Boost for Australian industry to supply major resource projects
WED 26 OCTOBER 2011
Prime Minister, Minister for Innovation, Industry, Science and Research
Australian manufacturers and suppliers will have a greater opportunity to supply the needs of major resources projects as a result of new initiatives announced by the Prime Minister today.
The Gillard Government will provide over $1.2 million to connect Australian companies with supply opportunities on four of our largest multi-billion dollar projects through the Industry Capability Network (ICN) program.
The four projects ICN providers will now start working on are:
- Woodside’s proposed Browse LNG project in Western Australia
- INPEX’s proposed $25 billion Ichthys LNG project in the Northern Territory
- BHP Billiton’s proposed Olympic Dam mine in South Australia
- LNG projects in the Gladstone area of Queensland with a combined value of $50 billion, that have reached final investment decision.
Speaking at Hofmann Engineering in Perth, the Prime Minister said the Gillard Government's support for the ICN program was an innovative way to help Australian manufacturers win contracts on major resource projects.
There are immense opportunities for Australian industry to benefit from one of the largest resources sector investment booms and we want to make sure Aussie businesses have the best chance at securing these contracts.
In 2010-11, the ICN helped Australian companies secure more than 150 contracts valued at more than $750 million.
Without this assistance these contracts could have gone to overseas companies.
Capital expenditure in the resources sector is predicted to reach a record of over $82 billion this year, up from $47 billion last financial year.
The Australian Government funding to the ICNs is part of the Buy Australian at Home and Abroad package announced in May to link Australian suppliers with major resources and infrastructure projects.
Today’s announcement complements steps to strengthen Australian Industry Participation Plans announced recently. These measures include:
- Extending the requirement of Australian Industry Participation Plans for Federal Government grants of $20 million or more, and for grants of $20 million or more to the states and territories where they do not apply their own industry participation plans.
- Requiring more comprehensive evidence of opportunities being provided to Australian industry for companies participating in the Enhanced Project By-law Scheme.
- Appointing four additional Supplier Advocates to target capability gaps and opportunities in key sectors, including steel.
- The appointment of the Hon Peter Beattie as the Resources Sector Supplier Envoy to maximise Australian participation in the resources sector. Mr Beattie will visit Perth in November to hold industry consultations and facilitate the inaugural Resources Sector Supplier Advisory Forum meeting.
Further information on the new SAMP projects is below.
Latest Buy Australian at Home and Abroad grant recipients
- Industry Capability Network Western Australia ($382,300) – this grant will increase opportunities for Australian industry to access tier 2 opportunities in Woodside’s proposed Browse LNG project. As well as linking Australian businesses to work packages, this project will look for opportunities for overseas manufacturers of leading technologies to enter into joint ventures with Australian companies.
- Industry Capability Network South Australia ($326,000) – this grant will link Australian companies to Engineering, Procurement, Construction and Management firms that will be involved in the proposed expansion of the Olympic Dam copper and uranium mine in northern South Australia. ICN is prioritising work packages to focus on those with highest impact and value to Australian suppliers. The ICN will also support Australian industry entry into BHP Billiton’s global supply chains.
- Northern Territory Industry Capability Network ($298,000) – this grant to NTICN is for its work in maximising the number of Australian suppliers tendering in the proposed $25 billion INPEX Ichthys LNG project. To date, NTICN has linked Australian companies to 286 work packages and more than 4000 Australian and New Zealand companies have registered their interest in participating in the project. The grant will allow NTICN to keep working with INPEX until 2013.
- Industry Capability Network Queensland ($198,900) – this is the second grant to ICN Qld for its work in helping Australian industry access supply opportunities in LNG projects in the Surat Basin, Bowen Basin and Gladstone areas in Queensland. Three projects in the Gladstone area, with a combined value of $50 billion, have reached Final Investment Decision and are under construction.
For further information please visit www.icn.org.au