Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Minerals and energy sector dinner outlook '91



Download PDFDownload PDF

ADDRESS BY THE MINISTER FOR RESOURCES

THE HON. ALAN GRIFFITHS, M P

TO

MINERALS A N D ENERGY SECTOR DINNER

OUTLOOK *91

NATIONAL CONVENTION CENTRE

CANBERRA

30 JANUARY 1990

LADIES AND GENTLEMEN,

I AM D E L I G H T E D TO SEE SUCH A WELL A T TE N D E D DINNER THIS EVENING. IN WELCOMING YOU ALL, LET ME PARTICULARLY ACKNOWLEDGE THE P RESENCE OF MY ERUDITE COLLEAGUE, JOHN KERIN.

Th e a n n u a l Ou t l o o k Co n f e r e n c e h a s b e e n a n i n s t i t u t i o n i n Au s t r a l i a n a g r i c u l t u r e f o r m a n y y e a r s b u t t h i s i s o n l y t h e S E C O N D YEAR T HAT MINERALS AND ENERGY HAVE BEEN INCLUDED IN THE PROCEEDINGS. THE INCLUSION OF MINE R A L S AND ENERGY IS AN

E X C E L L E N T INITIATIVE, AND ONE WHICH WILL CONTINUE IN THE FUTURE.

IN TERMS OF IMPACT, THIS C O NF E R E N CE SPEAKS FOR MORE THAN 80 PER CENT OF A U ST R A L I A' S EXPORTS AT A TIME WHEN OUR EXTERNAL TRADE BA LA N C E IS A CRITICAL ISSUE. THE COMBINED PROGRAM DEVELOPED SHOWS, I THINK, JUST HOW MANY CHALLENGES THE NATION'S PRIMARY I N DU S T R I E S FACE TOGETHER.

IT W ILL SOON BE A YEAR SINCE I WAS A PPOINTED TO THE RESOURCES PORTFOLIO. THE PORTFOLIO IS A WIDE RANGING ONE, ENCOMPASSING MINERALS, ENERGY, PETROLEUM, FORESTRY AND QUARANTINE. MANY ISSUES, SUCH AS RESOURCE ACCESS, CUT ACROSS VARIOUS PARTS OF THE PORTFOLIO.

I T H O U G H T IT WOULD BE A P PROPRIATE T ONIGHT TO TAKE STOCK - TO R E V I E W W HAT HAS HAPPENED IN 1990 AND FORESHADOW SOME OF THE M AJOR ISSUES I SEE FOR 1991 AND BEYOND.

A LOOK BACK TO 1990

At Ou t l o o k '90 l a s t y e a r , t h e p r o g n o s i s w a s f o r a r e l a t i v e l y STEADY YEAR FOR THE MINERALS AND ENERGY SECTOR. WE CAN NOW LOOK BACK AND SEE THAT A L T H O U G H THE INTERNATIONAL ECONOMY W E A K E N E D THROUGH 1990, A U S T R A L I A' S MINERAL AND PETROLEUM

I N DU S T R I ES GENERALLY PERFORMED WELL.

2.

You WILL HAVE HEARD LOTS OF NU MB E R S AT T ODAY'S SESSIONS. YOU DO NOT NEED MORE FROM ME. HOWEVER, I SHOULD MENTION A FEW FIGURES DEALING W I TH OUR EXPORT PERFORMANCE.

M I N E R A L S AND ENERGY EXPORTS C O N T I N U E D TO CLIMB, EXCEEDING $24 BILLION IN 1989/90 AND S H OU L D A P P R O A C H $27 BILLION THIS YEAR. Th i s i s m o r e t h a n h a l f o u r t o t a l m e r c h a n d i s e e x p o r t s a n d m o r e THAN 40% OF TOTAL GOODS AND S E R V I C E S EXPORTS. IT IS AN

IMPR E S S I VE PERFORMANCE.

Th e s e c t o r h a s b e e n a n e c o n o m i c h i g h l i g h t i n t h e Au s t r a l i a n ECONOMY AT A TIME WHEN OUR RURAL INDU S T R I ES HAVE BEEN BUFFETED BY D E PR E S S E D MARKETS AND PRICES.

Th i s p e r f o r m a n c e i s e v e n m o r e i m p o r t a n t w h e n a s s e s s e d i n t h e C ONTEXT OF REGIONAL ECONOMIC ACTIVITIES. MINE R A L S AND ENERGY PLAY A CRIT I C A L ROLE IN MANY PARTS OF THE COUNTRY, BRINGING E M PL O Y M E NT OPPORTUNITIES, E C O N O M I C D IVERSITY AND A BALANCE TO

ECONOMIC ACTIVITY.

Th i s d i v e r s i f i c a t i o n h e l p s t o s t a b i l i s e r e g i o n a l e c o n o m i e s . I t ALSO TAKES SOME PRESSURE OFF THE INCR E A S I NG TENDENCY OF Au s t r a l i a n s t o f o r s a k e r u r a l a r e a s f o r t h e b r i g h t l i g h t s o f o u r E N V I R O N M EN T A L LY STRESSED M AJOR URBAN CENTRES.

AS WE ALL K NOW TOO WELL, D E V E L O P M E N T S IN THE MIDDLE EAST HAVE S I G N I F I C AN T L Y AFFECTED THE ENERGY MARKET. SINCE THE INVASION o f Ku w a i t , t h e p r i c e o f o i l h a s b e e n e x t r e m e l y v o l a t i l e .

Th e RAPID PRICE INCREASES AT THE S TART OF THE GULF CRISIS HAVE BEEN F OLLOWED BY AN EQUALLY RAPID FALL IN THE PAST WEEK, WITH

Br e n t a n d We s t Te x a s s e t t l i n g a t a r o u n d US$21 t o d a y .

3.

If a n y t h i n g , t h e Gu l f c r i s i s h a s d e m o n s t r a t e d t h e w o r l d 's C O N T I N U I N G D E P E N D E N C E ON M I D D L E E A S T E R N OIL. T H I S CAN ONLY E N H A N C E TH E A T T R A C T I V E N E S S OF A U S T R A L I A AS A S E C U R E PLACE TO E X P L O R E FOR A N D P R O D U C E P E T R O L E U M A N D AS A R E L I A B L E S O U R C E OF

E N E R G Y E X P O R T S , P A R T I C U L A R L Y LNG.

I WOULD LIKE TO SPEND A FEW MOMENTS REVIEWING THE ENERGY AND M INERAL POLICY HIGHLIGHTS OF MY FIRST TEN M ONTHS AS MINISTER.

Hi g h o n m y l i s t w o u l d h a v e t o b e t h e v e r y s i g n i f i c a n t - i n d e e d M OMENTOUS - CHANGES TO PETROLEUM TAXA T I O N ANNO U N C E D IN THE a u g u s t 1990 B u d g e t . T h e i m p o r t a n c e w h i c h t h e G o v e r n m e n t p l a c e s ON THESE R EFORMS IS EVIDENCED BY THE FACT T HAT THE COMMONWEALTH WILL FOREGO REVENUE IN THE ORDER OF $ 775 MI LL I O N OVER THE NEXT

TWO YEARS. T h i s r e v e n u e f o r e g o n e i s a g o o d m e a s u r e o f t h e Go v e r n m e n t 's c o m m i t m e n t t o f u n d a m e n t a l a n d l o n g t e r m r e f o r m .

THRO U G H THE INTRODUCTION OF THE RESOURCE RENT TAX AND ASSO C I A T ED COMPANY WIDE DE DU C T I B IL I T Y PROVISIONS FOR EXPLORATION EXPENSES, THE G O V E R N M E N T HAS C R EA T E D A COHESIVE AND EFFICIENT FRAM E W O R K FOR THE FUTURE D E V E L O P M E N T OF AUSTRALIA'S

PETROLEUM RESOURCES.

THE CHANGES REMOVE INEFFICIENCIES AND U N CERTAINTIES ASSOCIATED W I TH THE P E TR O L E U M EXCISE A R RA N G E M EN T S IN BASS STRAIT. THEY WILL ALSO ENCOURAGE MAXIMUM PRODUCTION FROM THE REMAINING RESERVES IN BASS STRAIT AND SUBSTAN T IA L L Y IMPROVE THE

EFFICIENCY OF A U STRALIA'S OFFSHORE P ETROLEUM EXPLORATION ACTIVITY.

Th e p r o v i s i o n s f o r c o m p a n y w i d e d e d u c t i b i l i t y w i l l a l s o b r o a d e n THE EXPLORATION EFFORT TO FRONTIER AREAS.

An o t h e r k e y f e a t u r e o f t h e Au g u s t 1990 B u d g e t w a s t h e c h a n g e d TAXATION T R E A T M E N T OF MINE SITE REHA B I L I TA T I O N AND OFFSHORE PLATFORM R EMOVAL COSTS.

Co m p a n i e s w i l l n o w b e a b l e t o f o r m u l a t e t h e i r i n v e s t m e n t p l a n s W I T H MORE C E RT A I N T Y AND R E D U C E THE FUNDS R E QUIRED TO BE SET A S I D E DURI N G THE P R O D U C T I V E PHASE TO PAY FOR ENVIRO N M EN T A L R E HA B I L I T A T I O N . THE D E C I S I O N MORE FULLY R E COGNISES RESOURCE

DEVELOPERS' R E S P O N S I B I L I T Y FOR L O NG - T E R M ENVIRONMENTAL PROTECTION.

A SECOND HIGH POINT OF 1990 WAS THE OFFSHORE EXPLORATION St r a t e g y w h i c h I a n n o u n c e d a t t h e AREA Co n f e r e n c e l a s t Ju n e. It i s a s i g n i f i c a n t s t e p IN M A X I M I S I N G t h e c o n t r i b u t i o n o f p e t r o l e u m t o o u r e c o n o m y , a n d t o t h e Au s t r a l i a n c o m m u n i t y .

Th e s t r a t e g y p r o v i d e s f o r t h e o r d e r l y e x p l o r a t i o n o f Au s t r a l i a 's o f f s h o r e s e d i m e n t a r y b a s i n s f o r t h e n e x t TWENT Y - F IV E Y E A R S .

IT CO -O R D I N AT E S THE RELEASE OF OFFSHORE AREAS FOR EXPLORATION, THE C O LLECTION OF E X PLORATION DATA AND ITS DISSEMINATION TO EXPLORERS, AND THE P ROMOTION OF AUSTR A L I A' S ATTRACTIVE TITLE ACQUI S I T IO N AND TAXATION ARRANGEMENTS.

Al r e a d y t h e r e a r e s o m e e a r l y i n d i c a t i o n s o f s u c c e s s f o r t h e A CREAGE RELEASE PROGRAM W I TH A TOTAL OF 19 APPLICATIONS, INVOLVING 36 COMPANIES, RECE I V E D FOR THE 14 PERMIT AREAS ON O FFER IN THE SECOND HALF OF LAST YEAR. THE APPLICATIONS I NCLUDED 16 EXPLORERS WHO ARE EITHER NEW OR ARE RETURNING TO t h e Au s t r a l i a n e x p l o r a t i o n s c e n e .

Ta k e n t o g e t h e r , t h e s e r e f o r m s a r e i n d e e d m o m e n t o u s . F u r t h e r , THEY WILL CONTINUE TO PAY D IVIDENDS FOR AUSTRALIA NOT FOR YEARS, BUT FOR DECADES TO COME.

A THIRD NOTABLE EVENT OF 1990 WAS THE RELEASE IN S EPTEMBER OF t h e I n d u s t r y C o m m i s s i o n 's d r a f t r e p o r t o n m i n i n g a n d m i n e r a l s

PROCESSING.

5.

Th i s i s a m u c h n e e d e d , t i m e l y a n d w i d e -r a n g i n g r e v i e w o f t h e I S S U E S F A C I N G THE M I N E R A L S E C T O R A N D I W E L C O M E D THE F O R T H R I G H T M A N N E R IN W H I C H TH E C O M M I S S I O N E R S PUT T H E I R F I N D I N G S AND D R A F T R E C O M M E N D A T I O N S .

I F U L L Y E N D O R S E T HE V I E W E X P R E S S E D IN T H E R E P O R T ' S O V E R V I E W T H A T WE A R E P R E J U D I C I N G OU R W E L L - B E I N G BY N O T T A K I N G FULL A D V A N T A G E OF O U R M I N E R A L S E N D O W M E N T .

Ul t i m a t e l y , t h e I C ' s Re p o r t i s a b o u t a c h i e v i n g c h a n g e w h i c h B E N E F I T S E V E R Y O N E BY I M P R O V I N G TH E C O N T R I B U T I O N T H A T M I N I N G AND M I N E R A L S P R O C E S S I N G M A K E S TO T H E A U S T R A L I A N ECONOMY. IT IS A G O A L W H I C H I S U P P O R T W H O L E H E A R T E D L Y .

M A N Y OF T H E F I N D I N G S AND R E C O M M E N D A T I O N S I N V O L V E C O M P L E X AND S E N S I T I V E P O L I C Y ISSUES. IF T H E Y R E M A I N IN TH E F I NA L REPORT,

W E W I L L G I V E T H E M C A R E F U L R E V I E W A N D A N A L Y S I S .

F O R I N S T A N C E , I K NOW THAT THE IC'S RECO M M E N DA T I O NS CONCERNING C O M P E T I T I V E CASH BIDDING HAVE ATTRA C T E D S TRONG CRITICISM FROM INDUSTRY RANKS. LET ME ASSURE YOU T HAT I SHARE YOUR MISGIVINGS A B OU T THIS PARTICULAR PROPOSAL.

Th e I n d u s t r y C o m m i s s i o n a l s o c r i t i c i s e d t h e o p e r a t i o n o f t h e Ab o r i g i n a l L a n d Ri g h t s (N o r t h e r n Te r r i t o r y ) A c t. I l o o k FORWARD TO THE THEIR FINAL RECO M M E N DA T I O NS ON THIS TOPIC AND I AM PLEASED TO BE ABLE TO TELL YOU T HAT THE M INISTER FOR

Ab o r i g i n a l Af f a i r s , M r R o b e r t Ti c k n e r , a n d I, h a v e a l r e a d y A G R E E D T HAT THIS ISSUE SHOULD BE A D DR E S S E D AS A MATTER OF PRIORITY.

W E WILL BE M EETING AS SOON AS POSSIBLE FOLLOWING RELEASE OF THE I C'S FINAL REPORT TO CONSIDER W HAT ACTION M IGHT BE TAKEN IN RELA T I O N TO THE A CT'S EXPLORATION AND M INING PROVISIONS.

6.

Le t m e s t r e s s , h o w e v e r , t h a t w h i l e t h e w a y t h e a c t i s w o r k i n g W I L L BE U N D E R S C R U T I N Y , TH E C E N T R A L P R I N C I P L E OF A B O R I G I N A L P E O P L E S H A V I N G C E R T A I N R I G H T S TO C O N T R O L A C C E S S TO T H E I R LAND IS M E O P E N T O DEBATE.

A S I A M S U R E YO U A R E AWARE, TH E I N D U S T R Y C O M M I S S I O N A L S O R E I N F O R C E D T H E N E E D FOR C O N T I N U I N G M I C R O - E C O N O M I C R E F O R M AN D H I G H L I G H T E D A P O T E N T I A L $ 4 B I L L I O N G A I N IN O U T P U T OF R E S O U R C E - B A S E D P R ODUCTS.

I A C C E P T T H A T I N D U S T R Y H AS B E E N C R I T I C A L OF THE P A CE OF R E F O R M A N D I S Y MP A T H I SE WITH THAT VIEW. HOWEVER, I WANT TO STRESS T HAT THE B UILDING BLOCKS ARE IN PLACE AND THAT THE GOVERNMENT REMAINS FIRMLY COMMITTED TO ITS PROGRAM OF MICRO- E C ON O M I C

REFORM.

THE FOURTH H I G H L I G H T I W O U L D NOTE W A S MY END OF Y EAR V I S I T TO I N D O N E S I A , S O U T H K O R E A AND JAPAN.

T H I S V I S I T H A D S E V E R A L O B J E C T I V ES . T H E TWO P R I N C I P A L O N E S WERE TO C E M E N T L O N G - T E R M R E L A T I O N S W I T H M A J O R K O R E A N A ND J A P A N E S E C U S T O M E R S A N D INVESTORS, AND TO LAY THE G R O U N D W O R K FOR J O I N T I N D O N E S I A N - A U S T R A L I A N A C T I V I T I E S IN A D M I N I S T R A T I O N OF P E T R O L E U M A C T I V I T I E S IN T HE T I M O R SEA.

A F E W I T EM S S T A N D O U T IN MY MI ND F R O M MY D I S C U S S I O N S OVERSEAS. FIRST, I C O N T I N U A L L Y NOTED I N T E R E S T IN G R E A T E R E X P O R T S OF M I N E R A L A ND E N ER G Y P R ODUCTS TO J A P A N AND KOREA. R E S P O N S E S WERE P O S I T I V E F R O M T H OS E A C ROSS THE TABLE, BUT IN THE SAME BREATH, T H E Y R E M I N D E D ME OF T H EIR C O N C E R N S A B O U T O UR R E LI ABILITY, C O M P E T I T I V E N E S S AND I N D U S T R I A L R E L A T I O N S SCENE.

- 7 -

I R E S P O N D E D BY C I T I N G T H E I M P R O V E M E N T S IN OU R I N D U S T R I A L D I S P U T A T I O N R E C O R D , G A I N S IN P R O D U C T I V I T Y , O U R D E M O N S T R A T E D T R A C K R E C O R D AS A R E L I A B L E , Q U A L I T Y A N D C O S T - C O M P E T I T I V E S U P P L I E R , A N D OU R C O M M I T M E N T TO E X P O R T P R O D U C T I O N .

Th e s e p o i n t s w e r e a c c e p t e d , b u t w e h a v e t o c o n t i n u e t o b e g o o d S A L E S P E R S O N S , K E E P I N G O U R C U S T O M E R S S A T I S F I E D A N D M A I N T A I N I N G A R E L I A B L E , C O M P E T I T I V E A N D Q U A L I T Y P R OD U C T . W E DO NOT H A VE A C O R N E R ON R E S O U R C E S U P P L Y TO T H E S E M A R K E T S .

Wh i l e i n Se o u l , I s p o k e t o a n i n v e s t m e n t s e m i n a r o r g a n i s e d b y A U S T R A D E TO P R O M O T E K O R E A N I N V E S T M E N T IN A U S T R A L I A . T H E L A RGE T U R N O U T AND R E S P O N S I V E A U D I E N C E R E I N F O R C E D T H E I M P R E S S I O N G A I N E D IN MY D I S C U S S I O N S W I T H B O T H TH E K O R E A N G O V E R N M E N T AN D

I N D U S T R Y O F F I C I A L S T H A T I N T E R E S T IN A U S T R A L I A IS GROWING.

I A L S O P E R C E I V E D C O N S I D E R A B L E I N T E R E S T IN O U R L O N G - T E R M LN G

p o t e n t i a l . T h e Re p u b l i c o f Ko r e a h a s t h e p o t e n t i a l t o b e c o m e a V E R Y S I G N I F I C A N T M A R K E T IN T H E C O M I N G D E C A D E A N D WE S H O U L D S E I Z E E V ER Y A V A I L A B L E O P P O R T U N I T Y T O E X P L O R E P O S S I B I L I T I E S .

In I n d o n e s i a , m y d i s c u s s i o n s w i t h Mi n i s t e r g i n a n d j a r a b o u t Ti m o r Ga p a r r a n g e m e n t s w e r e v e r y f r u i t f u l . T h e f i r s t f o r m a l M E E T I N G OF T H E M I N I S T E R I A L C O U N C I L E S T A B L I S H E D U N DE R THE Z O N E o f C o-o p e r a t i o n Tr e a t y w i l l b e h e l d w h e n I v i s i t De n p a s a r l a t e r

N E X T WEEK.

Ad m i n i s t r a t i v e a r r a n g e m e n t s a r e a b o u t t o b e p u t i n p l a c e s o T H A T I N D U S T R Y CAN S T A R T TH E P R O C E S S OF P R E P A R I N G FOR E X P L O R A T I O N . M I N I S T E R G I N A N D J A R A N D I S H A R E T H E V I E W T H A T T HIS E X P L O R A T I O N S H O U L D C O M M E N C E AS S O O N AS P O SSIBLE.

Ti m e d o e s n o t p e r m i t m e t o d w e l l f o r t o o m u c h l o n g e r o n t h o s e K E Y I S S U E S OF 1990. I T C E R T A I N L Y W A S AN E V E N T F U L AND P O S I T I V E F I R S T 10 M O N T H S . O T H E R H I G H L I G H T S FOR THE Y E A R I N CL U D E T H E E S T A B L I S H M E N T IN J U L Y OF THE E N E R G Y R&D CORPORATION AND THE $ 1 5 M b o o s t f o r e n e r g y m a n a g e m e n t a n d c o n s e r v a t i o n p r o g r a m s .

- 8 -

LOOKING TO 1991 AND BEYOND

En o u g h o f t h e r e a r v i s i o n m i r r o r . L e t u s n o w l o o k a h e a d .

In e c o n o m i c t e r m s , t h e s l o w d o w n i n d e v e l o p e d c o u n t r y e c o n o m i e s S E E M S LIKELY TO CONTINUE THROUGH THIS YEAR. RECESSIONARY T R E N D S ARE EVIDENT IN THE MAJOR OECD COUNTRIES AND IT IS U N C L E A R WHEN RECOVERY WILL OCCUR.

IT W O U L D SEEM THAT WE CAN LOOK FORWARD TO CONTINUING I N S T A B I L I T Y IN THE PETROLEUM M ARKETS DUE TO THE GULF CRISIS. Ho p e f u l l y , i t w i l l n o t h a v e m a j o r e c o n o m i c i m p l i c a t i o n s f o r t h e w o r l d o r Au s t r a l i a n e c o n o m i e s .

In t e r n a t i o n a l o i l p r i c e s i n r e a c t i o n t o Mi d d l e E a s t e v e n t s w i l l BE CRIT I C A L TO THE ECONOMIC FUTURES OF OUR MAJOR TRADING PARTNERS, AND TO THE DEMAND FOR, AND PRICES OF ENERGY, MINERALS AND O THER COMMODITY EXPORTS I M PO R T A N T TO AUSTRALIA.

Do m e s t i c a l l y w e h a v e w i t h i n o u r g r a s p a 20 y e a r l o w i n f l a t i o n OUTCOME. HOWEVER, A SUST A I N E D INCREASE IN INTERNATIONAL OIL P RICES W OULD SLOW ECONOMIC A CTIVITY FURTHER AND HEIGHTEN I N F L A T I O N A R Y PRESSURES. CONVERSELY, A FALL WOULD STIMULATE A C T I V I T Y AND BOOST OUR EFFORTS TO CONTROL INFLATION.

In d u s t r y h a s b e e n k e e n t h a t i n t e r e s t r a t e s a n d t h e Au s t r a l i a n D O L L A R SHOULD CONTINUE TO EASE. INTE R E S T RATES WERE REDUCED S OME 6 PERCENTAGE POINTS OVER 1990 AND THE DOLLAR HAS FALLEN F ROM ITS HIGH POINT IN S EPTEMBER LAST YEAR.

9.

De s p i t e a s l o w d o w n i n t h e m a j o r e c o n o m i e s , S o u t h - Ea s t As i a n C O U N T R I E S LOOK SE T TO C O N T I N U E TO BE AN E C O N O M I C G R O W T H ENGINE FO R S O ME T I M E YET. C E R T A I N L Y , MY D I S C U S S I O N S IN J A P A N AND K O R E A P O I N T E D C L E A R L Y TO G R O W T H O P P O R T U N I T I E S .

Ot h e r c o u n t r i e s w h i c h I d i d n o t v i s i t , l i k e Th a i l a n d , s h o w E V E R Y S I G N OF C O N T I N U I N G T H E I R R A P I D G R O W T H AS W E LL.

Th i s s h o u l d m e a n g o o d o p p o r t u n i t i e s f o r Au s t r a l i a n m i n e r a l s a n d P E T R O L E U M AN D I AM C O NF I D E N T THAT OUR EXPORTERS CAN CAPITALISE - A POINT R E INFORCED I UNDERSTAND BY DR A LLEN C L A R K IN COMMENTS THIS MORNING.

IN TERMS OF TAKING A DVANTAGE OF THESE M ARKET OPPORTUNITIES, I WAS PARTICULARLY PLEASED TO NOTE THE S U BSTANTIAL REDUCTIONS IN D EBT LEVELS WHICH HAVE O CCURRED IN THE MINING INDUSTRY OVER THE PAST FIVE YEARS.

Ou r Au s t r a l i a n m i n e r a l s i n d u s t r y n o w e n t e r s t h e n i n e t i e s w i t h H I S T O R I C A L L Y LOW D EBT TO EQUITY RATIOS AND IS T HEREFORE WELL PLACED TO RESPOND TO DEVELO P M EN T AND M A RK E T OPPORTUNITIES.

I DARE SAY THAT HAD CERTAIN OTHER A U ST R A L I A N INDUSTRIES TAKEN THE OPPOR T U N IT Y TO PUT ASIDE FUNDS FROM THEIR MORE PROFITABLE Y EARS TO GET DEBT LEVELS DOWN, THE OVERALL PICTURE OF THE

Au s t r a l i a n e c o n o m y t o d a y m i g h t b e s o m e w h a t d i f f e r e n t .

Le t m e n o w t u r n t o t h e m a j o r p o l i c y i s s u e s f o r t h e c o m i n g y e a r .

Th e e n e r g y s i d e o f m y p o r t f o l i o i s g a s p i n g f o r b r e a t h a f t e r a VERY BUSY 1990. WE HAVE MADE THE IMPORTANT POLICY CHANGES W H I C H WERE REQUIRED AND IT IS NOW TIME TO LET T H EM WORK.

10.

Th i s c o m i n g y e a r s h o u l d s e e b e n e f i t s f r o m o u r d e r e g u l a t i o n o f T H E LPG INDU S T R Y W H I C H TOOK PLACE AT THE BEGINNING OF JANUARY. De r e g u l a t i o n w i l l s e r v e t h e l o n g -t e r m i n t e r e s t s o f c o n s u m e r s , P A R T I C U L AR L Y BY E N CO U R A G IN G THE PROVISION OF INFRASTRUCTURE TO

E NSURE STABLE AND SECURE SUPP L I E S FOR THE DOMESTIC MARKET.

I AM C O NF I D E N T THAT IN 1991 AND BEYOND, OUR NEW PETROLEUM E X P L O R A T IO N STRA T E G Y WILL BEAR FRUIT. T HIS STRATEGY IS C O M P L E M E N T E D BY THE PETR O L E U M RESE A R C H AND A S SESSMENT PROGRAMS o f t h e Bu r e a u o f Mi n e r a l Re s o u r c e s w h i c h a r e p r o v i d i n g t h e

F U ND A M E N TA L K N OW L E D G E TO SU PP O R T P ETROLEUM EXPLORATION ACTIVITY. A TOTAL OF $18 MI LL I O N IS BEING INVESTED BY THE C O M M O N W E A L T H THIS YEAR IN THESE ACTIVITIES.

A U S T R A L I A N O F FS H O R E AREAS HAVE BEEN EXPERIENCING A BOOM IN P E TR O L E U M E X PL O R A T I O N ACTIVITY. ABARE’S EXPLORATION STATISTICS S H O W ALMOST A DOUB L I N G OF SPEN D I N G IN 1989-90 SINCE 1987-88, AND I A N TI C I P A TE AN EQUALLY HIGH LEVEL OF SPENDING THIS YEAR.

Th e n u m b e r o f o f f s h o r e e x p l o r a t o r y w e l l s d r i l l e d i n 1990 w a s a R ECORD AND MORE T HAN 60 PERCENT GREATER THAN IN 1989. SEISMIC SURVEYING, THE P RECURSOR TO E X PLORATORY DRILLING, INCREASED BY 20 PERCENT LAST YEAR OVER 1989 LEVELS.

T H E I NCREASED LEVEL OF OFFSHORE EXPLORATION ACTIVITY REFLECTS THE STRONG I N TE R E S T OF BOTH LOCAL AND O VERSEAS EXPLORATION C O MP A N I E S IN A U S T R A L I A ' S OFFSHORE EXPLORATION ACREAGE.

IT IS ESSENTIAL T H A T WE KEEP FINDING NEW OIL RESERVES. WHILE R ECENT DISCO V E R IE S ARE ENCOURAGING, THEY REPRESENT ONLY ABOUT TWO YEARS' CONSUMPTION.

Au s t r a l i a i s a t h i r s t y c o n s u m e r a n d t o r e d u c e o u r d e p e n d e n c e o n IMPO R T E D OIL, WE HAVE TO MAINTAIN THE EFFORT TO REPLENISH THE R ESERVES ON WHICH WE ARE NOW DRAWING.

11.

Wi t h o u t a h i g h l e v e l o f d o m e s t i c p r o d u c t i o n , w e w o u l d h a v e t o I M P O R T M O R E OIL. T H I S W O U L D I N C R E A S E O U R V U L N E R A B I L I T Y TO S U P P L Y D I S R U P T I O N S A N D A D V E R S E L Y A F F E C T OU R B A L A N C E OF P A Y M E N T S S I T U A T I O N .

A N O T H E R M E A N S OF ' F I N D I N G ' O IL IS T H R O U G H C O N S E R V A T I O N . W E H A V E A L R E A D Y S E E N C O N S U M P T I O N D R O P S O M E FIVE PER C E N T S I N C E

l a s t Au g u s t , i n r e s p o n s e t o h i g h e r p r i c e s .

Bu t w e s h o u l d n o t h a v e t o r e l y o n t h e p r i c e m e c h a n i s m a l o n e t o D R I V E H O M E T H E N E E D FOR C O N S E R V A T I O N . E V E R Y A U S T R A L I A N , BE IT A C O R P O R A T I O N OR P R I V A T E C I TI Z E N , H A S A ROLE TO PLAY IN C O N S E R V I N G F U E L - IT IS N O T J U S T A G O V E R N M E N T A L EFFORT.

IN I N D U S T R Y TERMS, T H E M I N I N G I N D U S T R Y IS A M A J O R USER OF FUEL FO R M O B I L E E Q U I P M E N T , P O W E R G E N E R A T I O N A N D PROCESSING. W H I L E I A C K N O W L E D G E T HAT FOR M ANY COMPANIES ENERGY EFFICIENCY IS A M A J O R FOCUS OF YOUR OPERATIONS, FOR MANY OTHERS, TOO LITTLE IS

B E IN G ACHIEVED. I URGE YOUR INDUSTRY TO LOOK HARD AND LONG AT THE ISSUE OF ENERGY EFFI C I E N CY AND THE INVESTMENT YOU MAKE IN ENERGY RESE A R C H AND DEVELOPMENT. U S IN G LESS ENERGY WILL BOOST

C O M P E T I T I V E N E S S AND RE DU C E AUSTR A L I A' S NATIONAL FUEL BILL.

Th e G o v e r n m e n t 's d e c i s i o n o n r e d u c t i o n o f g r e e n h o u s e g a s e s h a s LED TO THE I M P L E M E N T A T I O N OF A MAJOR ENERGY CONSERVATION P R O G R A M BEING RUN BY MY DEPARTMENT. THE PROGRAM ENCOMPASSES ENERGY AUDITS AND D E MO N S T R A T I O N PROGRAMS, AND ALSO INCLUDES A G UIDE ON ENERGY E F FI C I E N CY TO BE DISTR I B U TE D TO EVERY HOUSEHOLD.

YOU CAN LOOK FOR THIS GUIDE SOON IN YOUR MAILBOX. I HOPE THAT IT WILL AROUSE GREATER C O NSCIOUSNESS BY EVERY AUSTRALIAN ON THE I M PO R T A N CE OF THE W I SE USE OF ENERGY.

12.

La n d a c c e s s i s a m a j o r c o n c e r n f o r t h e m i n e r a l s i n d u s t r y -J U S T I F I A B L Y IN MY VIEW. I H O P E T H A T THE E C O L O G I C A L L Y Su s t a i n a b l e De v e l o p m e n t Wo r k i n g Gr o u p o n Mi n i n g m i g h t b e a b l e TO S U G G E S T S O M E G O V E R N I N G P R I N C I P L E S FOR A ' L AND U S E A C CO R D '

B E T W E E N R E L E V A N T G O V E R N M E N T S , I N D U S T R Y A ND TH E E N V I R O N M E N T A L M O V E M E N T .

A S E T OF C R I T E R I A A G A I N S T W H I C H WE C O U L D O B J E C T I V E L Y D E T E R M I N E R E L A T I V E P R I O R I T I E S FOR A L T E R N A T I V E L A ND USES IN P A R T I C U L A R A R E A S M I G H T H E L P TO B R I N G M O R E C E R T A I N T Y TO T HE D E C I S I O N - M A K I N G P R O C E S S .

W I T H E N V I R O N M E N T A L I S S U E S T A K I N G S U C H A H I G H P R O F I L E IN PUBLIC D E B A T E , B O T H T HE M I N I N G A N D E N E R G Y I N D U S T R I E S A R E IN A S E NSE 'ON T R I A L ' W I T H R E S P E C T TO T H E I R P E R F O R M A N C E .

Ev e r y m i n i n g a n d p e t r o l e u m o p e r a t i o n i n Au s t r a l i a , w h e t h e r i n a S E N S I T I V E A R E A OR NOT, IS H A V I N G TO P R OVE ITS E N V I R O N M E N T A L C R E D E N T I A L S . YO U A R E U N D E R TH E P U B L I C M I C R O S C O P E A N D P U B L I C E X P E C T A T I O N S ARE HIGH.

Le t m e b e f r a n k . I n t h e m i n d o f m a n y Au s t r a l i a n s , y o u r i m a g e IS N O T a s g o o d a s i t c o u l d o r s h o u l d b e. n o d o u b t t h e r e i s a L O T O F M I S P L A C E D O P I N I O N A M O N G THE G E N E R A L P U B L I C BUT IT IS A L S O D E B A T A B L E H O W M U C H P R O G R E S S YO U A RE M A K I N G IN THE B A T T L E

FO R P U B L I C O P I N I O N .

A M i n i s t e r f o r Re s o u r c e s m a n y y e a r s b a c k ( w h o s h a l l r e m a i n N A M E L E S S ) O N C E D E S C R I B E D TH E M I N I N G I N D U S T R Y AS A BUNCH OF " H I C K S A N D H I L L - B I L L I E S " . I CERTAINLY REJECT T HAT - I BELIEVE T H A T THE INDUSTRY HAS A VERY HIGH STANDARD OF ENVIRONMENTAL

C O M P L I A N C E AND THAT YOU CONDUCT YOUR INTELLECTUALLY DEMANDING B U S I N E S S IN AN EFFICIENT, RESPONSIBLE AND AWARE MANNER.

13.

H O W T H E E N T I R E I N D U S T R Y G O E S A B O U T ITS B U S I N E S S IN AN E N V I R O N M E N T A L SENSE, OR M O R E I M P O R T A N T L Y , IS P E R C E I V E D TO GO A B O U T IT, IS C R I T I C A L A T T H E C U R R E N T TIME. T H E R E S U L T S OF YOUR A C T I V I T I E S W I L L DO M U C H T O C O N D I T I O N THE R E L A T I O N S H I P B E T W E E N T H E R E S O U R C E I N D U S T R Y A N D T H E E N V I R O N M E N T IN THE FUTURE.

In t h i s R E GA R D , I P L A C E g r e a t i m p o r t a n c e o n t h e r o l e o f En v i r o n m e n t a l I m p a c t St a t e m e n t s a n d I w i l l b e w r i t i n g t o t h e Tr e a s u r e r i n t h e n e a r f u t u r e u r g i n g c h a n g e s t o e x i s t i n g A R R A N G E M E N T S TO P R O V I D E FO R T A X D E D U C T I B I L I T Y FOR E I S COSTS.

IN R E L A T I O N T O E X P L O R A T I O N , I A C C E P T THE N E E D FOR O N G O I N G E X P L O R A T I O N TO E N S U R E T H A T T H E S T O C K OF I D E N T I F I E D E C O N O M I C R E S O U R C E S IS C O N T I N U A L L Y R E N E W E D . T H I S H A S B E EN A T THE C E N T R E OF M A N Y OF I N D U S T R Y ' S C O N C E R N S A B O U T LAND A C C E S S - E X P L O R A T I O N

IS TH E ' R E S E A R C H A N D D E V E L O P M E N T ' TO R E P L A C E D E P O S I T S N O W B E ING MINE D .

Th e Co m m o n w e a l t h i s a s s i s t i n g i n d u s t r y i n t h i s p r o c e s s t h r o u g h t h e N a t i o n a l g e o s c i e n c e Ma p p i n g a c c o r d , t h i s y e a r , t h e Bu r e a u OF M I N E R A L R E S O U R C E S H A S C O M M I T T E D $14 MILLION IN HIGH PRIORITY PROJECTS A CROSS AUSTRALIA, PARTICULARLY IN THE CAPE YORK P E N I N S U L A AND THE E A S T E R N G O LDFIELDS OF W E S T E R N AUSTRALIA.

I HOPE T H AT THE S T A T E S AND NORTHERN T ERRITORY WILL BE ABLE TO M A TC H OUR EXPENDITURES, SO THAT THE TOTAL EFFORT IS EVEN LARGER. W O R K UNDER THIS A C C O R D WILL PROVIDE BASELINE I N F O R M A T IO N TO NOT ONLY HELP INDUSTRY IN ITS EXPLORATION

EFFORTS BUT ALSO TO AID GOVER N M E NT S IN DECISION-MAKING.

Le t m e t o u c h b r i e f l y o n t w o o t h e r t o p i c s b e f o r e I c l o s e .

So m e o f y o u w i l l b e a w a r e t h a t I a m e n c o u r a g i n g a d i a l o g u e w i t h t h e S t a t e s a n d N o r t h e r n Te r r i t o r y o n m i n i n g r o y a l t i e s . I n o t e THAT T HERE IS TO BE A SE SS I O N TOMORROW ON RESOURCE TAXATION AND IT MAY TOUCH ON THIS QUESTION.

I R E C O G N I S E THE C O M P L E X I T Y AND S E N S I T I V I T I E S ASSOCIATED WITH R O Y A L T I E S AN D POTEN T I A L REFORMS, BUT THIS DOES NOT MEAN THAT WE S H O U L D S H R I N K FROM A H A RD LOOK AT IT.

Th e I n d u s t r y C o m m i s s i o n , abare a n d o t h e r s h a v e c r i t i c i s e d t h e C U R R E N T P LETHORA OF ROYALTY A R RA N G E M EN T S ACROSS ALL J U R I S D I C TI O N S , AND I I NCLUDE THE C O M M O N W E A L T H IN THIS. IN E C ON O M I C TERMS, I T HINK THERE HAS BEEN A CLEAR DEMONSTRATION OF A P R OB L E M AREA.

IN THE C O NT E X T OF M I C R O - E C O N O M I C REFORM, WE HAVE TO START TO T A C K L E THE POSSIBILITY OF REFORM. NOT SURPRISINGLY, Go v e r n m e n t s , a n d I a m s u r e m a n y o f y o u i n t h i s r o o m , a r e C A U T I O U S AND EVEN SCEPTICAL. THAT IS UNDERSTANDABLE. MY

E X PE R I E N C E AS A M I N I S T E R IS THAT J UST ABOUT EVERYONE THINKS M I C R O - E C O N O M I C REFORM IS A GOOD IDEA - UNLESS OF COURSE THEY T H E M S E L V E S ARE THE S U B J E C T OF IT.

B U T LET ME MAKE FOUR POINTS A BOUT THESE REFORM PROPOSALS.

Fi r s t , t h i s i s n o t a Co m m o n w e a l t h r e v e n u e -g r a b . S e c o n d , w e a r e N O T WE DD E D TO RRT-TYPE SYSTEMS, ALTH O U G H I THINK THERE ARE R A T I O N A L ECONOMIC R EASONS FOR ROYALTY STRUCTURES BASED ON PROFITS OR RENTS RATHER THAN O UTPUT OR VALUE.

THIRD, THE CO MM O N W E AL T H IS NOT TRYING TO USURP STATE CONTROL O V ER MINE R A L RIGHTS. FINALLY, WE ARE NOT LOOKING TO INCREASE O V E R A L L TAXATION LEVELS ON INDUSTRY.

W H A T I AM ADVOCATING IS STARTING A PROCESS WHICH WILL WORK TO WA R D S AN EQUITABLE AND EFFICIENT ROYALTY FRAMEWORK, AND ONE W H I C H DOES NOT HINDER THE ABILITY OF THE INDUSTRY TO SUSTAIN PRODUCTION, INVESTMENT AND COMPETITIVENESS. IN MY VIEW, V A R I O U S C URRENT SYSTEMS FALL FAR SHORT AGAINST THESE CRITERIA.

I A N TI C I P A T E A D I SCUSSION WITH MY STATE AND TERRITORIAL C O LL E A G U E S AT THE M A R C H 1ST MEETING OF THE AUSTRALIAN MINERALS a n d E n e r g y Co u n c i l .

14.

15.

Th e f i n a l i s s u e w h i c h I w o u l d m e n t i o n i s v a l u e -a d d i n g . L e t m e T E L L YOU O N C E A G AI N W H Y I T H I N K T H I S IS I M P O R T A N T .

A D D I N G V A L U E TO W H A T WE P R O D U C E IS C R I T I C A L AS WE S E A R C H TO B O L S T E R O U R E X P O R T E A R N I N G S , D I V E R S I F Y O U R E C O N O M I C BASE AND T R Y TO R E D U C E OUR V U L N E R A B I L I T Y TO E X T E R N A L E C O N O M I C SHOCKS.

Wi t h a f e w e x c e p t i o n s , A u s t r a l i a 's p e r f o r m a n c e i n a d d i n g v a l u e T O M A N Y OF O U R M I N E R A L A N D M E T A L C O M M O D I T I E S IS R E A S O N A B LE .

B U T W I T H T HE E X C E P T I O N OF A L U M I N I U M AND M I N E R A L SANDS, I M P R O V E M E N T S T H R O U G H TH E 1 9 8 0 S W E R E O N LY M O DE S T .

B E T T E R V A L U E - A D D I N G P E R F O R M A N C E IS NO T A C O N T I N U O U S T H I N G AND O N E N E W P L A N T CAN H A V E A M A J O R I M P A C T ON TH E N U MB E R S . T H E R E A R E A L S O A L I M I T E D N U M B E R OF O P P O R T U N I T I E S .

Y O U W I L L BE A W AR E OF TH E D E B A T E W H I C H H AS B E EN O C C U R R I N G ON THE Q U E S T I O N OF I N D U S T R Y P O LICY, AN D TH E Q U E S T I O N S OF W H A T WE S H O U L D OR S H O U L D N O T BE D O I N G TO A I D I N D U S T R I E S W H E R E WE P E R C E I V E TH E B E ST O P P O R T U N I T I E S .

Ye s t e r d a y , t h e P r i m e Mi n i s t e r a n n o u n c e d t h a t h e w o u l d b e m a k i n g A M A J O R S T A T E M E N T ON M A R C H 1 2 T H R E G A R D I N G TH E G O V E R N M E N T ' S S T R A T E G Y A N D P O L I C I E S FO R T H E M E D I U M A N D L O N G E R T E R M E C O N O M I C D E V E L O P M E N T OF A U S T R A L I A .

T H E S T A T E M E N T W I L L M L BE A M I N I - B U D G E T . IT W I L L BE C O M P L E M E N T E D BY M O R E D E T A I L E D S T A T E M E N T S , B O T H IN THE

Pa r l i a m e n t a n d t o t h e m e d i a , b y r e l e v a n t Mi n i s t e r s i n c l u d i n g D E T A I L S OF S P E C I F I C I N D U S T R Y P O L I C Y M E A S U R E S IN A S T A T E M E N T BY

Se n a t o r Jo h n Bu t t o n .

Th e q u e s t i o n o f w h e t h e r o r n o t t h e r e s h o u l d b e a s e p a r a t e Re s o u r c e s p o l i c y St a t e m e n t d e l i v e r e d a t t h a t t i m e , o r l a t e r i n T H E YEAR, IS S T IL L TO BE D E CI D E D . FOR MY PART, I SEE M E R I T IN S U C H A S T A T E M E N T B E I N G D E L I V E R E D S O M E W H A T L A T E R T H I S YEAR.

Ce r t a i n l y , I w o u l d s e e a m a j o r f o c u s o f s u c h a s t a t e m e n t b e i n g D I R E C T E D T O W A R D S G R E A T E R S E C U R I T Y OF A C C E S S TO RESOURCES, SO T H A T Y O U R I N D U S T R Y IS A B L E TO GET ON W I T H T HE J O B OF I N V E S T M E N T A N D D E V E L O P M E N T IN A M O R E C E R T A I N E N V I R O N M E N T .

16.

In t e r m s o f t h e g e n e r a l d i r e c t i o n o f e c o n o m i c POLICY, I DO NOT T H I N K T H A T THE G O V E R N M E N T S H O U L D BE IN THE B U SI N E S S OF 'PICKING WINNERS' - T H A T IS THE F U N C T I O N OF THE M A R K E T P L A C E AND THE PRIV A T E SECTOR, A L T H O U G H IT HAS HAD ITS S H AR E OF E X PENSIVE MISTAKES.

NOR DO I S U P P O R T S U B S I D I S A T I O N . I N D U S T R I A L D E V E L O P M E N T S MUST BE C O M P E T I T I V E AND E C O N O M I C A L L Y V I A B L E IN T H E I R OWN RIGHT.

Th e m i n e r a l a n d e n e r g y s e c t o r s a r e i n d u s t r i e s w h i c h h a v e T R A D I T I O N A L L Y P R OV I D E D G R E A T E C ON O M I C B E N E F I T S TO THIS COUNTRY. W e s h o u l d b e d o i n g e v e r y t h i n g w e c a n t o e l i m i n a t e I M P E D I M E N T S TO I N C R E A S I N G T H E C O N T R I B U T I O N TH EY MAKE.

IN T H I S C O N T E X T AND AS I I N D I C A T E D Y E S T E R D A Y IN MY S PEECH O P E N I N G THE NAROC T RADE EXHIBITION, IT SEEMS TO ME THAT A MAJOR FOCUS OF OUR ECONOMIC POLI C I E S OVER THE YEARS AHEAD MUST BE TO ENCOURAGE G ROWTH IN THE SIZE OF A U S T R A L I A' S TRADED GOODS SECTOR.

Th e c u r r e n t a c c o u n t d e f i c i t r e m a i n s Au s t r a l i a 's n u m b e r o n e ECONOMIC CHALLENGE. R E DU C I N G THE CURRENT ACCO U N T DEFICIT OBVIOUSLY REQUIRES THE R IGHT MACR O - E C ON O M I C SETTINGS, BUT PERHAPS MORE FUNDAMENTALLY IT REQUIRES POLICY SETTINGS AIMED AT

INCREASING THE SIZE OF A U S T R A L I A ' S TRADED GOODS SECTOR ACCOM P A N IE D BY A V IGOROUS PROGRAM OF ECONOMY WIDE M I CR O - E C ON O M I C REFORM.

17.

I HOPE THAT IN TERMS OF MY P O RT F O L I O RESPONSIBILITIES WE CAN LOOK CLOSELY, OVER THE C O M I N G YEAR, AT WHERE THE OPPORTUNITIES LIE FOR US ON A COMMODITY BY C OMMODITY BASIS. I ALSO WANT TO R E V I E W THE IMPEDIMENTS W H I C H STAND IN THE WAY OF A BETTER

PERFO R M A NC E AND THE S T R A T E G I E S OR SPECIFIC STEPS WE CAN TAKE TO C A P I T A L I S E ON FUTURE O P PO R T UNITIES.

CONCLUSION

Le t m e d r a w a l l t h i s t o g e t h e r .

I AM SURE YOU WILL AGREE T H A T THERE IS A LOT ON THE AGENDA. IN A D D I T I O N TO THE ISSUES I H AVE CANVASSED IN SOME DETAIL THIS EVENING, THERE ARE ALSO THE QUES T I O N S OF RESOURCE SECURITY FOR THE FOREST INDUSTRIES; P I P E L I N E REGULATION FOR OUR NATURAL GAS NETWORK; AND THE D I FF I C U L T BUT NEVERTHELESS ESSENTIAL QUESTION OF A NATIONAL APPROACH TO THE ELECTRICITY GENERATION AND

T R A N S M I S S I O N INDUSTRIES. E A CH OF THESE ISSUES WILL ALSO BE A D D R E S S E D DURING THE C OURSE OF 1991.

My o b j e c t i v e , a s Mi n i s t e r f o r Re s o u r c e s , i s a s t r o n g m i n e r a l s AND ENERGY SECTOR, CAPABLE OF C O NTINUING ITS IMPORTANT C O N T R I B U TI O N TO A U S T R A L I A' S ECONOMY AND QUALITY OF LIFE. I W O U L D BE SURPRISED IF ALL OF YOU HERE TONIGHT DID NOT SHARE T H AT OBJECTIVE.

Th e m i n e r a l s a n d e n e r g y s e c t o r s a r e v i t a l t o t h e Au s t r a l i a n ECONOMY. You AND I KNOW T H A T - I AM NOT SURE THOUGH THAT IT IS A FACT FULLY APPRECIATED BY ENOUGH AUSTRALIANS.

Wh a t y o u d o, a n d t h e c o n t r i b u t i o n y o u m a k e t o o u r s t a n d a r d o f LIVING, HAS MY FULL SUPPORT. HOW YOU CARRY OUT THIS TASK IS W H A T WE JOINTLY - G O VE R N M E N T AND INDUSTRY - WILL BE I N C R E A S I NG L Y CONCERNED W I TH THIS YEAR.

18.

A S U S T A I N A B L E FUTURE FOR THE M I N E R A L S AND ENERGY SECTOR R E Q U I R E S US TO TACKLE SOME D I F F I C U L T C H A L L E N G E S WHICH, IF WE ARE TO BE SUCCESSFUL, MEANS N EW T H I N K I N G AND APPROACHES.

Co n v e n t i o n a l w i s d o m n o l o n g e r a p p l i e s .

La d i e s a n d g e n t l e m e n , 1991 p r o m i s e s t o b e a n y t h i n g b u t d u l l .