Diesel Storage Facility

Mr HUGHES (Giles) (15:05): My question is to the Minister for Mineral Resources and Energy. Can the minister inform the house about diesel storage developments in South Australia?

Mr Pengilly: It was in the paper about a week ago, Ed.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (15:06): I'm glad you can read. We're all amazed.

Members interjecting:

The SPEAKER: The Treasurer will immediately withdraw and apologise for that remark.

The Hon. A. KOUTSANTONIS: I withdraw and apologise, if I offended the member.

Members interjecting:

The SPEAKER: Could the minister just withdraw and apologise unreservedly, and not make it conditional on the member being offended.

The Hon. A. KOUTSANTONIS: I unconditionally and unreservedly apologise to the member for suggesting anything about him, sir.

The SPEAKER: The minister.

The Hon. A. KOUTSANTONIS: Thank you. While we see global commodity prices and a constrained capital market affecting resource investment, underlying strength is strong. Domestic demand for South Australian resources remains high, and minerals and petroleum production continue to grow, achieving a combined $6.2 billion in 2012-13. More recently, record production of $7 billion was achieved in 2013 with minerals and petroleum sectors reporting production values of $5.4 billion and $1.6 billion respectively.

Continued growth in production of South Australia's mineral commodities and petroleum is a result of ongoing steady production at the state's major mines, significant increases in the state's production of iron ore and growth in oil and gas production from the Cooper Basin. To sustain the growth in mineral and petroleum resource production over the longer term, South Australia maintains more than 900 exploration licences and 30 developing projects in various stages of exploration, resource definition and feasibility or assessment.

The strength and breadth of our world-class minerals and energy projects continue to provide myriad opportunities for all South Australians from the Far North to Eyre Peninsula to right here in Adelaide. These opportunities are many and they are diverse.

Earlier, the government was pleased to welcome the announcement by Tokyo-based Mitsubishi Corporation to establish a diesel import terminal at Port Bonython. This $110 million investment in South Australia will be the corporation's first entry into the Australian fuels market and is a vote of confidence in South Australia and a vote of confidence in the state's diesel-consuming sectors.

Diesel is one of the building blocks of our economy. As our industrial capability grows, so too will our demand for diesel. I congratulate Mitsubishi for having the foresight and desire to capitalise on the continued growth in our diesel-intensive industry. We are seeing record export levels in South Australia, and anticipated growth in our mineral resources and energy, transport and agriculture sectors will mean additional demands for fuel.

This facility, which is expected to be operational by mid-2016, will boost fuel security in South Australia, providing a competitive and reliable supply and helping to underpin future economic growth. A secure diesel supply is vital, and this facility will be part of our arsenal to help grow the state's economy. The new terminal will be an integral piece of infrastructure to both enhance fuel security for the state and launch Mitsubishi's diesel supply, sales and distribution business.

The establishment of this facility will mean the creation of up to 150 local jobs through construction, and 10 ongoing jobs in operations. The project will use the existing deep-water jetty near Whyalla in the Upper Spencer Gulf. Rumours of Whyalla's demise have been exaggerated. Construction of the diesel importation, storage and distribution operation will significantly increase the diesel storage capacity within South Australia and the availability of diesel in the northern regions of the state supporting the local mining and resources industries.

As part of the previously approved development application in the hydrocarbon precinct, a detailed assessment was undertaken ensuring the project is environmentally sound and adheres to strict guidelines. Final designs of the facility will be approved by the Department for Planning, Transport and Infrastructure, and I congratulate the Minister for Transport and Infrastructure on his collaborative role.

The SPEAKER: Time has expired. The leader.