The industry has also taken steps to improve land use planning and management, particularly in areas where operations intersect with agriculture and other industrial sectors.


ChairMan’s year in revieW

threat to sustainable growth in Australia and to the nation’s ability to take advantage of strong mineral commodity demand. These intertwined challenges should be the focus of Government policy in 2011 and beyond.

Australia requires a bolder and better integrated economic reform agenda if it is to convert current strong demand for mineral commodities into lasting prosperity for the benefit of all Australians.

Comparative advantage does not equate automatically to competitive strength. Policy settings need to take full account of the mining industr y ’s globalised nature, where companies have a range of investment and production options and where Australia has no monopoly on resource endowment.

Last year ’s resource taxation debate highlighted this imperative. It is no less relevant to climate policy decisions this year and to the broader economic reform challenge of tackling the nation’s capacity constraints and f lagging productivity performance. In reality, there is a small margin of policy error if Australia is to take full advantage of the boom.

Finally, I would like to take this opportunity to thank my fellow Board members, the state organisations and the secretariat of the MCA for their outstanding work in 2010 to promote the minerals industry as the cornerstone of the Australian economy.

I look forward to 2011 being a year in which the industry continues to grow and prosper.

Peter Johnston Chairman

During a year-long review of Australia’s tax system, the Government had assured the industry it would embrace a consultation process for the reform of mining taxation, instead a finished tax plan was announced.

The Minerals Council of Australia imme-diately developed a campaign strategy to defend the industry and push for genuine tax reform rather than a revenue grab.

As a result of the MCA campaign –public support for the tax plummeted leading to the axing of the original super profits proposal.

During a tumultuous political period, the Labor Government installed a new Prime Minister, Julia Gillard, whose first act as leader was to open negotiations with the mining industry on the super profits tax.

Two weeks later the industry announced a breakthrough agreement on a new mining tax – the Minerals Resources Rent Tax.

The super mining tax debate represented some of the most challenging aspects of public-policy making that we have seen in this country. Poor policy choices increase the cost of doing business in Australia (relative to global competitors) and for the f irst time sovereign risk became an issue for the Australian resources sector. Stable and globally competitive taxation and climate policy settings are of paramount importance if Australia is to take maximum advantage of this period of strong commodity demand.

Challenges aheadHigh ter ms o f t r ade have b o os te d national income over the last decade, but they have also masked structural weaknesses in the Australian economy. Flat-lining productivity and supply side bottlenecks (for labour, capital, materials and infrastructure) represent the primary


Ceo’s revieW

Both policy proposals had at their heart, regrettably, a political rather than policy motivation. In the case of the CPRS, the policy was clearly designed to position the Government at the expense of their political opponents, and the RSPT proposal was an attempt to divide the industry and differentiate it from the rest of Australia.

As we move forward, it will be critical that the hard lessons learned from both of these rather bruising debates are applied to new policy proposals. Nowhere will this be more critical than in the development of a carbon pricing scheme for Australia.

Key among those lessons is that when business and Government share a reform objective, there is a greater prospect of successful reform in the national interest.

W h i l e t h e R S P T a n d C P R S d e b a t e understandably dominated the industry’s agenda in 2010, the MCA was instrumental in positively positioning the industry and delivering strong outcomes across a range of economic, social and environmental issues, key among them:

2010 wa S O n e O f T h e MOST SIgnIfICanT

yeaRS fOR The MCa, aRguably S I n C e I T S I n C e P T I O n . Af ter a concerted advocacy effort to highlight the flaws in the proposed Carbon Pollution Reduction Scheme (CPRS) and the collapse of the global climate talks at Copenhagen, the climate change plan was abandoned by the then Prime Minister Kevin Rudd in early 2010.

T he CPRS would have dramat ica l ly undermined Australia’s resource-export sec tor for l i t t le i f any reduc t ion in greenhouse gas emissions.

Then in May, following a year-long review of the taxation system led by the Federal Treasury, the Prime Minister announced the Resources Super Profits Tax (RSPT) – the essence of which was a 40 per cent tax on earnings above the long term bond rate of circa 5.75 per cent, imposing the world’s highest rate of tax on the minerals industry.

In announcing the tax, the Government directly contravened assurances there would be extensive industry consultation before any new mining taxes were proposed.

T he R SP T prop os a l threatene d the destruction of project and company value, increasesd Australia’s sovereign risk standing, placed a chill on investment, representing a material threat to the viability of the mining industry in Australia negative long lasting impact on future generations.

The MCA responded with a highly effective national public affairs campaign the result of which was the scrapping of the RSPT. After the RSPT was dumped, the industry was able to negotiate an agreed policy framework in the form of the Minerals Resources Rent Tax (MRRT), the detail of which we have been assiduously working on to ensure is honoured in proposed legislation.

Both the RSPT and CPRS debate encap-sulated everything that can be wrong with public policy making in Australia. Both proposals were developed in the vacuum of Canberra’s bureaucracy without any regard to the commercial realities of modern business.


Ceo’s revieW

� Reform of the Environmental Protection and Biodiversity Conservation (EPBC) Act to address current impediments for short term administration incompetency and longer term systemic reform identifying the Commonwealth’s role in strategic land use planning identifying land use values and conditions of use in prioritised regions;

� Succeeded in positioning the minerals industry as a high-value, low-volume consumer of water in the ongoing COAG water reform process; and developed a minerals industry water accounting framework;

� Successfu l ly over turned planned changes to the International Maritime Dangerous Goods Code that would have significantly and unnecessarily added to the regulatory burden of shipping ore-concentrates from Australia;

� Ad v o c a t e d c h a n g e s t o N a t i o n a l Environmental Protection Measures (NEPM), Ambient Air Quality;

� Instigated an Australian Government Extractive Industr ies Transparency Initiative pilot project in Australia to provide a credible third party framework to validate the extent of the industry’s taxation and economic contribution to governments;

� Significant changes to the Government’s Draft Indigenous Economic Strategy in concert with the National Native Title Council emphasising the need for a stronger focus on economic development, rather than welfare and the minerals industry ’s pivotal role particularly in regional and remote areas;

� Significant progress in underscoring the imperative of regulatory reform in project approvals and Part III A of the Trade Practices Act in encouraging private investment in infrastructure.

� Sustained advocacy on the benefits of market-oriented economic reform and on the dangers from interventionist approaches to perceived economic challenges under the guise of a so called “two-speed economy”;

� The finalisation of the Model Work Health and Safety Act and drafting of supporting regulations and Codes of Practice for a preventative, risk based management system to regulating safety and health across the nation;

� Increased graduate completions in earth sciences, mining engineering and metal lurgy in 2010 to record levels, albeit still well short of what is needed by industry to alleviate the skills shortage in these disciplines - through the Minerals Tertiary Education Council program;

� Instrumental in shaping the strategy for government and industry partnership in addressing skilled labour shortages specifically impact assessment reporting, associate degrees in mining engineering, barr iers to entry for women, early entry and advanced apprenticeships and improved education and career information in schools;

� Pioneered development of a National Apprenticeships Program with East Coast Apprenticeships (a Brisbane based Group Training Organisation) which will significantly grow the number of trade qualified people in the resources sector through a national advanced early entry apprentice training program;

� Developed an indigenous training pilot program in the Northern Territory producing 19 graduates who entered the workforce and will form the basis of a new Indigenous training and development program in the Northern Territory;

� W i t h t h e N a t i o n a l N a t i v e T i t l e Council, developed a new governance model akin to a “quasi trust” for the treatment of native title payments, under consideration by the Federal Government;

� E s t a b l i s h e d a M e m o r a n d u m o f Understanding with the National Farmers Federation to work more closely on land access issues between agriculture and mining, as a step towards developing a national framework of principles for integrated land use planning and management;


Ceo’s revieW

The year aheadWith Federal and State Governments imp l em ent in g o r p ro p os in g w id e -ranging reforms in 2011 – including the implementation of the MRRT, measures to price carbon, changes to water policies, land access arrangements and efforts to streamline regulation – and an increasingly difficult industrial relations environment, it is critical that the minerals industry has a strong and credible national voice in public policy and industry representation.

Prime Minister Julia Gillard has identified 2011 as a year of “decision and delivery” and nominated pricing carbon as a key goal. With the Greens wielding unprecedented inf luence over the Federal Parliament there is a real risk the industry will face a punitive carbon policy and potentially a re-run of the Carbon Pollution Reduction Scheme.

Within this chal lenging p ol ic y and industrial environment, the MCA has again outlined an ambitious advocacy agenda including:

� pursuing taxation reform, including the implementation of the MRRT, in line with the need for stable and internationally competitive taxation and royalties systems;

� promoting the industry’s interests in balancing energy security with policies to manage climate change;

� reconciling the minerals industry ’s prominence as a major economic engine of regional deve lopment with Government responsibility for the provision of social and physical infrastructure;

� developing nationally co-ordinated approaches to capacity constraints, including export infrastructure, business regulat ion , mine safet y, nat ional competition policy, water and energy reform;

� representing the industry’s interests in the high profile national debate over workplace relations reform;

� a multi-faceted approach to addressing shortages in human capital by expanding the pool of talent, direct support for minerals related tertiary courses, and through skilled immigration and gender and cultural diversity programs;

� improving the safety and health of our workforce and surrounding communities;

� pursuing a progressive Indigenous relations strategy, incorporating a consensus approach between industry and Indigenous leaders to improve the efficiency and operability of the native title system, and building sustainable Indigenous communities under a new industry/government Memorandum of Understanding;

� seeking nationally consistent project approval processes – efficient and effective regulation, co-ordinated across federal and state jurisdictions to reduce costs and minimise the lag phase between discovery and the commissioning of production projects;

� in i t iat ives a imed at reducing the structural impediments to a stronger exploration effort, especially for junior explorers and green fields exploration;

� targeted and effective representation on internat ional issues including multilateral trade liberalisation and free trade agreements; and

� promoting research, development and demonstration public policy and institutional capacity for innovation and technological progress.

The ef fective execution of this policy agenda is critical to ensuring that Australia’s socio-economic environment is conducive to industry’s international competitiveness, investment and growth. Australia has a comparative advantage in natural resource endowment, and we maintain our confidence in the “super cycle” of minerals demand.

However, this is no guarantee of competi-tive strength, nor global market share, in an industry that has never been more globally integrated, with such mobility of capital, people and technology, able to be strategically deployed for the greatest return. Australia must get the policy settings right.

Mitchell H. Hooke Chief Executive Officer


2010 signature aChieveMents

� Developed an indigenous training pilot program in the Northern Territory producing 19 graduates who entered the workforce and will form the basis of a new Indigenous training and development program in the Northern Territory;

� With the National Native Title Council, d e v e l o p e d a n e w g o v e r n a n c e model akin to a “quasi trust” for the treatment of native title payments, under consideration by the Federal Government;

� E s t a b l i s h e d a M e m o r a n d u m o f Understanding with the National Farmers Federation to work more closely on land access issues between agriculture and mining, as a step towards developing a national framework of principles for integrated land use planning and management;

� Sustained advocacy on the benefits of market-oriented economic reform and on the dangers from interventionist approaches to (perceived) economic challenges under the guise of a so called “two-speed economy”;

� The finalisation of the Model Work Health and Safety Act and drafting of supporting regulations and Codes of Practice for a preventative, risk based management system to regulating safety and health across the nation;

� Increased graduate completions in earth sciences, mining engineering and metal lurgy in 2010 to record levels, albeit still well short of what is needed by industry to alleviate the skills shortage in these disciplines - through the Minerals Tertiary Education Council program;

� Instrumental in shaping the strategy for government and industry partnership in addressing skilled labour shortages specifically impact assessment reporting, associate degrees in mining engineering, barr iers to entry for women, early entry and advanced apprenticeships and improved education and career information in schools;

� Pioneered development of a National Apprenticeships Program with East Coast Apprenticeships (a Brisbane based Group Training Organisation) which will significantly grow the number of trade qualified people in the resources sector through a national advanced early entry apprentice training program;

The MCa waS InSTRuMenTal In POSITIvely POSITIOnIng The InduSTRy and

delIveRIng STROng OuTCOMeS aCROSS a Range Of eCOnOMIC, SOCIal and envIROnMenTal ISSueS, key aMOng TheM:


2010 signature aChieveMents

� Reform of the Environmental Protection and Biodiversity Conservation (EPBC) Act to address current impediments for short term administration incompetency and longer term systemic reform identifying the Commonwealth’s role in strategic land use planning identifying land use values and conditions of use in prioritised regions;

� Succeeded in positioning the minerals industry as a high-value, low-volume consumer of water in the ongoing COAG water reform process; and developed a minerals industry water accounting framework;

� Successfu l ly over turned planned changes to the International Maritime Dangerous Goods Code that would have significantly and unnecessarily added to the regulatory burden of shipping ore-concentrates from Australia;

� Ad v o c a t e d c h a n g e s t o N a t i o n a l Environmental Protection Measures (NEPM), Ambient Air Quality;

� Instigated an Australian Government Extractive Industr ies Transparency Initiative pilot project in Australia to provide a credible third party framework to validate the extent of the industry’s taxation and economic contribution to governments;

� Significant changes to the Government’s Draft Indigenous Economic Strategy in concert with the National Native Title Council emphasising the need for a stronger focus on economic development, rather than welfare and the minerals industry ’s pivotal role particularly in regional and remote areas;

� Significant progress in underscoring the imperative of regulatory reform in project approvals and Part III A of the Trade Practices Act in encouraging private investment in infrastructure.


safety and health

MCA MeMber CoMpAnies MAintAin thAt:

� all fatalities, injuries and diseases are preventable;

� no task is so important that it cannot be done safely;

� all hazards can be identified and their risks managed; and

� everyone has a personal responsibility for the safety and health of themselves and their work mates.

The goal of zero fatalities and injuries remains our number one value and commitment.

The nuMbeR One value O f T h e M I n e R a l S

S e C T O R I S T h e S a f e T y a n d h e alTh O f IT S wO R k fO R Ce . Having set itself an ambitious goal of zero harm, it is committed to becoming an industry free of fatalities, injuries and diseases.

In 2009-10, the minerals industry tragically experienced five fatalities. A further two fatalities occurred in the extractive/quarry sector giving a total of seven fatalities for mineral and extractive industries. This followed a terrible year in 2008-09 in which the industries experienced a major setback on the goal for zero fatalities, with 18 fatalities recorded (including one fatality in the extractive/quarry industry). A single fatality in the sector is totally unacceptable and deeply regretted.

T he indus t r y re co gnises that even greater effective effort is needed based on leadership, systems, people, culture and behaviour working in unison – backed by robust regulation.

0

5

10

15

20

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2006-07

2007-08

2008-09

2009-10

45

667

89

1213

12

7

18

4

1110

1212

7

15

19

10

Fatalities LTIFR

Source: MCA Safety Performance ReportsFatalities and Lost Time Injury Frequency Rates

MIneRal and exTRaCTIve InduSTRIeS ReCORded Seven faTalITIeS In

2009-10, well ShORT Of The InduSTRy’S gOal Of zeRO haRM.

COPYS Ebit PEl iPSum vEl EOSSint Om-

niEnt PEliSinuS, OmniEt fugita-tur, aut ut mOlESt vEruPtat aS


produCtion, exports and CoMModity priCes

auSTR a l I a’ S M I n e R -a l S I n d u S T R y

R e C O R d e d a S T R O n g P e R -fORManCe In 2010, ThOug h The yeaR ended wITh MajOR OuTPuT dISRuPTIOnS In The COal SeCTOR due TO SeveRe flOOdIng In QueenSland In PaRTICulaR. While recovery will take many months, and require determined action by companies and all levels of government, the medium to long-term outlook for the minerals industry remains positive based on historically strong commodity prices and the prospect of continued demand growth in key Asian markets.

Export volumes continued to expand for most major commodities through 2010 (Chart 2). Proposed mining developments and significant infrastructure expansions are expected to support further growth in Australian exports in coming years. As at the March quarter 2010, projections by ABARES for the period 2010 to 2015 were for Australian thermal coal export volumes to grow by 42 per cent, metallurgical coal export volumes by 32 per cent and iron ore export volumes by 39 per cent, respectively.

Though well positioned to take advantage of continued strong growth in emerging Asia, a range of international and domestic risk factors could yet undermine industry expansion. Internationally, an uneven global recovery, with some advanced economies facing a period of relatively anemic growth, remains a downside risk to commodity demand. At the same t im e, th e p otent ia l fo r b o om - bus t

cycles in large emerging markets and a large increase in capital f lows into commodity-related financial assets raise the prospect of significant volatility in commodity markets. Domestically, a sustained productivity slowdown and the reemergence of capacity constraints as the economy moves toward full capacity are major concerns for the mining industry.

50

60

70

80

90

100

110

120

Dec-07

Mar-08

June

-08

Sep-08

Dec-08

Mar-09

Jun-0

9

Sep-09

Dec-09

Mar-10

Jun-1

0

Sep-10

Export Volumes

Iron ore (LHS) Met. Coal (RHS) Thermal coal (RHS)



projects have been completed recently or are scheduled for completion in the next 12 months.

Production of iron ore is forecast to grow in 2011 as a result of recently completed projects in the Pilbara. There are further projects scheduled for completion in early 2011, though these are unlikely to contribute significantly to exports in the current financial year.

7

Mineral resource prices

Source: ABARES, Reuters, Bloomberg

Following grow th of 10 per cent in 2009–10, Australian gold mine production is forecast to rise further with growth expected to largely originate from Western Australia (up 15 per cent to 192 tonnes), the Northern Territory (up 77 per cent to 14 tonnes) and South Australia (up 41 per cent to 14 tonnes).

COPPeR MIne PRO-d u C T I O n

IS fOReCaST to increase as several mines placed on care and maintenance during 2008 are expected to restar t in early 2011. New mine production in South Australia is also expected to add to production volumes.

Having fallen by 12 per cent in 2009–10, Australia’s nickel mine production is forecast to increase in 2011. High nickel stocks at the end of 2009–10 are expected to support an increase in production of refined nickel.

In The 12 MOnThS TO The S e P T e M b e R Q u a R T e R

2010, sectors recording signif icant production growth over the previous year included mined gold (up 24 per cent), mined lead (up 15 per cent) and mined nickel (up 10 per cent). In contrast, significant production declines occurred for ref ined lead (down 38 per cent), uranium oxide (down 23 per cent) and refined nickel (down 17 per cent).

FinAnCiAl yeAr produCtion dAtA For key MinerAl CoMModities Are set out in tAble 1.

7



The December quarter 2010 Australian Commodities report by ABARES (released prior to the worst of the summer flooding) forecast an overall increase in mine

production of 10 per cent in 2010-11 with strong growth in production of thermal coal (up 17 per cent), gold (up 15 per cent) and mined nickel (up 12 per cent).

7



E xp e c te d grow th in t h e rma l c o a l production ref lects the completion of significant coal mine capacity in 2010 and 2011, while expanded NSW port capacity is expected to encourage a number of producers to increase capacity utilisation at existing mines. Forecast growth for 2010-11 is expected to be downgraded, however, due to production disruption in the Bowen Basin and on the Darling Downs. Forecasts for metallurgical coal will similarly be downgraded significantly due to weather-related supply disruptions in Queensland. In addition, few significant

PROduCTIOn MOST MajOR MIneRal COMMOdITIeS

ReCORded hIgheR PROduCTIOn ThROugh 2010.



Table 1:

Minerals production forecasts by commodity – volume

2007-08 2008-09 2009-10 % change

Thermal coal Mt 184.6 203.6 195.5 -4.0

Metallurgical coal Mt 139.4 129.8 163.1 25.7

Iron ore Mt 324.7 353.0 423.4 19.9

Gold t 229.7 217.9 239.7 10.0

Uranium t 10114 10 311 7 156 -30.6

Aluminium

Bauxite kt 63 463 64 055 67 485 5.4

Alumina kt 19 359 19 597 20 057 2.3

Aluminium kt 1 964 1 974 1 918 -2.8

Copper

Mine production kt 863 890 820 -7.9

Refined, primary kt 444 499 395 -20.8

Zinc

Mine production kt 1 571 1 411 1 362 -3.5

Refined kt 507 506 515 1.8

Nickel

Mine production kt 190 185 162 -12.4

Processed ore kt 222 213 200 -6.1

Lead

Mine production kt 641 596 604 1.3

Bullion kt 152 155 148 -4.5

Refined kt 203 213 189 -11.3

Manganese ore kt 5 412 3 730 5 802 55.5

Silver

Mine production t 1 867 1 775 1 749 -1.5

Refined t 606 751 698 -7.1

Tin

Mine production t 1 767 4 045 19 829 390.2

Source: ABARE



In response to historically high prices for iron ore, producers in Australia and Brazil are expected to maximise volumes exported over 2011 and the combination of higher volumes and a higher unit value is expected to underpin further growth in Australia’s export earnings.

7



ABARES also expects stronger returns from gold with export volumes to increase by 4 per cent to 349 tonnes and higher export values resulting from a higher Australian dollar denominated gold price. The value of copper exports is forecast to exceed $8.8 billion in 2010–11, underpinned by higher copper prices and export volumes.

Increased export volumes of zinc ores and concentrates, refined zinc and nickel are also expected to offset the impact of the higher average Australian dollar against the US dollar.

7



As at December 2010, ABARES’ index of minerals and energy returns was expected to rise by 23 per cent in 2010-11 with increases in both volumes and prices to more than offset the high Australian dollar. This would mark a strong rebound from the GFC-inspired fall in export returns.

Growing import demand from China and India is expected to support world thermal coal trade in 2011 driving export prices and volumes higher. ABARES forecasts world trade in metallurgical coal to increase 5 per cent in 2011, following 17 per cent growth in 2010. Higher contract prices are expected to support metallurgical coal exports in 2010–11 despite the impact on volumes from flooding in Queensland and northern New South Wales.

dOwn 14 P e R C e n T f R O M T h e

PRevIOuS yeaR due to the lingering effects of lower contract prices in the wake of the global financial crisis (GFC). Minerals exports still comprised 54 per cent of Australia’s total goods and services exports. Exports of coal and iron ore alone accounted for 33 per cent of total export earnings in 2009-10.

0

5000

10000

15000

20000

25000

30000

35000

40000

Met coal

Thermal c

oal

Iron ore

Gold

Alumina

AluminiumCopper

ZincNick

el

Value of major mineral commodity exports

$ m

2007-08 2008-09 2009-10

exPORTS In 2009-2010, auSTRalIa’S MIneRal ReSOuRCe exPORT

eaRnIngS TOTalled $138 bIllIOn,



Prices Most Mineral coMModity

Prices ended 2010 well above levels at the start of the year.

7



7



The Reserve Bank’s index of base metal prices rose 18 per cent over the year in SDR terms, while the broader commodity price index rose 48 per cent due largely to increases in iron ore, metallurgical coal and thermal coal prices. The dampening effect of a higher exchange rate saw the base metal index rise 4 per cent over the year in Australian dollar terms (Chart 6).

Both silver and copper finished the year at historic highs. Copper closed at a record price of more than $US9660 per tonne, an increase of 50 per cent over six months. Silver closed 2010 at 3063.00 US cents per ounce an increase of 80 per cent over the year. Prices for a range of commodities (in addition to the bulk steel-making commodities in Chart 5) are shown in Chart 7.

Chart 5: Bulk steel-making commodities

The Reserve BankÕ s index of base metal prices rose 18 per cent over the year in SDR terms, while the broader commodity price index rose 48 per cent due largely to increases in iron ore, metallurgical coal and thermal coal prices. The dampening effect of a higher exchange rate saw the base metal index rise 4 per cent over the year in Australian dollar terms (Chart 6).


Source: RBA

0.0

50.0

100.0

150.0

200.0

250.0

RBA Commodity Price Index -‐ Base Metals

A$

SDR

Index

SOuRCe: Rba

100

200

300

400

500

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11f

Unit export returns (1989-90=100)

Inde

x

Energy Minerals Metals and other minerals Total minerals SOuRCe: abaReS

The SPOT PRICe fOR IROn O R e e n d e d 2010 at

almost $170 US tonne, around 25 above the estimated December quarter contract price level. Coal prices also rose sharply on the back of strong demand and supply disruptions, especially in Australia (Chart 5).

ChaRT 5Chart 5: Bulk steel-making commodities

The Reserve BankÕ s index of base metal prices rose 18 per cent over the year in SDR terms, while the broader commodity price index rose 48 per cent due largely to increases in iron ore, metallurgical coal and thermal coal prices. The dampening effect of a higher exchange rate saw the base metal index rise 4 per cent over the year in Australian dollar terms (Chart 6).


Source: RBA

0.0

50.0

100.0

150.0

200.0

250.0

RBA Commodity Price Index -‐ Base Metals

A$

SDR

Index


investMent and exploration expenditure

1.8 per cent to 3.7 per cent since 2004-05. The positive investment outlook is further highlighted by the ABS CAPEX survey which reported the fourth estimate of mining investment plans for 2010-11 at $55 billion, 57 per cent higher than the figure for 2009-10.

ABARES reports that in the minerals sector specifically, advanced projects (those either committed or under construction) totalled $45.2 billion in the six months to October 2010, up from $40.6 billion reported in April and an increase of 32 per cent since October 2007. Iron ore projects worth $17.3 billion make up the largest share of advanced minerals projects. Advanced coal projects were worth $5.3 billion.

Less advanced or more uncertain minerals projects have a total potential capital expenditure of $131.2 billion. The October 2010 result sets a new record for potential investment which has been rising steadily since April 2009 and has almost doubled since October 2007 (Chart 8).

This continues the trend of historically high levels of investment in the mining sector. Between the March quarter of 2005 and the September quarter of 2010, mining industry capital expenditure rose 258 per cent and accounted for two-thirds of the increase in total new private capital expenditure. As a share of GDP, mining investment has more than doubled from

aT $10. 5 b I l l I O n I n T h e Se P Te M b e R Q uaR Te R

2010, new capital expenditure in mining (including oil and gas) increased 7 per cent on the June quarter and was 32 per cent higher than a year earlier (Chart 7). Mining investment accounted for 40 per cent of new capital expenditure across all survey industries in the quarter.

SOuRCe: abS (MInIng InCludeS PeTROleuM and gaS)

MInIng InveSTMenT haS COnTInued TO

gROw STROngly In auSTRalIa.

INVESTMENT AND EXPLORATION EXPENDITURE Mining investment has continued to grow strongly in Australia. At $10.5 billion in the September quarter 2010, new capital expenditure in mining (including oil and gas) increased 7 per cent on the June quarter and was 32 per cent higher than a year earlier (Chart 7). Mining investment accounted for 40 per cent of new capital expenditure across all survey industries in the quarter. Chart 7:

Source: ABS (mining includes petroleum and gas)

This continues the trend of historically high levels of investment in the mining sector. Between the March quarter of 2005 and the September quarter of 2010, mining industry capital expenditure rose 258 per cent and accounted for two-thirds of the increase in total new private capital expenditure. As a share of GDP, mining investment has more than doubled from 1.8 per cent to 3.7 per cent since 2004-05. The positive investment outlook is further highlighted by the ABS CAPEX survey which reported the fourth estimate of mining investment plans for 2010-11 at $55 billion, 57 per cent higher than the figure for 2009-10. ABARES reports that in the minerals sector specifically, advanced projects (those either committed or under construction) totalled $45.2 billion in the six months to October 2010, up from $40.6 billion reported in April and an increase of 32 per cent since October 2007. Iron ore projects worth $17.3 billion make up the largest share of advanced minerals projects. Advanced coal projects were worth $5.3 billion. Less advanced or more uncertain minerals projects have a total potential capital expenditure of $131.2 billion. The October 2010 result sets a new record for potential investment which has been rising steadily since April 2009 and has almost doubled since October 2007 (Chart 8).

In the six months to October 2010, ABARES reported the highest number of projects completed since 2007. Twenty-five major projects were completed: five energy projects, 10 mineral mining projects, nine infrastructure projects and one mineral processing plant. Their combined capital cost was $8.2 billion. The 38 projects (both advanced and less advanced) new to the list since April 2010 include 17 coal projects, five gold projects, four base metal projects, four iron ore projects and two uranium projects.

0

5

10

15

20

25

30

35

40

45

2 000

4 000

6 000

8 000

10 000

12 000

Dec 2007

Mar 2008

Jun 2008

Sep 2008

Dec 2008

Mar 2009

Jun 2009

Sep 2009

Dec 2009

Mar 2010

Jun 2010

Sep 2010

%$m New capital expenditure -‐mining

% Total surveyed industies (right axis)

ChaRT 7



7



In The SIx MOnThS TO OCTObeR 2010, abaReS RePORTed The hIgheST nuMbeR Of PROjeCTS COMPleTed SInCe

2007. Twenty-five major projects were completed: five energy projects, 10 mineral mining projects, nine infrastructure projects and one mineral processing plant. Their combined capital cost was $8.2 billion. The 38 projects (both advanced and less advanced) new to the list since April 2010 include 17 coal projects, five gold projects, four base metal projects, four iron ore projects and two uranium projects.

9

Source: ABARES Completed projects (Dec 1998 to Oct. 2010)

Source: ABARES Exploration Total mineral exploration expenditure was steady at $2.2 billion in 2009-10. The trend away from greenfield exploration towards brownfield exploration continued. In original terms, exploration on areas of new deposits fell 3.3 per cent in the September quarter 2010, while expenditure on areas of existing deposits rose 10.5 per cent. Total metres drilled rose 6.2 per cent with drilling in areas of existing deposits up 11.9 per cent while drilling in areas of new deposits fell 2.5 per cent. Table 2 shows exploration expenditure by mineral sought. Gold, copper and coal exploration all recorded higher expenditure in 2009-10 on the back of higher prices for these commodities. Expenditure on copper exploration increased by 13 per cent in 2009-10, while gold exploration increased by 31 per cent. Silver, lead and zinc, nickel and cobalt, iron ore and uranium were among sub-sectors registering falls in exploration expenditure.

0

20

40

60

80

100

120

140

Oct-‐07

Dec-‐07

Feb-‐08

Apr-‐08

Jun-‐08

Aug-‐08

Oct-‐08

Dec-‐08

Feb-‐09

Apr-‐09

Jun-‐09

Aug-‐09

Oct-‐09

Dec-‐09

Feb-‐10

Apr-‐10

Jun-‐10

Aug-‐10

Oct-‐10

$b

Mineral sector major development projects

Less Advanced Projects CommiWed projects

9

Source: ABARES Completed projects (Dec 1998 to Oct. 2010)

Source: ABARES Exploration Total mineral exploration expenditure was steady at $2.2 billion in 2009-10. The trend away from greenfield exploration towards brownfield exploration continued. In original terms, exploration on areas of new deposits fell 3.3 per cent in the September quarter 2010, while expenditure on areas of existing deposits rose 10.5 per cent. Total metres drilled rose 6.2 per cent with drilling in areas of existing deposits up 11.9 per cent while drilling in areas of new deposits fell 2.5 per cent. Table 2 shows exploration expenditure by mineral sought. Gold, copper and coal exploration all recorded higher expenditure in 2009-10 on the back of higher prices for these commodities. Expenditure on copper exploration increased by 13 per cent in 2009-10, while gold exploration increased by 31 per cent. Silver, lead and zinc, nickel and cobalt, iron ore and uranium were among sub-sectors registering falls in exploration expenditure.

0

20

40

60

80

100

120

140

Oct-‐07

Dec-‐07

Feb-‐08

Apr-‐08

Jun-‐08

Aug-‐08

Oct-‐08

Dec-‐08

Feb-‐09

Apr-‐09

Jun-‐09

Aug-‐09

Oct-‐09

Dec-‐09

Feb-‐10

Apr-‐10

Jun-‐10

Aug-‐10

Oct-‐10

$b

Mineral sector major development projects

Less Advanced Projects CommiWed projects



Longer term trends in the share of exploration expenditure by mineral sought are shown in Chart 10. Base metals, gold and iron ore each accounted for approximately a quarter of exploration expenditure in Australia in 2009-10 with gold experiencing renewed interest in response to world price shifts. Expenditure on coal has been more consistent over the past decade. It received nearly 13 per cent of expenditure in 2009-10. Uranium accounted for almost 9 per cent.

The TR e n d away fRO M gReenfIeld exPlORa-

TIOn TOwaRdS bROwnfIeld exPlOR aTIOn COnTInued. In original terms, exploration on areas of new deposits fell 3.3 per cent in the September quarter 2010, while expenditure on areas of existing deposits rose 10.5 per cent. Total metres drilled rose 6.2 per cent with drilling in areas of existing deposits up 11.9 per cent while drilling in areas of new deposits fell 2.5 per cent.

Table 2 shows exploration expenditure by mineral sought. Gold, copper and coal exploration all recorded higher expenditure in 2009-10 on the back of higher prices for these commodities. Expenditure on copper exploration increased by 13 per cent in 2009-10, while gold exploration increased by 31 per cent. Silver, lead and zinc, nickel and cobalt , iron ore and uranium were among sub-sectors registering falls in exploration expenditure.

Mineral exploration expenditure – by mineral sought

2008-09 ($m) 2009-10 ($m) % change

Copper 178.7 201.7 12.9

Silver, lead, zinc 80.5 51.6 -35.9

Nickel, cobalt 259.9 203.9 -21.5

Gold 438.0 575.4 31.4

Iron ore 588.7 524.1 -11.0

Mineral sands 30.6 na na

Uranium 185.2 169.1 -8.7

Coal 297.3 321.2 8.0

Diamonds 10.0 na na

Other 154.1 147.1 -4.5

exPlORaTIOn TOTal MIneRal

exPlORaTIOn exPendITuRe waS STeady aT $2.2 bIllIOn In 2009-10

Mineral exploration expenditure Ð by mineral sought 2008-09 ($m) 2009-10 ($m) % change Copper 178.7 201.7 12.9 Silver, lead, zinc 80.5 51.6 -35.9 Nickel, cobalt 259.9 203.9 -21.5 Gold 438.0 575.4 31.4 Iron ore 588.7 524.1 -11.0 Mineral sands 30.6 na na Uranium 185.2 169.1 -8.7 Coal 297.3 321.2 8.0 Diamonds 10.0 na na Other 154.1 147.1 -4.5 Longer term trends in the share of exploration expenditure by mineral sought are shown in Chart 10. Base metals, gold and iron ore each accounted for approximately a quarter of exploration expenditure in Australia in 2009-10 with gold experiencing renewed interest in response to world price shifts. Expenditure on coal has been more consistent over the past decade. It received nearly 13 per cent of expenditure in 2009-10. Uranium accounted for almost 9 per cent.

Source: ABS (excludes petroleum exploration) EMPLOYMENT, WORKPLACE ARRANGEMENTS AND SKILLS The minerals industry is a major source of new high-wage employment opportunities in Australia, especially in regional and remote areas. Wages, workplace training and skills development expenditure are all higher than the national average and the industry continues to be a leader in developing collaborative, direct relationships between employers and employees in the workplace. Employment in the mining sector is at record levels. Labour force figures report employment in the minerals sector at 187,200 in November 2010, an increase of 21 per cent from November 2009. Total employment in Australia grew by 3.7 per cent over the same period. Mining employment has almost trebled in the last decade and further strong growth is forecast. The GovernmentÕ s National Resources Sector Employment Taskforce predicts employment in the sector to increase by an average annual rate of 4.9 per cent per annum to 2015.

0%

20%

40%

60%

80%

100%

Sep-‐2003

Mar-‐2004

Sep-‐2004

Mar-‐2005

Sep-‐2005

Mar-‐2006

Sep-‐2006

Mar-‐2007

Sep-‐2007

Mar-‐2008

Sep-‐2008

Mar-‐2009

Sep-‐2009

Mar-‐2010

Sep-‐2010

Explora&on by mineral sought

Other

Coal

Uranium

Iron ore

Gold

Selected base metals


eMployMent, WorkplaCe arrangeMents and skills

The minerals indusTry is a major source of new

high-wage employmenT opporTu-niTies in ausTralia,especially in regional and remoTe areas.

wageS, wORkPlaCe T R a I n I n g

a n d S k I l l S d e v e l O P M e n T exPendITuRe are all higher than the national average and the industry continues to be a leader in developing collaborative, direct relationships between employers and employees in the workplace.

Employment in the mining sector is at record levels. Labour force figures report employment in the minerals sector at 187,200 in November 2010, an increase of 21 per cent from November 2009. Total employment in Australia grew by 3.7 per cent over the same period. Mining employment has almost trebled in the last decade and further strong growth is forecast. The Government’s National Resources Sector Employment Taskforce predicts employment in the sector to increase by an average annual rate of 4.9 per cent per annum to 2015.

11

Source: ABS Employment growth occurred across the minerals sector in the year to November 2010. Employment in metal ore mining increased 35 per cent to 66,300 people; coal mining employment increased 7 per cent to 44,000 people; and exploration and mining services grew 17 per cent to 36,500 people. Employee earnings in the industry are around 63 per cent higher than the Australian all-industry average. In August 2010, average weekly earnings of full-time adult workers in mining were $2,132.70 compared with $1,309.70 for all industries. Almost the entire workforce is full-time Ð 97 per cent compared with 70 per cent for all industries. In 2009, nearly two thirds of workers in the mining industry (63.1 per cent) had completed a non-school qualification, compared with 60.2 per cent for all industries. The most prevalent non-school qualification is a Certificate III or IV (33.5 per cent), reflecting the importance of trades occupations. Around 21 per cent of employees have attained the level of a bachelor degree or above. The final report of the GovernmentÕ s National Resources Sector Employment Taskforce forecast that there will be 45,000 new construction jobs on resource projects in both 2012 and 2013 and a further 61,500 new mining sector jobs expected by 2015. The report forecast shortfalls of 1,700 mining engineers and 3,000 geoscientists over next five years. In addition, it concluded that there may be a shortfall of 36,000 tradespeople by 2015. The MCA was a key member of the Industry Reference Group for the Taskforce and remains committed to working with the Government to address issues of skills shortages and its acute impact as a capacity constraint in the face of expected long-term high demand for AustraliaÕ s mineral resources.

90

100

110

120

130

140

150

Nov-‐06

Feb-‐07

May-‐07

Aug-‐07

Nov-‐07

Feb-‐08

May-‐08

Aug-‐08

Nov-‐08

Feb-‐09

May-‐09

Aug-‐09

Nov-‐09

Feb-‐10

May-‐10

Aug-‐10

Nov-‐10

Inde

x

Mining employment (original, Nov 2006=100)

Mining Total

Employment growth occurred across the minerals sector in the year to November 2010. Employment in metal ore mining increased 35 per cent to 66,300 people; coal mining employment increased 7 per cent to 44,000 people; and exploration and mining services grew 17 per cent to 36,500 people.

Employee earnings in the indus tr y are around 63 per cent higher than the Australian all-industry average. In August 2010, average weekly earnings of full-time adult workers in mining were $2,132.70 compared with $1,309.70 for all industries. Almost the entire workforce is full-time – 97 per cent compared with 70 per cent for all industries.

In 2009, nearly two thirds of workers in the mining industry (63.1 per cent) had completed a non-school qualification, compared with 60.2 per cent for all industries. The most prevalent non-school qualification is a Certificate III or IV (33.5 per cent), reflecting the importance of trades occupations. Around 21 per cent of employees have attained the level of a bachelor degree or above.

The final report of the Government ’s National Resources Sector Employment Task force forecast that there will be 45,000 new construction jobs on resource projects in both 2012 and 2013 and a further 61,500 new mining sector jobs expected by 2015. The report forecast shortfalls of 1,700 mining engineers and 3,000 geoscientists over next five years. In addition, it concluded that there may be a shortfall of 36,000 tradespeople by 2015.

The M C a w a S a k e y M e M b e R O f T h e

InduSTRy RefeRenCe gROuP for the Taskforce and remains committed to working with the Government to address issues of skills shortages and its acute impact as a capacity constraint in the face of expected long-term high demand for Australia’s mineral resources.


eMployMent, WorkplaCe arrangeMents and skills

Top 20 employing occupations (‘000) – 2009

SOuRCe: abS

Top 20 employing occupations (Ô 000) Ð 2009

Source: ABS ENVIRONMENTAL PERFORMANCE The minerals industry has continued to transition from managing present environmental impact through rehabilitation and reclamation to long-term environmental stewardship with the aim of securing sustainable eco-systems beyond life of mine. The industryÕ s environmental performance has improved with an increased focus on resource use efficiency, including in relation to energy, water and chemicals. The industry has also focused on practical measures to improve land use planning and management, particularly in areas where operations intersect with agriculture and other industrial sectors. Areas of environmental focus by MCA member companies in the past year have included:

� a new water accounting framework to assess the nature of site water use, both in terms of quantity and quality, with the aim of improving water use efficiency; and

� a Memorandum of Understanding with the National Farmers Federation (NFF) regarding the development of an alternative land use planning framework to better support the coexistence of mining and agriculture and investments in the rehabilitation of mined land and in offsetting impacts through biodiversity regeneration.

Accounting for around 3.6 per cent of AustraliaÕ s net water consumption1, the minerals sector is committed to ensuring this scarce resource is used sustainably and efficiently. The sectorÕ s value added per mega litre (ML) of water is amongst the highest of all industries, generating $227,000 per ML (compared with $4,000 per ML for agriculture) 2. Recognising the scarcity of this valuable resource and that access to a reliable water supply is an essential input to mining operations, the MCA has worked throughout 2010 to ensure that the National Water Initiative is responsive to the needs of the sector in creating a fully functioning water market. Due to recent severe flooding across eastern Australia, the industry faces significant water management challenges in 2011. A large number of mining operations have been severely impacted through the flooding of open cut pits and the destruction of infrastructure. Pit dewatering activities will take time and require the cooperation of government regulators.

1 Australian Bureau of Statistics, National Water Account, 2008-09


environMental perforManCe

The minerals indusTry has conTinued To

TransiTion from managing presenT environmenTal imTal imT -pacTs Through rehabiliTaTaT TaTa ion

and R e C l a M a T I O n T O l O n g - T e R M

envIROnMenTal STewaRdShIP with the aim of securing sustainable eco-systems beyond life of mine. The industry’s environmental performance has improved with an increased focus on resource use efficiency, including in relation to energy, water and chemicals. The industry has also focused on practical measures to improve land use planning and management, particularly in areas where operations intersect with agriculture and other industrial sectors.

AreAs oF environMentAl FoCus by MCA MeMber CoMpAnies in the pAst yeAr hAve inCluded:

� a new water accounting framework to assess the nature of site water use, both in terms of quantity and quality, with the aim of improving water use efficiency; and

� a Memorandum of Understanding with the National Farmers Federation (NFF) regarding the development of an alternative land use planning framework to better support the coexistence of mining and agriculture and investments in the rehabilitation of mined land and in offsetting impacts through biodiversity regeneration.

Accounting for around 3.6 per cent of Australia’s net water consumption1, the minerals sector is committed to ensuring this scarce resource is used sustainably and efficiently. The sector’s value added per mega litre (ML) of water is amongst the highest of all industries, generating $227,000 per ML (compared with $4,000 per ML for agriculture) 2.

Recognising the scarcity of this valuable resource and that access to a reliable water supply is an essential input to mining operations, the MCA has worked throughout 2010 to ensure that the National Water Initiative is responsive to the needs of the sector in creating a fully functioning water market.

Due to recent severe f looding across eastern Australia, the industr y faces significant water management challenges in 2011. A large number of mining op-erations have been severely impacted through the f looding of open cut pits and the destruction of infrastructure. Pit dewatering activities will take time and require the cooperation of government regulators.

1 Australian Bureau of Statistics, National Water Account, 2008-09

In recent years, the minerals sector has moved progressively from a compliance mentality in emissions management to engaging in continuous improvement and operating in a manner at tuned to communit y e xp ec tat ions of r isk management. The sector has been an important contributor to Australia’s steady improvement in greenhouse gas emissions intensity over the last two decades. The minerals industry is committed to global climate change solutions, particularly breakthrough abatement technologies across all energy sources, most notably clean coal technology. To this end, more than $1.2 billion has been invested by the sector to reduce its carbon footprint in recent years.


Corporate soCial responsibility

speCiFiC exAMples oF the industry’s CoMMitMent to Csr in the lAst 12 Months inClude:

� investment of more than $260 million in community-development projects;

� programs to increase the participation of Indigenous Australians in the minerals industry through employment and business development, with industry already the largest private sector employer of Indigenous Australians;

� leadership in the development of the Indigenous Community Development Corporation, a new tax exempt entity to ensure that the benefits of mining agreements accrue for future generations and that distributions are focussed on community development through investment in social infrastructure, service delivery and enterprise development; and

� an ongoing commitment to building the social competencies of the industry’s workforce through the MCA’s partnership with the University of Queensland and the Australian National University on postgraduate programs for Community Relations professionals in the minerals industry.

OveR TIMe, The InduS-TRy haS ShIfTed

ITS fOCuS fROM dealIng wITh IMMedIaTe IMPaCTS On lOCal COMMunITIeS towards the building of sustainable regional communities through long-term partnerships. A new paradigm of community engagement has taken hold – from a tradition of deciding, announcing and defending to an approach based on engaging, listening and learning.

The industry recognises that corporate social responsibility is not an adjunct to its business, it is its business – the industry’s core function is to convert natural endowment to societal capital, and that can only be achieved sustainably when there are real mutually beneficial considerations of the safety and health of its workforce, the environment, host

communities, and the rights and interests of Indigenous peoples. In this context, the industry has a duty to ensure the benefits of natural resource development accrue to communities and the nation across generations, beyond the life of mine.

Mining operations are supported because of the contribution they make to society. The industry knows that this support is neither automatic nor unconditional. There is the need to gain and maintain the support of regional communities for a valid social license to operate and that this “licence” is just as important as its regulatory licence granting access to natural resources. Implicit in a social licence is that companies recognise there are strong societal and business benefits from adhering to high standards of CSR.

The MIneRalS InduSTRy haS a STROng, PRaCTICal COMMITMenT TO CORPORaTe

SOCIal ReSPOnSIbIlITy (CSR).


industry issues

FISCAL IMPERATIVES

MINERALS RESOURCE TAXATION

CLIMATEChANgE ANd ENERgy

FisCAl iMperAtives � Commonwealth spending priorities need reassessment – Australia still faces a major budget repair job in coming years. Securing a (small) budget surplus by a specific date is less important than ensuring decisions are taken which priori-tise investment over consumption, improve the quality of government expenditure and advance long-term fiscal sustainability.

� High terms of trade obscures struc-tural budget deterioration – The scale of fiscal easing in the Commonwealth Budget continues to be masked by the upswing in the terms of trade.

� Higher taxes not the answer – Relying on increased tax revenues to close Australia’s long-term fiscal gap is neither a viable nor efficient policy strategy.

issue:Commonwealth spending priorities ne e d an overhaul g iven budget constraints and an economy returning to full capacity.

MinerAls resourCe tAxAtion � Agreed implementation – Imple-mentation of the proposed MRRT needs to be consistent with the July 2010 Heads of Agreement between the Government and key minerals industry companies. This must in-clude full crediting of all State and Territory royalties, as recommended by the Government-appointed Policy Transition Group (PTG).

� Policy Transition Group reports – The PTG recommendations provide a good basis for legislative implemen-tation of the MRRT, though further clarification and consultation with industry is needed. The proposed Implementation Group has a crucial role to play in developing legislation on transitional, core design and administrative measures.

� No further tax grab – The Australian Government should vigorously op-pose any attempts to impose even higher tax burdens on the minerals industry, including in the context of the forthcoming Tax Summit. Future tax reform proposals must demonstrably improve national capacity and economic efficiency

and not simply be vehicles for higher revenue or sectoral redistribution.

issue: Implementation of the proposed Minerals Resource Rent Tax will have a critical bearing on investor confidence and on the future competitiveness of Australia’s minerals industry.

CliMAte ChAnGe And enerGy � Genuine global agreement –The Government should pursue a global agreement that includes emissions reduction commitments from all major emitting nations, resist efforts to develop a two-speed global pact, and support the inclusion of carbon capture and storage projects in future offset arrangements.

� Carbon pricing – In developing a new carbon pricing scheme, the Govern-ment should not simply tinker with a flawed CPRS. Adequate protection for the competitiveness of exporters must be a central element of any new carbon pricing arrangement.

� Policy rationalisation – The Govern-ment should also reconsider the Renewable Energy Target, rationalise the proliferation of Federal and State


industry issues

SkIllS ShORTageS

PROjeCT aPPROvalS

publicly funded Vocational Educa-tion and Training sector continues to fail the industry in the delivery of quality training programs.

� I ndigenous employment - The minerals sector is a key contributor to sustainable local and regional employment pools through op-portunities for the large numbers of young Indigenous Australians in remote communities. Critical pre-employment issues must be addressed for these opportunities to be realised.

issue: Acco rd in g to th e G over nm ent ’s National Resources Sector Employment Task force, the minera ls indus t r y faces critical shor tages of mining engineers, geoscientists and traditional tradespeople that cannot be met by relying on existing education and training programs and structures.

proJeCt ApprovAls � Duplication and delay has big cost - Federal/State duplication and inefficiencies in project approvals processes impose major costs on industry. Direct costs arising under the Environment Protection and Biodiversity Conservation (EPBC) Act alone have been estimated at up to $820 million over the last decade, with little demonstrable improvement in environmental outcomes. Costs from the failure to appropriately align approval processes across different levels of government are consider-ably higher.

� Commonwealth’s role should be strategic – The MCA supports an overhaul of the EPBC Act as part of streamlining and simplifying national project approval processes. The Com-

� substantial investment in a broad range of low emissions technologies and adaptation measures.

skills shortAGes � Skills demand increasing - The miner-als sector will require an additional 77,500 people by 2015 including professionals and managers, trades-people and operators, according to National Resources Sector Employ-ment Taskforce.

� MCA supports Taskforce recommen-dations - the MCA urges immediate implementation of key Taskforce recommendations, including those relating to workforce planning, ap-prentices, higher education, skilled migration, entry-level training and industry-education linkages. It has prepared a number of initiatives for immediate implementation.

� Higher education and VET sector concerns – Minerals-related higher education courses (mining engi-neering, metallurgy, earth sciences) have been chronically underfunded, requiring the industry to directly subsidise these courses by more than $25 million over the last decade. The

climate related policies and promote an open debate on all low emission power generation technologies, including nuclear energy.

� Investment in low emissions tech-nologies – Continued public sector investment in low emissions tech-nologies, including carbon capture and storage, will be necessary to bring these technologies to com-mercial reality.

issue:A comprehensive measured transition to a low emissions global economy requires the alignment of three key policy pillars including:

� a global agreement for greenhouse gas emission abatement that includes emissions reduction commitments from all major emitting nations;

� market-based pol ic y measures that promote the abatement of greenhouse gas emissions at the lowest cost without compromising the competitiveness of Australia’s internationally traded sector; and,


industry issues

INFRASTRUCTURE CAPACITY CONSTRAINTS

NATIONAL APPROACH TO OCCUPATIONAL

HEALTH AND SAFETY

� The MCA rejects the NSW Govern-ment position – The decision by the NSW Government to retain two provisions – the onus of proof resting with the defendant (i.e. a presumption of guilt) and the ability for unions to initiate prosecutions rather than this being the exclusive domain of the regulatory authority – is contrary to the policy and legal framework that underpins the Model Work Health and Safety Act.

� Industry approach - The MCA seeks adoption of the model regime by all jurisdictions without amendment by December 2011 to deliver a nationally uniform health and safety regulatory regime for all workers and businesses. The MCA rejects any suggestion that the minerals sector is different from other sectors and therefore requires separate sector-specific legislation. Industry specific issues should be covered in regulations, codes and guidelines.

issue:The key dr ivers for occupational health and safety regulatory reform include greater certainty, efficiency and clarity, together with improved safety outcomes. However, uniform

infrastructure and public investment in chronically under-funded social infrastructure deserve priority.

� Regional Infrastructure Fund not a sufficient policy response – The scale of infrastructure requirements is such that the new Regional Infra-structure Fund (financed from MRRT revenues) can only be a partial source of investment.

issue:Despite progress in some areas, the infrastructure capacity problems which hobbled the supply response of the minerals industry in the mid to late 2000s remain a threat.

nAtionAl ApproACh to oCCupAtionAl heAlth And sAFety

� Significant progress but obstacles remain – The MCA has welcomed the development of the Model Work Health and Safety Act and will provide a submission on the Model Regula-tions and Priority Codes of Practice to Safe Work Australia in April 2011 highlighting further opportunities to align the regulatory arrangements with a risk-based approach.

monwealth should have a strategic role based on full implementation of bilateral agreements for assess-ment and approvals processes, endorsement of regional planning instruments that meet EPBC require-ments and strategic investment and planning support through, for example, monitoring and auditing compliance.

issue:Variability in the content, administration and enforcement of project approvals a n d e n v i r o n m e n t a l p r o t e c t i o n processes carries large costs and is a major constraint on investment and the expansion and effective operation of the minerals sector.

inFrAstruCture CApACity ConstrAints

� Infrastructure deficits sti l l cr it i-cal – The MCA’s Vision 2020 Study (released in 2009) highlighted major deficiencies in economic and social infrastructure in 21 mining regions. Progress on addressing these deficits and gaps remains uneven.

� Key priorities – Given fiscal con-straints, regulatory reform to boost private investment in economic


industry issues

The high degree of workforce mobility in the minerals industry means that workers moving between jurisdictions will still be required to understand a n d a p p l y a r a n g e o f d i f f e r e n t safety and health regimes. Further, contrac tors that work across the minerals, construction, engineering and transport sectors will be required to have multiple systems in place to meet the different regulatory requirements. The MCA considers that this presents an increased risk to workers who will be exposed to different protections, duties and expectations. Employers, too, will be exposed to duplication of systems, distracting focus and effort away from day-to-day safety and health management.

The MCA considers that safety and health laws must be administered by agencies with an absolute focus on safety and health in the workplace. Accordingly, the MCA advocates that a national mine safety and health regulator be established by statute to regulate the Australian minerals industry. Currently, the same three States that seek additional safety and health laws only for the minerals industry intend to administer these laws through their mines departments. Indications are that this will continue. This leads to a potential conflict of interest where one arm of the depart-ment promotes facilitation and another regulates safety and health. This may also create the perception that safety and health is not the primary focus.

WorkplACe relAtions � Fair Work Act flaws - The Federal Government’s Fair Work Act contains substantial flaws, including an expan-sion of the scope of union right of entry and broader than necessary Good Faith Bargaining rules.

WHS Regime not enforced through the Inter-Governmental Agreement;

� implementation of the model regime is open to inconsistency – national approaches to implementation must be enforced;

� while adopting the Model Work Health and Safety Act, Regulations and Codes of practice, the Govern-ments of WA, QLD and NSW intend to also adopt additional mine safety legislation and regulation; NSW and QLD also intend to retain separate regulations for metalliferous and coal operations;

� consistent administration of the Act and regulations by the compe-tent work safety authority in each jurisdiction, rather than a specific mines inspectorate, has not been agreed; and

� inconsistent legal interpretation through the various court systems across Australia will lead to diver-gent views of compliance under the Model regime.

regulation and administration of safety in the Australian minerals industry is by no means complete. A number of challenges remain in achieving a truly uniform regime for all workers, businesses and regulators across the nation.

The proposed workplace health and safety regime represents substantial progress however a single national safety and health regime administered by the States and Territories is still considered the preferred way to regulate safety and health. A single Act with all jurisdictions implementing uniformly remains the goal. The regime to be adopted by all jurisdictions will be enacted in State and Territory laws, and be mirrored across the country without amendment. Provided that this approach is entirely consistent with the InterGovernmental Agreement this will deliver uniformity.

reForM hAs CoMe A lonG WAy, but More is required in the next deCAde. key iMpediMents to uniForMity inClude the FolloWinG:

� current proposals represent an incomplete adoption of the Model

RefORM haS COMe a lOng way

wORkPlaCe RelaTIOnS


industry issues

� Key concerns about proposed legisla-tion – The approach in the proposed legislation marked a major shift in innovation policy and its adminis-tration and, if passed, will limit tax credits for R&D in the production environment, impede further in-novation in the mining sector and significantly increase administrative costs and uncertainty.

issue:The MCA supports the stated purpose of the legislation which is to replace the existing R&D Tax Concession with a Tax Credit. However, the legislation fundamental ly redef ines R&D by excluding tax credits for much of the development work which, by its nature, is conducted in a production environ-ment. This particularly discriminates against the mining sector which does not operate spare, disused or trial mines to conduct laboratory type research.

The redefinition of R&D also increases the administrative complexity of the scheme by requiring the taxpayer to distinguish between core and sup-porting expenditure and to determine whether that supporting expenditure is for the “dominant purpose” of R&D. Additional uncertainty will be created

that promotes direct relationships between employers and employees underpinned by an effective safety net. For the minerals industry to grow and take advantage of new opportunities, it requires a policy framework that promotes a culture of shared objectives and allows recognition of contribution and performance.

Choice and flexibility are essential to cater for operational diversity across the minerals industr y. Enterprises often have vastly different operational requirements and there is significant employee diversity across occupations, skills, gender and culture. The MCA therefore supports a national system of workplace relations that rests primarily on direct dealings between employers and employees at the enterprise or workplace level.

reseArCh And developMent � Reconsider R&D changes – The Government should reconsider the Tax Laws Amendment (Research and Development) Bill 2010 and related bills. The MCA seeks deferral of the legislation to further examine R&D in the production environment and to consider other measures to address concerns about the scheme’s costs.

� Building sector changes - Proposed changes to oversight of the build-ing and construction industry will reduce the penalties for unlawful activity, reduce the powers of the independent watchdog and tie the replacement body in a myriad of red tape.

� Foreign flagged vessels - Proposed changes to the permit system that governs foreign-flagged vessels operating in Australian waters and the broadening of coverage of the Maritime Industry Seagoing Award must not have detrimental effects on the Australian minerals and ship-ping industries. The imposition of new award rates for foreign workers on vessels in Australian waters has already increased costs substantially. Any further restriction of access to foreign-flagged vessels for domestic transport, including through the hasty removal of the present system of Single Voyage Permits or Continu-ing Voyage Permits, would severely restrict the supply of transport and disrupt this essential service.

issue:The MCA is commit ted to a nati -onal work place re lat ions s ys tem


industry issues

implementation; that priority be given to the development of a na-tional water trading market based on sound policy principles; and risk assignment provisions to focus on water security for high value users including mining.

� Industry-wide water accounting framework - The minerals industry is a strong supporter of water reform and has developed a landmark industry-wide water accounting framework that aligns with existing and emerg-ing regulatory requirements while maintaining environmental integrity and driving water use efficiency.

issue:Progress on the national water reform f ramework – the Nat ional Water Initiative – remains incremental and of ten dif f icult . Reform has been hampered by a wide range of factors, including chronic blame-shif t ing between Commonwealth and State Governments.

In the MCA’s view, four critical issues must be addressed in the next phase of water reform.

First, there is a need for the minerals industry to be recognised in the water planning process. Many regional water plans are being developed without consultation with the minerals industry. In its October 2009 biennial assessment of NWI implementation, the National Water Commission (NWC) highlighted a lack of consideration of industrial water users’ requirements. The NWC noted bluntly that “it’s time to bring the mining industry into water planning processes”.2

2 National Water Commission, Australian water reform 2009: Overview of key findings and recommendation, October 2009.

tralia’s free trade credentials. The Government’s decision to require the Department of Foreign Affairs and Trade to identify savings to match revenue foregone as a result of lower tariff barriers as part of Australia’s approach to free trade agreements is also a departure from past reformist policies.

issue:Ef for ts to promote free and open trade and investment are essential to future productivity growth and to the global competitiveness of Australian industries.

WAter ACCess And use � Minerals sector a high value user – The minerals sector accounts for less than 3 per cent of national con-sumptive water use but generates a very high economic value-add from that use.

� Prior ity concerns - Four cr it ical issues exist for the next phase of water reform: the engagement of industries outside of agriculture in the development of water sharing plans; the need for proper resourc-ing of the NWI to enable its full

by the enhanced discretion given to federal administrators to review or overrule a taxpayer’s self assessment.

trAde And investMent � Early conclusion to Doha Round and FTAs - Maintain efforts towards an early, substantive conclusion of the Doha Round and press ahead with concluding commercially mean-ingful regional and bilateral trade agreements.

� Current FDI policy settings sound - Policy settings should encour-age private investment, including foreign direct investment. Existing policy frameworks for the scrutiny of investment by foreign governments should be maintained.

� Potential obstacles to trade flows - The Government should ensure domestic regulatory impediments do not subvert the free flow of goods, services and factors of production in a way that threatens the competi-tiveness of the Australian minerals industry. Proposed changes to the Enhanced Project By-Law Scheme (EPBS), for example, simply increase business costs and damage Aus-

TRade and InveSTMenT

waTeR aCCeSS and uSe


industry issues

LAND USE CHALLENGES

minerals industry entitlements in these circumstances.

lAnd use ChAllenGes � Land use challenges - Conflicts be-tween the minerals and agricultural sectors continue to emerge around access to “prime agricultural land” with tension most acute on the Liv-erpool Plains in NSW and the Darling Downs in Queensland. Whilst water is heralded as the issue of concern, the key issues of substance are really land access and stakeholder and community engagement.

� Commitment to land/resource stewardship - Challenges facing the mining industry include the lack of long-term strategic land use planning in regional and remote Australia and inconsistencies and duplications in regulatory require-ments. These issues pose significant risks to industry expansion and the sustainable economic and social development of regional areas.

� Strategic approach to land use planning required - MCA is work-ing with the agricultural sector and other stakeholders to build better integrated planning processes that

34 in the NWI in addressing the full range of impediments to integrate the minerals industry in water planning and entitlement regimes.

Third, the development of a national water trading market based on sound pricing principles should be a national priority. As the NWC has correctly noted, the efficient pricing or charging for water-related services underpins investment and provides signals for the efficient use of water services. Getting the price signals right by ensuring that they fully ref lect the ef ficient costs of providing the services is a key element in encouraging innovation and efficient water use. In addition, the Federal Government should initiate a review by the Australian Consumer and Competition Commission into existing barriers to water market entry for minerals operations, emerging barriers to entry and trade, and policy options to remedy them.

Fourth, risk assignment provisions agreed in the NWI should prioritise attention on high-value water users’ security. Exposure to these risks is greater for high-value users in little understood systems. Therefore greater attention should be paid to securing

In practice, this means that the breadth and depth of water sharing plans and associated market arrangements should be expanded beyond the current narrow focus on agricultural interests to include those areas where minerals operations require water. Industrial water users should be provided with the same opportunity for input to the water sharing planning processes as environmental and agricultural water users . Regulatory measures being developed by the Commonwealth through the application of the Water Act should be equitably applied to all water users so that they do not represent an unfair barrier for minerals industry access to water markets. It is also critical that all water management decisions be based on sound science and that stakeholder engagement be transparent and include agreed timeframes for review.

Second, adequate resources must be provided to fully implement the NWI, including the specific provisions for the minera ls indus t r y where these are not adequately addressed by the generic water policies and practices. Of primary importance to the minerals industry is the need for full consideration of the role of Clause


industry issues

the purpose of which is to develop a national framework of principles for integrated land use planning and management between agriculture and mining. Outcomes from this process will form the basis for recommendations to governments for improved regulatory approval processes. This represents an important first step in developing a truly multi-stakeholder approach to strategic land use planning and access.

MinerAls explorAtion � Tackling barriers to exploration – New measures recommended by the Policy Transition Group are worthwhile, but insufficient to arrest Australia’s declining share of global minerals exploration.

� Export Tax Credit Scheme – Given continued structural anomalies in the tax system which disadvantage junior explorers, the Government should explore further the case for an Exploration Tax Credit (ETC) scheme to ensure a future pipeline of resource projects in Australia.

issue:Australia needs an expanded mineral exploration effort to remain one of the world’s most important minerals producers.

relinquishment requirements across jurisdictions.

The industry is seeking to develop a holistic approach to land use planning to ensure consistency and provide certainty for all regional stakeholders. As part of a strategic planning approach, there is a need for greater alignment and simplif ication of the existing multi-layered jurisdictional regulatory requirements to avoid duplication and to ensure consistent land use, social, and environmental values are met.

The MCA strongly advocates long-term strategic land use planning that incor-porates all potential land use values for a given area. This is of particular impor tance as land use activit ies continue to increase in complexity and scale. Without a clear and consistent strategic direction, efficient and value based sustainable development is at risk, leading to reactive and possibly inconsistent regionally subjective management.

I n t h e a b s e n c e o f G o v e r n m e n t leadership, the MCA has signed a Memorandum of Understanding with the National Farmers Federation (NFF),

incorporate social, economic and environmental concerns and the concept of multiple and sequential land use.

issue:There is a lack of long-term strategic land use planning in regional and remote Australia. This poses risks to the growth and sustainable development of both industry and regional areas.

key risks to the MininG industry inClude:

� limits to mineral resource access without consideration of environmen-tal, social and economic potential;

� the industry having to undertake traditional government roles such as planning and conservation; and

� the development of offsets where “va lue for money ” may not be achieved.

Another major risk is the application of inconsistent, duplicative and overly prescriptive regulation. In particular, there is significant inconsistency in the application, development and use of financial offsets, surety and lease

key RISkS TO The MInIng InduSTRy

MIneRalS exPlORaTIOn


industry issues

STRENGTHENING INDIGENOUS COMMUNITIES

a paucity of economic opportunity. In order for this disadvantage to be remedied, it is critical that governments, in partnership with Indigenous com-munities and private enterprise, address the systemic lack of investment in social and physical infrastructure and the absence of effective and comprehensive local governance arrangements in remote and regional Australia, with the objective of achieving sustainable solutions for Indigenous communities.

The MCA considers that ineffectual policy development and systemic im-plementation inadequacies by Federal and State governments have resulted in ongoing failures in the ability of Indigenous people to fully realise socio-economic opportunities. Collaborative action between governments at all levels, the private sector and Indigenous communities is critical to ensuring that Indigenous Australians are able to share in the same opportunities as non-Indigenous Australians while also maintaining a strong culture and linkages to country.

A clear opportunity exists to leverage the increased economic ac t iv i t y associated with mineral wealth to enhance the social and economic

� Resourcing of representative bodies - The Government should improve the resourcing of key Indigenous representative structures including Native Title Representative Bodies and Prescribed Bodies Corporate.

� Native Title reforms - Further im-provements in the efficiency and operability of the Native Title system should be made without diminishing the rights and interests and special connections to lands and waters of Indigenous Australians.

issue:In order to close the gap between Indigenous and non - Indigenous Australians, there is a critical need for a high level, functional policy platform founded in mutual respect and recogni-tion of Indigenous Australians’ rights, interests, and special connection to land and waters. The focus should be on economic development, frameworks for effective local governance and the provision of core social and physical infrastructure.

Indigenous Australians continue to suffer significant disadvantage. This disadvantage is the product of abject poverty, poor social conditions and

strenGtheninG indiGenous CoMMunities

� Investment in infrastructure and critical services - The capacity of the minerals industry to contribute to stronger economic development in Indigenous communities is hampered by inadequate social and physical infrastructure. Substantial new invest-ment is required to improve educa-tion, health and housing services.

� Support for Indigenous economic development – Support is critical for the growing Indigenous business sec-tor in the minerals industry through building capacity in Indigenous SMEs. The MCA strongly supports con-tinuation of work addressing supply chain impediments for Indigenous businesses, within both government and business supply chains.

� Incentivising economic activity - A clear opportunity exists to leverage the increased economic activity as-sociated with Native Title agreements to enhance the social and economic capacity whereby Indigenous people can become long-term contributors to, and drivers of, regional and com-munity development.


industry issues

education and skills levels of local and Indigenous communities are also inhibiting progress.

It is clear that functioning societies create robust economic opportunities. However the absence of any national vision or plan for remote and regional Australia and the paucity of govern-ance structures and service delivery mechanisms are impeding the ability of both Indigenous and non-Indigenous Australians in these communities to fully participate in Australian society. Further, the absence of effective governance arrangements, service delivery and community infrastructure continues to limit the industry’s ability to ensure communities share fully in the benefits of resource development.

Effective governance and resourcing, and more strategic alliances between governments, the minerals industry and other key stakeholders, are required to enable remote and regional com-munities to develop the capacities and resources necessary to secure their own future prosperity and wellbeing, and to optimise the contribution of mining to regional economic and social development.

MCA’s Vision 2020 Study released in 2009 pointed to chronic funding shortages in social and community infrastructure (health, education and housing) in regional and remote areas. To make up this gap, the minerals sector has been forced to become a de facto provider of basic public services.

� Better coordination and capacity required - There is a need for gov-ernments at all levels to coordinate their efforts to ensure the effective capacity and resourcing of govern-ance arrangements and service delivery mechanisms for a diverse and resilient remote and regional Australia.

issue:The challenges facing the minerals industry as a key (sometimes dominant) source of economic activity in remote and regional Australia are formidable. In many cases, minerals companies are required to undertake activities outside their areas of competence or provide services that should normally be provided by government or other institutions. The lack of social and p hy s i c a l in f r as t r u c t ure an d l ow

capacity whereby Indigenous people can become long-term contributors to, and drivers of, regional and community development. Specifically, the MCA considers that, provided a framework of policies and social and physical infrastructure is in place to support Indigenous economic development, payments made under Native Title agreements provide a platform for the long-term investment of such monies to ensure sustainable, intergenerational benefits to Indigenous communities.

strenGtheninG reGionAl CoMMunities

� Regional development framework – The absence of a coordinated national plan for the social, cultural and economic future of regional and remote Australia is an impedi-ment to the development of robust and sustainable communities. The absence of effective governance arrangements, service delivery and community infrastructure continues to limit the industry’s ability to en-sure communities share fully in the benefits of resource development.

� Minerals sector considered proxy for government service delivery - The

STRengThenIng RegIOnal COMMunITIeS


division reports – viCtoria division

duRIng 2 0 10 T h e vICTORIan

PaRlIaMenT had a veRy aCTIve legISlaTIve agenda, SOMe Of whICh dIReCTly InvOlved The MIneRalS InduSTRy.

Of primary interest to the MCA and its members were the amendments to the Mineral Resources (Sustainable Develop-ment) Act. These “Stage 1” amendments to the tenement administration and licencing aspects of the Act involved the MCA in considerable debate to ameliorate the negative impacts on the industry.

The Brumby Government also introduced and passed into law the Tradit ional Owners Settlement Act which provides an alternative, non litigious approach to native t i t le. MCA was consulted extensively during the development of the new approach and subsequently supported the new Act. Work on the development of the accompanying land use activity agreements, based around the MCA’s regional ILUA approach, has commenced.

Unfor tunately, business was not ef-fectively consulted during the drafting of the Climate Change Bill and consequently it was not supported by MCA and others when presented to parliament. However, the Bill was passed into law and the 20% target reduction in greenhouse gases by 2020 remains on the Victorian statutes.

Prior to the Victorian State election, the MCA prepared a comprehensive policy agenda which was put to the ALP and Coalition. Both adopted many aspects of the policy. This agenda included policy to address constraints and provide op-portunities related to Royalties, regulatory reform, exploration, energy security and groundwater resources.

The November 2010 Victorian election saw a change in Government. The new Liberal-National Coalition Government completed the year with a clear agenda to implement its election commitments.

In addi t ion to V ic tor ian le gis lat ive challenges, the Victorian Division was closely involved in the analysis, policy development and forthright advocacy against the Australian Government ’s proposed resource super prof its tax and ensuring effective and appropriate implementation of the later mineral resources rent tax. The Division continues to work with brown coal members and the Government on the MRRT.

During 2010 the Victorian Government’s Technical Review Board assessment of the geotechnical s tabil i t y of the Latrobe Valley mines continued. As the assessments of the Board progressed the prescriptive intervention of the regulator increased. Consequently, MCA became increasingly involved in seeking changes to the regulatory processes applied by the Department of Primary Industries.

Chris FraserExecutive Director - Victoria


division reports – viCtoria division

Continuing with the Victorian minerals industry commitment to capacity building of health and safety representatives, the Victorian Division hosted two safety and health workshops covering fatigue, drugs and alcohol policy and cultural safety. The workshops enabled increased sharing of ideas between companies and between workers. The increased involvement of these representatives over the past few years has strengthened the industry’s commitment to continual improvement in safety and health outcomes towards our goal of zero harm.

The Victorian Division again hosted two very successful Mine Rescue Competi-tions– an underground competition in its 18th year and a surface competition

in its 5th year. The Victorian mine rescue competitions continue to attract entrants from across the country, making the competitions truly national events testing the industry’s skills in emergency response capability.

The annual Environment and Communities Seminar was held in the Latrobe Valley in 2010. The seminar had three streams – environmental management, working with our communities and the regulatory environment and included sessions on the Victorian alternative framework to native title, and discussions on water, land use, biodiversity and the review of State mineral laws.

The Victorian Divisions commitment to minerals industry careers promotion and schools education continued with interactive training sessions delivered to primary and secondary students and an escorted tour of the Latrobe Valley for science and careers teachers.

The Division continued to provide the secretariat services for the very successful Melbourne Mining Club.


division reports – northern territory division

TheRe aRe InTeReST-I n g T I M e S

a h e a d f O R T h e M I n e R a l S InduSTRy In 2011, and specifically in the Northern Territory. The seamless transition from NT Resources Council through an affiliation with the MCA national body will deliver significant economies of scale for the MCA-NT Division. I join industry and government in thanking Scott Perkins and Judy Orban for their contributions to the Territory and the industry.

Clearly the NT Division will continue to be involved in national issues contributing and supporting the national body and priorit ies such as Minerals Resource Rent Tax, Carbon Tax, and Land Access amongst others. While there are significant challenges, the NT Division will focus our efforts representing our members on local issues and priorities.

The principal focus areas for the NT will be: Land Access and Environment; Infrastructure; and Indigenous Training and Development. We will be seeking active participation and increased feedback on issues to ensure our members remained engaged and informed on local and national developments.

The Indigenous Training and Development program conducted at Batchelor during 2010 under the guidance of Chris Natt has been very successful. With support from a number of Federal and NT Government agencies, specifically the Department of Education and Training, the Department of Business and Employment and the Commonwealth Department of Education, Employment and Workplace Relations, the program achieved a completion rate of 80% of Indigenous graduates in December. Successes and key learnings from the 2010 pilot program will result in follow-up programs in 2011 to meet industry needs for job ready trainees. At a time where industry is calling for resources, the ongoing success of the program appears to be assured.

The Darwin Mining Club was launched in 2010 and has been a positive step in providing a common forum for the industry to meet in informal surroundings to discuss industry issues. And 2011 sees an active role for explorers through the NT

Explorer’s Council which provides up and coming members with a forum and voice and acts as a conduit with government and other industry stakeholders. This occurs at a time where the industry is seeing significant exploration in the Territory.

At a time when stakeholder expectations are evolving, the ongoing commitment by the industry in the NT is to continue to engage with our key stakeholders to align our business strategies and objectives with community expectations.

Peter StewartExecutive Director - Northern Territory


board of direCtors as at 31 deCeMber 2010

Mr Hubie van Dalsen

Senior Vice Chairman President - Metallurgical CoalBHP Billiton Limited

Mr Andrew Michelmore

Chief Executive Officer and Managing DirectorMinerals and Metals Group

Mr Peter Johnston

Chairman Chief Executive Officer and Managing DirectorMinara Resources Ltd

Mr John Borshoff

Managing Director and Chief Executive Officer Paladin Energy Limited

Mr David Overall

Chief Executive OfficerDowner EDI Mining Pty Ltd

Mr Seamus French

Chief Executive OfficerAnglo American Metallurgical Coal Pty Ltd


board of direCtors as at 31 deCeMber 2010

Mr Ian Smith (Immediate Past Chairman)

Managing Director and Chief Executive OfficerNewcrest Mining Limited

Mr Peter Freyberg

Chief ExecutiveXstrata Coal Pty Ltd

Mr Tim Netscher

Senior Vice PresidentNewmont Asia Pacific

Mr David Saxelby

Managing DirectorThiess Pty Limited

Mr David Peever

Vice Chairman Managing DirectorAustralia Rio Tinto Limited

Mr Gary Halverson

Regional PresidentBarrick Gold of Australia Limited

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Exec

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MCa CoMMittee list

healTh, SafeTy, envIROnMenT and COMMunITy POlICy

occupational health and safety standing CommitteeChair: Gary Halverson, Regional President, Barrick (Australia Pacific) Ltd, Member of MCA Board of Directors Providing leadership and strategies in support of the industry’s goal of achieving an Australian minerals industry free of fatalities, injuries and diseases.

sustainable development standing CommitteeChair: Andrew Michelmore, Chief Executive Officer, Minerals and Metals Group, Member of MCA Board of Directors Provides leadership and strategic advice on the development and implementation of policies and practices to maximise the social, environmental and financial dividends of mineral resource development.

indigenous relations Working GroupChair: Ken Ramsey, Manager ESR Operations, Newmont Asia Pacific The development and implementation of policies and strategies relating to the effective operation of the native title system and cultural heritage and sharing leading practice in contributing to the development of mutually beneficial relationships with Indigenous communities and organisations.

regional and Community development Working GroupChair: Melinda Buckland, Manager – Social Responsibility, BHP Billiton Building industry’s capacity to facilitate sustainable regional communities and deliver its commitment to corporate social responsibility in collaboration with government and other stakeholders.

Water Working Group Chair: Kristina Ringwood, Principal Adviser – Environment, Rio Tinto Limited Addressing issues associated with ground and surface water policy development and the effective implementation of the National Water Initiative to secure water access and build industry capacity for water use efficiency.

land Management Working Group Chair: Sarah Bell, Environmental Manager – Minerals and Metals Group Developing public policy related to multiple and sequential land use and maximising industry and community benefits from effective land management.

ClIMaTe Change

Climate Change standing CommitteeChair: Seamus French, Chief Executive Officer, Anglo American Metallurigical Coal Pty Ltd, Member of MCA Board of Directors Development of policies and strategies for a global framework for emissions reductions, the development and deployment of low emissions technologies and the introduction of economically efficient, environmentally effective market-based mechanisms, specifically emissions trading, for pricing carbon.

RegIOnal dIvISIOnS

victorian state CouncilChair: Rod Hanson, Managing Director & CEO, Unity Mining Limited Development of policy and advocating strategy for State, and input into National, programs.

safety Working Group OHS regulation and capacity building matters.

exploration Working Group Exploration regulations and land access issues.

legislation & indigenous Affairs Working Group Mining and other related State legislation reform.

environment & Communities Working Group Environment and Community engagement regulations and capacity building.

northern territory Management CommitteeChair: Bryan Quinn, Asset Manager Manganese Australia, BHP Billiton

darwin Mining Club – Committee

environment Committee

land Access & indigenous relations Committee

infrastructure & economic development Committee

training & employment Committee

occupational health & safety Committee

Materials stewardship Working Group Chair: Peter Glazebrook, Principal Adviser – Product Stewardship, Rio Tinto Limited Focuses on the management of minerals and mineral products throughout the supply chain with the aim of protecting community and environmental health and ensuring the efficient use of natural resources.

Cyanide Management Working Group Chair: Mike Le Roy, Health, Safety & Environment Manager, AngloGold Ashanti Australia Ltd Addressing issues associated with the manufacturing, transport and use of Cyanide and the national application of the International Cyanide Management Code.

eCOnOMICS POlICy

taxation standing CommitteeChair: Brian Purdy, Vice President Tax - Asia Pacific, BHP Billiton Limited Develops and advocates reforms to taxation policy and administration that directly and indirectly impact the minerals industry.

Gst Working GroupChair: Brett Mawby, Head of Tax – Australia, Peabody Energy Australia Monitors and coordinates representation on GST issues.

r & d tax Concessions Working GroupChair: Chen Leong, Senior Taxation Specialist, BHP Billiton Monitors and coordinates representation on R&D tax concession issues.

henry tax review Working GroupChair: Brian Purdy, Vice President Tax - Asia Pacific, BHP Billiton Limited Coordinates industry positions on reforms arising from the Henry Tax Review, including the Minerals Resource Rent Tax.

wORkfORCe

Workforce CommitteeChair: Hubie van Dalsen, President Metallurgical Coal, BHP Billiton, Member of MCA Board of Directors The development of policies and strategies to address professional and trade skills human resource capacity constraints, advocating reforms in education and training and skilled migration with focus on capacity building in vocational education and training, higher education and careers promotion.


MCa MeMber CoMpanies As At 31 December 2010

full MeMbeRS

Areva NC AustraliaAGD Operations Pty LtdAlliance Resources LtdAnglo American Metallurgical Coal P/LAngloGold AshantiAstron LimitedAusurv Pty Ltd Barrick Gold of Australia LtdBasin Minerals LtdBHP Billiton LimitedCastlemaine Goldfields LimitedDart Mining NLDowner EDI Mining Pty LtdFalcon Oil & Gas Australia Pty Ltd GBM Resources LimitedHeathgate Resources Pty Ltd Heron Resources LimitedHNC (Australia) Resources Pty Limited Ignite Energy Resources Pty LimitedInternational Power HazelwoodJabiru Metals LtdLeighton Contractors Pty LimitedLoy Yang Power Management LtdMacmahon Contractors Pty LtdMinara Resources LimitedMinerals & Metals Group LimitedMulga Downs Investments Pty LtdMurchison Metals LtdNewcrest Mining LimitedNewmont Australia LimitedNorthgate Australian Ventures Pty LtdOrion Gold NLOZ Minerals LimitedPaladin Energy LimitedPeabody Energy Australia Pty LtdProvidence Gold & Minerals Pty LtdQuasar Resources Pty Ltd Range River Gold LtdReedy Lagoon Corporation LtdRio Tinto Services LimitedSt Barbara LimitedStirling Resources Limited Thiess Contractors Pty LimitedToro Energy Limited TRUenergy Yallourn Pty LtdUnity Mining LimitedUranium Equities Ltd Vale AustraliaXstrata PLC

aSSOCIaTe MeMbeS

AECOM Australia Pty Ltd Allens Arthur RobinsonAMC Consultants Pty LtdApache Energy Limited Australian Mines and Metals AssociationBlake DawsonBP Australia Pty LtdChamber of Minerals & Energy of WACSIRODarwin Directions Relocation Services Deloitte Touche TohmatsuDelta ElectricsDyno Nobel Asia Pacific LimitedEcolab Pty Ltd Elletson Mining Consultants Pty LimitedErnst & Young Services TrustFreehillsFreeport-McMoRan Copper & Gold IncGHD Pty LtdGlobal Constructions & Resources Pty LtdHastings Deering (Aust) Hatch Associates Hitachi Construction Machinery Aust Indophil Resources NLJust Outcomes (Aust) Pty LtdKPMGMichels Warren Munday NSW Minerals CouncilOrica Australia Pty LimitedPanAust LimitedPartners in Performance International P/LPricewaterhouseCoopersQueensland Resources CouncilSinclair Knight MerzSkilled Group South Australian Chamber of Mines and EnergySparke Helmore LawyersSRA Information Technology Tasmanian Minerals CouncilTop End Seeds UME Australia Pty LtdUniversity of Western AustraliaURS Australia Pty Limited


subMissions list

health, safety, environment and Community

� Draft Australian Criteria for the Classification of Hazardous Chemicals Safe Work Australia

� National Water Initiative Policy Guidelines for Water Planning and Management Department of Environment, Water, Heritage and the Arts

� Feedback on the Pilot National Water Account Bureau of Meteorology

� Response to proposed amendment to enable the historical extinguishment of Native Title to be disregarded in certain circumstances Attorney-General’s Department

� MCA and National Native Title Council submission on the Indigenous Economic Development Strategy Department of Families, Housing, Community Services and Indigenous Affairs

� MCA and National Native Title Council submission on the Government Consultation on Indigenous economic development from mining agreements Attorney-General’s Department, Treasury

� Dangerous Goods Issues concerning the Transport of Mineral Ores and Metal Concentrates WorkSafe Victoria

� Australian Dangerous Goods Code 7 National Competent Authorities Panel

� Implementation of Australian Dangerous Goods Code 7 National Transport Commission

� National Water Initiative 2011 Biennial Assessment of Progress National Water Commission

� Review of the National Environment Protection (Ambion air quality) Measure: Air quality standards National Environment Protection Council Service Corporation

� Australian Coal Association and MCA submission on the Offshore Petroleum and Carbon Capture and Storage Regulations Department of Resources, Energy and Tourism

economics and tax

� Minerals Council of Australia 2010-11 Pre-Budget Submission The Treasury

� MCA-CTA submission to the Board of Taxation’s post-implementation consolidation regime review Board of Taxation

� Second Draft of R&D Tax Concession Department of Innovation, Industry, Science and Research

� Exposure Draft of R&D Tax Concession The Senate

� Infrastructure Australia on a National Ports Strategy Infrastructure Australia

� ATO Discussion Papers regarding apportionment and net fuel amounts Australian Taxation Office

� MCA-AMEC submission to ATO – Fuel Tax Determination (FTD) 2010/D1 and Draft Practice Statement Law Administration (PS LA) 3309 (draft Australian Taxation Office

� MCA-CTA submission to ATO – TR 2010 / D2 – Income Tax: application of the transfer pricing provisions to business restructuring by multinational enterprises Australian Taxation Office

� Minerals Resource Rent Tax: Implementation and Transition Issues – Submission to the Policy Transition Group Policy Transition Group

� Minerals Resource Rent Tax: Implementation and Transition Issues – Response to the Policy Transition Group Issues Paper Policy Transition Group

� Minerals Council of Australia Policy Brief for the Forty-Third Commonwealth Parliament The Forty-Third Commonwealth Parliament

� MCA-CTA comments on Board of Taxation Consolidations Position Paper Board of Taxation

� Minerals Resource Rent Tax: Deductibility & Allocation of Expenditure – Additional Information Requested by PTG Secretariat Policy Transition Group

� Exploration Policy – A Response to the Policy Transition Implementation Group Issues Paper Policy Transition Implementation Group

� Draft Goods and Services Tax Ruling 2000/20 in relation to its application to employee accommodation Australian Taxation Office

� Joint Industry (MCA/APPEA/AMEC) Technical Position Paper on ATO Draft Farm-Out Discussion Papers Australian Taxation Office

� ATO – Discussion Paper on Application of Subdivision 40-B to Mine Site Improvements Australian Taxation Office

skills, education and training

� Response to SkillsDMC Draft Action Plan on Sustainability SkillsDMC

� Indigenous Education Action Plan Draft Ministerial Council for Education, Early Childhood Development & Youth Affairs, Federal Government

� Review of the General Skilled Migration Points Test Discussion Paper Department of Immigration & Citizenship, Federal Government

� MCA/CMEWA/QRC submission to the NRSETaskforce - Resourcing the Future National Resources Sector Employment Taskforce, Federal Government

� Inquiry into Regional Skills Relocation House of Representatives House Standing Committee on Employment and Workplace Relations, Federal Government


subMissions list

� Simpler Visas: Creating a Simpler Framework for Temporary and Permanent Entry to Australia - Discussion Paper Department of Immigration & Citizenship, Federal Government

� Vocational Education and Training Workforce Issues Paper Productivity Commission

� MCA/QRC/SACOME submission on Industry Skills Councils Senate Education, Employment & Workplace Relations Committee, Federal Government

� MCA/QRC/SACOME/CMEWA submission on Creating a Future Direction for Australian Vocational Education and Training Discussion Paper Skills Australia

� Review of the Special Occupations List Skills Australia

� Critical Skills Investment Fund Draft Guidelines Department of Education, Employment and Workplace Relations, Federal Government

victorian division

� State Services Authority Report on Review of the Mining Warden Department of Primary Industries, Victorian Government

� Planning and Environment Amendment (General) Bill 2009 Department of Planning & Community Development, Victorian Government

� Draft Guidelines on Noise from Industry in Regional Victoria Environment Protection Authority (VIC)

� Environmental Effects Statement Process in Victoria Environment and Natural Resources Committee, Victorian Parliament

� Regulatory Impact Statement - Amendments to the MRSDA Regulations 2002 Earth Resources Division, Department of Primary Industries, Victorian Government

� Climate Change Bill 2010 Premier of Victoria

� Remnant Native Vegetation Investigation Discussion Paper Victorian Environmental Assessment Council

northern territory division

� EPA’s Final Advice – Improving Environmental Assessment in the Northern Territory Environmental Protection Agency


finanCial stateMents 31 deCeMber 2010

Contents

Report of the Directors 49

Independent Auditors’ Report to the Members 54

Directors’ Declaration 57

Statement of Comprehensive Income 58

Balance Sheet 59

Statement of Changes in Equity 60

Statement of Cash Flows 61

Notes to the Financial Statements 62

This financial report covers the financial statements of Minerals Council of Australia as an individual entity, and is presented in Australian currency.

The financial report was authorised for issue by the directors on 28 March 2011. The directors have the power to amend and reissue the financial report.

Minerals Council of Australia Level 3, Walter Turnbull Building 44 Sydney Avenue, Forrest. ACT. 2603. ACN 008 455 141 ABN 21 191 309 229


direCtors’ report

Your directors present their report on the financial statements of the Minerals Council of Australia (the Council) for the year ended 31 December 2010.

The following persons were directors of the Minerals Council of Australia during the whole of the financial year and up to the date of this report:

Mr J Borshoff Director since 12 March 2009 B.Sc Managing Director & Chief Executive Officer Paladin Energy Limited

Mr S French Director since 4 December 2007 B.Eng Chief Executive Officer Anglo Coal Australia Pty Ltd

Mr P C Freyberg Director since 14 October 2008 B.Sc (Mining Engineering) Chief Executive Xstrata Coal

Mr G Halverson Director since 12 March 2009 BSc (Metallurgical Engineering) Regional President MBA Barrick Gold of Australia Limited

Mr P B Johnston Chairman BA Director since 1 June 2006 Chief Executive Officer and Managing Director Minara Resources Limited

Mr A Michelmore Director since 6 March 2008 B.Eng Chief Executive Officer MA Minerals & Metals Group

Mr T C Netscher Director since 28 May 2009 B.Sc (Eng) (Chemical) Senior Vice President Asia Pacific B.Com Newmont Mining Corporation

Mr D Peever Director since 14 December 2009 M.Sc (Mineral Industry Economics) Managing Director B.Econ Rio Tinto Australia

Mr D Saxelby Director since 31 May 2007 B.Eng Managing Director Thiess Pty Limited

Mr I Smith Director since 15 September 2006 B.Eng Managing Director B.FA Newcrest Mining Limited

Mr H van Dalsen Director since 28 May 2009 B.Eng (Mech) President - Metallurgical Coal M.Sc (Fin) BHP Billiton Limited


direCtors’ report

The following persons were appointed as directors on the dates specified and continue in office at the date of this report:

Mr D J Overall Director since 5 October 2010 B.Eng (Hons) Chief Executive Officer MBA Downer EDI Mining Pty Ltd

The following persons held office as directors from the beginning of the financial year until their resignation on the date specified:

Mr D M O’Reilly 3 September 2010 BA (Hons 1st)


direCtors’ report

Meetings of Directors

There were 8 meetings of the Council’s directors held during the year ended 31 December 2010. The following table sets out the number of meetings each director was eligible to attend and the number of meetings attended. The table includes those directors who retired or resigned during the financial year

Director Meetings eligible to attend Meetings attendedJ Borshoff 8 7

S French 8 2

P Freyberg 8 5

G Halverson 8 5

P Johnston 8 8

A Michelmore 8 6

T Netscher 8 3

D O'Reilly 6 6

D Overall 2 1

D Peever 8 8

D Saxelby 8 3

I Smith 8 8

H van Dalsen 8 6


direCtors’ report

Objectives, strategy and activitiesThe Council is incorporated under the Corporations Act 2001 as a company limited by guarantee.

The Council’s objectives are assisting the further development of the mining and metallurgical industries in all their branches within the Commonwealth of Australia and its territories.

The Council’s strategy for achieving those objectives is to engage with the various stakeholders in the mining and metallurgical industries.

The principal activities of the Council during the year were making submissions and representations to those stakeholders on various issues affecting the industries as they arose, and representing the Council members’ interests generally. These activites assisted the Council in achieving its objectives by creating an awareness of the industry’s issues. The Council measures its performance by member feedback, legislative outcomes and stakeholder satisfaction.

ResultsThe Council derives its income primarily through members’ subscriptions which, over time, approximate expenditure of the Council. The net result for the year was a surplus of $751,663 (2009: deficit $638,050). This surplus comprises an operating surplus of $511,963 and an increase in Asset Revaluation Reserve of $239,700.

DividendsThe Council is not permitted to pay dividends, by its Memorandum of Association.

Significant changesThe Council undertook a major media campaign regarding the Federal Government’s proposed Resources “Super Profits” Tax. Additional voluntary contributions were made by members to fund the campaign.

No other significant changes in the state of affairs of the Council occurred during the financial year.

Likely developmentsThe Council will commence in 2011 a 3-5 year industry positioning communications campaign to fortify and improve public perceptions of the minerals industry, to be funded by additional member contributions, with each year’s funding conditional upon the success of the campaign over the previous 12 months.

No other major change to the ongoing program is contemplated.


direCtors’ report

Matters subsequent to the end of the financial yearNo matter or circumstance which has arisen since 31 December 2010 has significantly affected or may significantly affect: (a) the operations, in financial years subsequent to 31 December 2010, of the Council; (b) the results of those operations; or (c) the state of affairs, in financial years subsequent to 31 December 2010, of the Council.

Insurance of Officers During the financial year, the Council paid a premium of $2,168 (2009: $2,187) to insure certain officers of the Council

The officers of the Council covered by the insurance policy include all of the directors and the Chief Executive and all executive members of staff.

The liabilities insured include costs and expenses that may be incurred in defending any claim that may be brought against the officers for actual or alleged breach of professional duty in carrying out their duties for the Council.

Environmental RegulationThe Council has assessed whether there are any particular or significant environmental regulations which apply. It has been determined that the risk of non-compliance is low and the Council has not identified any compliance breaches during the year.

Members’ liabilityThe liability of members is limited to no more than $10.

Auditor’s Independence DeclarationA copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act is set out on Page 56

Signed in accordance with a resolution of directors determined on 28 March 2011

H van Dalsen Vice Chairman Brisbane, Qld.

P B Johnston Chairman Perth, WA.


independent auditors’ report to the MeMbers


independent auditors’ report to the MeMbers


auditors independenCe deClaration


direCtors’ deClaration

The directors declare that, in their opinion:

(a) the financial statements and notes set out on pages 58 to 73 are in accordance with the Corporations Act 2001, including: (i) complying with the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (ii) giving a true and fair view of the Council’s financial position as at 31 December 2010 and of its performance, as represented by the results of its operations and its cash flows, for the financial year ended on that date.

(b) there are reasonable grounds to believe that the Council will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors determined on 28 March 2011

P B Johnston Chairman Perth, WA.

H van Dalsen Vice Chairman Brisbane, Qld.


stateMent of CoMprehensive inCoMe FOr THe yeAr eNDeD 31 DeCeMBer 2010

note 2010 2009

$ $

revenue from continuing operations 2 34,907,431 10,650,978

Other income 3 - 424,660

Employee benefits expense 5,861,357 4,730,610

Project contributions 2,893,897 1,636,130

Depreciation 158,780 173,120

Advertising & promotions 15,784,447 37,962

Consultants costs 5,876,980 1,627,133

Travel and accommodation 983,928 660,550

Office rent 651,221 506,859

Functions, entertainment & promotions 467,744 347,126

Computer rental, support & repairs 362,247 362,853

Communications 141,930 127,896

Meeting & venue hire costs 124,490 196,994

Sponsorships 103,073 67,866

Recruitment 98,918 23,850

Conference and resources production costs 97,324 70,459

Equipment rental costs 92,748 108,087

Printing & stationery 84,109 40,624

Memberships and subscriptions 82,281 78,428

Internet & website costs 79,704 87,554

Net loss on sale of assets - 5,403

Sundry administrative expenses 450,290 419,184

Surplus for the year 4 511,963 (233,050)

Other comprehensive income

Changes in the fair value of available-for-sale financial asset 7 239,700 (405,000)

Other comprehensive income for the year 239,700 (405,000)

Total comprehensive income for the year 751,663 (638,050)

The above statement of comprehensive income should be read in conjunction with the accompanying notes.


balanCe sheet As At 31 December 2010

note 2010 2009

$ $

ASSeTS

CURRENT ASSETS

Cash and cash equivalents 5 1,830,337 1,483,223

Available-for-sale financial assets 7 1,739,700 1,500,000

Receivables 6 6,320,052 5,076,700

TOTAL CURRENT ASSETS 9,890,089 8,059,923

NON-CURRENT ASSETS

Receivables 8 - 1,000,000

Plant and equipment 9 853,302 966,750

TOTAL NON-CURRENT ASSETS 853,302 1,966,750

TOTAL ASSeTS 10,743,391 10,026,673

LIABILITIeS

CURRENT LIABILITIES

Payables 10 1,084,960 1,253,691

Program surpluses carried forward 11 315,629 225,184

Subscriptions and memberships in advance 12 3,750 12,275

Provisions - employee entitlements 717,526 682,979

TOTAL CURRENT LIABILITIES 2,121,865 2,174,129

NON-CURRENT LIABILITIES

Subscriptions and memberships in advance 12 - 3,750

Provisions - employee entitlements 56,569 35,500

TOTAL NON-CURRENT LIABILITIES 56,569 39,250

TOTAL LIABILITIeS 2,178,434 2,213,379

NeT ASSeTS 8,564,957 7,813,294

MeMBerS' eQUITy

Accumulated funds 13 8,325,257 7,813,294

Reserves 13 239,700 -

TOTAL MeMBerS' eQUITy 8,564,957 7,813,294

The above Balance Sheet should be read in conjunction with the accompanying notes.


stateMent of Changes in equity For the yeAr enDeD 31 December 2010

note Retained earnings

Reserves Total

$ $ $

Balance at 1 January 2009 8,046,344 405,000 8,451,344

Total comprehensive income for the year as reported in the 2009 financial statements (233,050) (405,000) (638,050)

Balance at 31 December 2009 7,813,294 - 7,813,294

Balance at 1 January 2010 7,813,294 - 7,813,294

Total comprehensive income for the year as reported in the 2010 financial statements 511,963 239,700 751,663

Balance at 31 December 2010 13 8,325,257 239,700 8,564,957

The above statement of changes in equity should be read in conjunction with the accompanying notes.


stateMent of Cash floWs For the yeAr enDeD 31 December 2010

note 2010 2009

$ $

Cash flows from operating activities

Receipts from members and customers, inclusive of GST 37,470,485 11,614,285

Payments to suppliers and employees, inclusive of GST (37,648,374) (11,973,303)

Interest received 811,481 475,514

Net cash flow from operating activities 633,592 116,496

Cash flows from investing activities

Proceeds from maturation of non-current receivable - 1,000,000

Payments for current receivables (term deposits) (241,145) (4,462,275)

Payment for non-current receivable - (1,000,000)

Payments for plant and equipment (45,333) (52,443)

Proceeds from sale of plant and equipment - 45

Net cash flow from investing activities (286,478) (4,514,673)

Net increase / (decrease) in cash held 347,114 (4,398,177)

Cash and cash equivalents at beginning of year 1,483,223 5,881,400

Cash and cash equivalents at end of year 5 1,830,337 1,483,223

The above statement of cash flows should be read in conjunction with the accompanying notes.


notes to the finanCial stateMents 31 December 2010

Note 1: Summary of Significant Accounting Policies

(a) Basis of preparation

The Council has prepared this general purpose financial report in accordance with Australian Accounting Standards - Reduced Disclosure Requirements, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001.

Compliance with Australian Accounting Standards - Reduced Disclosure Requirements

These financial statements also comply with Australian Accounting Standards - Reduced Disclosure Requirements as issued by the Australian Accounting Standards Board (AASB).

Early adoption of standards

The Council has elected to apply the following pronouncements to the annual reporting period commencing 1 January, 2010: - AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

The adoption of AASB 1053 and AASB 2010-2 allowed the Council to remove a number of disclosures. There was no other impact on the current or prior year financial statements.

Historical cost convention

These financial statements have been prepared under the historical cost convention, except for certain assets which, as noted, are at valuation. The accounting policies adopted are consistent with those of the previous year.

(b) Depreciation

Depreciation is calculated on a straight line basis so as to write off the net cost of each non-current asset during its expected useful life. Estimates of remaining useful lives are made on a regular basis for all assets, with annual reassessments for major items.

The following rates of depreciation have been employed:

Computer software 40% - 50% Office furniture 7.5% - 10% Leasehold improvement 7.5% Office equipment 5% - 33%

(c) Employee entitlements

(i) Wages and Salaries and Annual Leave

Liabilities for wages and salaries and annual leave, expected to be settled within twelve months of the balance date, are recognised and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees’ services up to that date.

(ii) Long Service Leave

Liabilities for long service leave are recognised, and are measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employees departures and periods of service. Expected future payments are discounted using interest rates on national government bonds with terms that match as closely as possible, the estimated future cash outflows.

(iii) Number of Employees

At balance date the Council employed 29 full time equivalent employees (2009: 31).



(d) Leased non-current assets

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased property and operating leases under which the lessor effectively retains all such risks and benefits.

Where non-current assets are acquired by means of finance leases, the present value of minimum lease payments is established as a non-current asset at the beginning of the lease term and amortised on a straight line basis over its expected economic life. A corresponding liability is also established and each lease payment is allocated between such liability and interest expense.

Operating lease payments are charged to profit or loss in the period in which they are incurred.

Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability.

(e) Income tax

The Council is exempt from income tax under Section 50-40 of the Income Tax Assessment Act.

(f ) Cash and cash equivalents

For purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change of value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.

(g) Impairment of assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

(h) Investments and other financial assets

classification

The Council classifies its investments in the following categories: loans and receivables, and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and re-evaluates this designation at the end of each reporting period.

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets. Loans and receivables are included in receivables in the statement of financial position (notes 6 and 8).

(ii) Available-for-sale financial assets

Available-for-sale financial assets, comprising property trust units, are non-derivatives that are either classified in this category, or not classified in any other category. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the end of reporting period (note 7). Investments are designated as available-for-sale if they do not have fixed term maturities and fixed or determinable payments and management intends to hold them for the medium to long term.

recognition and derecognition

Regular purchases and sales of financial assets are recognised on trade date - the date on which the Council commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets are derecognised when the rights to receive cash flows from them have expired or have been transferred and the Council has substantially transferred all of the risks and rewards of ownership.

When securities classified as available-for-sale are sold, the accumulated fair value and adjustments recognised in other comprehensive income are reclassified to profit or loss as gains and losses from investment securities.



subsequent measurement

Loans and receivables are carried at amortised cost using the effective interest method. Available-for-sale financial assets are subsequently carried at fair value.

Impairment

The Council assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss - is reclassified from equity and recognised in profit or loss as a reclassification adjustment. If any such evidence exists for loans and receivables, the cumulative loss - measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss - is recognised in profit or loss as a reclassification adjustment.

(i) Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses. The cost method of accounting is used for all acquisitions of assets. Cost is measured as the fair value of the assets given up at the date of acquisition, plus costs incidental to the acquisition. Where assets are acquired through a non-reciprocal transfer the balance is recognised as revenue in profit or loss.

(j) Receivables

All debtors are recognised at the amounts receivable on settlement. Trade receivables are due for settlement no more than 30 days from the date of recognition. Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off.

(k) Trade and other creditors

These amounts represent liabilities for goods and services received prior to the end of the financial year and which are unpaid. The amounts are unsecured and are paid in accordance with specified terms.

(l) Program surpluses carried forward

The Council receives funding for the Minerals Tertiary Education Council (MTEC). MTEC is aimed at raising the standard, industry relevance and student appeal of minerals education to a new level. As funds received for these programs are refundable if not expended on the programs, revenue will be matched against the relevant expenditure. Funds received during the year but not expended are recorded as program surpluses carried forward.

(m) Jointly controlled operation

The proportionate interest in the assets, liabilities, income and expenses of a jointly controlled operation have been incorporated in the financial statements under the appropriate headings. The Council is party to a jointly controlled operation called Melbourne Mining Club. The Council has a 50% participating interest in this venture, and is entitled to 50% of its output. Council’s interests in the assets employed in the jointly controlled operation are included in the Balance Sheet.

(n) Goods & Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.

(o) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed are net of returns and amounts collected on behalf of third parties.



The Council recognises revenue when the amount can be reliably measured and it is probable that future economic benefits will flow to the Council. Revenue is recognised for the major business activities as follows:

(i) Subscriptions and grants

Revenue from members’ annual subscriptions is recognised in the accounting period in which the subscription is receivable. Grants from governments are recognised at their fair value in the accounting period in which they are contractually payable, and there is a reasonable assurance that the Council will comply with all attached conditions. Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate.

(ii) Conferences and workshops

The Council holds a number of conferences, seminars and workshops during the year. Revenue from this source is recognised in the accounting period in which the conference is held.

(iii) Sponsorship income

The Council receives sponsorship income in support of various conferences and functions. Revenue from this source is recognised in the accounting period in which the conference or function is held.

(iv) Interest income

Interest income from cash and cash equivalents and other investments is recognised using the effective interest method.

(p) Segment reporting

The Council operates in one industry, assisting the further development of the mining and metallurgical sectors, and in one geographical segment being Australia.

Note 2: Revenue2010 2009

$ $

From continuing operations

Ordinary revenue

Subscriptions, sponsorships and contributions 33,432,246 9,567,231

Conferences and competitions 608,503 588,357

Sales of publications and education resources & services 29,964 31,400

Copyrights & royalties 2,384 4,011

34,073,097 10,190,999

Other revenue

Interest 823,725 449,223

Sundry income 10,609 10,756

834,334 459,979

Total revenue 34,907,431 10,650,978



Note 3: Other Income2010 2009

$ $

Net assets acquired through non-reciprocal transfer from

ex Northern Territory Resources Council - 424,660

- 424,660

The Council entered into a Deed of Transfer agreement with the Northern Territory Resources Council (NTRC) in 2009, following its determination to wind up and transfer its assets to a like body. Net assets of NTRC were transferred to the Council as at 1 October 2009.

Note 4: Operating surplus / (deficit)The operating surplus / (deficit) is arrived at after charging the following specific expenses:

2010 2009

$ $

Charges

Depreciation of office furniture and equipment 58,511 73,052

Depreciation of leasehold improvement 100,269 100,068

Net loss/(profit) on disposal of non-current assets - 5,403

Addition to provision for employee entitlements 99,679 136,272

Rental expense relating to operating leases 393,533 414,619

Note 5: Current assets - Cash and cash equivalents2010 2009

$ $

Cash 1,285,628 214,162

Short term deposits 544,709 1,269,061

1,830,337 1,483,223

Cash and cash equivalents bear floating interest rates. The weighted average interest rate at 31 December 2010 was 5.11% (2009: 4.22%).



Note 6: Current Assets – Receivables2010 2009

$ $

Term Deposits 5,703,419 4,462,275

Receivables 553,008 506,893

Prepayments 63,625 107,532

6,320,052 5,076,700

Term deposits bear fixed interest rates. The weighted average interest rate at 31 December 2010 was 5.82% (2009: 5.31%.)

Note 7: Current Assets – Available-for-sale Financial Assets2010 2009

$ $

Units in Becton Canberra Trust

Value at 1 January 1,500,000 1,905,000

Revaluation (Note 13) 239,700 (405,000)

Value at 31 December 1,739,700 1,500,000

1,500,000 units @ $1.00 each in Becton Canberra Trust were acquired on 2 September 2003. The distribution rate at 31 December 2010 was 8.50% (2009: 8.50%). The Trust owns the Walter Turnbull Building in Canberra, in which the Council leases its secretariat offices.

Revaluations at 31 December each year are based on Becton Canberra Trust’s audited valuation of the units as at 30 June each year, in line with their accounting period.

Note 8: Non-current assets - Receivables2010 2009

$ $

Term Deposit - 1,000,000

Floating rate note 1,000,000 1,000,000

Provision for impairment of floating rate note (1,000,000) (1,000,000)

- 1,000,000

Term deposits are classified as non-current receivables where their maturity dates are greater than 12 months from the reporting date. The term deposit interest rate at 31 December 2009 was 5.23%. As at 31 December 2010 a non-current receivable of the Council with a nominal value of $1,000,000 (2009 - $1,000,000) was impaired. The amount of the provision was $1,000,000 (2009 - $1,000,000). The impaired receivable is a floating rate Collaterised Debt Obligation. The Council is investigating as to whether any of the impaired receivable is recoverable.



Note 9: Non-Current Assets - Plant and Equipmentleasehold

improvementOffice furniture &

equipmentTotal

$ $ $

At 31 December 2009

- Cost 1,333,552 654,009 1,987,561

Accumulated depreciation 575,318 445,493 1,020,811

Net book amount 758,234 208,516 966,750

year ended 31 December 2010

Opening net book amount 758,234 208,516 966,750

Additions 15,590 29,742 45,332

Depreciation 100,269 58,511 158,780

Closing net book amount 673,555 179,747 853,302

At 31 December 2010

- Cost 1,349,142 639,264 1,988,406

Accumulated depreciation 675,587 459,517 1,135,104

Net book amount 673,555 179,747 853,302

Note 10: Payables2010 2009

$ $

Current:

Trade creditors 231,843 484,843

Accruals 406,408 334,510

Other liabilities 446,709 434,338

1,084,960 1,253,691

Note 11: Program surpluses carried forward2010 2009

$ $

Minerals Tertiary Education Council 315,629 225,184

315,629 225,184



Note 12: Subscriptions and memberships in advance

2010 2009

$ $

(a) Current:

Minerals Council of Australia 3,750 12,275

3,750 12,275

(b) Non-current:

Minerals Council of Australia - 3,750

- 3,750

Note 13: Reserves and accumulated funds2010 2009

$ $

(a) reserves:

Available-for-sale financial assets revaluation reserve 239,700 -

239,700 -

Movements:

Available-for-sale investments revaluation reserve:

Balance at 1 January - 405,000

Revaluation (note 7) 239,700 (405,000)

Balance at 31 December 239,700 -

(b) Accumulated Funds:

Accumulated funds at the beginning of the financial year 7,813,294 8,046,344

Net operating surplus / (deficit) for the year 511,963 (233,050)

Accumulated funds at the end of the financial year 8,325,257 7,813,294

(c) Nature and purpose of reserves:

(i) Available-for-sale investments revaluation reserve

Changes in the fair value of investments classified as available-for-sale investments are taken to the available-for-sale revaluation reserve, as described in note 1(h). Amounts are reclassified to profit and loss when the associated assets are sold, or impaired.



Note 14: Director and executive disclosures

(a) Directors

The following persons were directors during the financial year:

(i) Chairman - non-executive

Mr I Smith (to 4 August 2010)

Mr P Johnston (from 4 August 2010)

(ii) Non-executive directors

Mr J Borshoff

Mr S French

Mr P Freyberg

Mr G Halverson

Mr A Michelmore

Mr T Netscher

Mr D O’Reilly (to 3 September 2010)

Mr D Overall (from 5 October 2010)

Mr D Peever

Mr D Saxelby

Mr H van Dalsen



(b) Key management personnel

The following persons were the key management personnel with the greatest authority for the strategic direction and management of the Council during the financial year:

Name Position

Mr M H Hooke Chief Executive

Mr B M Pearson Director - Corporate Affairs, and Deputy to Chief Executive

Mr B E Mitchell Director - Public Affairs

Ms M L Stutsel Director - Health, Environmental & Social Policy

Mr S P Deady Director - Taxation & Industry Economics (to 5 March 2010)

Mr J H Kunkel Director - Taxation & Industry Economics (from 1 February 2010)

Mr K D Tuckwell Executive Director - Minerals Tertiary Education Council

Mr C J Fraser Executive Director - Victorian Division

Mr J S Perkins Executive Director - Northern Territory Division (to 30 July 2010)

Mr P D Stewart Executive Director - Northern Territory Division (from 8 November 2010)

Ms M M Salmon Director - Administration & Finance (from 22 March 2010)

Ms S Carter Office Manager (to 29 January 2010)

Mr I R Bowden Finance Manager

All of the above key management personnel, except those who commenced during 2010, were also specified key management personnel for the whole of the year ended 31 December 2009, except J S Perkins, who commenced in his position on 1 October 2009.

(c) Remuneration of directors and key management personnel

(i) Principles used to determine the nature and amount of remuneration

The objective of the Council’s key management personnel reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns reward with achievement of strategic objectives and the creation of value for members, and conforms with market best practice for delivery of reward. In consultation with external remuneration consultants, the Council has structured a remuneration framework that is market competitive and complementary to the reward strategy of the Council. The framework provides a mix of fixed and variable pay, and as personnel gain seniority within the Council, the balance of this mix shifts to a higher proportion of an “at risk” component.



Note 14: Director and executive disclosures (continued)(ii) Directors’ fees

The directors are not entitled to any remuneration and retirement benefits for their services.

(iii) Executive pay

The key management personnel pay and reward framework has 3 components:

� base pay and benefits � short-term performance incentives � other remuneration such as superannuation

(a) Base pay

Base pay is structured as a total employment cost package which may be delivered as a combination of cash and non-financial benefits at the personnel’s discretion. Key management personnel are offered a competitive base pay that comprises the fixed component of pay and rewards. External remuneration consultants provide analysis and advice to ensure that base pay is set to reflect the market for a comparable role. Base pay for key management personnel is reviewed annually to ensure that the pay is competitive with the market. Key management personnel pay is also reviewed on promotion. There are no guaranteed base pay increases included in any key management personnel’s contracts.

(b) Short-term performance incentives (STI)

Each key management personnel has a target STI opportunity depending on seniority and the accountabilities of the role. KPI’s linked to short-term incentive plans are based on personal objectives and outcomes, and are generic across the team. The remuneration committee and Chief Executive are responsible for assessing whether KPI’s have been met, and determining the amount of STI payable to individual personnel. The STI target component amounts are reviewed annually.

(c) Retirement Benefits

Accumulation benefits are provided to key management personnel by the various funds to which they belong.

(d) Details of remuneration

Details of the total remuneration paid to the listed senior key management personnel are as follows:

2010 2009

$ $

Key management personnel compensation 3,144,881 2,400,058

3,144,881 2,400,058



Note 15: Commitments(a) Operating lease commitments

Commitments in relation to operating leases for office rental and office equipment contracted at balance date but not recognised as liabilities:

2010 2009

$ $

Due within 1 year 853,089 948,597

Due later than 1 year but not later than 5 years 2,259,401 670,011

Due later than 1 year but not later than 5 years 1,037,994 -

4,150,484 1,618,608

The significant lease commitment is in relation to the Council’s lease of its principal office space at 44 Sydney Avenue, Forrest, ACT. The lease renewal commenced on 21 November 2010, for a period of seven (7) years, with an option for a further period of five (5) years. The lease provides for rental increases of 3.75% per annum on the anniversary date of commencement.

(b) Remuneration commitments

Commitments for the payment of salaries and other remuneration under long-term employment contracts in existence at the reporting date but not recognised as liabilities:

2010 2009

$ $

Due later than 1 year but not later than 5 years 102,500 92,800

102,500 92,800

Amounts disclosed as remuneration commitments include commitments arising from the service contracts of key management personnel referred to in note 14, that are not recognised as liabilities and are not included in the key management personnel compensation. Payment of the amounts disclosed is dependent upon the relevant key management personnel meeting stipulated service periods.

No person should rely on the contents of this publication without first obtaining advice from a qualified professional person.

The Minerals Council of Australia, and the authors, editors and any consultants accept no liability (including liability in

negligence) and take no responsibility for any loss or damage which a user of this publication or any third party may suffer or

incur as a result of reliance on this publication, and in particular for:

(a) any errors or omissions in this publication;

(b) any inaccuracy in the information and data on which this publication is based or which is contained in this publication;

(c) any interpretations or opinions stated in, or which may be inferred from this publication.

Minerals Council of Australia

Walter Turnbull Building 44 Sydney Avenue FORREST Canberra ACT 2603

T: (+61) 2 6233 0600 F: (+61) 2 6233 0699 www.minerals.org.au

ACN 008 455 141 ABN 21 191 309 229 ISBN 978 1 920891 190

2010 annual reportmInerAls councIl oF AustrAlIA

Documents

2010 r eport AnnuAl - Minerals Council of Australia · Total $117.5b $230.7b Agriculture $31.5b $32.1b Minerals $34.4b $83.6b Energy $19.7b $77.9b Manufacturing $28.0b $33.0b other