Stuart Russell

Senior Trade & Investment Manager

Government of Western Australia – European Office

Western AustraliaBig state big opportunities

February 2013

About Western Australia

WESTERN AUSTRALIAArea: 2.5 M km2 Population: 2 millionPersons/km2: 0.8

WESTERN AUSTRALIAArea: 2.5 M km2 Population: 2 millionPersons/km2: 0.8

~ 25

00km

~

EUArea: 4.2 M km2 Population: 497 millionPersons/km2: 117

EUArea: 4.2 M km2 Population: 497 millionPersons/km2: 117

Western Australia versus Europe

About Western Australia

• Population 2.4 million – which is 10.4% of the nation (73% live in Perth)

• Resource abundance: minerals, energy, agriculture

• Gateway to Asia and 60% of the world’s population

Gateway to Asia

4

About Western AustraliaEconomic Overview

•Value: A$239 billion in 2011-12

•16% of Australian economy, 28% of

business investment and 46% of

merchandise exports in 2011-12

•Resource projects committed or under

construction $167 billion; $151 billion more

under consideration

•GSP projected to rise 6.0% in 2012-13

Australia $100 = €80

Mining and Resources Sector

65 oil and gas fields, 975 operating mines, 50 different minerals produced

$82 billion of mining investment in 2011/12 - over half of the Australian total

WA produced over a fifth of the world’s iron ore and 7% of its LNG in 2011

Mining and Resources Sector

• Value of resources project: $167 billion committed or underway

• 50,000 construction jobs and 15,000 permanent jobs created

• ≥500 commercial mining projects; over 100,000 employed

Australian natural gas resources

Dominated by Western Australia – Offshore and Onshore

Offshore and LNG:A$92B invested –

mainly Gorgon and Wheatstone projects

Source: WA Department of Mines and Petroleum

Big Projects: LNG

PROJECT STATUS VALUE A$ CAPACITY

Gorgon Execution $52 billion 15.6mtpa

Pluto Train 1 In operation $13 billion 4.3mtpa

Wheatstone Execution $29 billion 8.9mtpa

Prelude FLNG Construction $12 billion 3.6mtpa

Browse LNG Evaluating tender bids for construction (FID expected first half 2013)

$30 billion 12mtpa

Major Resources Projects (cont..)

Source: Bureau of Resources and Energy Economics (Australian Government)

WA: 40 out of 87 committed

projects

WA: project value: $141 B

Australia-wide: project value $268 B(at October

2012)

Government of Western Australia Department of State Development 11

Investment Opportunities

• Western Australia exports to the UK worth over $5 billion during 2011/12

• 16 UK firms have opened new offices in Perth between 2010-12 including:-

• Many UK firms have been expanding in Western Australia, including:

• Global Energy Group – just completed 3rd acquisition since opening in September 2011

• AMEC Minproc – Nov 2012 awarded $20 million contract extension on Barrow Island JV; opened new offices on St George’s Terrace

• Big opportunities in upcoming O&G projects

How to Connect

Finding supply chain partnership opportunities on WA resources projects

Project Connect – an invaluable tool for suppliers

www.projectconnect.com.au

How to Connect

Project Connect – Major Projects currently advertised:

Browse LNG Development – Value $A52 billion, Construction 5-6 years from mid 2013

CITIC Pacific Mining Sino Iron project- US$5.2 billion, Construction started in early 2012

Gorgon Project- $A43 billion, Construction 5 years, Execution Phase

Greater Western Flank (GWF) Phase 1 Project- $A2.5 billion, Construction 2011-2016

Hess Equus Development- TBC, Construction Q4 2011- Q1 2013

Macedon Project - $US1.5 billion, Construction 2 years, Execution Phase

Midland Health Campus – $340 million, Construction started June 2012

New Children’s Hospital Project - $A1.2 billion, Construction Jan 2012- Late 2015

Oakajee Port & Rail Project - $A3.5 billion, Project currently on hold

Southern Seawater Desalination Plant – S1 $944 million (2009-11), S2 $450 million (2011-12), Execution Phase

Australian Marine Complex

Australian Marine Complex

• World class centre of excellence

• Infrastructure to support industry

• Supports the clustering of marine, defence, mining and oil & gas engineering companies in one location

• Facilitates sharing of skills between the different market sectors

• Addresses infrastructure issues associated with undertaking major projects in WA

• World’s most technologically advanced floating dry dock

Role of European Office

The Western Australian Government – European Office can:

Facilitate investor and business relationships by setting up meetings with Government and industry organisations

Provide briefing on Western Australia: economy, legislation, processes and markets

Give advice on aspects of living, working and doing business in Western Australia

Contact

Stuart Russell

Senior Trade & Investment Manager

Tel: +44 20 7395 0564

Email: stuart@wago.co.uk

Online: www.wago.co.uk twitter.com/wagoeu

Thank you