MIW METS Industry Capability and Supply Chain Study Prepared for the MIW METS Export Hub by Lytton Advisory Pty Ltd September 2020 Acknowledgments Lytton Advisory acknowledges the assistance of Dean Kirkwood, MIW METS Export Hub Manager at RIN, and feedback from the Project Advisory Group. Disclaimer This Report has been prepared solely for Lytton Advisory’s client. While every effort has been made to ensure the accuracy of this document and any attachments, the uncertain nature of economic data, forecasting and analysis means that Lytton Advisory is unable to make any warranties concerning the information contained herein. Lytton Advisory, its employees and agents disclaim liability for any loss or damage that may arise as a consequence of any person relying on the information contained in this document and any attachments. © Lytton Advisory. All rights reserved. This work is copyright. 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Lytton Advisory ABN 61 825 134 215 www.lyttonadvisory.com.au BRISBANE PO Box 5676 Manly Queensland 4179 E: [email protected] For information on this report please contact Craig Lawrence T: 0421 786 486 E: [email protected] Report prepared by (in alphabetical order): Hamish Bain, Nick Behrens, Sue Holz, Craig Lawrence and Gene Tunny, with research assistance provided by Norman Lee and Ben Scott Document Control Version Date Approved Approved By Description 1.0 30/06/2020 Craig Lawrence Draft report 2.0 05/08/2020 Craig Lawrence Draft final report 2.1 01/09/2020 Craig Lawrence Final report 2 Table of Contents Table of Contents ............................................................................................................. 3 List of Tables ................................................................................................................... 8 List of Figures .................................................................................................................. 8 Abbreviations ................................................................................................................. 11 Executive Summary ........................................................................................................ 13 Relevance to the MIW region ...................................................................................... 13 Capabilities of the MIW METS sector.......................................................................... 13 Overview ................................................................................................................ 13 Accumulated knowledge .......................................................................................... 14 Supporting networks and infrastructure ..................................................................... 14 Highly specialised businesses ................................................................................... 15 Commitment to R&D .............................................................................................. 16 Broad export base with a focus on core engineering design, manufacturing, and project management............................................................................................................ 16 Examples of innovative METS businesses with niche capabilities .................................. 17 Mastermyne ............................................................................................................ 17 4PS Software .......................................................................................................... 18 Linked Group Services ............................................................................................ 18 Desktop Analysis ........................................................................................................ 18 Industry Literature Review....................................................................................... 18 Infrastructure .......................................................................................................... 19 Roads ................................................................................................................. 19 Port..................................................................................................................... 19 Telecommunications ............................................................................................ 20 International Market Opportunities ........................................................................... 21 Industry Resilience in the long term from COVID-19 Pandemic ................................. 22 Stakeholder Consultations ........................................................................................... 22 3 Findings ..................................................................................................................... 24 Desktop analysis and pilot survey ............................................................................. 24 Survey findings ....................................................................................................... 24 Recommendations....................................................................................................... 25 1. Introduction ................................................................................................................ 27 1.1 Scope of work ....................................................................................................... 27 1.2 Alignment with the scope of work .......................................................................... 27 1.3 Structure of the report ............................................................................................ 29 2. Background ................................................................................................................ 30 2.1 Overview of the MIW region ................................................................................. 30 Mackay................................................................................................................... 30 Isaac ....................................................................................................................... 30 Whitsunday............................................................................................................. 30 2.2 The Mackay, Isaac and Whitsunday Economy......................................................... 31 2.3 Resources sector in Queensland and the MIW region ............................................... 34 Overview ................................................................................................................ 34 Significance of METS to Queensland coal industry and wider state economy .............. 34 Significance to the MIW region................................................................................ 35 Outlook for the mining sector ................................................................................... 37 MIW Resources Sector Outlook ............................................................................... 39 Summary ................................................................................................................ 39 2.4 METS in the coal sector......................................................................................... 40 Overview ................................................................................................................ 40 Strengths................................................................................................................. 41 Summary ................................................................................................................ 42 3. Critical issues identified in desktop review and stakeholder consultations ....................... 43 3.1 Current and future needs of the industry based on initial desktop review ................... 43 3.2 Issues and opportunities for the METS sector in MIW region ................................... 50 Opportunities for local METS SMEs in the region to export goods and services .......... 50 Data driven mining decisions ................................................................................... 50 4 Mining automation and robotics ............................................................................... 51 Advanced extraction ................................................................................................ 51 Exploration ............................................................................................................. 52 Social and environmental sustainability .................................................................... 52 Innovation delivering cost reductions........................................................................ 53 Training and Knowledge Exports ............................................................................. 53 New Markets........................................................................................................... 54 Domestic supply opportunities ................................................................................. 54 International opportunities ......................................................................................