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Yesterday Frydenberg took a tour of BHP Billiton's Olympic Dam copper-uranium mine in South Australia to check out what the operation has been doing to combat lower commodity prices.
He noted that innovation had played a key role in BHP's productivity push, which had already seen unit costs reduced by 36%, and praised the resilience of the mine.
"Importantly, the company is investing in new techniques such as heap leaching to create more efficient extraction methods which could reduce overall mine costs by around a further 10%," Frydenberg said.
"The government is focused on supporting the use of innovation across the resources sector.
"In particular, the application of geoscience technology through Geoscience Australia provides the technical capacity to undertake geological mapping of mineral deposits, which can assist in de-risking exploration in Australia."
But in an open letter to Frydenberg, Prime Minister Malcolm Turnbull and Minister for Industry, Science and Innovation Christopher Pyne, Giorgetta accused the government of treating the mining sector like an "invisible industry" given the weakness in commodity prices.
"The federal government has a focus on developing enthusiasm and investment for innovation and technology which is appropriate and hopefully will generate new ideas with associated emerging new industries and strong economic contribution in a substantial manner for the Australian economy," Giorgetta said.
"Almost no profiling has been provided when discussing the benefits of innovation and technology within the resources sector that has demonstrably provided over a sustained period some of the most effective innovation and new technology developed in Australia and historically the industry has also been early adopters of new technology."
Giorgetta, a gold industry stalwart, said the Australian mining sector had been pushing the boundaries of technology since the 1930s, resulting in breakthroughs and the early adoption of new technologies such as carbon-in-pulp processing, automation, seismic technology, and satellite imagery.
"Notwithstanding the low profile, in any case study each of these examples stands alone as a major breakthrough that governments should be shouting about as leaders of innovation and technology," he said.
The downturn in commodity prices had only accelerated the efficient use of technology and innovation to drive down costs, Giorgetta said.
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"It is appropriate given the success of the industry in this area that scientific and possible associated financial and organisational support be directed to generating the next phase of technology that will drive the next mining boom," Giorgetta said.
"After all, this is an industry that has a track record of success in this area and the industry has a strong historic association of collaboration with organisations such as CSIRO, the Western Australian School of Mines and other pre-eminent organisations that can deliver world class research."
Giorgetta urged other organisations that represent areas of the resources sector to also write to the government ahead of the May budget.
"Let's not ignore our remarkable industry when focusing on technology and innovation. Let's use the expertise we have to tap into the enthusiasm the government seems to have for new ideas," he said.
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"It would be appropriate in the forthcoming budget where we would expect that innovation and technology will feature, that the mining and resources sector is provided for as a leader and a successful developer of and user of technology and innovation."听
