Ministerial Statement

SANTOS

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:01): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.D. RANN: Later today I will be introducing to the house historic legislation for the removal of the 28 year old Santos 15 per cent shareholder cap. This is important legislation that will allow Santos to grow strongly. It will also ensure that South Australia will benefit from a good share of that growth as well as from a healthy social dividend for education and community development, amongst other things. Further detail will be provided when I introduce the bill.

Everyone is aware that the opposition leader has not declared his support for this historic legislation. We know that he described the review into the shareholder cap as Santos would be 'taken over and fall prey to global equity markets' and various other dire consequences, but at the end of his media statement he said, ' We are open to the measure.' This is a test of leadership for the opposition leader. South Australian Liberal commonwealth ministers Nick Minchin and Alexander Downer have supported the removal of the cap with the very protections we have negotiated with the company. These protections are set down in the company's deed of undertaking to the state.

On the day of the announcement that the South Australian government would move to lift the shareholder cap, Howard government finance minister Nick Minchin had this to say:

I commend the state government and congratulate Santos on being set free from this constraint on the company.

So, I call upon the opposition and all members of the Legislative Council to support this vital legislation. It would also be a show of support for the future growth and development of South Australia's valuable resources industry, which continues to loom large in our state's future economic success.

I have an announcement to make today. Hillgrove Copper has today signalled to the Australian Stock Exchange its plans to redevelop the 1970s era Kanmantoo copper-gold mine. This new mining operation is expected to initially involve an investment of $100 million and the creation of 400 jobs in the development stage and 200 permanent jobs following the resumption of mining. The mine is located between Callington and Kanmantoo, south-east of Adelaide—an area that would welcome jobs and investment growth. I repeat: $100 million, the creation of 400 jobs in the development stage, plus 200 permanent jobs following the resumption of mining.

Mr Williams: All in the electorate of Kavel.

The Hon. M.D. RANN: Yes—all in the electorate of Kavel. I hope that we have the support of the member for Kavel. Do we have that support? Good.

Mr Williams interjecting:

The Hon. M.D. RANN: Apparently, the former premier, Dean Brown, is chairman of the board.

The Hon. P.F. Conlon: He does a good job, that bloke.

The Hon. M.D. RANN: He does a very good job. I am told that Hillgrove has been investigating the copper mining potential around Kanmantoo for several years. This development application follows detailed consultation with all relevant government agencies, the community, the District Council of Mount Barker, and other major stakeholders. I understand that formal community consultation on this new mining proposal will begin tomorrow and close on 7 December this year. It is terrific to be able to welcome the opening of another mine in South Australia.

An honourable member interjecting:

The Hon. M.D. RANN: Sure.