Local content Report May 2012

Government of Western AustraliaDepartment of Commerce

Local Content Report

May 2012

Contents

1. Introduction ............................................................................1

2. The resources sector – trends and implications ................2

3. Mineral and Energy Resource Development .......................4

4. State Government Actions – Post Local Industry Participation Framework .......................................................6

5. Liaison with the Commonwealth Government ....................9

6. Local Content Reporting .......................................................10

7. Conclusion .............................................................................11

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1. Introduction

This is a progress report on the implementation of the State Government’s Local Industry Participation Framework and subsequent outcomes being achieved. It is the third in a series of documents to be tabled by the Minister for Commerce and is provided to inform both State Parliament and the people of Western Australia with a commentary and update on local industry participation trends and issues.

The previous two reports (May and November 2011) are available at the Department of Commerce’s website: www.commerce.wa.gov.au/localindustryparticipation.

Positive highlights since the last report include strong take up of the State’s Industry Facilitation and Support Program by suppliers and the awarding of new, publicly announced, local contracts representing a cumulative total of more than $18 billion since 1 July 2011. It is estimated that this level of spend translates to more than 60,000 employment positions for the State.

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2. The resources sector – trends and implications

There is ample evidence that the Western Australian economy continues to perform at a level considerably above other States and Territories in areas including employment and growth. This can be attributed in part to the fact that the Western Australian economy is experiencing stronger net benefits from an increasing level of involvement with the global economy than its counterparts in the rest of Australia.

The positive linkages between Western Australia and international economic trends is illustrated by the inward flow of mineral and energy based investment and the outflow of commodities. The largest single cause of this stimulus is China’s continued expansion.

However, this is also producing increased levels of competition for many of the State’s established industrial activities. China has become a significant source of inputs, such as steel, due to the advantages it has in scale and price competitiveness, while international centres of excellence, supporting the off-shore oil and gas industry, have become a more prominent aspect of Western Australia’s relationship with the rest of the world.

In the case of other States and Territories (apart from Queensland), the consequences of an open economy have been less favourable. The transformation of Asia towards world class advanced economic and industry standing has meant stronger import competition with a weaker rise in export stimulus. Consequently, significant manufacturing and service capacity is closing or moving off-shore. Equally, new investment is being diverted away from these activities.

Therefore, it is incorrect to attribute a decline in manufacturing and service industries to the expansion of the minerals and energy sector. Rather these trends can both be seen as products of the impact of globalisation generally and of the emergence of China specifically. This means that Government, at both state and national levels, in their core role as managers of change, must respond to this basic and long-term alteration in economic circumstances.

A key priority for this Government is to maintain a positive investment environment to ensure a continued flow of capital into the State is realised and that major projects are facilitated in a timely and appropriate manner. Coupled with this is the need to maximise the local

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economic and social benefits achievable from such investment during both construction and operational phases of projects.

The introduction in July 2011 by the Minister for Commerce of the Local Industry Participation Framework was an essential step in this process. The initiatives contained within the Framework are designed to both enhance local suppliers’ ability to satisfy domestic resource project demand and to facilitate opportunities for Western Australian industry to win work packages overseas.

Another important mechanism to create this environment is the State’s Memorandum of Understanding with China, signed in September 2011. This is a crucial platform for the development of collaborative relationships between Chinese projects and Western Australian industry, both here and internationally. The Government intends to encourage and support local companies to attain key supply and support roles with projects globally, which can be translated into links back to other Western Australian suppliers.

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3. Mineral and Energy Resource Development

According to the Department of Mines and Petroleum’s latest Statistical Digest, Western Australia has 545 commercial resource projects, with these projects operating 966 mine sites and 73 oil and gas fields. In 2010 – 11, mineral and energy exports ($111 billion) accounted for 95% of the state’s merchandise exports.

Potential capital expenditure related to introduction and expansion of resource projects in Western Australia over the next five years is estimated at over $300 billion.

A further indicator of the continued prominence and momentum of Western Australia-based projects is the data collected by the Commonwealth’s Bureau of Resources and Energy Economics (Mining Industry Major Projects October 2011).

This report shows that in the six months to October 2011 four national energy projects were completed at a capital cost of $2.2 billion. Of these, the largest was the Cossack, Wanaea, Lambert and Hermes Field in the Carnarvon basin (Western Australia). The cost of this project was $1.47 billion. Since that time, Woodside’s $14.9 billion Pluto project has commenced commercial production.

Over the same period the report shows five major mining projects were completed nationally, all of which are located in Western Australia. Capital expenditure entailed was $6.5 billion and commodities involved were gold, iron ore, vanadium and rare earths.

The Bureau also recorded 37 energy projects at an advanced stage of development, either being committed or under construction. Of these, ten are based in this State, including the Gorgon and Wheatstone projects. In terms of minerals, the report provides details of 40 projects nationally of which 23 are Western Australian.

In overall terms, the value of advanced projects by State and Territory is Western Australia 63.6% and Queensland 29.6%, with the next largest being New South Wales at 4%.

At a more specific level, over the past six months key decisions and actions have included the Premier opening the $1 billion Devil’s Creek Natural Gas Project and his attendance at the Onslow site commencement ceremony for the $29 billion Wheatstone project. The State has approved the rail and power upgrades for the Hope Downs 4

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iron ore mine as the final step in a $1.2 billion production expansion by 2013. In April 2012, State endorsement was given to Rio Tinto’s $300 million phase two expansion of facilities at the town of Wickham.

It is estimated that more than $10 billion of iron ore-based expansions has been approved in the latter half of 2011.

Rio Tinto, BHP Billiton, Fortescue Metals Group, Hancock Prospecting, Aquila Resources and Citic Pacific are among the producers overseeing major developments. Current expansions are expected to lift Pilbara production by over 230 million tonnes per annum.

In areas of off-shore energy, Woodside is implementing phase one of the Greater Western Flank project ($2.5 billion) while Santos is proceeding with the $490 million Fletcher Finucane oil project.

In relation to gold, Surbiton Associates (an independent consulting group) reported that Australia retained its position as the world’s second largest producer during 2011 with Western Australia possessing the top four producing gold mines. During 2012 a range of new or revitalised projects are scheduled to come on stream in both the Murchison and Goldfields regions.

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4. State Government Actions – Post Local Industry Participation Framework

Through the Minister for Commerce, the State Government has continued to implement all the initiatives contained in the Framework. Since December 2011 this has entailed a range of actions.

a) State Government assistance for industry

- Implementation of the Industry Facilitation and Support Program has progressed to the point where over 70 applications for funding have been received and of these 56 have been approved representing a funding commitment of $1,235,013. (Appendix 2 contains a list of successful applicants and a brief description of the funded projects). Two important aspects are the high level of regional involvement (over 40%) and the interest of project proponents in working with the Department of Commerce to promote the scheme to existing and prospective suppliers.

- Monitoring of publicly announced contract award decisions to locally based businesses shows that over $18 billion dollars have been allocated since July 2011. This represents over double the worth of such contracts since November 2011. (Appendix 1 provides a list of all these contracts).

- Completion of an independent evaluation of the Western Australia’s engineering and design sector’s ability to supply to off-shore oil and gas projects. In February 2012, the Minister for Commerce announced that the State Government will work with the sector to pursue opportunities, especially in the Pre-FEED and FEED stages of projects. To this end, $100,000 has been provided to APESMA and Engineers Australia to engage in early identification of potential work packages.

- Development of a funding agreement with the Western Australian branch of the Australian Steel Institute of $82,000 to engage expert advice to assist the steel supply and fabrication industries in moving towards benchmarking, and implementation of joint-ventures.

- The provision of funding for the detailed feasibility and planning studies underpinning the establishment of the Pilbara Maritime Common Use Facility, which would facilitate local support of off-shore developments.

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b) Improved accountability and communication strategies

- Following the amendment of relevant State Agreement Acts, negotiation with BHP Billiton and Rio Tinto to produce Industry Participation Plans covering all future expansions, which are subject to these Acts. These plans will focus on linking procurement and business models to the principle of full, fair and reasonable opportunity for local suppliers, and the communication of forthcoming purchasing patterns.

- It is State government policy that all future Agreement Acts will include this requirement and any amendments to existing Acts will also incorporate this initiative.

- Communication with approximately 40 projects, not covered by the State Agreement Acts, to encourage voluntary reporting of local content outcomes and other community benefits of project activity. Discussions are under way with proponents, including Cliffs Natural Resources Pty Ltd, FQM Australia Nickel Pty Ltd and Apache Energy.

- Detailed examination with Chevron Australia Pty Ltd of the competitive performance of local industry. A key finding has been the high level of small to medium size enterprises unable to obtain pre-qualification to approved vendor status. This issue will be a major consideration of the Technology and Industry Advisory Council (TIAC) project mentioned below.

- Launch of meetings of the Browse Local Content Steering Committee with Woodside. An important aspect of the meetings has been Woodside’s provision of detailed briefings on its revised and strengthened approach to local industry participation.

- Ongoing development of a comprehensive relationship with Shell Australia including local sourcing, exchange on industry competitiveness and contribution to the examination of future directions for the steel supply and fabrication industries.

c) Further State Government initiatives

- The commissioning by the Department of Commerce of an independent evaluation on the use of Chinese and Korean specifications for steel on Western Australian projects and the reasons for such decisions.

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- Examination of opportunities by the Department of Commerce for the local supply industry to establish a closer relationship with Chinese projects internationally arising from the Memorandum of Understanding between Western Australian and China, signed in September 2011.

- Instigation by the Technology and Industry Advisory Council of a project to consider means whereby small and medium size enterprises can improve their ability to derive stimulus from expansion of the resource sector. Areas scrutinised will include links between business and universities, ability to access Commonwealth Government industry assistance programs and barriers to pre-qualification.

- Collaboration with the Town of Kwinana and other relevant parties by the Department of Commerce to investigate any linkages between youth unemployment levels in that area and local industry participation. The Australian Steel Institute is to supply details of forthcoming work packages of particular significance to the area.

- Participation in the Evans & Peck evaluation of the Industry Capability Network Western Australia (ICNWA) service and means of focussing on the need to amend the ICNWA business model to adapt to changing market conditions. The study is to be publicly launched shortly.

5. Liaison with the Commonwealth Government

Following representation by this Government, the Commonwealth has acknowledged the need to improve its approach to Australian industry participation in resource projects.

A number of joint State - Commonwealth initiatives have taken place, including:

- Membership to the Commonwealth Government’s Working Party reviewing the national application of Australian Industry Participation Plans. The Commonwealth has accepted 21 recommendations from the Working Party, with implementation scheduled to commence in July 2012. Key changes include a greater focus on sourcing intentions and outcomes, enhanced opportunity for State input and the ability to use the Plans as a basis for ongoing dialogue between government and proponents.

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- Presentation to the Prime Minister’s Manufacturing Task Force Secretariat on the important links between manufacturing activity and the resources sector and the need for the Commonwealth to adopt a long-term position and associated commitment to the industry based on competitive realities.

- Agreement with the Commonwealth Government to jointly undertake follow-on activity from the Modular study commissioned by the Department of Commerce in 2010. This will entail a national evaluation of the prospects of the steel fabrication industry in terms of opportunities to disaggregate large module work packages and for Australian suppliers to engage with Asian fabrication yards in terms of overseas module manufacturing.

The State has also been involved in the newly established Resources Forum led by the Resources Sector Supplier Envoy, Hon Peter Beattie, and welcomes the intention to appoint a Western Australian based oil and gas industry supplier advocate. However, the State does not understand why the proposed iron ore industry supplier advocate will be managed from Canberra.

The State is concerned that many of Western Australia’s small to medium sized enterprises, particularly in the regions, lack awareness in relation to Commonwealth industry assistance. There is also an inability to access the Commonwealth industry assistance programs due to high level entry criteria in areas including turnover.

The Minister for Commerce has written to his Commonwealth counterpart drawing attention to these matters and is awaiting a response. It is both unfortunate and inequitable that local suppliers are not utilising assistance which could improve their productivity and competitiveness at such crucial time.

Also, the State is looking to achieve agreement with the Commonwealth Government on the responsibility for the investigation of supplier complaints. Western Australia is proposing that a clear delineation of jurisdiction is the most straight forward approach.

The State Government welcomes the re-establishment of a Perth office for the Commonwealth’s Export Finance Insurance Corporation (EFIC) which is accompanied by a broadening of the Corporation’s scope of assistance. EFIC is now able to offer financial support to companies which are domestically supplying to other Australian based export industries such as mineral and energy projects.

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Finally, there is continuing interest in the progress and outcome of the current inquiries relating to the future of the manufacturing industry and Australia’s relationship with Asia. As has been noted, the Commonwealth Government can no longer base policy on an economic model which includes an agrarian third world Asia. Rather, Asia is and will remain the basic determinant of Australia’s economic future, both as a partner and competitor.

6. Local Content Reporting

As in previous reports, the State Government is presenting in the table below the aggregate outcomes of contracting decisions made by project proponents, covered by Agreement Acts in the period 1 July 2011 – 31 December 2011. The table provides information for both operating projects and projects either under construction or undergoing expansion.

The table confirms that levels of local industry participation are generally higher during a project’s operational phase. The figures presented also continue to illustrate the general contrast for local content between onshore and off-shore projects in large part due to issues of complexity and risk. Examples of this contrast include use of large modules and other specialised, long lead time equipment and extremely rigorous pre-qualification requirements to supply to off-shore developments.

In cases where project reports departed from benchmark levels, the Department of Commerce, as a matter of course, approaches the proponent for an explanation. In all cases, the explanation provided was accepted and related to either capacity or price issues. As has been noted in earlier reports, price margins can be very significant.

It should be noted that for the Gorgon project there has been an adjustment upwards in the value of Western Australian content in contracts awarded, due to changes in scope. Over 2011, these adjustments amounted to $1.2 billion.

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7. Conclusion

It is the State Government’s intention to continue to broaden the scope of local industry participation with increased emphasis being placed on encouragement of competitive Western Australian suppliers to consider opportunities in other markets. The activities outlined above with the engineering and design and steel fabrication industries is of significance as is continuing steps to identify opportunities for collaboration with China. The Government recognises the ongoing need to ensure project proponents and suppliers understand its commitment to securing both short term and long term benefits from the current phase in the development of the State’s economy.

Communication and discussion with the private sector and the Commonwealth government is therefore paramount in maintaining progress towards a shared goal.

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LOCAL CONTENT REPORTS - CUMULATIVE RESULTS/OUTCOMESFOR THE PERIOD: 1/07/2011 TO 31/12/2011Operating Projects Reports

Received WA ES OS TOTAL WA ES OSAdelaide Brighton Ltd (Cockburn Cement) 1 184,262,697 2,001,059 32,959,036 219,222,792 84% 1% 15%Alinta Energy (Pilbara Energy Project) (p) 1 46,400,000 6,100,000 8,500,000 61,000,000 76% 10% 14%Argyle Diamond Mines 1 453,182,405 50,921,455 12,460,627 516,564,487 88% 10% 2%Birla Nifty Pty Ltd (Copper operations) 1 191,222,854 42,178,266 281,010 233,682,130 82% 18% 0%Dampier Salt Limited 1 192,000,000 51,000,000 60,000,000 303,000,000 63% 17% 20%Iluka Resources Ltd (Mineral Sands) 1 108,732,221 45,003,286 23,813,800 177,549,307 61% 25% 13%Tiwest Joint Venture (Mineral Sands) 1 390,029,549 21,413,106 0 411,442,655 95% 5% 0%Simcoa 1 69,816,594 4,448,870 27,142,218 101,407,682 69% 4% 27%Woodside Energy Ltd (NWS) 1 328,085,476 12,739,234 56,882,696 397,707,406 82% 3% 14%TOTAL OPERATING 9 1,963,731,796 235,805,276 222,039,387 2,421,576,459 81% 10% 9%

New Projects (including expansions) WA ES OS TOTAL WA ES OSBHP Port Headland Inner harbour 2 1,660,000,000 136,000,000 222,000,000 2,018,000,000 82% 7% 11% Jimblebar 2 1,054,000,000 71,000,000 151,000,000 1,276,000,000 83% 6% 12%CP Mining (Sino Iron Ore project) 2 83,382,291 11,567,783 9,883,712 104,833,786 80% 11% 9%Rio Tinto Iron Ore (Pilbara projects) 2 1,518,903,674 280,847,615 458,516,259 2,258,267,548 67% 12% 20%Simcoa (Silicon) 2 35,576,268 309,921 3,867,271 39,753,460 89% 1% 10%Woodside NR2 1 210,794,832 3,828,245 104,070,992 318,694,069 66% 1% 33% Cossack, Wanaea, Lambert and Hermes (C 1 27,630,148 0 5,438,063 33,068,211 84% 0% 16%Worsley Alumina Pty Ltd (E&G project) 6 225,306,807 61,560,197 0 286,075,100 79% 22% 0%Chevron (Gorgon) 2 3,611,710,000 189,160,000 1,525,980,000 5,326,850,000 68% 4% 29%TOTAL NEW 20 8,427,304,020 754,273,761 2,480,756,297 11,661,542,174 72% 6% 21%

TOTAL ALL PROJECTS 29 10,391,035,816 990,079,037 2,702,795,684 14,083,118,633 74% 7% 19%

Percentage of contractContracts Awarded over $100K

Note: The above figures are based only on those local content reports that have been submitted. Reports from some of the companies, for the above reporting period, had not yet been received at the time this report was produced. 7. Conclusion It is the State Government’s intention to continue to broaden the scope of local industry participation with increased emphasis being placed on encouragement of competitive Western Australian suppliers to consider opportunities in other markets. The activities outlined above with the engineering and design and steel fabrication industries is of significance as is continuing steps to identify opportunities for collaboration with China. The Government recognises the ongoing need to ensure project proponents and suppliers understand its commitment to securing both short term and long term benefits from the current phase in the development of the State’s economy. Communication and interchange with the private sector and national government is therefore paramount in maintaining progress towards a shared goal.

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Appendix 1

Company Owner Project Description Value (estimated) ReferenceDate

ABB Rio Tinto Pilbara To construct 17 power distribution substations.

100,000,000 14/03/2012

Abesque Engineering Shark Bay Resources Pty Ltd

Shark Bay Design and Construction. 30,000,000 17/08/2011

Abigroup Rio Tinto Expansion Project Rail formation framework agreement (5 year term).

500,000,000 12/07/2011

Abigroup Rio Tinto Expansion Project Rail formation earthworks ($83,000,000).

Aggregate (refer above)

13/09/2011

Abigroup Fortescue Metals Group Expansion Project Rail embankment duplication. 42,500,000 13/09/2011

AGC Industries Pty Ltd Gindalbie Metals Karara Iron Ore Structural, mechanical and piping. Undisclosed 11/08/2011

AGC Industries Pty Ltd Rio Tinto Dampier Incremental Expansion

Structural, mechanical and piping. 30,000,000 14/09/2011

AGC Industries Pty Ltd Rio Tinto Brockman 4 Construction of pilot plant. 22,000,000 24/10/2011

AGC Industries Pty Ltd Chevron Gorgon Fabrication of shear keys. 8,000,000 Dec 2011

AGC Industries Pty Ltd Gindalbie Metals Karara Iron Ore Structural, mechanical and piping installation works.

160,000,000 16/03/2012

AGC Industries Pty Ltd Southern Seawater Alliance

Desalination Plant Structural, mechanical and piping installation of the main facility and fabrication of the secondary steelwork.

30,000,000 04/05/2012

Allmine/Arccon/Construction Industries Australia

MCC Mining Sino Iron General Construction. 53,000,000 13/10/2011


MCC Mining Sino Iron Service Contract. 50,000,000 02/11/2011


Downer EDI Undisclosed Undisclosed 10,000,000 09/04/2012

Ausco BHP Billiton Iron Ore Packsaddle 540 Room Villages. 24,000,000 28/09/2011

Ausco Roy Hill Roy Hill Iron Ore Accommodation Unit Supply; Accommodation Unit Hire; Rail Camp - Kitchen and Dining Room Supply Including Port Kitchen Camp; Ancillary Buildings Rail.

50,000,000 10/04/2012

Ausco Hancock Prospecting Roy Hill Iron Ore 4 x 500 Man Camps. 35,000,000 07/10/2011

Ausdrill Fortescue Metals Group Solomon Production Drilling. 75,000,000 26/07/2011

BGC Contracting Hancock Prospecting Roy Hill Iron Ore Build an aerodrome and two key roads.

120,000,000 20/04/2012

BIS Industries Gindalbie Metals Karara Iron Ore A 15 year contract to manage tailings.

23,000,000 10/01/2012

Brierty Ltd Fortescue Metals Group Solomon Construction of rail formation. 60,000,000 04/11/2011

Brierty Ltd Fortescue Metals Group Cloudbreak Construction of Fuel Loading and Provisioning Facility.

10,000,000 15/11/2011

Brierty Ltd JV Ngarluma Yindjibarndi Foundation

Rio Tinto Cape Lambert To include earthworks, services, road works and landscaping and to develop 221 housing lots.

55,000,000 10/05/2012

Cape Crushing and Earthmoving Contractors Pty Ltd

BHP Billiton Nickel West Ore handling, crushing and sampling.

40,000,000 29/07/2011

Cardno BEC Rio Tinto Tom Price, Paraburdoo and Channar iron ore mines in WA.

Supply design services for an electrical infrastructure upgrade.

22,000,000 13/02/2012

CEPT Joint Venture Fortescue Metals Group Cloudbreak EPC 247,000,000 01/11/2011

Publically announced contracts

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Central Systems Chevron Gorgon To undertake earthworks, site preparation and pre-cast concrete construction for KT's carbon dioxide injection pipeline package.

7,000,000 08/05/2012

Civmec Construction & Engineering

Chevron Wheatstone Will supply structural steel. Undisclosed 14/07/2011

Cleveland Compressed Air Services

Chevron Wheatstone Compaction Phase Air Compressor Package.

Undisclosed 08/10/2011

Clough Forge Joint Venture Hancock Prospecting Roy Hill Iron Ore Build port materials handling facility.


Clough Chevron Wheatstone Provide labour, materials and a support vessel for the offshore hook-up and commissioning component of the Wheatstone project.

350,000,000 02/02/2012

Clough Amec Chevron Wheatstone Building the maintenance database, assuring operational readiness, training and development programs, operations engineering and support services.

30,000,000 11/04/2012

Clough and BAM International Joint Venture

Chevron Wheatstone Design and construction of the product loading facility and tug berths.

400,000,000 09/02/2012

Construction Industries Australia (a subsidiary of Allmine Group)

Citic Pacific Sino Iron Undisclosed 23,000,000 19/01/2012

Coretrack Ltd Newcrest Mining Newcrest Rig Services. 2,000,000 15/09/2011

CTEC Hamersley Iron West Angelas power station

Includes the design, supply and manufacture of two low emission open cycle gas turbine units with the capability of running on natural gas and diesel fuel.


Decmil Group Chevron Wheatstone Fly Camp. 70,000,000 11/10/2011

Decmil Group FMG Christmas Creek Design, approvals, procurement, construction and commissioning of an airport.

30,000,000 13/12/2011

Decmil Group Rio Tinto The Western Stream of it's 333 program

A five-year framework agreement to provide civil works including workers and equipment.


Decmil Group FMG T155 rail expansion program

Will build a 200-person rail camp. 28,000,000 16/02/2012

Decmil Group FMG Various To deliver a rail car workshop, amenities building and administration centre. Variations to existing contracts include additional accommodation and rooms.

137,000,000 14/05/2012

Downer Clough Joint Venture CSBP Ammonium nitrate facility

Involves the construction of an additional nitric acid plant and ammonium nitrate plant, together with an upgrade of the existing infrastructure.

200,000,000 15/12/2011

Downer EDI Mining Undisclosed Pilbara Electrical and instrumentation. 142,000,000 04/10/2011

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Downer EDI Mining Karara Mining Limited Karara Iron Ore A six year contract for drill and blast and load and haul services.

570,000,000 06/02/2012

Downer EDI Mining Gindalbie Metals Karara Iron Ore The contract includes electrical and instrumentation works.

64,000,000 20/02/2012

Downer EDI Mining BHP Billiton Iron Ore Pilbara Supply of locomotives. 400,000,000 02/03/2012

Downer EDI Mining Rio Tinto Cape Lambert 5 year framework agreement that provides Downer with preferred contractor status for electrical and instrumentation work.


Emerson Chevron Gorgon To supply control valves and valve actuators to regulate gas flow.

63,300,000 13/03/2012

Empired St Barbara To deliver a range of services, including service desk, desktop, server and network managed infrastructure services to all of St Barbara’s core business systems and remote operations.

4,500,000 09/05/2012

Ertech Holdings Chevron Gorgon General services. 50,000,000 08/11/2011

Forge Group (Cimeco Pty Ltd) Fortescue Metals Group Solomon Primary Crushing Hubs. 200,000,000 30/08/2011

Forge Group (Cimeco Pty Ltd) FMG Solomon Iron Ore Construction of civil and concrete works.

125,000,000 28/03/2012

Forge Group (Cimeco Pty Ltd) JV Pilbara Logistics

BHP Port Hedland Will provide a scope of work associated with the first phase of BHP's non process infrastructure.

41,000,000 04/05/2012

FMC Technologies Chevron Wheatstone Design, manufacture and supply of subsea production systems.

325,000,000 23/01/2012

FMC Technologies Woodside Greater Western Flank Design, manufacture and supply of subsea production systems.

150,000,000 01/02/2012

Fugro TSM Woodside North West Shelf Project

Responsible for project management, engineering, procurement and execution under the Great Western Flank Phase 1 subsea installation contract.

100,000,000 10/02/2012

GCo Electrical Karara Mining Limited Karara Iron Ore The contract works include the installation of cables and cable trays, wiring, switch rooms, transformers and lighting, as well as relocation works of existing port infrastructure including substations and high-voltage cabling.

8,500,000 08/03/2012

GE Oil and Gas Apache Energy Julimar Gas Project Supply subsea equipment. 150,000,000 24/02/2012

GR Engineering Newcrest Mining Telfer Gold Mine EPC, Regrind Project. 48,000,000 07/10/2011

GR Engineering Central Tenemyte Gold Central Tenemyte Gold Letter of Intent, EPC - refurbishment, upgrade and re-commissioning of process plant.


07/10/2011

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GR Engineering Sandfire Resources DeGrussa copper-gold project

EPCM contract which includes the foundations, structures, mechanical equipment, piping, electrical, instrumentation, controls, and information management systems of the plant.

12,000,000 04/04/2012

GR Engineering Newcrest Mining Telfer Gold Mine Engineering design and documentation, fabrication, construction and commissioning works.

18,000,000 23/04/2012

Hertel Modern Chevron Gorgon Paint, insulation and fireproofing services (3 year term).

90,000,000 28/11/2011

Highline Ltd Chevron Wheatstone Bolted Tanks Construction Phase. Undisclosed 10/11/2011

Highline Ltd Chevron Wheatstone Bolted Tanks Construction Village. Undisclosed 10/11/2011

Highline Ltd Chevron Wheatstone Bolted Tanks Compaction Phase. Undisclosed 27/10/2011

ISS Group Chevron Gorgon Licences, services, maintenance and software support.

2,400,000 19/01/2012

Kentz/CBI Extension Hill Gorgon Various 2,300,000,000 21/07/2011

Keller Australia Group (Frankipile Australia Pty Ltd)

Chevron Wheatstone Piling Installation. 180,000,000 23/01/2012

KJ Johnson & Co Rio Tinto Cape Lambert Port B Supply and install overhead lines. 15,000,000 14/11/2011

Leighton Contractors and Ngarda Civil and Mining

Rio Tinto Hope Downs Earthworks. 104,000,000 25/08/2011

Leighton Contractors Regional Development and Lands

Ord-East Kimberley Project

Construction works. 146,000,000 08/12/2011

Leighton Contractors OneSteel South Middleback Ranges

Includes supervision, equipment, labour, materials and infrastructure.

240,000,000 15/12/2011

Leighton Contractors (John Holland)

Chevron Wheatstone Design and construction of an accommodation village including a 3,800-bed village which includes recreation centres, a football oval, a swimming pool, tennis courts, a medical centre and dining facilities.

370,000,000 12/12/2011


Chevron Wheatstone Design and construction of 12 permanent buildings for the onshore gas processing facilities, including an operations building, laboratory, maintenance centre, vehicle maintenance shop, fire station and plant warehouse.

240,000,000 22/12/2011

Leighton Contractors (Thiess) Chevron Wheatstone Subsea Pipeline Microtunnel - Construction of a 1.2 kilometre long tunnelled shore.

60,000,000 22/12/2011


Chevron Wheatstone Design and construct a package of 12 permanent buildings.

240,000,000 09/01/2012

Leighton Contractors (Thiess) and JV Besix

Chevron Wheatstone Design and develop a breakwater and materials offloading facility.

260,000,000 31/01/2012

Leighton Contractors (Thiess) and EV LNG

Chevron Wheatstone Engineering, procurement and construction of two LNG full containment storage tanks.

500,000,000 20/02/2012

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Leighton Contractors (Thiess) Chevron Wheatstone Preparation of the site for the liquefied natural gas project’s downstream processing including the bulk and final-finish earthworks for the plant, storm water drainage system and access roads around the project.

450,000,000 20/04/2012

LogiCamms Rio Tinto Intercourse Island and Cape Lambert sites

Two design contracts. 8,300,000 11/01/2012

LogiCamms Chevron Gorgon To conduct maintenance reviews, build asset registers, and develop maintenance tactics.

8,000,000 17/02/2012

MacMahon Fortescue Metals Group Solomon Deposit Rail Spur Construction 300,000,000 16/08/2011

MacMahon Tropicana Joint Venture Tropicana Gold Mine Development (10 year term). 900,000,000 15/07/2011

MacMahon BHP Billiton Iron Ore Wheelarra Construct haul roads and run mine pad.

129,000,000 12/08/2011

MacMahon Newmont Boddington Gold Mine Mining operation and ore re-handling.


12/08/2011

MacMahon Panoramic Resources Savannah Production drilling, cablebolting and shotcreting.


12/08/2011

MacMahon Rio Tinto Hope Downs 4 Rail Earthworks and Bridge Construction.

129,000,000 04/07/2011

MacMahon Rio Tinto Cape Lambert Port B Bridges over Boat Beach Road. Aggregate (refer above)

04/07/2011

MacMahon Rio Tinto Cape Lambert Port A Bulk Earthworks, Roadworks and Civil Works.


04/07/2011

MacMahon FMG Solomon Deposit/ Chichester Range

Construct a rail spur including a construction of four major bridges.

330,000,000 21/12/2011

Matrix Composites & Engineering Ltd

Various Projects Various Projects Supply of iron ore car dumper components, drilling centralisers and various other products and services.

14,000,000 17/11/2011

McLaren Hire Chevron Wheatstone/ Gorgon Supply vehicles. Undisclosed 06/12/2011

Metro Lintel Steel Chevron Gorgon Draw, fabricate and supply. 5,486,000 00/08/2011

Mine Power Kentor Gold Murchison Gold Project Undisclosed Undisclosed 6/03/2012

Mineral Resources Fortescue Metals Group Christmas Creek 2 Design, Construct and Operate (over 10 year term).

1,000,000,000 04/07/2011

Mining and Civil Australia Kimberley Diamonds Company NL

Ellendale Mining Services including drilling an blasting, loading and hauling and crusher feed (21 month term).

65,000,000 17/11/2011

Monadelphous Various (a) Cape Lambert (b) Cooroy and Woodford sewage treatment plant (c) Ok Tedi Mining

(a) Structural, mechanical and piping works (b) water utility (c) pipeline remediation .

140,000,000 18/11/2011

Monadelphous BHP Billiton Worsley Alumina Three year contract, minor capital project services.


Monadelphous Rio Tinto and Hancock Prospecting

Hope Downs 4 Iron Ore Structural, mechanical and piping. 150,000,000 19/09/2011

Monadelphous Woodside Pluto LNG Mechanical commissioning support.


Monadelphous Chevron Gorgon LNG Onshore Gas Pipeline. 180,000,000 21/10/2011

Monadelphous Bechtel Wheatstone Construction, operation support and services contract.

70,000,000 16/12/2011

17


Monadelphous BHP Billiton Port Hedland Inner Harbour Project

Comprises structural, mechanical and piping work associated with materials handling and processing facilities.

290,000,000 23/12/2011

Monadelphous Rio Tinto Coastal Waters Project Will construct and install a potable water supply system.

Aggregate (refer to above)

30/01/2012

Monadelphous BHP Billiton Macedon Gas Project Structural, mechanical and piping installation.

150,000,000 16/05/2012

Monadelphous Rio Tinto Pilbara Design and constrcution of a gas transmission pipeline.


16/05/2012

Neptune Marine Services (alliance with Greatship Subsea Solutions Australia Pty Ltd)

Hess Exploration Australia Pty Ltd

Equus Gas Fields Development

Geotechnical and geophysical surveys.

14,500,000 16/11/2011

Nomad Building Solutions Rio Tinto Western Turner Brockman

Design and build accommodation and laundries.

6,300,000 20/07/2011

Nomad Building Solutions Rio Tinto Cape Lambert Design and manufacture of camp buildings.

3,500,000 20/07/2011

Nomad Building Solutions Newmont Mining Boddington Gold Mine Purchase of rental accommodation for 187 workers.

8,500,000 30/11/2011

Norfolk Group Rio Tinto Brockman mine Electrical and instrumentation engineering and installation services.

17,500,000 10/04/2012

NRW Holdings Limited Fortescue Metals Group Herb Elliott Site Works. 112,000,000 29/07/2011

NRW Holdings Limited (Joint Venture Ngarluma and Yindjibarndi Foundation Limited (NYFL) and Eastern Guruma Pty Ltd

Fortescue Metals Group Solomon Various 80,000,000 29/07/2011

NRW Holdings Limited Fortescue Metals Group Pilbara Main Rail Line Duplicateion Works. 70,000,000 14/07/2011

NRW Holdings Limited Chevron Wheatstone Construction of access roads. 99,000,000 11/11/2011

NRW Holdings Limited Rio Tinto Various Various 125,000,000 19/04/2012

O’Donnell Griffin (Norfolk Group)

Undisclosed Pilbara Electrical and instrumentation for the construction and commissioning of underground crushing, conveying and dewatering facilities.

37,000,000 26/07/2011

O’Donnell Griffin (Norfolk Group)

BHP Billiton Pilbara Rail signalling systems. 82,000,000 28/11/2011

OTOC Australia (Ocean to Outback)

Rio Tinto Cape Lambert Civil works and associated services, EPCM and Contractors Area.

10,700,000 25/10/2011


Rio Tinto Western Turner Brockman

Installation of permanent buildings. 3,700,000 25/10/2011


Extension Hill Magnetite EPHL Exploration Camp. 33,000,000 25/10/2011


Hancock Prospecting Roy Hill Iron Ore Rail Camp - Design, supply and installation.


25/10/2011


Rio Tinto West Angelas village Infrastructure upgrades and installation of transportable accommodation buildings.

14,000,000 27/03/2012

Pindan Rio Tinto Rail Capacity Enhancement

Accommodation Rooms and Associated Facilities.

15,000,000 31/08/2011

Pindan Fortescue Metals Group Solomon Hub - Iron Ore Permanent Camp Construction. 56,000,000 17/11/2011

18


Qube Logistics Sandfire Resources DeGrussa copper gold-project

Haulage and port services. 120,000,000 16/03/2012

QR National Alcoa South West Road Haulage Agreement - Transport of bauxite, alumina and refinery inputs (10 year term).

400,000,000 19/10/2011

RCR Ltd Fortescue Metals Group Solomon Iron Ore EPC - engineering, procurement, construction and pre-commissioning.

600,000,000 02/11/2011

RCR Ltd BHP Billiton Iron Ore Yarnima To provide power generation works including the design, manufacture and supply of three heat recovery steam generators and associated equipment.

30,000,000 17/01/2012

Resource Development Group (Pacer Corporation is a subsidiary)

Silver Lake Resources Murchison Gold Project Design and construct a processing plant.

35,000,000 12/03/2012

Savcor Dampier Salt Dampier Ship Loading Jetty

Includes the removal of the existing timber decking system, refurbishment and painting of the steel superstructure, and the installation of a new precast concrete decking system.

12,800,000 12/12/2011

Skywest Airlines Ltd Bechtel Wheatstone Charter Contract - Transport constructions workers (6 year term).


Skywest Airlines Ltd BHP Billiton Iron Ore Area C and Yandi Air charter services (1 year term). Undisclosed 03/11/2011

Southern Cross Electrical Engineering

Sino Iron Area F Process plant construction of power line.



Rio Tino Cape Lambert Port B Project

15,000,000 14/11/2011


Citic Pacific Sino Iron Ore To work on the concentrator area for the second process train and to begin work on the conveyors at the project.

16,000,000 27/04/2012

Svitzer Australia Chevron Gorgon Svitzer will supply four 33m 80-tonne bollard-pull azimuthing stern drive (ASD) tugs and a 16m Pantocarere self-righting pilot boat.


Toll Mermaind Logistics Broome Pty Ltd

Shell Shell Prelude FLNG Project

Supply Base and Logistic Support Services.


TWSP Newmont Tanami Gold Mine Developing a vertical shaft and associated works at the Northern Territory operation.

35,000,000 13/12/2011

UGL Citic Pacific Sino Iron Ore Constuction and installation of desalination plant stage 2.


UGL Various Projects Various Projects Includes work on a desalination plant at the Sinosteel plant; a maintenance contract at BHP's Olympic Dam and crude distillation unit work with Caltex.

200,000,000 29/11/2011

UGL Various Projects Various Projects 370,000,000 18/04/2012

VDM Group Various Various Various 65,000,000 24/10/2011

VDM Group BHP Billiton Iron Ore Newman Earthworks and roadworks. Aggregate (refer above)

22/08/2011

19


VDM Group AngloGold Ashanti Australia Limited

Tropicana Gold Internal roads, diversion channels, fencing and temporary accommodation camp.


14/10/2011

VDM Group Karara Mining Limited Karara Iron Ore Design and construction of minesite warehouse, workshops and washdown facility.

10,000,000 14/10/2011

VDM Group BHP Billiton Petroleum Macedon Gas Design and construction of administration control and warehouse maintenance buildings.

9,200,000 29/11/2011

VDM Group BHP Billiton Iron Ore Central REG Camp Contract variation. Installation of a central accommodation camp.

21,400,000 29/11/2011

VDM Group BHP Billiton Petroleum Macedon Gas Project Design and construction of onsite buildings including administration control and warehouse maintenance buildings.

9,200,000 29/11/2011

VDM Group BHP Billiton Iron Ore Jimblebar project Design and construction of an ammonium nitrate storage facility.

25,200,000 10/01/2012

VDM Group CITIC Pacific Sino Iron project To proceed with the Line 2AG mill and ball mill mechanical installation package for the mine’s developer, MCC Mining.

15,000,000 16/05/2012

Velocious Chevron Gorgon Subsea Gas Piping Support 5,000,000 05/08/2011

WestNet Rail Karara Mining Limited Karara Iron Ore Access to rail network, rail infrastructure supports service (15 year agreement).

450,000,000 16/11/2011

Wood Group Australia Hess Exploration Australia Pty Ltd


To undertake work for a subsea gas gathering system and pipeline to link to an approved or existing liquefaction pipeline.

8,100,000 1/02/2012

Worley Parsons Hess Exploration Australia Pty Ltd


To undertake the contract for a deepwater semi-submersible platform.


Worley Parsons Chevron Wheatstone Construction Management Services.

235,000,000 06/10/2011

20

APPENDIX 2

Name of company Region Suburb/ town FundsCommitted ($) Project

1 Goldfields Crane Hire Goldfields Kalgoorlie $23,521.00 equipment acquisition

2 Esperance Sheet Metal Goldfields Esperance $25,000.00 equipment acquisition

3 Newland Associates Goldfields kalgoorlie-boulder $20,000.00 equipment acquisition

4 Hicrest & Jeering (B&J Building...) Kimberley Broome $25,000.00 temporary expert assistance; marketing and promotion; staff training

5 Bradford Retaining Metro Landsdale $25,000.00 marketing and promotion

6 Johnson Hi-Tech (Australia) Pty Ltd Metro Rivervale $25,000.00 temporary expert assistance

7 Infratech Pty Ltd Metro O'Connor $25,000.00 marketing and promotion; temporary expert assistance; equipment acquisition

8 Friob (Project Industries) Metro Malaga $20,000.00 facility upgrade

9 Mycologia Pty ltd (Mouldworx) Metro Osborne Park $25,000.00 certification

10 Alltype Engineering Metro Naval Base $12,970.00 marketing and promotion; accreditation; business planning

11 Complete Fire Design Metro Mt Lawley $25,000.00 temporary expert assistance; conference attendance

12 Bossong Engineering Pty Ltd Metro Welshpool $25,000.00 equipment acquisition

13 Franmarine Underwater Services Metro Henderson $21,750.00 temporary expert assistance

14 Structural Marine Metro Henderson $25,000.00 improvements to internal business infrastructure

15 Scope Australia Metro West Perth $25,000.00 improvements to internal business infrastructure

16 Orelogy Metro West Perth $4,500.00 trade delegation

17 Lotus Engineering Pty Ltd Metro Rockingham $25,000.00 equipment acquisition

18 Camco Engineering Metro Canning Vale $25,000.00 equipment acquisition

19 Westralian Engineering Metro Henderson $25,000.00 certification

20 KAPP Engineering Metro Balcatta $25,000.00 improvements to internal business infrastructure; accreditation

21 Austindo Metro Henderon $25,000.00 equipment acquisition

22 Bradken limited Metro Henderson $25,000.00 equipment acquisition

23 Arpels pty ltd (CMM technology/Mediscreens) Metro Osborne Park $14,356.00 accreditation; equipment acquisition

24 JV Engineering Metro Welshpool $5,000.00 certification

25 Inflatable packers Metro Osborne Park $25,000.00 equipment acquisition

26 Elle Holdings (Hamilton Engineering) Metro Henderson $25,000.00 equipment acquisition

27 PDC Global (PDC Consultants) Metro Applecross $25,000.00 improvements to internal business infrastructure

28 Delmoss Nominees(Welldrill) Metro Henderson $12,617.00 improvements to internal business infrastructure

29 Ocean Technix Metro Henderson $7,099.20 equipment acquisition; training

30 Park Engineers Pty Ltd Metro Welshpool $16,621.00 improvements to internal business infrastructure

31 Woma Metro Yangebup $25,000.00 improvements to internal business infrastructure

32 Secure Systems Metro Balcatta $25,000.00 marketing and promotion

33 Perth Surveying Services Pty Ltd Metro Landsdale $25,000.00 certification

34 Hilite Aluminium products (Barrowman Holdings) Metro Malaga $15,000.00 consultancy; marketing; training

35 Geraldton Building Services and Cabinets Mid West Geraldton $25,000.00 temporary expert assistance

36 Moorbec Pty Ltd (MC Crushing & Screening) midwest Morawa $17,285.00 equipment acquisition

37 Oracle Energy midwest Geraldton $14,800.00 health and safety consultancy

38 Pinjarra Engineering Peel Pinjarra $25,000.00 equipment; OHS training

39 Cays Engineering Peel Greenfields $25,000.00 improvements to internal business infrastructure; training

40 Blupoint Peel Pinjarra $25,000.00 business and marketing plan development

41 Pilbara Glass & Window (Pilbara GlazPilbara Newman $23,195.50 equipment acquisition

42 Bunbury Engineering Network Pty LtdSouth West Bunbury $24,847.00 equipment acquisition

43 Kenlake Holdings (BVA Metal FabricaSouth West Picton $25,000.00 equipment acquisition

44 Geographe Enterprises South West Bunbury $25,000.00 improvements to internal business infrastructure; training

45 Shinning Future Indust.(Connop Metal) South West Bunbury $25,000.00 equipment acquisition

46 Deeric Holdings (RTW Steel..) South West Capel $25,000.00 equipment acquisition; marketing and promotion; training

47 Dwyer Engineering & Construction South West Harvey $25,000.00 equipment acquisition

48 Gemi Pty Ltd (FTE Engineering) South West Busselton $25,000.00 equipment acquisition; training


50 Simon Barclay Solar Energy South West Busselton $6,452.00 certification

51 Conquest Wheatbelt Dalwallinu $25,000.00 equipment acquisition

52 Bosston Auto Bodies Wheatbelt Cunderdin $25,000.00 equipment acquisition; staff training

53 Shermac Engineering Wheatbelt Dalwallinu $25,000.00 equipment acquisition

54 Tampico Pty Ltd(Demster Steel) Wheatbelt Northam $25,000.00 equipment acquisition

55 Dalwallinu Concrete Wheatbelt Dalwallinu $25,000.00 equipment acquisition

56 Chelasa & Trefel (AWP Group) Wheatbelt Cunderdin $25,000.00 equipment acquisition

$1,235,013.70

Successful applicants - Industry Facilitation and Support Program

IFSP approvals per region(54% Metro; 46% regional)

Goldfields

Mid WestSouth West

Wheatbelt

Kimberley

PilbaraPeel

Metro

21

APPENDIX 2


























































$1,235,013.70



Goldfields

Mid WestSouth West

Wheatbelt

Kimberley

PilbaraPeel

Metro

22

APPENDIX 2


























































$1,235,013.70



Goldfields

Mid WestSouth West

Wheatbelt

Kimberley

PilbaraPeel

Metro

The trend demonstrated in this chart in terms of strong levels of regional interest in the program, has been evident since the programs introduction. Department of Commerce officers have visited each region in Western Australia, at least once and further promotions are planned throughout the remainder of 2012. A close working relationship is being established with a number of major project proponents in terms of raising awareness of the Industry Facilitation and Support Program with their suppliers. Additionally, peak industry associations have also agreed to publicise the availability of assistance to their members. Other parties working with the Department of Commerce include Local Government Authorities, Regional Chambers of Commerce and Regional Development Commissions.

23

Documents

Local content Report May 2012