MINERAL RESOURCES

Mr PICCOLO (Light) (14:57): My question is to the Minister for Mineral Resources and Energy. Can the minister inform the house of the new mineral resources projects recently approved by the state government?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Manufacturing, Innovation and Trade, Minister for Mineral Resources and Energy, Minister for Small Business) (14:57): I thank the member for his question and his keen interest in mining. The South Australian mining industry is going from strength to strength. The billions of dollars in spending on exploration in this state unleashed by the Plan for Accelerating Exploration (PACE) and government pro-mining policies has put us in a fantastic position.

Some of the world's most significant mineral discoveries are now either underway or nearing production. Last week we saw South Australia's next major uranium mining development come a step closer with the granting of a 10-year mineral lease for the Four Mile project near the Beverley uranium mine in our state's Far North. PACE funding played a crucial role in discovering the resource at Four Mile, one of the most significant uranium deposits anywhere in the world in the past 25 years.

The lease, accepted by Quasar, an affiliate of Heathgate Resources and Alliance Resources, allows these joint venturers to develop a mining and rehabilitation program for the Four Mile project. The joint venture plans to minimise the environmental disturbance by processing the resource at the existing Beverley facilities as they work to realise the potential of this mine, believed to contain a grade of uranium that is, at some estimates, 10 times higher than that found at Olympic Dam. Heathgate has run a first-class operation at Beverley, employing more than 200 people for more than a decade, and I am hopeful similar practices can be adopted at the nearby Four Mile operation.

This project is the latest in a pipeline of uranium projects and operations that will help realise the benefits of the mining boom for all South Australians and tap into the growing global demand for energy. Nuclear technology is going to play an important role in delivering the world's energy needs in a carbon constrained world. Furthermore, uranium will be a significant part of the energy mix for both China and India as these economic powerhouses continue to develop and urbanise. China's domestic production of uranium can only meet a small part of the demand created by its 13 operating nuclear reactors and the 27 more under construction. India, on the other hand, is expected to increase its use of nuclear power from its current 3 per cent of electricity generation to 40 per cent by 2050. As India lifts hundreds of millions of people out of poverty it will need more energy, and South Australia is well placed to be a supplier of uranium to this growing market.

This week we have also seen approval given to the new owner of the Mindarie project to resume mining mineral sands near Karoonda in the Murray Mallee. The new owner and operator of the Mindarie mine, Murray Zircon, has worked closely with the community during the past year and has committed to a comprehensive technical program to complete the rehabilitation of land disturbed by the former operations.

The important lesson here is that the company's efforts to rebuild a social licence to operate has ultimately delivered a level of confidence in the government, local communities and farmers that this project can progress harmoniously within this important primary producing region. Murray Zircon has worked closely with the community during the past year and has committed to a comprehensive technical program to complete the rehabilitation of land disturbed by the former mining operations.

As more mineral resource projects come online, the success of our expansion should not simply be measured solely in terms of mine output and export dollars; it is also about innovation, the development of skills, and the creation of employment opportunities for people in our regional towns and cities. We are committed to managing our transition into a global mining giant, and that benefits all South Australians. We wish both these projects the best of luck.