News Stories 8 March 2007
East Timor – Security Situation
The security situation in East Timor is a matter of serious concern to the Australian Government. The operation to apprehend renegade military officer Alfredo Reinado, as requested by the East Timorese Government, is ongoing. The current travel advice recommends that Australians do not travel to East Timor, reflecting the volatile security situation and the increasing likelihood that Australians could be targeted.
An International Security Force (ISF) operation to apprehend renegade military officer Alfredo Reinado is underway, following his seizure of weapons from a police border post on 25 February, and his refusal to surrender peacefully.
The operation is being undertaken at the request of the East Timorese Government.
The ISF is taking all possible measures to ensure that Reinado is apprehended without harm.
Five armed Timorese men were killed during the operation when they posed an immediate threat to the lives of ISF members.
The United Nations Independent Special Commission of Inquiry (October 2006) recommended that Reinado face prosecution for murder and weapons offences.
It is important that he face justice.
Although progress has been made in restoring stability since the unrest in April/May 2006, the overall security situation remains fragile.
Last week there was an upsurge in violence caused by a combination of rice shortages, political protests and reactions to the operation against Reinado.
In light of the volatile security situation, Mr Downer has authorised the voluntary departure of dependants and non-emergency staff from the Australian Embassy in East Timor.
Entry into force of amendment to the London Protocol
Australia led successful international efforts to amend the London Protocol to allow carbon dioxide (CO2) to be stored, or sequestered, under the sea-bed. We welcome the entry into force of the amendment (on 10 February 2007). The sub-seabed storage of CO2 promises to contribute strongly to climate objectives.
Australia’s proposed amendment to the London Protocol to allow sub-seabed CO2 storage was co-sponsored by France, Norway, Saudi Arabia, Spain and the United Kingdom.
The amendment is a major step forward in global efforts to capture and store CO2 produced by fossil fuels, and promises to contribute strongly to climate objectives.
According to the International Energy Agency (IEA), global coal use will rise by 60 per cent by 2030. Removing barriers to clean coal use is absolutely vital if we are to fight climate change.
The sub-seabed sequestration of CO2 will enable countries to secure energy resources, while addressing climate change by lowering greenhouse gas emissions from the use of fossil fuels.
In doing so, it will also combat rises in ocean acidity that threaten the world’s coral reefs and fish stocks, thereby protecting the marine environment.
The amendment allows CO2 sequestration in sub-seabed geological formations, not the water column.
Only captured gases and substances from the emission source may be sequestered (ie no other wastes), and the injected gas stream would be almost entirely CO2 (at least 95 per cent and closer to 99 per cent).
The amendment clears the way for the commercial development and deployment of critical low emissions carbon capture and storage technologies.
Australia is already a world leader in clean coal and carbon capture and storage technologies, with projects such as the planned Gorgon LNG Project on Barrow Island in the state of Western Australia.
The Gorgon project proposes to re-inject underground some 125 million tonnes of CO2 from natural gas extraction, and has the potential to be one of the most greenhouse gas efficient projects of its kind.
The amendment will benefit major Australian climate projects, such as Monash Energy’s world-class coal-to-liquids project in the Latrobe Valley in the state of Victoria.
The Monash energy project will see the CO2 from the coal-to-liquids process captured, transported and then stored in Bass Strait oil and gas basins.
The London Protocol amendment will also contribute to the advancement of carbon capture and storage projects under the Asia Pacific Partnership on Clean Development and Climate and the Low Emissions Technology Demonstration Fund.
Australian exports continue to grow
Australia’s exports for January reached the second highest total ever of A$18.12 billion. The January figures follow a record year for Australian exports, which were A$210 billion in 2006.
In January Australian exports rose by two percent while imports fell by one per cent.
This resulted in Australia’s trade deficit narrowing by half a billion dollars to a seasonally adjusted A$876 million.
Manufactured items lead the increase in exports rising six per cent.
Resources exports increased two per cent based on a rise in coal exports.
Services exports were at the highest monthly level on record at A$3.8 billion.
Rural exports decreased by one per cent to A$2.1 billion, reflecting the impact of the drought on exports of cereal grains and preparations.
Australia’s largest export market for merchandise exports remains North East Asia, with all markets in the region recording double digit growth.
But, exports to Europe and India both increased 30 per cent in 2006.
News Stories - 1 March
Australia and East Timor finalise arrangements in the Timor Sea
Australia and East Timor brought into force on 23 February two treaties that allow for the exploitation of the substantial Greater Sunrise gas field in the Timor Sea, and put aside maritime claims and the need to delimit permanent maritime boundaries for 50 years.
The Australian Government is pleased that the Treaty on Certain Maritime Arrangements in the Timor Sea (CMATS) and the International Unitisation Agreement (IUA) for Greater Sunrise entered into force.
This is a good outcome for East Timor, a good outcome for Australia, and a positive development for Australia’s resources industry.
The treaties establish a framework within which Australia and East Timor can work further together in the exploitation of the gas and petroleum resources in the Timor Sea.
The treaties will enable the exploitation of the valuable Greater Sunrise gas field on a long term and stable basis.
Under CMATS, Australia has agreed to share half the total upstream revenue from Greater Sunrise with East Timor, likely to amount to several billion dollars for East Timor over the life of the project.
The revenue accruing to East Timor will lay strong foundations for the development and stability of one of our closest neighbours.
These treaties, and the development of the Greater Sunrise project in particular, will promote further investment in Australia’s offshore petroleum and gas industry, resulting in significant benefits.
Australia is currently the fifth largest exporter of LNG, with 7 per cent of global volume – the development of Greater Sunrise has the potential to build significantly on Australia’s standing in the global energy market.
East Timor security situation: Fatal shooting of two East Timorese nationals by ADF soldiers on 23 February 2007
On Friday 23 February the International Security Force (ISF) responded to a disturbance at the Dili Airport Internally Displaced Persons (IDP) camp. During the incident, Australian Defence Force (ADF) members of the ISF were attacked with steel arrows, and were required to defend themselves, resulting in the deaths of two East Timorese nationals. The incident will be fully investigated in cooperation with UN Integrated Mission in East Timor (UNMIT) police and East Timorese authorities.
A third East Timorese national was wounded and continues to receive treatment at Dili Hospital.
His condition is stable.
The ADF regrets any incident that involves the loss of life.
The ISF soldiers operate under strict rules of engagement.
These rules allow ISF soldiers to defend themselves and other persons whom they are assigned to protect.
UNMIT police have responsibility for public security and law and order, with the Australian-led ISF in a support role.
UNMIT police expect to be at full-strength of 1,608 officers, including 50 Australians, by mid-March.
Currently approximately 800 Australian and 120 New Zealand personnel are deployed to ISF.
The security situation leading up to the first round of the presidential elections, on the 9th April, and the parliamentary elections, expected between June and September, remains a key concern.
An open political environment and a stable security situation are important prerequisites for successful elections.
The Department’s travel advice was updated on 25 February to reflect the increased likelihood of Australians and Australian interests being specifically targeted following the deaths of the two East Timorese nationals.
Meeting of APEC Ministers Responsible for Mining held in Perth
The recent meeting of APEC Ministers Responsible for Mining (MRM), held in Perth on 14 February, highlighted the theme of the Asia Pacific Economic Cooperation (APEC) 2007 meetings “Strengthening our community, building a sustainable future.” The MRM meeting discussed the need for closer regional cooperation for the sustainable development of the region’s mineral resources.
The Minister of Industry, Tourism and Resources of Australia, Ian Macfarlane, chaired the recent meeting of Ministers Responsible for Mining representing APEC Member Economies in Perth, Australia, on 14 February.
MRM3 was attended by over 320 delegates across the week; 19 of the 21 APEC economies were represented with 14 economies represented by Ministers (Hong Kong and Singapore not represented).
The MRM3 week included several meetings and activities which involved industry and NGO stakeholders, including a mining industry forum, a high-level stakeholder dialogue with ministers, sustainable development workshops and a mine site visit.
The meeting recognised that the Asia Pacific Region is the main driver of global economic growth and a significant producer and user of minerals and metals.
Under the theme APEC – Improving Leading Practice Sustainable Development in Mining, the meeting discussed and analysed three main issues:
- global supply and demand of minerals;
- effective governance of the mining sector; and
- sustainable development – implementation.
The meeting agreed to the following non-binding principles, recognising that application of these principles will be dependent on the specific circumstances of each member economy:
- Pursue policies that enhance the sustainable production, trade and consumption of minerals and metals thereby improving the economic and social wellbeing of our people.
- Foster regular exchange between member economies about experiences with regulations, policies and practices and about significant developments in each economy's minerals and metals sector.
- Promote the best possible functioning of global markets for minerals and metals, through support for market transparency and facilitation of trade. Export restrictions should be employed only in exceptional cases, and in accordance with WTO rules.
- Foster investment certainty in the APEC minerals sector through the pursuit of open minerals and metals markets and the articulation of clear and predictable investment policies.
- Promote cost-effective, evidence-based, transparent and objective-based measures which improve the efficiency in the regulation of the minerals industry to contribute to economic, environment and social development outcomes.
- Encourage, support and promote initiatives by the minerals and metals industry and stakeholders that contribute to national and international sustainable development goals.
- Encourage research to develop and apply new minerals exploration, extraction, and pollution control technologies that are more cost-effective, efficient, economically sound, environmentally responsible and socially acceptable. Promote information exchange and cooperation on such technologies.
- In partnership with all life cycle participants, ensure that materials and products made from minerals and metals are produced, consumed, recycled or disposed of in a responsible manner.
- Encourage all participants in the life cycle of a material or product to take direct responsibility for their area of action, and consider shared concerns over other stages of the life cycle.
- Support capacity-building activities for sustainable development so that all APEC Economies are able to maximise the benefits and minimise the impacts from minerals resource development.
The meeting agreed to study the impediments to greater investment in the minerals and mining industry. The study should:
- explore practical actions to deliver free trade and investment for minerals and metals in the APEC region; and
- link to the overarching analysis being conducted by APEC Senior Officials for regional economic integration.
Ministers instructed officials to develop a proposal for submission to APEC Senior Officials in June 2007, regarding the establishment of a Mining Working Group to be chaired by the Russian Federation for 2007-2008.
The Group would replace the activities previously conducted in the Group of Experts on Mineral and Energy Exploration and Development (GEMEED) and the Non Ferrous Metals Dialogue (NFMD).
The meeting agreed to develop an APEC position on sustainable development policies in the mining sector for submission to the United Nations Commission on Sustainable Development (UNCSD).