NSW briefing to Chinese Consulate-General & Banks Agenda

 Welcome and opening remarks: – Caroline Seagrove, Senior Coordinator, Department of Premier & Cabinet – Professor Kerry Brown, Executive Director, China Studies Centre, The University of – Mr Peng Gang, Economic and Commercial Consul, Consulate-General of the People’s Republic of China in Sydney – Gary Offner, Executive Director, Investment & Export Services  Presentations – Regional NSW - Chris Hanger – Agriculture – Chris Hanger (for Ian Sanders) – Energy & Resources – Charles Dowsett  Discussion  Concluding remarks REGIONAL NSW NSW

• West • Far West • Central West • • North • • Northern Inland • • South • Southern Inland • Murray • • East • Central Coast • Hunter • / South Coast • Western Sydney NSW regions – competitive advantages

North West East South  Skilled & flexible  Significant  Easy access to  Skilled agricultural workforce mineral wealth Sydney and  Strong transport  Climate that  The Hunter is manufacturing links allows early ’s biggest workforce  Lifestyle & harvest of regional market  International liveability produce  Newcastle is reputation for  Diverse  Good transport world’s largest food educational infrastructure coal export port manufacturing facilities including  Located close to  Highly skilled and  Availability of a regional the major market motivated quality water University of South workforce and irrigation  Good mix of Australia’s capital  Port Kembla and infrastructure natural city, Adelaide Eden ports for  Good transport resources,  Potential for sea freight infrastructure with including quality organic food options most major soils & available production . highway and rail water corridors crossing the and three airports (Wagga Wagga, Griffith and Narrandera) NSW regions – agribusiness and resources overview

North West East South  Agri: dairy,  Agri: cereal  Agri: wine,  Agri: over 25 per tropical fruits, crops, beef, horticulture, cent of NSW fruit cattle, poultry, cotton, , timber/paper and vegetable plantation forests, horticulture, dairy products, production; 90 per soya bean and farming and aquaculture, food cent of NSW sugar cane, viticulture. processing. citrus products; cotton, wheat and  Resources:  Resources: coal 80 per cent of other cereals, Cobar (copper, (Hunter and NSW wine/grape cattle, wool, zinc and gold) and Illawarra), steel production; poultry, grain Mudgee (coal), production. forrestry. legumes, sheep are experiencing  Resources: not and lambs, and new investment. significant. oilseeds. New prospects  Resources: The are also being Northern Rivers developed for has an emerging high value ‘rare gas industry. The earth’ minerals region has the near Dubbo. largest coal seam methane gas reserve in NSW. Illawarra / South Coast - overview

 Key Facts Competitive advantages – Population: 417,901  – Area: 15,234 sq. km – Highly skilled and motivated workforce – Relatively low staff turnover rates – Broad range of industrial and commercial  Major cities and centres property options – (pop. 192,000) – Affordable commercial rent – Shellharbour (pop. 63,000) – Location and lifestyle – Kiama (pop. 20,000) – One hour south of Sydney international airport – Nowra (Shoalhaven) (pop. 95,000) – Located within major road/rail freight corridors – Batemans Bay (Eurobodalla) (pop. 11,000) – Regional airports at Albion Park, Moruya and – Bega (pop. 4,500) Merimbula – Port Kembla and Eden ports for sea freight options Illawarra / South Coast - industry

 Some key industries – Mining : The region has a wealth of natural resources including coal and blue metal. Coal mining is a major economic activity within the area. – Steel : The region is the leading producer of steel and steel products, slab and plate as well as coated and welding products, in the South East Asian region. – Tourism : The region has a thriving tourism industry (4.1 million visitors to the South Coast and 3.8 million to the Illawarra regions in 2009/10) to its natural attractions, historical villages and events. The spectacular Grand Pacific Drive links Sydney to the region. – Manufacturing/Engineering : The region has a growing number of world class manufacturers. With expertise in advanced CAD/CAM and CNC technologies, the local engineering sector has the capabilities to tackle even the most complex projects. From fabricated metal products to medical devices, Illawarra/South Coast companies are recognised leaders in design, engineering, R&D and quality assurance. Illawarra / South Coast – knowledge services  The region has a reputation as a centre for innovative research and development. This is led by the that has a leading international profile in a range of key research fields including:

 Future Materials : Nanotechnology, intelligent polymers, superconductors, battery technology and solar.

 BioFutures : Medical bionics, biomechanicals, public health planning and administration, biomolecular science, smart foods and medical school.

 Engineering Solutions : Precision manufacturing and intelligent mechatronics, electricity and power, sustainable resources, medical radiation physics and infrastructure.

 Digital Media : Image and video coding, content based image and video retrieval, dense immersive communications environment, games technology, biometrics, telematics, animation, film and television.

 The recently opened Innovation Campus in Wollongong provides opportunities for businesses to undertake collaborative research activities with the UOW and other Innovation Campus tenants. Illawarra / South Coast – major projects  The following projects are listed by Advantage Wollongong :

– The University of Wollongong's $500 million Innovation Campus

– Expansion of trade and logistics facilities at

– Establishment of the $30 million Illawarra Health and Medical Research Institute

– A planned $350 million upgrade of the city's main shopping precinct by Wollongong Central owners the GPT Group.

– The $350 million TRUenergy Gas-fired Power Station at Tallawarra, on the shores of . The development includes Tallawarra Business Park, a 100-hectare greenfields site being developed by TRUenergy for light industrial, general industrial and enterprise industries

– The SMART Infrastructure Facility, a $60 million research and training centre at the University of Wollongong .

All information courtesy of Advantage Wollongong Port Kembla

 The $170 million redevelopment of the Inner Harbour is complete.

 That project transformed Port Kembla from a port that mainly handled bulk cargoes such as coal, iron ore and grain to the vehicle importing hub for NSW.

 Improvements to facilities in the Inner Harbour have also allowed it to diversify into containers and break-bulk cargoes.

 The transfer of the vehicle-importing trade from Sydney Harbour to Port Kembla in November 2008 has driven the development of vehicle pre-delivery and inspection facilities, warehousing, distribution and other support services .

 The NSW Government approved the establishment of a $140 million biodiesel plant at the port, while long- term plans include reclaiming 52 hectares from the Outer Harbour and the construction of seven new berths.

All information courtesy of Advantage Wollongong  The Outer Harbour Master Plan provides for the staged development of container and break-bulk cargo- handling facilities in tandem with customer needs. PRIMARY INDUSTRIES Primary industries in NSW

 NSW primary industry sector is worth $12B and produces some of the world’s finest food, wine, wool and grain.

 This state has 42,000 farmers who sustainably manage 70% of NSW land.

 Sustainable farming systems with strong management of natural resources like water and soil are the basis for the state’s thriving agricultural sector.

 NSW maintains an excellent biosecurity status to ensure continued access to crucial trade markets.

 $100M is invested annually on a research portfolio carried out by 600 scientific staff across regional NSW.

 Research areas are focussed around - agricultural productivity and food security research - biosecurity research - fishery and ecosystems The main agricultural exports to China from NSW

2010 2011 2012 Cotton $147,375,589 $589,383,721 $732,149,035 Wool $460,345,291 $546,299,544 $468,378,639 Hides & skins $118,861,513 $153,332,754 $166,740,826 Sheep meat $23,196,930 $27,924,276 $53,150,170 Wheat $32,958,634 $41,724,180 $49,805,365 Canola $893,573 $22,091,142 $36,344,306 Cotton seeds $591,859 $22,091,142 $36,344,306 Wine $30,871,645 $33,124,844 $35,703,104 Beef $9,469,403 $11,795,001 $31,479,610 Offal $11,403,210 $13,224,518 $20,098,338 A snapshot of NSW agricultural products

Sheep & Beef Wine  NSW has large and fertile grazing areas, ideal  NSW produces some of the finest wines in for cattle, sheep and goats. The meat Australia and has over 450 wineries across 14 produced has a reputation around the world official wine regions. The NSW wine industry for being clean, green and sustainably contributes more than A$500 million to the produced. economy and remains a significant player on the national scene, representing around 35 %  Australia exported over A$357 million in beef of Australian wine produced. to China in 2012-13, an increase of 226%

 China’s consumption of sheep and goat meat  NSW has nine of the Top 20 wine exporters is expected to increase by 72% between 2009 and some of the finest winemakers in the and 2050 which will involve a 1844% increase world. in imports. (ABARES).  Wine represents both an import opportunity for China and an opportunity to invest in expansion of NSW wineries to secure an ongoing supply of fine wines. A snapshot of NSW agricultural products

Citrus Grains Other sectors  NSW is an ideal  NSW is a major  Australian cotton is mainly location for growing producer and exporter produced in NSW. In 2013 cotton oranges, mandarins of a range of grains lint production totalled more than and other citrus fruit. including wheat, barley, A$1.4 billion and all of this is  Australia exported rice, canola, soya bean exported. more than 165,000 and oilseeds.  The macadamia industry exports million tonnes of citrus  NSW produces 99 per around 60,000 tonne to China valued at over A$185 cent of the Australian annually. About half of this goes million up to December rice crop valued at for contract cracking and the 2012. more than A$175 remainder is consumed in China.  Hong Kong took million. A$23.4 million of  In total, the Australian Australian citrus while agrifood industries A$265 million was export more than A$33 exported to China. billion with NSW contributing around A$3.5 billion to this total. NSW agriculture – investment opportunities

Dairy Red meat Other sectors  There is considerable  Secure supply is  Barley exports to China are worth capacity for investment $281million ($44 million from in powder, infant difficult to obtain. This formula, UHT, cheese may be addressed by NSW). There are opportunities for and butter in NSW. investment in: contract growing and variety This could occur in the research. following areas: – greenfield and  Investment in edible oils such as – Mid North Coast mothballed around Taree abattoirs canola, mustard seed, olive oil. – Hunter around – helping domestic  Sorghum, maize, cotton and Muswellbrook plants become soybean production in irrigation – Central West export accredited areas. around Forbes  High value fruit & vegetable , – South Coast & – feedlots to Southern overcome especially in organics. Highlands around seasonal  Biofuel research using Nowra. variation lignocellulosic (wood & agricultural  Investment options residues) exist in the order of  The biggest A$40 million for a 100 opportunities exist in  Aquaculture , notably oysters. million litre UHT facility goats then sheep  Research in biosecurity , water and A$60 million for a then beef . 100 million litre powder efficiency. facility. ENERGY & RESOURCES Current NSW Coal Production

NSW Saleable Coal Production : 163.5 Mt

NSW Coal Exports Total 122 Mt Thermal 94.5 Mt Coking 33.5 Mt

CY2011, Source: Newcastle Port Corporation Port Kembla Port Corporation, Coal Services Pty Limited Current NSW Minerals Occurrences Current Mineral Exploration Licences Current Minerals Resource Projects Current Renewable Energy Projects ENERGY & RESOURCES - OPPORTUNITIES Resources opportunities - coal

Estimated PROJECT NAME (COMPANY NAME) Operation Capital $M PROJECT STATUS Ashton South East Open Cut (Ashton Coal Operations) Open cut 85 Development Application Baal Bone Continuation (Xstrata Coal Australia) Underground 45 Development Application Bengalla Extension (Bengalla Mining Company) Open Cut 400 Development Application Bulga Optimisation (Bulga Coal Management) open Cut 450 Development Application Cobbora (Cobbora Management Company Pty Ltd) Open cut 960 Development Application Coalpac Consolidation Project Open cut/underground 200 Development Application Drayton South (Anglo Coal) Open cut/underground 130 Development Application Mt Owen Continuation (Xstrata) Open Cut 150 Development Application NRE No.1 Preliminary Works (Gujarat NRE) Underground 114 Development Application Rocky Hill (Glouster Resources Limited) Open Cut 300 Development Application Stratford Extension Open Cut 75 Development Application Vickery (Whitehaven Coal) Open Cut 400 Development Application Wallarah 2 (Wyong Coal Joint Venture) Underground 805 Development Application Watermark (Shenhua Watermark Coal Pty Ltd) Open cut 200 Development Application Caroona (BHP Billiton) Underground 1500 Advanced Exploration Ferndale (Coalworks) Exploration 200 Advanced Exploration Oaklands (Coalworks Ltd) Open cut 350 Advanced Exploration Spur Hill (Spur Hill U.T. Pty Ltd and Spur Hill No.2 Pty Limited) Underground 200 Advanced Exploration Totals (broad estimates only) 6564 Resources opportunities - minerals

METALLIC & INDUSTRIAL MINERALS Estimated PROJECT NAME (COMPANY NAME) Commodity Capital $M Project Status Atlas/Campaspe Project (Cristal) Mineral sands 200 Development Application Balranald West/Nepean (Iluka) Mineral sands 300 Development Application Dubbo Zirconia Project (Alkane Resources) Zirconia, Yttrium, Tantalum, Niobium 800 Development Application Hawsons Magnetite Prospect (Carpentaria Exploration ) Magnetite 1500 Development Application Kempfield (Argent Minerals) Ag, barite 20 Development Application McPhillamys/Moorilda (Regis Resources) Au (Zn, Ag) 70 Development Application Mallee Bull (Peel Mining) Base metals 100 Development Application Mineral Hill/Parkers Hill (Kimberley metals) Cu (base metals) 30 Development Application Mineral Hill/Pearse South (Kimberley metals) Au, Ag 15 Development Application Nandewar (ADE Environmental) Diatomite 15 Development Application North Mine Deeps (Perilya) Base metals 100 Development Application Northparkes Extension (Rio Tinto) Cu, Au, Ag 800 Development Application Nyngan (EMC Metals Corp) Sc 100 Development Application Woodlawn (TriAusMin) Base metals, Au 150 Development Application Bowdens (Kingsgate) Silver 75 Advanced exploration Bungonia Bauxite (ABX) Bauxite 75 Advanced exploration Cobar/Main Lines (Eastern Iron) Channel iron 100 Advanced exploration Copper Hill (Golden Cross Resources) Cu (Au) 330 Advanced exploration Kingsgate (Auzex Resources) Mo, Bi 80 Advanced exploration Lewis Ponds (TriAusMin) Base metals, Au, Ag 30 Advanced exploration Nymagee (YTC Resources) Au, base metals 50 Advanced exploration Owendale (Platina) Pt (Sc) 50 Advanced exploration Peelwood North (Sultan Corporation) Ag, base metals 15 Advanced exploration Thackaringa (Broken Hill Prospecting) Co 50 Advanced exploration Tottenham (Standard Iron) Fe 100 Advanced exploration Tritton/Avoca Tank (Straits Resources) Base metals, Au, Ag 20 Advanced exploration Young (Jervois Mining) Ni (Co) 45 Advanced exploration Flying Doctor (Perilya Broken Hill Limited) Base metals 40 Recently Approved Hera (YTC Resources) Au (base metals) 100 Recently Approved Mt Boppy (Polymetals Mining Services) Au,Ag 40 Recently Approved Potosi/Silver Peak (Perilya) Base metals 60 Recently Approved Tomingley (Alkane Resources) Au 40 Recently Approved Wonawinta (Cobar Consolidated Resources/CBH Resourc es) Ag 30 Recently Approved Total (broad estimates only) 5530 Resources opportunities - gas

PETROLEUM Estimated Capital $M

AGL Gloucester ProjectCSG (AGL) wells/power station160 Recently Approved AGL Hunter Project (AGL)CSG wells 100 Advanced Exploration Basin Gas (Santos)CSG wells / pipeline1000 Advanced Exploration Casino (Metgasco) CSG wells/power station50 Advanced Exploration AGL Camden Stage 3 (AGL)CSG wells 100 Suspended Developmnet Application Totals (broad estimates only) 1410 Resources opportunities - renewables

Renewable energy Projects Pipeline Chipping Norton Waste to Energy Biomass Menai Woodlawn Bioreactor(s) Biomass Goulburn Eastern Creek Energy from Waste Facility Biomass Mount Druitt Bindaree Beef Abattoir Rendering Plant and Biodigestor Plant Biomass Northern Tablelands Hunter Valley Geothermal Power Project Geothermal Upper Hunter Inglegreen biogas and gas Hybrid biogas/gas Barwon Blayney gas/wind hybrid project Hybrid gas and wind Orange, Blayney and Cabonne Kyoto Energy Park-mini hydro plant Hydro power Upper Hunter Milton Water Treatment Plant hydro Hydro power South Coast Lucas Heights Alternative Waste Technology Landfill Waste Landfill gas Menai Broken Hill Solar Farm Solar energy Murray-Darling Capital Solar Farm Solar energy City of Sydney 2MW solar project Solar energy Sydney City Dubbo Solar One Project Solar energy Dubbo Darlington Point Solar Solar energy Darlington Point Molong Solar One Project Solar energy Molong Kyoto Energy Park-solar photovoltaic plant Solar energy Upper Hunter Manildra Solar Farm Solar energy Orange Moree BP Solar Farm Solar energy Barwon Moree Solar Farm Solar energy Barwon Nyngan Solar Plant Solar energy Barwon Mugga Lane Solar Facility Solar energy ACT Mount Majura Solar Farm Solar energy ACT Royalla Solar PV Generating Facility Solar energy ACT OneSun Capital Solar Farm Solar energy ACT CSIRO Solar Thermal Storage Facility Solar thermal Port Stephens Resources opportunities – renewables (continued) Renewable energy Projects Pipeline Black Springs Wind Farm Wind energy Bathurst Boco Rock Wind energy Monaro Bodanora Wind Farm Wind energy Orange Capital II Wind Farm Wind energy Monaro Collector Wind Farm Wind energy Burrinjuck/Goulburn Conroy’s Gap Wind Farm Wind energy Burrinjuck Crookwell 3 Wind Farm Wind energy Burrinjuck Crookwell II Wind Farm Wind energy Burrinjuck Crudine Ridge Wind Farm Wind energy Bathurst Deepwater Wind Farm Wind energy Northern Tablelands Eden Wind Farm Wind energy Bega Flyers Creek Wind Farm Wind energy Bathurst Glenn Innes Wind Farm Wind energy Northern Tablelands Gullen Range Wind Farm Wind energy Burrinjuck Kyoto Energy Park-wind farm Wind energy Upper Hunter Liverpool Range Wind Farm Wind energy Barwon, Upper Hunter, Orange Paling Yards Wind Farm Wind energy Bathurst Rugby Wind Farm Wind energy Burrinjuck Rye Park Wind Farm Wind energy Burrinjuck Sapphire Wind Farm Wind energy Northern Tablelands Silverton/ Broken Hill Wind Farm Wind energy Murray-Darling Taralga Wind Farm Wind energy Burrinjuck Uungula Wind Farm Wind energy Orange Yass Wind Farm Wind energy Burrinjuck Biala Wind Farm Wind energy Burrinjuck Woolbrook Wind Farm Wind energy Northern Tablelands White Rock Wind Farm Wind energy Northern Tablelands Jupiter Wind Farm Wind energy Goulburn and Monaro Bango Wind Farm Wind energy Burrinjuck Initiatives to encourage exploration investment in NSW Uranium

 NSW allows uranium exploration after 26 years  Expressions of interest in applying for ELs for Uranium in NSW under review  ELs to be granted based on merit of proposed work  Potential U Deposit types:  Alkaline intrusive or extrusive (Broken Hill, Lachlan, New England)  Sandstone hosted (Gunnedah, Surat, Eromanga)  Palaeochannel hosted (Broken Hill, Eromanga, Murray) Contacts

 Regional Mr Chris Hanger – Director, Investment & Export Services Phone: +61 2 9338 6780. Email: [email protected]

 Agribusiness Mr Ian Sanders – Leader, International Engagement , Department of Primary Industries Phone: +61 2 6391 3386. Email: [email protected]

 Resources Mr Charles Dowsett – Director, Industry Investment Attraction & Development, Resources & Energy Phone +61 2 8281 7309. Email: [email protected] NSW briefing to Chinese Consulate-General & Banks