1. Advocacy, The AusIMM and the Sustainability of the Australasian Minerals Sector in the 21 st Century Presentation to The AusIMM Congress, Ballarat 2006 Monika Sarder Policy and Research Coordinator, The AusIMM

2. Overview Advocacy – why are we doing it? Challenges to a sustainable sector in our region Target audiences Current and future projects Challenges to successful advocacy Comments/Questions

3. Advocacy - Why are we doing it? At 2005 Congress advocacy was considered a key priority for The AusIMM Globalisation breeds new challenges Record number of projects $34 billion this year BUT Global share of exploration by region slipping Government attitude has been that “the industry can look after itself” Definition of professional – someone who puts responsibility to their community and profession above individual and commercial interests The AusIMM is a forum for advocacy that can synthesise expert opinion in interests of regional good

4. Minerals Sector in the 21 st Century – what has changed? Industry consolidation - market value of top five companies is $576 bn, or 44% of market capitalisation Diminishing returns on exploration investment Sustained high demand from India and China Global players will now want to ‘refill the cupboard’ The want ‘bang for their buck’ in terms of exploration dollars spent. May achieve this through: –R&D to become more predictive and reduce risks in exploration –R&D for minerals processing techniques and mining methods to render previously uneconomic deposits worth their while –Shifting their focus to ‘underexplored’ countries with higher political and social risk regimes

5. Where does this leave Australia/NZ? Global players have said they need to ‘increase the search space’. Whether we can continue to be seen as a competitive destination for greenfields exploration investment depends on whether we can continue to maximise our current advantages whilst offering an expanded search space. Maximise current advantages -R&D -Education -Attraction & Retention -Provision of Geoscientific Data -Minimise Regulatory Burden -Social license to operate

6. To Increase Search Space –Encourage State Government strategies aimed at increasing exploration/geological knowledge (eg PACE program) –Mechanisms for funding and collaboration for minerals related R&D –Improve Access to Finance for Juniors (make most of the new discoveries) –Deal structures between majors and juniors must be more attractive –Encourage policies supportive of uranium exploration and activity

7. Whom should we be convincing? AudienceMeans Federal and State GovernmentsCanberra visits, relationships with State and Federal politicians, participation on working groups, media coverage, submissions to State and Federal Inquiries The OppositionAs above – Also feed into Policy Platform 2007 (consultation underway) Kindred NGO’s (eg MCA, AGC)Sharing policy platform and reinforcing each others’ submissions. Formal and informal relationships CorporatesVisits to Corporates, participation on working groups, communication with The AusIMM members The PublicThe media – building relationships with press – flows on to other audiences The AusIMM membersEngage members in advocacy initiatives so that where appropriate they promulgate them in their professional roles.

8. Press and Inquiries Increased presence in media –The Australian: exploration issues, macbank survey –The AFR: skills shortage, diversity issues –The Age: need for rational uranium policy, OH&S stats –The ABC: skills shortage and sustainability of sector –Canberra Times: uranium policy –Herald Sun: need for more exploration –Trades press on variety of topics –Our opinion is being actively sought – building relationships with journalists Major submissions 2005 -Commonwealth Grants submission in favour of raising funding for minerals related courses to the same level as Agriculture -Research Quality Framework Submission on appropriate assessment for minerals R&D -Higher Education Principles Submission -Submission to add The AusIMM members to list of people who can witness Stat Decs Major Submission for 2006 -Uranium submission to Labor NPC Committee -Productivity Commission Inquiry on Innovation

9. Major Policies and Projects Completed Minerals Related Education Policy Paper Uranium Policy Paper Greenhouse Gas Emissions Policy Paper Currently Undertaking Audit of mechanisms for funding and collaboration for minerals R&D OH&S Liability Policy Paper Attraction and Retention Research Paper based on qualitative and quantitative answers to Macbank Survey

10. Challenges to Overcome Lobbying State and Federal Governments –attitude that, the industry is in the midst of a boom and that it is not time to ask for subsidies Making Media Presence Count –Company announcements speak louder than long term strategic warnings Addressing Social License Issues with Care –Issues such as uranium, greenhouse gas emissions, OH&S etc need to be approached from expert and ethical point of view Engaging the Membership –Expert opinions of breadth of membership is not sufficiently tapped in to, although excellent concentrated input

11. In Conclusion Current boom is a double edged sword – more exposure, however mining industry is seen as a ‘force unto itself’ None of our advocacy achievements this year would have been possible without the expert input of a number of committed members: –Highlighting strategic policy considerations –Reviewing policy documents to ensure evidence drawn from secondary sources accorded with professional experience –Providing evidence and developing arguments for policy positions –Engaging in thought provoking discussion –Bringing to light new issues Contact through –WIR, Bulletin, newsletters –Committee and Task Force Meetings (especially EITF) –Website: http://www.ausimm.com/policy/policyindex.asphttp://www.ausimm.com/policy/policyindex.asp –Email: policy@ausimm.com.au or Phone: (03) 9658 6159policy@ausimm.com.au