® steve pyne & paul west 20th september 2012 building something great™ ‘creating certainty...
TRANSCRIPT
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Steve Pyne & Paul West 20th September 2012
Building something great™
‘Creating Certainty in an Uncertain World’
Concurrent Session 1 - Development Approvals, Projects
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‘Creating Certainty in an Uncertain World’
The next 20 minutes
Outline the context for the demand and issues associated with gaining access to extractive resources in Queensland;
Provide an overview of the specific strategy that Boral has implemented since 2002 to unlock its leading resource position; and
Articulate some of the outcomes that have been achieved.
The outcomes of this strategy were recognized in the 2011 CCAA Qld Environment, Health & Safety Awards, with Boral receiving the Overall Award for Environmental Innovation.
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‘Creating Certainty in an Uncertain World’
Issue: Demand in SEQ
Research commissioned in 2007 by CCAA indicates South East Queensland requires 850 million tonnes of quarry resources to sustain its growth up to 2026.
The same study identified an estimated total resource of 1,656 million tonnes in SEQ.
The total available resource without restriction of 531 million tonnes (approved and not approved) could potentially be depleted by about 2020; and
Access to the total resource (approved and not approved) currently affected by a high level of restriction (971 million tonnes) would ensure SEQ’s supply well past 2026.
(CCAA 2007)
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‘Creating Certainty in an Uncertain World’
Issue: Access to Extractive Resources
If agricultural land arouses passions, the aggregates industry arouses venom. It would require a psychologist to explain this irrational difference. (Cullingworth 1987)
The most serious reason for loss of extractive resources is that they are not recognized by the community as providing community value, whilst resources such as vegetation, soils, archaeological sites & endangered species are recognized. (Bauer 1993)
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‘Creating Certainty in an Uncertain World’
Issue: Access to Extractive Resources
The Extractive Industry in SEQ is cognisant of the key issues to be addressed to ensure a sustainable supply of aggregates:
- The industry’s ability to influence government environmental legislation and policy outcomes;
- Demographic trends are fuelling encroachment on extractive resource assets in SEQ; and
- Community expectations around existing or proposed extractive operations are increasing.
If not addressed these result in:- Increased risk for investment- Potential to sterilise resources- Increase operational costs - Threaten regulatory compliance
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‘Creating Certainty in an Uncertain World’
Solution: Investment in a focused strategy to ‘change perceptions’ & unlock extractive resource assets
In 2002 Boral identified a lack of focus in the development of extractive resource assets was no longer sustainable.
To unlock Boral’s extractive resource position a strategy was developed, focusing acquisition, protection, value add, positioning and development of extractive assets.
Since 2002 Boral has developed in house competencies specifically for managing these elements.
The Boral Property Group (BPG) work collaboratively with the Quarries and other Boral businesses.
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‘Creating Certainty in an Uncertain World’
Solution: Acquiring, Protecting & Positioning Extractive Resources
Since 2002 Boral in Qld has acquired 8 extractive resource assets in addition to 4 long term extractive lease interests (excludes several business acquisitions).
Work since 2002/03 on Boral’s quarry resource positions in Queensland has yielded an additional 445 million tonnes of identified and/or secured resources.
We are currently managing land use encroachment issues at a number of sites & vigorously protecting resources through political, governmental & legal means.
We are adding value to extractive resource assets by ensuring they are appropriately designated in relevant Statutory Planning frameworks.
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‘Creating Certainty in an Uncertain World’
Solution: Changing Perceptions
To better position these assets significant time & resources has been committed to stakeholder engagement and management activities.
At the Federal, State and Local government levels, regular briefings & relationship development has been a focus with elected representatives and senior bureaucrats to gain support for existing operations & future proposals.
At the local community level Boral in Qld currently have community liaison groups at 9 operations (in excess of 125 individual Community Liaison Group meetings have been held to date involving 150 stakeholders).
In excess of 19 community engagement projects run at key quarry operations.
31 community engagement events have been held throughout Queensland, with more than 1700 community members attending those events.
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‘Creating Certainty in an Uncertain World’
Solution: Changing Perceptions
Boral’s open and transparent approach to engagement with local communities & interest groups is resulting in unprecedented support.
Cultural heritage is now also being managed by negotiating agreements & engaging with key groups.
Boral is also increasingly deriving benefit from compatible uses on buffer land, such as the development of Koala Fodder Plantations.
Recognition of the Changing Perceptions approach towards sustainable development has now been received from the Government, Regulators and the Industry.
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‘Creating Certainty in an Uncertain World’
The Outcomes
The specific benefits enjoyed by Boral as a result of investing in unlocking its extractive resource positions include:
- Thorough due diligence has avoided exposure to high risk resource acquisitions;
- Extractive resource assets are being protected from urban encroachment and appropriately designated to add maximum value;
- Positioning these sites for development has been underpinned by the 'Changing Perceptions' strategy;
- To date 6 out of 6 Boral quarry development applications in Qld have been approved;
- These DA’s received support from the local community and the respective Council’s and elected members, particularly around the consultation efforts;
- The timeframes for decisions averaged 11 months, providing for a greatly reduced assessment time compared to other comparable quarry applications;
- Avoidance of cost, time delays and increased risk for Appeals in Planning & Environment Court (minimum cost $500k per Appeal & 12 to 18 month delay);
- Implementation of effective stakeholder engagement strategies has resulted in an estimated DA cost saving of well in excess of $3 million to date.
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‘Creating Certainty in an Uncertain World’
Benchmarking & Transferability
Boral’s open & transparent DA consultation model contrasts with the typical alternative ‘old school’ approach which has resulted in applications generating significant local opposition and either being refused or dismissed in the P&E Court.
Boral is continuing to focus on securing approvals at our long term resource positions across Queensland over the next 5 years, currently pursuing a further 10 quarry development applications.
The approach adopted by Boral to unlock key resource positions is not only transferable to the rest of the industry, but equally across other industry sectors that suffer from competing land use challenges. It is simply a more effective way of doing business.
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Building something great™
‘Creating Certainty in an Uncertain World’
Steve Pyne & Paul West 20th September 2012