Project Title

Mining Equipment, Technology and Services (METS) Sector Development 

Project Year

2016   

Project Number

MTF 04 2016A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

MTF 04 2016A 

Project Title

Mining Equipment, Technology and Services (METS) Sector Development 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Mining 

Project Year

2016 

Project Session

Session 1 

APEC Funding

150,000 

Co-funding Amount

Total Project Value

150,000 

Sponsoring Forum

Mining Task Force (MTF) 

Topics

Mining 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Australia 

Co-Sponsoring Economies

Canada; Chile; Papua New Guinea; Peru 

Expected Start Date

01/09/2016 

Expected Completion Date

31/06/2017 

Project Proponent Name 1

Sabrena King 

Job Title 1

Assistant Manager - Mining Equipment, Technology and Services 

Organization 1

Department of Industry Innovation and Science 

Postal Address 1

Level 6, 10 Binara Street, Canberra ACT 2601 Australia 

Telephone 1

61-2 62761971 

Fax 1

Not Applicable 

Email 1

sabrena.king@industry.gov.au 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Sabrena King 

Project Summary

The METS Sector Development Project will support the development of the Mining Equipment, Technology and Services (METS) sector in selected APEC developing economies (herein called the “participating economies”) by providing in-depth insight into local METS capabilities, and linking that to customer’s (i.e. miner’s) needs over the short, medium and long term. Through primary and secondary research, this project will explore mining companies’ supplier requirements, and map the current METS footprint in each participating economy. Analysis will identify potential supply chain gaps and key areas of strength and weaknesses which will lead to the development of capacity building priorities. Action Plans will be formulated to leverage current strengths and identify actions to build capability and capacity. Participating economies in this project are confirmed as Chile; Papua New Guinea; and Peru. Economies such as Australia, Canada, and Japan can provide insight into sector development issues and linkages into major Original Equipment Manufacturers and other internationalized METS.

Relevance

The Mining Equipment, Technology and Services sector has great potential to be a second pathway to ‘adding value’ to the minerals and energy resources of APEC developing economies though development of enterprises, growth in skills and employment, and adoption of technology and innovation. APEC economies and the private sector both recognize the importance of building local METS capacity to underpin growth of an important new industry sector and to facilitate quality mining investment and sustainability, and to minimize environmental impacts. Stronger mining supply chains create opportunities for new and expanded enterprise and employment, and enable economies to improve mining operations and standards. This is intended to apply across the entire mining sector, from major mines to artisanal mining ventures. Local METS sector suppliers can add value to resources production by providing new, often knowledge-rich pathways for safe, productive and efficient mining. Mining operations that now seek expertise offshore can benefit from stronger local skills and capability which will support their social license to operate. Economies such as Australia and Canada encourage the METS sector for its direct benefit to mining competitiveness and as an important source of enterprise growth, employment, innovation and revenue. These economies are well positioned to transfer experience and expertise to other economies in METS structural development, commercial partnerships and opportunities in global supply chains.

A strong partnership between government and the private sector will be paramount in order to achieve the stated short, medium and longer term objectives, given the required research to: 1.) map current and future needs of mining companies in relation to suppliers in participating economies; 2.) map local METS capacity and capabilities; and 3.) identify gaps and local supply opportunities. This is directly relevant to efforts to increase the value of mining to economies through local procurement, skills and employment, enterprise development, innovation and improvements to mining productivity. The project will also help mining companies to identify and engage local METS firms that have the capacity to achieve efficient, safe and profitable operations and reinforce their social licenses to operate by engaging local METS firms.

Each participating economy will put in place Action Plans that identify opportunities, leverage key strengths and address how to overcome entry barriers into local and global value chains. This is directly relevant to development objectives of enhancing the value of mining projects to local communities through jobs for both men and women in related areas, and through better quality results arising from increased skills. In addressing the findings and recommendations of the 2014 ABAC study Mining in APEC economies: opportunities and challenges, the project links into strategies to improve the investment climate and outcomes for mining by identifying pathways for improving local METS capabilities which support overall industry competiveness.

The project will directly support the APEC Leaders’ Growth Strategy, Rank 2, through sustainable development in mining. The project also supports Rank 1 outcomes, in particular, through SME development, including access to regional and global markets, and services trade and investment facilitation and liberalization.

Objectives

The key objective of this project is to support the development of a METS sector in the participating economies by providing in-depth insight into local METS capabilities, and linking that to customer needs over the short, medium and long term. Having a recognized and viable METS sector will contribute to not only mining sustainability, but become an important contributor to the overall economy in its own right.

Specifically, the project will increase knowledge of the METS landscape through identifying:

·  Local capacity;

·  Foreign METS operating in-market;

·  Capabilities, expertise and skill levels, including best practice and innovation;

·  Mining company needs from a strategic, technological and operations point of view;

·  Supply chain structures;

·  Barriers to supply chain entry and engagement, both external and internal; and

·  Partnerships and success stories.

The objective will be achieved through the development of Action Plans for each participating economy. The Action Plans will identify capability building priorities and key learnings, and create opportunities for local companies, particularly SMEs, to participate in mining activities. The Action Plans will focus on mining’s future needs to strategically align development activities and programs in order to build capacity to meet future needs. A core focus of this will be the level of innovation in local METS from a problem solving and strategic point of view, which is a current priority for miners worldwide.

Alignment

The project directly aligns to APEC interests in SME development, trade in services, women’s economic empowerment, regional integration, structural reform, economic growth, employment and improved regulation for trade and investment. APEC economies collectively supply over 50% of the world’s iron ore, 70% of copper, nickel, silver, lead, zinc, nickel, bauxite and tin, and 90% of coal and molybdenum. This project will address forward, backward and sideways linkages between mining and METS businesses, a proven connection to practical efforts to drive innovation, integration and growth.

Further, in 2007, Ministers Responsible for Mining agreed on principles to guide the work of the APEC Mining Task Force. This project directly addresses these principles, focusing on enabling APEC economies to pursue policies that enhance the sustainable production, trade and consumption of minerals and metals and mining technology, equipment and services. It will foster exchange and links between member economies including the transfer of experience, promote improved functioning of global markets for minerals and metals, foster investment certainty, and promote cost effective, evidence based, transparent and objective-based measures which improve the ability of the minerals industry to contribute to economic, environmental and social outcomes.

TILF/ASF Justification

This project will enable participating developing economies to more deeply understand their METS sector potential. It will provide guidance on key leverage points to foster new sector development through capacity building over the short, medium and longer terms. It will also provide important information about the needs of key mining companies, as well as inform decision-makers where gaps exist, what actions are needed to ensure a robust local mining supply chain, and what skills and expertise need to be cultivated to meet future customer demands.

This important information about mining supply trends in relation to suppliers, and potential METS development pathways will be shared with those economies not directly participating in the project. Other interested economies will be invited to the workshop so they can understand and share key learnings. The final workshop will be held in Australia, with a range of industry experts invited to participate.

All participating economies will be part of the project Steering Committee, which will guide the project and provide input and feedback as the project rolls out. Active participation will be important to enable access to mining decision makers and provide insights for data collection.

Beneficiaries and Outputs

Outputs: The project will produce a report and presentation materials for each participating economy that will provide a summary and analysis of the research, interviews and surveys undertaken. The report will be structured to address:

·  Current and future mining company supply chain needs, with a focus on local supplier capabilities, and in particularly skills, best practice, quality, and innovation and technology.

·  Snapshot of the METS sector in each economy, including local and international companies.

·  Gap analysis of mining company needs and the METS sector’s ability to meet current and future needs.

·  Analysis of overall METS offering, and key linkages within the economy and internationally.

·  Recommendations on capacity building priorities and how the METS sector in participating economies could be further developed and leveraged.

The reports will be presented at a workshop including participating economies and interested non-participating economies. At the workshop, participants will formulate an Action Plan to build on the report findings.

Electronic presentation materials will be produced to share key findings and learnings with a wider audience, including METS and miners in the participating economies.

All project materials, including reports, interviews, and research materials will be collated in a central repository or “knowledge bank” of METS sector capabilities across APEC. Australia will be responsible for maintaining this over the longer term.

Australia will also promote the project at APEC meetings, including MTF 11 in Viet Nam.

Outcomes: With the insights gained from the project research and analysis, a pathway for METS sector development can be formulated for each economy. It is anticipated that, over the medium term, METS will be recognized as an important and viable sector, and that policies and industry development programs will be put in place to foster skills, encourage sector internationalization, and drive collaboration and innovation.

The longer term outcomes can result in a robust, innovative and export-focused sector that contributes significantly to the economy and enables leading practices in the mining industry.

In Australia, both Federal and State Governments have recognized the importance of the sector and have included METS-focused personnel or sections/units in Departmental structures. This has provided not only a dedicated policy focus, but has provided strong coordination between the public and private sectors to explore and implement research and industry development programs. Similar structures could be considered in other APEC economies.

Beneficiaries: Direct project beneficiaries are the governments, METS companies, mining companies and artisanal mining ventures in the participating economies, who will gain valuable insights from this work. This includes government departments responsible for mining, mineral and natural resources, investment and trade, small business development, skills and education, science and innovation and economic development organizations.

METS companies will benefit by identifying the needs of mining companies and gaining a better understanding their key priorities. This will help shape future strategies for skills development, technology adoption and general business growth. It will also foster a METS “community” where partnership opportunities can be formed.

Mining companies will benefit by understanding the METS landscape and local capabilities of which they might not have been aware.

Others APEC developing economies will benefit indirectly by understanding the potential for METS in their economy. Developed economies and mature METS markets can benefit by understanding mine development and operations issues and METS capabilities for partnership, technology transfer and commercial opportunity linkages.

Dissemination

There will be reports produced for each of the participating economies. The reports will be distributed electronically, along with the associated presentation materials.

The main target audience for the report will be the economy governments, METS and mining companies in the participating economies. The outputs arising from this project will be publically available at no cost.

All project materials, including reports, interviews, and research materials will be collated in a central repository or “knowledge bank” of METS sector capabilities across APEC. Australia will be responsible for maintaining this over the longer term.

Findings of the project will also be disseminated through the networks of co-sponsors, as well as those organizations involved in the project. Presentations will be given at MTF meetings and at the International Mining and Resources Conference in 2017. Information will also be put onto the Australian Government Department of Industry, Innovation and Science website.

Gender

Both the mining company interviews and METS survey will be designed so gender diversity issues can be explored, and in particular assess the percentage of women involved in METS, their roles, barriers and opportunities to inclusion. Information will also be collected on organization or associations that may support the professional or career development of women in non-traditional female industries, and mining or engineering in particular. It is estimated that 20-30% of workshop participations and speakers will be female.

Work Plan

It is anticipated it will take ten months to complete this project. A draft project schedule with suggested milestones is as follows: 

Key Activity

Milestones/Key Activities

Target date/timeline

Project Planning

Milestone 1: Consultant identified and contractedThe APEC Secretariat and PO will coordinate a Request for Proposals (RFP) to contract a suitably qualified consultant to provide project management, methodology development, interview and survey design, secondary research, field work, reports and workshop facilitation. 

Milestone 2: Steering committee formed
The PO will organize a small volunteer Steering Committee  consisting of all participating economies and interested developed economies, including Canada. Australia will chair the Steering Committee. It is anticipated the Steering Committee will meet via teleconference 3-4 times over the course of the project.

Milestone 3: Project plan completedThe consultant will develop a comprehensive project plan including key activities, timeframes and milestones. The PO will track progress against the plan and report to the Steering Committee at agreed intervals.

Sept-Oct 2016

(approx. 6 weeks)

Secondary research

Milestone 4: Secondary research completed
The consultant will complete secondary research on project databases, information/statistics from industry associations, mining chambers and trade organizations, as well as government statistics, databases and reports.

Oct – Nov

(4 weeks)

Mining company interviews

Milestone 5: Mining company interviews completed
The consultant will interview 10-12 mining companies in each participating economy. Interviews will include a mix majors, mid-tiers, juniors and, potentially, explorers. Artisanal/small scale mine owners will also be interviewed as relevant. Face-to-face and telephone interviews will be conducted.

Nov- Dec

(4-6 weeks)

METS mapping and survey

Milestone 6: Survey completed
An online or paper-based survey will be conducted of METS companies in the participating economies. This will focus on key demographics, services/products provided and core capabilities. Target number: 50-100.

Jan – March 2017

(8 weeks)

Analysis and feedback

Milestone 7: Analysis conducted
The interviews and survey data will be analyzed and results will be reported in the aggregate for each participating economy. The initial analysis and conclusions drawn will be sent to the Steering Committee for comment and feedback. Separate analysis will look at trends across all three participating economies.

April

(4 weeks)

Report writing

Milestone 8: Report written
Reports for each participating economy will be prepared. Reports will contain a full analysis of all findings, including capacity building priorities.

April – May

(4-6 weeks)

Workshops

Milestone 9: Workshop held
A workshop to discuss the findings of the reports will be held in Australia in June 2017. This will include participation from METS and mining organizations who will discuss and share METS, technology and innovation development in Australia. The workshop will be held over 2-3 days and include METS companies and/or mine site visits. 

The workshop will also discuss the support that participating economies will need to implement the Action Plans.

June 2017

Implementation of Action Plans

The Steering Committee will remain in place for six months following the conclusion of the project so that progress on the Action Plans can be discussed and tracked. The Steering Committee will meet on a bimonthly basis. 

Continuous support will also be provided to participating economies during the implementation of the Action Plans through Skype and email when required.

July-December 2017

Risks

Key risks include:

Risk

Risk mitigation strategy

Low level participation from mining companies

Identifying a range of mining companies, work closely with participating economies, use locally based organizations with strong contacts to do the interviews.

Low level participation from METS firms

Work closely with participating economies to identify METS firms, tap into OEM supply chain, use organizations like Austmine, CAMESE and Altaley. Develop a strong database in the early stages of the project.  

Low level participation from participating economies

Enhance current relationships with participating economies through open communication and flexibility in the project as it moves along.

Lack of appropriate data

Work closely with participating economies to identify available data, gaps in data and where possible ways to address the gaps.

Project timelines not met

Close monitoring of program activities. Strong project management skills and engagement of Steering Committee members.

Monitoring and Evaluation

The project will be carefully monitored by the PO managing the consultant, who report monthly to the Steering Committee. At the commencement of the project, key deliverables, project objectives and milestones will be re-confirmed and agreed upon. Feedback on achievement of objectives from the Steering Committee will be gathered on a monthly basis. This will take the form of verbal feedback during the Steering Committee’s meetings, and through a brief written survey to better assess project impacts half way through the project and at its conclusion. Milestones and participation targets will also be set so that project can be further measured and tracked. The ultimate measure of impact, however, will be the implementation of the Action Plans and the commitment to building a robust METS sector by the participating economies.

The following indicators will be used to monitor the project:

-  The Steering Committee is established and engaged early in the project. Milestones and participation targets are agreed.

-  The Steering Committee provides guidance as the project progresses.

-  Participating economies are actively engaged in the project and a strong database of private sector organizations is built.

-  Support for the project is received from key stakeholders including miners, Original Equipment Manufacturers, METS companies and other industry organizations.

-  Accurate and relevant data is collected and analyzed in a timely manner.

-  Interviews are conducted on time and with a variety of organizations.

-  Action Plans accurately reflect the needs of each participating economy and contain achievable outcomes.

-  A successful workshop is held to discuss the findings of the project and the support needed for implementation.

-  Action Plans are implemented in each participating economy with support from the Steering Committee.

-  Information from the project, including key learnings are shared with other APEC economies.

Linkages

This project will involve significant private sector participation including individual firms, METS and mining associations, organizations and Chambers, and groups involved in SME and economic development, for example; Codelco, Newcrest, PanAust, Caterpillar, Komatsu, the Canadian Association of Mining Equipment and Services for Export, Austmine and the Commonwealth Scientific and Industrial Research Organisation. We will engage the private sector through both Government channels and linkages to mining projects, mining companies, universities and educational institutions and foreign invested firms. The APEC Policy Partnership on Women and the Economy will be approached to participate.

This project builds on MTF work by widening its remit to include not only mining but the wider value chain. Policies focused on building a strong supplier base are particularly important to innovation and technology, as these factors will assist mining sustainability over the longer term.

This project also builds on the ABAC Asia-Pacific Mining Sector Study 2014, presented to MTF in 2015. This study shows that mining is a significant contributor to APEC economies, with significant potential for Government policy to influence best-practice social, environmental and economic impacts. METS is a key catalyst to mining best practice and this project will demonstrate direct linkages to this and how Government policy can be formed to help build and grow a strong METS sector.

Further, mining’s contribution to many APEC economies is often understated, not taking into account METS’ important economic, social and community contribution. This project will emphasize this important aspect and begin to explore this impact across the wider APEC region.

Sustainability

The beneficiaries will be given economy-specific reports which can be easily shared with key project stakeholders. A plan of engagement with these groups will be discussed during the workshop and as part of the development of the Action Plans. 

It is suggested that the Steering Committee remain in place for several months following the conclusion of the project so that progress on the Action Plans can be discussed and tracked. As a result of this, group or economy-to-economy projects could be undertaken to carry forward specific actions or events. 

A key to the sustainability of this project will be strong engagement from the private sector at all stages of the project. The project plan will include a compelling private sector engagement strategy to encourage participation. Support from both mining and METS firms will be crucial to continue sector development initiative. Strong partnerships with key industry associations and chambers will therefore be sought. 

It is anticipated that participating economies will devise plans to implement the Action Plans; this could include the establishment of an industry-led body which has a focus on the mining equipment, technology and services sector and will work on implementing the Action Plan. This body could be attached to already existing industry-led organizations in participating economies. 

It is hoped that the success of the project will showcase the economic impact that the mining equipment, technology and services sector has on APEC economies and that a regular section for discussion could be put onto the MTF agenda. This section would discuss the implementation of Action Plans in participating economies including learnings, impacts and benefits to those economies, as well as how the project could be applied in other APEC economies.  At the completion of the project a presentation will be made to the MTF meetings in 2017 and 2018.

Project Overseers

Mrs Sabrena King, Assistant Manager of the Mining Equipment, Technology and Services of the Australian Department of Industry, Innovation and Science will be the Project Overseer (PO). Mrs King has seven years’ experience working with industry, including capability development and has a good understanding of the mining equipment, technology and services industry. She has previously worked in the Australian Department of Foreign Affairs and Trade.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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