My views are based on intricate knowledge of the industry. I have been in boardrooms, not as a board member but in roles that influence outcomes, which requires strategic knowledge of what influences outcomes and how they are influenced.I’m pretty new to it - on your first point I’d generally agree.
I was more looking forwards.
When it goes offshore I don’t think you understand the magnitude of capital involved and the cost a delay involves - especially once you start to mobilise the resources required. This will 100% make investment not happen in some places for a more medium sized resource.
If you’ve sat in the boardroom and seen the decision making and know differently then I’m all ears.
This will NOT make investment not happen. You're wrong, 100% wrong. Its an incorrect statement for many reasons. Barossa will happen, unless a carbon price and cheap alternatives beat them to it. Santos, and NOPSEMA, were slack, it should never have happened, but now its happened all it means is that santos turn their attention to another project, or its delayed for a while. These projects, as you know, are big. Massive lead times, and they often get shelved BY THE COMPANY, for market reasons or changes in priorities. The Woodside Browse Basin Gas project, hundreds of millions spent on development, one of the biggest in the world, shelved at the last minute, still shelved.
No project, especially a big project, will live or die on the basis of 1.5 or 2%. And as I said, even it it happened for the first time in history, the royalty could and would be renegotiated. Thats business.
Ok now lets look at the international angle. EVEN IF expenses due to Indigenous agreements and environmental matters were concerningly high, and a company said to itself, 'what are the alternatives'? Africa? no roads, no ports, unstable government, war? No thanks. China? good luck with that. Canada or any other first world nation? same as Aus.
These mining industry hacks, there was one who wrote an article in the AFR recently, compaining about Australia's restrictive native title and environmental laws, said "it takes 15 years to get a copper mine working in Aus", said it as if it was a disgrace, needed fixing. IT TAKES 15 YEARS TO DEVELOP A LARGE COPPER MINE ANYWHERE ON THE PLANET, ALWAYS HAS ALWAYS WILL! sorry for shouting but it drives me mental. This guy gave no comparisons, no context, just '15 YEARS'. If he had given some comparisons, Canada, Brazil, Chile, US (A big one there has been 25 years and counting), it would show the fastest development of a copper mine in history has been 12 years, 15 years is normal, 20-25 is not unusual. The reasons for that are obvious I would have thought, complex geology, engineering, hydrology, access, access to markets, negotiating buyer contracts, permits, all of these things are massive, massive if all runs smoothly, and then there is market fluctautions which mean the company will stall for significant periods and focus on other projects or commodities.
The idea that Indigenous land or sea rights, OR environmental approvals, stops mineral or petroleum development happening is ludicrous when you stop and think about it, and the record shows it has never happened, has never come close to happening, and to my mind will never happen and could never happen.
ps. re your 'medium sized' point, wrong again, if that did happen it would be because the project is marginal. They might try and pin it on blackfellas but for reasons outlined above, it wouldn't wash, and I'm not aware of it ever happening. I'm aware of one medium/ smaller project that fell over, because it was marginal, a few years later price of ore went up, negotiations re-opened, deal done, big profits, everybodys happy. Projects live and die on profitability and the market, full stop.
There is this racist myth that blacks stop development. Thats all it is, a myth. Aboriginal landowners might want to protect their sacred sites and protect the environment, they might want to get some benefits from a big mine on their land, don't we all? and they do, but that has never stopped a development.
As for the Santos "logjam fears" its one-sided bulldust AFAIC, and I could back it up with hard facts and data, some of which are alluded to above. All Santos has to do is lift their game on community consultation, thats it! That is al they have to do to get rid of this "logjam". They were slack, as the Fed court found. Just get fair dinkum. Its not rocket science. But they are sooking and whinging and carrying on. And with a 60% no vote in their minds, they will, sadly, continue to.
Last edited: