MINERAL RESOURCES

Mr ODENWALDER (Little Para) (14:47): My question is to the Minister for Mineral Resources and Energy. Can the minister inform the house of recent developments across the resources sector?

Members interjecting:

The SPEAKER: Order!

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Manufacturing, Innovation and Trade, Minister for Mineral Resources and Energy, Minister for Small Business) (14:48): I thank the member for his question and his keen interest. The government recognises the benefits created for this state and the people of South Australia through an expanding resources industry. We are committed to ensuring that this vital industry continues to grow sustainably, ensuring the benefits of the mining boom are realised for all South Australians.

The South Australian resources sector has undertaken a remarkable transformation. The most recent ABS report on mineral exploration figures shows that spending on mineral exploration in South Australia hit a post global financial crisis high in 2011-12. These figures show that spending on mineral exploration in South Australia rose to $328.4 million in the 12 months to the end of June 2012. This is an increase of 28.9 per cent compared with the same 12-month period in 2011. Further, combined spending on mineral and petroleum exploration in South Australia during the same period exceeded $500 million. This is only the second time this milestone has been reached.

I can today also announce that bids have been opened up for two new onshore petroleum exploration licences in the Otway and Cooper basins. Previously offered acreage in the Cooper and Otway basins attracted bids of combined exploration of $52 million and $40 million respectively, and I am confident of similar offers for this current acreage. It is clear that the government's PACE 2020 initiative and South Australia's reputation for having the world's best precompetitive data continue to attract exploration well above $300 million per year.

Unlike some who seem to talk down our great state, this state government joins with industry and community in celebrating the standout success of the combined mineral and petroleum sectors, demonstrated by growth in production. This government recognises that exploration leads to discovery and subsequently production. With five of the nine world-class discoveries in Australia made in South Australia over the last decade—including Jacinth Ambrosia, Prominent Hill, Carrapateena, Four Mile and Hillside—our state's resources sector has a strong and robust future.

In the 2011 calendar year, production reached a record $6.5 billion, increasing by $1.6 billion from $4.9 billion in 2010. That is 31 per cent more production on the previous year. The value of minerals exported by South Australia in 2011 totalled $4.2 billion, up $927 million or 28 per cent on the previous year. In fact, mineral exports have quadrupled since 2004 and doubled since 2006. Over $8 billion of new capital expenditure has been invested in mining in this state over the last seven years.

New mines or the expansion of existing mines over the past 12 months include: Hillgrove Resources, $144 million; Uranium One's Honeymoon uranium mine, $118 million; OZ Minerals' Ankata Project, $135 million; Heathgate Resources' Beverley North uranium mine, $50 million; and Arrium's hematite extension project, $390 million. We also maintain a strong pipeline of diverse mineral development projects. These include: Rex Minerals' Hillside copper project, between $650 million and $800 million; Altona Energy's Arckaringa coal-to-liquids, $3 billion; Arrium's Project Opal, $600 million; Quasar-Alliance's Four Mile uranium project, $112 million estimated. It is clear for all to see that the South Australian resources sector goes from strength to strength, with strong performance and sustained levels of long-term growth.