Australian Resources Sector Research Articles

Seafarers on the shore: issues raised by Australian doctors treating seafarers.

Seafarers on the shore: issues raised by Australian doctors treating seafarers.

Understanding Indigenous Reconciliation Action Plans from a corporate social responsibility perspective

Many local and foreign companies operating in Australia are now establishing Reconciliation Action Plans (RAPs) to commit to and report on specific activities for engaging Indigenous stakeholders. While RAPs appear to align with existing approaches of sustainability reporting, these disclosure practices are yet to be empirically investigated within the broader context of CSR, or specifically the implications for stakeholder theory perspective. This paper examines RAP reporting practices over a thirteen year period, as well as how firms disclose reconciliation activities into their sustainability reporting and whether firms with RAPs disclose more ‘reconciliation’ activities than others. A content analysis is performed based on a sample of RAPs, sustainability reports and website data from companies operating in the Australian resources sector. Results indicate that firms do integrate reconciliation activities into their general sustainability reporting, however the quality of disclosure was in most cases low. The analysis also shows that on average, firms with RAPs do disclose reconciliation activities in greater detail than similar firms without. These findings provide a new empirical understanding embedded within theoretical perspectives of CSR, to support further integration of RAPs across industry and improve community impact.

Bullying in Fly-In-Fly-Out employees in the Australian resources sector: A cross-sectional study.

BackgroundWorkplace bullying has diverse consequences at both the organisational and individual level. Anecdotal reports indicate that workplace bullying is an issue of particular concern for Australian FIFO workers, which may impact on psychosocial distress. However, no prior studies have examined this issue empirically in a FIFO worker cohort.Methods and materialsA cross-sectional survey study design was used to establish the prevalence of bullying in Australian FIFO, antecedents of bullying, and its association with psychosocial distress. Responses were received from 580 FIFO workers in the Australian resources sector. Primary outcome measures were Negative Acts Questionnaire-Revised, Beck Depression Inventory II, and Beck Hopelessness Scale. Logistic regression models were constructed to examine the association between bullying, suicide risk, and clinical depression.ResultsOver half of the respondents experienced workplace bullying (55.7%), and about one-third reported moderate or more severe depression (32.3%). Being above the median age (OR = 0.51; 95% CI = 0.31–0.83) and having a supervisor who failed to promote collaboration (OR = 3.04; 95% CI = 1.84–5.04) were both significantly associated with experiencing bullying. Bullying was associated with an almost threefold increase in the likelihood of participants reporting increased suicide risk (OR = 2.70; 95% CI = 1.53–4.76). Bullying was also associated with participants being almost two and a half times more likely to report clinical depression (OR = 2.38; 95% CI = 1.40–4.05).ConclusionThe incidence of bullying in Australian FIFO workers has reached alarming proportions. Bullying was significantly associated with higher levels of clinical depression and suicide risk. The results highlight the need to implement in the Australian resource sector interventions that reduce workplace bullying.

Suicide risk and social support in Australian resource sector employees: A cross-sectional study.

This study examines the association between suicide risk and social support in Australian resource sector employees. We included 150 participants, who completed the Beck Hopelessness Scale and MOS-Social Support Survey. Data were analyzed using smallest space analysis and multidimensional scalogram analysis. The analysis identified four distinct regions, which were conceptualized as "confiding," "affection," "companionship," and "practical help." All of these components of social support were associated with hopelessness, which has important clinical implications as hopelessness is related to suicide risk. The results of this study also demonstrated that lower levels of social support, and greater sense of perceived hopelessness tended to lead to Australian resource workers seeking assistance from mental health professionals in the previous year. Attention should turn towards providing interventions that promote social support for employees in Australian resource industry.

Mapping meanings of corporate social responsibility \u2013 an Australian case study

Corporate Social Responsibility (CSR) is an evolving concept that reflects various views and approaches regarding corporate relationships with broader society. This study examines the meanings and values attached to CSR within the Australian resource sector where various interests shape the implementation of CSR programs. The study was based on in-depth interviews with industry practitioners, business leaders, environmental and social specialists, government representatives and community leaders, including representatives from Indigenous groups.CSR was found to be a complex, multi-dimensional concept that was highly individualised with a variety of aspects highlighted during interviews. To make sense of this complexity, meanings of CSR were mapped according to Carroll’s four dimensions, namely Corporate, Legal, Ethical, and Philanthropic. However, a further CSR dimension was also required to capture the full spectrum of meanings. Referred to as ‘CSR interaction’, this dimension focuses on CSR meanings that align with the concept of CSR creating social change and improving the dynamics between companies and local communities and stakeholders.This study also identified some key social processes or drivers which helped explain how and why CSR meanings and approaches are adopted and delivered. These drivers also increased understanding of the wide diversity of CSR meanings and their distribution across the different stakeholder groups. Drivers included not only individual-level influences such as background, life experience, cultural and ethical values, but also broader influences such as organisational and institutional context. The implications of this for CSR practice were explored.The study sought to provide guidance for developing a working definition of CSR within the given context, through identifying the key integral requirements for CSR incorporating different perspectives and interests. The intent is that this can help support evaluation of the future success of CSR programs within the Australian resource sector.

Mechanisms of change: Stakeholder Engagement in the Australian Resource Sector through CSR

AbstractThe study sought to draw new perspectives on how corporate social responsibility (CSR) is shaped and created within the resource sector. The study focused on examining the role of external stakeholders in influencing the CSR strategies implemented by Australian resource companies. Data were gathered by semi‐structured interviews with key stakeholders involved with 25 resource companies located in South Australia, Western Australia, and the Northern Territory.Consistent with sociological theories of CSR, stakeholders such as business and community leaders, non‐government organizations (NGOs), and government employees were able to influence CSR by empowering communities to participate in CSR, bridging cultural divides between companies and communities, and linking companies to key society standards. This was facilitated by the expression of personal ethical values and knowledge sets by stakeholders and where relevant those of their organization.A range of stakeholders were active agents of change, bringing in new ideology, skills, and expertise, and, at times, challenging existing corporate practice. This process was underlined by relationship building and trust. Stakeholders effectively introduced higher ethical values to concepts of public accountability, environmental sustainability, and social justice in line with personal and organizational ethics.The study also identified factors which promoted stakeholder influence and gave stakeholders power within CSR. This included a range of institutional‐level factors such as regulatory and legal frameworks, company policy, and cultures, but also interpersonal skills and abilities of the individuals involved.The study highlights the strategic benefits of stakeholder involvement in CSR within the Australian resource sector and discusses implications for the broader resource industry. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment

2018 offshore petroleum exploration acreage release

The Australian Government’s 2018 offshore petroleum exploration acreage release was announced by the Commonwealth Minister for Resources and Northern Australia, Senator the Hon Matthew Canavan at the 2018 APPEA conference. This paper provides insights into the processes that the Australian Government has undertaken to select the final release areas and goes into detail on the ongoing petroleum related activities of the Department of Industry, Innovation and Science (the Department). The annual acreage release is a central component of ensuring ongoing, sustainable and responsible investment in Australia’s offshore petroleum sector. The annual acreage release remains the primary mechanism for securing investment in offshore oil and gas exploration in areas of known petroleum potential and new geological frontiers. Continued exploration for oil and gas in Commonwealth waters is a central component of ensuring Australia’s future energy security. Australia’s well established and independent environmental regulator, NOPSEMA (the National Offshore Petroleum Safety and Environmental Management Authority), ensures all petroleum activities in Commonwealth waters are performed safely and in an environmentally responsible manner. Combined with NOPTA’s (National Offshore Petroleum Titles Administrator) leading practice titles administration, Australia remains an attractive investment destination while offering industry leading environmental protections and ensuring safe working conditions industry-wide. Australia offers investors access to data, secure tenure, a stable economic environment and a well-established transparent regulatory system for offshore petroleum activities. A key driver for sustainable activity in Australia is the acceptance of multiple use access to Australia’s marine resources. Recognising this, the department consults with a range of stakeholders on the areas it proposes to release for petroleum exploration. This consultation process provides an opportunity for all interested parties to provide comments and feedback on the areas proposed and in particular highlight how interested parties or the areas might be impacted by exploration activities. The 21 areas in the 2018 offshore petroleum exploration acreage release are located in the offshore areas of Western Australia, South Australia, Victoria and the Ashmore-Cartier Islands. These areas will enable the next wave of investment in the Australian resources sector, and the prospect of new oil, gas and condensate production.

Developing community based models of Corporate Social Responsibility

In this article, grounded theory was used to develop models of Corporate Social Responsibility (CSR) that can generate benefits for communities impacted by the Australian resource sector. Interviews were conducted with community representatives who interacted with a range of resource companies located in three Australian jurisdictions. Separate conceptual models were developed for Indigenous communities with legislated land rights as opposed to local communities nearby resource development. This was because they had different priorities in terms of model elements. Indigenous people sought to maintain cultural and environmental values through CSR whilst accepting a need for some social change. These values were expressed in cases where legislative frameworks enabled their protection and sufficient resources were available, such as financial capital, policy commitments and stakeholder support. Local communities were seeking to maintain their viability and to ensure companies were accountable for their impacts. CSR in this context relied on company policy and the formation of voluntary partnerships which differed according to the organisation’s culture. In this paper, it is argued that participatory CSR provided a mechanism to express community values linking it to perceptions of empowerment and capacity to provide long-term value to communities. The study also helps identify where improvements can be made to the Australian resource sector.

Our energy future: the power of collaboration to transform Australia's energy resources sector

After decades of sustained economic growth, Australia is experiencing declining productivity, accelerating technological change and disruption. At the same time, the energy sector is emerging from a massive investment phase, while facing its own perfect storm of disruptive challenges. The industry must navigate these challenges to remain globally competitive. Continuing old practices is a sure pathway to stagnation and decline; we must urgently find different ways to do things. Global benchmarking of the Australian energy resources sector, undertaken recently on behalf of NERA, indicated substantial room to improve the efficiency and productivity of the sector. The report outlines more than AU$5 billion of value through improvements across the following four key areas: supply chain, research and innovation, workforce and regulatory reform, and collaboration is the key. Over the past 24 months, Australian energy-resource companies have focussed on lowering capital cost and improving profitability through efficiency, ensuring the industry has the fundamentals needed to be globally competitive. However, transformational change is needed if the sector is to survive and thrive in this age of innovation and disruption. Further, Australia’s energy resources marketplace is too small to focus only internally. Industry, suppliers, innovators and knowledge experts must collaborate locally, forming connections to access the global marketplace. The size of the prize is significant for everyone. The Australian energy resources sector has the potential to continue to meet the regions energy-resource needs for many years, generate substantial revenue for the nation and grow an export-orientated service and technology sector.

Geologists, FIFO work practices and job satisfaction

This paper presents the findings of a study into the factors linked to the job satisfaction and well-being of fly-in fly-out (FIFO) workers in the Australian resources sector, focusing on geologists. The findings indicate that geologists have high levels of job satisfaction and most appear to have adapted successfully to the demands of the FIFO lifestyle. While a number of studies have raised a range of concerns about the impact of FIFO work arrangements on the health and well-being of FIFO workers, this study provides a more granular examination of factors that may contribute to a greater understanding of the link between job satisfaction and physical and mental health. The main finding from the study was that job satisfaction was high among these early career professionals who are motivated by intrinsic career rewards and who have limited domestic responsibilities. The second major finding was that, although respondents reported good physical and psychological health, a small number were experiencing serious psychological distress.

The Association of Fly-in Fly-out Employment, Family Connectedness, Parental Presence and Adolescent Wellbeing

Fly-in fly-out work patterns have become an integral part of employment in the Australian resource sector. When attachment to parents is disrupted by a parent working away from home on a regular basis, young people’s feelings of connection to their family may be impacted, as well as their mental and emotional well-being compromised. The objective of this study was to explore the mediation of parental presence and family connectedness on the association between fly-in fly-out employment and adolescent well-being. A cross-sectional survey of over 3,000 Grades 5–10 students from 40 Perth West Australian metropolitan and rural schools identified 618 students whose parents were involved in fly-in fly-out employment. Multi-level mediation analysis showed that the negative relationship between fly-in fly-out status and adolescent depressive symptoms and emotional and behavioural difficulties was fully or partially mediated by parent presence and family connectedness, controlling for both student and school level demographics. The intermittent absence/presence of fly-in fly-out employment patterns appears to create challenges for workers and their families, not experienced by non-fly-in fly-out families.This study highlights the importance of strengthening family connections within fly-in fly-out households. Suggestions have been made to help fly-in fly-out parents to stay in touch with their families.

Gladstone Energy Training Centre—building technical excellence for the Australasian region

The Australian resource sector makes significant investment in its people and also places the highest priority on safe practices. To be competitive globally the sector needs to focus on and invest in education, training and competence to the highest of standards. The ongoing development of major CSG to LNG projects in Queensland has created an opportunity for an energy industry operations and maintenance training facility of world class respond to the regional demand for a skilled workforce. Central Queensland University (CQU) is establishing such a training facility through the recent merger of CQU and Central Queensland Institute of TAFE. The proposed training facility will create pathways from trade to professional streams to support workforce development, quality and adaptive capacity. The authors describe the collaborative approach between CQU and industry sectors to contextualise units of competency in selected industry required qualifications, as well as mapping the training for the Australian Qualifications Framework. The key to the success of the CQU-industry partnership will be a holistic, blended learning approach that incorporates leading industry practices and processes. The methodologies will include in-class, onsite, online, project-based simulations, and coaching and mentoring. This blended learning approach will ensure direct application of the learning conducted through CQU to the workplace of industry. In addition, it will be able to deliver the latest insights from cutting-edge research available through the university, opening a new avenue for the partnership to grow and deliver on industry-led initiatives.

Utilising 4PL solutions to drive efficiency on major capital projects

The Australian resources sector is demanding solutions that will help deliver projects more cost efficiently and with better productivity. This is seeing a shift towards specialist contractors overseeing non-core functions for operators in the sector, reducing their management overheads and allowing for a greater focus on core operations. As a result, there has been an emergence of fourth-party logistics (4PL) and supply chain solutions that centrally manage the complexities of logistics and the supply chain on behalf of the client. Operators have struggled in the past to gain accurate and timely reports on the status of material orders. A 4PL and supply chain model leverages synergies that simplify processes and drive better commercial outcomes. An experienced and reliable 4PL provider will bring value and a re-engineered approach to a major project, as it identifies appropriate suppliers, sources technically acceptable materials, services at the best price, monitors and expedites orders to completion, and designs and plans the delivery, distribution, storage, collection and final removal of materials, waste scraps and surplus. By integrating logistics into the entire end-to-end solution, companies can overcome the supply chain and logistics challenges that often hamper projects, leading to cost and schedule over-runs. This extended abstract will analyse the development and implementation of a 4PL solution, referencing lessons of and experiences from, some of the world’s largest resource projects.

Testing a new Contrarian Strategy between Hong Kong and the Australian Resources Sector: A Research Note

During the financial crisis investment strategies following long only asset allocation methodologies floundered in the wake of a 57% peak-to-trough decline of the S&P 500. This paper demonstrates a new strategy that produces strong returns in both up and down markets. A new contrarian/pairs-trading approach using the Johansen (1988) cointegration method was developed and implemented from January 2003 to March 2013 using constituent stocks from the Hang Seng Index and Metals and Mining Index. The strategy produced a return of over 607% for the period (or an annual return of more than 21%). This supports previous research demonstrating the profitability of international arbitrage strategies (for example Abraham, 2013a; and Abraham, 2013b).

Migrant workers on temporary 457 visas working in Australia: implications for human resource management

In this paper data was collected in 2012 for a study concerning the employment of skilled workers on temporary 457 visas in the Western Australian resources sector. While workers came from numerous countries in order to meet the sector’s skill shortages, issues relating to workers from the Philippines were prominent due to the difficulties they reported. These difficulties included: skill recognition; workplace and community integration challenges, and deficiencies in their family members’ English language ability. The experiences of workers on 457 visas from other countries are compared with those of workers from the Philippines. Interviews with key stakeholders from a sample of resource sector firms that employ Filipino workers on 457 visas and agencies that support their integration are also reported. The purpose of the paper is to highlight the HRM implications of employing migrant workers on 457 visas, especially Filipino workers, to facilitate successfully adaption to Australian workplace culture.

Supply chains and responsibility for OHS management in the Western Australian resources sector

Purpose– The purpose of this paper is to analyse human resource supply chains and the responsibility of occupational health and safety (OHS) management using Australian evidence from two unrelated research studies in the resources sector.Design/methodology/approach– The analysis is based on additional findings from the research projects using qualitative case study methodologies. The paper draws on interviews with the underground mining manager in study 1 and the OHS manager in study 2, together with current literature on supply chains and OHS responsibility in Australia.Findings– The paper uses examples drawn from two research studies conducted in the resources sector in 2011 to present the notion that there has been a shift in responsibility and management of OHS from the top of the supply chain to the bottom.Research limitations/implications– The paper draws on two unrelated studies that investigated different issues in OHS management. There is a need to undertake specific research to confirm the argument that suggests that the OHS management systems are improving for the bottom of the human resources supply chain in the resources sector.Practical implications– Findings suggest that in the middle tier resources sector the bottom of the human resources supply chains have robust OHS management systems and induction training, contrary to the weakening of OHS management in typical supply chains in other sectors.Originality/value– Unlike manufacturing, healthcare, the public sector and transport, there is little research conducted in the resources sector researching supply chains and OHS management. This paper provides limited evidence of a differing picture in the resources sector than other industries; however, it argues that further studies should be conducted.

The Challenges of Chinese Outward Investment in Developed Countries: The Case of CITIC Pacific's Sino Iron Project in Australia

AbstractSino Iron is a multibillion‐dollar magnetite iron ore project located in Cape Preston, a remote region in western Australia. Acquired by China International Trust and Investment Company (CITIC) Pacific for 100 percent of its equity, Sino Iron is China's most significant investment in the Australian natural resources sector and is the largest magnetite mining and processing operation under construction in Australia. Written from the perspective of Dr. Hua Dongyi, the executive chairman of the Sino Iron project, this case highlights the significant challenges faced by Chinese companies venturing overseas, including government relations, labor relations, and social and environmental responsibility. © 2013 Wiley Periodicals, Inc.This research was supported in part by the Bloch Summer Research Grants, University of Missouri–Kansas City. We appreciate helpful comments from the three anonymous reviewers, Professors Mike W. Peng, and John Cantwell. The views expressed are those of the authors and not those of the sponsor.

Funding the Australian Resources Investment Boom

Investment by the Australian resources sector has risen steadily since the early 2000s to be at record levels. Most of the investment has been made by publicly listed companies, with contributions split evenly between Australian and foreign listed companies. The funding for this investment has overwhelmingly come from the profits generated by these companies. External funding sources, such as new debt and equity issuance, have played only a limited role.

Exchange rate exposure and the use of foreign currency derivatives in the Australian resources sector

In this paper, we provide a re-examination of the exchange rate exposure and foreign currency derivative use by Australian resources firms in the 2006–2009 period which is characterized by increased volatility caused by the global financial crisis. In particular, we consider the interaction of a resources firm's exchange rate risk exposures, foreign currency derivative use and the global financial crisis simultaneously. Conforming to expectations, our results indicate that more companies are significantly exposed to exchange rate risk since the onset of the financial crisis. However, there is a lack of evidence that the use of foreign currency derivative is more effective in alleviating exchange rate exposures during the crisis as opposed to the pre-crisis period.

Mineral and energy policies*

Recent years have seen significant growth in the mineral and energy resource industries globally. In Australia, the mining boom has impacted on the broader economy through appreciation of the Australian dollar resulting from strong resource exports. At the same time, the Australian Government is moving to introduce a mining tax and a price on carbon, both of which will have significant impacts on the resources sector. The environmental and social impacts of mining continue to be an important focus of public debate and academic research. With such momentous changes underway, a special issue of AJARE focusing on these themes is well-timed. Australia is well endowed with a range of mineral and energy resources. Australia has the largest economic demonstrated resources of brown coal, lead, rutile, zircon, nickel, silver, uranium and zinc, as well as significant resources of antimony, bauxite, black coal, copper, gold, industrial diamond, iron ore, ilmenite, lithium, manganese ore, niobium, tantalum, tungsten and vanadium. The resources sector is an important contributor to the Australian economy. In 2010–2011 in industry gross value-added terms, mineral resources accounted for around nine per cent of GDP ($117.7 billion). In 2010–2011, resources and energy sectors exports were valued at $177.4 billion and accounted for a record 83.9 per cent of commodity exports and 59.5 per cent of total goods and services exports. In employment terms, the resources sector is a small part of the Australian economy, accounting for less than two per cent of total employment in 2010–2011. Despite this small number, the relatively high wages paid by this sector present a challenge for other industries competing for labour.