CARRAPATEENA DEPOSIT

Ms FOX (Bright) (14:24): My question is to the Minister for Mineral Resources Development. Can the minister please advise the house about the latest developments for the sale of the Carrapateena site?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Mineral Resources Development, Minister for Industry and Trade, Minister for Small Business, Minister for Correctional Services) (14:24): A sale and purchase agreement was reached between OZ Minerals and vendors Rudy Gomez Tech Australia Pty Ltd and other minorities in March in relation to the Carrapateena project. Today, Madam Speaker, I want to inform the house that ministerial consent has been given for the transfer of exploration licences covering the Carrapateena project near Port Augusta. This is another significant step in the process of transferring full ownership of the Carrapateena deposit to OZ Minerals.

The Carrapateena deposit is an iron oxide, copper-gold uranium deposit. In terms of mineralisation, OZ Minerals draws comparisons between Carrapateena and its current Prominent Hill deposit. I have been informed that OZ Minerals and the vendors are nearing completion of the other requirements outlined in the sale and purchase agreement, and it is anticipated that settlement for the transaction will take place very, very soon.

OZ Minerals Managing Director and CEO, Terry Burgess, said in his ASX release on Monday:

We have commenced recruitment and are delighted again with the efficiency and professionalism of our dealings with the South Australian government.

This is another firsthand example, of the Rann government's strong commitment to the resources sector and our preparedness to work closely with the industry, to encourage exploration and development activity and to create a climate of investment certainty.

One of the driving forces behind the resurgence of mining in South Australia has undoubtedly been the Plan for Accelerating Exploration, better known, of course, as the PACE initiative. PACE has been recognised worldwide as one of the most innovative government schemes, and it has directly contributed to the surge in mining exploration and the identification of many new mineral deposits. They include—

Mr Williams interjecting:

The Hon. A. KOUTSANTONIS: Well, you're the only man in the world who says that. They include the Carrapateena copper and gold deposit in our state's north.

Mr Williams interjecting:

The Hon. A. KOUTSANTONIS: I think that the shadow minister's interjections say more about him and his relationship with the mining industry than anyone else. This project is located 130 kilometres north of Port Augusta and 250 kilometres south-east of the existing OZ Minerals' Prominent Hill mine.

Members interjecting:

The SPEAKER: Order!

Mr Griffiths interjecting:

The Hon. A. KOUTSANTONIS: Thank you. It lies with the highly prospective Gawler Craton region of South Australia. OZ Minerals ranks Carrapateena as one of the largest undeveloped copper projects in Australia, despite what the Deputy Leader of the Opposition says. Now, I was—

Members interjecting:

The SPEAKER: Order! There is too much background noise. I cannot hear the minister. Minister.

Mr Pengilly interjecting:

The Hon. A. KOUTSANTONIS: Sorry?

Mr Pengilly interjecting:

The Hon. A. KOUTSANTONIS: If I was your age, I'd have it that big, too.

The SPEAKER: Order! We will have no aspersions about age!

The Hon. A. KOUTSANTONIS: I was recently at the OZ Minerals' Prominent Hill mine site and I was very impressed by the operation. It is always great to see firsthand the opportunity that this industry is creating for the people of South Australia.

Madam Speaker, I met with the traditional landowners, many of the mine workers and several of the small business owners who have contracts with the mine for the provision of services. I have been told that over 20 local businesses are currently engaged at Prominent Hill, and during 2010:

$12 million was spent in the Coober Pedy region;

$7.5 million in the Upper Spencer Gulf; and

$80 million within South Australia.

OZ Minerals is a shining example of integrating into the existing community and adding real value to local communities—be it socially or economically—and I am sure that this will be further advanced with the development of the Carrapateena site.

This government is here to work with the mining industry, despite the opposition and the shadow minister, and this is another clear example of the success that is being achieved. I want to congratulate Terry Burgess and the team at OZ Minerals for their investment at the Carrapateena site, the local economy and the people of South Australia.