FUTURE VISION NOVA SHINES BRIGHT - Department Of

WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINEPrint post approved PP 665002/00062December 2017 – February 2018FUTURE VISIONNOVA SHINES BRIGHTNew partnerships push Western Australia forwardMilestone marks exploration incentive success

DEPARTMENT OF JOBS, TOURISM, SCIENCEAND INNOVATIONInternational Education, Trade and InvestmentLevel 6, 1 Adelaide TerraceEast Perth, Western Australia 6004 AUSTRALIATel: 61 8 9222 0555 Fax: 61 8 9222 0505Email: invest@jtsi.wa.gov.au www.jtsi.wa.gov.auAs we head towards 2018, the State Government remains committed to creatingopportunities in Western Australia’s resources industry, whether it is attractinginvestment, reducing red tape or encouraging employment.Innovation will play a critical role in Western Australia’s economic future, particularlywithin the resources sector.The annual Awards for Excellence (page 26), Maritime Australia Limited InnovationAwards (page 22) and the Agriculture and Aquaculture Entrepreneurship Program(page 23) all recognise and celebrate Western Australian innovation in theirrespective fields.The State Government is also helping drive innovation by supporting the establishmentof an innovation hub in Kalgoorlie (story page 15).In October, the State Government introduced a new jobs bill to support WesternAustralian-based businesses get a bigger share of work on government contracts(see story page 12).The recent extension to the Channar State Agreement (story page 4) will ensurea new chapter is added to the story of a project which recently celebrated its30th anniversary.The State’s minerals sector has grown over the past year and the volumes, and overallvalue of the industry’s sales, was more than 100 billion and the third highest total onrecord (story page 13).Western Australia is the nation’s destination of choice for mining investment. With astrong and sustainable resources sector, built on world-class knowledge and expertise,the State is well positioned for the future.Mark McGowanPREMIER; MINISTER FOR STATE DEVELOPMENT; JOBS AND TRADEBill JohnstonMINISTER FOR MINES AND PETROLEUMISSN 1037-4590ProspectWestern Australian Prospect magazine is published quarterly by the Western Australian Government’s Department ofMines, Industry Regulation and Safety (DMIRS) and Department of Jobs, Tourism, Science and Innovation (JTSI).JTSI Editorial management: Rebecca Atkinson, JTSI Communications and Marketing Division.Tel: 61 08 9222 0417 Fax: 61 08 9222 0505DMIRS Editorial management: Beau Pearson, DMIRS Communications and Marketing Division.Tel: 61 08 9222 3736 Fax: 61 08 9222 3862Subscriptions: www.dmp.wa.gov.au/prospect. Tel: 61 08 9222 3333DisclaimerProspect has been compiled in good faith by the Department of Mines, Industry Regulation and Safety (DMIRS) andDepartment of Jobs, Tourism, Science and Innovation (JTSI). Opinions expressed in Prospect are those of the authorsand do not necessarily represent the views, or have the endorsement of DMIRS and JTSI. DMIRS and JTSI hasused all reasonable endeavours to ensure the material contained in this publication is correct, but it is intended to begeneral in nature. No representation is made with regard to the completeness or accuracy of the information containedherein. DMIRS and JTSI disclaims any or all liability for loss or damage whatsoever suffered or incurred resultingfrom the use of or reliance on information contained herein. Readers of this publication should make and rely on theirown enquiries, research and judgements in making decisions affecting their own or any other persons interest.All currency figures in Prospect are in Australian dollars unless otherwise specified.Cover photo: Independence Group’s Nova Nickel Project officially opened in September (story page 8).Photo: IGOScan this QR code to view links to all the department’s publicationsINTERNATIONAL OFFICESEurope — LondonGovernment of Western Australian – European Office5th floor, The Australia CentreCorner of Strand and Melbourne PlaceLondon WC2B 4LG UNITED KINGDOMTel: 44 20 7240 2881 Fax: 44 20 7240 6637Email: agent general@wago.co.uk www.wago.co.uktwitter.com/@wagoEUIndia — MumbaiWestern Australian Trade Office93 Jolly Maker Chambers No 29th floor, Nariman Point Mumbai 400 021 INDIATel: 91 22 6630 3973Email: india@jtsi.wa.gov.au www.watoindia.inIndonesia — JakartaWestern Australia Trade OfficeLevel 48, Wisma 46, Jalan Jenderal Sudirman Kavling 1Jakarta Pusat 10220 INDONESIATel: 62 21 574 8834 Fax: 62 21 574 8888Email: invest@jtsi.wa.gov.auJapan — TokyoWestern Australian Government Office14th floor, Imperial Tower1-1-1 Uchisaiwai-cho Chiyoda-kuTokyo 100-0011 JAPANTel: 81 3 5157 8281 Fax: 81 3 5157 8286Email: wa.tokyo@wajapan.net www.wajapan.netJapan — KobeWestern Australian Government Office6th floor, Golden Sun Building 4-3-6 Nakayamate-doriChuo-Ku Kobe 650-0004 JAPANTel: 81 78 242 7705 Fax: 81 78 242 7707Email: wa.kobe@wajapan.net www.wajapan.netMiddle East — DubaiWestern Australian Trade Office106, Emarat AtriumPO Box 58007 Dubai UNITED ARAB EMIRATESTel: 971 4 343 3226 Fax: 971 4 343 3238Email: info@wato.ae www.wato.aeKenya — NairobiWestern Australian Trade OfficeKenya Representative OfficePO Box 25567Nairobi 00603 · KENYAPeople’s Republic of China — ShanghaiWestern Australian Trade and Investment OfficeLevel 22 CITIC Square1168 Nanjing Road WestShanghai 200041 PEOPLE’S REPUBLIC OF CHINATel: 86 21 5292 5899 Fax: 86 21 5292 5889Email: invest@jtsi.wa.gov.au www.westernaustralia.cnSingaporeWestern Australian Trade and Investment Office6 Temasek Boulevard #20-02Suntec Tower FourSingapore 038986 SINGAPORETel: 65 6836 5626 Fax: 65 6836 5698Email: invest@jtsi.wa.gov.auSouth Korea — SeoulWestern Australian Trade and Investment OfficeUnit 702, 7th floor, Kwanghwamoon Building149 Sejong-daero, Jongno-gu, Seoul, 03172REPUBLIC OF KOREATel: 82 2 722 1217 Fax: 82 2 722 1218Email: invest@jtsi.wa.gov.au www.westernaustralia.or.kr

In this issue Chevron02040817222602 First LNG17 Innovation injectionThe first shipment of liquefied natural gas sets sailfrom Wheatstone.State Government announces 16.7 millionNew Industries Fund.04 Ironclad agreement22 High seas safetyRio Tinto and Sinosteel Corporation extend Channar MiningJoint Venture.WA company behind innovative, award winningboat design.08 Nickel mine milestone26 Recognising resourceexcellenceIndependence Group’s Nova Nickel Project officially opened.Resources sector innovation shines bright at Awards.Department of Mines, Industry Regulation and SafetyDepartment of Mines, Industry Regulation and SafetyDepartment of Jobs, Tourism, Science and InnovationDepartment of Jobs, Tourism, Science and Innovationwww.dmirs.wa.gov.auwww.jtsi.wa.gov.au

The first shipment of LNG set sail from the Chevron-operated Wheatstone Project in October. Photo: ChevronFIRST WHEATSTONEGAS EXPORTS DEPARTThe first shipment of liquefied naturalgas (LNG) set sail from the Chevronoperated Wheatstone Project on31 October 2017, marking a majormilestone for the project proponentsand for Western Australia.The project includes two LNG processing trainswith a total capacity of 8.9 million tonnes per year,plus a 200 terajoules per day domestic gas plant.The company stated that a single Chevron cargoof LNG from the Wheatstone Project could powerJapan for approximately nine hours.At full capacity, Chevron expects the project tocontribute about six per cent of the Asia Pacificregion’s total future LNG production.The Wheatstone Project is one of WesternAustralia’s largest resources projects, with anestimated cost of US 34 billion.Construction began on the project in December2011 and first LNG production was announced atthe beginning of October 2017.The Wheatstone Project is a joint venturebetween the Australian subsidiaries of Chevron,Kuwait Foreign Petroleum Exploration Company,Woodside Petroleum and Kyushu Electric PowerCompany, together with PE Wheatstone, partowned by JERA (among the world’s largest buyersof LNG and one of Chevron’s foundation buyers).Chevron Australia Managing Director NigelHearne said, “The first shipment of LNG from theWheatstone Project signifies our commitmentto be a safe and reliable long-term supplier ofcleaner-burning natural gas for our customers inthe Asia-Pacific region.”Since 2009, the project has seen more than 20 billion spent on local goods and servicesthrough 300 different Australian companies, andcreated more than 7000 jobs during construction.The first Wheatstone LNG cargo – delivered by theAsia Venture, one of six new state-of-the-art LNGcarriers recently added to Chevron’s operatingfleet – is for JERA for delivery into Japan.2“The first Wheatstone cargo also represents thesignificant contribution of our partners, contractorsand suppliers and efforts of thousands of peopleonsite, throughout Australia and around theworld during the engineering, construction andoperations phases.”

First national LNG hubWheatstone GasThe Wheatstone Project is located at AshburtonNorth Strategic Industrial Area, about 12 kilometreswest of the town of Onslow. Project’s two train LNG facility isOffshore facilities for the project will gather andpartially process gas and associated condensateand deliver it onshore for further processing. Keycomponents include: well infrastructure and subsea installations a gas processing platform in 73 metresof water expected to contribute aroundsix per cent of the Asia Pacificregion’s total future LNG production,delivering 8.9 MTPA of LNG forexport customers in Asia. produce 200 terajoules per dayof domestic gas for the WesternAustralian market. Key components of the Wheatstone Projectonshore processing facility include:a slug-catcher to separate the gasand liquids an initial two-train LNG processing plant a domestic gas plant and pipelineconnecting to the Dampier-to-BunburyNatural Gas Pipeline LNG and condensate storage tanks marine facilities including a shipping channel,turning basin, harbour and export jetty, andmaterial offloading facility.The Wheatstone Project’s domesticgas plant also has the capacity toa 225km trunkline to transport gas from theplatform to the onshore facilities.Gas will be gathered from the Wheatstone, Iago,Brunello and Jumilar gas reserves off the coast ofWestern Australia. At full capacity, the WheatstoneAt full capacity, the Gorgon andWheatstone facilities have thecapacity to produce 500TJ/d ofLoading arms transfer the first cargo of WheatstoneLNG to the Asia Venture. Photo: Chevrondomestic gas, around 50 per cent ofcurrent supply in Western Australia.The Ashburton North Strategic IndustrialArea is being established by the WesternAustralian Government as a multi-usehydrocarbon processing and heavy industryprecinct with a land use plan that includes:: three larger sites for major gasprocessing proponents secondary processing sites areas for general support industries andsupply base operations a port with common user facilities to bemanaged by the Pilbara Ports Authority common user access andinfrastructure corridors.The Wheatstone Project is one of Western Australia’s largest resources projects. Photo: ChevronUnder the State Development Agreement forthe Wheatstone Project, the proponents havefunded the full construction of the State-ownedPort of Ashburton.The multi-million-dollar port developmentincludes 312 hectares of common user area, aninfrastructure corridor and 250 square kilometresof port waters.The start of LNG exports from the WheatstoneMarine Terminal within the Port of Ashburtontriggered the handover of the new port facilitiesfrom Chevron to the Pilbara Ports Authority.Pilbara Ports Authority will have full responsibility forthe shipping channel, including the turning basin,and within the next 12 months, will take over allremaining areas that are not leased to Chevron.Gas will be gathered from the Wheatstone, Iago, Brunello and Jumilar gas reserves off the coastof Western Australia. Photo: Chevron3