SA Mines and Energy Journal : June 2009
JUNE/JULY 2009 SA MINES & ENERGY JOURNAL 7 The South Australian Chamber of Mines and Energy is inviting comments on the draft SA Resources Industry Strategic Plan. The plan is available on our website (www.sacome.org. au) under “publications” . You will find a link there to an online survey. By completing this, you will be letting us know how important you consider each of the strategies to be. We are interested in the views of not only our members, but also other stakeholders. So I hope you will take the time to have your say on where you think the SA resources industry should be headed. In order to understand the importance of the resources sector to our economy, we need to look at the revenues it generates and where they go. A recent study by PricewaterhouseCoopers throws some light on this and I would like to share some of its findings with readers. The report, Total Tax Contribution Study of the Global Mining Industry, looked at 14 of the world’s largest mining companies. It calculated the total tax contribution including property taxes, payroll taxes, royalties, sales taxes, infrastructure funding and levies. It also looked at the total tax rate – that is, the cost of all taxes and contributions borne as a percentage of profits. The study found that mining companies typically pay a range of taxes and contributions in addition to corporate income tax, and that the total contributions are not readily apparent in financial reports. So the real benefit to the economy tends not to be well understood. On average, the companies in the study paid an amount equal to 12.5 per cent of their turnover to government. Earlier this year, PricewaterhouseCoopers Australia conducted a survey of 79 Australian companies, including eight mining companies. It found that the mining industry, together with the banking industry, contributes almost half of all taxes borne by the survey participants. In fact, they represent almost 18 per cent of total government corporate income tax receipts. Potential returns on resource investments were explored at the recent South Australian Resources and Energy Investment Conference (SAREIC). This was a great success, culminating in the Chamber’s Annual Resources Industry Gala Dinner with guest speakers Noel Pearson (Director, Cape York Partnerships) and Stephen Creese (Managing Director, Rio Tinto Australia). A recurring theme in comments by interstate and overseas delegates is how refreshing it is to be in a pro- mining state, and to enjoy the optimism and confidence of the local delegates. If you are looking for further indications of strength in the South Australian sector, consider the new research and educational bodies that have set up home in Adelaide over recent months: UCL (University College London) established the UCL School of Energy and Resources, which will be its first overseas campus, with the support of the South Australian Government and Santos as its foundation partner. UCL will offer a range of graduate programs for the energy and resources sectors. The University of Adelaide has joined the national education joint venture, Mining Education Australia (MEA), which provides a common curriculum for third and fourth-year mining engineering students and is now extended across four states in Australia. Another initiative is the Centre for Energy Technology, an initiative of the University of Adelaide to establish new directions for energy research in Australia. Finally, I would like to take this opportunity to welcome new members elected to the Council of the South Australian Chamber of Mines and Energy: d Terry Kallis of Petratherm is the first councillor to represent renewable energy in a position created by SACOME at the last AGM. It is good to have a representative from the emerging geothermal technology on our council. d Ros DeGaris of Adeldaide Brighton represents the extractive sector. d Andrew Freeman of Santos replaces resigned Councillor Roger Kennett, representing the energy sector. d Michael Reed of Worley Parsons has been elected to a second position representing the services sector, a role also created at the last AGM. PRESIDENT’SREPORT TELL US WHAT YOU THINK A word from the President John Roberts I hope you will take the time to have your say on where you think the SA resources industry should be headed.
April May 2009