Mining showcase in Indonesia

AN Austrade-organised trade event to be held in Jakarta next year will provide Australian mining supply and servicing companies an insider’s view on market opportunities in Indonesia and chance to showcase their capabilities directly to an industry audience.

AN Austrade-organised trade event to be held in Jakarta next year will provide Australian mining supply and servicing companies an insider’s view on market opportunities in Indonesia and chance to showcase their capabilities directly to an industry audience.

The Ozmine 2008 Exhibition and Conference will be held from 19 to 23 February. This event will feature a series of mine visits and include a one-day conference, which will examine the Indonesian regulatory environment to determine the realities, risks and prospects.

Austrade’s Jakarta-based Senior Trade Commissioner, Rod Morehouse said, Australian mining supply and servicing companies serious about expanding into South East Asia should attend the event.

“We organised Ozmine specifically to look at the emerging opportunities and issues that are important to mining support companies wanting to tap into the Indonesian market, to give them first-hand insight and to help them make contact with the local industry,” Morehouse said.

“Judging by last year’s experiences, the most senior of Indonesia’s miners are expected to attend the Conference and flow on to the trade exhibition.”

Morehouse said Indonesia is on the verge of a mining boom, and Australian companies are well placed to support the dynamic growth.

“A new mining law is looming in Indonesia. Once its details are fully debated and settled, and when it’s enacted and a structure established, the authorities are confident there will be a strong increase in investment and activity.

“In the meantime, the high level of global commodity prices has led to record production outputs from Indonesian mines, increasing business prospects for Australian mining technology and services (MTS) companies.”

Morehouse said although the mining industry accounts for 20 per cent of Indonesia’s exports, a large proportion of land still remained unexplored.

“Indonesia is richly endowed with mineral reserves. Globally, it ranks second in tin, third in copper and fourth in nickel production. Coal production has grown rapidly over the last decade with the country now ranked second to Australia in exports.

Morehouse said: “Profitability across the Indonesian industry is high and compares favourably with other countries. The strong mineral prices though, have masked increasing operating costs, so mine operators are on the lookout for the latest cost-effective and efficient solutions for the running of their operations”. Opportunities for Australian suppliers exist in:

  • Construction services — much of the US$800m per year (average since 2001) invested in the sector has gone into refurbishing and expanding existing mines;
  • Mining equipment, both new and second hand;
  • Maintenance and repair services for mining equipment;
  • Spare parts and consumables for excavation and processing;
  • Technology;
  • Project management;
  • Training;
  • Transport/logistics services

Morehouse said an increasing trend in employee training and corporate social responsibility (CSR) by mining companies had also created opportunities for providers of health, education and training related products and services.

According to a recent Pricewaterhouse Coopers report, in 2005 regional and community development in Indonesia rose by 65 per cent to reach $95 million (Rp 771b).

Ozmine 2008 Exhibition and Conference is organised by Austrade Jakarta.

The Ozmine Conference will focus on the most pertinent issues facing the Indonesian mining industry — the new mining law, forestry, environment, regionalisation and future prospects.

Convening panels will examine each of the papers presented and make recommendations for improvement, which will be provided to the industry in Australia, and to Ministers, key regulators and influencers in Indonesia.

Australian mining support companies including suppliers of consumables, services and new technologies to the mining industry are invited to attend.

Following the Ozmine event, Austrade is organising a mining mission to the Philippines (25- 29 February) comprising of briefings, networking sessions and open cut mine site visits.

Ozmine 2008

craig.senger@austrade.gov.au

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