DG enews Dec 2016 edition

From the Director General

As we rapidly approach the end of what has been a productive and challenging 2016, it is time again to welcome readers to the final edition of the DG's eNews for the year.
In this edition we take a look at some of the latest figures compiled by my department for the 2015-2016 financial year.
The Western Australian Mineral and Petroleum Statistics Digest 2015-16 has been restructured to give a broader overview of the activity and performance of the State’s resources sector while still providing more detailed commentary around our various commodities.

The 61st edition includes a greater level of analysis and commentary to the digest with DMP’s statistical role reaching as far back as 1896.

Encouragingly, mineral exploration activity applications in WA are up by 25 per cent since the third quarter last year, and exploration activity in 2016 to date has showed positive signs of recovery from the lower levels of planned activity in 2015.

Western Australia has again led mining investment in the country, attracting 66 per cent of the nation’s total mining investment in 2015-16, according to the latest figures released by the Australian Bureau of Statistics (ABS).

In what has been a difficult year for the resources industry following the decline of many commodity prices, the standout performance of gold and a record volume of iron ore exports have offered some reprieve.

We also take a look at WA’s whole-of-government regulatory framework for shale and tight gas which has been outlined in a document prepared in collaboration with, and endorsed by, government agencies charged with assessing and regulating petroleum resources.

The framework will assist industry, other stakeholders and the public to understand the robust regulatory assessment, approval and compliance processes for shale and tight gas projects as well as other petroleum projects.

This year the department has been acknowledged in a number of awards, including the prestigious Premier’s Award in the Western Australia in Asia category, for consistently promoting a strong relationship between Western Australia and China.

DMP won the award for its submission on strategic engagement with China’s resource sector providing the industry with an insight into WA’s policy, regulatory and pre-competitive geoscience and resources information systems, allowing them to make better investment decisions.

The DG’s eNews is a valuable tool for anyone interested in the future of the Western Australian mining and petroleum industry and provides updates on the latest activities of the department, so please recommend it to your industry colleagues.

Finally I would like to take this opportunity to wish our readers a safe and happy festive season and all the best for the New Year.

Dr Tim Griffin
Acting Director General
Department of Mines and Petroleum

New look DMP 2015-16 statistics digest out now

A new and more reader-friendly Western Australian Mineral and Petroleum Statistics Digest 2015-16 was released last month and is now available on the Department of Mines and Petroleum’s (DMP) website.

Introducing this year’s digest, DMP Acting Director General Dr Tim Griffin identified highlights of 2015-16.

“In December 2015, Hancock Prospecting’s Roy Hill project achieved its first ore shipment and in March 2016, the US$54 billion Chevron-operated Gorgon project made its first LNG shipment,” he said.

“Gorgon is the largest single resources project in Australian history and one of the largest natural gas projects in the world.

“These projects will drive economic benefits for Western Australians well into the future.”

Dr Griffin said that Western Australia’s gold sector had remained strong, leading the way in exploration and growth.

“This can be largely attributed to the commodity’s monetary and metal value in times of economic uncertainty,” he said.

“The mineral and petroleum industry has also begun a renewed focus on innovation, as companies look to technological solutions to reduce costs and maintain the safety of operations.

“The use of driverless trucks, hosting of ‘hackathons’ to foster open-source collaboration and remote-controlled devices for inspection activities are examples of innovation in practice.

“As always, a publication such as this requires input from a range of organisations and I would like to thank the Commonwealth Department of Industry Innovation and Science, the Australian Bureau of Statistics and the Western Australian Department of Treasury for their contributions.”

The 61st edition of the digest has been restructured to give a broader overview of the activity and performance of Western Australia’s resources sector, while still providing more detailed commentary around the State’s various commodities.

The latest digest includes a greater level of analysis and commentary about DMP’s statistical role reaching as far back as 1896.

In terms of DMP’s overall statistical function, the most noticeable change was the whittling down of 16 resources data files to just three.

Users can select the data they are after in either a calendar or financial year with a number of tables and graphs that respond dynamically, based on what the user selects.

Using the data has become a lot more user friendly giving access to a larger range of historical data than previously.

The three resource data files are:

1. Major commodities: this file contains information about the scale and scope of Western Australia’s mineral and petroleum industry, as well as detailed information about the State’s major commodities, such as export value and sales value in comparison to other jurisdictions.
2. Economic indicators: information about how the State’s mineral and petroleum industry contributes to the economy through exploration and investment, royalty receipts and employment.
3. Spatial and regional: information about mineral and petroleum tenements and how the value of mineral and petroleum sales is distributed across the State.

WA mineral exploration applications continue to increase

Mineral exploration activity applications in Western Australia were up by 25 per cent since this time last year, according to DMP’s most recent approvals performance report.

DMP acting Director General Dr Tim Griffin said that despite the current uncertain economic times this demonstrated the State continues to be an attractive destination for exploration.

Third quarter data for 2016 shows that Programme of Work (PoW) applications have increased consecutively each quarter for the last twelve months, rising from 400 to 500 applications received since 1 October 2015.

Exploration activity in 2016 to date has showed positive signs of recovery from the lower levels of planned activity in 2015.

Dr Griffin said the consecutive increase in PoW applications over the last year was very encouraging news for the State and the recent results show the number of mineral prospecting licence applications received has grown from 359 last quarter to 653 this quarter.

“This surge in the number of prospecting licence applications supports the increase seen in the number of exploration activities received by the department,” he said.

The department’s approvals performance continues to remain high this quarter with an average of 98 per cent of all applications approved within the target timeframes.

Dr Griffin said the number of approvals had exceeded DMP’s business target of finalising more than 80 per cent of all applications received within target timelines.

The results also show that during the third quarter of 2016, the department finalised:

• 99 per cent of mineral prospecting licence applications within 65 business days.
• 98 per cent of mineral exploration Programme of Work applications within 30 business days.
• 100 per cent of petroleum survey applications finalised within 40 business days.

You can read the full report on our website.

WA mining and petroleum investment and exploration

Western Australia has again led mining investment in Australia, attracting 66 per cent of the nation’s total mining investment in 2015-16, according to the latest figures released by the Australian Bureau of Statistics (ABS).

In what has been a difficult year for the resources industry following the decline of many commodity prices, the standout performance of gold and a record volume of iron ore exports have offered some reprieve.

Gold exploration expenditure increased a massive 41 per cent from $274.3 million in the 2014-15 financial year to $385.9 million in 2015-16.

Copper exploration was another standout with an increase in 2015-16 of 57 per cent to reach $42.4 million compared to expenditure of $33.5 million for the previous financial year.

As a result the combined copper-lead-zinc-silver exploration in Western Australia increased by 7.6 per cent to $52.5 million in 2015-16, taking some of the brunt off the decline in heavy minerals exploration down 29 per cent to $10 million, and nickel-cobalt down 40.4 per cent to $46.8 million.

While exploration expenditure for iron ore in the State decreased by 31 per cent in the period to $28.3 million, record export tonnage was reached during 2015-16 and a number of mines expanded operations.

However, to balance these declines, there were increases in the June 2016 quarterly exploration expenditure for iron ore and heavy mineral sands.

Drilling activity

On another positive note drilling activity throughout Australia in 2015–16 increased slightly, reversing the decline beginning in 2012–13. Key points included:

• Metres drilled during 2015–16 in Australia increased by 6.5 per cent (by 0.388 million metres) to a total of 6.351 million metres (Fig. 12).

• The estimated mineral exploration drilling in Western Australia also increased during 2015–16 by 12 per cent (0.423 million metres) to a total of 3.896 million metres (based on Western Australia’s proportion of total Australian exploration expenditure for each year) (Fig. 12).

• Mineral exploration drilling for new deposits (or in greenfields areas) in Australia decreased by 3.9 per cent, from 1.569 million metres in 2014–15 to 1.508 million metres in 2015–16.

• Mineral exploration drilling at existing deposits (or in brownfields areas) in Australia increased by 10 per cent, from 4.395 million metres in 2014–15 to 4.844 million metres in 2015–16.

Major Projects

In monitoring resource investment activity in Western Australia, DMP also collects information on mineral and petroleum projects to estimate actual and possible investment.  Where possible, information is collated relating to expected capital expenditure, project timing and employment during the construction and operation phases.

A total of $46 billion has been identified as planned or possible projects in coming years, however, the value of investment in major projects is expected to drop in 2017 as projects under construction stage of development are completed.

Land Access Working Group established to strengthen WA processes

Identifying opportunities to further strengthen Western Australia’s land access processes for private land will be the focus of a new working group formed as part of a Parliamentary Inquiry recommendation.

The Western Australian Land Access Working Group will look at processes regarding land access agreements for private land across the mining and petroleum sectors within Western Australia.

The formation of the working group is in response to a recommendation from the Parliamentary Standing Committee on Environment and Public Affairs inquiry into the ‘Implications for Western Australia of Hydraulic Fracturing for Unconventional Gas’.

“The role of the working group is to provide advice on strengthening the mechanisms for negotiating land access agreements for private land, including the use of independent mediation,” Department of Mines and Petroleum (DMP) acting Director General Dr Tim Griffin said.

He said the working group would consider the need for changes to the model ‘Farming Land Access Agreement’ developed by the petroleum industry and farmer groups in October 2015.

“The working group will further consider whether a statutory framework may be necessary in the future,” Dr Griffin said.

He said the establishment of the working group also provided an opportunity to extend consideration of land access issues for private land across the wider resources sector, beyond onshore shale and tight gas.

Prior to the first meeting, a workshop was hosted by DMP in October to consider and provide feedback on the proposed objectives, scope and membership of the working group.

Representatives from peak industry bodies and farmer organisations, the Western Australian Local Government Association, the Conservation Council of Western Australia and various State Government agencies attended the workshop and provided valuable input.

Final representation on the working group has been drawn from groups identified as key stakeholders in land access negotiation processes for private land.

As part of its considerations, the group will consult with a broader range of stakeholders to identify any further land access issues.

This consultation will include engagement with stakeholders in regional Western Australia.

“A final report will be prepared for the State Government, which will include its findings and recommendations relating to the model Farming Land Access Agreement and the need for a statutory framework,” Dr Griffin said.

Further information is available on DMP’s website at www.dmp.wa.gov.au or by email to LandAccessWA@dmp.wa.gov.au

Shale and tight gas future guided by regulatory framework

WA’s whole-of-government regulatory framework for shale and tight gas has been outlined in a document prepared in collaboration with, and endorsed by, government agencies charged with assessing and regulating petroleum resources.

The ‘Guide to the Regulatory Framework for Shale and Tight Gas in Western Australia’ was developed in collaboration with other agencies also responsible for regulating petroleum activities and released on the DMP website in October.

DMP acting Director General Dr Tim Griffin said, as the lead agency for regulating the resources sector in Western Australia, DMP coordinated the involvement by the other agencies.

He said the framework would assist industry, other stakeholders and the public to understand the robust regulatory assessment, approval and compliance processes for shale and tight gas projects as well as other petroleum projects.

The document was endorsed by the Environment Protection Authority, Office of the Environmental Protection Authority, and the Departments of Water, Health, Environment Regulation, Aboriginal Affairs, Parks and Wildlife and Planning.

Dr Griffin said the multi-agency collaborative approach was a key element in the development of the State’s petroleum resources.

He said while WA’s shale and tight gas industry was in the early stages of exploration, with any significant commercial production predicted to be about five to 10 years away, it is important that there is clarity for industry and the public about the legislation regarding the industry.

“The State Government and its regulatory agencies are united by a common and overarching responsibility to manage risk, whether to the natural environment, human health or the amenity of communities,” Dr Griffin said.

Department of Water Executive Director Policy and Innovation Tad Bagdon said the early consideration of water related issues in the proposal process had been a significant achievement of the framework development, in line with public expectations.

“The Department of Water’s advice on water is used by DMP and the Environmental Protection Authority to work out what level of environmental assessment is needed on each proposal.

“By building in processes for early and sufficient consideration, the Department of Water makes sure that enough scientific information is available about risks to water resources before decisions are made by the agencies.”

New regulations for the petroleum and geothermal industries that came into effect on 1 July 2015 are now the most stringent in Australia.

The framework sets out the regulatory requirements and expectations of the State Government and covers the need for industry to consult and engage with the community in a timely and ongoing manner throughout the life of a project.

The document is available on the DMP website.

Protecting heritage and environment values in petroleum acreage release process

The Department of Mines and Petroleum (DMP) has recently made the process for acreage release for petroleum exploration more transparent and publicly accessible.

DMP Petroleum Division Executive Director Jeff Haworth said that the department carefully assesses and regulates any exploration activity to be conducted in environmentally or culturally sensitive areas, in consultation with other government departments and agencies.

“The department has already declared a number of ‘no go’ areas in petroleum exploration permits that intersect some parts of the Swan Valley,” he said.

“It’s also important for communities to know that the release of acreage does not automatically mean that exploration will result in the development of a gas field, or that hydraulic fracture stimulation, or ‘fraccing’, will be used.

“Companies looking for oil and gas must go through an extensive and rigorous approvals process before they can start any exploration activity and, even then, there is no guarantee that the exploration will be successful or that any further activities will be approved.”

In a recent title grant, Southern Sky Energy and Macallum Group were given a direction by the Minister for Mines and Petroleum over Exploration Permit (EP) 494. The direction prohibits petroleum exploration operations that would interfere with the surface of the land, over an area of the Exploration Permit that overlaps a portion of the land covered by the Swan Valley Planning Act 1995.

“No applications for petroleum exploration have yet been made, but this direction is in place to provide certainty for the community that this significant primary produce and tourist area is protected from on-ground activity,” Mr Haworth said.

It is the third time in recent years that the State Government has taken steps to exclude an area from petroleum exploration.

In December 2014, at the request of the permit holder, DMP amended a Mid West region exploration permit to exclude an area that extended over sections of the popular tourist attraction, the Pinnacles.

Similarly in 2011, at the request of Buru Energy, areas of the newly formed Roebuck Bay marine reserve were excluded from exploration, guaranteeing continuing custodianship by the traditional owners, the Yawuru people.

In addition to directions, Special Notices may be published when acreage is released. These notices recognise iconic conservation estates, national parks and areas of cultural significance, and restrict access through conditions.

“Special Notices describe that entry for petroleum exploration purposes is not automatic and may be subject to title conditions and the consent and approval of the Minister,” Mr Haworth said.

“We now see the need to make these notices more widely available to industry, and the public, through the DMP website,” he said.

The first release of Special Notices on the DMP website is in relation to the 2016 acreage release, which opened areas for bidding in the Kimberley and the interior of the State – six in the Kimberley (Canning Basin) and eight in the Interior (Officer Basin) – ranging in size from 1,770 to more than 8,000 square kilometres.

Mr Haworth said the department had not granted any exploration permits, as bidding for the 2016 release areas is still open until 4pm (AWST) on 9 March 2017. After bidding closes, all applications for the areas will be assessed and exploration permits may or may not be granted.

“Any future successful applicant for the release areas, or any other petroleum application area, is subject to State and national Native Title, conservation and environmental protection and heritage laws, and preferred applicants must negotiate and have agreements in place with Native Title parties before the title area can be granted,” he said.

Mr Haworth said DMP had also recently made it clear that hydraulic fracture stimulation would not be used in a potential petroleum exploration area southeast of the City of Bunbury.

Bunbury Energy Pty Ltd had told the department that its plans for the area were for conventional petroleum exploration that would not include hydraulic fracture stimulation.

The release area, which is yet to be granted, includes 11 blocks extending across the Shires of Capel, Dardanup and Donnybrook-Balingup, as well as parts of the City of Bunbury, and slightly overlapping the City of Busselton.

Mr Haworth said the geology of the area did not support the hydraulic fracture stimulation process.

“Previous attempts at Whicher Range have highlighted that hydraulic fracture stimulation has not been successful, and was further supported by the Western Australian Energy Alliance’s 2012 Whicher Range Tight Gas Sands Study report,” he said.

“The study, conducted by scientists from the University of WA, Curtin University and CSIRO, identified that the target sands in this area were not suitable for the hydraulic fracture stimulation process and, in fact, utilising this technique would actually inhibit the extraction of any gas.”

“Western Australia has a stringent, multi-agency approvals process, which ensures potential environmental impacts of mining and petroleum activities, including hydraulic fracture stimulation, are carefully considered before activity can begin,” Mr Haworth said.

The strength of the regulatory process to ensure shale and tight gas projects are developed responsibly is provided by the Guide to the Regulatory Framework for Shale and Tight Gas in Western Australian, A Whole-of-Government Approach, which has been endorsed by the nine lead agencies responsible for regulating shale and tight gas.

New guidelines help deliver more effective groundwater monitoring programs

The Department of Mines and Petroleum (DMP) and the Department of Water (DoW) have worked in collaboration during the past two years to develop the Guideline for Groundwater Monitoring in the Onshore Petroleum and Geothermal Industry – August 2016.

The new guideline aims to help petroleum and geothermal operators develop effective groundwater monitoring programs and encourage industry best practice.

The guideline specifically addresses:

• activities requiring groundwater monitoring
• review of existing information
• designing a monitoring program
• interpreting monitoring data
• information to be provided to DMP and DoW.

The guideline demonstrates to local communities, stakeholders and landholders that groundwater resources are actively monitored and are not being impacted by onshore petroleum activities.

An Information Sheet for Landowners answering commonly asked questions about groundwater monitoring associated with onshore petroleum activities, is available on the DMP website.

A draft guideline was released early this year for an eight-week public feedback period. All submissions were considered in finalising the Guideline and DMP’s Guideline for Groundwater Monitoring in the Onshore Petroleum and Geothermal Industry - Response to Comments was been released and is available on the website.

Onshore Oil Spill Contingency Plan guidelines

Earlier this year DMP published the Guideline for the Development of an Onshore Oil Spill Contingency Plan as part of its Reforming Environmental Regulation program.
The guideline’s purpose is to provide assistance to petroleum operators in the development of their onshore Oil Spill Contingency Plan (OSCP). The guideline helps to:

• ensure that operators are aware of their legal obligations under petroleum legislation
• satisfy the requirements of the Petroleum and Geothermal Energy Resources (Environment) Regulations 2012 and the Petroleum Pipelines (Environment) Regulations 2012
• satisfy the expectations of DMP
• provide a practical reference tool for personnel responding to an onshore oil spill incident
• assist in ensuring that best practice management approaches are adopted.

Under regulation 15(10) of the Petroleum and Geothermal Energy Resources (Environment) Regulations 2012 and regulation 15(8) of the Petroleum Pipelines (Environment) Regulations 2012, an OSCP is required to be included in the implementation strategy component of an environment plan.

The regulations require an OSCP to set out details regarding:

• preparations to be made for the possibility of an oil spill
• emergency response arrangements to be implemented if an oil spill occurs
• recovery arrangements to be implemented if an oil spill occurs
• current oil spill trajectory modelling that applies to the activity.

The operator is also required to conduct tests of the emergency response arrangements set out in the OSCP at specified intervals and describe the tests.

On 6 January 2016 the draft guideline was released for an eight-week public feedback period with submissions closing on 4 March 2016.

The Guideline for the Development of an Onshore Oil Spill Contingency Plan – Response to Comments report is available on the DMP website. Stakeholder comments and DMP responses have been grouped according to the relevant section of the guideline.

DMP would like to thank stakeholders for their considered feedback and for providing valuable input into the process.

Hitting the road to talk safety

The risk of getting caught, trapped or crushed was the focus of the 2016 Mines Safety Roadshow ‘pressing concerns’.

Presented by DMP’s Resources Safety Division, the event travelled to nine towns and cities across Western Australia during October and November.

Regional Inspector of Mines Doug Barclay helped coordinate the roadshows and said the theme was chosen to raise awareness of significant safety issues in the industry.

“These hazards are the greatest cause of fatalities and serious injuries within the mining industry and have accounted for 11 fatalities in Western Australia’s mining industry since 2012,” Mr Barclay said.

Mr Barclay said the roadshows were one of the department’s most important events to focus on and promote mines safety in WA.

“The roadshows target safety and health representatives and frontline supervisors and, by going out into the regions, we are able to meet with a large audience who may not have the opportunity to travel to Perth for similar forums,” Mr Barclay said.

“It is a not-to-be-missed opportunity for workers to meet and discuss common issues with their peers from other sites, as well as Mines Inspectors. It is a major networking opportunity for everyone involved in safety.

“It is also an important opportunity to highlight the work of the Resources Safety Division.”

This year almost 900 people registered to attend one of the 12 roadshows, about 200 more registrations than the 2015 event.

Mines Safety Director and State Mining Engineer Andrew Chaplyn said this year’s roadshow travelled to Kalgoorlie, Newman, Tom Price, Karratha, Port Hedland, Bunbury, Mandurah, Geraldton and Perth.

“This was the first time in some years that we’ve taken the roadshow to Tom Price and is indicative of the growth of the event in the past few years,” Mr Chaplyn said.

The roadshows also featured a special screening of the third instalment of the Know Your Hazards video series.

“The first instalment of videos was produced to coincide with the 2014 roadshow and, since then, the videos have been viewed more than 10,500 times,” Mr Chaplyn said.

“The 2016 roadshows also featured discussions on human factors, including safety culture, mental wellbeing and the role of safety and health representatives.”

Perth Core Library upgrade ensures its world class reputation

The $7.3 million upgrade of the Department of Mines and Petroleum’s (DMP) Perth Core Library has been completed on budget and on time.

“I’d like to congratulate everyone involved in this vitally important project,” acting Director General Dr Tim Griffin said after representing DMP at the opening ceremony
held last month.

Expansion works at the new facility have increased the core library storage area by 3500 square metres nearly doubling the number of pallets it can store from 8640 to more than 15,000.
The facility in Carlisle now also has a new covered viewing area that provides confidentiality, a dedicated temperature-controlled area to house the Hylogger spectral scanner used to analyse drill core, and a conference room.

Dr Griffin said that the storage upgrade had ruled out the possibility of the library running out of room for core samples.

“There has been a significant increase in supply, mainly attributable to the State Government’s Exploration Incentive Scheme’s (EIS) Co-Funded Drilling Program,” Dr Griffin said.

“This expansion will help to reduce waiting times for core viewing which have increased by about 300 per cent over the past decade.

“This is a proud day for DMP’s Geological Survey of Western Australia (GSWA).

“The upgrade guarantees the library’s contribution to geoscience and mineral and petroleum exploration and cements its status as a world-class geoscience resource.”

Dr Griffin foreshadowed expansion of DMP’s Joe Lord Core Library in Kalgoorlie, saying that DMP was considering plans to deal with the possibility that the Goldfields facility could become full in the next few years.

A feasibility report is being prepared on increasing the storage area for pallets of core samples by about 2200 square metres, doubling the library’s storage capacity.

Also under consideration is the enlargement of the external viewing area to allow the display up to 3 km of core at any one time.

“As part of its annual long-term asset management plan, DMP identified in 2016 that the Joe Lord Core Library at Kalgoorlie may reach its storage capacity in about 3-4 years,” Dr Griffin said.

“It depends on industry drilling activity, EIS co-funded drilling projects in the Kalgoorlie region, and GSWA’s decisions on which industry drill holes are strategically the most important to store in the long term.”

Fact file:

• The Perth Core Library came into official existence as a secure facility in 2003 but the Government of Western Australia has been storing core and cuttings on site ever since the first onshore petroleum well was drilled at Rough Range in 1953.
• The core library stores mineral and petroleum core and cuttings obtained from industry under various State and Commonwealth legislation and also houses geotechnical drilling and stratigraphic core and rock samples collected by the Geological Survey of Western Australia.
• The facility also operates as the western hub of the National Offshore Petroleum Data and Core Repository on behalf of National Offshore Petroleum Titles Administrator (NOPTA) and Geoscience Australia, and will store two-thirds of all Commonwealth-managed petroleum core from offshore drilling.
• The core library’s busiest year was 2015–16, when a record of 116,000 metres of core was laid out for viewing.
• The Joe Lord Core Library was officially opened by the then WA Premier Richard Court on 17 July 2000. Norman Moore was the Minister for Mines at the time.

Awards for Excellence spotlight industry’s contribution to communities

The importance of appreciating the lasting contributions of the resources sector to the people of Western Australia was stressed by Department of Mines and Petroleum (DMP) Acting Director General Dr Tim Griffin at last month’s Awards for Excellence ceremony.

“When you go home tonight, I hope you will talk to your friends and family about the often unnoticed work done by the resources sector for the benefit of our communities, particularly in regional Western Australia,” Dr Griffin said.

The awards night showcased DMP’s inaugural Community Partnership Resources Sector Award and celebrated a 25-year milestone for the annual Golden Gecko Awards for Environmental Excellence.

A community farm created by an iron ore company and an Indigenous organisation - Magnetite miner Karara Mining Limited and the Midwest Economic and Employment Development Aboriginal Corporation (MEEDAC) - took out the inaugural Community Partnership Award.

The selection committee commented that the company had far exceeded its social responsibility by forming a partnership with MEEDAC to create and run a sustainable commercial 2000-hectare farm called Innovation Park about 200km east of Geraldton.

The farm produces eggs, fruit and vegetables which are sold locally, back to the Karara mine site, and donated to the local food bank.

Innovation Park also provides training and employment opportunities locally, and to the broader community.

Dr Griffin said the Community Partnership Awards identified resources industry operators prepared to go beyond meeting their regulatory obligations to ensure they are delivering world best practice standards for a sustainable mining future.

"Th ere is strong community expectation that the highest standards will be adopted across WA’s resources sector to ensure health, safety and the environment are not compromised and the sector is sustainable for the benefit of generations to come," he said.

“Karara Mining Limited has demonstrated it is doing that while also building community confidence as responsible corporate citizens and showcasing the innovative and significant work that resources companies are undertaking to protect the environment and build confidence to gain a social licence to operate."

This year two companies were awarded a Golden Gecko. APA Group and Kingfisher Environmental Consulting were recognised for a program that monitored the endangered small marsupial, Sandhill Dunnart, and Strike Drilling Pty Ltd won for developing a drill rig that significantly reduced environmental impacts.

The selection committee commented that all entries were of a very high calibre and congratulated mining and petroleum industries for their innovation and setting new standards in environmental management.

Other awards presented during the evening included:

• Golden Gecko Certificate of Merit: Roy Hill Infrastructure Pty Ltd for a project to minimise the impact to mangroves in Port Hedland.
• Enduring Partnership Award: Rio Tinto Iron Ore and Scitech Discovery Centre.
• Community Partnership Merit Award: Cliffs Asia Pacific Iron Ore and Esperance Senior High School, Esperance Anglican Community School, Merredin College and Southern Cross District High School.
• Community Partnership Merit Award: Newmont Boddington Gold and Gnaala Karla Booja Native Title Claimants.
• The DMP’s Awards for Excellence night will now become an annual event showcasing the Community Partnership Resources Award and the Golden Gecko Award.

WA revealed as destination of choice for mining investment

Recently released statistics by the Department of Mines and Petroleum (DMP) show Western Australia continues to be the nation’s destination of choice for mining investment.

“During 2015-16 the State attracted 66 per cent of the nation’s total mining investment and Western Australia’s mineral and petroleum industry was valued at $87.9 billion,” DMP acting Director General Dr Tim Griffin said.

He said while the statistics show the value of the industry has decreased 12 per cent since last year, given the sector continues to experience challenging times, the findings show the State continues to attract the lion’s share of the nation’s mining investment.

While the total sales value of the minerals sector declined, the volume and size of the industry is at a record level. Iron ore sales volume reached a record 757 million tonnes from a total of 31 projects and remains the State’s most valuable commodity.

Dr Griffin said in addition, the value of the State’s gold sales had increased for the second consecutive year, bucking the trend to reach a record $10 billion.

“Western Australia had an estimated $97 billion of resource projects under construction and a total of $46 billion has been identified for possible future projects.”

For more information about the latest statistics, please visit our website.

DMP wins 'WA in Asia' Premier's Award

The Department of Mines and Petroleum (DMP) has received a prestigious Premier’s Award for consistently promoting a strong relationship between Western Australia and China.

DMP won the Western Australia in Asia category at an awards ceremony in Perth last month for its submission on Strategic Engagement with China’s Resource Sector.

The Premier's Awards, now in their 25th year, acknowledge excellence in public sector management.

DMP Acting Director General Dr Tim Griffin, who accepted the award from Premier Colin Barnett, said after the ceremony that the department had provided its Chinese partners with insight into WA’s policy, regulatory and pre-competitive geoscience and resources information systems, allowing them to make better investment decisions.

 “China is Western Australia’s largest trading partner so cooperation between the two nations at all levels of government is of great importance,” Dr Griffin said.

“This award underscores the importance of Memoranda of Understanding (MoUs) in recent years between DMP and China’s Ministry of Land and Resources (CMLR), particularly the MoU on Promotion of Investment between the State Government and the Chinese National Development and Reform Commission signed by Premier Barnett in 2011.”

Dr Griffin said that these agreements had deepened understandings and working relationships between the Minister for Mines and Petroleum and his Chinese Vice-Ministerial counterparts, CMLR and DMP, and geoscientists employed by the Chinese and WA governments.

“The agreements have also significantly benefited Western Australia’s and China’s economies,” he said.

Dr Griffin said that MoUs on Cooperation in the Fields of Training and Research Related to Land and Resources and Cooperation in Earth Sciences had contributed strongly to making Western Australia the destination of choice for responsible resource development.

Executive Director of the department’s Geological Survey of Western Australia (GSWA) Dr Rick Rogerson said DMP had a long history of engagement with China.

“Geologists from the predecessor agencies of DMP and CMLR began hosting exchange visits back in the 1980s,” he said.

“There was great interest in learning about how each regulated its resource sector and its use of geoscience information, and this led eventually to the signing of the MoUs in 2002.”

Dr Rogerson said that the department’s MoUs with China differed from similar agreements in other jurisdictions because they were made at the top level of the Chinese Government.
“Innovative use of the MOUs allowed DMP to visit resource departments, and State Owned Enterprises (SOEs) in China,” he said.

“On many occasions, information sharing resulted in investment inquiries and large investment stakes in some cases.”

Dr Rogerson said that the MoU between GSWA and the China Geological Survey had facilitated joint field work, specialist geochemical and isotopic workshops, and cooperation on geological mapping.

The MoU had also encouraged mineral investment by giving Chinese SOEs an insight into GSWA’s geological and resource information.

“This all definitely had a strong impact on investment decisions and is an excellent example of how the agreements have been so good for Western Australia’s economy,” he said.
Dr Rogerson also paid tribute to the continuing work by Investment Promotion Manager Dr Gaomai Trench.

Dr Trench has been officially recognised by the Chinese Government for her efforts in acting as a conduit between the resource sectors of China and Western Australia.

Emergency preparedness put to the test

Ensuring the resources industry is able to respond to onsite emergencies was the focus of an information session hosted by the Department of Mines and Petroleum in November.

DMP Acting Director General Dr Tim Griffin opened the information session and said it was an important opportunity for industry and the department to discuss incident management and emergency response capabilities.

"It is critical that all mining companies, especially those with remote underground sites, have risk-based emergency management systems in place," he said.

"This includes ensuring companies have the necessary resources for those systems and competent emergency response teams.

"The ultimate aim of the code is to offer a solid theoretical base on which companies can build the practical knowledge gained through training and events such as the Mining Emergency Response Competition (MERC)."

Dr Griffin said the evaluation tool provided benefits to industry and the department when reviewing emergency response exercises, and helps identify areas that need to be addressed.

The session included the launch of a draft code of practice Emergency preparedness for mines in Western Australia and an evaluation tool for assessing emergency training exercises at Major Hazard Facilities and other dangerous goods sites.

The draft code of practice is available for public comment until 3 February 2017.

The code aims to enhance the planning, implementation and maintenance of emergency systems and was coordinated by the department’s Resources Safety Division, with significant input from emergency response coordinators and trainers.

Industry is also being encouraged to provide the department with their feedback."

The evaluation tool was created to assist Major Hazard Facilities and other dangerous goods sites assess emergency response exercises.

This enables sites to gauge the adequacy of emergency response plans, how well they are implemented and what improvements could be made.

The draft code of practice and the evaluation tool were launched at an information session organised by the department to coincide with the Mining Emergency Response Competition (MERC).

The two-day competition is designed to test the skills of emergency response teams.

DMP code to guide global safety standards

The Department of Mines and Petroleum’s code of practice for autonomous mining will provide the base for new international guidelines being developed by the Canadian-based Global Mining Standards and Guidelines Group .

The department released the world’s first code of practice for safe autonomous mining in 2015, which it developed in conjunction with a working group of Western Australian industry experts and input from technical experts across the globe.

This included the International Organisation of Standardisation (ISO) technical committee on mobile autonomous mining systems.

Mines Safety Director and State Mining Engineer Andrew Chaplyn said the Global Mining Standards and Guidelines Group made the decision to base its global guidelines on DMP’s code following a meeting in Tucson in the United States.

Senior Inspector of Mines Peter O’Loughlin is on the steering committee for the new guideline following his coordination of the code of practice.

“This reflects Western Australia’s global leadership in the field of autonomous mining equipment and its safe operation,” Mr Chaplyn said.

“It is also indicative of the collaborative approach the department used in developing the code.”

The code of practice, which took 18 months to develop, helps companies safely introduce and manage autonomous mobile mining systems in their operations.

Mr Chaplyn said that as for any operation in the resources industry, there is an expectation that the risks will be understood and minimised to ensure workers are protected.

Western Australia’s working group included representatives from equipment manufacturers, mining companies, technology experts, as well as the regulator.

The code of practice was developed as autonomous mining systems are not specifically covered in the Mine Safety and Inspection Act 1994 and its associated regulations.

Stakeholder feedback invited on new DMP website

It’s been 12 months since the launch of the Department of Mines and Petroleum’s (DMP) new website and stakeholders are invited to give feedback on how it is performing.

A short survey is open to capture stakeholder suggestions, which will help the department understand how well the DMP website meets expectations and business requirements.

The survey results will also be used to track user satisfaction and make adjustments to the website to improve user experience.

The survey only takes a few minutes to complete. Individual responses will remain anonymous, and the department will only report against aggregated findings. Your feedback would be greatly appreciated.