EP Mineral & Energy Resources Community Development Taskforce

Transcription

1 EP Mineral & Energy Resources Community Development Taskforce Venue: Commencement Time Port Lincoln Hotel 10.05am Present: Rob Kerin Chair Geoff Dodd Coordinator Eleanor Scholz Chair, Wudinna District Council Diana Laube Presiding Member, EPNRM Board Peter Treloar Member for Flinders Bruce Green Mayor, City of Port Lincoln Dion Dorward CEO, RDA Whyalla and Eyre Peninsula [proxy for Jim Pollock] Daniel Woodyatt Director, Resource Land Access Strategy, DSD [proxy for Ted Tyne] Phil de Courcey CEO, RESA Invited Guests: Trevor Smith CEO, DC Tumby Bay Tim Scholz Principle Advisor, Stakeholder Engagement, Iron Road Limited Melissa Muller Principal Policy Advisor, Resource Land Access Strategy Branch, DSD Charles Moore Director, Resources and Strategy, DSD Vince Duffy Executive Director Energy Markets & Programs, DSD/Chair, Upper Spencer Gulf and Outback Taskforce Bob Ramsay Special Projects Manager, RDAWEP Aina Danis Executive Assistant RDAWEP/EPLGA [minute taker] Brad Flaherty Director, BNJ Consultants Apologies: Jason Kuchel, Ted Tyne, Matt Pinnegar, Jim Pollock, Mark Elford, Eddie Hughes, Tony Irvine, Don Hogben, Skana Gallery 1.0 MEETING OPENING: 1.1 Welcome/Apologies Chair Rob Kerin welcomed members and guests to the meeting and explained the procedure for the day s business. 2.0 DISCLOSURE OF CONFLICTS OF INTEREST: None tabled. Bruce Green informed members that he is also on the Board of the LGA and therefore able to take back messages if required. 3.0 CONFIRMATION OF MINUTES: 3.1 Third meeting: 9 June 2015 Tim Scholz to be added to list of attendees. Recommendation 01/16: Moved: E Scholz Seconded: D Dorward That the amended minutes of the 4th meeting of the Eyre Peninsula Mineral and Energy Resources Community Development Taskforce held in Port Lincoln on Wednesday 25 November 2015, as supplied to members be adopted as a true and correct record of that meeting. CARRIED 30 March 2016 Page 1

2 4.0 BUSINESS ARISING FROM THE MINUTES Action Items 25 November 2015 [refer agenda item 6.3]. 5.0 PRESENTATIONS 5.1 Dion Dorward, CEO Regional Development Australia Whyalla and Eyre Peninsula: Regional update. Dion Dorward spoke on the following items of interest: Whyalla, Arrium and contraction in the mining industry: - Upper Spencer Gulf Taskforce to address the loss of jobs, being in excess of 6,000 in the last 2 years. - Various activities to address loss of employment, businesses [contractors]. - Investment properties would rue this action. - Impact on families/banking transactions/businesses. - Arrium unclear at this stage of the outcome of the future of the company. - Ongoing talks have been undertaken with government regarding assistance for Arrium. - The focus should be on reduction of input costs power, water, payroll tax, etc and to drive demand for Australian steel and capability. - Investment in the rail from Tarcoola to Adelaide will employ people and create wealth. - High percentage of employment relies on the heavy industry/manufacturing/mining sectors. - Provision of mining services to the rest of the State future projects are at risk due to the services no longer being available. - Planning projects for the future, such as energy, fuel, mining essential to upgrade current infrastructure. - Infrastructure requirements and mining in South Australia - Infrastructure Australia released its 15 year plan, listing 3 major projects. The Gawler Craton rail was included however where will it connect to/which port was not specified. - Adelaide to Melbourne line upgrade utilisation of Australian steel. - Increase mineral port capacity in South Australia inclusion of the Port of Whyalla, Point Lowly and Cape Hardy are recommended. - A report completed by the Adelaide University [sponsored by the State Government, major stakeholders such as Santos, BP, etc] focuses on the sensitive eco systems within the Spencer Gulf and anything north of Arno Bay is a key area of concern. - The proposed Braemar Region Project has slurry being piped from Broken Hill and out into sea in the Spencer Gulf. Emerald Grain/Cape Hardy: - Emerald Grain recently announced their agreement to transport their grain through Cape Hardy if the development of the port proceeds. - Background of this initiative provided, along with the savings associated with establishing a port at Cape Hardy, including bulk handling and storage. - Impact on the roads in the region associated with the development of the port was highlighted. - Feasibility of an upgrade of the rail gauge and connection to Whyalla. - This initiative was discussed at a meeting with Infrastructure Australia regarding projects, during which it was raised that Cape Hardy should be connected to the National grid, which would entail a 2 year process, including planning, surveying, etc. - Having access to sufficient port facilities would assist Arrium and the Cultana Defence Training Facility. The Port of Whyalla is too narrow, unless barging is utilised however ships would be in demurrage and therefore the barging system would not be efficient or cost benefit. Dion Dorward highlighted that the closure of the Alinta power station has also affected employment/business in Whyalla, and Vince Duffy confirmed that 440 staff were laid off and an addition 160 in terms of supply chain numbers. Chair Rob Kerin added that because of the loss of the base load, businesses are now nervous, including Whyalla, eg Thomas International and the imminent increase in power costs will also be a major impact. Off-grid solutions were discussed, such as utilisation of the gas pipeline however these alternatives were not cost effective due to the need for costly conversions/infrastructure and storage capacity. Dion Dorward reported that the next steps to progressing the establishment of a port at Cape Hardy is to sell the business case study to/lobby the State and Federal Governments. 30 March 2016 Page 2

3 Dion Dorward spoke on operating costs barging costs/tug fleets in Whyalla compared to establishment of a port at Cape Hardy. Bruce Green stated that as the taskforce is under the umbrella of the EPLGA, the protocol for political lobbying would be for the EPLGA to undertake that role. Members resolved that the EPLGA be approached to write a letter to the Federal and State Governments, highlighting the importance of investing in and enabling infrastructure in the State. 5.2 Tim Scholz, Principle Advisor, Stakeholder Engagement, Iron Road Limited: Update on the Central Eyre Iron project Tim Scholz informed members that John Murray, Chairman/Managing Director, Emerald Grain sends his apologies and aims to attend in the next meeting of the taskforce. The application was lodged by Iron Road approximately a week ago. Submissions have been sorted, with an outcome of 52 positive and 49 negative responses registered. Examination of the negative submissions indicated that there are 2 activist groups that presented large submissions, which were mainly focussed on the impact of the impending infrastructure, rail corridor, etc. No new issues aside from public consultation phase were raised within the submissions. A comprehensive and sensitive Response Document has been produced and forwarded to the government. It is expected that a decision will be announced by September/October Perception of people directly impacted. The issue of compensation to the community is contentious at this stage however no offers have been put to the community and will not be until the project receives approval. Tim Scholz spoke on the following on behalf of Emerald Grain: The current cost per tonne to transport grain is $79 and it costs the handler $12.65 per tonne to export the grain to Indonesia. Transport costs in Western Australia are $66 and Victoria $72 per tonne. The establishment of a port at Cape Hardy will create a $10-$14 per tonne saving for farmers. The region s farmers have continually incorporated up to date cropping methods and systems since the 1960s however the transport system is stuck in the same time zone, which reflects on the competiveness of Australian grain. Outcomes from the Select Committee s final report: - The only conclusion that can be made is that the market parameters in the SA grain industry do not provide the basis for a vigorous and competitive market place for SA growers. - The Select Committee has received evidence from many industry participants that a lack of competition in the South Australian market is holding back the realisation of benefits that can be generated in deregulation. Their experience is that they do not receive an efficient or economic service Overview of Emerald Grain. Grains Industry Shared strategic vision by John Murray, CEO, Emerald Grain: - Both industry and government should be responsible for formulating a plan to improve farm productivity so that grain growers can achieve a better return at the farm gate. There is a need for a strategic, long term plan to ensure growers remain viable - otherwise we don t have an agricultural industry in the region. Map of cropping area on Eyre Peninsula, indicating the significant geographical advantages of the establishment of a port at Cape Hardy. Currently discussions are being held between Emerald Grain and Iron Road regarding engineering work stage 1 and stage 2 and construction of a partnership. Indication at this stage is 1 million tonnes per annum, which will be ramped up, and segregation taken into account as the company understands the need for the facility at Cape Hardy to take every type of grain. 30 March 2016 Page 3

4 5.3 Vince Duffy, Executive Director Energy Markets & Programs, DSD/Chair, Upper Spencer Gulf and Outback Taskforce: Impact on Eyre Peninsula of Alinta Power Stations closures and Energy Markets. Background information: Involved in energy policies since Alinta Taskforce 5 sub-committees established power/employees/upper spencer gulf/mining. Last train of coal towards the end of April Removal of stockpile is a major issue. Impact of loss of Alinta power station - the changing dynamics of energy market made it no longer viable to maintain the operation at Port Augusta, which will cause a significant impact on customers regarding pricing. Wind farms development. Solar panels on roof tops are continually on the increase. Investment in large scale wind. Large manufacturing and industrial production sites are closing down, creating a decline in demand, adding to the complexity of the energy industry. Export of gas from Queensland also adds another layer to the complexity of the transformation within the energy industry of South Australia. Gas prices are increasing as well due to internationalisation. 3 transformers installed at Hayward. Electranet undertaking work in South Australia new capacitor installed. A discussion paper has been issued to energy retailers and a roundtable planned regarding possible solutions within the next month, followed by broader community engagement. Reduction in carbon levels and energy levels. The issue of solar energy was discussed and the following key points raised: The company SolarReserves is seeking funding for solar panels plant at Port Augusta long term development for this project. Capacity factor is a major element, ie infrastructure vs demand vs storage economies of scale for storage. Installation of batteries. AGL is currently looking at a new business model New Energy offering customers free meters, new range of options regarding energy usage/cost/payment. SA Power Networks currently working on the Tariff Structure Statement demand charged. 5.4 Charles Moore, Director, Resources and Strategy, DSD: SA Copper Strategy Unlocking SA s potential resources, energy and renewable assets: Demand for copper is increasing around the globe. Critical for a more energy-efficient world. SA a great place to invest in mineral projects. Low risk mineral investment jurisdiction. Rich copper endowment. Stable regulatory environment. Government strategies to support resources. World class research facilities. Skilled resources workforce. Community support. Copper resources in South Australia map. SA copper strategy: Vision Objective Actions Developing the strategy: timeline and steps to create the copper strategy. Growing copper production: steps to achieving the production increase. Benefits for South Australia: Actions Theme 1: Exploration, discovery and information. 30 March 2016 Page 4

5 Major global copper deposits: Actions Theme 2: developing innovative infrastructure, services and research. Actions Theme 3: building industry and community capacity. Actions Summary: Copper Strategy actions linked to the copper industry drivers. Delivering increased economic and community benefits for SA and Australia. Providing development and investment to the State. The following issues were raised regarding regulation/promotion of the mining industry: DSD is the regulator delays in production can mean death to the mining industry. Requirements and appearances before the Environmental Court are essential to ensure due process. Attention needs to be drawn to the regulation issues within government. Regulator and Promoter are operating in the same context, which is a major factor within the community. There needs to be a separation between regulation and promotion. The anti-groups are using this as a platform to stop mining initiatives. The lack of access through the Mining Act 1971 by Local Government needs to be reviewed. There is difficulty with opening the Act, which has been an issue for quite some time however the next few years will possibly provide an opportunity. SA is in the top 10 jurisdictions for investment. Perception is reality needs to be addressed. The Act was previously opened up in Water resources looking at groundwater/opportunities for desalination/consideration of ecological impact being a primary concern. Mining companies are looking at methods that reduce water usage, eg recycling, etc. Meeting adjourned at 12.45pm and reconvened at 1.10pm. 6.0 REPORTS 6.1 Chairman As covered earlier regarding the discussion around the city of Whyalla and Arrium Pty Ltd. 6.2 Members Peter Treloar reminded members that written submissions regarding the proposed exploration in the GAB by BP Australia close this week, which includes making an oral submission. Peter Treloar also mentioned that SA Water is planning to spend money on the Tod Reservoir. Dion Dorward informed members that during a presentation at Ceduna, Chevron mentioned the possible use of Cape Hardy for future projects in preference to Port Adelaide. Diana Laube stated that there was nothing further to report regarding the NRM levy at this stage. Dion Dorward provided an update on the issue in Kimba regarding nuclear fuel recycle proposal, adding that the April meeting of the RDAWEP Board will be conducted in Kimba to assist DC Kimba with the matter. Peter Treloar reported that final report from the Nuclear Fuel Recycle Commission is due on 6 May Taskforce Coordinator Geoff Dodd expanded on the following items Coordinator s Activities/Meetings Amendments to Taskforce Membership Moved D Laube Seconded: P Treloar That the Eyre Peninsula Mineral & Energy Resources Community Development Taskforce recommends to the Eyre Peninsula Local Government Association that the Terms of Reference be amended to include the membership of Trevor Smith, Chief Executive Officer, District Council of Tumby Bay. CARRIED 30 March 2016 Page 5

6 The following people will be invited to present at future meetings: Paul Heithersay; Jon Bok; Renee Preece; Phil de Courcey; Professor Hayden Manning; and Dean Johnson Change of Representative Submission CEIP Mining Lease and EIS Copy of Taskforce Submission CEIP Mining Lease and EIS Taskforce Work Plan Relevant amendments to be made to the taskforce contact list. 6.4 LGA of SA No report tabled. 6.5 Department of State Development Daniel Woodyatt spoke on the submissions regarding the Iron Road application, adding that sourcing positive submissions is high on the agenda. The Response Document has also been received from Iron Road Limited. 6.6 South Australian Chamber of Mines and Energy No report tabled. 7.0 CORRESPONDENCE 7.1 Taskforce Coordinator: Report to the Eyre Peninsula Local Government Association 7.2 Geoff Dodd: Hon Susan Close: Retention of education services on Eyre Peninsula within small rural schools, with a detailed letter of concern attached. 7.3 Geoff Dodd: Hon Susan Close: Letter of concern regarding the possible closure of the Port Neill Primary School and the impact of mining development on Eyre Peninsula. 7.4 Geoff Dodd: Hon Geoff Brock: Notification via of the letter sent to the Hon Susan Close [copy of letter attached to the ] regarding possible closure of the Port Neill Primary School and the impact of mining development on Eyre Peninsula. 7.5 Hon Susan Close: Rob Kerin: Response to the letter of concern from the taskforce regarding the possible closure of the Port Neill Primary School. Peter Treloar reinforced that the government would never force closure of a school. 7.6 Renee Preece, External Affairs Advisor [SA], BP Australia: Geoff Dodd: notification of BP s submission of its Environment Plan for exploration drilling in the Great Australian Bight to the National Offshore Petroleum Safety and Environmental Management Authority [NOPSEMA]. 7.7 Renee Preece, External Affairs Advisor [SA], BP Australia: Geoff Dodd: Details on the development of BP s Environment Plan for exploration drilling in the Great Australian Bight, along with relevant attachments. 8.0 GENERAL BUSINESS Dion Dorward provided an update on the following mining operations: Iluka Resources 33 jobs lost however will kickstart again in approximately 18 months. Valence Industries 36 jobs lost and restart date is unknown at this stage. Archer Mining 30 March 2016 Page 6

7 Vince Duffy spoke on the Archer Mining trial linked to the magnesite deposit at Leigh Creek, adding that the site is still being proven and approval is being sought for future exploration. 9.0 NEXT MEETING/CLOSE OF MEETING Geoff Dodd informed members that details of the next meeting will be forwarded to members in due course. Chair Rob Kerin thanked guests and members for their attendance and input and declared the meeting closed. Meeting closed at 1.50pm. 30 March 2016 Page 7