!"# $ Presented by Hon. Richard Court AC, Chairman, GRD Minproc Limited Tuesday 22 September 2009

Transcription

1 !"# $ Presented by Hon. Richard Court AC, Chairman, GRD Minproc Limited Tuesday 22 September 2009

2 Bullet 1 - Bullet 2 Bullet 3 2

3 % Brazil and Australia have much in common Both in the Southern Hemisphere. Both rich in minerals. Both have benefited from the post World War II economic miracles of Japan, Korea, Taiwan and now China and India. Both countries have discovered significant petroleum/gas reserves in recent times. The main difference between Brazil and Australia is the population size. Australia is a large country with only 22 million people. Brazil is slightly larger but with close to 200 million people. 3

4 & Main driver of resource exports with the exception of coal. Fifty years ago export of iron ore from Australia was banned. Federal Government wanted to protect what was thought to have been limited reserves for the domestic steel industry. Today Western Australia exports in excess of 350 million tonnes per year of iron ore and supplies 40% of China s iron ore imports. Fifty years ago Western Australia was a weak mendicant State. On the back of resource development is the major driver of the Australian economy. With only 10% of the Australian population produces 40% of the Nations export income. Western Australia accounts for 65% of Australia s exports to China. 4

5 1969 5

6 2009 6

7 '() *+,-.--/0 (12 3!*+,-.--/0 350 Source: DMP and ABARE 300 Million Tonnes Milhões de Toneladas

8 '() *+, (12 3!*+, Source: USGS 300 Million Tonnes Milhões de Toneladas

9 56() *+, (12152*+, Source: USGS 400 Million Tonnes Milhões de Toneladas

10 766() *+, (12187 *+, Source: USGS 400 Million Tonnes Milhões de Toneladas

11 6() *+, (121 *+, Source: USGS 400 Million Tonnes Milhões de Toneladas

12 () *+,-.--4%.--/0 (12 9 *+,-.--4%.--/0 20 Source: DMP and ABARE (Australia), USGS (Brazil) Million Tonnes Milhões de Toneladas Brazil

13 7 () *+:;.--/0 (127< *+:;.--/0 70 Source: Thousand Tonnes Mil Toneladas Reactor Requirements Requisitos Reatores

14 !)6)) What are the main factors for that success in Western Australia? How could such a relatively small population (only 2 million people in the State) produce such great mineral wealth? What mistakes have been made? What failures have there been in the process that will guide future strategies? 14

15 (!)6)) Government involvement Lack of Government interference. Role of the State - To develop Agreement Acts giving companies access to large mineral deposits, clearly defining the responsibilities of the Government and Private Sector. Mineral deposits development Key infrastructure, railways, ports, etc developed by the private industry. Taxation - States have set up realistic royalty regimes and work cooperatively with companies. Federal taxation regimes have also been realistic encouraging long term investments. Exploration Mining laws evolved since 1800 s when gold was the main target. Customer Relations Development of close commercial and social alliances. Industrial Relations/Labour Market Until 1990 s highly centralized Industrial Relations system. In 1990 s changes with new Industrial Relations laws, deregulating the labour market. 15

16 # )=)) Value adding Initial iron ore Agreements had specific value adding obligations ; an area of disappointment. To meet obligations some companies built pellet plants dependent on oil prior to the massive gas reserves being discovered. Plants had to close. Regional communities Lack of investment in developing strong regional communities near major projects. Concept of Fly In Fly Out. Aboriginal people Involvement of aboriginal people in mining developments had a poor start. Native title legislation. 16

17 Bullet 1 - Bullet 2 Bullet 3 17

18 $ ) > )? China s Direct Investment in Africa (2007) Investimento Direto da China na África (2007) Algeria Sudan South Africa Nigeria Sudan Zambia Algeria Niger Egypt Mauritius Tanzania Ethiopia Congo DR Angola Madagascar Libya Guinea Congo Zimbabwe Gabon Kenya Eq. Guinea Milhões de US$ USD Million Nigeria Zambia South Africa Source: Chinese Statistical Bulletin of OFDI; TBA Analysis 18

19 $ ) > ) China s Total Foreign Investment in Africa ( ) Investimento Estrangeiro Total da China na África ( ) 1,800 1,500 US$ Million Milhões de US$ 1, Source: Chinese Statistical Bulletin of OFDI; TBA Analysis 19