HONEYMOON MINE

Mr HAMILTON-SMITH (Waite) (15:09): My question is to the Minister for Energy. Can he advise the house if the Honeymoon mine is to be mothballed?

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Transport and Infrastructure, Minister for Mineral Resources and Energy, Minister for Housing and Urban Development) (15:09): Yes, it is a sad day when any mine is put into care and maintenance. On 11 November, the government was formally notified that Honeymoon was being put into care and maintenance.

The reasons cited by the company include the current low global uranium spot prices, ongoing technical challenges impacting on the quality and quantities of uranium production, and the subsequent operating cost. It's fair to say that the global uranium market sees significant stresses on current operators. Spot uranium sank to $US34.75 a pound recently—a long way from the record $US136 a pound in 2007.

The government recognises the cyclical nature of the sector and continues to promote and foster investment across a range of commodities to ride the resources wave. I endorse the comments of the SACOME chief executive Mr Jason Kuchel, who says that this is what occurs in the industry. There is no reason to suggest that, if prices do improve, the mine will not be taken out of care and maintenance and operation put back into place. He also says, and I quote:

If the mine is put into care and maintenance it doesn't mean it is dead, never to be resurrected.

The resources remain in the ground to be developed as global markets shift. I'll also note that, recently, in terms of the state's performance, we were once again rated number one by the Minerals Council of Australia, in terms of their scorecard for mining and approvals processes, and that the Minerals Council's latest assessment retains—

The SPEAKER: Yes, that's very interesting, minister, and now can we move on to another question.