Australian Gas Export Outlook 2014 Brisbane 24 June Queensland s gas transition and the accidental infamy of Curtis Island Michael Roche Chief Executive
About the Queensland Resources Council > The Queensland Resources Council (QRC) is a not-for-profit peak industry association representing the commercial developers of Queensland s minerals and energy resources > 82 full members explorers, miners, mineral processors, site contractors, oil and gas producers, electricity generators > 169 service members - providers of goods or services to the sector > Multi-commodity, state-based advocacy body formed in 2003 as successor to the Queensland Mining Council
Aberdare Collieries Adani Mining Allegiance Coal Altona Mining Anglo American Anglo American Exploration Aquila Resources Areva Resources Australia Arrow Energy Bandanna Energy Beach Energy Bengal Coal BHP Billiton Cannington BHP Billiton Mitsubishi Alliance Caledon Coal Cape Alumina Cape Flattery Silica Mines Carabella Resources Carbon Energy Carpentaria Gold Cement Australia Chinova Resources Civil Mining and Construction Coalbank Cockatoo Coal ConocoPhillips Australia Downer EDI Mining Eagle Downs Coal Management Mastermyne Ensham Resources ERM Power Evolution Mining Exco Resources Glencore Coal Glencore Copper Glencore Zinc Golding Contractors Guildford Coal GVK International Coal Investigator Resources Isaac Plains Coal Management Jellinbah Resources Jindal Steel & Power John Holland Kalimati Coal Company Leighton Contractors Linc Energy Lucas Group Macmahon Holdings Metallica Minerals MetroCoal Millmerran Power Management Thiess Minerals and Metals Group Mitsubishi Development New Hope Group Norton Gold Fields Origin Energy Paladin Energy Peabody Energy QCoal QER QGC Queensland Coal Investments Rio Tinto Alcan Rio Tinto Coal Australia Rockland Resources Santos/TOGA Senex Energy Shell Development (Australia) Sibelco Australia Sojitz Coal Mining Stanmore Coal Summit Resources U & D Mining Industry (Australia) Vale Valiant Resources Wesfarmers Resources Westside Corporation Whitehaven Coal Yancoal Australia 82 full members 169 service members 39 associate members
Gas supercharges resources sector spend on Darling Downs 2009-13 2012-13 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $- 2009-10 2010-11 2011-12 2012-13 1,180 direct employees 18,160 indirect employees 15% of Darling Downs employment 27% of Darling Downs GRP Source: www.queenslandeconomy.com.au 5
Queensland resources sector produces:
Billions $50 The looming LNG contribution $45 $40 $AU12 billion LNG (Mt) A$/t Zinc (kt) US$/t $35 Silver (t) USc/troy oz $30 Lead (kt) US$/t Gold (t) US$/oz $25 Copper content (kt) US$/t $20 Black Coal (Prime Coking) (Mt) USD$/t $15 Black Coal (Thermal) (Mt) USD$/t Bauxite (kt) A$/t $10 Aluminium (kt) US$/t $5 Alumina (kt) A$/t $- 2014 2018 forecast Source: BREE and IHS McCloskey
Addressing energy poverty a UN priority Current renewables can t deliver reliability and scale to lift billions from poverty Skyrocketing electricity demand dictates we must make more from everything we have coal, gas, uranium, renewables. 1.3 bn people without electricity; 2.7 bn without clean cooking facilities
The accidently infamous Curtis Island. World Heritage Committee meeting (Paris, June 2011) Advice from Australia of approval for GLNG project on Curtis Island seemingly misinterpreted: The World Heritage Centre and IUCN recall the Committee s position that exploration and development of oil and gas should not take place within World Heritage properties, as recognised in leading industry commitments to not explore for, or develop, oil and gas resources in natural World Heritage properties.
What difference a map might have made to the original advice provided by Australian governments Curtis Island Coal-seam gas exploration and development 0
The anti-coal movement took its cue......build the anti-coal movement and mobilise off the back of the community backlash to coal-seam gas. UNESCO has lodged a complaint to the Australian Government and will be inspecting the site in March 2012. What happens in Gladstone will have major implications which may limit other proposed new coal ports up the Queensland coast all of which are also in the Great Barrier Reef Marine Park and can help to mobilize a powerful constituency to protect the Reef from the impacts of the coal boom.
UNESCO monitoring mission report sets the stage......the current approach to the development and construction of Gladstone Harbour and on Curtis Island are not consistent with the highest standards of best practice, commensurate with status of an iconic World Heritage property, and those applied to other management challenges both within and outside World Heritage property s (sic) in Australia. (2012 Reactive Monitoring Mission report)
Coal and gas under coordinated attack Orchestrated global/domestic ENGO campaign aimed at shutting Queensland coal (and gas) industries down: > Misrepresent threat to Great Barrier Reef from shipping, dredging, port development. > Litigation: use the courts to stop or delay projects > Change the story of coal: change the perception of coal as backbone of the economy > Create investor uncertainty: create perception of risk over coal [fossil fuel] investments > Create a powerful link in the public mind between coal and health problems
The project (Fight for the Reef) is run jointly by WWF and the Australian Marine Conservation Society is a coalition initiated by the (Thomas) Foundation.
Social media declares GBR Marine Park dead in 2013
QRC pushing back with facts REEFVTS 24/7 ship monitoring, Townsville
Great Barrier Reef shipping, dredging facts o Neither an increase in shipping nor port dredging has been recorded as contributing to coral cover loss or historical decline in environmental health of GBR. o Ports accessed via designated, naturally-occurring deepwater channels under 24/7 reporting and monitoring (REEFVTS, Townsville). One incident in 10 years. o 22 dredging campaigns successfully managed by Abbot Point owner (NQ Bulk Ports) o Abbot Point 3 million cubic metre relocation approved over 5 years; limited by time and volume; 142 conditions include 150% reduction in fine particle pollution from Don and Burdekin Rivers. o The seafloor of the approved disposal area consists of sand, silt and clay and does not contain coral reefs or seagrass beds. Testing has confirmed there are no known contaminants. (GBRMPA) o The nearest coral reef is 40 km from the disposal site. o Port dredging portrayed as environmental bogey-man despite no documented evidence other than short term, localised turbidity. o Is Gladstone shipping channel duplication the next target for the activists campaign?
Get the facts focus of TV advertising
www.reeffacts.qld.gov.au
Changing the story of gas The Australia Institute (founding member anti-coal movement) Fracking the Future What Australians don t know about CSG $2.9 billion CSG surcharge Cooking up a price rise Mining the age of entitlement It should be recognised that The Australia Institute (TAI) is part of a wider movement to stop coal and coal seam gas development in Australia a movement that includes Greenpeace and Beyond Zero Emissions, so its motives are clear. APPEA statement, March 2014
Creating investor uncertainty
Creating a link between gas and public health Locals are doing everything they can to spread the word about the dangers of coal seam gas (CSG) mining. Debbi, a GetUp! member from Tara QLD, even drove 5 hours down to NSW to tell a community meeting what coal seam gas is doing to her kids' health.
Count on the debate intensifying...
State of play and next steps > June 2014 - WHC welcomes progress by Australia on management of GBR but indanger listing still a threat for June 2015 meeting > End 2014 Long Term Sustainability Plan for GBR finalised and submitted to WHC > December 2014 first gas exports from Gladstone will attract ENGO focus > Ongoing ENGO campaign to demonise ports, dredging and shipping as key threats to GBR health; other anti-coal and gas tactics will continue to be pursued (e.g. today s TAI report on state government subsidies for mining) > Ongoing QRC ports campaign to highlight facts and science > First half 2015 possible Abbot Point Stage One dredging > June 2015 WHC meeting will consider possible GBR in-danger listing
Australian Gas Export Outlook 2014 Brisbane 24 June Queensland s gas transition and the accidental infamy of Curtis Island Michael Roche Chief Executive