Rex Minerals

The Hon. T.R. KENYON (Newland) (14:33): A question is not a reward, sir: it's a right of a member. My question is to the Minister for Mineral Resources and Energy. Are there any developments on the proposed Rex Minerals Hillside mine on Yorke Peninsula?

Mr Tarzia: Thank God the mining tax has gone.

The SPEAKER: The member for Hartley is warned for the first time. Treasurer.

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (14:33): The mining tax doesn't apply to copper. He's a genius, isn't he? I want to thank the honourable member for his question. I am pleased to inform the house today that Rex Minerals has accepted the mining lease offered by the state government for its Hillside copper, gold and iron ore project near Ardrossan. The company has now received all primary and state and federal approvals to allow them to progress the development of the project which would see copper mining returned to the Yorke Peninsula after a 100-year absence—too long.

Rex Minerals has indicated that the extension to the largely completed feasibility study will review a staged development with a lower capital start-up option. This will provide the company with the optimal starting position in which to move towards their ultimate vision of a large scale copper, gold and iron ore mine at Hillside. Our agriculture and mining sectors are crucial sectors of our economy and must coexist for the benefit of our state. This mining lease strikes the right balance between environmental and economic priorities.

As the Minister for Mineral Resources and Energy, I am committed to maximising the benefits of the resources sector. Just last year South Australia produced 262,000 tonnes of copper. That is enough to supply the copper needs for plumbing, roofing, and brass fitting electrical wiring and appliances in over 1.3 million homes. South Australia has seen record employment in this sector of more than 15,000 jobs in 2013, and this month's ABS figures show combined minerals and petroleum exploration reached a record high of $647.6 million for South Australia, up from $616 million in 2012-13.

The Hillside project will only enhance the positive impact of the sector. It has the potential to create hundreds of jobs for the region, diversify the local economy and provide follow-on benefits to local businesses. But the state government also recognises the importance of preserving our state's reputation as a clean green food producer which our farmers and rural communities work so hard for. That is why the mining lease followed extensive public consultation with detailed assessment by all the relevant government regulatory agencies and the very best scientific and technical advice.

The mining lease includes approximately 100 stringent terms and conditions to ensure the environment and the amenity of the area is protected and preserved. These conditions cover everything from dust and traffic management to air quality, heritage and, of course, native vegetation. Real-time monitoring will also be required to ensure our regulations are constantly being met.

The state government's formal assessment report with supporting technical documents will be released on the Department of State Development's website later today, including the terms and conditions of the mining lease. Rex Minerals now has 12 months to prepare a program for environment protection and rehabilitation—their PEPR. It details how the company will meet all of the state government's strict conditions and requirements.

I want to take this opportunity to thank the tireless work of our regulators in overseeing the development of this mining lease. They work incredibly hard to provide the confidence for resources companies to invest in long-term projects here in South Australia. They also provide confidence in the community that our world-best regulatory system will ensure environmental, social and economic impacts are properly managed for generations to come.

I also welcome any feedback from the house and the local member and, of course, we offer him and any other member a full briefing from the department on the conditions, which will be made publicly available later on today. I would also like to thank the opposition for its support in this great endeavour of bringing copper mining back to Yorke Peninsula.

Mr GRIFFITHS: Supplementary, sir.

The SPEAKER: Supplementary, member for Goyder.