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Australia’s mining and engineering sector on show at QME 2018

Queensland Mining and Engineering Exhibition (QME) 2018 saw more than 4,000 attendees visiting the event to explore the latest strategies and technologies driving productivity, profitability and protection of the industry.

More than 230 exhibitors attended this year’s event, an impressive 41 per cent increase on QME 2016. Industry heavyweights included Downer Group, Flender, Flexco, FLSmidth, Puma Energy, SMW Group, thyssenkrupp and Valley Longwall International.

Representation from key mining companies Adani, Anglo American, BHP, Glencore and Yancoal reaffirmed QME as a must-attend event for the Queensland mining industry. Collaboration was an underlying theme in the QME Seminar series sponsored by March IT.

With Australia’s mining equipment, technology and services (METS) sector contributing $86 billion to the Australian economy and supporting half-a-million jobs, QME 2018 also welcomed Australian Government representatives, Senator Michaelia Cash (Minister for Jobs and Innovation), Senator Matt Canavan (Minister for Resources and Northern Australia) and Mr George Christensen MP (member for Dawson).

Brandon Ward, director of QME 2018, said the success of this year’s exhibition reaffirmed the strength of the industry and its continued importance to the Queensland economy, with initial reports indicating a multi-million-dollar boost to the region during QME.

“With the sector playing such a significant role in the nation’s prosperity, it’s important that leading companies, decision makers, and personnel in mining and engineering have a major calendar event to come together to network and source the latest products and services,” said Ward.

“We would like to thank our supporters and all of the attendees, exhibitors, and speakers who chose QME 2018 to be that event, and Mackay to be that location.”

Ian Macfarlane, chief executive of supporting partner Queensland Resources Council (QRC), said the popularity of QME 2018 represented tremendous opportunity for businesses in the region.

“QME has been a fixture in Mackay for the last 25 years and remains the most important trade show for the region’s mining industry. It is truly a festival of innovation – brimming with ideas, energy and pavilions of all the latest products,” said Macfarlane.

“The exhibition provided a great opportunity for industry to come face-to-face with the best innovators the country, and find new opportunities that will safeguard the industry for generations to come in Australia.”

QRC figures show that last financial year, minerals and energy companies injected almost $14 billion into Mackay and Fitzroy regional economies. A survey of QRC’s chief executive officers (CEOs) showed that more than half were looking to increase their spending with local businesses this year.

QME also played host to the 2018 Queensland Mining Awards, celebrating the spirit of innovation, excellence and collaboration that is fostered within the highly competitive industry. QME sponsored this year’s Best Product Launch Award, won by Control Systems Technology for its IntelliRoll an autonomous ‘plug-and-play’ conveyor belt weigher.

QME will return to Mackay in July 2020 but the next major event for engineers, mining personnel, production managers and other professionals in mining and engineering will be the Asia-Pacific International Mining Exhibition (AIMEX) set to be held August 2019 in Sydney.

Restart of Century zinc mine ‘imminent’

New Century Resources is on the verge of restarting the Century zinc mine in Queensland after making strong progress in July.

The mine, 250km northwest of Mt Isa, was one of the largest zinc mines in the world during its original operational run from 1999 to 2016, when it was closed by previous owner MMG.

At the height of operations the mine was producing an average of 475,000t of zinc and 50,000t of lead a year. New Century has plans for the mine to become one of the world’s top 10 zinc mines when up and running.

New Century stated that mining, processing and port operations teams were now in place, with site activities moved from day shifts to a 24-hour schedule.

In July, the company completed mechanical installation, nearly finished dry commissioning and completed dredging at the mouth of the Norman River for shipping routes.

New Century will use the vessel MV Wunma, which was also confirmed to be ready for launch last month after testing of engines, generators, bridge equipment, ballast systems and several other necessary areas.

Notably, the company also fully commissioned its pipeline operation for the site, a 304km slurry concentrate pipeline connecting the mine in Lawn Hill to the project’s port facility at Karumba.

Rio Tinto takes key step towards first ‘intelligent’ mine

Rio Tinto has approved $US146 million ($197 million) in preliminary funding for the Koodaideri iron ore project in the Pilbara region, Western Australia.

The miner plans to develop Koodaideri into its first “intelligent” operation by including the latest in high-tech advances in the industry and by using an increased level of automation and robotics.

Koodaideri is described as a large scale, low cost, high quality project that will produce replacement tonnes and form a new production hub for the company in the Pilbara for decades to come.

The initial investment will focus on detailed engineering work on key elements of the project, the development of a rail construction camp and the first stage of the Koodaideri accommodation camp.

Rio Tinto expects to make a final investment decision on the project by the end of the year and also requires government approvals.

If approved, Rio Tinto has scheduled construction to begin in 2019 and first production in 2021. Koodaideri would create over 2000 jobs during construction and 600 permanent roles.

Rio Tinto Iron Ore chief executive Chris Salisbury said the investment was an important step for the Koodaideri project, which would be a significant leap forward for the global mining industry and the company.

“We’ve been building mines in the Pilbara for over 50 years, and, subject to final approvals, Koodaideri will incorporate all of that knowledge to enable us to build the smartest, safest and most efficient mine we’ve ever constructed,” Salisbury said.

“The deployment of leading-edge technology will deliver a step-change in both safety and productivity for our business.”

Koodaideri is about 110km from Newman in the Pilbara.

WEIR TO SPREAD ESCO’S SERVICE WINGS THROUGH MERGER

The acquisition of a century-old company specialising in cutting edge ground engaging tools will enable it to diversify globally, according to its new owner.

The merger of ESCO Corporation into the Weir Group is set to offer producers “market-leading solutions” from extraction to concentration, with the latter’s service centres spanning major parts of the world.

The Weir Group recently completed the acquisition for an enterprise value of $1.2 billion, after the merger was first announced in April.

“We are delighted to formally welcome ESCO to Weir,” Weir Group chief executive Jon Stanton said.

“It is a great brand that is respected throughout the world for its quality, performance and reliability. ESCO’s strength in extraction complements our leadership in the mill circuit, meaning that together we will have a comprehensive offering for mining companies around the world,” Stanton said.

Current ESCO president and chief operating officer Jon Owens, who joined Weir’s Group Executive committee, will continue to lead the business, as it becomes a division of the Weir Group.

“No other mining equipment provider will be able to offer customers market-leading solutions from extraction to concentration supported by a service centre network that covers every major mining region in the world,” Owens said.

ESCO has an extensive installed base of lip systems that house short-cycle consumables, such as teeth, shrouds, adaptors, blades and locking systems, with aftermarket sales representing about 90 per cent of ESCO’s revenues.

Weir’s traditional strength lies in slurry handling equipment with brands including Warman and GEHO pumps, Cavex hydrocyclones and Linatex rubber products.

Founded in Portland, Oregon, in 1913, ESCO currently employs around 2600 people with operations in 19 countries (including Australia), and generated $USD632 million in revenue last year.

A leader in mining and upstream oil and gas, Weir Group, with a 15,000-strong staff, has facilities in more than 70 countries (Australia included) and a global network of more than 100 service centres covering all key regions.

STEEL MANUFACTURING BOOMING IN VICTORIA

BlueScope, Australia’s largest steel manufacturer, has created more than 100 jobs at its Western Port plant over the last 12 months on the back of Victoria’s record infrastructure pipeline and its booming construction industry.

Visiting the company’s massive steel plant at Hastings, the state minister for industry and employment Ben Carroll said the Victorian government’s local steel requirements for major infrastructure projects gave the previously dormant steel manufacturing industry a new lease of life.

“Victorian manufacturing is booming – it’s creating jobs and supporting local businesses – including BlueScope,” the Minister said.

“BlueScope’s success reflects the resurgence in Victorian manufacturing which has seen 17 consecutive months of growth.”

BlueScope Steel Western Port Manager Jim Graham said demand for BlueScope’s coated and painted steel products is soaring, with the company set to export close to 10,000 tonnes of steel directly to the United States from the Port of Hastings.

“BlueScope is very pleased with the support the Victorian government has provided to the steel supply chain in Victoria, including through its use of Australian-made steel in major road and rail infrastructure projects,” Grahamsaid.

“Strong demand for BlueScope’s steel products in both domestic and export markets has seen a resurgence in production and employment at our Western Port plant.”

Rio Tinto awards Pilbara conveyor contract to Fenner Dunlop

Fenner Dunlop has secured a permanent contract with Rio Tinto to provide conveyor maintenance services at the Cape Lambert and Dampier Ports in Western Australia.

The long-term agreement is expected to create more than 40 full-time jobs. It will see Fenner Dunlop service all of the conveyors at the Pilbara ports.

Rio Tinto’s port facilities include four independent shipping terminals at Cape Lambert and Dampier, which are managed by a single system. The terminals have a combined 360Mt/y capacity.

Fenner Dunlop plans to open a new company branch in Karratha to form stronger business ties with the region.

Steve Abbott, Fenner Dunlop chief operating officer, said the two companies viewed the contract as a longstanding partnership.

“The award of this contract is directly attributed to our focus on total conveyor performance, our leadership and training programs and the excellent team we have in Western Australia,” Abbott said.

Fenner Dunlop, now part of the Michelin Group of Companies, has manufacturing plants in Melbourne, Sydney and Perth, and 16 branches nationally.

Australian Government representatives to meet with industry at QME 2018

The Queensland Mining and Engineering Exhibition (QME) 2018 has today announced the attendance of Michaelia Cash, Minister for Jobs and Innovation, Matt Canavan, Minister for Resources and Northern Australia and George Christensen MP, member for Dawson, reaffirming the importance of the sector to the Australian economy.

The Australian Government representatives will join engineers and mining personnel, production managers, and some of the industry’s largest corporations in Mackay from July 24–26 for Queensland’s largest mining and engineering exhibition, which will explore the theme, ‘Productivity, Profitability and Protection’.

According to the Mining in Australia 2018–2032 Report, mining production is likely to grow 5.5 per cent in the current financial year, with maintenance spending also on the rise and the investment decline winding down. To foster the industry growth trajectory, QME 2018 will bring together key industry players to improve collaboration, accelerate innovation and address future barriers.

“Since the doors opened 25 years ago to the very first QME, the event has built a longstanding reputation for bringing the best in Australian mining together, to collaborate and consider the industry’s domestic and international outlook,” said Brandon Ward, director of QME 2018.

“The event will also provide the Mackay region with national and international exposure and bolster its reputation as a mining hub, whilst providing visitors an opportunity to enjoy its diverse and vibrant community.”

This year’s exhibition will host more than 230 companies (an impressive 41 per cent increase from QME 2016) including global industry heavyweights Downer Group, Flender, Flexco, FLSmidth, Puma Energy, SMW Group, thyssenkrupp and Valley Longwall International.

Running alongside the exhibition will be a seminar series featuring more than 30 speakers across three days, providing visitors with exclusive access to the latest industry technologies and insights via keynote presentations, panel discussions and case study presentations. The seminar series will focus on six key areas including maintenance, automation and Internet of Things (IoT), procurement and supply chain, renewable energy, transport, and operational health and safety (OH&S).

QME 2018 will feature a Business Matching Program which offers visitors a personalised itinerary of products and companies matched to their areas of interest, to maximise their time on-site.

Weir completes acquisition of ESCO Corp

The Weir Group has completed the acquisition of ESCO Corp, the world’s leading provider of ground engaging tools for surface mining and infrastructure markets, for an enterprise value of $1,285 million. It follows regulatory clearance for the transaction, which was first announced on 19 April 2018.

Commenting, Weir Group Chief Executive Jon Stanton said:“We are delighted to formally welcome ESCO to Weir. It is a great brand that is respected throughout the world for its quality, performance and reliability. ESCO’s strength in extraction complements our leadership in the mill circuit, meaning that together we will have a comprehensive offering for mining companies around the world.”

Current ESCO President and Chief Operating Officer Jon Owens will continue to lead the business as it becomes a division of the Weir Group. He will also join Weir’s Group Executive committee with immediate effect.

Owens said: “This is an exciting day for ESCO and all our people. As part of Weir we can create something that is genuinely unique that will help more customers improve their productivity and safety. No other mining equipment provider will be able to offer customers market-leading solutions from extraction to concentration supported by a service centre network that covers every major mining region in the world.”

ESCO has surface mining’s most extensive installed base of lip systems that house short-cycle consumables, such as teeth, shrouds, adaptors, blades and locking systems, with aftermarket sales representing about 90% of ESCO revenues. ESCO’s extraction products sit upstream from Weir’s traditional strength in slurry handling equipment with market leading brands including both Warman® and GEHO® pumps, Cavex® hydrocyclones and Linatex® rubber products.

ESCO was founded in Portland, Oregon, in 1913 and currently employs around 2,600 people with operations in 19 countries. In 2017 it generated revenues of $632 million.

Ricardo Garib, Division President of Weir Minerals, said the combination would be beneficial to customers around the world: “It is great to welcome ESCO to Weir. They are a business we have admired for some time. By working together we’ll be able to give customers easier access to more market-leading products and services. With our global network of over 100 service centres, that means customers will have more of the superior solutions they require, where and when they need them.”

Joe Weber, Vice President of Global Sales for Weir’s ESCO division agreed: “As mining markets grow customers are looking for partners they can trust to help them increase productivity and safety while also lowering their total cost of ownership. That requires a relentless focus on innovation, quality and close customer proximity, which are the hallmarks of the ESCO® brand.

“As part of Weir we’ll benefit from combining some of the world’s leading materials scientists, applications engineers and developing digital technology to deliver increased innovation in the future, ensuring ESCO remains surface mining’s preferred provider of ground engaging solutions.”

The industries set to fly and fall in 2018-19

As Australian businesses enter the new financial year, industry analysts at IBISWorld reveal which industries are set to have a bumper 2018-19, and which are likely to struggle.

“The standout performer is expected to be intellectual property leasing, with expected revenue growth of 68.2%. Other strong performers include internet publishing and broadcasting; retail property operators; pig farming; and childcare services,” said Jason Aravanis, IBISWorld senior industry analyst.

“Industries expected to decline over the next 12 months, reflecting the changing landscape of the Australian economy, include multi-unit apartment and townhouse construction; building societies; video game, DVD and recorded music retailing; house construction; and iron ore mining. These contractions are in response to changing commodity prices, consumer behaviour, and investor sentiment,” said Aravanis.

Industries set to fly in 2018-19

Industry	Revenue 2017-18 ($m)	Revenue 2018-19 ($m)	Revenue growth 2018-19
Intellectual property leasing	2,826	4,752	68.2%
Internet publishing and broadcasting	2,486	2,896	16.5%
Retail property operators	22,830	26,590	16.5%
Pig farming	1,110	1,262	13.7%
Childcare services	12,205	13,075	7.2%

Intellectual property leasing

Operators in the intellectual property leasing industry lease intellectual property — such as patents, trademarks, spectrum and other intangible property — to businesses in exchange for royalties or licensing fees.

The auction of new spectrum capacity in the industry is expected to lead to significant revenue growth in 2018-19. A spectrum auction is a process whereby a government uses an auction to sell the rights (licences) to transmit signals over specific bands of the electromagnetic spectrum, and to assign scarce spectrum resources. This process plays a vital role in the Australian economy, as the government sells spectrum rights to companies, which then provide consumers with access to services such as mobile networks.

Revenue for this industry has been extremely volatile over the past five years. These extreme fluctuations have been attributable to the auction of spectrum rights by the federal government, which occurs on an irregular basis and depends on the development of new spectrum. Large telecommunication companies, such as Telstra, Optus, Vodafone and TPG, are the main bidders for Australia’s spectrum. For example, TPG purchased spectrum rights for $1.26 billion in the April 2017 auction, in a move to build its own mobile network and ultimately shake up the Australian telecommunications sector. This auction led to industry revenue skyrocketing in 2016-17, followed by a steep fall in 2017-18. A spectrum auction for the 3.6 GHz band is expected to take place in 2018-19, which may re-allocate the 3.6 GHz band for 5G. As a result, industry revenue is expected to increase by a substantial 68.2% in 2018-19.

Internet publishing and broadcasting

The rapid expansion of on-demand video and music streaming services such as Netflix and Spotify is expected to cause the internet publishing and broadcasting industry to grow by 16.5% in 2018-19, to $2.9 billion. This growth is off the back of the continued strong performance of online advertisers, as customers have transitioned to digital services and away from print media.

Rising internet access, particularly in rural areas, and improvements in technology have driven the increasing demand for on-demand streaming services. Services are now being watched on more devices. The ability to handle higher data usage through the continued rollout of the NBN is also expected to contribute to industry growth.

The number of enterprises in this industry has increased over the past five years due to low entry barriers for internet-based businesses. Major players that offer content across multiple channels, such as smartphone apps, are likely to outperform industry growth.

Retail property operators in Australia

Revenue for the retail property operators industry is expected to increase by 16.5% in 2018-19, to $26.6 billion. Demand from retail trade is anticipated to grow in 2018-19, fuelling demand for industry services.

Growing demand from overseas investors has also contributed to the industry’s revenue expansion over the past five years. Demand from overseas investors has largely been due to improved vacancy rates over the period, and growth in Australian property prices, both commercial and residential.

Despite the industry’s strong growth, operators have continued to face pressures caused by fluctuating consumer sentiment, which can affect retail sales and business confidence. While improvements to underlying retail drivers may prompt more spending, an increasing proportion of consumers choosing to shop online may somewhat mitigate the positive effects of these drivers on the industry.

Pig farming

The pig farming industry is expected to grow by 13.7% in 2018-19. Rising health consciousness and continued marketing efforts by Australian Pork Limited (APL) are likely to continue driving consumer demand towards fresh pork. As a result, pig meat consumption is expected to continue growing in 2018-19, as consumers increasingly view fresh pork as a healthy source of protein.

With weight and wellness concerning more Australians each year, consumers are being turned away from traditional red meats like lamb and beef towards leaner sources of protein like fresh pork. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) expects beef, veal and lamb consumption to fall in 2018-19.

Operators in the pig farming industry are anticipated to increase production in 2018-19 to take advantage of this rising demand, while growing demand for premium fresh pork products is likely to boost the domestic price of pig meat. IBISWorld also expects that pig meat exports will grow while import volumes will decline in 2018-19, providing a further boost to Australian domestic pig farmers.

Childcare services

The childcare services industry has benefited over the past five years from rising maternal workforce participation rates and increasing enrolment rates. Both of these factors have been encouraged by increased government assistance packages designed to encourage woman to return to the workforce following the birth of their children.

The industry’s operating conditions are set to change again in 2018-19, with the introduction of the new single Child Care Subsidy (CCS) on 2 July 2018. In contrast to the previous child care assistance package, this new subsidy is to be paid directly to child care operators. The federal government is expected to pay out $8.0 billion in CCS payments in the first year of the policy. This is expected to contribute to the industry’s anticipated growth of 7.2% in 2018-19, to $13.1 billion.

Industries set to fall in 2018-19

Industry	Revenue 2017-18 ($m)	Revenue 2018-19 ($m)	Revenue growth 2018-19
Multi-unit apartment and townhouse construction	25,617	21,173	-17.3%
Building societies	509	436	-14.4%
Video game, DVD and recorded music retailing	1,006	927	-7.9%
House construction	44,683	41,823	-6.4%
Iron ore mining	62,994	59,494	-5.6%

Multi-unit apartment and townhouse construction

The multi-unit apartment and townhouse construction industry is expected to face deteriorating demand in 2018-19, as investors respond to the build-up of unsold stock by deferring projects. The recent completion of major apartment developments has contributed to excess supply in several capital cities, notably Melbourne and Brisbane, which is likely to dampen investment until vacancy rates gradually ease.

The scaling back of investment is also expected to coincide with weaker investment from Asia in the local real estate market, which is due to the tightening of mortgage lending practices to foreign residents by the local banks, and the imposition of additional land taxes on foreign investors. Although work done on multi-unit apartments and townhouses is expected to decline, the industry is declining from historically high levels and many of the construction contractors will look to ride out the cyclical contraction. Industry revenue is expected to contract by 17.3% in 2018-19, to $21.2 billion.

Building societies

The building societies industry has declined significantly over the past five years on the back of prominent exits and a falling cash rate. Intense competition from national banks, and low-interest rates, have placed significant pressure on the industry. Interest revenue generated by building societies on their loan books has fallen on the back of the lower cash rate, despite greater demand for mortgages.

The lack of access to further capital has been a key factor that has led to the conversion of several former operators to banks. In 2012-13, nine building societies were registered in Australia. Only three building societies remain in the current year, with the most recent exit being B&E Ltd’s conversion to a bank in October 2017. As a result, revenue from building societies is expected to decrease by 14.4% in 2018-19, to $436.3 million.

Video game, DVD and recorded music retailing

The video game, DVD and recorded music retailing industry is expected to decline by 7.9% in 2018-19. Changing media formats and the increasing popularity of online shopping are making trading difficult for retailers of products that can be accessed online. Intensifying competition from digital media formats and online-only retailers has significantly contributed to industry revenue declining over the past five years.

The industry’s largest product segment is video games. Although the uptake of video games has been strong over the past decade, the increasing sophistication of online-only stores and the advent of faster and cheaper internet connections have caused a significant portion of video game sales to occur online through platforms such as Steam.

A similar trend is occurring for films, television shows and recorded music, with online streaming through providers like Netflix and Spotify becoming the dominant mode of content delivery. These trends are cementing the industry’s decline.

House construction

The house construction industry’s revenue is expected to trend downward in 2018-19, corresponding with the anticipated rise in mortgage interest rates and some deterioration in mortgage affordability. The magnitude of the cyclical correction in demand from the house construction industry is expected to be much smaller than the slump in the aligned multi-unit apartment and townhouse construction industry, which is exposed to substantial unsold stock levels and the exit of foreign investment.

The decline in new housing investment is likely to be most evident in the first-home buyers category, as the recent increases in housing prices and the rise in mortgage repayments are likely to prevent more households from becoming home owners. The house construction industry is anticipated to decline, although continued solid population growth is expected to ensure solid underlying demand for new housing. Overall, industry revenue is forecast to decline by 6.4% in 2018-19, to $41.8 billion.

Iron ore mining

Although revenue generated by the iron ore mining industry is expected to decline 5.6% in 2018-19, this decline is from a relatively high level, and is across an industry that has expanded output dramatically over the past decade. A lower average world iron ore price in 2018-19 is expected to be the main contributor to the industry’s revenue fall. As domestic and global iron ore production volumes continue to increase, iron ore prices are expected to weaken due to oversupply.

The industry relies heavily on Chinese demand, with China anticipated to account for more than 80% of Australia’s iron ore exports in 2018-19. Slower GDP growth in China will likely hinder demand for steel, and hence iron ore. Furthermore, a stronger Australian dollar against the US dollar will reduce the competitiveness of Australia’s iron ore exports. However, as local iron ore quality is very high, and as per-unit iron ore mining costs in Australia are very low globally, the industry will remain competitive in 2018-19 and over the next five years.

Australian government and IBM sign $1 billion deal for blockchain, AI technologies

The Australian government has struck a deal with IBM to provide a $1 billion five-year technology service to accelerate the uptake of blockchain, artificial intelligence (AI) and quantum computing in the public sector.

The R&D program will be driven through three hubs in Melbourne, Canberra and the Gold Coast. It is part of an innovative, cross-government technology service deal, inked by the Turnbull government with the US business tech giant, that gives all federal agencies access to IBM’s cloud infrastructure, cyber-security practice, applications and system software.

The highly strategic whole-of-government service agreement will enable the $450 billion big Australian public sector access to IBM’s technology platform. IBM is a heavyweight in the enterprise space, in particular in financial services, and already has major agreements with Canberra’s digital giants, Human Services, the Australian Taxation Office, Home

This agreement enables the 900-plus long tail of medium to small government agencies to also tap IBM’s deep capability in data system design and application deployment, while giving the government’s big four tech shops more flexibility to explore innovative technologies and applications and cost benefits on existing contracts.

The deal, led by the Digital Transformation Agency (DTA), is the highest-value tech contract negotiated by the Australian government, and reflects the long-term anticipated value of the agreement.

The agreement represents a much more assertive approach to the big tech vendors, using the federal government’s $6-10 billion annual tech spend to leverage with IBM an ambitious embrace of three emerging foundational technologies, which many digital leaders expect will be deeply transformative for government.

Under the deal, IBM’s AI and cloud technology can be used by Australian agencies to quickly bring more self-service, automation and digitisation to government services. IBM and the Digital Transformation Agency will convene government and industry leaders to prioritise the introduction of new technologies to citizen services.

Announcing the pathbreaking agreement, Minister for Digital Transformation Michael Keenan said the all-of-government service agreement would save money and would help drive the deployment of simpler and easier services. He said it is a major step towards the government’s aggressive goal to be one of the top three digital governments by 2025.

“The deal has also been structured to enable small and medium-sized firms to engage with IBM through ‘channel partner’ arrangements to ensure they also benefit,” Keenan said.

Rapid access to emerging technologies

Keenan is also Minister for Human Services and earlier this week made an impassioned plea to take a positive view of data sharing and integration within government. Keenan declared data is not “a four letter word“, citing early examples where integration of data sets was supporting predictive applications in drug and weather data.

New DTA chief executive, Randall Brugeaud, said the five-year deal would save about $100 million over that period.

IBM’s Australian managing sirector David La Rose said this will give Australians rapid access to emerging technologies as they are developed, while helping the government re-engineer its platforms to protect and encrypt citizen data against modern-day cyber-security threats.

“This agreement is a testament to our 40-year partnership with the Australian Government. It shows trust and belief in our ability to transform and provide world-leading capabilities, leveraging our investments locally in AI, blockchain, quantum and cloud. We look forward to helping the Australian Government to redefine the digital experience for the benefit of all Australians.”

The government’s R&D accelerator programs are to be driven through three hubs in Melbourne, Canberra and the Gold Coast.

IBM has major research infrastructure and capability embedded in the Melbourne University health ad bio tech precinct, leading the world in the real-world application of AI to melanoma. This is expected to be the foundation of a research team to accelerate the application of blockchain, AI and quantum computing across the emerging public sector platforms.

Separate units of expert computer engineers and developers will also be based on the Gold Coast and Canberra to work on leading cyber-security solutions for data protection and the application of super-computing for government services.

Blockchain enables transactional data to be trusted, without the need for complex centralised control systems. Public sector pilot projects around Australia are expected to begin mature-to-early operational applications in the coming year, but technologists believes blockchain could underpin the virtualisation of major government controlled or funded systems in the health, finance, transport, safety, energy, education, regulatory and communications sectors.

AI offers the government the opportunity to deeply learn from its huge data pools sitting in its major revenue, payments, service, and safety systems and automate many of the manual systems still deeply embedded in state and federal tech platforms. AI applications are rapidly being deployed to enable computers to learn from case files what are the most effective solutions and offer a major opportunity to empower human service frontline workers by enabling them to learn from the vast amount of knowledge sitting in case management files.

‘As profound as the rollout of electricity’

Quantum is an uber powerful computing technology that promises to power up many of the heavy data processes that will come as federal, stare and local governments seek to integrate major life services, like an easy solution to wind up the affairs of a deceased family.

Quantum computing evangelists believe it will be as profound as the rollout of electricity. The Australian government has already made a $25 million investment in the UNSW Quantum lab in Sydney. The same lab also has multi-million dollar investments from the NSW government, Telstra and the Commonwealth Bank.

IBM has once of the world’s leading quantum computing labs, located outside of New York City.

The government is also negotiating with other major tech vendors to drive a better all-of-government result. Outside of the big defence primes, IBM and Telstra dominate the tech vendor space in Canberra, but with major relationships with Fujitsu, SAP and Oracle.

Keenan said the coordinated procurement process allows for better oversight of contract delivery and greater accountability of how public funds are being spent. Since 2008, whole-of-government agreements have saved the government about $1.2 billion.

The DTA agreement with IBM comes as the government’s fifth chief digital officer in just over three and half years, Randall Brugeaud, takes over as chief executive of the DTA from former NAB executive Gavin Slater, who is going back to the private sector after 12 months in the job.

The deal represents a major recovery for the US tech giant. IBM had to negotiate a major compensation deal with Treasury, after the first all-digital census was forced to be shut down for two days in 2016, when ABS chief David Kalisch took the call not to risk the suspected infiltration of census data. IBM provided the census solution.

This article was originally published on The Mandarin. IBM is a partner of The Mandarin.