Steve Knott's presentation at AMEC Conference in Perth on 30 June 2011 - addressing the labour supply challenges for the Resources Sector.

1. 1 Addressing the labour supply problemAMEC Conference 2011Steve Knott - Chief ExecutiveAustralian Mines & Metals Association (AMMA)30 June 2011

3. Largest and most representative lobby group for the resource industry

4. Membership includes coal, metalliferous, oil and gas, energy, construction and service providers

5. Recognised as the peak employer organisation for the resource industry and

6. Regularly features in the ‘IR power and influences’ review2

7. 3 Current and future resource projects and investment Oct 2010 - 72 resource projects at advanced or committed stage worth $133 billion April 2011 – 94 resource projects at advanced or committed stage worth $173 billion The resource industry accounted for 9% of GDP in 2009-10 ($102.6 billion) 3

8. 4 Mining industry employment growth 2005 2011 2015 Direct employment 107,500 205,800 250,000 Indirect employment 320,000 620,000 750,000 Source: ABS Labour force, February 2011 and NRSET Resourcing the Future Report 4

9. 5 10-year employment growth by industry % employmentgrowth Source: ABS Labour Force Stats, February Quarters 2001 - 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 5

10. 6 % Pre-GFC Post-GFC 6 Source:Job Vacancies, Australia, February 2011, 30 March 2011, Catalogue no 6354.0. ABS

11. 7 Skilled vacancies in mining v other industries – February 2011 Vacancies Total workforce % vacancyMining 8,100 205,800 3.9% Construction 20,100 1.030 million 1.9% Manufacturing 12,100 998,400 1.2% Source:Job Vacancies, Australia, February 2011, 30 March 2011, Catalogue no 6354.0. ABS 7

12. 8 Demand for mining engineers By 2015 New engineering jobs 1,600+ Replacement jobs due to attrition 1,300 = 2,900- New engineering graduates 1,200 Shortfall 1,700 8

13. 9 Source: Skill Shortages Australia, June 2010, Australian Government, DEEWR 9

14. 10 Demand for tradespeople 10

15. 11 NRSET recommendations Promoting workforce planning and sharing information Increasing the number of trade professionals Graduating more engineers and geoscientists Meeting temporary skills shortages with temporary migration Strengthening workforce participation Forging stronger ties between industry and education and Addressing the need for affordable housing and community infrastructure Source: NRSET Resourcing the Future Report 11

16. 12 Trade and non-trade apprenticeship commencements – all industries 1989 175,000 1993 111,200 2001 224,800 2008 286,900 2009 272,500 2010 324,600 Source: NCVER Apprentices and Trainees 2011: Early Trend Estimates March quarter 12

17. 13 Apprenticeship commencements v completions In Training Commencements Completions Source: NCVER Data *'Minerals’ is based on ANZSIC 2006, including mining division (ex oil and gas) plus basic ferrous and non-ferrous manufacturing. 13 13

18. 14 Employment of women by mining industry sector Women as a % of total workforce Source: ABS Labour Force, February quarters 2001 to 2011 14

19. 15 15

21. More than 50% of 457 visa entrants achieve permanent residency, most of them under employer sponsored arrangements16

22. 17 Projects to be covered by EMAs 38 projects have $2 billion or more in capital expenditure But just 13 are identified as having a peak workforce of 1,500 or more A further 42 projects have $1 billion or more in capex but only one has peak workforce of 1,500 If peak workforce threshold lowered to 500, an extra 15 projects brought onboard on top of 13 to 20 already covered Source: ABARES – Tabular list for ‘Minerals & Energy: Major Development Projects – April 2011 listing.’ 17 17

23. 18 Labor’s broken IR promises Right of entry won’t change Fair Work Australia appointments won’t favour one side or another A tough cop will remain on the construction beat Common law contracts will offer the same flexibility as AWAs Majority support of workers will be required to force enterprise bargaining and strike action Freedom of association will be upheld 18 18

24. 19 AMMA Workplace Relations Research Project Report on third survey of impacts of Fair Work Act released today. Findings include: Employer satisfaction with the new IR laws continues to decline Down by 15% on the first survey conducted in April 2010 Nearly 75% of employers are spending more time on IR transactions Employers’ view is that labour productivity has declined by 10% 19 19