1. What’s Down the Track? 1 Nicole Roocke The Chamber of Minerals and Energy of Western Australia (CME) 23 October 2014

2. About CME Peak resources sector representative body in WA In operation for 113 years Over 200 member companies representing over 95% of resources production by value in WA Represents both large and small companies across the mining and oil and gas sectors 2

3. Western Australian resources sector In 2013-14, the sector accounted for: $121.6 billion in sales value – a 20% increase on 2013 levels 91% of state and 48% of national merchandise export incomes 22% of state government income As at August 2014, 95,800 people directly employed in mining and petroleum 3

4. Goldfields-Esperance resources sector In 2013-14, the Goldfields-Esperance region: Produced commodities totalling $9.1 billion Accounted for 7.5% of total minerals and petroleum sales value 3rd largest region contributor Provided 84% of the state’s nickel and 65% of the state’s gold value Employed 22% of the population in mining related roles 4

5. Key WA export destinations 5 GoldNickel

6. Resources Sector Outlook Supply and demand forecasts: –people –energy –water –roads –rail –ports –aviation 6

7. Resources Sector Outlook Preliminary findings indicate: –Workforce will decline, with FIFO remaining at around 60% –Energy and water requirements will continue to increase –Perth airport passenger volumes likely to decline to 2016 before increasing out to 2020 7

8. Challenges Weakening commodity prices International investment and competitiveness Changing workforce dynamics Cost of doing business (taxation, royalties, approvals, removing red-tape) Maintaining a social license to operate 8

9. Decreasing exploration 9 Exploration expenditures by commodity, Western Australia, Unadjusted

10. Cost of doing business 10 Ever-increasing government taxes, levies and charges “Red tape” Project approval delays Unnecessary and outdated regulation

11. Royalties 11

12. Positive community perceptions of the resources sector 12 “Provide funds for local areas with regards to sporting facilities, entertainment venues so this can only be a good thing.” “It is a dynamic industry that provides a lot of employment for this state and is the backbone of our economy.” “Provides an income to many people, my house included. We have been able to build a home we otherwise never could have afforded.” “The mining industry in West Australia whether iron ore, gold, oil and gas has been a wonderful uplift for the economy.”

13. Negative community perceptions of the resources sector 13 “Put pressure on everyone’s living cost” “Western Australians should be employed in these industries ahead of interstate and international workers” “The rich gets richer” “Only interested in making a profit” “Mining in areas of importance to indigenous communities and natural biodiversity” “Wreck the landscape, environmental issues…”

14. WA vs the World 14

15. Nominations now open Visit www.cmewa.com for more informationwww.cmewa.com 15

16. Thank you The Chamber of Minerals and Energy of Western Australia Level 10, 2 Mill Street Perth WA 6000 T 08 9021 2155 E hphillips@cmewa.com W www.cmewa.com.auhphillips@cmewa.comwww.cmewa.com.au