QUEENSLAND EXPLORATION COUNCIL QUPEX LUNCH | 9 FEB 2021 QEC Chair, Kim Wainwright QEC Deputy Chair, Stephen Kelemen QEC MEMBERS QEC SPONSORS 91 MEMBERS World-leading Industry experts resources across a range companies of fields 2 QEC MEMBERS Aberdare Collieries Pty Ltd Aeris Resources Limited Anglo American Aquila Resources Ltd Armour Energy Arrow Energy AustChina Holdings Limited Austex Mining Australia Pacific LNG Australian Drilling Industry AXIS Minerals Pty Ltd Baralaba Coal BDO Bengal Coal Pty Ltd Association Ltd Company Ltd Bengal Energy BHP Billiton Mitsubishi Alliance Blue Energy Bowen Coking Coal Ltd Bruce Resource Chinova Resources ConocoPhillips Consultants Copper Mountain Mining Pty Coronado Curragh Pty Ltd Glencore Coal Department of Resources Diatreme Resources Evolution Mining EY Ltd Limited Fitzroy Australia Resources GeoDrill Australia Incitec Pivot Limited Glencore Copper Glencore Zinc Golding Contractors Pty Ltd GVK HSE Mining Pty Ltd Idemitsu Australia Resources Pty Marubeni Coal Pty Ltd ITOCHU Minerals and Energy Jellinbah Resources Pty KBI Pty Ltd Kestrel Coal Resources Pty Ltd Ltd - Ensham Resources of Australia Ltd Laramide Resources Ltd Map to Mine Mitsui Coal Holdings Pty Ltd Mastermyne Group Limited McCullough Robertson Metro Mining Limited Michael O'Flynn Resource Consulting Pty Ltd Millmerran Power Mitsubishi Development Pty Ltd Nitro Solutions Pty Ltd MMG Limited Morgans Financial Multicom Resources Ltd New Century Reso urces Management Pty Ltd Limited New Hope Group Ltd Newmont Australia QEM Noosa Mining Conference Origin Energy Peabody Energy Australia Pembroke Resources Mining Pty Coal Pty Ltd Ltd Perry Projects QCoal Pty Ltd Santos QER Queensland Coal Red Metal Limited Rio Tinto Investments ROM Resources Round Oak Minerals Pty Ltd Sumisho Coal Australia Senex Energy Shell Australia Sojitz Blue Pty Ltd South32 Cannington Holdings Pty Ltd Stanmore Coal State Gas Limited Westside Corporation Synergies Economic TerraCom Australia Thiess Pty Ltd Tri-Star Group Consulting Pty Ltd U & D Mining Industry Vitrinite Pty Ltd Whitehaven Coal Limited Xplore Resources Pty Yancoal Australia Ltd (Australia) Pty Ltd Ltd Explorer/producer Service providers Other members Government oil/gas members 3 EXPLORATION SCORECARD Queensland’s exploration report card • How does the Scorecard do this? → Focused analysis of key exploration indicators, driven by: o Queensland’s resource prospectivity and endowment; o the price of key commodities; o explorer and investor confidence; and o policy and regulatory stability. 4 2020 SCORECARD SENTIMENT Highest scoring categories: • Pre-competitive geoscience data • Resource prospectivity and endowment Biggest concerns • COVID-19 related factors • Conduct and compensation agreements • Policy uncertainty • Environmental regulations • Access to investment capital Strong improvement over 10 years across • exploration permit processes • departmental assistance; and • pre-competitive geoscientific data. 5 2020 SCORECARD – PETROLEUM Petroleum response was comparatively much more positive on land available for exploration than other commodities 6 2020 SCORECARD – PETROLEUM Petroleum responses much more negative on investment capital & royalty/tax rate 7 EXPLORATION $ Million EXPENDITURE 100.0 90.0 80.0 70.0 Sept 2020 quarter - highest since 2015 60.0 50.0 40.0 Global average benchmark LNG prices and Queensland Petroleum 30.0 Exploration spend, 2002-03 to 2019–20 20.0 10.0 0.0 Jul-2016 Jul-2017 Jul-2018 Jul-2019 Jul-2020 Jan-2016 Jan-2017 Jan-2018 Jan-2019 Jan-2020 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Nov-2015 Nov-2016 Nov-2017 Nov-2018 Nov-2019 Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020 May-2016 May-2017 May-2018 May-2019 May-2020 ABS Exploration Expenditure data - https://www.abs.gov.au/statistics/industry/mining/mineral-and-petroleum-exploration- australia/latest-release#petroleum-exploration 8 LNG PRICE SHIFTING COVID-19’s impact on demand has driven the Scorecard’s benchmark Japanese LNG price to a 20-year low Now seeing Asian LNG price increase again ACCC LNG netback pricing chart - https://www.accc.gov.au/regulated- infrastructure/energy/gas-inquiry-2017-2025/lng-netback-price-series 9 HYDROGEN’S RENAISSANCE 2019 Queensland’s first hydrogen export (albeit a boutique volume) Queensland’s $19 million hydrogen strategy aims to build on: ▪ * Queensland’s petroleum expertise; ▪ * network of gas pipelines; ▪ * experience in building a world-class LNG export industry in Gladstone; ▪ * growing fleet of renewable energy. 2020 Queensland’s first A/Minister for Hydrogen Photo credit: Queensland’s Hydrogen Strategy, May 2019 10 QUEENSLAND RESOURCES & EXPLORATION GATEWAY 11 CROSS-INDUSTRY SKILLS 12 ANNUAL QEC TECHNICAL FORUM “EXPLORATION INITIATIVES FOR THE FUTURE” 19 February - Stamford Plaza • Focussed on exploration INNOVATION • OPPORTUNITY to share latest information and technology in the exploration field Key topics: • Collaborative Exploration Imitative results • Critical Minerals • Lessons from the field • Hydrogen, how we will do it? Register via: https://qurex.com.au/resources-events JOIN US For more information about joining visit www.queenslandexploration.com.au and download the membership proposal.