27 October 2011 – Australian manufacturers and suppliers will have a greater opportunity to supply the needs of major resources projects as a result of new initiatives announced by the Prime Minister yesterday.

The Gillard Government will provide over $1.2 million to connect Australian companies with supply opportunities on four of our largest multi-billion dollar projects through the Industry Capability Network (ICN) program.

The four projects ICN providers will now start working on are:

• Woodside’s proposed Browse LNG project in Western Australia
• INPEX’s proposed $25 billion Ichthys LNG project in the Northern Territory
• BHP Billiton’s proposed Olympic Dam mine in South Australia
• LNG projects in the Gladstone area of Queensland with a combined value of $50 billion, that have reached final investment decision.

Speaking at Hofmann Engineering in Perth, the Prime Minister said the Gillard Government’s support for the ICN program was an innovative way to help Australian manufacturers win contracts on major resource projects.

There are immense opportunities for Australian industry to benefit from one of the largest resources sector investment booms and we want to make sure Aussie businesses have the best chance at securing these contracts.

In 2010-11, the ICN helped Australian companies secure more than 150 contracts valued at more than $750 million.

Without this assistance these contracts could have gone to overseas companies.

Capital expenditure in the resources sector is predicted to reach a record of over $82 billion this year, up from $47 billion last financial year.

The Australian Government funding to the ICNs is part of the Buy Australian at Home and Abroad package announced in May to link Australian suppliers with major resources and infrastructure projects.

Today’s announcement complements steps to strengthen Australian Industry Participation Plans announced recently. These measures include:

• Extending the requirement of Australian Industry Participation Plans for Federal Government grants of $20 million or more, and for grants of $20 million or more to the states and territories where they do not apply their own industry participation plans.
• Requiring more comprehensive evidence of opportunities being provided to Australian industry for companies participating in the Enhanced Project By-law Scheme.
• Appointing four additional Supplier Advocates to target capability gaps and opportunities in key sectors, including steel.
• The appointment of the Hon Peter Beattie as the Resources Sector Supplier Envoy to maximise Australian participation in the resources sector. Mr Beattie will visit Perth in November to hold industry consultations and facilitate the inaugural Resources Sector Supplier Advisory Forum meeting.

More info: http://minister.innovation.gov.au/