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The whole story

Mining’s contribution to the Australian community

Mining employs 200,000 Australians and accounts for up to 50 per cent of employment in some regional centres

Regional jobsThe minerals industry spent $1.8 billion on R&D in 2013-14

– that was 10 per cent of the total R&D spend in Australia

Driving innovationIndigenous employees make up 6 per cent of the workforce – and 19 per cent of Indigenous employees are women

A diverse workforce

The whole storyContents

03 Foreword05 Introduction08 High skilled, high paid jobs13 Skills and training16 Indigenous partnerships22 Regional development26 Investing in communities33 Protecting the environment40 A safe, reliable energy provider44 World-leading innovation 49 Tax transparency52 Endnotes

WarningPlease be aware that this publication may contain the names or images of Aboriginal and/or Torres Strait Islander people who may now be deceased.

3 THE WHOLE STORY Mining’s contribution to the Australian community

Mining’s contribution to the Australian community

Foreword

While Australia’s minerals sector is a major source of export income, economic growth and national wealth it largely operates out of sight of most Australians.

This means that many Australians do not have first-hand knowledge of the contribution the sector makes to regional and remote communities and the sector’s commitment to responsible environmental performance.

The Whole Story is designed to provide a snapshot of the minerals sector’s determination to maintain and continuously improve its economic, social and environmental performance and community contribution in all states and the Northern Territory.

It tells this story through the work of everyday Australians in the mining industry who have a practical impact on communities Australia-wide.

The Whole Story reveals an industry that has demonstrated its commitment to building and maintaining its social licence in communities as diverse as the Hunter Valley, the Pilbara, the

Bowen Basin, Port Augusta and the Tanami Desert.

It is an industry that provides more than 200,000 highly paid, highly skilled jobs mainly in regional and remote Australia and many hundreds of thousands more in supply and service industries.

It is an industry that has developed productive and rewarding relationships with Indigenous communities across Australia.

It is an industry that is committed to leading practice in innovation, safety performance and environmental management.

It is an industry that is determined to remain a major contributor to Australia’s national economic prosperity for decades to come.

I trust that you will find The Whole Story informative, interesting and inspiring.

Brendan Pearson Chief Executive Minerals Council of Australia

Export volumes have increased by 19 per cent over the past three years

19%EXPORT VOLUMES

Massive investment between 2003 and 2014 underpins the production and export phase now underway in Australia

$400bMINE INVESTMENT

Full-time adult earnings are 69 per cent above the all-industries average

69%HIGHER WAGES

Employment levels are still 15 per cent above the decade- long average as the industry normalises after the boom

200,000INDUSTRY JOBS

There are twice as many jobs in the minerals sector now than there was before the boom.

Indigenous trainees In training at Weipa Bauxite Mine on western Cape York

Peninsula, Queensland. Image courtesy: Rio Tinto


The Australian minerals industry’s contribution to local communities, regions and the nation is substantial, wide-ranging and enduring. This contribution flows from exploration and development right through to production and ultimately closure.

Even lease relinquishment at the end of a mine’s life does not signal the end of mining’s contribution to the communities and regions in which it operates. The economic activity during the mining lifecycle creates lasting increases in regional capacity, through infrastructure development, skills and training, wage growth and community development.

The millennium mining boom saw a rapid rise in commodity prices followed by a ‘once-in-a-century’ surge in investment. This investment underpins the production and export phase of the mining boom which continues to generate gains for the Australian community.1

The dividends are vast and spread throughout the country.

The role of mining as the foundation of Australia’s modern prosperity was underlined by research released by the Reserve Bank of Australia in August 2014.

It compared Australia’s economic outcomes over the past decade with a ‘counterfactual’ of no mining boom. It found that by 2013 the boom had raised real per capita income by 13 per cent, raised real wages by 6 per cent and lowered the unemployment rate by 1.25 per cent.3

Introduction

“That all Australians have benefited enormously from the resources boom is unquestionable. We are now in the third phase of the boom, which is seeing significant increases in export volumes, and Australians are continuing to benefit... The massive $400 billion investment the Australian resources industry has driven by the decade long super-cycle over the period from 2003 to 2014 has expanded our economy and lifted the average Australian household’s weekly income by $100 per week. This has been an unparalleled experience in Australia’s economic history.”2

The Hon. Josh Frydenberg MP Minister for Resources, Energy and Northern AustraliaSeptember 2015

Image courtesy: Rio Tinto

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THE DIVIDENDS [OF AUSTRALIAN MINING] ARE VAST AND SPREAD THROUGHOUT THE COUNTRY.

While the minerals industry faces a more constrained environment compared with the previous decade, it is important not to lose sight of the gains secured from a larger mining industry and the extent to which these gains endure. The mining sector’s capital stock is three times larger than it was a decade ago and despite lower prices, export volumes have grown 19 per cent in the last three years.4

Despite recent job cuts, employment levels in the minerals industry are still 15 per cent above the decade-long average and average full-time adult total earnings in

mining are 69 per cent above the all-industries average. Just one commodity, iron ore, is forecast to contribute $600 billion to the Australian economy over the next decade. 5

In September 2015, the Department of Industry, Innovation and Science reaffirmed the ongoing national dividends from the conversion of Australia’s natural resources into mineral wealth:

Despite the widespread downturn in commodity prices, the prospects for Australia’s resources and energy sector remain broadly positive. Australia’s resources and energy sector is transitioning

6 MINERALS COUNCIL OF AUSTRALIA

from a period of high investment to a period of production growth …

The production phase of the boom, which is yet to peak, is expected to last a lot longer than the price and investment phases of the boom (which were eight and six years, respectively) ...

While current market conditions are challenging, over the medium to long-term, demand for Australia’s resources and energy commodities is projected to increase, due to increasing consumption in developing nations, particularly in Asia. This expectation is based largely on increasing urbanisation and the expansion of manufacturing in emerging, highly populated Asian economies. As a

result, Australia’s earnings from resources and energy commodities are projected to increase at an average annual rate of 6 per cent a year from 2015-16 to total $235 billion (in 2015-16 dollar terms) in 2019-20.6

Minerals exports (which account for more than 80 per cent of total resources exports) have risen from around one third of Australia’s total exports of goods and services in 2004-05 to 45 per cent in 2014-15. Minerals exports today contribute about 9 per cent of Australia’s gross domestic product (GDP).

The nation’s largest mineral export earners in 2014-15 were iron ore ($54 billion), coal – metallurgical and thermal ($38 billion), gold

Community infrastructure & services such as schools, libraries, musems, financial systems and healthcare

$91.9mEducation & training for non-employees such as mining engineering scholarships, literacy for children in foster care or small business development training

$37.1mOther community investments such as health, age and disability programs; support for local farming, agriculture or sporting events

$40.7mLand access related payments such as native title, mine development, Indigenous and non-Indigenous heritage management

$259mLocal business development & support including spend on local suppliers and contractors, excluding Indigenous contracting

$32.2bIndigenous contracting for services such as rehabilitation, seed collecting, catering, land management, road maintenance, earth works and cultural awareness training as well as commercial contracts

$2.2b

Australian mining companies dedicated $34.7 billion to infrastructure, local suppliers and Indigenous contractors in 2011-12 alone:

($13 billion), aluminium ore and concentrates ($11.1 billion) and copper ($8.5 billion).7

Mining is capital-intensive and technologically advanced. The Australian mining and mining services and manufacturing sectors are world-leaders in the development and deployment of new technologies.

In 2013-14, the minerals industry spent $1.8 billion on research and development (R&D) – 10 per cent of total business R&D spending in Australia.8

The Australian black coal industry’s unique and highly successful Australian Coal Association Research Program (ACARP) began in 1992. Over the 10 years to 2014, ACARP spent $80 million on research projects

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THE PRODUCTION PHASE OF THE BOOM, WHICH IS YET TO PEAK, IS EXPECTED TO LAST A LOT LONGER THAN THE PRICE AND INVESTMENT PHASES OF THE BOOM.


based on a voluntary levy of five cents per tonne of saleable coal. The research improves the competitiveness, sustainable use and management of Australia’s coal resources.

The black coal industry is also partnering with governments and other private sector contributors to invest in the demonstration of low emissions coal technology through its unique COAL21 Fund. So far, the fund has committed more than $300 million to demonstration projects.

The development of a vibrant, home-grown mining equipment, technology and services (METS) sector also exemplifies the central role of mining in Australia’s economic, industrial and technological development. The METS sector

generates revenues of around $90 billion annually with an export component worth $15 billion per annum.9

As a high-tech industry, mining relies on a highly skilled, highly trained workforce. Mining produces more gross value added (GVA) per unit of labour than any other industry in Australia – almost double the second highest (the finance sector). The industry contributes $515,000 per employee to the economy.10

The minerals industry spends more than $1.15 billion annually on training and has a keen interest in the quality of the vocational education and training system. The industry has invested more than $40 million since 1999 higher education programs

in the disciplines of mining engineering, metallurgy and minerals geoscience. 11

Mining activity often increases regional development even after operations cease, providing a foundation for intergenerational growth. The 25 Australian mining companies surveyed by KPMG Banarra dedicated $34.7 billion to infrastructure, local suppliers and Indigenous contractors in 2011-12 alone.12

The industry’s approach to investment reflects its connection to local communities. This publication details the social and economic contributions mining provides across employment, training, Indigenous relations, local community development, the environment, energy, innovation and taxation.

Rail loading At Lake Lindsay Mine in Queensland.Image courtesy: Anglo American


High skilled, high paid jobsMining generates high skilled, high paid jobs in regional Australia

The minerals industry directly employs more than 200,000 highly skilled, highly paid workers across Australia.13

Mining employment is critically important to many regional and remote communities in Australia, with mining accounting for up to 50 per cent of employment in some regional centres. Mining provides high paying, full-time jobs outside our capital cities, delivering economic benefits to individuals, families and communities.14

Western Australia, Queensland and New South Wales account for 85 per cent of national employment in mining and 61 per cent of industry employment is in regional and remote areas (compared to 37 per cent for all industries).15

The majority of the industry’s workforce (close to 70 per cent) is employed in large enterprises of 200 employees or more and almost all mining jobs are full-time (97 per cent), which is the largest proportion of all industries.16

Average wages in mining are much higher than in most other industries with average full-time adult total earnings

at $2,605 per week in May 2015, 69 per cent higher than the all-industries average.17

Mining produces more GVA per unit of labour than any other industry in Australia – $515,000 to the economy for every worker employed, almost double the second highest sector (finance).18

While the commodity price slowdown has seen significant job losses in the sector, the decade-long trend has been positive. In the 10 years to 2013-14, the minerals

industry experienced among the fastest rates of job growth of all industries. Although employment in mining is down from the peak levels of mid-2012, it remains 15 per cent above the average of the past decade.19

Employment numbers fluctuate throughout the lifecycle of mining operations and are subject to market conditions but the mining industry continues to be a significant employer, particularly in rural and regional areas.

The workshop Essential maintenance underway at Dawson coal mine in Central Queensland. Image courtesy: Anglo American

are in regional and remote areas, compared to 37 per cent for all industries

61%MINING JOBS

AVG. WEEKLY PAYFull-time adult earnings in May 2015 – 69 per cent above the all-industries average

$2,605


Wesfarmers’ Curragh in central Queensland with partners Thiess and Salvation Army Employment Plus have received national recognition for their Oothungs (Sisters) in Mining through the National Training Awards.

Female Indigenous trainees undertake a three week pre-employment program to kick start their careers as trainee haul truck operators before commencing a two year traineeship in the nationally recognised Certificate II in surface extraction mine operations at the Curragh mine near Blackwater.

‘The Oothungs in Mining program is aimed at maximising employment opportunities for disadvantaged Indigenous women, while increasing the number of women in the male-dominated resources sector,’ says Craig McCabe, General Manager, Wesfarmers Curragh.

Participants also receive mentoring and help with setting goals, negotiation skills, nutrition and managing money.

The first group of 10 women graduated from the program

in 2014. Another group of women started the program in 2015.

One of the successful trainees, Anastasia Warren, says her self-confidence has increased.

‘I’m proud of myself and I walk with my head held high… this job has now given me the confidence that I can succeed,’ she says.

Another successful trainee, Jamie Hill, says it’s not just the individual women who benefit from the program.

‘A lot of us in the first group got an opportunity to buy houses, so that was good for our families,’ she says.

This job has given me the confidence that I can succeed.

Oothungs (Sisters) in Mining kickstarts Indigenous careers

Oothungs (Sisters) in Mining Indigenous trainees kickstart their careers at Curragh Mine in central Queensland. Image courtesy: Wesfarmers

ANASTASIA WARREN


Newmont Mining came up with a creative solution to addressing production downturns at its Boddington Gold Mine, south of Perth, Western Australia.

When full-time equipment operators on twelve hour shifts took morning tea and lunch breaks the trucks would sit idle.

The company offered training and employment to local women interested in working between 9 am and 2 pm to relieve the full-time operators.

Enter the Boddington hot seaters, a group of mums (and one dad) which has dramatically

Family friendly work hours benefit local mums

increased production by keeping the trucks moving while their operators are on breaks.

The hot seaters contribute an additional 120 to 160 hours of equipment operational time, valued at millions of dollars per year.

Importantly, the hot seaters have gained industry training skills and experience while still being able to drop off and collect their children from school.

‘To go to work when the kids are at school, knowing they’re safe and happy – we are lucky,’ says hot seater, Rochelle Pratley.

To go to work when the kids are at school, knowing they’re safe and happy

– we are lucky. ROCHELLE PRATLEY

Boddington hot seaters Keeping the trucks moving at Boddington Gold Mine in Western Australia. Image courtesy: Newmont Mining

The modern mining industry is building a diverse workforce

The Australian minerals industry has a demonstrated record of attracting and retaining a diverse workforce.

It is recognised that a wide pool of talent is critical to staying competitive. By investing in a diverse workforce, the broader Australian economy will benefit.

Over the past two decades, employment of Indigenous Australians in the minerals industry increased from 0.5 per cent to a national average of 6 per cent based on 2011 Census data.20

As part of this, the number of

Indigenous women in mining has increased markedly.

Research drawing on Census data and additional studies found that women account for 20 per cent of the total Indigenous workforce across a number of mine sites.21

MCA member companies are proactively working to improve the gender balance in the industry’s workforce.

Active strategies to reduce the structural and cultural barriers that limit female participation have seen an increase in female employment to around

15 per cent in 2013, up from an estimated 9 per cent in 1999. Some MCA member companies achieve 25 per cent female workforce participation at certain sites.22

Industry has adopted a range of initiatives to further build on this record. These include scholarships to promote female participation such as the Australian Institute of Company Directors (AICD) and tertiary-based BHP Billiton-MCA women in engineering scholarships.23

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SOME MCA MEMBER COMPANIES ACHIEVE 25 PER CENT FEMALE WORKFORCE PARTICIPATION AT CERTAIN SITES.


Wellbeing is critical to the health and safety of employees and their workplaces.

NSW Hunter Institute for Mental Health, the Newcastle Institute for Energy and Resources and University of Newcastle, with the support of mining companies and ACARP, are undertaking comprehensive research into mental health and the Australian minerals industry.

‘Ensuring everyone in the mining industry can openly have a discussion about being mentally well, not just focusing on mental ill-health, has been

paramount,’ says Tom Palmer, Chair of the MCA’s Health and Safety Committee.

‘The research aims to understand the key drivers affecting the mental health and wellbeing of our workforce. Once these facts are established targeted interventions can be undertaken. In the meantime, a blueprint for the industry has been developed.

‘Our industry now has a road map to ensure we can all proactively focus on maintaining our mental wellbeing, as well as dealing with those times when one of our own becomes unwell.’

Industry blueprint The blueprint is accompanied by the Make a Difference pocket guide to help supervisors identify and support at-risk employees.

AN INDUSTRY-WIDE PARTNERSHIP FOR HEALTH AND WELLBEING

Our industry now has a roadmap to ensure we can all proactively focus on maintaining our mental wellbeing.

The industry takes the health, safety and wellbeing of its workforce seriously

The minerals industry’s number one value and commitment is the safety and health of its workforce, where everyone who goes to work returns home, safe and healthy.

The industry has set itself the goal of becoming free of fatalities, injuries and diseases for its growing, diverse and increasingly mobile workforce.

Despite the complexities of managing mine sites, Safe Work Australia data shows the minerals industry’s safety performance has improved over recent decades. In the five years from 2007-08 to 2011-12, the industry accounted for 2 per cent of all serious workers’ compensation

claims and the incidence rate of serious claims fell 51 per cent from 2000-01 to 2010-11.24

Fatalities on mine sites in 2013 accounted for 4 per cent of total Australian workplace fatalities that year. Although this was equal to arts and recreation and lower than other major industries, it is too many and zero harm is the objective.25

That fatalities and serious injuries still occur underlines the need for an uncompromising focus on threats to workforce safety. The industry recognises that leadership, systems, people, culture and behaviour – backed by robust regulation – underpin safe workplaces.

The minerals industry’s commitment to the safety of its workforce includes mental wellbeing.

In September 2015, the MCA launched a national blueprint for mental health in the mining industry recognising that support for workers in remote environments and their families is a priority for the industry.

The Blueprint for Mental Health and Wellbeing outlines a broad based framework for best practice models, goals and strategies for the promotion of health, prevention of mental health problems and response to those in need.

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SAFE WORK AUSTRALIA DATA SHOWS THE MINERALS INDUSTRY’S SAFETY PERFORMANCE HAS IMPROVED.

TOM PALMER

Our challenge was to develop a partnership that would support people beyond the gates of their workplace. MICHAEL GOLLSCHEWSKI

Changing the conversation to tackle mental healthThe feeling of social isolation and lack of communication are key factors that contribute to poor mental health – particularly in remote and regional communities.

Rio Tinto and community arts group, DAADA Inc, in Western Australia launched the FIVE project in 2013, which uses artistic and cultural approaches to break down the stigma associated with mental health and promote prevention and early intervention.

Artist Alex Mickle created the RESILIENCE sculpture working with local mining and residential communities. Banded iron formation stone from Rio Tinto’s Paraburdoo mine was cut and polished over many meetings with employees and community members.

‘Our challenge was to develop a partnership that would support people beyond the gates of their workplace, build connections and raise awareness around mental health,’ says Michael Gollschewski, Rio Tinto’s Pilbara Mines Managing Director.

FIVE is just one of Rio Tinto’s mental health initiatives across Australia, which include a ‘Mates in Mining’ suicide prevention program in New South Wales and similar peer support programs in Western Australia.



Skills and trainingThe minerals industry invests more in training than the all-industries average

A world-class workforce begins with investment in education, training and professional development.

In 2011-12 the Australian minerals industry spent almost $1.15 billion on training, or 5.5 per cent of total payroll, five times more than relevant government benchmarks.26

A 2013 survey by the National Centre for Vocational Education found 80 per cent of Australian mining employees participated in structured training and 75 per cent of mining operators offer at least one nationally recognised training program.27

The industry funds a vast range of training activities such as pre-employment programs, work experience internships, university scholarships, employee tools and training materials and grants, equipment for local TAFEs, and curriculum development in universities and schools.

Over 65 per cent of Australian minerals companies surveyed were employing trainees and apprentices. 20 per cent were older than 21 years old, classifying as mature-age, while almost 15 per cent were women.

This commitment to training has resulted in the industry having a high proportion of skilled workers with 63 per cent having a Certificate III qualification or higher, compared with 58 per cent for all industries.

Working in partnership with Orica, the Australian Academy of Technological Science and Engineering (ATSE) is introducing science and technology education to hundreds of schools.

The Science and Technology Education Leveraging Relevance (STELR) Project has been launched in more than 460 high schools across Australia and exposed 35,000 students to science, technology, engineering and mathematics (STEM) education since 2009.

‘The primary aim of STELR is to address the problem of low participation rates in science and mathematics at the upper secondary school level,’

says Peter Pentland, ATSE’s Education Executive Manager.

‘Teachers have told us that STELR students are more aware of what is involved in STEM careers and the study pathways necessary to gain access to industries such as mining.’

In 2014 Orica donated $450,000, plus its staff’s expertise, to a new three-year partnership. This will focus on the Pilbara region and take STELR’s unique hands on, inquiry based learning across the Asia Pacific region.

The STELR module is typically run for a term and is recognised as part of the Australian curriculum science framework.

Spearheading science and technology education in schools

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35,000 STUDENTS AT 460 HIGH SCHOOLS ACROSS AUSTRALIA BENEFIT FROM THE STELR PROJECT ANNUALLY.

Science in schools Hands-on learning is helping address low participation rates in science and maths.Image courtesy: Orica


The minerals industry is building a world-class workforce

All of our current and future trainee intakes will be placed with host employers in their home communities or in other places where they’ve indicated they’re happy to work. GARRY HUGGON

The minerals industry makes a significant financial contribution to Australia’s higher education sector to ensure a high quality supply of Australian graduates.

The MCA-operated Minerals Tertiary Education Council (MTEC) has contributed $40 million to support the continued teaching of mining-related tertiary courses since 1999. MTEC engages with 17 Australian universities to build capacity in higher education through national collaborative programs in the core disciplines of mining engineering, metallurgy and minerals geoscience.28

The MCA-supported Minerals Industry National Associate Degree (MINAD) project has developed two new associate degree programs in mining engineering and minerals geoscience. These degree courses enable existing minerals industry employees to upskill into paraprofessional and professional roles, providing career advancement opportunities for individuals while improving overall workforce skills and capacity.

Industry investment in minerals related teaching and learning at participating universities

was $11 to $13 million in 2013-14 alone. In 2015, MTEC committed to investing a further $3.1 million in higher education consortiums.29

Over 4,300 graduates have benefitted from industry investment in MTEC supported programs since 2000.

Some 85 per cent of all four- year trained mining engineers, 100 per cent of four-year trained metallurgists and 64 per cent of four-year trained minerals geoscientists come from these programs.

To support the transition from university to the workforce, MCA members provide paid vacation work and structured practical experience to more than 600 undergraduates from a wide range of disciplines each year at an annual cost that exceeds $6 million in wages alone.

Major minerals companies also have structured graduate programs that support individual career development and personal growth.

2015 is the final year of production, process and shipping for MMG Ltd’s Century Mine in Queensland.

Century has provided training and jobs to more than 900 Indigenous people at the mine and port facility over the mine’s life.

The training program, which has taken many forms over the mine’s 17 years of operation, was updated in 2014 to better suit trainees’ ambitions and to adapt to the end of mining at Century.

‘All of our current and future trainee intakes will be placed with host employers in their home communities or in other places where they’ve indicated they’re happy to work. This means that talent stays in the

Keeping local jobs after mine closures

community,’ says Century’s Trainee Program Coordinator, Garry Huggon.

In the past, most traineeships and apprenticeships were directly mining related. As the mine prepares for closure, trainees and apprentices are being prepared for other opportunities.

Century supervises and pays the wages of the trainees who work in a variety of jobs suited to the individual, including civil construction, business administration in a local library, diesel fitting and childcare.

Local talent Indigenous trainees are equipped with the skills they need for future opportunities.Image courtesy: MMG Ltd

2013-14 industry investment in related teaching and learning

programs at participating universities by industry

$11m-13mINDUSTRY FUNDING

have benefited from industry investment in MTEC since 2000

4,300GRADUATES

partner with MTEC to deliver training in the core disciplines of mining engineering, metallurgy and minerals geoscience

17UNIVERSITIES

Learning the ropes Industry investment in education and training produces highly skilled, work-ready graduates.

Image courtesy: Anglo American

The Minerals Tertiary Education Council (MTEC) has contributed $40 million to tertiary minerals disciplines since 1999.



Indigenous partnershipsThe agreements made between industry and Indigenous communities can deliver socio-economic benefits

“The Mabo case, the Native Title Act and engagement with the mining industry have changed the assumptions of that (welfare dependent) paradigm and catapulted Aboriginal people engaged in the mining industry into the mainstream economy.

I have worked at mine sites and witnessed this extraordinary change ... Mining offers many Indigenous populations a significant source of employment and contracting opportunities, as well as an alternative to the welfare transfers upon which many remote and regional Aboriginal communities depend.”35

Professor Marcia Langton AM

More than 60 per cent of minerals operations in Australia have neighbouring Indigenous communities.30

The minerals industry’s approach to working with Indigenous communities is founded in mutual respect and the recognition of Indigenous Australians’ rights in law, interests and special connections to land and waters.

Much of the land on which the minerals industry seeks to operate is subject to legal requirements under the Native Title Act 1993 and state and territory land rights, environmental management and cultural heritage protection requirements. These frameworks are supported by the minerals industry.

On areas of land for which there is a weak or absent suite of legal rights, the industry engages with communities as key stakeholders, thereby recognising their historical and cultural connections. Mining companies seek to work with communities from the outset to establish good working partnerships.

The minerals industry’s long-standing approach to agreement-making with Traditional Owners is based on the principle that communities most impacted by mining operations should most benefit through leveraging of economic activity associated with mineral wealth to drive their social and economic growth.31

Mining on Aboriginal land contributes more than a billion dollars a year to the Northern Territory economy and accounts for 80 per cent of the Territory’s income derived from mining.32

Central Land Council

The process of negotiating more than 1,984 land use agreements, of which 99 per cent involved no legal contest of rights, has provided unprecedented wealth creation for Indigenous people in regional and remote Australia.33

The total value of native title related payments (covering land access related payments, mining royalty equivalents, heritage payments, and impact benefit agreement payments) in 2011-12 alone was estimated at $3 billion, with assets in Indigenous trusts from mining activity valued at $40 billion in total.34

Assets in Indigenous trusts collected from mining activity

$40bASSETS HELD

Image courtesy: BHP Billiton

Native title related payments from the minerals industry in 2011-12

$3bLAND PAYMENTS


Agreement-making between companies and traditional custodians doesn’t just focus on land access and related payments but also ensures appropriate cultural heritage and environmental management.

A commitment to a shared partnership and responsibility for cultural heritage occurs from proposal planning to closure management and rehabilitation.

Toro Energy Limited has been engaged with the local community from the outset of its proposal to develop Western

Australia’s first uranium mine on the traditional lands of the Wiluna ‘Martu’ people.

The community and Toro have been working together for eight years to develop the foundation for a negotiated mining agreement.

The Wiluna people have been supported by the company to appoint their own anthropologist to map cultural heritage across the project area. This work identified areas of significance to the Wiluna people that Toro has agreed to protect from mining.

‘The old men are happy that

Toro will keep away from their sites. There is a long way to go, but at least the men who are responsible for that area have been able to sit down and talk about that country on behalf of the Wiluna mob and be listened to and be involved in decisions about that country,’ says Darren Farmer, spokesman for the Wiluna senior lawmen.36

Toro and the Wiluna people are in the advanced stage of their mining agreement negotiation and the company is looking to complete its environmental assessment by mid-2016.

Community-led cultural heritage management

... the men who are responsible for that area have been able to sit down and talk about that country on behalf of the Wiluna mob. DARREN FARMER

Cultural heritage Working with the ‘Martu’ people outside Wiluna in Western Australia. Image courtesy: Toro Energy


Employment of Indigenous men and women in mining doubled from 2006 to 2011.37

For full-time Indigenous workers, the average all-industries annual income in remote mining areas in 2014 was 35 per cent higher compared to remote non-mining areas.

Employment opportunities involve mining operations but also land management and rehabilitation, particularly through ranger programs.

The skills training supported by mining companies can provide Indigenous communities the capacity to build the services they need.

A core focus for the industry is the development and retention of its Indigenous workforce.

Companies invest in Indigenous pre-employment programs, internships, scholarships and institute training materials as well as career upskilling.

In 2014, the Business Council of Australia found the mining industry was leading the way in Indigenous employment.38

ANU research in 2013 and 2014 also confirms the mining industry plays a role in the intergenerational development of communities.

ANU research found that ‘Indigenous involvement in mining [has] substantially increased as a percentage of all Indigenous employment and is now closer to the percentage of mining employment for overall Australian employment.’39

Indigenous employment has steadily grown

2014 was the 10th anniversary of the landmark Argyle Participation Agreement (APA) between Rio Tinto and the Traditional Owners of the mine, the Gija and Mirriuwung peoples.

The APA set a new benchmark in Australia for land use agreements between mining companies and Traditional Owners. It created income streams for future generations of local Indigenous people, as well as significant training, employment and business development opportunities. These benefits extend into the broader east Kimberley, contributing to sustainable regional development.

The APA gives a voice to Indigenous people in mining decisions affecting their interests and is overseen by a Traditional Owner relationship committee, comprising 26 Traditional Owners and four

Celebrating 10 years of the Argyle Participation Agreement

Argyle representatives. Argyle recognises rights to visit country and Traditional Owners regularly access fishing and hunting areas on the mine lease.

The Argyle Diamond Mine itself is located on a sacred women’s site and senior Indigenous women continue to have a significant leadership role in the operation of the mine.

APA was regarded as a landmark Indigenous land use agreement at the time of signing and is still regarded

as such, given the sense of partnership and engagement involved in the relationship between Argyle and the Traditional Owners.

The Argyle lease covers over 50 Indigenous heritage sites, with a further 25 close to the lease boundary. Argyle recognises that the APA needs to provide the strongest possible protection for these sites and the Traditional Owners have identified that Argyle’s current operations need no further clearance from them.

Setting the benchmark Celebrating 10 years of the APA at Argyle Diamond Mine in Western Australia. Images courtesy: Rio Tinto


An upskill program is preparing 20 local Indigenous people for employment associated with exploration activity near MMG’s operation at Borroloola in the Northern Territory.

Borroloola-based Indigenous business, Pandanus Development Group (PDG), recognised that exploration activity in the area would create a need for qualified field assistants.

The six week training program designed by PDG with industry and government input began with an induction hosted by MMG Ltd at their regional camp.

‘I am impressed by the level of

support and commitment given by MMG Ltd not only in regards to employment opportunities but also for access to pre-employment medicals and the on-site induction to kick start participant training,’ says PDG Chief Executive Officer, Daniel Mulholland.

MMG Ltd and TECK Australia have committed to employing the participants as field assistants during their 2015 field exploration programs – providing work opportunities as well as important experience.

PDG and its partner ECB Training will provide ongoing mentoring to help participants transition into employment.

Indigenous business leading upskilling

From school to skills with the Graham ‘Polly’ Farmer Foundation

Upskilling locals Training a local workforce at

Borroloola, Northern Territory. Image courtesy: MMG Ltd

The Graham (Polly) Farmer Foundation’s Follow the Dream Program supports Aboriginal and Torres Strait Islander school students to complete year 12 in order to access higher education or training for employment.

BHP Billiton Olympic Dam in South Australia, Mt Arthur Coal in Queensland and BHP Billiton Western Australia Iron Ore support the program that delivers after school tuition, individual mentoring support and case management in cooperation with schools in their communities.

BHP Billiton Western Australia

Iron Ore works closely with the Foundation in Perth, Port Hedland and Newman.

In Port Hedland and Newman alone, 119 students have graduated since 2014. Of these students, 26 per cent enrolled in university, 50 per cent went on to TAFE, a traineeship or an apprenticeship, and 22 per cent were directly employed after program graduation. Currently 319 students are participating in the Foundation’s Western Australian programs.

‘Education is the ultimate gift in life and BHP Billiton Iron Ore, in partnership with the Graham (Polly) Farmer Foundation, is

committed to providing an education legacy: one where all young people are able to access a quality education and meaningful careers,’ BHP Billiton Iron Ore President, Jimmy Wilson, says.

Follow the Dream is now successfully operating in 26 communities across South Australia, the Northern Territory, New South Wales and Western Australia. In total, more than 731 Aboriginal and Torres Strait Islander students have successfully graduated since the end of 2014 and 1,100 Indigenous students are currently enrolled.

Half of the 2014 Port Hedland and Newman graduates went on to TAFE, a traineeship or apprenticeship

50%FURTHER TRAINING

[We’re] committed to providing an education legacy: one where all young people are able to access a quality education and meaningful careers.

JIMMY WILSON

Total Aboriginal and Torres Strait Islander students to graduate since the end of 2014

731GRADUATES


The Tjuntjuntjara community has traditional links to the lands in which the Tropicana mine is located, 330 kilometres north east of Kalgoorlie in Western Australia. Tropicana is owned and managed by AngloGold Ashanti Australia Ltd (70 per cent) and Independence Group NL (30 per cent).

A collaborative project initiated by the community to reinforce community culture and heritage continues to grow in popularity.

Tjuntjuntjara community leaders came together in 2012 to integrate the making of traditional wood sculptures, called Punu, using small axes and files, into the education of their children. This has culminated in workshops and exhibitions in Kalgoorlie and Fremantle including anthropological recordings by the Museum of Western Australia. Punu have an important cultural and artistic place in the community.

To facilitate a permanent future for this cultural heritage, AngloGold Ashanti donated funds to establish a wood workshop at the school in 2014 which is also open to the community. The workshop combines cultural teachings with practical skills in health and safety, literacy and numeracy education.

Now, the Tjuntjuntjara Punu Project fulfils a cultural component on the community’s school curriculum.

‘This project is strongly aligned to AngloGold Ashanti’s community engagement strategy to focus on cultural preservation and youth education,’ says Mike Erickson, Senior Vice President, AngloGold Ashanti Australia.

Passing on community traditions to future generations

Cultural heritage Tjuntjuntjara residents working on their wooden sculptures as part of the Punu Project supported by AngloGold Ashanti Australia Ltd.Image courtesy: Lou Allerton


Regional developmentLocal business shares the benefits of mining Australia-wide

The mining industry is a significant catalyst of economic activity across Australia’s regions. The industry’s presence in communities supports local business and provides local jobs.

The mining supply chain covers a range of sectors and services from equipment supply and maintenance to food catering, medical needs, transportation, accommodation and housing.

The industry’s direct and indirect contributions to local communities are spread throughout states.

Annual research found the minerals industry purchased $9.6 billion worth of goods and services from approximately 8,202 local businesses across New South Wales in 2014. The Hunter recorded the highest direct expenditure at $5.9 billion, followed by Sydney ($3.3 billion) and the Illawarra ($1.5 billion).40

Minerals companies in New South Wales paid $2.9 billion in wages and salaries to approximately 21,516 full-time equivalent residing employees including contractors, representing an average salary level of $134,258 across the sector in 2013-14.

The flow-on impacts from the minerals and energy sector to

other industries in Queensland are significant.

The sector’s output is extensive, with the manufacturing industry benefiting the most in 2013-14 at $10.2 billion, followed by transport, postal and warehousing ($8.1 billion), construction ($8 billion), financial and insurance ($7.1 billion), and professional, scientific and technical services ($6.5 billion).41

In 2014-15, minerals and energy companies in Queensland purchased $24.7 billion worth of goods and services from 24,400 local businesses across the state. It was also found that the sector directly supports 937

community organisations.42

The economic dividends derived from mining are substantial and shared across regions and local communities.

The value the Australian mining industry brings to regional economies remains strong. Mining companies’ procurement of Indigenous services was valued at $2.2 billion in 2011-12 alone.43

The industry’s leadership in procurement has been recognised by the Aboriginal and Torres Strait Islander Social Justice Commissioner, Mr Mick Gooda, who noted in December 2014 that ’... you’ve got mining companies leading the way’.44

supplied goods and services to the minerals industry in NSW in 2014

8,202LOCAL BUSINESSES

were purchased by mining companies in NSW in 2014

$9.6bGOODS & SERVICES

paid to 21,516 full-time NSW employees in 2014

$2.9bWAGES & SALARIES

A snapshot of how mining benefited small businesses across NSW in 2014:

NSW



The BHP Billiton Mitsubishi Alliance’s (BMA’s) Local Buying Program provides opportunities for small businesses, with fewer than 25 full-time employees, to competitively supply goods and services to BMA/BMC (BHP Billiton Mitsui Coal) in Queensland’s Bowen Basin.

The program, which began in June 2012, invites suppliers to register their capabilities on a website, which is then accessed by BMA to source and procure items locally.

By the end of March 2015, 641 local businesses were registered and a total of 4,294 opportunities had been made available.

More than 6,500 full and partial payments valued at $46 million had been made to local suppliers, with an average payment time of 10.8 days.

A portion from each transaction is allocated to a community foundation, which builds local business capability through industry training and development.

Supporting local small business

Our objective is to build a positive, sustainable future for our business and our host communities.


It wasn’t just the locals but the people moving here, realising there wasn’t childcare and having to leave again,

but Rio Tinto could see the problem and wasn’t prepared to just sit back and let it happen.


TANYA CANNIFFE


The industry boosts incomes and jobs, attracts families and increases services

The mining industry’s investment in communities has led to improved income, consumption, services and development in regional economies. The capacity built in communities remains, even after the closure of mines.

Mining has driven growth in both the resident and commuting worker populations in regional Australia.

Activity from mining has generated improved outcomes – debunking myths about fly-in fly-out’s negative impacts on regions.

Research by KPMG in 2013 found that the industry stimulated employment in

local communities, translating to higher incomes and education than the regional Australian average.45

Regions where mining is present have experienced a higher proportion of families than non-mining regions and higher full time employment than the regional Australian average. Mining regions have also had a threefold increase in high income earners and higher rates of year 12 completions than the regional average.

Long distance commuting can facilitate the distribution of higher incomes, and consequently wellbeing, more broadly across Australia...in

the absence of geographic labour mobility, high demand regions would experience localised inflation and would not reach their potential output, while low demand regions would experience higher unemployment than they would otherwise.

Productivity Commission46

As a result of the growth in population and workforce the industry brings to regions, there is an increase in the purchasing of local property, demand for and consumption of household goods, and community infrastructure such as schools, hospitals and supermarkets.

“

“

MINING REGIONS HAVE HIGHER RATES OF YEAR 12 COMPLETIONS THAN THE REGIONAL AVERAGE.

Funding regional childcare services to tackle shortages and support local families

Growing tourism, mining activity and regional developments were making it almost impossible to find a childcare place in Gladstone, Queensland.

A predicated shortfall of 200 to 300 child care places by 2018 and the need for an extra 12 day care facilities by 2031 inspired Rio Tinto to take action.

‘Rio Tinto has operated in Gladstone for 50 years so we could see the challenges our own staff were facing in the lack of childcare spots,’ says Tanya Canniffe, Rio Tinto’s Here for Childcare Program Coordinator.

‘In some respects it would have been easy to just build one or two day care centres and say job done. However, that would have competed with private providers and would not have

addressed the need for broader, deeper skills and training needs.’

‘It wasn’t just the locals but the people moving here, realising there wasn’t childcare and having to leave again, but Rio Tinto could see the problem and wasn’t prepared to just sit

back and let it happen,’ says Councillor, Maxine Brushe from Gladstone Regional Council.

In March 2012, Rio Tinto launched its Here for Childcare initiative providing a range of financial incentives, training support and scholarships

to local people interested in entering the childcare sector.

The quality and availability of childcare have already improved. There are 140 new family day care places and almost 40 locals upskilled for employment opportunities with new providers.

Childcare services Rio Tinto’s Here for Childcare program supports local centres. Image courtesy: Rio Tinto


Investing in communities Leading the way in community development

Australian mining companies invest heavily in local community infrastructure.

As a large employer and industry presence in regional and remote locations, companies typically provide an array of support.

Contributions often include donations to local health services and infrastructure provision, such as housing, roads and small business development, as well as support and sponsorship of community sporting teams, schools and other fundraisers.

Australian mining companies dedicated $34.7 billion to community contributions in 2011-12 alone.47 As part of this, $91.9 million was invested in community infrastructure and services (schools, libraries, museums, financial systems, educational systems and healthcare).

Companies spent $37.1 million on education and training for non-employees (mining engineering scholarships, literacy for children in foster care or small business development training), and

$40.7 million was directed to other community investments (such as health, aged and disability programs; and support for local farming, agriculture and sporting events).

Mining company employees often provide in-kind support for local business development such as pro-bono assistance (e.g. accounting services), mentoring for local trainees and matching gift programs for community causes.

Industry investment in community infrastructure and services, such as schools, libraries, museums, financial systems, education and healthcare in 2011-12.

$91.9mCOMMUNITY INFRASTRUCTURE

Image courtesy: MMG

For more than 85 years the Royal Flying Doctor Service (RFDS) has been supporting regional communities in need of urgent medical care – a lifeline for farmers and miners.

Rio Tinto is the single largest non-government supporter of the RFDS in Western Australia, contributing $22.5 million in a partnership that extends to 2021.

RFDS and Rio Tinto have created a state-of-the-art, flying intensive care unit – one of the fastest, most comprehensively outfitted aero medical retrieval services in Australia.

Rio Tinto’s support means the RFDS can invest in four new Pilatus PC24 jet aircraft (known as the Rio Tinto Life Flight Jets) which can fly faster and further than the existing Hawker 800XP jet.

‘These jets can travel twice as far as our existing PC12 turbo prop aircraft in half the time and unlike other jets can land and take off from dirt airstrips and be operated by a solo pilot,’ says RFDS CEO, Grahame Marshall.

‘Many lives had already been saved as a direct result of the Rio Tinto Life Flight Jet and the extended commitment

from the company will further increase the Flying Doctor’s capacity with the introduction aircraft.’

‘The health and safety of our people and the sustainability of our local communities lie at the heart of everything we do at Rio Tinto,’ says Rio Tinto Chief Executive Iron Ore, Australia, China & Korea, Andrew Harding.

Since the first Rio Tinto Life Flight Jet came into service in 2009, almost 1,500 patients have been evacuated – 72 per cent from remote locations in Western Australia’s Kimberley and Pilbara regions and 14 per cent from Australia’s Indian Ocean Territories.

Royal Flying Doctors Service flying higher and faster

The health and safety of our people and the sustainability of our local communities lie at the heart of everything we do. ANDREW HARDING



Commemorating the service and sacrifice of local men and women in World War I

BHP Billiton has actively participated in the development and advancement of Australia, including during war time ... we are proud of our contribution. ANDREW MACKENZIE

The Newcastle Memorial Walk in the Hunter Valley, New South Wales, commemorates the 100th anniversary of the ANZAC landing at Gallipoli in 1915, linking local residents with their ANZAC heritage while providing a spectacular new tourism asset for the region.

The walk features steel silhouettes of soldiers inscribed with almost 4,000 family names of Hunter Valley men and women who enlisted during World War I.

BHP Billiton donated $3 million of the $4.5 million cost of the 450 metre long cliff top walk that provides unparalleled views of the coastline, city and Hunter Valley. It also commemorates the 100th anniversary of

the commencement of the Newcastle steelworks.

‘Since the establishment of the Broken Hill Proprietary Company in 1883, BHP Billiton has actively participated in the development and advancement of Australia, including during war times.

‘We are proud of our heritage and our contribution to the Australian community,’ BHP Billiton CEO, Andrew Mackenzie, says.

BHP Billiton also honoured the contribution of service men and women through a donation of $10 million from the BHP Billiton Foundation to the Anzac Centenary Public Fund and a $1 million contribution to the Australian War Memorial to support the redevelopment of the First World War Galleries.

“

“

STEEL SOLDIERS ARE INSCRIBED WITH ALMOST 4000 NAMES OF HUNTER VALLEY MEN AND WOMEN WHO ENLISTED DURING WORLD WAR I.

Honouring the ANZACs Newcastle Memorial Walk, above and below, the steel silhouhettes of soldiers that feature. Images courtesy: BHP Billiton


The industry’s investment in community development ranges from Australia-wide programs to community- based initiatives.

Local programs can often go unnoticed but make a material difference to townships, residents and their future beyond mining.

Connection to and care for communities is demonstrated through company support tailored to needs. Initiatives centre on people and local partnerships which positively contribute to livelihoods and long-term growth.

Minerals companies are part of the community in which they operate

““COMPANY SUPPORT IS TAILORED TO LOCAL NEEDS.

The Queensland Youth Orchestra (QYO) is enjoyed across Queensland thanks to ongoing support from Peabody Energy.

QYO is a world-class youth orchestra with 470 members aged from 8 to 24 in seven orchestras and ensembles.

QYO’s partnership with Peabody commenced in 2006 and led to the development of the Peabody QYO Regional Concert Series in which QYO students tour regional communities to perform and participate in workshops with local school students.

More than 20,400 people attended QYO performances in 2014 as part of a 13 day regional concert and tour

program involving 140 QYO musicians from two chamber orchestras and a symphony orchestra. The musicians performed at nine venues, before 230 local school students, 25 host families, Peabody employees and community members.

‘The response from the audiences and local musicians was incredible,’ says David Law who this year conducted the musicians in Music Magic.

’The local music teachers do a fantastic job in these towns and we are so pleased to be able to rehearse and perform alongside the local school students on stage in front of their families and the local community.

‘One of the many highlights of our tour was the standing ovation we received from the audience at our final night concert in Moranbah,’ he says.

The Peabody QYO Regional Concert Series enriches regional music education for students, teachers and communities.

‘Peabody invests in partnerships where it can make a measurable, positive difference in the energy of a community – like in partnership with QYO,’ says Charles Meintjes, Peabody’s President, Australia.

Promoting music education

Queensland Youth Orchestra A unique partnership bringing music to the regions. Image courtesy: Peabody Energy


This industry makes a difference to people and communities.It invests money, pays taxes and provides jobs. It underpins global living standards and lifts people out of poverty. And, it has done so for many generations – and with increasing degrees of sophistication.THE HON. GARY GRAY AO MP | SHADOW MINISTER FOR RESOURCES


Rob and Shelley Kirkpatrick, and their son Jarrad, live in a property that backs on Mandalay Resources’ gold-antimony mine in Costerfield, outside Bendigo in Victoria.

The family lost everything when a faulty wood heater caused their house to burn down.

The Kirpatrick’s distress was added to by the delays in clearing the site for rebuilding. When Mandalay’s General Manager, Andre Booyzen, discovered the block hadn’t been cleared, he arranged for a skip to be delivered and mine employees spent their Saturday clearing the block.

On another occasion, within half an hour of noticing 20,000 bricks for the new dwelling in the family’s driveway, Mandalay employees arrived with a forklift and moved the bricks to where they were needed, saving Rob and Shelley the task of moving them by hand.

Mandalay also provided the family with two Apcos accommodation units, free of charge, while they re-built.

‘Mandalay has been amazing, just amazing. They have just made our lives so much easier and helped us out so much when we didn’t know what to do,’ Shelley says.

Helping a neighbour recover from fire

The benefits derived from now owning the bus can’t be measured ... the bus is essential to our work here. WAYNE GRIFFITHS

A mini bus is a crucial link in the early education of Indigenous children in Gunnedah, north west New South Wales.

The Winanga-Li Aboriginal Child and Family Centre provides play group and pre-school for local Indigenous families.

The centre also brings together a range of family, early childhood and health services for the region, catering for 35 children from birth to eight years of age and their families.

Whitehaven Coal donated $40,000 to Winanga-Li to purchase the mini bus, which had previously been leased.

‘This is a very kind and generous donation and the benefits derived from now owning the bus can’t be measured,’ says Aboriginal Elder and Winanga-Li Centre Manager, Wayne Griffiths.

‘We are very grateful to Whitehaven Coal for this support as the bus is essential to our work here.’

‘We believe that the best way we can help to improve the lives of local Indigenous people is by offering the opportunity of stable, long-term employment and by supporting access to education from kindergarten through to university and mature age,’ Whitehaven Coal Chief Executive Officer and Managing Director, Paul Flynn says.

Practical support for education

A good neighbour Mandalay Resources stepped

in to help the Kirkpatrick family after fire destroyed their home

near Bendigo in Victoria.

Making a difference A mini bus is making a difference in the lives of Indigenous children in Gunnedah, New South Wales. Image courtesy: Whitehaven Coal

Source: The McIvor Times, 30 July 2015


Scientific understanding, technologies and community expectations are constantly changing and this has been matched by substantial progress in the industry’s environmental performance over the past few decades.


Protecting the environmentThe Australian minerals industry is a global leader in science-based, responsible and accountable environmental management.

The Australian minerals industry is a global leader in responsible, accountable, science-based environmental, management.The minerals industry’s footprint in the landscape is small with mine disturbed land accounting for only 0.1 per cent of Australia’s landmass.48

In recent years, the mining industry has accounted directly for about 9 per cent of GDP – even higher when related activity is included.49 The small area utilised by the Australian industry represents one of the nation’s highest value land use activities.

The mining industry’s success is achieved in a highly regulated environment but also through its adoption of leading practice beyond what is required by government.

This commitment to operate in a sustainable manner has been formalised in a number of voluntary industry frameworks internationally and nationally. Many Australian companies commit to principles developed

with the International Council for Mining and Metals (ICMM). Companies also report their performance using benchmarks such as the Global Reporting Initiative. These approaches are incorporated in company policies and practices.51

Furthermore, top Australian producers are members of the MCA which includes a commitment to Enduring Value – The Australian Minerals Industry Framework for Sustainable Development, which reflects ICMM principles.52

These frameworks also commit companies to continuous improvement in environmental performance.

Scientific understanding, technologies and community expectations are constantly changing and this has been matched by substantial progress in the industry’s environmental performance over the past few decades. Australia’s expertise is renowned with the industry working closely with research organisations on innovation and knowledge transfer.

“Australian companies have developed globally leading practices and protocols to cover all stages of the sustainable mining process.These standards being used in Australia are being increasingly adopted across the world.” 50

Austrade

“By applying our strengths in process science and engineering, and mathematical, environmental and social sciences we are helping Australia to shape its future and be a global leader in the stewardship of mineral resources.” 53

CSIROImage courtesy: Rio Tinto

Mine disturbed land accounts for just 0.1 per cent of the Australian land mass.

0.1%FOOTPRINT


Australian mining is serious about environmental stewardship

The mining industry acknowledges its land use impacts.

Industry access to land and water is regulated across all three levels of government and the minerals industry is subject to more regulatory requirements than most (if not all) other economic activities.54

Environmental stewardship begins many years before mining takes place. Major development approval processes involve comprehensive environmental, cultural and social impact assessments all of which require extensive stakeholder engagement. Development approvals for new or greenfield mines can take up to five years to obtain.

Most approvals are granted at the state level, however, federal approval under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) is often needed.

Other state, federal and local government authorisations include native title and Indigenous land use agreements, tenure and mining leases, water licenses, road and rail access, dangerous goods and local council approvals.

During a mine’s operation, the company complies with environmental regulations using a mix of on-site environmental monitoring and improvements, investment in environmental offset programs, research and conservation, as well as ensuring land is rehabilitated during and after operations.

Many companies voluntarily implement environmental

management and conservation programs in excess of government requirements as part of their commitment to the communities in which they operate and in which their employees live.

Planning for environmental management during operation and post-closure is undertaken well before mining commences. These plans must be approved by the government regulator during a proposal’s assessment for development approval.

Mining operations are required to monitor and measure their performance against set criteria on a regular basis. The results are regularly reviewed by

regulators and in some states a panel comprising members of the public.

Performance reporting is typically made publicly available and subject to frequent auditing. Companies usually engage external specialists to undertake this work.

The minerals industry’s commitment to the environment goes beyond its own operations, with companies providing funding and logistical support to organisations engaged in environmental projects locally but also in regions removed from mine operations.

“

“

PLANNING FOR ENVIRONMENTAL MANAGEMENT DURING OPERATION AND POST-CLOSURE IS UNDERTAKEN WELL BEFORE MINING COMMENCES.

Image courtesy: Glencore

The minerals industry is subject to more water and land use regulatory requirements than most

(if not all) other economic activities.



Bush Blitz expeditions protecting Australia’s biodiversity

Australia is home to more unique plants and animals than any other country, yet only a quarter of this biodiversity is known to science.

To help improve this knowledge Earthwatch Australia joined with BHP Billiton Sustainable Communities and the Australian Government to develop and implement Bush Blitz which has seen Australia’s top scientists working closely with local land managers and Traditional Owners since 2010.

In the past five years Bush Blitz research expeditions across Australia have discovered more than 900 new species, located another 250 that are known to be threatened species and recorded 12,000 types of plants and animals in areas where they were previously unknown.

Bush Blitz expeditions increase the scientific knowledge needed to protect Australia’s biodiversity for generations to come. Research findings are shared with property and reserve managers to ensure they have the knowledge to better protect these species into the future.

‘BHP Billiton supports a range of initiatives around the world that make a positive contribution to the environment and benefit the broader community. This unique partnership combines BHP Billiton’s commitments to biodiversity, environment

and the communities in which we operate,’ says Dean Dalla Valle, BHP Billiton Chief Commercial Officer.

‘It is a highly regarded professional development opportunity for our people where they learn survey techniques for a wide variety of species, and by the end of the expedition they have a broader understanding of Australia’s unique biodiversity and ecosystems.’

New species This year’s Northern Territory Bush Blitz turned up a new tarantula species. Image courtesy: BHP Billiton

BHP Billiton supports a range of initiatives that make a positive contribution

to the environment.


Mining accounts for less than 3 per cent of Australia’s water consumption. This is compared with agriculture (65 per cent), households (9.4 per cent) and manufacturing (2.7 per cent).55

The industry is one of the highest value add water users in Australia. In 2012 -13 the minerals industry delivered around $155 million of GVA per gigalitre (GL) of water used compared to $23 million per GL for forestry and $2 million per GL for agriculture.56

The Australian minerals industry supports the principles of the National Water Initiative. Like other water users, mining operations in areas with water sharing plans acquire water access entitlements and operate according to their water allocation.57

The industry’s water use and discharge are regulated and monitored by the states over the life of a mining operation.

The industry’s landmark water accounting framework is used by companies to better manage their water use. The framework benchmarks water use between operations to improve management and efficiency.

The industry accounts for its water use, re-use and recycling

It also assists companies to categorise water quality and communicate water information to stakeholders.58

Mining operations seek to utilise low quality water not suitable for other industrial uses (including hyper-saline waters and primary-treated sewage) and to maximise the reuse efficiency of each water unit on site.

Between 2011-12 and 2012-13, mining industry water consumption dropped by 9 per cent despite an almost 10 per cent increase in production volumes for the same period.59

Water conservation pays off at Mt Isa ... and gives local parks and reserves a healthy boost

Long term water security is essential to the community of Mount Isa and Glencore’s Mount Isa Mines (MIM) operations. Located in north western Queensland, Mount Isa’s region is semi-arid with hot summers and variable annual rainfall.

Since 2013, MIM has invested over $3 million in water conservation initiatives and $1.6 million on improving water quality in site – reducing freshwater consumption

by 50 per cent across MIM’s operations as well as recycling 80 per cent of all water used on site.

Glencore works collaboratively on water management with other users and local agencies to preserve Mount Isa’s precious water resources.

As part of the Glencore Community Program North Queensland, the company donated $75,000 to the City Council to establish three water bores for local parks to

The industry delivered $155 million GVA per gigalitre of water used in 2012-13

$155mVALUE ADDED

Mining accounts for less than 3 per cent of Australia’s water use

3%WATER USE

Water wise Efficient water use and re-use is a critical function of modern mining. Image courtesy: Rio Tinto


Arid Recovery is a conservation research initiative based in the South Australian outback dedicated to the restoration of Australia’s arid lands.

Established in 1997, the program is a partnership between BHP Billiton’s Olympic Dam mine and South Australian agencies in response to the extinction since European settlement of 60 per cent of native mammal species that used to inhabit the region.

Native plants and animals are protected in a 123 square kilometre fenced reserve. Foxes, cats and rabbits have been removed from 60 square kilometres of the reserve, which provides an area of complete protection for the reintroduction of locally extinct mammals including the Greater Stick Nest Rat, the Burrowing Bettong, the Greater Bilby and the Western Barred Bandicoot.

Arid Recovery demonstrates how mining, the pastoral industry, tourism and conservation organisations can work together to achieve mutually beneficial ecological outcomes and help increase understanding and adoption of sustainable land management techniques.

‘As a foundation supporter of Arid Recovery, Olympic Dam continues our support in recognition of the wonderful outcomes that the team delivers. BHP Billiton is proud to partner with Arid Recovery as a leading example of how conservation and mining can exist side by side,’ says Jacqui McGill, Asset President Olympic Dam.

Water conservation pays off at Mt Isa ... and gives local parks and reserves a healthy boost

Restoring arid landscapes

conserve town water supply and improve community use.

‘The benefits this will bring to the social and physical health of our residents and sporting groups will be immeasurable,’ says the Mayor of Mount Isa, Tony McGrady.

MIM and the council also partnered in 2014 to raise community water conservation awareness through a community campaign to encourage water saving habits for workers, residents and families.

Making a difference Water conservation initiatives funded by Glencore restored

drought-affacted parks and reserves in Mt Isa. Image courtesy: Glencore

Arid Recovery Locally extinct animals are being

reintroduced to a protected reserve in the South Australian outback.


JACQUI McGILL

Arid Recovery is a leading example of how conservation and mining can exist side by side.

Companies undertake rehabilitation progressively during the life and closure of the mining operation.

Rehabilitated land Monitoring the rehabilitation

area near Dawson mine dump station in Queensland.



Industry progressively rehabilitates land from the outset

Rehabilitation planning and management is a crucial part of the mining lifecycle and is undertaken in consultation with regulators and the community.

Rehabilitation plans are science-based, meticulous and multi-faceted; monitoring impacts on insects to plants, water and animals.

Companies undertake rehabilitation progressively during the life and closure of the mining operation. This is in line with government requirements and leading industry practice.

Australian mining companies demonstrate international leadership in mine rehabilitation practice.

Well-planned rehabilitation can deliver real and lasting commercial and community benefits by making previously mined land available for other activities or community use.60

With modern rehabilitation techniques mining activities can successfully coexist with a range of other land uses including agriculture and nature conservation.61

“

“

WELL-PLANNED REHABILITATION CAN DELIVER REAL AND LASTING COMMERCIAL AND COMMUNITY BENEFITS.

Around 962 hectares of land was rehabilitated in the Upper Hunter Valley in 2013 – that’s more than 80 per cent of land disturbed by coal mining that year.62

Mine lifecycle Coal & Allied’s alluvial lands rehabilitation in the Hunter Valley is the first trial of its kind in New South Wales and demonstrates that alluvial land used for mining can be rehabilitated to match the crop production levels of nearby farms.Images courtesy: Rio Tinto

Post operationPre-operation

During operation


A safe, reliable energy providerAustralia is a safe, reliable supplier of energy and minerals to our trade partners

The global demand for energy continues to grow, particularly among Australia’s trading partners in Asia. Asian economic expansion will underpin continuing coal demand, not only in China and India but also Japan, Korea, Taiwan, and the fast developing countries of Southeast Asia.

The International Energy Agency (IEA) projects that world primary energy demand will increase by 21 per cent between 2013 and 2030. There is more coal-fired electricity in the investment pipeline than any other type and the IEA projects that coal will remain the largest single source of electricity generation.

In 2030, coal is expected to fuel 10,235 terrawatt hours of electricity (31 per cent of global generation) – nearly twice as much as hydro, four times more than wind and eight times more than solar.63 The IEA also projects nuclear power generation to increase by 89 per cent in the New Policies Scenario and 161 per cent in the 450 Scenario by 2040.64

Australia’s official energy forecaster has reasoned that ‘there is no single energy option that will allow a country to

meet all of its growth and environmental objectives’.65

As a reliable supplier of high quality resources, Australia is well placed to meet a significant share of this increasing global demand and play a central role in energy poverty reduction.

Between 1990 and 2010, 1.7 billion people secured access to electricity for the first time. More than 1.27 billion people secured electricity powered by fossil fuels, compared to 65 million people who accessed electricity from renewable energy sources.66

This means 19 people gained access to energy from fossil

Safe, reliable energy Australia is a globally recognised supplier of high quality resources. Stock image

fuels for every one person who secured access from renewable energy sources.

A further 1.3 billion people who currently have no access to energy and another 2 billion people who have only limited access will be looking to coal and uranium to facilitate development.

The IEA projects the global coal trade will grow by 40 per cent by 2040.

Australia will provide almost half of that growth in coal demand, lifting its market share from 27 per cent to 33 per cent of seaborne trade.67

“

“

WORLD ELECTRICITY DEMAND IS FORECAST TO GROW 69 PER CENT OVER THE NEXT TWO DECADES.


Waste gas from Anglo American’s Moranbah North and Capcoal underground coal operations in Queensland provides enough clean energy to power nearly 100,000 homes.

Coal seam methane gas occurs naturally as part of the mining process. Anglo American’s options were to either vent the gas to atmosphere and flare it or harness it to produce energy.

By partnering with Energy Developments Ltd, they were able to produce 45 megawatts of electricity from the waste gas. In December 2012, an expansion of the existing Capcoal waste coal mine

gas power station came on line, generating a further 13 megawatts of electricity at the plant.

‘We are providing a natural source of electricity that would otherwise be wasted and complementing the existing Queensland power supply,’ says Anglo American’s Regional Manager for Infrastructure, Energy and Carbon, Scott McEwan.

‘Taking the new expansion into consideration, the combined environmental benefit from the two power stations is a reduction in greenhouse gas emissions of 3 million tonnes of CO2 equivalent per annum.’

Turning waste into clean power

We are providing a natural source of electricity that would otherwise be wasted ... and reducing greenhouse gas emissions by 3 million tonnes of CO2 per annum. SCOTT McEWAN

Clean power Harnessing waste gas from Moranbah North and Capcoal mines in Queensland. Image courtesy: Anglo American


The minerals industry is investing in a low emissions future

The industry is investing in technology to reduce emissions in the mining and use of minerals and metals.

New technology – including high efficiency, low emissions (HELE) generation plants – is achieving carbon dioxide (CO2) emissions reductions of up to 40 to 50 per cent per watt of electricity compared to existing fleets of plants.68

Supercritical and ultrasupercritical boilers operate at high temperatures and pressures, improving the efficiency of coal-fired power generation. Increasing the efficiency of coal-fired power plants by 1 per cent reduces CO2 emissions by 2 to 3 per cent.

HELE supercritical and ultrasupercritical plants typically emit 20-25 per cent less CO2 than the average of existing power stations. Queensland’s Kogan Creek Power Station is Australia’s fourth supercritical coal-fired plant with the capacity to provide energy to a million homes using less water and producing lower emissions than older plants.

The Australian coal industry supports HELE power plant development in its trading partner economies. Across

Asia, 670 new generation (HELE) coal-fired power generation units are in operation with an additional 672 gigawatts of capacity (1,066 HELE units) planned.

The IEA’s Clean Coal Centre has estimated this technology is reducing CO2 emissions by 479 million tonnes a year and this would increase to 1.1 billion tonnes of CO2 when 1,066 new units come on line.69

Another important area of focus for low emissions technology is carbon, capture and storage

(CCS). The Intergovernmental Panel on Climate Change has forecast that global solutions to climate change without CCS will be 138 per cent more costly than other options.70

In Australia, coal companies have committed $300 million under the COAL21 Fund to partner with the Australian Government to investigate geological storage, methane abatement in coal mines and research, development and demonstration of CO2 capture as a contribution to the international effort.71

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EFFICIENCY IMPROVEMENTS TO COAL-FIRED POWER PLANTS ARE DELIVERING MEANINGFUL REDUCTIONS IN CO2 EMISSIONS.

Achievable with high efficiency, low emissions (HELE) plants.

EMISSIONS REDUCTIONIntegrating carbon capture and storage (CCS) with HELE technology

90%EMISSIONS REDUCTION

The extra cost of any global solution to climate change without CCS

138%COST WITHOUT CCS

Industry R&D contribution to reduce emissions

$300mCOAL21 FUND

¬40%

¬ ¬



The nature of this demonstration plant is to examine the opportunities and challenges that exist with introducing alternative power sources into an existing electrical network. SCOTT McEWAN

Solar added to power mix at Weipa

Rio Tinto has adopted renewable energy as part of the power mix at its Weipa Bauxite Mine in Queensland.

Weipa is a remote mining community 580 kilometres by air from Cairns built by Rio Tinto (previously Comalco) in the1960’s to house its mining workforce. Today, Weipa has a population of over 2,000 and is the regional hub of the Western Cape hosting many businesses and government services.

Rio Tinto owns and operates two diesel power stations which supply power to the mine, Weipa township, such as the airport and golf

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IT IS EXPECTED THAT THE PV FACILITY WILL SAVE UP TO 600,000 LITRES OF DIESEL EACH YEAR.

course, and the neighbouring Indigenous community of Napranum. It also powers community facilities including the hospital, supermarket, local schools, shops and government services.

Rio Tinto, First Solar and the Australian Government Renewable Energy Agency reached a joint agreement in 2014 to develop a 1.7 MW solar photovoltaic (PV) facility at Weipa.

The solar farm will provide power to the mine, processing facilities as well as the Weipa community.

‘The nature of this demonstration plant is to examine the opportunities and challenges that exist with introducing alternative power sources into an existing electrical network,’ says Weipa General Manager, Gareth Manderson.

It is expected that the PV facility will save up to 600,000 litres of diesel each year. In the middle of the day, electricity generated by the solar farm will offset up to 20 per cent of existing diesel-generated electricity.

Powered by the sun Renewable energy will power some operations at Weipa Bauxite Mine in Queensland. Image courtesy: Rio Tinto


World-leading innovationThe industry’s R&D spend exceeds one tenth of total business investment

Australia’s minerals industry has increased its R&D activity substantially over the last decade. It accounts for more than one tenth of all Australian business R&D investment.72

In 2013-14, the minerals industry spent $1.8 billion on research and development (R&D)

– 10 per cent of total business R&D spending in Australia.73

As well as being central to the industry’s economic

performance, the industry’s R&D investment has resulted in innovations that are vital to mining’s environmental and social responsibilities.

New R&D is focused on low emissions technologies and energy efficiency measures and integrating operational needs with the commitment to sustainable development.

Partnerships with higher education providers including

“Innovation has made our operations safer and more productive.” 74

Andrew Mackenzie Chief Executive Officer BHP Billiton

the Rio Tinto Centre for Mining Automation at the University of Sydney, the world-leading Centre of Excellence in Ore Deposits (CODES) at the University of Tasmania, and BHP Billiton’s significant investment towards establishing a new engineering zone at the University of Western Australia.

Mt Arthur Coal is the largest individual open cut mine in the Hunter Valley, New South Wales. It is also home to the world’s quietest trucks.

Sound supression features developed by Mt Arthur Coal in collaboration with equipment manufacturers have significantly reduced operational site noise for nearby residents and landowners.

Excavation equipment is fitted with sound absorbing panels

throughout the engine bay, deck area and inside the counterweight. Similar sound suppression is fitted on Mt Arthur Coal’s diesel electric haul trucks.

An 84 per cent reduction in noise (for a stationary vehicle) has been achieved.

Mt Arthur Coal has also designed and constructed the world’s first noise testing facility to test new and existing equipment under a range of operational conditions.

Mt Arthur Coal is leading the way with the world’s quietest trucks



Internationally leading technology to protect drivers and operators from fatigue has been developed by the Australian mining industry, universities and the Australian government through the Coorperative Research Centre Mining Program (CRCMining).75

SmartCap is a wireless system of sensors built into a baseball cap that measures driver/ operator drowsiness which is displayed on a monitor in the cab. By tracking brainwaves (EEG), the worker is made aware of their levels of fatigue and impairment during operation.

Major mining companies implementing the technology

have found the risk of fatigue related safety incidents is being reduced. Alarms ring in the cab before micro-sleep events occur to improve driver/operator alertness.

AngloAmerican Metallurgical Coal and ACARP, along with 13 industry partners have supported the development of this technology over a number of years (starting in 2008), including successful trials at mine sites in Queensland involving haul trucks, excavators, dozers, graders and water trucks.

The SmartCap is now being considered and adopted by other sectors such as maritime, defence, aviation, and transport and logistics.

Australian ingenuity to fight fatigue

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THE RISK OF FATIGUE RELATED INCIDENTS IS BEING REDUCED

Image courtesy: SmartCap

Innovative radar technology is saving lives across the globe

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GROUNDPROBE IS CREDITED WITH SAVING 20 LIVES IN ITS FIRST YEAR OF COMMERCIAL USE AND DETECTING MORE THAN 500 WALL COLLAPSES BEFORE THEY COULD OCCUR.

World leading radar technology developed in Australia to monitor the stability of open cut mine slopes and walls has saved numerous lives.76

Stemming from a University of Queensland PhD project, with support from ACARP and two Australian Government Cooperative Research Centres, GroundProbe technology was established in 2001.

It is credited with saving 20 lives in its first year of commercial use and detecting more than 500 wall collapses before they could occur.

Strategically positioned radars

detect and pre-emptively warn of slope instabilities through an alarm system protecting the safety of mine personnel.

More than 200 radars are being used in 24 countries.

After several years of trials, an enhanced system was announced in mid-2015.

The new antenna technology – a first for the industry – scans a pit 180 degrees every two minutes to sub-millimetres. This provides high resolution monitoring separating earth movement from mine induced movement, further enhancing operational safety.

Image courtesy: GroundProbe


Mining’s manufacturing and services sector is a resilient success story

The mining industry is a major driver of industry development and innovation in Australia. The METS sector estimated in 2013 that it contributed more than $90 billion to the Australian economy annually.77

The rise of the METS sector has multiplied and diversified the benefits Australia derives from its natural resource endowment. The growth of a home-grown sector has spread the benefits of the mining boom across Australia and particularly to the domestic manufacturing industry.

Australian METS exports and offshore sales accounted for a third of the sector’s income in 2012, making it one of the most internationalised Australian sectors. Export revenues from the METS sector

substantially exceeded those from the wine industry.78

Many of Australia’s thriving METS companies are based in our larger cities and towns, creating thousands of jobs in manufacturing and service industries. METS companies also provide a significant boost to government revenues outside the direct and significant taxation contribution from commodity exporters.

Australia’s resources boom sparked a quiet revolution in mining equipment, technology and services with the sector growing roughly five-fold over the last 15 years.79

Although the sector has seen a decline in revenue since 2013, a 2015 Austmine report has reinforced that the sector is

‘highly resilient as firms are involved in several phases of the mining lifecycle’. The report also found that 68 per cent of firms are investing in R&D and 66 per cent are exporting, demonstrating that the Australian sector is globally focused.80

The scale and importance of Australia’s METS sector contradicts the idea that mining is a low-tech enterprise. The wider constellation of mining-related research and innovation organisations, and the links between them, have been characterised as dynamic minerals innovation. This is an area of international strength in the national innovation system, not well-recognised compared to the perception of mining as a commodity industry.

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A HOME-GROWN METS SECTOR HAS SPREAD THE BENEFITS OF THE MINING BOOM TO THE DOMESTIC MANUFACTURING INDUSTRY.

Emergency training Innovation continues to drive advances in health and safety at mine operations across Australia. Image courtesy: Glencore

The growth of a home-grown METS sector has spread the benefits of the mining boom across Australia and particularly

to the domestic manufacturing industry.

Image courtesy: Newmont Mining

METS firms have a strong global focus, with more than half exporting products and services

66%METS EXPORTS

The METS sector estimated contribution to the Australian economy in 2012

$90bMETS CONTRIBUTION

More than two-thirds of METS firms invested in R&D in 2013-14

METS R&D78%


Local discovery promises to drive down energy consumption at mine sites – and scoops the Prime Minister’s Prize for Innovation


World-leading Australian technology to process ore could reduce mining operations energy consumption by 15 per cent and earn Australia an extra $100 billion in exports.81

Heralded as a new disruption to the global mining industry, esteemed chemical engineer Professor Graeme Jameson AO has been awarded the 2015 Prime Minister’s Prize for Innovation for the NovaCell.

The University of Newcastle Professor has revolutionised ‘froth flotation’ first used in Broken Hill in the 1860s.

When ore is ground, it is liquefied into a thick mixture for processing. Bubbles rise through the mixture carrying

to the surface ultra-fine and valuable minerals (which are composites in the ore).

Professor Jameson enhanced this technology in the 1980s by inventing smaller and fizzier bubbles, known as the Jameson Cell.

More than 300 units (or tanks) are used world-wide to process not just ore but also coal and metals. This technique cost $65,000 to develop but has retrieved fine export coal particles worth $36 billion.

Now, Professor Jameson has again revised this technology by introducing the NovaCell. The NovaCell uses larger bubbles than the Jameson Cell to capture bigger grains, potentially

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THIS TECHNIQUE COST $65,000 TO DEVELOP BUT HAS RETRIEVED FINE EXPORT COAL PARTICLES WORTH $36 BILLION.

reducing mine operations energy use by 15 per cent. In the case of ore, the technology can halve the effort needed to finely grind (or mill) ore, which is typically required of 20 per cent of ore processed.

‘This whole thing, innovation and discovery, is an amazing catalyst ... it keeps people like me going,’ says Professor Jameson.

Professor Jameson’s technology can be applied in areas beyond mining. The Jameson Cell is used in environmental management practice to remove blue green algae from water.

It is anticipated the NovaCell will be trialled at an Australian mine over the next three years.

World-leading innovation Professor Graeme Jameson in his lab at the University of Newcastle. Image courtesy: University of Newcastle


Tax transparencyMining companies are paying four times more tax than before the boom

Mining companies are some of Australia’s largest corporate tax and royalties payers. Tax rates on profits faced by mining companies are higher than the all-industries average according to Australian Tax Office (ATO) data.

Mining’s average effective company tax rate was 27 per cent in 2012-13, which is well above the all industries average of 23 per cent.82 State mineral royalty payments have also risen sharply over the last decade from $2 billion in 2004-05 to almost $10 billion in 2013-14.83

The total taxable ratio (e.g. corporate tax and royalties) was 53 per cent in 2012-13. In other words, more than half of every dollar of profit made by the minerals sector is paid to the federal government in company tax and to state governments in royalties.84

Mining companies pay 21.1 per cent of all company tax paid in Australia, but comprise less than one per cent of all companies liable for company tax. This equated to $13.6 billion in company tax in 2012-13.85

The minerals industry (excluding oil and gas) paid $156 billion in federal company tax and state and territory royalties between

2004-05 and 2013-14.86 In addition to company tax and state royalties, the minerals industry also pays a number of other taxes, charges and levies to federal, state and local governments. These include payroll tax, property taxes and stamp duties, and various local government charges.

Revenues to government are also paid as taxes on mining employees’ salaries and wages. Mining industry employees pay much higher than average income tax due to their relatively high wages.

More than half of every dollar of profit in 2012-13 was paid to governments

53%TAX TAKE RATIO

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MORE THAN HALF OF EVERY DOLLAR OF PROFIT IS PAID IN COMPANY TAX AND ROYALTIES.

Paid by the industry between 2004-05 and 2013-14

$156bTAX & ROYALTIES



Australian minerals companies are leaders in tax transparency

The MCA and mining companies are strong advocates of the Extractive Industries Transparency Initiative (EITI) which facilitates country-by-country reporting of revenues, disclosure of organisational structures and anti-corruption and anti-bribery measures.

Established in 2002, the EITI is an international standard implemented in 48 countries that aims to ensure transparency in the management of government revenues derived from the extraction of natural resources by organisations.87

It seeks to build community confidence in the strength of governance frameworks, financial systems and anti-corruption measures by promoting accountability.

The Australian minerals industry voluntarily funded and piloted

the EITI in Australia from 2011 to 2014 as part of the Multi-Stakeholder Group comprising industry, civil society and government agencies.

David Bradbury, then Assistant Treasurer in the Gillard Government, now head of tax at the OECD, singled out the mining sector in 2013 as a market leader on tax transparency.

The pilot’s independently audited report completed in 2015 found that the payments made by industry and reported by government reconciled to a high degree of accuracy.88

In March 2015, Shadow Assistant Treasurer Andrew Leigh commended Australian mining companies for being ‘industry leaders’ in transparency.90

“Many listed companies, including some of the largest mining companies should be commended for already disclosing a vast array of information about the tax they pay and their tax affairs…

This [the EITI] is another area where Australia’s mining industry is taking a world-leading role.”89

David Bradbury Head of Tax, OECD(Then Assistant Treasurer, Gillard Government 2013)

EITI reporting requires publication and verification of company payments and government revenues from the extractive (oil, gas and minerals) industries. Australia is one of the longest and largest supporters of the EITI globally having committed $18.45 million to its development since 2006.91


In training Young Yuendumu community men training to become diesel mechanics for employment opportunities at Newmont Mining’s Tanami Mine in the Northern Territory. The Mt Theo Mechanics Training Workshop (established in 2007 by the Walpiri Youth Development Corporation and supported by Newmont Mining) also provides mechanical repair services to the local community. Image courtesy: Newmont Mining


1 Department of Industry, Innovation and Science, Resources and energy quarterly – September quarter 2015, Australian Government, Canberra, 2015

2 J Frydenberg, ‘Speech to the international conference on coal science and technology’, MCA conference on coal science and technology, Melbourne, 30 September 2015

3 P Downes , K Hanslow & P Tulip, The effect of the mining boom on the Australian economy, RBA research discussion paper no. 2014-08, Reserve Bank of Australia, Melbourne, 2014


5 Australian Bureau of Statistics, Labour force, Australia, detailed, quarterly – August 2015, catalogue no. 6291.0.55.003, ABS, Canberra, 2015; Australian Bureau of Statistics, Average weekly earnings, Australia – May 2015, catalogue no. 6302.0, ABS, Canberra, 2015; Port Jackson Partners, Iron ore: The bigger picture, MCA, Canberra, 2015



8 Australian Bureau of Statistics, Research and experimental development, businesses, Australia, 2013-14, catalogue no. 8104.0, ABS, Canberra, 2015

9 Australian Trade Commission, Mining equipment, technology and services, Australian Government, Canberra, 2014 <http://www.austrade.gov.au/mets/> viewed 9 September 2015; Austmine, Australia’s new driver for growth – Mining equipment, technology and services, Austmine, Sydney, 2013

10 Minerals Council of Australia, Geographic labour mobility: Submission on the Productivity Commission’s issues paper, MCA, Canberra, 2013

11 Minerals Council of Australia, MCA 2015-16 pre-budget submission, MCA, Canberra, 2015

Endnotes

12 Banarra, The value of community contribution in the Australian minerals industry: A report for the Minerals Council of Australia, MCA, Canberra, 2013

13 Australian Bureau of Statistics, 2011 Census, ABS, Canberra, 2012

14 Australian Workforce and Productivity Agency, Resources sector skills needs 2013: Report to the Australian Government, Australian Government, Canberra, 2013


16 Australian Workforce and Productivity Agency, Future focus – National workforce development strategy, Australian Government, Canberra, 2013 [references to ‘mining’ for statistical purposes will in many cases include oil and gas extraction, in line with industry-wide data from the ABS]

17 Australian Bureau of Statistics, Average weekly earnings, Australia – May 2015, catalogue no. 6302.0, 2015, ABS, Canberra

18 Minerals Council of Australia, Geographic labour mobility: Submission on the Productivity Commission’s issues paper , MCA, Canberra, 2013

19 Australian Bureau of Statistics, Labour force, Australia, detailed, quarterly – August 2015, catalogue no. 6291.0.55.003, ABS, Canberra, 2015

20 Calculations based on 2011 Census data 21 M Langton, From conflict to cooperation,

MCA, Canberra, 2015; J Parmenter & D Kemp, Indigenous women and mining employment in Australia, Centre for Social Responsibility in Mining, The University of Queensland, Queensland, 2007


23 Minerals Council of Australia, Gender diversity white paper – Summary document, MCA, Canberra, 2014

24 Safe Work Australia, Mining industry fact sheet, SWA, Canberra, 2013

25 Minerals Council of Australia, 2014 annual report, MCA, Canberra, 2014


27 National Centre for Vocational Education Research, Training and education activity in the minerals sector, MCA, Canberra, 2013

28 Minerals Council of Australia, 2014 annual report, MCA, Canberra, 2014


30 Department of Industry, Innovation and Science, Working with Indigenous communities – Leading practice sustainable development program for the mining industry, Australian Government, Canberra, 2007

31 Companies’ negotiations with traditional owners for agreements on the access and use of their land including the protection of heritage on approved tenements. Agreements determine the conditions for which the land can be used, how it is managed and the payments for use.

32 Central Land Council, Agreements on Aboriginal land: Mining and development, CLC, Northern Territory, viewed 9 September 2015 <www.clc.org.au>

33 T Bauman & L Glick (eds), The limits of change: Mabo and native title 20 years on, AIATSIS, Canberra, 2012


35 M Langton, The quiet revolution: Indigenous people and the resources boom, Harper Collins, Australia, 2012

36 Central Desert Native Title Services, Media statement, CDNTS, WA, 29 May 2012, viewed 9 September 2015 <http://www.centraldesert.org.au/wp-content/uploads/2015/03/120529_Media_Statement_re_Toro_Proposed_Uranium_Mine.pdf>

37 M Langton, From conflict to cooperation, MCA, Canberra, 2015

38 Business Council of Australia, 2014 Indigenous engagement survey report, BCA, Canberra, 2014; Minerals Council of Australia, MCA 2015-16 pre-budget submission, MCA, Canberra, 2015


39 M Gray, B Hunter & M Howlett, The economic impact of the mining boom on Indigenous and non-Indigenous Australians, CAEPR working paper no. 39/2014, Centre for Aboriginal Economic Policy Research, ANU, Canberra, 2014; M Gray, B Hunter & M Howlett, Indigenous employment – A story of continuing growth, CAEPR working paper no. 2/2013, Centre for Aboriginal Economic Policy Research, ANU, Canberra, 2013

40 University of Wollongong, NSW mining industry economic impact assessment 2013-14, NSW Minerals Council, Sydney, 2014

41 Lawrence Consulting, Economic contribution of the minerals and energy sector to the Queensland economy 2013-14, QRC, Brisbane, 2014

42 Queensland Resources Council, Queensland resources sector: Economic contribution (2014-15), QRC, Brisbane, 2015, viewed 9 September 2015 <https://www.qrc.org.au/01_cms/details.asp?ID=3466>

43 A Forrest, The Forrest review – Creating parity, Australian Government, Canberra, 2014; Minerals Council of Australia, MCA 2015-16 pre-budget submission, MCA, Canberra, 2015

44 A Burrell, ‘Marcia Langton lashes out at future fund silence’, The Australian, 2 December 2014

45 KPMG, Analysis of the changing resident demographic profile of Australia’s mining communities, MCA, Canberra, 2013; A Hoath & FH McKenzie, The socio-economic impacts of long distance commuting (LDC) on source communities, Co-operative Research Centre for Remote Economic Participation, Curtin Graduate School of Business, Perth, 2013

46 Productivity Commission, Geographic labour mobility, Productivity Commission, 2014

47 Banarra, The value of community contribution in the Australian minerals industry: A report for the Minerals Council of Australia, MCA, Canberra, 2013

48 State of the Environment Committee, Australia’s state of the environment 2011: Independent report to the Australian Government Minister for Sustainability, Environment, Water, Population and Communities, Australian Government, Canberra, 2011


50 Australian Trade Commission, Australia – sustainable mining, Australian Government, Canberra, 2013, viewed 9 September 2015 <https://www.austrade.gov.au/ArticleDocuments/1418/Australia-Sustainable-Mining-2013.pdf.aspx>

51 International Council on Mining and Metals, Sustainable development framework –10 principles, ICMM, London, 2003, viewed 9 September 2015 <https://www.icmm.com/our-work/sustainable-development-framework/10-principles>

52 Minerals Council of Australia, Enduring value – the Australian minerals industry framework for sustainable development, MCA, Canberra, 2015, viewed 9 September 2015 <http://www.minerals.org.au/leading_practice/enduring_value>

53 CSIRO, Responsible mineral development, CSIRO, Canberra, 2015, viewed 9 September 2015 <http://www.csiro.au/en/Research/MRF/Areas/Community-and-environment/Responsible-resource-development>

54 URS, Update of National Audit of Regulations Influencing Mining Exploration and Project Approval Processes – Prepared for the Minerals Council of Australia, MCA, Canberra, 2013

55 Australian Bureau of Statistics, Water account, Australia, 2012-13, catalogue no. 4610.0, ABS, Canberra, 2013

56 Industry gross added value (IGVA) is a measure of the value of industry production. With respect to water use, it represents the total value of industry production divided by the total amount of water used. Accordingly, IGVA represents the value derived for a given industry for a given unit of water used and allows for different sectors to be compared.

57 Department of the Environment, Intergovernmental agreement on the National Water Initiative, Australian Government, Canberra, 2004, viewed 9 September 2015 <http://www.environment.gov.au/topics/water/australian-government-water-leadership/national-water-initiative>

58 Minerals Council of Australia, Water accounting framework for the minerals industry, MCA Canberra, 2014, viewed 9 September 2015 <http://www. minerals.org.au/leading_practice/ water_accounting_framework_for_ the_australian_minerals_industry>

59 Bureau of Resources and Energy, Resources and energy quarterly – March quarter 2014, Australian Government, Canberra, 2014

60 Minerals Council of Australia, Land stewardship policy, MCA, Canberra, 2012, viewed 9 September 2015 < http://www.minerals.org.au/file_upload/files/resources/MCA_Stewardship_Policy_2012.pdf> International Council on Mining and Metals, Mining and biodiversity good practice and guidance, ICMM, London, viewed 9 September 2015 <http://www.icmm.com/page/1182/good-practice-guidance-for-mining-and-biodiversity>

61 Minerals Council of Australia, Towards closure: Mine rehabilitation in the Australian minerals industry, MCA, Canberra, 2015

62 NSW Minerals Council, Rehabilitation reporting, NSWMC, Sydney, 2015, viewed 9 September 2015 < http://www.nswmining.com.au/dialogue/rehabilitation-reporting>

63 International Energy Agency, World energy outlook 2014, IEA, Paris, 2014

64 Department of Industry, Innovation and Science, Resources and energy quarterly – June quarter 2015, Australian Government, Canberra, 2015; International Energy Agency, ‘Data table: Intended nationally determined contributions scenario’, Energy and climate change: World energy outlook special report (last updated 15 June 2015), IEA, Paris, 2015

65 International Energy Agency, World energy outlook 2014, IEA, Paris, 2014


67 J Bishop, ‘Australian national statement, United Nations Framework Convention on Climate Change Conference, Lima, 10 December 2014 [in the IEA’s most aggressive emissions reduction scenario, consistent with the goal of limiting the global increase in temperature to 2C,


fossil fuels will still provide 59 per cent of primary energy in 2040]; R Bryce, Not beyond coal: How the global thirst for low-cost electricity continues driving coal demand, Centre for Energy Policy and Environment, Manhattan Institute, New York, 2014

68 Department of Resources, Energy and Tourism, A cleaner future for power stations, interdepartmental task group discussion paper, Australian Government, Canberra, 2010

69 IEA Clean Coal Centre, HELE perspectives for selected countries, IEACCC, London, 2015

70 International Energy Agency Clean Coal Centre, Upgrading the efficiency of the world’s coal fleet to replace CO2 emissions, IEA, Paris, 2014

71 International Panel on Climate Change, ‘Summary for policymakers’, Climate change 2014: Mitigation of climate change. contribution of working group III to the fifth assessment report of the Intergovernmental Panel on Climate Change, Cambridge University Press, United Kingdom and New York, 2014

72 Australian Bureau of Statistics Research and experimental development, businesses, Australia, 2013-14, ABS catalogue no. 8104.0, ABS, Canberra, 2015; Minerals Council of Australia, MCA 2015-16 pre-budget submission, MCA, Canberra, 2015

73 ibid.74 A Mackenzie, ‘Andrew Mackenzie presents

at Minerals Council of Australia’, MCA Minerals Week 2015, Canberra, 3 June 2015

75 SmartCap, Saving lives is our priority, SmartCap, Australia, 2015, viewed 9 September 2015 < http://smartcaptech.com/saving-lives-is-our-priority/> accessed 19 September 2015

76 Department of Industry, Innovation and Science, Saving lives and profits at GroundProbe, Cooperative Research Centres Programme, Australian Government, Canberra, 2011; GroundProbe, Our company – history, GroundProbe, Australia, 2015 viewed 9 September 2015 <http://www.groundprobe.com/our-company/history>; International Mining, ‘GroundProbe launches SSR-FX broad area slope stability monitoring radar’, International Mining,17 June 2015

77 Australian Trade Commission, Mining equipment, technology and services, Australian Government, Canberra, 2014, viewed 9 September 2015 <http://www.austrade.gov.au/mets/>; Austmine, Australia’s new driver for growth – Mining equipment, technology and services, Austmine, Sydney, 2013

78 D Scott-Kemmis, How about those METS? Leveraging Australia’s mining equipment, technology and services sector, MCA, Canberra, 2013

79 D Scott-Kemmis, How about those METS? Leveraging Australia’s mining equipment, technology and services sector, MCA, Canberra, 2013

80 Austmine, New realities, bigger horizons: Australian mining, equipment, technology and services national survey August 2015, Austmine, Sydney, 2015

81 J Ross, ‘Innovation award for chemical engineer’, The Australian, 21 October 2015; J Sturmer, ‘Engineer Greame Jameson picks up Prime Minister’s science prize for billion-dollar bubbles’, ABC News, 21 October 2015; University of Newcastle, UON researcher awarded Australia’s top innovator, UON, New South Wales, 21 October 2015, viewed 22 October 2015 <https://www.newcastle.edu.au/newsroom/featured-news/uon-researcher-awarded-australias- top-innovator>

82 Australian Taxation Office, Taxation statistics 2012-13, Australian Government, Canberra, 2013, viewed 9 September 2015 <https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Tax-statistics/Taxation-statistics-2012-13/>

83 Deloitte Access Economics, Estimated company tax, MRRT, carbon tax and royalties expenses for the minerals sector: Report prepared for the Minerals Council of Australia, MCA, Canberra, 2014

84 C Richardson, Mining tax ratios revisited, MCA, Canberra, 2015

85 Australian Taxation Office, Taxation statistics 2012-13, Australian Government, Canberra, 2013, viewed 9 September 2015 <https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Tax-statistics/Taxation-statistics-2012-13/>

86 Deloitte Access Economics, Estimated company tax, MRRT, carbon tax and royalties expenses for the minerals sector: Report prepared for the Minerals Council of Australia, MCA, Canberra, 2014

87 Extractive Industries Transparency Initiative, EITI – About, EITI, Oslo, 2015, viewed 9 September 2015 <https://eiti.org/>

88 Multi-Stakeholder Group, Extractive Industries Transparency Initiative: MSG report to government , Australian Government, Canberra, 2015; Department of Industry, Innovation and Science, Resources – Extractive Industries Transparency Initiative, Australian Government, Canberra, 2015, viewed 9 September 2015 <http://www.industry.gov.au/resource/Programs/ExtractiveIndustriesTransparencyInitiative/Pages/default.aspx>

89 D Bradbury, ‘Address to the Minerals Council of Australia’s biennial tax conference’, MCA biennial tax conference, Brisbane, 16 April 2013

90 A Leigh, ‘Innovation and reform: Labor’s multinational tax agenda speech’, MCA taxation conference, Melbourne, 27 March 2015

91 Multi-Stakeholder Group, Extractive Industries Transparency Initiative: MSG report to government , Australian Government, Canberra, 2015; Department of Industry, Innovation and Science, Resources – Extractive Industries Transparency Initiative, Australian Government, Canberra, 2015, viewed 9 September 2015 <http://www.industry.gov.au/resource/Programs/ExtractiveIndustriesTransparencyInitiative/Pages/default.aspx>

This publication is part of the overall program of the MCA, as endorsed by its Board of Directors, but does not necessarily reflect the views of individual members of the Board.

Minerals Council of Australia44 Sydney Ave, Forrest ACT 2603PO Box 4497, Kingston ACT 2604P. + 61 2 6233 0600 E. [email protected]

www.minerals.org.au

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