1. The mineral industries research association Growth, Productivity & Innovation in the Minerals Industries Dick Davies AMIRA International Sarah Vandermark ANU NGSM Forum 13 May 2003

2. The mineral industries research association High-tech continuous improvement and break-through research have significantly improved productivity in mineral exports. Theme

3. The mineral industries research association But first – a morality tale “The Rush That No-one Noticed” (apologies to Geoffrey Blainey ….)

4. The mineral industries research association December 1984

5. The mineral industries research association So…What happened in January 1985? ???????

6. The mineral industries research association Source: Newmont

7. The mineral industries research association ExplorationProcessingMiningR&D Source: ABARE

8. The mineral industries research association Gold Production and Regolith Research study of regolith regolith new sampling methods understanding weathering of orebodies Value $500 per ounce (right axis)

9. The mineral industries research association High-Tech Inputs into Gold CIP / CIL – Processing Chemistry Regolith Geochemistry Image Processing – Information management and visualisation software Greatly improved analytical techniques Geophysics – Magnetic, Electromagnetic and Radiometric data Instrumentation – Airborne EM

10. The mineral industries research association Spin Offs from Gold Technology Start-up companies in aeromagnetics, software (eg. Fractal Graphics, Falcon) instrumentation, image processing etc. Non–specialist tools Digital data processing Environmental monitoring, salinity, footprint, (eg. Airborne EM -TEMPEST)

11. The mineral industries research association ARIES Satellite Image

12. The mineral industries research association But, the Australia has Undervalued Mining and Minerals Normandy Mining LimitedNorth Limited Source: Robert Champion de Crespigny, 22 Feb 2002)

13. The mineral industries research association The moral of this story is:- Hi – tech R&D inputs in gold mining significantly improved productivity - continuous improvement in PROCESS technologies and breakthrough in EXPLORATION This R&D is leading edge and world class New service businesses created But undervalued in Australia

14. The mineral industries research association Furthermore…. I could tell similar tales for oil, coal, alumina, iron-ore, mineral sands, copper, zinc……. ….but I won’t!

15. The mineral industries research association

16. Ian Wark Research Institute

17. The mineral industries research association Ian Wark Research Institute

18. The mineral industries research association Ian Wark Research Institute Leading Edge Discipline Sustainable Development Minerals Base Interfacial Science and Technology (hard and soft surface interactions) Control of Acid Mine Drainage in waste rock and tailings dams Reduction of environmental impact of mining and in liability to company and country in management of waste Drug delivery and nanotechnology Bio materials Ophthalmic lenses Inkjet printing Polymer surface coatings New Sectors

19. The mineral industries research association Ian Wark Research Institute

20. The mineral industries research association A PLATFORM FOR RISK REDUCTION TechnicalMarketExport MineralsHighLower New MarketsHigh

21. The mineral industries research association A word about the minerals industry

22. The mineral industries research association Importance of Australian Minerals Industry 8.5% GDP in 2001/02 Contributed ~$500 billion to Australia’s wealth over the past 20 years Exported $41 billion in 2001/02 = 37% merchandisable exports = 28% total goods and services

23. The mineral industries research association Trends in the Australian Mineral Industries Decreasing commodity prices Mergers and acquisitions From ‘Production Base’ to ‘Minerals Finance House’ No longer Australian owned

24. The mineral industries research association Real Metal Price Trend 1970-1998

25. The mineral industries research association Australian Productivity Index (1986 = 100) Source ABS (2003), Access Economics MCA

26. The mineral industries research association Contributing Factors to Mineral Export Success Labour productivity Capital productivity –Microeconomic reform Multi factor productivity –Continuous innovation (process improvement) –Breakthrough R&D (Exploration success)

27. The mineral industries research association Trend in BERD for Broad and Narrow Defined Australian Minerals Industry

28. The mineral industries research association Claims Under Australian R&D Tax Concession by Industry Sector (ANZIC) Source Matthews and Howard 2000

29. The mineral industries research association Australian BERD with Broadly Defined Minerals Industry (ANZIC classifications) BERD2000/01 AUD $m Mining (+ services)456 + Non-metallic mineral product385 + Metal Product41 Broad Minerals Industry882 + Petroleum, Coal, chemicals and associated products 385 Broad Resources Industry1267 Rest of Manufacturing1546 Total all industry5012

30. The mineral industries research association Mining Services Technology Australia’s sixth largest merchandise export Austmine $1.9billion Total ~$3 billion MTSAA estimate 2001 $611 million

31. The mineral industries research association Mining and mineral technologies and engineering are leading edge, hi-tech and world class. They under-pin basic research disciplines which 1. Reduce market risk and 2. Provides a platform for new market sectors. Sustainability objectives are also achieved through energy efficiencies and reduced impact of mining. ‘Minerals: A Platform for Innovation’

32. The mineral industries research association Mining wealth is created – its not a gift from nature Commercialisation of R&D and innovation extends beyond start-ups and venture capital. Incremental and step change gains in productivity in established industries greatly enhance economic activity. Spillovers occur into new markets. Relevant statistics to support this case are not collected: ABS, BERD, MTSAA inadequate Lessons for Government

33. The mineral industries research association But when government does get it right… it gets hammered !!…….

34. The mineral industries research association “Brown coal keeps Victoria in the steam age” – Kenneth Davidson 22/7/02 Age 18/7/02

35. The mineral industries research association www.amira.com.au