MINING DEVELOPMENT, YORKE PENINSULA

Mrs GERAGHTY (Torrens) (14:59): My question is to the Minister for Mineral Resources Development. Can the minister inform the house of the mining developments on Yorke Peninsula?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Mineral Resources Development, Minister for Industry and Trade, Minister for Small Business, Minister for Correctional Services) (15:00): As a matter of fact, I can. I thank the member for Torrens for her question. I am pleased to inform the house that Rex Minerals Hillside project, about 12 kilometres south of Ardrossan, has taken a major step forward. Since 2009, Rex Minerals has been developing its Hillside iron ore, copper and gold deposits. Rex has informed the Australian Stock Exchange that it has expanded its Joint Ore Reserves Committee compliant mineral resource estimate by 25 per cent. The new inferred and indicated resource estimate is equivalent to 1.5 million tonnes of copper and 1.4 million ounces of gold. The updated mineral resource estimate also includes the first estimate for a significant amount of iron ore, with an inferred resource of 12.4 per cent iron.

It is now being reported that Hillside is a billion dollar mine. Furthermore, Rex has released the first details of a conceptual mining study for a minimum 12-year mine life at Hillside. The project is currently going through feasibility planning stages but mine development is expected to start in 2014 with first production in 2015. If this project goes ahead, it will be a massive coup for the people of Yorke Peninsula. Yorke Peninsula was formed on the back of mining—

Mr Griffiths interjecting:

The Hon. A. KOUTSANTONIS: I don't think he will. You won't because you are a good local member of parliament and you work hard. That is why you won't lose your seat. Unlike the guy sitting next to you who will lose his seat one day.

Yorke Peninsula was formed on the back of mining and at one stage the copper coming out of this region was effectively the backbone of the South Australian economy. Projects like this could help return Yorke Peninsula to the mining spotlight. I am very excited not only about the increased investment and positive economic impact this project will bring but also the interest it will create in the mining community.

The fact that the tonnage of the Hillside resource is now approaching that of the current Prominent Hill resource—which is amazing—shows how much potential prospectivity there is on Yorke Peninsula. Hillside is the latest in a series of iron ore, copper and gold deposits discovered only in the last decade, demonstrating the further presence of undiscovered resources in the eastern Gawler Craton. The Gawler Craton is an area which is considered worldwide as one of the most prospective on the planet. I am confident that, as a result of this updated estimate by Rex Minerals, there will be even more exploration on Yorke Peninsula.

I want to congratulate Rex Minerals on their announcement and wish them all the very best of luck as this project continues, and congratulate the local member of parliament on his full support for mining endeavours on Yorke Peninsula.