Future proofing South Australia

Advanced Modular Solutions (AMS)

RESA / AUSTMINE FEB 2016

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• Innovative, compact designs• Leading edge process and ICT driven• Technologically focussed

ADVANCED

• Integrated with logistics plan, • Standardised for lean manufacturing• Scalability, mobility

MODULAR

• Optimised for ‘Whole of Life’ business cost• Multi-market dimensional• Finance, & asset management

SOLUTIONS

WHAT IS AMS ?

3WHY CONSIDER AMS HERE IN SA?

TRADITIONAL MANUFACTURING

HERITAGEHIGH SKILL BASE

NEED GREATER EXPORT FOCUS

LEAN MANUFACTURING MINDSET

SUPPLY CHAIN UNDER STRESS

NORTHERN ECONOMIC PLAN4

AMS is now included in the Northern Economic Plan issued by the SA Government

CONCEPT STUDY OVERVIEW5

•Larger MEGA projects have slowed particularly in Australia•Australian ASX listed companies looking offshore•Increased certainty of capital costs and facility ramp up within schedule especially in a debt funded global project environment•Focus on driving innovation into projects and improving efficiencies•Companies considering short mine life opportunities•Logistics and locations remain a big challenge for new projects

Demand Side

•Modularisation exists and large modular yards are in play across Asia•Module yards not necessarily high end technology and no evidence of innovation was found

•Oil & Gas quite mature in business as usual modularisation•Logistics and planning are key to successful modularisation

Supply Side

•Gaps exist between current supply and demand of complex plants in remote areas•Opportunities: Introduce standardisation into AMS and design for full asset lifecycle, Utilise lean manufacturing techniques, Establish an alliance frame work and CoE. Attract existing supply chain organisations as well as new business organisations and key individuals to South Australia.

SWOT

•South Australia is well placed to innovate and commercialise new AMS technology•South Australia looking to attract new Industry and business’ to establish here•Action Plan: Align clients, R&D, industry and government to accelerate innovation and commercialisation.

Local SA

PROPOSED TARGET MARKETS6

VISION7

Vision for an AMS industry alliance based in SA:

South Australia will become a global Centre of Excellence for AMS through an Industry led alliance that innovates, consults designs, produces, supplies, installs and maintains ‘Modular Solutions’ for its clients throughout the full asset lifecycle.

Key focus and mission for AMS technology: AMS technology will enable a

reduction of a proposed project’s capital cost, operating costs and time to market that could swing the balance of risk and opportunity in favour of the business case to proceed with new projects.

KEY RECOMMENDATIONS

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The proposed pathway forward is to;

Establish an Alliance model of Industry, Technology, Research & Development and Government agency partners that delivers the AMS vision supported by a global Centre of Excellence located in South Australia that:

Develops key AMS technologies and innovates to maximise the value of the AMS concept,

Engages with Industries including Resources, Defence, Energy, Oil and Gas, Renewables and enables commercialisation of AMS opportunities (initially target pilot projects), and

Identifies and applies for relevant funding both from State and Federal government and industry. (Also membership based funding)

Has a long term export focus in ‘niche’ market segments

PLANNED AMS ROADMAP – PHASE 1 2016 9

GENERIC AMS PILOT PROJECT SET UP10

11EXAMPLE – COPPER CONCENTRATOR

• BIM designed Compact Modules – smart structures• Sub Module Assembly on Site• Manufactured Structures, Mech and Elec• Efficient Component change Out• Automation and remote control• Optimised process control systems• Power and process efficient• Scalable Capacity through > modules• Logistics Solutions

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CURRENT STATUS AND NEXT STEPS12

Demonstrate the feasibility of AMS ConceptDevelop concepts for the pilot project

opportunities to compare with the conventional model

Secure additional pilot projects opportunities to commercialise AMS

Concept

Build pipeline of AMS opportunities and seek funding arrangements

Establish AMS Alliance and Centre of Excellence.

AMS ForumInform MIPO & Industry

specialists on the progress to date and seek feedback.

Collect innovative ideas through collaboration

Identify and attract partners and specialists.

Drive innovation into Pilot Projects

Confirm the way forward with State Government

Pursuing Pilot Project OpportunitiesPresented at IMARC

Concept design for Pilot Project 1 (resources sector) is ready to

commence.

Pilot Project 2 (resources sector) and 3 (renewable energy sector) are in

pursuit.

Financial co-contribution is being applied through the State

Government

Complete the Concept StudyReport Delivered to DSD in Oct 2015 Follow-up interviews with the resources companies to inform them of the

findings & roadmap and seek feedback.

BENEFITS FOR PACE SUPPLY CHAIN INITIATIVE

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Allows existing SA supply chain to expand Nationally and Internationally

Has a strong longer term export focus

Will encourage companies to develop and improve capabilities

AMS will attract global OEM’s and Technology firms to Adelaide

Alliance model will allow for ‘open’ collaboration amongst competitors

AMS can operate across many markets

SUMMARY

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AMS recognised in Northern Economic Development Plan

AMS will operate under an ‘Alliance’ framework and CoE

AMS is about bringing the local supply chain along for the ride

International OEM’s need to be attracted to the state

Not constrained to any particular markets

Lifecycle focus – design, build, operate, maintain, optimise, relocate