MINING INDUSTRY

Ms THOMPSON (Reynell) (14:15): My question is also to the Premier. Can the Premier update the house on recent developments in the mining and associated industries in South Australia?

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) (14:15): Members will remember that I opened the state's the 12^th mine in August. The Cairn Hill iron ore mine, just 55 kilometres south-east of Coober Pedy, is providing local employment with jobs for about 100 people on-site and approximately 170 indirect jobs. IMX Resources expects to ship up to 1.7 million tonnes a year of magnetite and smaller amounts of copper and gold ore to China over the next five years.

As members would know, when we came to office in 2002, South Australia only had four operating mines. Now we have 12; we hope to be having 16 by the end of the year. We have another 20 or more in various stages of application and approval. But the most recent development in the resources area is not in fact a new mine: it is a proposal for a $1 billion mineral processing complex.

Earlier this month, Perth-based Arafura Resources announced its plans to build a rare earths processing complex on OneSteel land at Whyalla. The proposed complex will process rare earths from the company's planned Nolan's project about 135 kilometres north of Alice Springs. The development is expected to create more than 1,000 jobs during the two-year construction phase and about 200 to 300 ongoing jobs at the—

Mrs Redmond interjecting:

The Hon. M.D. RANN: I see. Now we are badmouthing new developments for Whyalla, but what do you expect?

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: The bitterness involved in yesterday's budget reply showed an anger at the opposition's inability to—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —get elected. Of course, this will provide a huge boost to Whyalla and the whole Upper Spencer Gulf region. Rare earths are in demand worldwide for use in lasers, computer and television screens, fibre-optic cables and mobile phones. They are also essential for developing green technologies such as low energy light bulbs, wind turbines, rechargeable motor vehicle batteries and high-strength magnets.

Of course, this development is in its early stages and must go through a thorough approvals process. It is a very significant project and requires the highest level of scrutiny, and that is why it has been declared a major project by this government. Major project status will allow the independent Development Assessment Commission to set the guidelines for the proponent to undertake an environmental impact study or a public and environmental report, whichever is deemed to be the most appropriate.

I welcome Arafura's decision to set up this major development in Whyalla in what is a strong endorsement of that community—of course, brilliantly represented by Madam Speaker—and South Australia.