AUSTRALIA'S ENERGY

AND MINERAL RESOURCES

INVESTOR GUIDE
Department of Industry, Science, Energy and Resources
Minister for Resources, Water and Northern Australia:
The Hon Keith Pitt MP
Secretary: Mr David Fredericks PSM
Geoscience Australia
Chief Executive Officer: Dr James Johnson
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AUSTRALIA'S ENERGY
AND MINERAL RESOURCES
INVESTOR GUIDE
Your guide to investing in Australia's
energy and mineral resources
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

Australia services sector make Australia an exceptional

destination for global resources investment.

offers untapped Your decision to invest in Australian resources and energy

ensures you are engaging in a highly profitable industry

and exciting supported by a transparent regulatory environment, highly

educated and innovative workforce and within close

opportunities
proximity to high-growth Asian markets. The Australian
mining industry is a world leader in sustainable resource

for resource
management and mine safety.
Australia is an under-explored continent with highly

development
prospective geology. To help you get started, Australia
boasts the world’s most advanced pre-competitive
geological intelligence detailing the potential mineral,
energy and groundwater resources concealed beneath
the surface. Significant discoveries continue to be made and
The Australian resources sector is one of the largest progressed through to development. Over the last five years,
more than $310 billion of new and expansion projects have
and most advanced in the world. Our extensive natural
been completed and a large range of developing energy,
onshore and offshore petroleum reserves, abundant bulk, base, precious and critical mineral projects offer
mineral resources, well-established mining industry exciting investment opportunities.
and world-leading mining equipment and technology
3
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

World-class 12% of Australia’s oil production and 6% of conventional

gas production.

energy resources The onshore Perth Basin in Western Australia has been a
producing gas province over many decades. The available
resource volumes were recently expanded through
discoveries at Waitsia, Beharra Springs and West Erugella.
Australia’s non-renewable energy resources include Offshore Victoria has produced, over the past 50 years,
fossil fuels (coal, natural gas and petroleum) and nearly 5 billion barrels of oil and over 9.8 trillion cubic feet
nuclear energy fuels (uranium and potentially thorium). of gas from the Gippsland Basin where exploration and
Australia has particularly vast identified resources of development activities continue. The Otway Basin has
emerged as a reliable gas producing province and recent
coal, natural gas and uranium. Production levels of
farm-ins by national and international energy companies
these resources remain high allowing Australia to be a demonstrate the high potential to discover additional
net energy exporter. resources for the southeast-Australian gas market.
The Beetaloo Sub-basin in the Northern Territory is
Oil and gas resources currently being explored for its vast amount of shale gas.
Australia’s LNG industry has rapidly developed to become Strong industry interest is evident in the greater Beetaloo
one of the world’s largest exporters, supplying customers region which offers multiple investment opportunities for
through a series of hubs around Australia’s western, resource development.
northern and eastern ports.
The North West Shelf (NWS—Northern Carnarvon, Coal resources
Roebuck, Browse and Bonaparte basins) is Australia’s Australia is the world’s largest exporter of black coal. The
largest petroleum-producing region containing over 70% coal export industry is serviced by 10 coal terminals at six
of Australia’s oil and gas resources. This major offshore ports along the eastern coast of Australia. Port Waratah
region hosts numerous commercial accumulations of in Newcastle (New South Wales) is the largest coal export
natural gas as well as many producing oil fields. port in the world. Hay Point (Queensland) is one of the
In 2014, a new oil province was discovered in the largest coal-loading facilities in the world.
Roebuck Basin (Bedout Sub-basin), which until then Queensland hosts major coal deposits in the Surat, Bowen,
was an underexplored part of the NWS. The discovery Galilee and Clarence-Moreton basins. New South Wales
has triggered enormous industry interest which has contains a number of large and high-quality resources
translated to multiple applications for exploration permits for coal including major deposits in the Hunter Valley,
in adjacent areas. Gunnedah, Illawarra and Lithgow regions.
Currently, the largest developments of natural gas on
the NWS are Ichthys, Prelude and Gorgon. The INPEX- Uranium resources
operated Ichthys field is being produced via an 890 km
Australia has the world’s largest Economic Demonstrated
long pipeline to facilities in Darwin. The Shell-operated
Resources of uranium and is the world’s third largest
Prelude field is being produced onsite via the world’s
uranium producer. Australia also has the third largest
largest floating LNG vessel. Production of the Chevron-
reserves of thorium in the world.
operated greater Gorgon area includes the subsurface
storage of carbon dioxide on the Barrow Island facility. South Australia hosts the world’s largest uranium deposit
at Olympic Dam. Significant uranium deposits are also
The Surat and Bowen basins in Queensland are Australia’s
located in the Northern Territory and Western Australia.
major coal-seam gas-producing basins, accounting for
more than 10% of Australia’s gas production. Much of
the coal-seam gas resources in the eastern coal basins
are being converted to LNG and exported from three
production facilities in the Gladstone area.
The Cooper Basin in South Australia and Queensland
is the main onshore petroleum province. It accounts for
 5

Bonaparte Basin

Browse Basin

Northern
Carnarvon Beetaloo
Basin Sub-basin QLD
Roebuck
Basin Galilee Basin

Hay Point
NT
Bowen Basin

WA

Surat Basin

Olympic Dam Gunnedah Basin

Clarence
–Moreton
Perth Basin Basin
SA
Port Waratah
NSW
Sydney Basin

VIC
Demonstrated resources (PJ)
1500–10 000 Otway
Major energy basin Basin
10 000–25 000 Gippsland Basin
Black coal
25 000–50 000 Brown coal
TAS
50 000–100 000 Unconventional gas
(tight gas,shale gas, coal seam gas)
100 000–250 000
Conventional gas
250 000–500 000
Oil (crude, condensate, LPG)
>500 000 Uranium

*This map is diagrammatic only.

AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

An abundant and
diverse range of
bulk, base and
precious minerals
Australia produces a vast range of mineral commodities.
Over 70 types of mineral deposits of economic
significance are known in very old (Archean) to very
young (Quaternary) rocks and over a wide range of
geological settings. From these, more than 23 mineral
commodities are produced in significant amounts
from about 300 mines, including world-class deposits
of most major mineral commodities. Australia’s rich
mineral deposits and comprehensive geoscience data
offer investors exceptional opportunities to develop
low-cost and long-life assets.

Australia has world-

class deposits of
most major mineral
commodities
 7

Darwin
7

6
8
2 NT
1

QLD
WA

4 SA Brisbane

3
9
5

Perth
NSW
10
Sydney
Adelaide
Canberra, ACT
11

VIC
Melbourne

12 TAS
Hobart

1 Western Australia produces all of 5 Olympic Dam is the world’s largest 99 The huge Broken Hill lead-zinc-silver mine
Australia’s nickel, lithium, tantalum, uranium deposit, third largest gold in New South Wales, is still in production
platinum group elements and rare deposit and fifth largest copper even after more than 120 years of mining.
earth elements, virtually all of the deposit. It is the birthplace of global mining giant
diamond and cobalt and about 98% BHP Group Limited.
of the iron ore. Western Australia also 6 Queensland and the Northern Territory
produces 69% of Australia’s gold and are home to Australia’s largest copper 10 Large gold and copper mines occur in
major portions of the nation’s bauxite, producing region, extending from Mount the central west of New South Wales at
mineral sands and manganese ore. Isa in Queensland to the McArthur River Northparkes, Cadia, Ridgeway and Cowal.
in the Northern Territory.
2 The Pilbara region supplies over half 11 Victoria’s notable mineral deposits and
the world’s iron ore. 7 The Weipa region in northern mining operations include gold mines
Queensland hosts substantial reserves in the west and centre of the state,
3 The Eastern Goldfields region, including of bauxite and several operating mines which was one of the world’s major
Kalgoorlie, contains major gold, nickel supported by processing, port and gold producing regions during the 19th
and lithium mines. power facilities. century and holds the world record for
largest gold nugget ever found.
4 South Australia has significant copper, 8 Charters Towers in Queensland is a
gold, uranium and mineral sands deposits. major gold province where production 12 Tasmania produces almost all Australia’s
has continued for more than 100 years. tin and hosts over 20% of Australia’s
*This map is diagrammatic only. economic resources of tungsten.
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

A world leader in
the exploration,
extraction,
production and
processing of
critical minerals
Critical minerals—essential for modern computing,
manufacturing, energy, medical and transport
technologies—are already a multi-billion dollar industry
in Australia, with many new projects at advanced
stages of development. The range of metals, non-
metals and mineral elements available for mining is
increasing with exploration investment.
The importance of rare earth elements and other critical
minerals stems from their unique catalytic, metallurgical,
nuclear, electrical, magnetic, and luminescent
properties. The growing significance of these minerals
is demonstrated through their use in the manufacture of
mobile phones and computers, flat-screen monitors, wind
turbines, electric cars, solar panels, rechargeable batteries,
defence industry technology and products, and many
other high-tech applications.
As demand for critical minerals grows, there are significant
opportunities in Australia to invest in existing projects and
to explore our significant geological reserves.
Australia has the third largest reserves of lithium and is the
largest producer of lithium in the world. Australia is ranked
sixth in the world for rare earth element resources and
second for production, yet many of these deposits remain
untapped. Australia also has large resources of cobalt,
manganese, tantalum, tungsten, and zirconium.
With world-leading expertise in resource extraction
and processing, high-tech engineering and renewables
research, Australia offers investors the opportunity to
reduce supply chain risks and develop resources to
support growing world demand.
 9

He Li Be C F
Helium Lithium Beryllium Carbon* Fluorine

Na Mg Al Si P S Cl
Sodium Magnesium Aluminium Silicon Phosphorus Sulfur Chlorine

K Ca Sc Ti V Cr Mn Fe Co
Potassium Calcium Scandium Titanium Vanadium Chromium Manganese Iron Cobalt

Ni Cu Zn Ga Ge As Se
Nickel Copper Zinc Gallium Germanium Arsenic Selenium

Sr Y Zr Nb Mo Ru Rh
Strontium Yttrium Zirconium Niobium Molybdenum Ruthenium Rhodium

Pd Ag Cd In Sn Sb Te
Palladium Silver Cadmium Indium Tin Antimony Tellurium

Cs La Ce Pr Nd Sm Eu
Caesium Lanthanum Cerium Praseodymium Neodymium Samarium Europium

Gd Tb Dy Ho Er Tm Yb Lu Hf
Gadolinium Terbium Dysprosium Holmium Erbium Thulium Ytterbium Lutetium Hafnium

Ta W Re Os Ir Pt Au
Tantalum Tungsten Rhenium Osmium Iridium Platinum Gold

Pb Bi Th
Lead Bismuth Thorium
Production, resources Resources (demonstrated
and exploration and inferred) and exploration

U Exploration Critical Minerals

Uranium
*Carbon includes the production of coal and diamonds as well as the critical mineral—graphite—currently in development.
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

Building
Australia’s clean
hydrogen export
industry
Australia aspires to become a leading global supplier
of hydrogen. There is significant momentum in
Australia, both federally and at the state level, to
develop a hydrogen production industry. Although
not readily available in its natural form, hydrogen
can be produced as a gas and used for a variety of
everyday tasks and industrial uses. These include,
heating and cooking (as a replacement for natural gas),
transportation (replacing petrol and diesel), industry
(as an alternative chemical feedstock), and energy
storage (mostly by converting intermittent renewable
energy into hydrogen).
The key benefit of using hydrogen is that it is a clean fuel,
emitting only water vapour and heat when combusted,
which means that its use could make a significant impact
on reducing CO2 emissions to the atmosphere.
In November 2019, the Council of Australian Governments
released Australia’s National Hydrogen Strategy, a
road map to establish a hydrogen industry in Australia.
Australia has vast physical resources that could support
a large-scale hydrogen industry, including abundant land,
excellent wind and solar resources, coastal water supplies,
fossil fuels and geological storage sites. Australia is also
geographically close to Asian markets, to countries that
are seeking to reduce their CO2 emissions by transitioning
to hydrogen-based economies.
Both hydrogen produced with renewable energy and
hydrogen from fossil fuels with carbon capture and storage
are considered prospective. Australia has over 200 000
square kilometres of land that is highly prospective for
renewables-based hydrogen production.
Australia has over
200 000 square
kilometres of land that
is highly prospective
for renewables-based
hydrogen production
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

Advanced
pre-competitive
geological
intelligence
Australia’s resources sector is underpinned by
highly prospective geology. To support investment
in resource development, the Australian Government
has undertaken extensive geoscientific surveys
across the entire country. Australia boasts the
most comprehensive and advanced geological
intelligence, databases and information on proven
and underexplored mineral systems.
Australia’s pre-competitive data is freely available to
support and de-risk resource decision-making and
investment. A wealth of data is available online through
the following resources.
Exploring for the Future AUSGIN Geoscience Portal
The Exploring for the Future (EftF) program is a A data discovery and analysis portal for geoscience
$100.5 million initiative by the Australian Government data from all of Australia’s state, territory and federal
dedicated to boosting investment in resource exploration governments. It includes mines, mineral deposits and
in Australia. mineral resources data, as well mineral tenement
boundaries, infrastructure, geophysical and geological data.
This four-year program focuses on using innovative
techniques to gather new geological data and information geoscience.gov.au
on an unprecedented scale across the entirety of
northern Australia and parts of South Australia. The Australian Energy Resource Assessment
program's activities involve data acquisition, geophysical
Australian Energy Resources Assessment (AERA)
surveys, geochemical sampling, hydrological mapping
provides an integrated scientific and economic
and stratigraphic drilling.
assessment of Australia’s non-renewable and renewable
Since beginning in 2016, a wealth of new pre-competitive energy resources (including coal and uranium) for
data has been made publicly available via the EftF website. decision makers. AERA is produced with the support
of the Australian Renewable Energy Agency.
ga.gov.au/eftf
aera.ga.gov.au
Australia’s Identified Mineral Resources
Information on mineral resources in Australia, their uses,
production and export figures, resource estimates and
links to Australian and world mineral statistics.
ga.gov.au/aimr
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

Gateway to Asia
Australia has well-established export links to high-growth
Asian markets. These are supported by free trade
agreements and efficient logistics and shipping networks.
The Australian minerals and petroleum industry operates
highly efficient private rail systems and is a major customer
of public rail transport throughout Australia. The industry is
also supported by public and privately-built road facilities
and air services—the latter being used for transporting
precious metals, key supplies and personnel to and from
remote and regional areas.
In recent years, the minerals and petroleum industry,
along with other private investors and government agencies,
have invested in new rail and port infrastructure to support
resource development. Industry and government are
also planning for further capacity building to ensure
the provision of transport infrastructure (including port
and related facilities) to meet the expanding needs of
Australia’s trade.
 15

Major commodity
exports to Asia
in 2018

CHINA JAPAN INDIA

Iron Ore$51.4b LNG $19.1b Coal$11.0b

Coal$14.3b Coal $19.0b LNG$0.9b
LNG$14.3b Iron Ore $5.1b Copper$0.7b
Gold$5.8b Copper $1.7b Iron Ore$0.5b
Copper$3.9b Aluminium $1.5b
Zinc$1.8b Zinc $0.2b
Oil$0.8b

SOUTH OTHER ASIA

KOREA Taiwan, Hong Kong, Thailand, Malaysia,
Indonesia, Singapore, Philippines, Vietnam

Coal$7.3b Gold$9.7b
LNG$5.3b Coal$5.2b
Iron Ore$3.8b Oil$4.6b
Aluminium$0.9b Copper  $2.0b
Oil$0.8b LNG$1.7b
Zinc$0.7b Iron Ore $1.4b
Copper$0.5b Aluminium $0.7b
Zinc $0.6b

Source: ABS, International Trade in Goods and Services, Australia, cat. no. 5368.0; International Trade Centre International Trade Statistics 2001–2018.
All monetary values used in this document are in Australian dollar terms.
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

Invest in a accountability and social responsibility underpinned by

transparent governance are helping mining companies

better future
achieve long-term prosperity and commercial success.
Responsible mining depends on excellence in mine
safety and health as well as optimising the extraction
of the mineral resource, or resource efficiency. The
Australia has a long history of supportive natural resource Australian mining industry has invested heavily in
policies, political stability and openness to international personnel, training, innovative technologies and services
investment. The Australian Government, through federal, to ensure that the highest environmental, safety and
state and territory jurisdictions, has developed transparent community standards are achieved from exploration
legislative framework that provides the foundation through to mine rehabilitation and closure.
to achieve responsible and productive development
outcomes. Complying with Australian law and regulations Mine health and safety
paves the way for the long-term sustainable, ethical and Safety in mining operations and the health of mine workers
environmentally responsible development of world-class are of the utmost importance to Australia’s mining industry
mines to ensure the safety of your employees and long-term and government. The Australian mining industry is a world
commercial success. leader in health and safety performance and is committed to
being an industry free of fatalities, injuries and diseases.
Sustainable and responsible In Australia, individual state and territory governments are
development responsible for regulating health and safety at mine sites
The Australian mining industry is at the forefront of the within their jurisdiction, through state-based work health
global pursuit of sustainable development and United and safety legislation for the mining sector. While each state
Nations Sustainable Development Goals (SDG). Australia and territory has its own legislation, all adopt a general duty
has developed advanced capabilities in environmental and of care, which requires the operator of a mine to ensure the
water management as well as innovative approaches to health and safety of workers and other people are not put at
community engagement and development. Environmental risk as a result of activities at the mine.
 17

Community and indigenous

engagement
Australians in both remote and urban areas take a genuine
and active interest in how local or neighbouring land is
accessed and used. Demonstrating a commitment to
effective and early engagement with local communities,
in particular indigenous communities, is a critical and
ongoing process for mining proponents across Australia.
Australian law, through the Native Title Act 1993,
recognises and protects native title, carefully balances the
interests of indigenous people, miners, pastoralists and
other land users, and ensures governments can continue
to improve infrastructure and manage natural resources.
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

Supportive Australia has three tiers of governance—federal, state

or territory and local governments. The Australian

and transparent
Government and state and territory governments provide
a range of support programs and initiatives to promote
exploration and development of Australia’s mineral and

governance petroleum resources. Mineral and petroleum resources

are owned by governments rather than private individuals.

welcoming your
However, none of the three tiers of government engage
in commercial exploration and development—the private
sector initiates exploration, undertakes subsequent mining

success activities and pays a royalty to the government.

Investors will need to connect with various agencies
across each tier of government when investing in
Australia’s minerals and petroleum resources.
 19

Australian Government
Sets national policy including fiscal, monetary and taxation policy, foreign investment guidelines, immigration,
competition policy, trade and customs, company law, international agreements, native title and regulates operations
in offshore waters.

Austrade Provides international investors with the information needed to establish or expand a
business in Australia.
austrade.gov.au

Australian Taxation Office Australia’s principal revenue collection agency. The ATO administers tax schemes that
(ATO) impact mineral and petroleum exploration, development and production.
ato.gov.au

Department of Home Affairs (DHA) Administers a range of temporary and permanent visa options for business personnel,
investors and skilled workers. The department also has carriage of Australia’s tariff and
customs duties.
homeaffairs.gov.au

Department of Industry, Science, Provides programs, services and assistance to help existing and new businesses succeed
Energy and Resources (DISER) and grow.
industry.gov.au and business.gov.au

Critical Minerals The government’s central coordination point to help grow Australia’s critical minerals
Facilitation Office (CFMO) sector and position Australia globally as a secure and reliable supplier of critical minerals.
industry.gov.au/criticalminerals

Major Projects Facilitation For major projects worth over $50 million, MPFA provides assistance to help navigate
Agency (MPFA) through Australia’s regulation and approval process.
mpaa.gov.au

Office of the Chief Economist Provides independent economic research, data, analysis and advice on issues affecting
(OCE) Australia’s energy and resource sectors.
industry.gov.au/office-of-the-chief-economist

Geoscience Australia Australia’s trusted advisor on the geology and geography of Australia—providing the
world’s most advanced geological intelligence.
ga.gov.au

Commonwealth Scientific and Australia’s national science agency and one of the largest and most diverse research
Industrial Research Organisation agencies in the world. CSIRO regularly partners with companies in technology-intensive
(CSIRO) sectors, such as mining, to transform research into real-world results.
csiro.au

Foreign Investment Review Board Examines proposed investments in Australia that are subject to foreign acquisitions and
(FIRB) takeovers.
firb.gov.au
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

State and territory governments

Manage and allocate mineral and petroleum property rights onshore and in coastal waters, have primary
responsibility for land administration, regulating operations (including environmental and occupational health and
safety) and collecting royalties on the minerals produced.

Australian Capital Territory Chief Minister, Treasury and Economic Development Directorate
Government business.act.gov.au

New South Wales Government Department of Planning, Industry and Environment

resourcesandgeoscience.nsw.gov.au

Northern Territory Government Department of Primary Industry and Resources

dpir.nt.gov.au

Queensland Government Department of Natural Resources, Mines and Energy

dnrme.qld.gov.au

Government of South Australia Department for Energy and Mining

energymining.sa.gov.au

Government of Tasmania Department of State Growth

mrt.tas.gov.au

Government of Victoria Department of Jobs, Precincts and Regions

djpr.vic.gov.au

Government of Western Australia Department of Mines, Industry Regulation and Safety

dmirs.wa.gov.au

Local governments operate at city, town or shire/district level and have responsibility for handling community needs such as
waste collection, public recreation facilities and town planning.
 21

Industry support and engagement

Australia’s mining sector is supported by a number of organisations including industry groups and government-
funded initiatives which aim to increase productivity and innovation within the industry.

Association of Mining and Industry association representing explorers, emerging miners, producers, and associated
Exploration Companies businesses.
amec.org.au

Austmine An industry body representing the Australian mining equipment, technology and services
sector.
austmine.com.au

Australian Petroleum Production The peak body representing Australia’s oil and gas exploration and production industry.
and Exploration Association appea.com.au

Industry Capability Network An independent networking organisation that connects local suppliers and service
providers to meet the requirements of local projects.
icn.org.au

METS Ignited Works with Australian suppliers to the mining industry, global miners, research
organisations and capital providers to improve the competitiveness and productivity of the
Australian mining equipment, technology and services (METS) sector.
metsignited.org

Minerals Council of Australia Represents Australia’s exploration, mining and minerals processing industry, promoting
and enhancing sustainability, profitability and competitiveness.
minerals.org.au

Mining and Energy Services Industry body that helps members to keep informed, network and increase business
Council of Australia opportunities with project proponents, including engineering, procurement and
construction managers.
mesca.com.au

National Energy Resources Industry-led, government-funded initiative to grow collaboration and innovation to assist
Australia the oil, gas and energy resources sector manage cost structures and productivity.
nera.org.au

Subsea Energy Australia A not-for-profit industry association formed to promote Australia’s subsea capabilities to
local, regional and global markets.
subseaenergy.org.au
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

Cooperative Research Centres

The Cooperative Research Centres (CRC) program is an Australian Government initiative that forms collaborative
partnerships between industry and publicly funded researchers to address the major challenges facing Australia.
There are CRCs with a particular emphasis on resources and energy.

Mineral Exploration CRC The world’s largest mineral exploration collaboration bringing together industry,
(MinEx CRC) government and research organisations
minexcrc.com.au

CRC for Optimising Resources Aims to transform the minerals sector by deploying innovative world-class technology
Extraction (CRC ORE) to effect a step change in value across the whole-of-mine system.
crcore.org.au

Future Battery Industries CRC Aims to position Australia as a global leader in industry focused research into the
(FBI CRC) rapidly transforming battery value chain.
fbicrc.com.au
 23

Frequently production—from assessment, through construction,

operation and closure to rehabilitation.

asked questions
5. Environmental approval (all stages)
Environmental approval is a critical aspect of the
broader mining and petroleum approvals process
and occurs concurrently with each of the above
stages. The states and Northern Territory are the
How do I obtain permission to mine main authorities for environmental management
onshore? of mines, petroleum, geothermal energy and gas
Onshore mineral and petroleum exploration and storage projects within their respective jurisdictions.
development in Australia’s states and the Northern Territory Mining and energy projects may also require
are administered by the relevant agency of each jurisdiction. an environmental impact assessment under the
While all states and the Northern Territory have their own Commonwealth Environment Protection and
laws governing mineral activities, they are very similar in Biodiversity Conservation Act 1999 (EPBC Act).
content and administration. It is extremely important that A quick reference to tenement distribution and
interested persons consult the relevant state/territory laws,
status is available through the Geoscience portal at
regulations and guidelines to ensure they understand the
portal.geoscience.gov.au and more detailed information
current requirements of the jurisdiction(s) in which they are
may be obtained from the relevant state/Northern Territory
interested.
agencies.
In Australian mining and petroleum legislation, there are
several basic stages in the development of a mine or a
petroleum field:
1. Initial exploration
The exploration licence/permit generally provides the
holder with a sole right of access to land to carry out
conditional exploration activities and sampling for a
range of minerals. The holder of exploration tenure
also has priority for mining and petroleum production
lease applications and retention of tenure over the
permit area.
2. Further detailed exploration and assessment
(possibly under a retention licence)
Retention licence holders can generally undertake
exploration and pilot development if they choose and
have approval to do so. In most instances, retention
licence holders are required to demonstrate on a
periodic basis their continued efforts to prove that the
explored-for resource is potentially viable.
3. Mining or petroleum production
A mining, production or gas storage lease generally
grants the holder the right to produce minerals and/or
energy resources (usually a specified list) and to then
sell or otherwise use or dispose of the substances or
energy produced.
4. Closure and rehabilitation of a mine or petroleum
field after completion of production
Environmental management of mining, petroleum,
geothermal energy and gas storage projects in
Australia is based on the integration of all phases of
resource exploration, planning, development and
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

What is involved in obtaining approval for • The Australian Government Minister responsible for
offshore work programs? energy resources formally releases the areas for work
program bidding.
In Australia, offshore petroleum exploration and
development is regulated by a title system that ensures • Companies are able to submit bids on the release
the orderly exploration for, and production of, offshore area they wish to explore, The National Offshore
petroleum. Offshore petroleum titles are awarded on Petroleum Titles Administrator (NOPTA) assesses
a competitive basis, beginning with an exploration permit all submitted bids according to publicly available
criteria. An exploration permit is granted to the bidder
that is the result of a successful bid on an acreage release
who proposes an exploration strategy and work
area. If a discovery is made during the exploration phase
program that will significantly advance the assessment
and a location is declared, the titleholder may apply for
and understanding of the petroleum potential of
a production licence if the discovery is commercial, or a
the area and is likely to result in a new discovery.
retention lease if the discovery is not commercial but is
Financial standing and a satisfactory record of past
expected to become commercial within 15 years. From a
performance are also important assessment criteria.
retention lease, the titleholder progresses to a production
licence once the discovery becomes commercial.
How are royalties levied on minerals?
The state and territory governments generally own, on
What is the Offshore Petroleum Exploration behalf of the community, all mineral resources in their
Acreage Release? jurisdictions and regulate the access to, and development
Offshore Petroleum Exploration Acreage Releases of, these resources. Compensation in the form of royalties
are a key part of the Australian Government’s strategy is paid to the jurisdiction for the extraction and sale of its
to promote petroleum exploration in Australia’s mineral assets. Royalty systems and rates vary across the
offshore waters. The Acreage Release is underpinned jurisdictions and commodities but are generally imposed
by comprehensive pre-competitive geological and as a percentage of the value of production or, less
geophysical datasets to support industry’s exploration commonly, the volume of production. Royalty payments
efforts and company work program bids for acreage. are a deduction for company income tax purposes.

Foreign investors can participate in bidding for offshore Royalty systems can be any one of the following:
acreage but must receive foreign investment approval prior • a specific rate royalty (a fixed dollar amount per unit of
to acquiring an interest in an exploration permit issued mass, e.g. per tonne)
under the program. • a fixed percentage of production value
The main steps in the acreage release cycle are: • a profit-related or rent-based royalty
• Nominations invited—the Australian Government • a hybrid royalty with a fixed percentage of production
invites nominations for areas for inclusion in the next value combined with a profit component.
acreage release. The nomination process ensures
Royalties are generally levied at the mine mouth or on what
areas that are of interest to commercial parties are is termed a ‘free on board’ basis. A range of allowable
considered. deductions apply in each case when calculating the value
• Short-listing—based on the nominated areas, the for royalty purposes.
Australian Government shortlists the nominated areas
Profit-related royalty regimes also vary for the type of
and checks for potential conflicts with sensitive areas
minerals extracted and in the respective state and territory
(e.g. marine parks, maritime boundaries)
jurisdictions. Where profit-based royalties do apply, they
• The Australian Government undertakes consultation tend to incorporate elements of both fixed percentage of
on the shortlisted areas. This is undertaken in two
production value and profits-based regimes. This system
phases: is project-based and profit is calculated by deducting
» Phase 1—consultation process with agencies in allowable project costs from all project revenues.
Commonwealth and state/territory jurisdictions
Project costs may include:
with direct responsibility for managing the
marine environment. • operating costs
» Phase 2—the proposed areas are made • depreciation on project capital assets
available for public comment. • inventory adjustments
 25

• interest on borrowings of the value of petroleum at the wellhead, less deductible

• pre-development and exploration costs. processing, storage and transport costs. Commonwealth
legislation provides an excise on all oil and gas produced
In some cases, jurisdictions will also implement
from fields of greater than 30 million barrels. The first
exemptions or reductions in rates to address such
30 million barrels produced from a field are exempt.
issues as downturn in commodity prices, attracting
new investment or encouraging processing within the
jurisdiction. How is the Petroleum Resource Rent
Tax applied?
Are petroleum commodities subject to The Petroleum Resource Rent Tax (PRRT) applies to both
excise and royalties? onshore and offshore petroleum projects. The PRRT is a
Yes, oil and gas excise and royalties are payable in state profit-based project tax. It is applied at a rate of 40% to a
and territory coastal waters and on the North West Shelf project’s taxable profit and is based on assessable receipts
project. Royalties are levied at a rate of between 10% less general project expenditure, project exploration
and 12.5% of the net wellhead value of all petroleum expenditure and project exploration expenditure transferred
produced. Royalties are calculated by taking a percentage in from other associated PRRT projects.
AUSTRALIA'S ENERGY AND MINERAL RESOURCES INVESTOR GUIDE

The PRRT applies to upstream petroleum production,

defined by the point at which a saleable commodity is first
produced such as crude oil, condensate, natural gas, liquid
petroleum gas (LPG) and ethane. Downstream processing
or value-adding activities, such as liquefaction of natural
gas (or LNG), which is categorised as a processed product,
are not subject to PRRT. A gas transfer pricing formula has
been developed to establish the upstream value of gas
produced and consumed in an integrated gas to liquids
project. This formula, known as the residual pricing method,
ensures equitable and transparent valuation of the resource
at the taxing point.
Payments of PRRT are deductible for company tax purposes
in the year they are assessed and paid to avoid double
taxation. Company tax is levied at the rate of 30%. PRRT and
company tax instalments are payable quarterly in the year
of tax liability. The PRRT is levied before company tax and
its liability is incurred when all allowable expenditures have
been deducted from assessable receipts.
For more information visit ato.gov.au

Can I bring my own workforce?

The Australian mining and petroleum industries have
one of the most skilled and productive workforces in
the world, complemented by advanced technologies.
However, at times labour market demand may require
companies to supplement the local workforce through
migration pathways. Australia offers a range of temporary
and permanent migration options for business personnel,
investors and skilled workers to alleviate potential
limitations in labour supply.
To obtain information about these migration options,
visit the Department of Home Affairs website at
immi.homeaffairs.gov.au
Attributions
Page 12
Operating equipment at Newcrest’s Cadia gold and copper mine in New South Wales
Minerals Council of Australia

Page 17
Truck preparations at Newcrest’s Telfer gold and copper mine in Western Australia
Minerals Council of Australia

Page 27
Marine Survey field trip
Geological Survey of South Australia, @ Robert Lang Photography
GA PP-3336 | eCat 133857