**Check against delivery
Good afternoon ladies and gentlemen.
As Minister for Tourism, I welcome our visitors to Canberra.
Our nation’s capital is a great city to experience fine galleries, national institutions and a great outdoor lifestyle.
And before I talk about resources, can I underline the growing importance of Chinese visitors for Australian tourism.
The Chinese travel market is worth $2.8 billion to Australia and is forecast to increase at an average annual rate of 10.2 per cent to $5.5 billion in 2017.
Today the Prime Minister and I announced a $30 million boost for tourism from China. Our investment will include marketing partnerships with major airlines; the launch of the Tourism Australia “There’s Nothing Like Australia” campaign in China; strengthening the China Approved Destination Status Scheme and a forum on Chinese tourism to be held in Cairns in the near future.
This important announcement demonstrates the value we place in the Chinese tourism market and out desire to grow Chinese tourism to Australia.
Australia-China business
And now to resources and energy.
They are the backbone of the trade relationship.
And hardly a month goes by when there isn’t a major agreement between our two countries.
Recently in Beijing, I attended the signing ceremony for the world’s first agreement for LNG from coal seam gas.
More than three million tonnes of LNG a year will flow from Queensland to China.
This is the biggest single company-to-company LNG contract in Australia’s history.
It also makes Australia a world leader in using coal seam gas for LNG exports.
To illustrate the potential, Queensland has enough coal seam gas reserves to power the whole of that State, which has a population of just over 4.3 million, for more than one-thousand years.
At the same time, China bought an interest in Queensland’s Surat Basin, and became an equity partner in one of the two LNG trains at Gladstone.
There have been other landmark agreements too -
Before my visit to Beijing, I welcomed the merger between Yanzhou Coal Mining Limited and Felix Resources.
As one of the biggest corporate acquisitions in Australia in recent times, it shows how open we are to foreign investment.
In fact, in less than three years the Australian Government has approved Chinese investment worth around $60 billion – most of it in the resources sector.
And in December, I saw the start of construction work on Australia’s largest ever resources project.
The $43 billion Gorgon project will supply gas to our trading partners across the region including China.
Let me map out the scale of the relationship:
- China is our largest market for mineral resources, accounting for one-third of our exports
- Nearly three-quarters of Australia’s $ AU 34.2 Billion iron ore exports go to China
- China is our principal export market for nickel, zinc and copper
- China is our second-largest source of investment, nearly all of it in the minerals sector
- And Australia accounts for nearly half of China’s imports of LNG and coal.
As a major supplier of energy resources, Australia is a natural partner for China.
It’s no surprise that two-way trade and investment actually grew during the global economic downturn.
And if the past six months are any guide, our trade relationship can look forward to a bright future.
Australia’s potential
Australia’s potential speaks volumes.
We have very substantial mineral deposits including:
- brown coal
- 10% of the world's black coal most of very high quality
- one third of the world's uranium
- 2 per cent of the world’s conventional gas which we aim to use as a foundation to make the world’s second largest exporter of LNG behind Qatar.
- And as I have already said huge reserves of coal seam gas.
Australia’s identified conventional gas resources have increased three-fold over 20 years.
And we are one of only three net energy-exporting members of the OECD.
More than ever, our trading partners are turning to Australia to support their energy security.
The first cargo from the Pluto LNG project is due next year, with Gorgon LNG coming on stream three years after that.
The conventional gas projects of Wheatstone, Browse and Ichthys are well-advanced with other projects such as Scarborough being developed. In Gladstone we have Gladstone LNG, Curtis LNG, Australia Pacific LNG and Curtis Island LNG. Prelude, Petrel/Tern and Sunrise are being looked at for floating LNG projects.
And it’s not just a question of having the natural resource reserves and the technological expertise to exploit them – Australia also offers its trading partners security of supply.
Australia has proven its credentials over time as a reliable trade partner.
In addition to energy security, yet another advantage of the burgeoning new LNG industry in Australia is the environmental benefits it offers as a cleaner-burning fuel.
By strengthening the transition to a low-emissions economy, LNG puts our region more firmly on the path to sustainable development.
I welcome China’s investment in LNG receiving terminals.
Three are in operation, four are being built and others are on the way.
We’re investing in Australia’s infrastructure too.
Hundreds of millions of dollars are committed to infrastructure projects in our mining states.
This investment will target bottlenecks that can hold up exports.
And nowhere is this more important than in Queensland’s coal supply chain.
To meet future demand, increasing our supply capacity is vital.
By doing so, we’ll strengthen Australia’s reputation as a trusted, efficient and reliable supplier of energy resources.
Memorandum of Understanding
Making the most of this great potential requires hard work behind the scenes.
That’s why Australia and China are engaged in a wide range of cooperative activities in the resources and energy sector.
The ink is barely dry on today’s memorandum of understanding on strengthening energy cooperation.
This signing acknowledges the solid basis for cooperation already formed between the Australian and Chinese Governments on energy and low emissions technologies.
It aims to enhance and extend this long term relationship, particularly in the oil and gas, coal and coal seam gas, renewable and low emissions energy and uranium sectors.
It will better position both our nations to successfully address the twin challenges of climate change and energy security.
Mutual benefit is the guiding principle, reflecting the desire by both parties to enhance our long term energy partnership.
The memorandum of understanding goes hand-in-hand with existing cooperation:
The Australia-China Natural Gas Technology Partnership Fund is one such example.
Thanks to the Fund, fifty people from China have completed training programs in natural gas in Perth.
Meanwhile, more than six thousand students have completed training at the Fund’s Chinese Training Centre.
Elsewhere, the Memorandum of Understanding on Coal Mine Safety is now in its fourth year.
This program aims to cut the number of deaths in mines.
A key component of the MoU is the establishment of a demonstration mine in China to showcase world-leading practices in safety-related technology and emergency response systems.
The best training, technology, management and equipment are vital for efficiency, profitability and safety.
When it comes to coal mine safety, Australian technology services companies have world-class expertise.
The Australia-China Joint Coordination Group on Clean Coal Technology is another important step.
The Group will meet next month in the Australian pavilion at the Shanghai Expo.
Among the key themes, a seminar will discuss ways to make brown coal more efficient for power generation; and the parties will discuss partnership opportunities as they relate to carbon capture and storage.
The above cooperation is underpinned by the annual Australia-China Dialogue for Resources Cooperation which promotes ongoing resources and energy cooperation between our nations.
Those taking part – from government, industry and academia – gain a better understanding of policy, and work together to foster trade and investment.
These bilateral forums complement our multilateral engagement.
This type of engagement is critical to a holistic approach to regional energy security and climate change challenges.
China and Australia are increasingly active in this space, including through the APEC Energy Working Group and the Asia Pacific Partnership on Clean Energy and Climate.
Energy security is vital to economic development, and to the creation of opportunities and prosperity for our people.
Australia has a rich diversity of energy options.
Our investment in wind, solar, geothermal and biomass development is creating a whole new industry.
And harnessing these technologies will bring us closer to a low-carbon economy.
Conclusion
Ladies and gentlemen, we are natural partners.
China is front and centre of Australia’s many export opportunities.
Working together, let’s make the most of them.
Thank you