1. AUSTRALIA’S URANIUM CONFERENCE – 2006 ‘Has the Canadian Ant overtaken the Australian Grasshopper?’ 10-11 July 2006 Adelaide, Australia Don Larkin CEO, The AusIMM

2. AESOP’S FABLE – THE ANT AND THE GRASSHOPPER The advantages of forward planning

3. MY PROPOSITION If we don’t:- Encourage more exploration in Australia Fund our universities and research centres appropriately Manage our human resources better The sustainability of the minerals sector in Australia is at risk.

4. DOUBLE EDGED SWORD Buoyant sector contributing to the economy Global companies with global options Governments elected on short term cycles competing with guided democracies.

5. ENCOURAGE MORE EXPLORATION Australia’s relative position declining Government attitude, budget and initiatives MEAA:  Access to finance  Access to data  Access to human capital  Access to land Too little, too late.

6. CONCERNS EXPRESSED AusIMM MacBank Survey; 2006, skills and exploration MCA and PWC Survey Report, 2005 – Exploration & R&D. Also June 2006 Global Report Fraser Institute – policy potential/mineral potential Metal Economics Group – exploration budgets 2005 ABARE warnings – development projects - 2006

7. WARNINGS ABARE – WHEN RELEASING CURRENT PROJECT EXPENDITURE IN ADVANCED PROJECTS OF $34 BILLION, STATED ‘It is important to recognise the ability of Australia’s mineral sector to sustain its strong recent growth, in the medium and longer term depends critically on the amount of investment in minerals exploration.’ April, 2006

8. MCA AND PWC – MINERALS INDUSTRY SURVEY REPORT 2005 ‘Exploration expenditure is forecast to fall by 3% in 2005/06. The outlook for research and development expenditure is also lower, with the 2005/06 result to be down by 68% on the 2004/05 outcome.’

9. 2006 SURVEY OF MINERALS INDUSTRY PROFESSIONALS THE AusIMM/MACQUARIE SECURITIES CONSTRAINTS Skills shortages most critical issue 91% of respondents – insufficient investment in exploration could see a downturn in the Australian minerals sector in longer term.

10. MANAGE OUR HUMAN RESOURCES BETTER 1992 Rio Summit Sustainable Development – Human Capital Managing the cyclical peaks and troughs Promoting awareness and career opportunities Greater presence on campus Our demographic destiny and mission critical employees Or is human capital just another commodity?

11. FUND UNIVERSITIES AND RESEARCH CENTRES APPROPRIATELY Minerals Sector- High tech, high value added, geographically diverse, not homogeneous - low demand, knowledge based - value added (Uranium) - lead timing 10-15 years Government Attitude - approach to higher education – user pays - resources curse - taxes and welfare Increasing Prospectivity - new mineral deposits – (uranium exploration) - processing “uneconomic” resources - increasing efficiency – reducing costs

12. MAJOR CHALLENGES AND OPPORTUNITIES FOR LEADERSHIP GOVERNMENTS Embrace the sector as nationally important Improve incentives for teaching of SET in schools Move SET related courses in higher education to Cluster 10 Support breakthrough research to increase prospectivity and processing – CSIRO and CRC’s Continue to highlight implications of an ageing population Implement the recommendations of Prosser, Nairn, MEAA etc. Protect discipline areas of national importance.

13. MAJOR CHALLENGES AND OPPORTUNITIES FOR LEADERSHIP Employers -Greater focus on human resources including: –Forecasting of skills needs (uranium) –Look outside the square (RMS) –Increasing flexibility in employment practices –Longer term commitment to manage the cycles –Understanding implications of ageing population -Embrace the opportunities from acceptance of diversity and increase participation rates.

14. LEADERSHIP – Dr Ian Gould Taking risks, being out in front Being prepared to take criticism, “courageous” Being able to identify real winners, not just follow fashion candidates It’s all about confidence.

15. SOUTH AUSTRALIA A ROLE MODEL Leadership from Premier and Government Support from a committed group with belief in the sector (SAMPEG) World leading resources (particularly Uranium) Support for exploration (PACE) – exploration targets met Balanced approach – Scorecard – Mining project approval processes.

16. AESOP’S FABLE – ‘THE ANT AND THE GRASSHOPPER’ Minerals Sector – A Double Edged Sword Encouraging exploration and removing impediments cf Canada – to become a preferred destination Supporting the provision of skills, research and development Focusing on human capital as well as assets and finance (Vision 2020).

17. AESOP’S FABLE Has the Canadian Ant Overshot the Australian Grasshopper? The Sustainability of the minerals sector in Australia.