INDUSTRY VISION FOR VICTORIA

The Vision

The vision of the members of the Victorian Minerals & Energy Council is the growth, to its full potential, of the minerals and energy industry in Victoria through the discovery and evaluation of the State's mineral resources and the sustainable and responsible development of those resources.

The minerals and energy industry is a significant contributor to the economy and social structure of Victoria, particularly rural and regional Victoria and aims to be recognised by the community as a valued industry that is environmentally and socially responsible.

General

The following vision detail is set in a future context of 10 or more years.

Safety:

• The minerals and energy industry as the safest industry in Victoria.
• An industry free of fatalities, injuries and diseases.
• Safety Regulations that are outcome based and common with all states of Australia.
• A common set of safety guidelines that is endorsed by Government and industry.

Investment:

• A legal and regulatory environment that encourages exploration and investment.
• Exploration activity at a level to make significant discoveries.
• An active presence of a diverse range of investors in Victorian projects exploring for a variety of minerals.

Native Title:

• An ILUA or set of ILUA's across Victoria for exploration and mining projects on native title lands.
• An agreed process for agreements to move from exploration to mining.

Environment:

• All mineral operations in Victoria employ best environmental practices.
• All mining projects operate in accordance with the sustainable development principles of economic, social and environmental benefit to all stakeholders including shareholders, community and government.
• Regulatory controls that encourage cleaner production and emission reductions whilst at the same time ensuring that the Victorian economy is not damaged and that current investments are not stranded.
• A planning approvals process that is transparent, fair and predictable and that ensures all stakeholders are effectively consulted. The process should be timely and inexpensive.
• The overwhelming majority of Victorian companies signed onto the minerals industry code for environmental management.

National Parks:

• Recognition that appropriately controlled exploration and mining are legitimate land uses in the State's national and state parks.
• A transparent process for the approval of new projects in national and state parks that includes conditions approved by the appropriate Ministers.
• A transparent process for the renewal of exploration and mining licences in national and state parks by the Minister for Energy and Resources.
• A multiple land use management regime in place that protects the conservation values of parks whilst at the same time allowing the economic values to be exploited.

Restricted Crown Land:

• Recognition that exploration and mining are legitimate land uses in nature conservation and regional parks.
• No special approvals required for low impact exploration (minimal disturbance of natural vegetation) in nature conservation and regional parks.
• A clear and transparent approvals process with a single set of conditions, avenues for appeal and statutory time lines for decision points for exploration that is likely to cause disturbance and mining projects. The approval would remain with the Minister responsible for the MRD Act in consultation with the Minister responsible for the management of these lands.
• Restricted crown land administered under the Lands Act and not the National Parks Act.

Melbourne as an International Centre of the Minerals Industry:

• A government that acknowledges and coverts the importance of Melbourne as an international centre of the minerals industry.
• Melbourne continues to be home to many of the world's largest mineral and energy companies and many of Australia's minerals research institutes. This includes a skilled pool of experienced mining personnel who steward some of Australia's largest and most profitable companies.
• The companies that continue to contribute many millions of dollars into the state through head offices, recruitment, sponsorship of industry initiatives, and attraction of secondary activities such as conventions.
• Victoria's tertiary education facilities in minerals industry related areas integrated so that Victoria is a national and international provider of choice.

Government Support:

• A State Government that recognises the significant contribution the industry can and does make to the economic, social and environmental well being of rural and regional Victoria and actively supports and promotes the industry.
• A State taxation regime that encourages mining companies to base their head office in Victoria regardless of where the company operations are located.
• A coordinated and progressive network of minerals industry related university faculties that are encouraged and supported by the State Government.

Government Administration:

• A well resourced administration that both facilitates and regulates the industry.
• A one-stop shop through Minerals and Petroleum Victoria for the minerals industry to deal with all of government.
• Common approvals and regulation practices for all earth resource industries in Victoria.
• A project permitting process that has certainty with respect to time lines.

Gold

The potential of the Victoria gold mining industry will be realised with a long-term sustainable production of at least 1M-oz pa. This is about twice the historical average production rate (80Moz over 150 years) and more than six times the current production rate.

Mines will be developed as underground and surface operations in several of the State's existing or known goldfields. In addition, there will also be at least one major mine developed at a new goldfield discovered under shallow sedimentary or volcanic cover. It is expected that there would be a number of major mines and numerous small underground and open pit mines across the state.

The mining developments will involve significant investments at a number of rural and regional locations. The annual capital investment will be of the order of $100M with annual operating investment of about $300M. The mines will employ at least 1000 direct, well-paid and highly skilled personnel.

Coal

The coal mining industry of Victoria will continue to play a dominant role in the provision of low cost, reliable energy to the state's industries, commerce, services and households.

The four major coalmines, Loy Yang, Yallourn, Hazelwood and Anglesea will continue to operate with production maintained at more than 60Mt pa. They will maintain the close and harmonious relationship they have with their local communities.

The Yallourn Mine will be completely established in the Maryvale field and Hazelwood Mine will be developed to the west. The Anglesea Mine will take up the option to renew their lease in 2011. Planning controls will be in place to ensure that the coal resources of the Latrobe Valley, Anglesea and Bacchus Marsh are not sterilised by residential development. Also, any opening up of the coal fields is done in a manner that encourages investment without inhibiting the development of the existing mines.

The power stations that the mines supply will have undergone improvements in overall cycle efficiency and modifications to reduce greenhouse gas emissions. Research and development into the efficient use of low rank coals will continue with government and industry strongly supporting the CRC on low rank coal.

A large new power station utilising the new environmentally friendly coal technologies will be constructed in the Latrobe Valley to meet base load demand.

The national electricity market will be fully operational and the rationalisation of the industry will have stabilised. The total capital value of the brown coal industry (mines and power stations) in Victoria will have been adjusted leaving solid profitable businesses. The mines will employ more than 1000 direct, well-paid and highly skilled personnel in regional Victoria.

Mineral Sands

The Murray Basin will be established as a major mineral sands Province and a key contributor to the maintenance of Australia as a major exporter of mineral sand products.

The Victorian section of the Murray Basin will be producing a significant proportion of the Basin's rutile, zircon and ilmenite products. It is expected that there will be several mines and associated concentration plants operating. Mineral separation plants will also be operational in regional Victoria and at a major port.

Downstream processing plants will be established in Victoria to value add to the mineral sands products. The most significant opportunities lie in the processing of titanium minerals such as the processing of ilmenite to produce synthetic rutile or titanium slag, and the production of titanium dioxide pigment.

The Murray Basin mineral sands industry will employ about 500 highly skilled well-paid direct jobs.

Other Minerals

The major project involving "other" minerals will be the redevelopment of the Benambra base metal operation. The redevelopment will include the rehabilitation of the old areas that currently require attention.

Other minerals that have potential include feldspar, gypsum, limestone, silica and diamonds.

Conclusion

In the year 2010 the minerals industry will be a significant contributor to the economy and social structure of Victoria, particularly rural and regional Victoria. There will be a vibrant exploration industry strongly encouraged by government and Victoria will be seen as a good place to invest.

The industry will be working closely with communities to ensure sustainable development outcomes from projects with a net benefit to all.