ANNUAL REPORT 2012/13

The Chamber of Minerals and Energy of PAGES About this report Contents This report provides an overview of CME’s projects and achievements over the twelve About CME 2 month period of April 2012 to March 2013. Our work is structured around five core pillars President’s Report 5 which encompass the industry’s strategy in Chief Executive’s Report 6 reaching its vision. Executive Council 9 People An industry that provides attractive Management Committee 10 career opportunities, develops people’s capacity and enables them to safely meet The Year in Review operational targets. People 14 Communities 17 Communities Innovation 19 A highly valued and strongly supported Infrastructure and Planning 20 member of the community. Natural Resources 24 Public Comment 28 Innovation North West 31 A proactive, capable and responsive industry, East and North East 33 identifying and implementing solutions to Mid West 34 future issues. South West 36 Infrastructure and Planning Kimberley 38 Supporting the development of government Submissions 40 and industry infrastructure frameworks which facilitate continuous improvement and growth Events and Activities 46 in the resources sector and broader community. Our Members 48 Natural Resources An industry that upholds sustainable practices Our Team 51 ensuring an ongoing social licence to operate. Financial Summary 53 There are also projects which are driven by region specific growth and challenges. CME has a strong presence in regional Western Australia; our work in the following key operating areas is highlighted in this report: North West East and North East Mid West South West Kimberley

CME | ANNUAL REPORT About CME

The Chamber of Minerals and Energy of Western Australia (CME) is a persuasive industry voice, adding value to our member companies in a dynamic and increasingly complex operating environment.

CME exists to champion the Western Australian resources sector in reaching its vision to lead the world in sustainable practice through innovation and to underpin Australia’s position in the global economy.

CME strives to achieve this by: leading policy development on issues impacting on the resources sector; promoting the value of the sector to the community; representing the views and advocating the needs of our members; and providing an avenue by which the membership and stakeholders are able to collaborate.

Our member companies generate 95 per cent of all mineral and energy production value and employ 80 per cent of the resources sector workforce in the state. With this extensive industry representation within our membership, our advocacy is well informed and highly regarded. CME’s member companies are the foundation of our operation, their valuable contributions helping build and prioritise our agenda.

Since 1901, CME has grown hand-in-hand with the resources sector, continuing to provide an accessible and effective connection between the industry, community and government at all levels.

PAGES 2 3 Our member companies generate 95 per cent of all mineral and energy production value in the state.

CME | ANNUAL REPORT CME | ANNUAL REPORT President’s Report

Over the past year there has been a strong theme of building and maintaining relationships. The industry has faced many challenges, particularly around operational costs and changes to policies at both state and federal levels. The value CME has offered its members has been in the opportunities to collaborate and to communicate with key decision-makers to enhance their understanding of the resources sector.

This mutual understanding is essential when A key to securing a sustainable workforce CME reached a significant milestone this past discussing the international competitiveness is ensuring competitive and flexible work year, with the highest membership subscription of our industry. CME has spent this past year arrangements are offered. The right model can in its 112 year history. The contribution and actively engaging with stakeholders at all levels enable companies to access a skilled workforce, participation of these member companies to demonstrate the contribution of the resources while bringing social and economic benefits forms the basis of our advocacy and directs sector to both the state and federal economies, to the community. The decision to work and the day-to-day priorities. I have seen first-hand and to ensure the future prosperity of the sector reside in a regional town or work on a fly-in the commitment these companies have to the is not threatened. fly-out basis is a personal one. The industry must industry, and to making Western Australia a continue to look at ways to best support the fantastic place to work and live. Similarly, the At the heart of the sector’s operations is its local community while remaining an attractive support and understanding of the communities in workforce and the health and safety of each career choice for current and future employees. which we operate has been particularly positive. individual. CME’s Occupational Safety and Health portfolio continued work on the proposed CME’s State Growth Outlook was once again I have had the opportunity this past year to national harmonisation of safety and health updated, providing a forecast of demand for participate in a number of CME activities legislation, however this initiative by the federal key growth enablers such as people, water, including travelling to the regional offices to government has hit many obstacles as each energy and infrastructure. The forecast is meet the local members and stakeholders. state has taken a different approach. We will based on the information provided by member I extend my sincere thanks to our members continue to monitor this project to ensure that companies outlining their future developments for the time and energy they have given CME as the legislation is developed, the focus remains and subsequent requirements. The report forms through committee or council participation, on best practice models which are suitable to all a valuable basis to many of CME’s engagements contributing data for our research projects or operating regions across the country. with stakeholders. simply attending events and collaborating with other members. I’d particularly like to thank As the sector is continually challenged in Having discussed international competitiveness, the Vice-Presidents and the broader leadership securing a skilled workforce, CME promotes the it is important to mention the work CME team for their ongoing support and guidance, work of our member companies in building a has done in representing Western Australia’s and the CME staff for their dedication and diverse workforce that is accessible and attractive resources sector on the world stage. CME professionalism in representing this industry. to people from all different backgrounds. Specific has travelled to Germany, France, the United initiatives have included the Women in Resources Kingdom and South Africa, establishing Awards which celebrate the achievements of relationships and identifying opportunities for Greg Lilleyman women in the sector; the Indigenous Leadership business partnerships and further investment in President Program, providing further education to Western Australia. Indigenous individuals with identified leadership potential; and the FastTrack pilot program which assessed the barriers to employment in the resources sector for Indigenous women. PAGES 4 5 Chief Executive’s Report

With a focus on ensuring the views of our members are known and valued by a wide audience of stakeholders, CME has had a busy year.

As the reporting year drew to a close we to proactively present the views of our members Throughout the year we hosted a number of congratulated the Western Australian Liberal to a broad readership. In addition to these regular tours to operations across the state, providing Party on their election win. We are looking articles, CME has been invited to comment on participants with a first-hand look at the forward to continuing to work with both the many industry issues of community interest, resources industry. Members of the Board of Government and Opposition to present the views particularly via radio and printed media. Taxation as well as the Clean Energy Regulator of the Western Australian resources sector and to visited the North West and found it to be a There has been increased dialogue around land provide opportunities for members of parliament valuable and informative experience. access and the sustainable use of our state’s to further their understanding of the industry. natural resources and CME has contributed The Safety and Health Conference will be held At a federal level, as we head towards an election extensively to the Federal Government’s native in April, bringing together industry professionals later this year we will continue to advocate title reform agenda. We have worked extensively for two days of information sharing and learning. the views of the sector. Our focus remains on with members to develop a policy outlining the The conference, along with the Safety and Health maintaining global competitiveness and ensuring principles of engagement, demonstrating the Innovation Awards, are two initiatives CME is very the key decision-makers are well informed when value placed on building long term productive proud of, providing an opportunity to celebrate developing policy affecting our industry. CME relationships with traditional owners. the advancements in safety. The industry recently has long advocated for industry taxation to be accomplished the first fatality free year in more Infrastructure has presented a number of considered with a focus on business certainty and than a century, a significant milestone in the challenges across the state, and with the any changes should be undertaken with full and improvement of safety standards. The sector will anticipated growth of the industry there are a comprehensive industry consultation. remain vigilant and work hard to ensure everyone number of areas requiring immediate response. gets home safe and well. Our advocacy in this area has been strengthened CME has worked closely with various port, by the contribution of our members to projects airport management (in and regionally), We have continued to collaborate with the such as the State Growth Outlook and more and relevant government agencies to address industry bodies in other states with regular recently, the cost of doing business study. CME is these issues. A significant outcome this year was meetings to maintain a shared agenda on also undertaking a significant project to quantify the development of the over size over mass unit, issues of mutual concern. This collaboration the flow-on effect of the industry on the Western which has significantly improved the approval has provided opportunities to learn from the Australian economy. process for the transport of large equipment. experience of other states on particular issues, and share our expertise on others. The results of these reports are used to inform This year I again participated in the Women in our discussions, enabling us to present the Resources Awards judging panel, a challenging This report reviews CME’s major projects over the views of the industry. One avenue for this has role with all nominees demonstrating outstanding past year, some of which have seen significant been my regular opinion editorials in The West contributions to our sector. We received a outcomes; others are still a work in progress. All Australian. I now have the pleasure of also record number of nominations this year, and will of these projects are undertaken to support and contributing regular pieces to many regional continue to build on this in 2014. represent our members, and are driven by the newspapers across the state, a great opportunity input from those companies.

PAGES 6 7 Our advocacy has been strengthened by the contributions I would like to thank CME’s President, Vice Presidents, Executive Councillors and the of our members. broad membership for their leadership and contribution over this past year; I look forward to continuing to work closely with you. The CME team has worked tirelessly to achieve the best possible outcome for industry and to ensure our members are receiving the maximum value from their membership.

Reg Howard-Smith Chief Executive

CME | ANNUAL REPORT CME | ANNUAL REPORT Executive Council

The management and control of the business and affairs of CME are vested in the Executive Council, a board of member company representatives elected annually at the Annual General Meeting.

President Dongy Hua, CITIC Pacific Mining * Brian Watt, Newmont Asia Pacific (represented by Libby Lyons) Greg Lilleyman, Rio Tinto Jim Netterfield, Oakajee Port and Rail * Colin Williams, Cliffs Natural Resources Colin Moffatt, Premier Coal * Robin Antrobus, ConocoPhillips Vice Presidents Penny Walsh, Shell Development Australia * (Australia) Kim Horne, Alcoa of Australia Anthony Cribb, Dampier Bunbury Phil Allsopp, Sinosteel Midwest Graham Ehm, AngloGold Ashanti * Pipeline * (represented by Stuart Corporation (represented by Andrea Maxey) Johnston) Damien O’Reilly, Thiess * Jimmy Wilson, BHP Billiton Iron Ore * Mike Ferraro, Doral Mineral Sands * Greg Hall, Toro Energy Deidre Willmott, Fortescue Metals Group * Peter Bamford, Doray Minerals Jim Walker, WesTrac Tina Thomas, Woodside Energy * Mike Sutton, Downer EDI Mining * Al Coutts, Xstrata Nickel Australasian Gary Sutherland, Flinders Mines * Councillors John Galvin, Georgiou Group Chief Executive Sunil Kulwal, Aditya Birla Minerals Tim Netscher, Gindalbie Metals * (Australia) * Reg Howard-Smith, CME Richard Weston, Gold Fields Australia * Scott Faragher, API Joint Venture* Richard Mehan, Grange Resources * Brian Hahn, ATCO Gas Australia * Directors (Ex-Officio) David Trench, Lanco (represented by Justin Scotchbrook) Damian Callachor, CME Steve Keyser, Leighton Contractors* Ken Brinsden, Atlas Iron Nicole Roocke, CME Ross Carroll, Macmahon Contractors* Paul Harvey, BHP Billiton Nickel West * Jason Cooke, Minara Resources * Pim Doorman, BHP Billiton As of 4 December 2012 Worsley Alumina * (represented by Pierre Malan, Minerals and Metals * Absent from photograph Julius Matthys) Group (MMG) * Brian Reilly, Cameco Australia * Graeme Kininmonth, Moly Mines Peter Fairclough, Chevron Australia * Steve Cowle, Newcrest Mining *

PAGES 8 9 Management Committee

PAGES 10 11 CME’s Management Committee determines the important issues and the agenda of the organisation.

Greg Lilleyman, Jimmy Wilson, Kim Horne, Rio Tinto BHP Billiton Iron Ore Alcoa of Australia

Tina Thomas, Graham Ehm, Deidre Willmott, Paul Harvey, Woodside Energy AngloGold Ashanti Fortescue Metals Group BHP Billiton Nickel West

As of 4 December 2012

CME | ANNUAL REPORT Western Australia’s top commodities (by value) *

Petroleum $23,780M

Gold $9,351M

Alumina $3,951M

CME | ANNUAL REPORT Petroleum $23,780M Iron Ore $61,079M

Nickel $3,717M

* 2011-2012 Financial Year. All figures in Australian Dollars Source: Department of Mines and Petroleum

PAGES 12 13 The Year in Review

People Over the past twelve months CME has collaborated Tyre handling has posed a significant safety risk with potential for significant injuries for with members on a number of workforce issues inexperienced workers. CME members decided from attraction and retention of staff to the the 2005 guideline concerning tyre safety, fires everyday health and safety of the workforce. and explosions also needed to be updated in light of new practices and technology. A working Significantly, the Western Australian Government did not meet the group to update the guideline was formed in Commonwealth Government’s deadline of 1 January 2013 to pass November 2012 before holding a workshop in legislation harmonising safety and health laws. The possibility of passing February 2013. The guideline is being re-written this legislation will be re-visited during 2013. Progress around Australia and is expected to be finalised by mid 2013. saw different states advancing the harmonisation agenda on different This year CME took a strong stance in timetables, and the legislation that has been passed by other state advocating for improvements in relation to parliaments is not identical. This has substantially diluted the original industry management of diesel particulates intention of harmonised legislation, with the administrative benefits which were classified as a class-one carcinogen hoped to be gained from having one set of identical laws now unlikely to by the World Health Organisation in mid-2012. be achieved in the near future. CME will continue to work with those in With extensive consultation through an industry the Western Australian Government drafting the legislation to drive the working group, CME produced a guideline on adoption of best practice safety regulation. While supporting the concept diesel emissions. The working group explored of nationally harmonised legislation, CME has long advocated that such best practice in managing the prevention and legislation would need to represent best practice and be relevant to each mitigation of the effects of diesel particulates on state’s operations. This will continue to be a focus of CME’s interaction with occupational health. The prepared guideline has the State Government. been provided to the tripartite Mining Industry Given the new focus on management principles which underpin the proposed Advisory Committee and the Minister for Mines amendments to workplace safety and health legislation, CME formed a and Petroleum for approval. working group to discuss best practice risk management and formulate CME gave evidence during the year to guidelines on assessing and dealing with principal hazards in the workplace. the Commonwealth Parliament’s Senate As a result, a draft guideline on Principal Hazard Management was produced Education, Employment and Workplace and is being circulated throughout industry for comment. Relations Committee inquiry into the shortage Safety regulators identified this year several updates were required to a of engineering and related employment skills guideline developed by CME in 2004 for the prevention of underground mine at a hearing held in Perth. Securing a skilled fires. In light of new practices and technology, CME facilitated workshops with workforce remains a major challenge for the relevant resource companies and contractors to inform stakeholders of current resources sector, with shortages impacting best practice and developed an updated guideline. project costs and completion times.

PAGES 14 15 Securing a skilled workforce remains

The Resources Industry Training Council (RITC) - a major challenge for a state government funded joint-venture between CME and the Australian Petroleum the sector. Production & Exploration Association - has been working on several key studies and reports over the past 12 months. Initiatives have included research to examine the impacts of automation across the resources sector resulting in identification of a number of factors driving the take-up of automation and the impact the increasing levels of automation would have on workforce requirements. In response to increasing apprenticeship and traineeship demand, an RITC commissioned report made a number of recommendations to improve the system so as to better meet industry needs. The RITC has also been actively advocating for the retention of the dual qualification pathway for electrician licensing in Western Australia. As part of this effort, the RITC prepared a submission in late 2012 to the National Occupational Licensing Authority on proposals for the implementation of national occupational licensing across the electrical occupations. This reporting year also saw the RITC update its Industry Workforce Development Plan for 2012. The plan essentially captured a perspective on workforce development issues across the mining, oil and gas and manufacturing sectors and identified priority action areas.

CME | ANNUAL REPORT The Year in Review

CME | ANNUAL REPORT The Year in Review

Communities Maintaining the industry’s Actively promoting career and employment The establishment of the FastTrack pilot program opportunities through both traditional was a major achievement and a step forward in positive relationship with the forums and modern technology was another the ongoing employment of Indigenous women community in which it operates key focus for CME with the on-going in the resources sector. The RITC in collaboration is key to securing future development of the national careers website with Rio Tinto and Macmahon, and with funding Peopleforthefuture.com.au. Over the past year, from the Department of Education, Employment growth in Western Australia. In traffic to the website has constantly increased. and Workplace Relations and the Department of representing member companies, The website is managed by CME in collaboration Training and Workforce Development, aimed to CME promotes the contribution with the Minerals Council of Australian and the test issues associated with employing Indigenous Queensland Resources Council (QRC). women from Perth on a Fly-in, Fly-Out (FIFO) the sector makes to local basis into the Pilbara region. The participants CME continued to partner with the QRC to further communities and the potential for undertook traineeships, which concluded in develop and promote online education resources February 2013, and gained valuable on-the-job further collaboration. for teachers with the Oresome Resources website. training and work experience. Over the year Oresome Resources received more During 2012, CME facilitated the establishment than 6,000 visitors from within Western Australia. of an Education Roundtable; attracting strong A new Oresome World App was developed and interest from members as it provides a forum was named Best Education Application at the for the exchange of ideas and information Australian Mobile Awards. around education and career promotion for the resources sector. CME’s Indigenous Leadership Program attracted high calibre participants from CME member Actively promoting career and employment companies for the second year running. A selection of individuals of Indigenous descent opportunities through both traditional forums and who had demonstrated leadership potential were chosen for the scholarship positions. and modern technology. Participants undertook a five-day course which was tailored to meet their needs and gained invaluable leadership skills as well as a Certificate IV in Frontline Management from the Australian In collaboration with the Resources Industry During the reporting year, CME also provided Institute of Management. Training Council (RITC), CME hosted an evidence to the House of Representatives information booth at the State Government’s Standing Committee on Regional Australia CME’s Women in Resources Awards continue Skills West Expo in August, providing a valuable inquiry into the use of FIFO workforce practices in to grow and this year attracted more than link between industry and those wanting access regional Australia at a hearing held in Perth. The 90 nominations from across the industry. The to information about the sector. Along with key FIFO submission continued CME’s advocacy for Awards were presented in March 2013 on school visits, CME and the RITC also participated FIFO as a viable and sustainable work practice. International Women’s Day, again giving CME in the Commonwealth Government’s Jobs While FIFO has recently attracted significant and member companies the opportunity to and Skills Expo in Kwinana during September. media attention, CME has long advocated that to formally recognise excellence within this growing These projects provide an avenue for CME secure a sustainable workforce employees must demographic of the resource sector’s workforce. to promote career opportunities within the be given the choice to live and work in a regional Western Australian resources sector, and inform town or to take a roster that suits their lifestyle. prospective employees about the education and training requirements. PAGES 16 17 The Year in Review

Identifying and sharing best practice innovations which can be applied across the industry.

PAGES 18 19 The Year in Review

Innovation The Western Australian resources A Carbon Policy and Energy Efficiency Reference CME’s Safety and Health Innovation Awards Group (CPEERG) has been established as the were reinvigorated this year, with an update to sector is positioned as a global primary CME forum for energy efficiency and the branding and promotion. CME facilitates leader in the industry, with CME carbon policy matters. The group will work these Awards to provide an opportunity to member companies leading to increase member awareness of carbon and share best practice innovations and to identify climate change mitigation and adaptation initiatives which can be applied across the advancements in the areas of initiatives through information sharing industry. The Awards will be presented at the technology, safety and health, and opportunities. In addition, the group is focussed 2013 CME Safety and Health Conference. on identifying emerging policy issues and responsiveness to climate change. The Western Australian Minerals Research greenhouse emissions management initiatives. (WAMRI) Institute was launched in December The CPEERG was instigated largely as a result 2012. The establishment of this Institute is a of the commencement of the Clean Energy significant achievement; CME has been working Act 2011 and replaced CME’s former Climate with key stakeholders for an extensive period Change Reference Group and Carbon Pricing to advocate the benefit this initiative would Working Group. present. The WAMRI will play a crucial role in With the introduction of the National Carbon supporting research to develop new exploration Pricing Mechanism on 1 July 2012, CME has and processing technologies. The Institute will continued to work closely with members to facilitate programs designed to target and deliver ensure that the structure and authority of the long-term benefits for the Western Australian Clean Energy Regulator is fully understood. This resources sector and ensure an ongoing has included working with members on issues economic return for the government. such as legislative amendments to the liquid fuels opt-in scheme and ensuring the Federal Government Jobs and Competitiveness program is inclusive of all sectors of the industry.

CME | ANNUAL REPORT The Year in Review

Infrastructure and Planning CME has progressed a range While the SPS sets out outcomes, measurements, CME hosted an environmental approvals challenges and aspirations for the state it does workshop during May 2012, which followed of new and ongoing initiatives, not include an implementation plan or funding on from the release of our Approvals Reform on behalf of members, in the strategy to achieve or overcome these. The Implementation Report in December 2011. planning and provision of social draft SPS states aspirations rather than actions. The workshop, which was attended by key Without a plan including timeframes, costs and government regulatory authorities and CME and physical infrastructure within priorities there is not a clear commitment to members, identified key issues and milestones Western Australia. work towards the vision. CME considers a whole for further environmental approvals reform in of government implementation plan needs to Western Australia. Significantly, CME, in collaboration with be developed to ensure the intent of the SPS Early in 2012 the Western Australian PricewaterhouseCoopers, released a report is realised. CME will continue to work with Government announced the state’s seven providing an overview of the Western Australian government and industry to ensure the positive regional port authorities would be consolidated resource sector’s development and growth development and implementation of the SPS. intentions for the next 10 years. Launched in into four regional authorities. The 12 smaller November 2012, the 2013 State Growth Outlook CME has actively participated in the ports, currently controlled by the Department considers the key growth enablers of people, Department of Mines and Petroleum (DMP) of Transport (DoT) under the Shipping and energy and water and examines future demand Reforming Environmental Regulation program. Pilotage Act 1967, are planned to come under for key infrastructure, including airports, ports, This initiative has seen the establishment the jurisdiction of the four new regional port roads and rail, in addition to social infrastructure. of a Ministerial Advisory Panel and four authorities. On behalf of membership CME The 2013 publication continues the message issues-based working groups, representing has been liaising with DoT regarding timing, of previous editions, highlighting the need for Governance, Approvals, Compliance and the impact of the changes to industry and the long-term vision and planning to ensure the state’s Petroleum. CME contributed to all of these need to ensure existing day-to-day operations infrastructure meets the needs of the growing forums and has worked to develop a set of and efficiencies are not impacted during the economy and population. draft recommendations focussed on improving transition period. the environmental regulatory practices and In March 2013, CME responded to the functions of DMP. Fourteen recommendations government’s draft State Planning Strategy (SPS) from the program were endorsed and released which is intended to be used as a basis to plan for by the Minister for Mines and Petroleum in and coordinate regional and urban infrastructure January 2013. These are focussed around the across the state, improve efficiency of infrastructure four themes: clear environmental objectives; investment, and to facilitate the consideration of efficient environmental regulation; improved project approvals, delivery of services and urban transparency and communication; and effective land supply. CME welcomed the release of the SPS compliance framework. and in particular a vision for the state to 2050. For a number of years CME has recommended the government align strategic policy and planning initiatives according to a vision for the state with a focus on regional Western Australia. CME hopes the completed SPS provides a ‘bigger picture’ direction for the state and guides the development of policies from a strategic approach rather than in isolation.

PAGES 20 21 The Year in Review

CME | ANNUAL REPORT The Year in Review

CME has worked closely with Main Roads, DoT The past year also saw CME engage with Perth On behalf of members, CME put forward pre- and other relevant agencies to support the Airport, Airservices Australia and the DoT to budget submissions at both state and federal urgent delivery of efficiencies to the transport address a number of aviation issues creating levels, in addition to preparing an extensive of over size and over mass (OSOM) loads on congestion and delays at Perth Airport. This has submission ahead of the Western Australian state roads. CME has played a leading role in included a review of the schedule coordination state election. These submissions highlighted the assisting these agencies to streamline the permit system being implemented by Perth Airport, value of the resources sector to both the state approval process, leading to a simplified process in addition to providing industry input into the and national economies and the importance of for industry. CME has provided background State Aviation Strategy. CME has also written maintaining an internationally competitive and information to assist these agencies in acquiring to state and federal governments outlining a attractive operating location. additional resources for escorting OSOM loads preferred approach for a sound business case In early 2013 CME completed research into and developing a one-stop-shop for permit to be prepared prior to the establishment of a the cost of doing business which summarised applications. Following CME’s work on this issue, proposed third runway at Perth Airport. CME current data on the cost trends for resource permit approval timeframes have been reduced completed an aviation demand study to better projects in Western Australia. Research covered from two to three months down to two to understand our sector’s aviation requirements for a number of key, high level challenges around three days and particular key power lines which the coming decade. required frequent and costly lifting have now productivity and major imposed costs including been safely moved underground. Importantly, CME continues to work closely with members to environmental, energy, approvals and labour. CME has ensured the sector’s views are assess the changing operation costs in Western CME’s research has provided an important represented on the OSOM Advisory Committee Australia and ensure the impact of changes evidence based focus to discussions with relevant which will monitor the financial performance and to government policy is fully understood by authorities about the needs of our members. key decision makers. A major issue for our service delivery of the OSOM Unit at Main Roads. Responding to increased political discussion members and the Western Australian economy about local content, CME has sought to ensure CME worked on behalf of members with the is to ensure the state remains internationally attention remains focussed on opportunities to Minerals Council of Australia (MCA), Australian competitive in order to secure continued growth. increase the competitiveness of the local industry. Maritime Safety Authority (AMSA), the The Minerals Resource Rent Tax (MRRT), which International Maritime Organisation (IMO) to came into effect on 1 July 2012, has had a CME’s popular quarterly economic reports, support the establishment of new international significant impact on members. Just as CME published in conjunction with KPMG, continue rules regarding the loading and sea transport worked with members to assist in preparation to provide members with regular overviews of of iron ore fines. This form of iron ore can, in for the commencement of the MRRT and the developments and trends in Western Australia certain instances, liquefy in a ship’s hold and administration relating to the imposed tax, work and nationally. cause the ship to rock and potentially capsize. will continue in the lead up to the 2013 federal CME, in partnership with the MCA, established election to flag the potential impact of any a working group to manage the industry’s proposed changes to the tax. response to the new process implemented by the IMO. Through the working group CME is assisting members to stay engaged on this issue and to ensure relevant authorities are fully informed of industry concerns and needs. Ensuring relevant authorities are fully informed of industry concerns and needs.

PAGES 22 23 The Year in Review

CME | ANNUAL REPORT The Year in Review

Natural Resources Efficient and considered access to land and awareness of the associated responsibilities are key to unlocking the full potential of the Western Australian Resources Sector.

CME facilitated significant industry consultation with the Department of Water (DoW) on a number of water policy reviews throughout the reporting year. These included: third party use of surplus water from dewatering activities; the use of water in mining; legislative reform; water allocation planning for the Pilbara; and comment on the draft Mid West Water Supply Strategy. In addition, CME established the Cumulative Impacts Working Group to pursue CME policy development on cumulative water impacts. Through this group, CME is working to establish principles for a Water Cumulative Effects Framework. CME was invited to join the Consumer and Industry Energy Roundtable, which is part of the state government’s Strategic Energy Initiative (SEI). The SEI seeks to provide a 20 year vision for the state’s energy sector. CME has continued to work with the government since the launch of the SEI in November 2012, providing input to assist the government achieve its goals of affordable, secure, reliable and cleaner energy. During 2012, the State Government progressed work with its new fund to replace the previous environmental bonds system for mine rehabilitation in Western Australia with the Mining Rehabilitation Fund (MRF) Bill being read into State Parliament late in the year. The new MRF will require operators to make annual contributions based on a percentage of their total closure liabilities, which will go into a pooled government-administered fund. PAGES 24 25 The Year in Review

Although there remain some administrative The working group held its inaugural meeting Amendments to the Native Title Act 1993 matters requiring further discussion - particularly in early 2013 and is committed to working with were advanced through consultations and the around the calculation of liability and fund government to develop an appropriate strategy release of a Bill in December 2012. The Bill was contribution - this was a positive outcome for to address community concerns about the referred to both the House of Representatives industry. CME will continue to work closely with impact of the resources sector and to minimise Standing Committee on Aboriginal and Torres the government as the regulations are developed conflicts over land use. Strait Islander Affairs and the Senate Standing to ensure members’ concerns are addressed. Committee on Legal and Constitutional CME published the Land Use Planning Principles Affairs. CME provided submissions to the The NGO Industry Environment Forum (NIEF) which cover key principles for consideration in Commonwealth Attorney General’s Department has had a productive 12 months. Of mutual the strategic planning of land use. The Principles addressing concerns around the exposure draft interest to industry and conservation NGOs, highlight the importance of land rehabilitation and and draft Bill. CME also made submissions to the progress was made towards establishing a recognise the significance of industry successfully related parliamentary committees and attended terrestrial biodiversity research initiative, pursuing co-existing with other land users and creating the House of Representatives Committee environmental regulatory reform and managing positive outcomes in the areas of conservation, hearing. CME ensured the committees were mine closure issues. Planning has commenced cultural heritage and regional economic apprised of members’ concerns about the for NIEF members to visit the Mid West region, development. Other key principles highlighted proposed amendments, including the likelihood where they will examine issues of mutual interest include the importance of land use being led of increased litigation and reduced flexibility in on the ground including biodiversity values, land by state government, conducted in a timely, negotiations, and the misalignment between access, and water and infrastructure challenges. transparent and flexible manner and maximising the policy objectives of the government and the environmental, social and economic values. As exploration and extraction activities provisions of the Bill. increasingly occur in areas not traditionally The Commonwealth Government continued CME’s Aboriginal Heritage and Native Title associated with the resources sector, access with its native title reform agenda with the Industry Liaison Committee has continued to to land, land use activities and community introduction of two proposed legislative meet quarterly, providing an opportunity for concerns have increasingly become the subject amendments. The taxation treatment of native liaison between industry, the Department of of public discussion. title benefits was examined in an exposure draft Indigenous Affairs and the Department of the released in August 2012, followed by a Bill in The debate about competing land uses, Premier and Cabinet. December 2012. The Bill was referred to the particularly in relation to onshore gas, has begun House of Representatives Standing Committee to emerge in Western Australia. This has given on Economics and a hearing was held in January our state the unique opportunity to learn from 2013. CME provided submissions and attended the experience of other jurisdictions and develop the January committee hearing, representing a state-wide strategic land use planning policy. members’ concerns the Bill would not deliver Recognising the growing importance of this sustainable intergenerational economic issue, and the need to actively ensure Western independence but would incentivise more Australian land continues to be available for immediate utilisation of benefits. exploration and mining activities, CME has established the Land Use Policy Working Group which will complement the Land Access Committee’s work.

CME | ANNUAL REPORT $106 billion* The value of Western Australia’s mineral and petroleum industry.

455 million tonnes* of Iron Ore exported from * 2011-2012 Financial Year. All figures in Australian Dollars Source: Department of Mines and Petroleum Western Australia.

CME | ANNUAL REPORT $45 billion* Invested by the state’s Resources industry. A 58 per cent increase on the previous year. more than $175 billion* worth of projects either committed or under consideration for Western Australia during the next few years.

PAGES 26 27 The Year in Review

Public Comment CME has a significant voice within CME publications such as the quarterly WA Nurturing and maintaining relationships with Resources and Economics Reports, State government figures remains a key priority for the local, state-wide and national Growth Outlook, People in the Pilbara - Pilbara CME. As such, CME facilitated familiarisation media when relevant issues take Population and Employment Projections and tours of mines, ports and industrial sites for hold in the public arena. Shaping Growth in the Kimberley Region officials from the Department of Climate Change attracted significant media attention. These and Energy Efficiency and the Clean Energy Gaining media coverage for industry opinion, documents are developed with input from Regulator. A separate touring party of officials events, initiatives and training is one area in our members and form a valuable basis for from the Board of Taxation also toured projects in which CME has excelled over the reporting discussing the future growth of the industry. the Pilbara region. CME also assisted high profile visitors by facilitating regional tours to operating year, actively advocating for our members in the These publications, as well as events such as sites for Senator Glen Sterle and the then public arena and raising awareness of industry’s the emergency response skills challenges, the Minister for Regional Development Simon Crean. stance on matters of major policy. Safety and Health Conference and the Women Radio continued to be a strong outlet for CME in Resources Awards are utilised as an avenue Achieving a fatality free year in the resources with many reports generated over the past year. for CME increase community awareness and sector in 2012 was worthy of much media Regional ABC is clearly the leading radio for understanding of the sector. The 2013 Women comment. This is the first time in Western our messages, inviting CME to provide industry in Resources Awards attracted over 800 guests Australia’s history this has been achieved. It comment on a number of issues and hosting live to celebrate the achievements of women and served as timely reminder for all in the sector to interviews where appropriate. hear about career opportunities in the sector. remain vigilant and never become complacent about safety. CME has distributed regular media releases Fly-In, Fly-Out (FIFO) dominated headlines over to voice the views of the resources sector and the past year. In April 2012, CME provided CME hosted a group of cadet journalists from promote new initiatives. These are supported evidence to the House of Representatives The West Australian on a two-day tour of South by Information Circulars sent to members Committee for Regional Australia’s Inquiry into West sites. CME members hosted the group, to provide timely information about issues the FIFO work practice. CME provided ongoing provided background briefings on the alumina, affecting their operations. media commentary to ensure the community coal and minerals sands operations. understood both the importance and popularity The CME Public Affairs Roundtable has continued CME’s foray into the world of social media has of FIFO as a valid and sustainable work choice for to meet regularly, bringing together media and strengthened with our Twitter profile (@CMEWA) many thousands of employees. Media interest in community relations professionals from member gaining more than 650 followers. Twitter is FIFO is expected to remain high as more research companies. Over the past year this group has enabling CME to connect with a different into the positive and negative impacts of the seen an interesting line up of guest speakers audience to provide information on the sector practice is conducted. and further promote our media releases. including journalists and political commentators. During the second half of 2012, price volatility in The Chief Executive has been publishing regular key commodities increased a focus on the cost of opinion pieces in The West Australian business doing business in Western Australia. The Federal section. Similar monthly contributions are Government’s Carbon Pricing Mechanism, made to regional newspapers including The Mineral Resources Rent Tax and duplication in Geraldton Guardian, The South West Times red and green tape attracted significant media and The Kalgoorlie Miner. Opinion pieces have issues and were a focus of strong advocacy also been published in WA Business News, The efforts by CME. Pilbara News, The Kimberley Echo, The Broome Advertiser and industry journals such as The National Resources Review.

PAGES 28 29 The Year in Review

Nurturing and maintaining relationships with government figures remains a key priority for CME.

CME | ANNUAL REPORT The Year in Review

CME | ANNUAL REPORT The Year in Review

North West CME endeavours to identify PICC’s previous employment and population Over the past year, CME has also worked with forecasts in 2008 and 2010 were based on the WA Country Health Service to develop two opportunities to showcase publicly available information, whereas People for new programs including the provision of two the economic, social and the Pilbara based its findings on a direct survey mobile community and mental health clinic environmental contributions of of PICC member companies. Having access to buses and the development of a new child member company material including employment health services plan. Announced by the Minister the resources sector. and development plans gave CME the most for Health, the Hon Kim Hames MLA and the A key initiative of the Pilbara Industry accurate information possible for the report. Minister for Regional Development and Lands, the Hon Brendon Grylls MLA in late 2012, the Community Council (PICC) was the research and CME regularly meets with key stakeholders and programs were developed to utilise under- development of a report entitled People for the has provided detailed briefings on the report and expenditure of the PHI budget and are currently Pilbara: Population and Employment Projections the likely implications for the region. Significantly, being implemented. These developments will to 2020. Launched in Karratha by then Minister findings from the report suggest the workforce assist the local community to access health for Mines and Petroleum, the Hon Norman required to meet current growth plans for the screenings and wellness information and Moore MLC, the report provides projections for resources sector in the Pilbara is expected to education, as well as exploring and advancing population and employment growth as well as peak at just over 65,500 in 2014 while total improvements in maternity and child health the expected increase in demand for housing employment in the resource sector is expected to services in the Pilbara. and accommodation in the North West. stabilise at around 55,000 from 2018. Although the PHI’s three years of industry The projections clearly show strong growth in Another key achievement for PICC took place investment ended in June 2012, the program will the Pilbara’s resource sector and, as a result, this year when its Pilbara Health Initiative (PHI) continue to strengthen and support important strong population growth. The projections also was recognised in the 2012 Premier’s Awards health initiatives in the North West. show a switch taking place in the sector, as under the Revitalising the Regions category. major projects in construction near completion The initiative has made significant inroads into In addition, CME’s North West Regional and move into operation. This will mean the enhancing health services in the Pilbara. Council has developed and released The short-term construction workforce will begin Resource Sector in the North West: Supporting to move out, while the long-term operations Strong Communities, to promote industry workforce will grow strongly. initiatives in the region. Published in June 2012, the document includes community and environmental case studies and outlines many ways in which the resources sector is contributing to the community. The document is being used to advocate on behalf of member companies in the Pilbara, by showcasing the economic, social and environmental benefits industry has brought to key regions in the North West.

PAGES 30 31 The Year in Review

PAGES 32 33 The Year in Review

East and North East Boosting education and In December 2012, CME’s Goldfields Community Both Surface and Underground Mine Rescue Relations Forum hosted a Drug and Alcohol Competitions were conducted in the region. awareness of job opportunities Forum in Kalgoorlie. Community participation Teams went head to head in simulated continued to be a key focus for in the event was promoted and encouraged by emergency situations, displaying core values CME this past year. CME and the event attracted resource industry including responsibility, safety and excellence personnel and their families. in mine rescue. Members of the CME Eastern Regional Council Resource personnel form a large part of the As 2012 drew to a close, St Barbara’s committed to contribute financially to the community and their desire to live and work Memorial Service brought an opportunity employment of a part-time staff member in the Goldfields largely depends on the to remember those who have lost their lives for the Goldfields Education Mining Industry quality of life in the community. The continual in the mining industry. Significantly, it was Alliance (GEMIA) for two years. This will enable advancement of the community including acknowledged at the annual Miners Memorial GEMIA, which promotes science education and infrastructure, lifestyle and amenities is and Service that no mining related deaths have resource career pathways to students across will continue to be a consideration of CME and occurred in the region for the past two years Western Australia, to undertake more interactive member companies. – a testament to industry’s dedication to its activities. CME supports GEMIA efforts to work workers and their ongoing safety. collaboratively with communities in building The Eastern and North Eastern Regional capacity in a locally based workforce, a strong Councils continued a strong advocacy program regional economy and social infrastructure. in Kalgoorlie-Boulder and regional towns throughout Eastern WA, raising awareness of the In August, CME brought 2012 Young Australian numerous projects supported by the resources of the Year and Founder of Robogals Global, industry which contribute to enhancing the Marita Cheng, to Kalgoorlie as a guest speaker community and improving lifestyle opportunities. at the GEMIA Girls and Guys Exploring Mining forum. The forum provides an opportunity The Eastern and North Eastern Regional for local resource companies to showcase Councils, in partnership with the CSIRO and the diverse range of careers available to local the Goldfields Environmental Management students along with the tertiary facilities of the Group, have embarked on a case study on WA School of Mines and the Goldfields Institute climate adaptation responses in Australian of Technology. resource regions. This project aims to develop a framework to assess in greater detail the specific vulnerabilities and adaption options for key sectors within the regional resource value chain. Important links between government and industry were built upon this year when the Hon. Norman Moore MLC, then Minister for Mines and Petroleum attended the Eastern Regional Council’s sundowner in Kalgoorlie as a guest speaker.

CME | ANNUAL REPORT The Year in Review

Mid West CME has placed a strong Member companies keen to discuss sustainable CME participated in a community workshop community development took advantage of run by the Department of Mines and Petroleum emphasis on building relationships CME’s inaugural Mid West Community Relations (DMP), in partnership with CSIRO and the and improving communications. Forum. The group has produced a 12-month Australian Petroleum Production and Exploration project plan including a pilot education program Association (APPEA), to address conflicting A dedicated regional office in Geraldton was and a number of other new and exciting projects. and factually incorrect information circulating opened by CME in early 2012, with a presence about the emerging onshore gas industry. In late 2012 CME developed Resources in in the region focusing on actively engaging CME continues to work closely with APPEA Regional Western Australia - Mid West, an members, industry and stakeholders. Activity to and DMP on this issue, having produced a electronic publication highlighting issues and date has involved strengthening and building document to highlight key facts and clear the opportunities in the region. The publication was partnerships as well as a focus on improved misrepresentation of the industry. communication with a monthly e-news updated in early 2013 to also showcase the bulletin now reaching more than 200 regional resource sector’s contribution to the community. CME participated in research carried out by the IBM International Cities team, analysing and stakeholders. CME used its participation at the Murchison recommending ways Geraldton can become an Country Zone WA Local Government CME’s Mid West Regional Council continues even better place to live and work. to gain new members and strengthen as a key Association conference to present an update group in informing and responding to industry on local activities and engage with delegates The most significant development for the region issues. Discussions throughout the year covered a on local issues, opportunities and initiatives. has been the commencement of construction range of topics including Perth airport congestion, The event brought together state members of stage one of the Mid West Electricity Project onshore gas, infrastructure and renewable energy of parliament as well as 40 local government – a 330KV power line running from Perth to as well as the endorsement of establishing a new representatives and stakeholders to discuss Three Springs. The power line will deliver reliable Murchison Region sub-committee. issues in the Murchison zone including electricity to Mid West communities, businesses, resources, health, water, infrastructure and sites and industrial developments. CME will To highlight members’ concerns around progress of the Square Kilometre Array – the continue to push for funding commitments and planning, preparing and supporting growth in world’s largest radio telescope. timely delivery of stage two of the project from the Mid West, CME participates in the Mid West Three Springs to Geraldton. Strategic Infrastructure Group, an initiative of the In addition, CME participates in the Mid West Mid West Development Commission. Industry Road Safety Alliance. Formed in 2012, the alliance of regional police, haulage and industry CME and local member companies, alongside representatives works to identify and address road stakeholders of Wiluna, Mt Magnet and safety issues and contribute to facilitating and Meekatharra, met during 2012 to discuss local communicating road safety initiatives. aviation issues at the Department of Transport- hosted Community Consultation Group.

PAGES 34 35 The Year in Review

The Mid West Regional Council continues to strengthen, gaining many new members.

CME | ANNUAL REPORT The Year in Review

South West Leading the way in advising Advocacy work on behalf of industry has on crucial upgrades and grown as increasing competition has resulted in public debate on appropriate land use. CME improvements to South West continues to work to counter challenges such infrastructure has been a priority as the use of approvals to object to projects on this year. the basis of environmental concerns; efforts to use ‘no mining’ clauses in regional town With regional exports from the resource and planning schemes; ongoing negative press farming industries forecast to double to 31 about the resources industry and the proposal million tonnes by 2020, it is crucial to ensure by the Greens Party of a Bill to exempt land port infrastructure is positioned to accommodate from mining and to subject mining tenement this growth. CME highlighted the views of applications to planning approvals. member companies to port management and CME and member companies will work to increase will continue to consult and engage with port community awareness and understanding of users to address issues around scheduling, fees, resources sector operations to improve public communication and maintenance. perceptions of the industry. This includes Again this year, CME hosted a regional forum in identifying ways to communicate the holistic value the South West to discuss environmental issues and economic contribution the resource sector and future reform priorities. A range of guest brings to the community. speakers from the Department of Environment and CME organised and delivered another successful Conservation and the Department of Mines and emergency response competition in the South Petroleum were present to discuss environmental West during 2012. These events provide an reform issues important to our members. opportunity for community engagement, South West transport issues are being addressed providing an educational demonstration of the through the Greater Bunbury Road and Rail industry’s operations. This competition succeeded infrastructure project, which has been made in allowing participants to hone their emergency possible through a collaboration involving CME, response skills in a controlled environment, the South West Development Commission, while lessons learned from the competitions Regional Development Australia, Bunbury were delivered back to sites and used to improve Port Authority and the Bunbury Wellington emergency response capability. Economic Alliance. The project will focus on identifying required improvements to both road and rail such as the Coalfields Highway, the establishment of a second railway line running from Brunswick to Bunbury Port, the Bunbury Outer Ring Road and the Preston River diversion.

PAGES 36 37 The Year in Review

CME | ANNUAL REPORT The Year in Review

Kimberley CME is committed to working with The report was provided to all stakeholders and At the invitation of the Kimberley Land Council, meetings were held with key policy makers in CME spent three days at One Arm Point on regional stakeholders to ensure early 2013. Importantly, CME also met with the Dampier Peninsula to observe the Annual the full potential of the Kimberley the Regional Development Commission and General Meetings of the Kimberley Land Council, region is realised. local governments from across the region to the Kimberley Aboriginal Law and Culture present the report and discuss opportunities for Centre and the Kimberley Language Resource Addressing shortfalls in infrastructure will benefit collaboration and information sharing in the Centre. Sitting in on the meetings gave CME all industry sectors operating in the Kimberley. Kimberley region. a valuable insight into the issues and concerns of the Aboriginal people of the Kimberley, and Of particular concern are areas such as roads, Throughout the year, the Kimberley Regional these will continue to be incorporated into our ports and housing, together with the region’s Council (KRC) met regularly to discuss local advocacy and development work. water supply and wastewater treatment facilities. issues. Members were given the opportunity Not only will increased investment support the to participate in a forum with consultants CME developed a submission on the federal growing resources sector, improving the region’s from Carpe Diem Strategic Solutions to discuss government’s central piece of environmental infrastructure will also create economic diversity industry input into the Department of Training legislation, the Environment Protection and and employment opportunities for locals. and Workforce Development’s Kimberley Biodiversity Conservation Act 1999, with the Shaping Growth in the Kimberley, a report Workforce Development Plan. aim of providing clarity for proponents taking actions within or adjacent to the West Kimberley outlining the four recommendations made in Looking at ways to increase the numbers of National Heritage Area. the Kimberley Region Infrastructure Analysis Indigenous employees in the resources industry was launched by CME in August, supported has been a key focus over 2012 and into 2013. by a media campaign. The report highlights Creating opportunities for members to share the emerging significance of the region and lessons learnt in this challenging environment, as the investment necessary to facilitate further well as disseminating information on the extensive development in the Kimberley. array of activities undertaken by resource sector The main points emphasised in Shaping Growth companies is seen as a high priority. in the Kimberley include investing in the Great Northern Highway, expanding the Port of Wyndham, constructing a supply facility port at Point Torment, investing in affordable land releases and housing, and taking the pressure off existing water supply and wastewater treatment facilities as the population increases.

PAGES 38 39 The Year in Review

Addressing shortfalls in infrastructure will benefit all sectors operating in the Kimberley.

CME | ANNUAL REPORT Submissions OnOn behalfbehalf of of our our members, members, CME CME has has lodged lodged submissions submissions on the: on the:

April 2012 May 2012 June 2012

Guidelines for Environmentally Responsible Country Local Government Fund Review to State Aviation Strategy issues paper to the Minerals Exploration and Prospecting in Western the Western Australian Department of Regional Western Australian Department of Transport Australia to the Western Australian Department Development and Lands (DoT) of Mines and Petroleum (DMP) Mine Rehabilitation Fund Bill Drafting Draft Four of the Mining Amendment Act to Energy White Paper to the Federal Department Instructions to DMP DMP of Resources, Energy and Tourism Review of the Aboriginal Heritage Act to the Proposed FIFO Transient Workforce Western Australian Department of Indigenous Accommodation policy to the Town of Affairs Port Hedland WA Climate Change Complementary Measures Draft National Wildlife Corridors Plan to Review to the Western Australian Department of the Federal Department of Sustainability, Environment and Conservation (DEC) Environment, Water, Populations and Environment Protection and Biodiversity Communities (SEWPAC) Conservation Act Cost Recovery Impact Draft National Wildlife Corridors Plan to Statement to SEWPAC SEWPAC (jointly with the Minerals Council of Australia (MCA)) Review of the role of the Chief Scientist of Western Australia to the Department of Commerce Verve-Synergy merger to the Premier (jointly with the Chamber of Commerce and Industry and the Energy Supply Association of Australia) Draft referral guidelines for the national heritage listing of the West Kimberley to DMP

CME | ANNUAL REPORT July 2012 August 2012 September 2012

Role of Local Government as a regulator of Water in Mining Guideline to the Western Renewable Energy Target Issues Paper to business to the Federal Productivity Commission Australian Department of Water (DoW) Federal Climate Change Authority Draft WA Environmental Offsets Guidelines to DEC Gas Services Information Bill: Emergency Senate Inquiry into Electricity Prices to the Management Facility Regulation to the Western Senate Committee Pilbara FIFO Workforce Accommodation Policy Australian Public Utilities Office (PUO) Draft Discussion Paper to the Western Australian Gas Information Services Project (GISP) to the Planning Commission Exposure draft of the Tax Treatment of Native Independent Market Operator (IMO) Title Benefits to the Federal Treasury Review of the Standards for the Regulation of WA dewatering policy to DoW Vocational Education and Training to the Federal Future Focus: Australia’s skills and workforce Draft legislation on implementing links to Department of Education, Employment and development needs discussion paper to the overseas emissions trading schemes to DCCEE Workplace Relations (jointly with the MCA and Australian Workforce and Productivity Agency the Queensland Resources Council) (AWPA) Supporting guide to the EPBC Act Best practice guidelines on transport, handling Environmental Offsets Policy to SEWPAC (jointly and export of specified metal concentrates in with MCA) WA ports to DoT Mine Rehabilitation Fund Bill exposure draft to DMP The Liquid Fuels Opt-In scheme consultation paper to the Department of Climate Change and Energy Efficiency (DCCEE) Clean Energy Amendment Regulations 2012 regarding natural gas pipelines to DCCEE GST Distribution Review to the Federal Treasury

PAGES 40 41 Submissions

October 2012 November 2012 December 2012

Revival of the water resources reform policy Perth Airport Schedule Coordination System to Exposure draft of the Amendments to the agenda to DoW the Perth Airport Native Title Act to the Federal Attorney-General Draft Forest Management Plan 2014-2023 to Discussion paper on the 2012 Wholesale Process for peak forecasting in the South West DEC Electricity Market report to the Economic Interconnected System to the IMO Regulatory Authority Liquid fuels opt-in scheme exposure draft regulations to DCCEE Taxation treatment of native title benefits as appears in the Tax Laws Amendment (2012 Westplan - Gas Supply Disruption to the PUO Measures No 6) Bill 2012 to the House of Draft Rules for the GISP to the IMO Representatives Standing Committee on Economics Environmental Assessment Guideline for Environmental Offsets to the Environmental Protection Authority

PAGES 42 43 Submissions

January 2013 February 2013 March 2013

Draft Pilbara groundwater allocation plan to Efficiency of Reporting under the National Issues Paper - Major Project Development DoW Greenhouse and Energy Reporting scheme to Assessment Processes to the Federal Productivity DCCEE Commission Native Title Amendment Bill 2012 to the House of Representatives Aboriginal and Torres Strait Water cumulative effects framework to DoW Draft State Planning Strategy to the Western Islander Standing Committee Australian Department of Planning Class exemption for licences for water services Native Title Amendment Bill 2012 to the Senate provided to camps to DoW Standing Committee on Legal and Constitutional Second draft rules and design for the Gas Affairs Services Information project to the IMO State election to the State Government and Opposition State budget to the Western Australian Department of Treasury

CME | ANNUAL REPORT Keeping members up to date on industry news is a priority for CME.

PAGES 44 45 CME | ANNUAL REPORT Events and Activities

April 2012 June 2012 September 2012

Lunch with the Hon. Julia Gillard MP Environment Committee Sundowner with the Pilbara tour, representatives of the Clean Energy (In partnership with CCI) Hon. Bill Marmion MLA Regulator and Department of Climate Change and Energy Efficiency Breakfast with Sir Alan Collins, Commonwealth Business Council 2012 South West Emergency Response Skills Challenge July Pilbara tour, members of the Board of Taxation 2012 May Executive Council dinner with State Government Directors-General Annual General Meeting and Business Lunch South West tour, The West Australian with the Hon. Norman Moore MLC and the Newspaper Cadet Journalists Hon. John Howard OM AC South West tour, visiting delegation from Member Sundowner. Topic: Fly-in Fly-out the Graduate School of Government, University Eastern Region Surface Mine Emergency of Sydney Response Competition Pilbara tour, Senator Glenn Sterle and the Hon. Simon Crean MP August 2012

Great Australians Breakfast (In partnership with the Australian Day Council) Member Sundowner, Kalgoorlie Information booth at the SkillsWest Exhibition (In partnership with APPEA and RITC)

PAGES 46 47 October 2012

WA Resources Overview (In partnership with CEDA) Executive Council dinner with State Government Directors-General. Member Sundowner. Topic: Elizabeth Quay overview November 2012 December 2012 February 2013 Member Sundowner, Geraldton People for the Pilbara document launch with Christmas Celebration with the Hon. Norman the Hon. Norman Moore MLC Moore MLC and the Hon. Mark McGowan MLA State Growth Outlook document launch with Lunch with the Hon. Mark McGowan MLA 2013 the Hon. John Day MLA March Biodiversity Institute Planning Lunch Lunch with the Hon. Peter Beattie Presentation of the Women in Resources Awards Meeting with the Hon. Julia Gillard MP and the Eastern Region Underground Mine Emergency Hon. Gary Gray AO MP Response Competition

Land Access Committee Sundowner

Member Sundowner with the Hon. Bill English, Deputy Prime Minister of New Zealand

CME | ANNUAL REPORT Our Members

Mineral Production Minerals and Metals Group (MMG) GMK Exploration Pty Ltd (Reed ERM Power Ltd Aditya Birla Minerals Ltd (Australia) Development Pty Ltd Resources Ltd) TransAlta Energy (Australia) Pty Ltd Alacer Gold Mitsubishi Development Pty Ltd Golden West Resources Ltd Western Power Alcoa of Australia Ltd Moly Mines Ltd Grange Resources Ltd AngloGold Ashanti Australia Ltd Navigator Resources Ltd Mineralogy Pty Ltd Exploration Atlas Iron Ltd Newcrest Mining Ltd Oakajee Port and Rail Alkane Resources Ltd Barrick (Australia Pacific) Ltd Newmont Asia Pacific Rey Resources Ltd Bauxite Alumina Joint Ventures Pty Ltd BC Iron Ltd Northern Star Resources Ltd Rosslyn Hill Mining Ltd Bauxite Resources Ltd BHP Billiton Iron Ore Norton Gold Fields Ltd Shell Development (Australia) Pty Ltd ConocoPhillips BHP Billiton Nickel West Onslow Salt Pty Ltd Sinosteel Midwest Corporation Ltd Flinders Mines Ltd BHP Billiton Worsley Alumina Panoramic Resources Ltd Toro Energy Ltd FMR Investments Pty Ltd Cliffs Natural Resources Premier Coal Ltd KBL Mining Ltd Cristal Mining Australia Ltd Ramelius Resources Ltd Contractor MacPhersons Resources Ltd Crosslands Resources Ltd Regis Resources Ltd Barminco Ltd Mega Uranium Doray Minerals Ltd Rio Tinto Ltd BGC Contracting Mount Magnet South NL Doral Minerals Sands Pty Ltd Saracen Mineral Holdings Ltd Byrnecut Australia Pty Ltd Northern Minerals Ltd Evolution Mining Shark Bay Resources Pty Ltd Calibre Group Ltd Paladin Energy Ltd First Quantum Minerals Australia Silver Lake Resources Ltd CFC Group Pluton Resources Ltd Pty Ltd St Barbara Ltd Downer EDI Mining PTT Asia Pacific Mining Pty Ltd Focus Minerals Ltd Talison Lithium Ltd Emeco International Pty Ltd Top Iron Pty Ltd Fortescue Metals Group Ltd Tanami Gold NL Georgiou Group Pty Ltd Vector Resources Ltd Galaxy Resources Ltd Tronox Management Pty Ltd Leighton Contractors Pty Ltd Gindalbie Metals Ltd Xstrata Nickel Australasia Macmahon Contractors Pty Ltd Gold Fields Australia Pty Ltd McConnell Dowell Constructors Iluka Resources Ltd Oil and Gas Production and (Australia) Independence Group NL Downstream Processing Monadelphous Group Ltd Integra Mining Limited BHP Billiton Petroleum Pty Ltd NRW Holdings Ltd Kalgoorlie Consolidated Gold Mines Woodside Energy Ltd Orica Ltd Pty Ltd (KCGM) RCR Tomlinson Ltd Kentor Gold Ltd Project Development Thiess Pty Ltd Kimberley Diamond Company NL API - The Australian Premium Iron WesTrac Pty Ltd La Mancha Resources Australia Pty Ltd Joint Venture Lanco Resources Australia Pty Ltd Cameco Australia Pty Ltd Energy Generation Lynas Corporation Ltd Chevron Australia and Distribution Minara Resources Pty Ltd CITIC Pacific Mining Alinta Energy Pty Ltd Mincor Resources NL Doray Minerals Ltd Dampier Bunbury Pipeline

PAGES 48 49 Associate EnerNOC McGarry Associates Sparke Helmore Lawyers AECOM Australia Pty Ltd Environmental Resources Management McKinsey & Co SRA Information Technology Allens Linklaters Australia Michael Megaw Consulting Strategen Environmental Consultants Alliance Airlines Equilibrium Mid West Development Commission Pty Ltd Analytical Reference Laboratory ERGT Australia Mitsui Iron Ore Development Pty Ltd Sustainability Future Growth Aquenta Consulting Pty Ltd Ernst and Young MMT Mining Services Telstra Corporation Ltd - Enterprise & Government Arup Esperance Ports - Sea and Land MWH Global Extend Technologies Terra Rosa Cultural Resource Ashurst North West Shelf Australia LNG Pty Ltd Management FIFObids ATCO Australia Pty Ltd North West Shelf Gas Pty Ltd Thales Flight Safety Foundation Aurecon Australia Pty Ltd Nous Group The Perth Mint Fremantle Ports Aurizon - Iron Ore Orontide Group Ltd The University of Western Australia Fulton Hogan Construction Pty Ltd Australian Cultural Heritage OSD Pipelines Thejo Australia Pty Ltd Management Pty Ltd Geraldton Port Authority Overflow Industrial Pty Ltd Toxfree Solutions Ltd Auzcorp Pty Ltd GHD Pty Ltd Peak3 Pty Ltd Ultimate Safety Solutions Bis Industries Ltd Goldfields Institute of Technology People Solutions Australasia Pty Ltd Umwelt (Australia) Pty Ltd Bluewaters Power Goldfields Land and Sea Council Perdaman Chemicals & Fertilisers URS Australia Pty Ltd Brookfield Rail Pty Ltd GR Engineering Services Pty Ltd PERI Australia Pty Ltd Verifact Pty Ltd Bunbury Port Authority GRA Everingham Perth Airport Pty Ltd Vix Technology Central Institute of Technology Hatch Associates Pty Ltd Pilbara Access Water Corporation Chandler Macleod Herbert Smith Freehills Platform Communications WorleyParsons Clayton Utz Hickory Group Pty Ltd Portland Group Yamatji Marlpa Aboriginal Corporation Clifford Chance HNZ (Australia) Pty Ltd PricewaterhouseCoopers Yanchep Beach Joint Venture Pty Ltd Climate Change Response Pty Ltd IBM Australia Ltd Qantas Airways Ltd Cobham Aviation Services Australia Jackson McDonald Lawyers Rayner Consulting Life Members Coffey International Jebsens Coastal Shipping Regional Development Council Services Pty Ltd Jack Carne Corrs Chambers Westgarth Safe Work Laboratories Pty Ltd Kellogg Brown and Root Pty Ltd Barry Cusack CPC Engineering Pty Ltd Santos Ltd King & Wood Mallesons John Hanley Creating Communities Satterley Property Group Klohn Crippen Berger Peter Lalor CSIRO Minerals Down Under Flagship SCF Group Pty Ltd KPMG John Linden Curtin University Sentis Lavan Legal Malcolm Macpherson DLA Piper Australia Sinclair Knight Merz (SKM) Link Health Pty Ltd Jack McDermott Durack Institute of Technology Skill Hire WA Pty Ltd Litmus Group Pty Ltd Economics Consulting Services Pty Ltd Skippers Aviation Pty Ltd M & M Walter Consulting Edith Cowan University Skywest Airlines Pty Ltd Energy Developments Ltd SolarReserve LLC

CME | ANNUAL REPORT CME | ANNUAL REPORT Our Team

Sonia Beggs * Administration Assistant, Jennifer Rumbles Policy Adviser, RITC Gold Stealing Detection Unit Jasmin Slingsby Manager, Events and Communications Shannon Burdeu Manager, Economics and Tax Renae Soutar Executive Assistant Bruce Campbell-Fraser Manager Media and Public Affairs Denise Spalding * Administration Officer, Jason Cleasby Accountant Gold Stealing Detection Unit Li Tan Cheng Bookkeeper Mandy Stewart Policy Adviser, Occupational Safety and Health Linda Crook Manager, Eastern Region Erin van Noort Manager, South West Region Susan Cull * Senior Policy Adviser, People Strategies Richard Wilson Manager, Occupational Safety and Health Debbie Fletcher Manager, Land Access Andrew Winter * Manager, Infrastructure Katherine Flower Manager, Mid West Region Kathy Gecan * Policy Adviser, People Strategies * Absent in photograph Benjamin Hammer * Policy Adviser, Infrastructure Shannon Hayes * Administration Assistant, Gold Stealing Detection Unit Nigel Haywood Manager, RITC Emmanuel Hondros * Manager, People Strategies Sarah Hooper Director Reg Howard-Smith Chief Executive Adrienne Labombard Policy Adviser, Environment Rochelle Morris Executive Assistant Kane Moyle Manager, Environment Leigh O’Brien * Receptionist

Warren Pearce Manager, North West Region CME’s management team, Reg Howard-Smith (Chief Executive) Elizabeth Robertson Policy Adviser, Economics Sarah Hooper (Director) and Nicole Roocke (Director) Nicole Roocke * Director

PAGES 50 51 CME | ANNUAL REPORT Financial Summary

The Special Purpose Financial Report for the Chamber of Minerals and Energy of Western Australia Inc. for the financial year ended 31 December 2012 has been made available to members at the Annual General Meeting on Tuesday 30 April in accordance with CME’s constitution and the Associations Incorporation Act 1987. The financial report is also available for member companies upon request.

Photography CME thanks the following companies for supplying photographs which appear throughout this publication: Alcoa of Australia, BHP Billiton Iron Ore, Chevron Australia, CITIC Pacific Mining, Cliffs Natural Resources, Downer EDi Mining, First Quantum Minerals, Fortescue Metals Group, Goldfields Australia, KCGM, AngloGold Ashanti Australia (Photographs by Karl Schoemaker), Rio Tinto Iron Ore, Sinosteel Midwest Corporation and Woodside Energy.

PAGES