MINING DEVELOPMENT

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) (15:03): I seek leave to make another ministerial statement.

Leave granted.

The Hon. M.D. RANN: Members of the house will be aware of this government's support for mining development in this state. Late last year I announced that the number of major mines approved in South Australia has risen to 16. The 16 approved mines represent a four-fold increase from the number of mining projects in this state when this government came to office.

This increase was driven in part by the government's introduction in 2004 of the Plan for Accelerating Exploration (PACE). These mining projects create jobs and underpin economic activity in regional areas throughout our state. They are evidence of this state's capacity to translate the almost $1.3 billion of private mineral exploration expenditure since the introduction of PACE into new mines and new jobs.

Our recently revised Mining Act is a world-class regulatory framework for minerals exploration and development. This has been recognised by international commentators such as ResourceStocks and Canada's Fraser Institute, both of which have consistently placed South Australia among the world's top jurisdictions for mining investment.

The mining industry in South Australia will be further supported by the new approach to the highly prospective Woomera prohibited area (WPA) outlined in the Allan Hawke report commissioned by the commonwealth government. This report has recommended a range of policy measures, which would significantly increase the scope for co-existence between mining and defence activity in the Woomera protected area (an area, I understand, bigger than England), providing certainty to industry and unlocking much of the potential $35 billion in mining projects located in this area, and it could be much more than that.

This will help us build on the success of PACE, which has been transforming our mineral sector. Mineral production values reached a record $3.28 billion in 2009-10, achieving our South Australian Strategic Plan target of $3 billion by 2014 ahead of time. Minerals have now become South Australia's largest single contributor to exports, worth $2.8 billion in 2009-10—more than double their value of $1.7 billion in 2003-04—and these increases occurred despite a fall in production at Olympic Dam due to the catastrophic Clark shaft incident in 2009.

We can expect even more growth in this sector when the Olympic Dam expansion comes on stream. The excellent profit results announced by BHP Billiton last week will support the company's investment in this project. The government is working closely with BHP Billiton to ensure that the exhaustive approvals process for this project is thoroughly and efficiently managed.

I will be working with the Minister Assisting the Premier with the Olympic Dam Expansion Project and the Minister for Mineral Resources Development to ensure that this critical project goes ahead and generates the maximum benefit for this state. The government's negotiating team will also include Bruce Carter and Paul Heithersay.

While we are unashamedly pro mining and pro jobs, this government demands that exploration and mine development occur in a way that is sensitive to the needs of the environment and to the community. Our exploration licence and mining lease approval processes ensure that strict environmental standards are met. There is a legitimate and healthy public debate about whether, despite these strict environmental standards, specific areas of our state should be off limits for mining altogether.

That debate has manifested itself over the Arkaroola Wilderness Sanctuary, which has been raised with me repeatedly. I certainly recognise the unique and sensitive environmental, cultural and heritage values of this site, which I visited last year. It is a stunning landscape, rich in flora and fauna, and I found its beauty to be compelling.

The government renewed the conditional one-year exploration licence for Marathon Resources to explore an area within the Arkaroola sanctuary at the beginning of this month as we were legally obliged to do. It is important to note that this is an exploration licence that in no way confers a right to mine. Before the renewal was granted, the company was advised that the government is examining options for the future conservation management of the Arkaroola sanctuary.

As the company was advised, these options could include the exclusion or limiting of future mining in the environmentally sensitive area of the Arkaroola sanctuary, including areas that are subject of the company's lease. Another option is the designation of the Arkaroola sanctuary as a national park under the National Parks and Wildlife Act 1972, which would demonstrate a commitment to the protection and enhancement of the conservation, landscape and heritage values of Arkaroola. Although there has been—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —some media speculation about this possible option, no decision has been made by the government. It needs to be understood that conferring national park status would not necessarily preclude mining and could leave the way open for future governments to allow mining at Arkaroola. It is suggested by the Sprigg family, operators of the Arkaroola sanctuary, that declaring the area a national park would pose serious problems for existing tourism operations at Arkaroola, whereas a definitive ban on mining could allow their tourism operations to proceed unchanged.

Another option is to have Arkaroola placed on the National Heritage List and thereafter on the World Heritage List in conjunction with a ban on mining. Such listings would reflect the significant heritage values of Arkaroola and would provide an additional level of protection to the area for all time.

We will be considering all of the available options to preserve the iconic Arkaroola sanctuary. To be clear, all options, including a definitive ban on mining at Arkaroola, are on the table. It would, however, be inappropriate for the government to make a decision like this without consulting native title holders, pastoral leaseholders, and holders of the exploration licences, not just Marathon.

The government will announce its intentions about how to best protect Arkaroola once that consultation has been completed. To this end, I have asked the Minister for Environment and Conservation and the Minister for Mineral Resources Development to lead the consultation process on the conservation management of Arkaroola. Following the consultation process, recommendations for the future management of Arkaroola will be brought to cabinet and an announcement made.