METS Ignited Mining Equipment Technology Services

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1 METS Ignited Mining Equipment Technology Services Mining and METS Sector Engagement The sum is greater than the parts Sarah Boucaut General Manager: Education and Leadership Skills March

2 What is a Growth Centre? Strategic Objectives METS Ignited is one of six industry-led growth centres. Role is to set a long-term strategy to strengthen global competitive advantage for the sector and deliver activities/outcomes, addressing four themes: Growth Centre objectives: 1. Enhance industry and research collaboration and commercialisation 2. Improve management capabilities and workforce skills 3. Improve the capability of sectors to engage with international markets and global supply chains 4. Identify opportunities for regulatory reform

3 Industry Growth Centres Overview Growth Centres Advisory Committee Other Sources Entrepreneurs Infrastructure Programme ($484.3m) Industry Skills Fund ($476m) ARC Industry Transformation Research Programme Industry Growth Centres Food and Business ($3.5m pa) Mining Equipment Technology and Services ($3.5m pa) Medical Technologies and Pharmaceuticals ($3.5m pa) Advanced Manufacturing ($3.5m pa) Oil Gas and Energry Resources ($3.5m pa) Cyber Security ($3.5m pa) Shared Services and infrastructure Project Funds ($63m) Commercialisation Fund ($60m) Regulatory and cross sector activities ($7.9m) Industry Growth IT Network ($2.5m) Outcomes Key Science and Research Stakeholders Research and Development Corporations CSIRO Coopoerative Research Centres Universities Publicly Funded Research Agencies Regulatory Reform Improved access to global supply chains and interantional markets Improved engagement between research and business Improved management and workforce skills

4 METS Ignited Federal funding is leveraged by Qld contribution METS Ignited has its national headquarters within Queensland University of Technology (QUT) in Brisbane a multidisciplinary pioneer research institute and education and community hub for STEM. METS Ignited also has established a node in Melbourne with an additional node planned for Perth.

5 One of Six Growth Centres Why METS? Significant economic leverage Substantial sectoral size estimated between $60-$90bn Global facing, strong exports and internationally competitive businesses Job growth opportunities World class STEM job opportunities Potential to grow manufacturing in niche, value added areas Service sector is world class Regional impact Strong Australian ownership in sector Natural hedge against AUD Success in productivity in METS will leverage productivity in mining 24% of Australia s company tax income base (AMMA) Transfer of world class skills into other sectors

6 One of Six Growth Centres Why METS? Key areas of competitive advantage World class R&D infrastructure Strong global brand World leadership in niche market positions many differentiated value added businesses Highly entrepreneurial High quality skills and knowledge clustering Large world class domestic customer base

7 Australia A world leader in METS start-up activity 49% deal flow Australia 31% deal flow USA 8% Scandinavia (by no) Source: Jolimont Capital 2015

8 Broad National Impact State Gross Revenue ($bn) 2013 % WA $ NSW/ACT $ QLD $ VIC/TAS $ SA/NT $ Unaccounted $ Total $89.90 bn 100 Source: Austmine Survey 2013

9 Significant Australian Ownership & Export Culture Ownership Australian 84% 80% Foreign 16% 20% Total 100% 100% Ownership by Country USA 32% 26% Germany 9% 10% France 7% 7% Switzerland 4% 6% Canada 3% 4% Finland 1% 6% Sweden 4% 4% United Kingdom 15% 9% Japan 4% 3% Norway 0% 3% South Africa 4% 3% Singapore 1% 3% Other 16% 16% Total 100% 100% Source: Austmine Survey 2013 & 2015

10 Call to Action Despite the success of the Australian METS industry, a number of key challenges and ecosystem trends are threatening its ability to compete and grow in the global market place Relationships between miners and METS are more transactional than strategic, putting Australia at a disadvantage compared to more collaborative competitors globally. Australia is ranked poorly globally on collaboration which is a critical innovation measure. Australia has not been successful at transferring public sector research into commercial outcomes. Disruptive technologies are both a threat and an opportunity with their impact on the industry accelerating. Increasing competition from markets such as China and India. Investors overlook METS companies commercially, especially in early stage and in long-term capital. Despite the number of major mining houses and world-class research centres, few Australian METS companies have grown to become major global OEMs

11 METS Ignited 10 Year Sector Competitiveness Plan A key platform for Australian economic growth

12 Vision for the Sector The Australian METS industry has an aligned, collaborative and agile ecosystem and, through leadership and innovation, a growing share of the global market

13 Key roles in mining ecosystem Question: What are the 3 most important relationships for improving the innovation ecosystem in mining? Research Applied research 4 Fundamental 5 research Government and community Service Industry Smaller service companies Larger service companies 7 Explorers Miners 8 10 Tier 1 Tier 2/ Funding 14

14 Five Programs of Work The METS Sector Competitiveness Plan outlines five programs of work to deliver this vision for growth over the next ten years The sector has a compelling vision and strategy that aligns to and enhances the growth needs of the METS, mining and research industries. Collaboration across the sector has accelerated the rate of both innovation and commercialisation. The Australian METS brand and value proposition is recognised globally, highly valued and priced at a premium. The skills base enhances business capability and growth, and ensures the sector s sustainability and leadership in a rapidly transforming technology landscape. Supply chain participation is facilitated by global partnerships, world class clusters and the active support of capital markets to grow scale needed to compete internationally.

15 Engage in Our Future Join our conversation about the METS industry #METSIgnited #industrygrowthcentres Become a network associate!

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