DEPARTMENT FOR ENERGY AND MINING
11 Waymouth Street, Adelaide
GPO Box 320, Adelaide SA 5000
www.energymining.sa.gov.au
Contact phone number: 08 8463 3000
Contact email: DEM.OCE@sa.gov.au
ISSN: 2652-7553
Date presented to Minister: 29 September 2023
To:
Honourable Tom Koutsantonis MP
Minister for Energy and Mining
This annual report will be presented to Parliament to meet the statutory reporting requirements of (insert relevant acts and regulations) and the requirements of Premier and Cabinet Circular PC013 Annual Reporting.
This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.
Submitted on behalf of the DEPARTMENT FOR ENERGY AND MINING by:
Dr Paul Heithersay
Chief Executive
Date 28 September 2023
From the Chief Executive
One of the great challenges of the 21st Century is to successfully implement a strategy to transform an entire economy to respond to the threat posed by the ongoing climate emergency. As one of the very few government departments globally that recognises the link between mining and renewable energy, the Department for Energy and Mining is at the forefront of meeting that challenge.
In 2022-23, the department took further steps to support the South Australian government’s net zero emissions ambition. To achieve this objective, the department has aligned its regulatory functions, policy development and information provision as enablers to achieve this objective.
South Australia has the first power system in the world where rooftop solar can exceed the state’s total electricity demand. South Australia is projected to reach 85 per cent of energy generation from renewable sources. Grid-scale batteries have been added to the network to provide power system security services, and the Hydrogen Jobs Plan, overseen by the department’s attached office, the Office for Hydrogen Power South Australia, will ultimately add hydrogen-generated power to that suite of firming services available in South Australia.
Our ambition for South Australia is to continue to reach these milestones and realise the full potential of our renewable and natural assets, through our support for encouraging a culture of innovation, and global leadership in adopting renewable energy generation and storage while exporting the minerals and fuels that are essential for our trading partners to meet their international emissions obligations.
We acknowledge the essential role that Aboriginal people play in energy and mining as land managers, heritage custodians, business owners and community leaders. The department also recognises that developing our resources also leads to a better standard of living and economic opportunities for our regional and remote communities.
The biggest challenges we faced in 2022-23 stemmed from the global energy crisis triggered by Russia’s invasion of Ukraine and the historic floods that cut off many Riverland communities from electricity. In addressing the first challenge, the Department for Energy and Mining contributed its policy knowledge to support the national response, which has kept energy price rises lower than they would have been without coordinated action. In terms of the Murray River floods in November and December, the Office of the Technical Regulator contributed its expertise to keep communities safe when rising water threatened electrical infrastructure while providing timely advice to allow those homes and communities to be reconnected to the grid when it was safe to do so.
This financial year has also been an opportunity to take stock of what we have accomplished and begin developing long-term strategies to ensure South Australia has a smart, sustainable, and inclusive economy.
The department launched the Energy Transition Roundtable as a first stage in developing an economy-wide comprehensive plan to guide South Australia to its net zero-emission future. To allow all South Australians to contribute to the co-design of this far-reaching policy, the government adopted a green paper/white paper approach.
Similarly, the Department for Energy and Mining embarked on the design of the nation’s first legislative framework to support the development of a hydrogen economy. The creation of the South Australian Aboriginal Renewable Energy Forum, which allowed the First Nations people to provide valuable input into this innovative regulatory framework supported the work to design the pioneering draft Hydrogen and Renewable Energy Bill.
Greater interconnection with the east coast elements of the National Energy Market is underway with the successful upgrade of the Heywood Interconnector with Victoria and the initiation of works to construct Project EnergyConnect with New South Wales. In South Australia, improvements to the Eyre Peninsula electricity infrastructure, the addition of synchronous condensers and the world’s largest grid-connected source of virtual inertia ensured adequate system strength to avoid instability and supply interruptions while enhancing grid security. Through these innovations, South Australia is demonstrating to the world it can transition to greater renewable energy generation without compromising grid stability.
On the mining front, increased resource production contributed to a royalty stream of $379.1 million in 2022-23. Forecasts suggest favourable commodity prices and increased production will potentially allow South Australia to achieve record royalties in 2023-24. The outlook for further development of our resource endowment also looks promising with mineral exploration reaching its highest level in 11 years in the March quarter of 2022-23.
The search for copper underpinned 53 per cent of the $64.2 million spent on the search for new mineral resources. Drilling campaigns to improve the understanding of the Oak Dam and Kalkaroo copper deposits are leading this exploration. A substantial increase in copper exports also bolstered South Australia’s overall trade performance, with each month breaking the previous month’s record for total goods exported. To enable good engagement practices between resource companies and landowners, the Department for Energy and
Mining launched a voluntary Code of Conduct for explorers and miners while continuing to support the work of the Landowner Information Service to provide free, factual and impartial information on exploration, mining and quarrying.
South Australia’s extractive industries remain well-regulated. The department’s commitment to enforcing compliance was demonstrated by a successful conviction of a contractor for illegal mining at a private property near Port Augusta.
The department continues to safely regulate the oil and gas industry and support its ongoing transformation through the South Australian Roundtable for Oil and Gas Projects. One of the exciting developments in this area is the Santos/Beach Energy joint venture to develop the Cooper Basin carbon capture and storage project.
The Department for Energy and Mining has supported the transition to electric vehicle use by facilitating the Statewide EV Charging Network and the $3.2 million Smart Charging Trials. At a micro level, the department negotiated a charging port in the car park of its leased premises in the Adelaide CBD.
Internationally, the department has contributed to outbound missions to the United States, Canada, Japan, South Korea, the Netherlands, Germany, Spain and the United Kingdom to showcase the South Australian experience and invite partners on our transformational journey. The global reputation the Department for Energy and Mining has helped to establish is reflected in the latest Fraser Institute Survey of International Mining Companies, which ranked South Australia as number one in the world for geological databases, number three for policy perception and number nine in overall investment attractiveness.
The Department for Energy and Mining is a White Ribbon Accredited Workplace, reflecting its commitment to ensuring everyone has a safe and supportive work environment. The department supports the aspirations of Aboriginal people through its Reconciliation Action Plan. A Diversity and Inclusion Plan has been developed that established a Diversity and Culture Committee and formed working groups to guide the implementation of disability access, diversity, inclusion and reconciliation plans.
There are undoubtedly monumental challenges ahead for the Department for Energy and Mining, but the efforts of the department’s dedicated and expert staff throughout 2022-23, continues to ensure South Australia has the capacity to respond in a timely and appropriate way to benefit everyone in the community.
Ending on a sad note, the Department for Energy and Mining farewelled one of the giants of the oil and gas industry in 2022 with the passing of Barry Goldstein PSM. Executive Director of Energy Resources in South Australia for two decades, Barry passed after a lengthy illness. With his trademark saying: “We build trust and reduce uncertainty.” Barry left an indelible mark on the department and its approach to safe and sustainable regulation.
Dr Paul Heithersay
Chief Executive
Department for Energy and Mining
Contents
- Our strategic focus
- Our organisational structure
- Our Minister
- Our Executive team
- Legislation administered by the agency
- Other related agencies (within the Minister’s area/s of responsibility)
- Performance at a glance
- Agency specific objectives and performance
- Corporate performance summary
- Employment opportunity programs
- Agency performance management and development systems
- Work health, safety, and return to work programs
- Executive employment in the agency
- Risk and audit at a glance
- Fraud detected in the agency
- Strategies implemented to control and prevent fraud
- Public interest disclosure
Reporting required under any other act or regulation
Appendix: Audited financial statements 2022-23
Overview: about the agency
Our strategic focus
| Our Purpose | To support South Australia to responsibly grow through the success of its energy and mining sectors. |
| Our Vision | To be the world’s most transformative energy and mining department. |
| Our Values | We deliver the best outcomes for South Australians through a culture that is diverse, professional, accountable, respectful, and committed to safety. We demonstrate personal and professional leadership and value recognition as leaders in our field. We engage meaningfully to build a successful, sustainable future for all South Australians. |
| Our functions, objectives, and deliverables |
Ensure all South Australians feel the benefits of the state’s economic transformation.
Increase the wellbeing of South Australian households through empowering consumers and facilitating a low-cost energy transition. Guide growth and competitiveness of energy development opportunities that will lead to access to low-cost, reliable energy to underpin business growth. Design and enforce effective and efficient regulation using a one-window approach to co-regulation for mining, oil and gas, extractives, electricity, gas, plumbing and gas fitting. Support the transformation of the economy toward a net zero-carbon future, while improving the competitiveness of industry. Generate pre-competitive geoscience and innovative data programs that lead to discoveries and facilitate their transition into projects. Support royalty growth, job creation and business opportunities that contribute to the overall wellbeing of South Australians. |
Our organisational structure
Changes to the agency
During 2022-23, through a machinery of government change, the department transferred some of its hydrogen industry development functions to the Office of Hydrogen Power South Australia (OHPSA).
Our Minister
Tom has been the Member of Parliament for the seat of West Torrens since 1997 and is currently Minister for Infrastructure and Transport, Minister for Energy and Mining and the Leader of Government Business in the House of Assembly.
Tom previously held ministerial appointments for Transport and Infrastructure between 2013 and 2014 and Mineral Resources and Energy between 2011 and 2018. He was also responsible for these portfolios in the Shadow Ministry between 2018 and 2022.
Our Executive team
Dr Paul Heithersay, Chief Executive of the Department for Energy and Mining, joined the South Australian public service in 2002 where he has held several senior executive roles. He was awarded the Public Service Medal in 2012 for his outstanding public service to the growth and development of the mineral resources sector. Before joining the public service, Paul spent more than 20 years in the resources industry in Australia, Southeast Asia and China. In 2013 Paul was awarded the prestigious Legend in Mining award for his role in guiding South Australia’s transformation into a major destination for investment in mineral resources and energy.
Benjamin Zammit, Acting Executive Director, Mineral Resources, leads the team responsible for managing the state’s exploration, quarrying and mining assets through best practice regulation and compliance monitoring. The Mineral Resources Division is also responsible for the management and growth of South Australia’s geological information and data through the generation and testing of new geological ideas and models. Prior to undertaking this role Benjamin held a number of positions across 16 years in government, including Director of Mineral Exploration, Senior Advisor and Senior Case Manager, ensuring the responsible delivery of exploration and mining projects in South Australia. Benjamin has a background in environmental science and a passion for regulatory operations and good practice resource development.
Julianne Cirson, Director Corporate Services, leads a multidisciplinary team that provides high quality advice and delivers business services to support the department achieve its strategic and operational objectives. With a focus on modernising service delivery systems, driving cultural change, building organisational capability, managing resources and corporate governance, the team works in partnership across the department to provide responsive and customer-focused services. Julianne has a degree in accounting and is a graduate of the Australian Institute of Company Directors. She has worked in various South Australian government corporate services leadership roles.
Vince Duffy, Executive Director, Energy and Technical Regulation, heads a team at the forefront of leading and developing responses to the many challenges faced by the state during the ongoing transition in the National Energy Market. Vince's team is also home to the Office of the Technical Regulator, which plays an essential role in maintaining safety in the electrical, plumbing and gas industries. Vince holds a Bachelor of Economics and has vast experience in energy market programs.
Nick Panagopoulos, Acting Executive Director, Energy Resources leads the team responsible for managing South Australia’s petroleum, geothermal and gas storage assets through world class regulation and compliance monitoring. The division is also focused on helping the state’s transition to modern energy through strategies to facilitate carbon capture and storage technologies, natural hydrogen exploration and hydrogen generation, storage, and transmission. Nick joined the department in April 2013 as the Director Resource Royalties. Before that, Nick spent 13 years working in the property industry, based in Sydney. He was the Chief Risk Officer for the GPT Group, one of Australia’s largest diversified property groups and a top 50 ASX listed company from 2005 until 2012 and before that, worked as the Asia Pacific Regional Risk Manager for Lend Lease.
Nick Smith, Executive Director, Growth and Low Carbon, is responsible for major project development and delivery and the development of low carbon industries, providing opportunities to new and existing suppliers while supporting the creation of new and sustainable jobs. Key initiatives include the Steel Task Force, transformations of Port Pirie, Mintabie and Leigh Creek, Home Battery Scheme, Grid Scale Storage Fund, South Australia’s Virtual Power Plant, Renewable Technology Fund and development of the Hydrogen and Electric Vehicle action plans. Nick is the Vice President of the International Association
for Hydrogen Safety and a member of the Future Fuels Cooperative Research Centre’s Research Advisory Committee. Before joining government in 2014, Nick held senior commercial and operational roles, predominantly in the LPG and construction materials industries. Nick holds a Master of Business Administration, is a graduate of the Australian Institute of Company Directors and a Fellow of the Australian Institute of Energy.
Rebecca Knights, Executive Director, Energy Strategy provides leadership on priority energy issues for the innovative development of strategies and responses which incentivise and contribute to the responsible transition of our energy sector. Prior to joining the department, Rebecca provided upstream oil and gas advice across the globe supporting investment attraction and the responsible implementation of projects. Rebecca holds a Bachelor of Law and has extensive experience in energy markets.
Legislation administered by the agency
Australian Energy Market Commission Establishment Act 2004
Broken Hill Proprietary Company’s Indenture Act 1937
Cooper Basin (Ratification) Act 1975
Electricity Act 1996
Electricity Trust of South Australia (Torrens Island Power Station) Act 1962
Energy Products (Safety and Efficiency) Act 2000
Gas Act 1997
Mines and Works Inspection Act 1920
Mining Act 1971
National Electricity (South Australia) Act 1996
National Energy Retail Law (South Australia) Act 2011
National Gas (South Australia) Act 2008
Natural Gas Authority Act 1967
Offshore Minerals Act 2000
Opal Mining Act 1995
Petroleum and Geothermal Energy Act 2000
Petroleum (Submerged Lands) Act 1982
Petroleum Products Regulation Act 1995
Port Pirie Smelting Facility (Lead-In-Air Concentrations) Act 2013
Roxby Downs Indenture Ratification Act 1982
Stony Point (Liquids Project) Ratification Act 1981
Whyalla Steelworks Act 1958
Other related agencies (within the Minister’s area/s of responsibility)
The Office of Hydrogen Power South Australia is an attached office to the department.
The agency’s performance
Performance at a glance
The Department for Energy and Mining continued to make strides towards achieving its vision of becoming the world’s most transformative energy and mining department. This progress has taken place amid significant challenges in 2022-23 including global cost-of-living pressures, a national energy crisis and natural disasters including the worst River Murray floods since the 1950s.
With the goals of supporting the government transition of the economy to a net zero future, the department continued to develop synergies between the state’s resources wealth, its renewable energy assets, and its reputation as a global leader in policy development. In recognising that South Australia hosts minerals and fuels essential to the successful transition of our trading partners to a decarbonised world, legislative and policy frameworks have been reviewed and stakeholders consulted, to ensure sustainable economic development benefits all South Australians.
The result of this review has been to design and update legislation that aligns with the government’s economic priorities, enables its response to the climate change emergency while building on our reputation for one-window approach to co- regulation.
The department has also built on the foundation of its lean review in 2022-23 to streamline application and assessment processes to identify opportunities for greater digitisation of our interactions with proponents.
As part of the government’s election commitments, the department has continued to work with the Australian Government to roll out its community battery and solar banks program, which has already identified Edwardstown and Magill as potential pilot sites.
In collaboration with the Mineral Exploration Cooperative Research Centre, the Geological Survey of South Australia undertook works in the Delamarian region to advance the National Drilling Initiative. This successful program has delivered new data into this prospective part of the state and the use of the innovative coiled tubing drill rig has contributed to its further commercialisation and technology testing.
Since the commencement of new mining regulations in January 2021, the department has continued to improve regulatory outcomes through the updating of regulatory policy. Guidance has been provided to support new regulations, including the implementation of a scoping framework to build industry, community and government clarity on environmental and social matters, and the information required to understand the assessment of developing projects.
As part of its commitment to streamline regulatory processes and improve efficiency, the department commenced the implementation of the Mineral and Exploration Regulation System - a contemporary digital regulatory platform and outward facing system, including an online industry portal.
Agency specific objectives and performance
| Agency objectives | Indicators | Performance |
|---|---|---|
|
Generate precompetitive geoscience and implement innovative data analysis that led to new discoveries |
Increase exploration and resource investment to support job creation, economic growth and royalties for South Australia. |
$2.5 million invested in the National Drilling Initiative in previously unexplored acreage, resulted in three times the exploration investment. $150,000 invested over five years to support the formation of Industrial Transformation Training Centre (ITTC) for Critical Minerals to address the skills shortage across the full value chain in critical minerals, including upskilling for industry-based geoscientists, metallurgists, and mining/minerals engineers in the latest conceptual, data science and technological advances. The Geological Survey of South Australia’s (GSSA) advancement into data science driven exploration by providing publicly available precompetitive geoscience data to industry via its SARIG platform, provides the opportunity for discoveries to be accelerated. For example, a machine learning approach has been used by one prominent explorer in South Australia where they applied geochemical fingerprinting criteria to over 2.3 million geochemical samples via SARIG with the aim of identifying exploration near-misses. An example of this is the Prominent Hill discovery which was missed twice by less than 100 metres. The company combined geophysical fingerprinting with a depth to basement model and other pre-competitive data that is provided by GSSA, to develop a data-driven map of potential exploration targets. The Government South Australia geoscience databases were ranked as number one in the Fraser Institute International ranking survey. |
|
Encourage the sustainable growth of energy, minerals, petroleum and associated services and value chain industries for local and export markets. |
Grow the future economy and lead Australia’s transition to a zero-carbon future. |
South Australia’s reported energy and mining international exports increased by more than 30 per cent to $4.6 billion in 2022-23, supported by strong growth in refined copper and iron ore exports. The department is delivering a ‘one window to government’ licencing and regulatory framework to support the sustainable expansion of the hydrogen and renewable energy sectors, manage impacts and deliver benefits for all South Australians. In 2022-23: - two South Australian Aboriginal Renewable Energy Forums were held. - extensive public consultation on an Issues Paper and a draft Hydrogen and Renewable Energy Bill was undertaken. - new mapping to support the identification of potential release areas under the proposed Act was invested in. The department has advanced several initiatives to accelerate electric vehicle ownership and attract a greater variety of affordable makes and models to South Australia, including: - partnering with the RAA to construct the state’s first electric vehicle charging network of more than 500 charging stations, at 140 sites in 52 locations. - supporting nine electric vehicle smart charging trials to demonstrate how charging can be integrated into the grid. - continuing the EV Fleet Pledge program to drive the transition to electric vehicles for commercial and government fleets. The department developed the Green Paper on South Australia’s energy transition, released for consultation on 29 June 2023 by the Hon Tom Koutsantonis MP, Minister for Energy and Mining. Stakeholder feedback on the Green Paper will contribute to the development of a White Paper on South Australia’s energy transition in 2023-24. |
|
Deliver and enforce effective, efficient, transparent regulation |
Provide regulatory frameworks that deliver sustainable development and service standards within technical, safety, social and environmental expectations. |
The department has used existing and new regulatory frameworks to ensure the safety of gas, plumbing, water, wastewater, and electrical installations and infrastructure. This is accomplished using a mixture of proactive education and compliance enforcement and reactive incident investigation and management. The Office of the Technical Regulator worked with and presented to the Metropolitan Fire Service and South Australia Police to improve their approach to electrical safety, reducing the risk of emergency services suffering electric shock. The Office of the Technical Regulator is proud in maintaining strong and productive working relationships with plumbers across the state. One of the key factors contributing to this success has been our commitment to providing regular and informative updates on the latest developments regarding the Australian Standards and the Plumbing Code of Australia. Through consistent communication and engagement, we have ensured that plumbers are well-informed about the evolving regulations and industry best practices. The new Gas Installation Standard was published in September 2022. The Office of the Technical Regulator has been working extensively with the gas industry to promote awareness and education of the new requirements, to ensure they keep pace with these design innovations on gas installations, consumer product developments, new industry practices and appliance manufacturer requirements. The department was involved in various activities connected to the development of renewable gases in South Australia. This included supporting the expansion of Hyp SA, blending five per cent hydrogen into natural gas networks for 3750 customers, research projects with the Future Fuels CRC and the regulatory working group with South Australian regulatory agencies to facilitate the development of the hydrogen industry along with a proposal to Standard Australia to facilitate injection of biomethane in natural gas networks. New regulations designed to aid the integration of distributed renewable generation and other energy resources utilising cutting edge technology, enabled work towards the 1 July 2023 commencement of dynamic export requirements. These will allow utilisation of more energy from rooftop solar systems, while ensuring the safe and reliable operation of the greater power system. The Mineral Resources Division completed 381 inspections across mining and exploration tenements. A total of 82 mining assessments were completed with 56 approved while 266 exploration assessments were completed with 196 approved. |
|
Increase the wellbeing of households and support the competitiveness of businesses through actions to ensure sustained economic growth. |
Provide a secure, reliable energy system with lower energy prices for all South Australians. |
The department has secured further expansion of the South Australia Virtual Power Plant to deliver increased savings on electricity to more than 7,000 low income and vulnerable South Australian households and partnered with the Australian Government on the Community Battery for Household Solar initiative. The department has overseen the commissioning of Virtual Machine Mode at Hornsdale Power Reserve, demonstrating for the first time anywhere in the world that grid scale batteries can deliver inertia services comparable to traditional synchronous machines, instantaneously contributing around 15 per cent of the predicted shortfall in the South Australia’s network and ensuring ongoing stability of supply households and businesses. |
Corporate performance summary
The Department for Energy and Mining continues to implement its vision to be the most transformative energy and mining government department. Intrinsic to the success of the department is a workplace culture that embraces diversity and provides a business environment that allows agency staff to achieve their full potential.
The Department for Energy and Mining regularly recognises and rewards individual and team achievements that align with the agency’s strategic directions and high-performance enablers. The department’s annual Excellence Awards recognise outstanding performance by both individuals and teams.
The ongoing contribution of staff working groups give department employees a voice on developing strategies to improve inclusion, as well as our Lived Experience series and Reconciliation Action Plan that reflect the department’s commitment to reconciliation and the support for workplace diversity. This approach includes a regular rotation of two diversity representatives on the Executive Leadership Team.
During the year, the department began the process of updating our Strategic Directions to align with the Vision, Objectives and Three Missions set out in the South Australian Economic Statement. The department has also embarked on the Future State project to be finalised in 2023-24 to adapt its organisational structure to better deliver its objectives and priorities in line with the public’s expectations of an efficient and transparent public service.
The department continues to embrace flexible working by offering staff the choice in managing their balance between working from the office and home as the world continues to transition from the restrictions required to combat the global pandemic.
As a key enabler to deliver improved efficiency of operations and customer experience, we continue progressing projects in the Digital Transformation program, including our online reporting and analytics capability.
Employment opportunity programs
| Program name | Performance |
|---|---|
|
University placements and undergraduate students |
The department hosted students (school and university) for the placement component of their course – primarily in the fields of engineering, geology and economics. |
| Graduates |
The department recruited graduates through either individual vacancies or its inaugural graduate program launched this year. Three graduates are currently employed in our Energy and Technical Regulation, Mineral Resources and Energy Resources divisions. |
Agency performance management and development systems
| Performance management and development system | Performance |
|---|---|
|
A performance management and development framework within the agency supports employees and leaders to create performance development plans and have regular performance conversations. This online system records all discussions, and the department undertakes an audit on completion rates at appropriate periods. |
Staff participate in two formal performance management and development plan conversations each year. The department’s performance management and development framework uses the iGROW online system. During the year, the department identified a system reporting issue which resulted in potential under reporting of participation. Rectification of this is progressing. The department conducted a review to determine the effectiveness of the PDP process that highlighted the framework is not necessarily conducive to ongoing meaningful conversations throughout the year. The department has scheduled recommendations for improvement that should improve the quality of conversations and participation. As of 30 June 2023, participation was 52 per cent, a slight increase from 48 per cent as of 31 December 2022. Please note the data includes all active employees with more than six months service. |
Work health, safety, and return to work programs
| Program name | Performance |
|---|---|
|
Wellbeing initiatives |
Numerous initiatives support employee wellbeing in the areas of career, social, financial, physical, community and mental. These include: Flu Vaccination Program The department offered all staff flu vaccinations at onsite clinics or through pharmacy vouchers. Onsite vaccinations totalled 90 while 88 vouchers were issued. Flu vaccination uptake remained consistent with previous years. Corporate Cup Annual staff sponsorship in the Corporate Cup recognises that physical activity promotes health and wellbeing while building positive behaviour and strong team culture. Seated Massage 15-minute onsite massage offered to all staff assisted with mental and physical stress. Flexible Working Working from home agreements were extended by 12 months from March 2023. |
|
Wellbeing Survey – South Australian Health and Medical Research Institute (SAHMRI) |
The department measured mental health and wellbeing of staff in July 2022 using SAHMRI’s Be Well Co Be Well Tracker measurement platform. This is the second measurement the department has conducted, with the first undertaken in 2020. In total 126 staff completed the survey. |
|
Employee Assistance Program |
Staff have access to free, confidential counselling and support services through offsite Employee Assistance Program appointments or weekly onsite (“walk and talk”) visits from counsellors. |
|
Mental Health First Aid Training |
An Expression of Interest (EOI) went to all staff offering the opportunity to become an accredited Mental Health First Aid officer. As a result, the department added a further seven staff to its Mental Health First Aid officer cohort. |
|
Work Health Safety and Injury Management Framework |
The Work Health Safety and Injury Management Framework is a set of policies, procedures and guides that strengthen our ability to improve wellbeing and safety. The Chief Executive Safety Commitment (WHSIM Policy) supports this framework. In 2022-23, the department enhanced the framework to ensure it continued to reflect the agencies risk profile. Additional documents added to the framework included: * Asbestos Management Guide * Chemical Management Guide * Cultural Safety Guide * Hazardous Manual Tasks and Ergonomics Guide * WHS&IM Planning Policy * Working Alone, in Isolation or Remote Guide |
| Workplace injury claims | 2022-23 | 2021-22 | % Change (+ / -) |
|---|---|---|---|
| Total new workplace injury claims | 0 | 1 | -100% |
| Fatalities | 0 | 0 | N/A |
| Seriously injured workers* | 0 | 0 | N/A |
|
Significant injuries (where lost time exceeds a working week, expressed as frequency rate per 1000 FTE) | 0 | 0 | N/A |
*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5)
| Work health and safety regulations | 2022-23 | 2021-22 | % Change (+ / -) |
|---|---|---|---|
|
Number of notifiable incidents (Work Health and Safety Act 2012, Part 3) | 1 | 0 | N/A |
|
Number of provisional improvement, improvement, and prohibition notices (Work Health and Safety Act 2012 Sections 90, 191 and 195) | 3 | 0 | N/A |
| Return to work costs** | 2022-23 | 2021-22 | % Change (+ / -) |
|---|---|---|---|
|
Total gross workers compensation expenditure ($) | $64,047 | $89,328 | -28% |
| Income support payments – gross ($) | $50,810 | $42,885 | +18% |
**before third-party recovery
Data for previous years is available at: 2021-2022 DEM Annual Report
Executive employment in the agency
| Executive classification | Number of executives |
|---|---|
| EXECF | 1 |
| SAES1 | 14 |
| SAES2 | 4 |
Data for previous years is available at: 2021-2022 DEM Annual Report.
The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.
Financial performance
Financial performance at a glance
The following is a brief summary of the overall financial position of the agency. Full audited financial statements for 2022-2023 are attached to this report.
| Statement of Comprehensive Income | 2022-23 Revised Budget $000s | 2022-23 Actual $000s | Variation $000s | 2021-22 Actual $000s |
|---|---|---|---|---|
| Total Income | 88,570 | 98,099 | (9,529) | 152,377 |
| Total Expenses | 194,402 | 183,413 | 10,989 | 143,386 |
| Net Result | (105,832) | (85,314) | (20,518) | 8,991 |
| Total Comprehensive Result | (105,832) | (85,314) | (20,518) | 8,991 |
Higher than budgeted income was primarily due to additional regulatory fees relating to mineral leases and exploration of $2.8 million and surplus appropriation of $4.5 million in readiness to transfer to the Office of Hydrogen Power South Australia (OHPSA) as a result of Machinery of Government changes.
Lower than budgeted expenditure was primarily due to changes in scheduled grant payments between years of $10.8 million. Further details on agency expenditure are disclosed in the full audited financial statements that are attached to this report.
| Statement of Financial Position | 2022-23 Budget $000s | 2022-23 Actual $000s | Variation $000s | 2021-22 Actual $000s |
|---|---|---|---|---|
| Current assets | 30,521 | 61,589 | (31,068) | 142,383 |
| Non-current assets | 99,224 | 63,789 | 35,435 | 73,110 |
| Total assets | 129,745 | 125,378 | 4,367 | 215,493 |
| Current liabilities | 44,350 | 39,922 | 4,428 | 44,447 |
| Non-current liabilities | 9,238 | 11,748 | (2,510) | 12,249 |
| Total liabilities | 53,588 | 51,670 | 1,918 | 56,696 |
| Net assets | 76,157 | 73,708 | (2,449) | 158,797 |
| Equity | 76,157 | 73,708 | (2,449) | 158,797 |
Higher than budgeted current assets is primarily due to an increase in cash due to timing changes on projects during the year. The changes to timing on investing projects has resulted in lower non-current assets.
Consultants’ disclosure
The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.
Consultancies with a contract value below $10,000 each
| Consultancies | Purpose | $ Actual payment |
|---|---|---|
|
All consultancies below $10,000 each - combined | Various | 22,628 |
Consultancies with a contract value above $10,000 each
| Consultancies | Purpose | $ Actual payment |
|---|---|---|
| Acil Allen Consulting |
Economic Evaluation of South Australian Geological Survey Services. | 84,091 |
| Acil Allen Consulting |
Review of Cost Recovery for Petroleum and Mineral Regulation. | 50,379 |
| BDO Services Pty Ltd |
Professional services in relation to the delivery of SA Energy and Mining Satellite Accounts. | 20,000 |
|
Bee Squared Consultants |
Functional review of Mineral Resources Division. | 16,000 |
|
Brubrior Investments Pty Ltd |
Consulting services in respect of Steel Taskforce. | 140,000 |
|
Endgame Economics Pty Ltd |
Economic Energy Markets Consultant Panel. | 139,295 |
|
ERM Australia Pty Ltd |
Provide two discrete work packages to assist with integrating a scoping study into the assessment processes for mining tenements. | 138,163 |
|
Fenix Performance Solutions |
Technical, commercial, and financial advice and due diligence services for the Whyalla Steel Works Transformation. | 4,975 |
|
Frontier Economics Pty Ltd |
Economic Energy Markets Consultant Panel | 325,055 |
| Fuller |
States Energy Transition Policy Campaign and Hydrogen Communications Project. | 17,709 |
|
Grasso Carmine Anthony |
The project is self-contained and involves Carmine researching shallow Eromanga Basin plays (for example, Coorikiana Sandstone and Mackunda Formation) and describing them using current templates for the DEM website. | 40,000 |
| Honjo Pty Ltd |
Provision of project management services to support the State-Owned Emergency Power Plant Project. | 48,875 |
|
IES Advisory Services Pty Ltd |
Economic Energy Markets Consultant Panel. | 198,440 |
|
Jane Munday Consulting |
Research, design and write a high-level social impact assessment for major projects in South Australia that aligns with statutory planning and environmental requirements. | 15,000 |
|
JBS&G Australia Pty Ltd | Port Pirie communication framework. | 13,423 |
| KPMG Australia |
Economic Energy Markets Consultant Panel. | 58,250 |
| KPMG Australia |
Port Pirie Partnership Program - Transition Planning (TLAP). | 193,688 |
|
KSJ Consulting Service Pty Ltd |
Consultation forum to discuss the Hydrogen and Renewable Energy Act. | 17,182 |
|
KSJ Consulting Services Pty Ltd |
Cultural Capability Audit of DEM, outlining recommendations for improvement. | 107,040 |
|
McGregor Tan Research |
Market research into: Energy SA - Role of Government. | 39,900 |
| Paul Case |
Strategic advice and services provided as required while performing duties as Chair of both the Mintabie Oversight Committee and Leigh Creek Transformation Task Force. | 88,338 |
| PwC |
Provision of expert advice on the right to negotiation (RTN) process under the Native Title Act 1993 to inform the expansion of the Commonwealth RTN scheme in South Australia. | 62,678 |
| PwC |
Conduct economic assessment of Woomera Prohibited Area (WPA) and submit a final report to Defence using a desktop study of secondary data and cover minerals, petroleum, water resources and their future potential in driving economic outcomes for SA. | 45,000 |
| PwC |
Provision of financial advisory and due diligence services, economic impact and benefit evaluation, business case development and project and program assessment, for the Whyalla Steel Works Transformation. | 88,068 |
| Robert I Thomas |
To mitigate potential environmental and community project risks and adverse outcomes on a range of projects within the Growth and Low Carbon Division. | 152,223 |
|
Rosslyn Cox and Mark Williams Consulting Pty Ltd |
Gender inclusion review of documents, interviews, survey, focus groups, workshop, meetings presentation and provide written report including recommendations. | 8,200 |
|
SA Native Title Services Ltd | SA Aboriginal Energy Forum. | 35,424 |
|
Source Geoscience Pty Ltd |
Technical support for Otway Basin Petroleum systems analysis and Modelling Studies. | 50,000 |
| Suthwyn Inc |
Provide independent technical and expert advice on the not-for-profit operating model, market validation, governance structure, business cost model, operational protocols, and regulatory model. | 17,402 |
|
Umwelt (Australia) Pty Ltd |
Provision of scoping resources for the delivery of user testing workshop. | 65,680 |
|
University Of Adelaide |
Economic study for the sustainable development of Critical Minerals sector and value chain in South Australia. | 27,650 |
| Wellsafe Pty Ltd |
Obtain independent expert advice on the execution of a provided scope of works and provide any additional independent expert advice related to the proposed scope of works. | 15,170 |
| Total | 2,323,298 |
Data for previous years is available at: 2021-2022 DEM Annual Report.
See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.
Contractors’ disclosure
The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.
Contractors with a contract value below $10,000
| Contractors | Purpose | $ Actual payment |
|---|---|---|
|
All contractors below $10,000 each - combined | Various | 113,904 |
Contractors with a contract value above $10,000 each
| Contractors | Purpose | $ Actual payment |
|---|---|---|
| Andrew Hill Investigations |
Investigate confidential employee matter | 11,383 |
|
Antakirinja Matu- Yankunytjatjara Aboriginal Corporation RNTBC |
Supply of gravity surveys within the Gawler region of South Australia | 20,770 |
| BDO Services Pty Ltd |
Develop an economics dashboard in Microsoft's PowerBI platform | 87,613 |
| BDO Services Pty Ltd |
Preparation of Energy and Mining satellite account update | 20,000 |
| Bee Squared Consultants |
Document Improvement and Prioritisation Project | 35,700 |
|
Cactus Wellhead Australia |
Provide wellhead annular pressure measurements on three wells and function, also service, grease and pressure test wellhead | 38,948 |
|
CDM Smith Australia Pty Ltd |
Engage hydrogeological expertise to prepare a strategic framework to improve the knowledge of groundwater resources and utilisation in the Far North region of South Australia | 147,352 |
|
Challenger Geological Services |
Temporary agency staff services | 54,406 |
|
Chubb Fire & Security Main Account |
Provision of professional services to replace the existing Fire and Mechanical services for the Central Powerhouse/Station | 11,518 |
|
Converge International Pty Ltd |
On-site employee counselling services | 45,933 |
| Cowell Electric Supply |
Remote Area Energy Supply scheme – provision of electricity generation, distribution and retail services | 5,183,528 |
|
Curtin University of Technology |
Delivery of up to 30 Zircon Uranium – lead (U-Pb) Sensitive High Resolution Ion Microprobe (SHRIMP) geochronological age determinations, and analysis of apatite samples using the multi collector-inductively coupled plasma mass spectrometer (MC-ICPMS) and delivery of sample specific geochronological report on these analyses | 47,150 |
| Daylight Breaks Pty Ltd |
Delivery of 14 videos to help promote Gawler Phase 2 project | 18,950 |
|
DBD Environmental Pty Ltd |
Groundwater monitoring in St Kilda | 11,865 |
| Design Matters National |
Net Zero Energy Ready Homes Training Package | 21,080 |
| Escient Pty Ltd |
Mine Application Process Change Strategy and Approach | 48,950 |
|
Fawcett Mine Rehabilitation |
Christies Sand Pit PEPR Assessment and Arumpo Bentonite Exploration PEPR Assessment | 19,695 |
| Galpins |
Support in the delivery of risk management policy and framework; revised strategic risk register; revised risk appetite statement; revised risk consequence matrix; Risk and Audit Committee- Terms of Reference; delivery of education and training to upskill employees and embed a risk management culture | 28,268 |
|
Geomorph Energy Consulting |
Utilise specialised seismic interpretations software and seismic lines already interpreted to finalise maps of key Otway Basin formations which will be used to develop a basin model | 48,000 |
|
Hannan Duck & Partners Pty Ltd |
IT Security Advisor secondment to assist with the provision of information security and cyber security advice and maintain appropriate levels of information security controls within the department | 39,686 |
|
Hannan Duck & Partners Pty Ltd |
Unified Emergency Management and Business Resilience Model | 30,000 |
|
Hays Specialist Recruitment |
Temporary agency staff services | 237,317 |
|
Hylogging Systems Pty Ltd |
Maintenance services for HyLoggerTM 3 machine | 44,880 |
| Ian Dixon Pty Ltd |
Independent facilitation for the South Australian Renewable Energy Forum held in Port Augusta | 61,853 |
| JTWO Solutions Pty Ltd |
Implementation of Seismic Data onto web portal within cloud environment | 32,727 |
| KPMG Australia |
Advisory services to assist the department to deliver a detailed organisational design reflecting the Future State Vision | 163,303 |
| KPMG Australia |
Future State Financial Analysis - Model Assistance | 49,856 |
| KPMG Australia |
Advisory services to assist the department with synthesising all known issues and constraints facing the department and reflect on the Future State Vision and structure for the department | 49,831 |
| Linking Futures Pty Ltd |
Conversion of the department’s Issues Paper "Hydrogen and Renewable Energy Act" and the accompanying "Summary" into Aboriginal community- appropriate language | 39,586 |
|
Money Mob Talkabout Limited |
Provision of an energy education program and community engagement around the introduction of smart meters in remote towns and Aboriginal communities under the Remote Area Energy Supplies scheme | 551,181 |
| OPM Consulting Pty Ltd |
Assist Geological Survey South Australia staff in the logistics planning, deployment, and collection of up to 21 passive-seismic instruments as part of Geoscience Australia's 2D Grid Survey | 35,467 |
| Randstad P/L |
Temporary agency staff services | 611,987 |
|
Recap Consultants Pty Ltd |
Authorised Officer/Regulatory Training Framework - development of overarching framework | 29,000 |
|
Samantha Wilkinson Human Resource Consulting |
Review the Strategic Direction, Enablers and High-Performance Behaviour Framework | 31,200 |
|
Secure Meters (Australia) Pty Ltd |
Smart meter services for the Remote Area Energy Supplies scheme | 129,979 |
| Selina Foat Creative |
Provision of desktop publishing, graphic design and printing Bulletin 57 | 11,910 |
| Sonnen Australia Pty Ltd |
Storage, packing and shipping of batteries for the Batteries for Bushfire Rebuilding initiative and deployment on government assets | 41,943 |
|
WSP Australia Pty Limited |
Provision of services relating to hosting, support and maintenance of the South Australia’s hydrogen online modelling tool | 26,100 |
| Total | 8,118,915 |
Data for previous years is available at: 2021-2022 DEM Annual Report.
The SA Tenders and Contracts website provides details of South Australian Government-awarded contracts for goods, services, and works. This website also provides details of across government contracts.
Risk management
Risk and audit at a glance
The former Risk and Performance Committee (a joint committee established with the Department for Industry, Innovation and Skills and the Department for Trade and Investment) was disbanded in December 2022. The role of the Risk and Performance Committee is to assist the agencies with oversight responsibilities for external financial reporting, internal control systems, risk management systems and
the internal and external audit functions.
In April 2023, a new Audit and Risk Committee was established, with a similar scope, to specifically focus on the Department for Energy and Mining and the attached Office of Hydrogen Power South Australia. Membership consists of both internal and external members and the committee is independently chaired. One of the first tasks of the committee was to improve both entities risk management
framework and management of strategic risks in alignment with the government’s commitments.
The Executive Leadership Team continue to undertake monthly reviews of the strategic risks to ensure the risks remained current and that treatment actions are implemented with the agreed timeframe.
Other key activities during the year focused on uplifting our protective and cyber security internal controls, review of procurement policies and procedures to align with the new Treasurer’s Instruction 18 – Procurement, embedding consistent risk management approach in key functions such as project management, corporate services and work health and safety.
Fraud detected in the agency
| Category/nature of fraud | Number of instances |
|---|---|
| Nil | 0 |
NB: Fraud reported includes actual and reasonably suspected incidents of fraud.
Strategies implemented to control and prevent fraud
The agency continued to take a risk-based approach to control and prevent instances of fraud. The control framework includes Fraud, Corruption, Misconduct and Maladministration policy and procedure.
Fraud control and prevention activities during the year included:
- Annual review of financial and human resource delegations.
- Review of purchase card transactions.
- Segregation of duties for approvals and payments.
- Continued monitoring of finance and project dashboard reporting.
- Regular review of key reconciliations performed by Finance and Shared Services SA (including payroll, cash, accounts payable and accounts receivable).
- Monthly monitoring of divisional actual and budget expenditure.
- Six monthly review of bank account signatories and authorised officers.
- Quarterly review of Basware users (including Financial Authorisations).
Data for previous years is available at: 2021-2022 DEM Annual Report
Public interest disclosure
Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:
0
Data for previous years is available at: 2021-2022 DEM Annual Report
Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.
Reporting required under any other act or regulation
| Act or Regulation | Requirement |
|---|---|
| Energy Products (Safety and Efficiency) Act 2000 |
Section 25—Annual report
(1) The Technical Regulator must, within three months after the end of each financial year, deliver to the Minister a report on the Technical Regulator's administration of this Act during that financial year. |
| Act or Regulation | Requirement |
|---|---|
| Electricity Act 1996 | Section 14—Annual report (1) The Technical Regulator must, within three months after the end of each financial year, deliver to the Minister a report on the Technical Regulator's operations under this Act during that financial year. |
| Act or Regulation | Requirement |
|---|---|
| Gas Act 1997 | Section 14—Annual report (1) The Technical Regulator must, within three months after the end of each financial year, deliver to the Minister a report on the Technical Regulator's operations during that financial year. |
| Act or Regulation | Requirement |
|---|---|
| The Water Industry Act 2012 | Section 13—Annual report (1) The Technical Regulator, within three months after the end of each financial year, must deliver to the Minister, a report on the Technical Regulator's operations during that financial year. |
Technical Regulator will present a report separately to the minister.
Public complaints
Number of public complaints reported
| Complaint categories | Sub-categories | Example | Number of Complaints 2022-23 |
|---|---|---|---|
| Professional behaviour | Staff attitude | Failure to demonstrate values such as empathy, respect, fairness, courtesy, extra mile; cultural competency | 0 |
| Professional behaviour | Staff competency | Failure to action service request; poorly informed decisions; incorrect or incomplete service provided | 0 |
| Professional behaviour | Staff knowledge | Lack of service specific knowledge; incomplete or out-of-date knowledge | 0 |
| Communication | Communication quality | Inadequate, delayed, or absent communication with customer | 1 |
| Communication | Confidentiality | Customer’s confidentiality or privacy not respected; information shared incorrectly | 2 |
| Service delivery | Systems/technology | System offline; inaccessible to customer; incorrect result/information provided; poor system design | 0 |
| Service delivery | Access to services | Service difficult to find; location poor; facilities/ environment poor standard; not accessible to customers with disabilities | 0 |
| Service delivery | Process | Processing error, incorrect process used; delay in processing application; process not customer responsive | 1 |
| Policy | Policy application | Incorrect policy interpretation, incorrect policy applied; conflicting policy advice given | 0 |
| Policy | Policy content | Policy content difficult to understand; policy unreasonable or disadvantages customer | 0 |
| Service quality | Information | Incorrect, incomplete, out-dated or inadequate information; not fit for purpose | 1 |
| Service quality | Access to information | Information difficult to understand, hard to find or difficult to use; not plain English | 0 |
| Service quality | Timeliness | Lack of staff punctuality; excessive waiting times (outside of service standard); timelines not met | 0 |
| Service quality | Safety | Maintenance; personal or family safety; duty of care not shown; poor security service/ premises; poor cleanliness | 0 |
| Service quality | Service responsiveness | Service design doesn’t meet customer needs; poor service fit with customer expectations | 0 |
| No case to answer | No case to answer | Third party; customer misunderstanding; redirected to another agency; insufficient information to investigate | 13 |
| Total | 18 |
Additional Metrics
| Additional Metrics | Total |
|---|---|
| Number of positive feedback comments | 17 |
| Number of negative feedback comments | 68 |
| Total number of feedback comments | 123 |
| % complaints resolved within policy timeframes | 100% |
Data for previous years is available at: 2021-2022 DEM Annual Report
Service Improvements
|
The department received positive feedback regarding ease of use following the launch of a consolidated and easier-to-use DEM website in May 2022.
The department improved management of the Complaint Management System by streamlining the allocation and review of complaint responses to help support a positive customer experience. Alternative external sources of assistance were suggested where appropriate, to help support a positive customer service experience where the agency was not able to resolve a complaint due to there being ‘no case to answer’. The department is finalising a review of complaints and feedback policy and procedure, reflecting on our internal processes, to consider further opportunities for service improvements. The department also conducted information sessions for new members of staff. |
Compliance Statement
| Department for Energy and Mining is compliant with Premier and Cabinet Circular 039 – complaint management in the South Australian public sector | Y |
| Department for Energy and Mining has communicated the content of PC 039 and the agency’s related complaints policies and procedures to employees. | Y |
