Mineral and Energy Resources

The Hon. T.R. KENYON (Newland) (15:29): My question is to the Minister for Mineral Resources and Energy. Can the minister update the house on initiatives to assist South Australia to reclaim its mantle as one of the world's major suppliers of copper?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy, Minister for Small Business) (15:29): I want to thank the member for his question and his enthusiastic support for unlocking the full potential of our state's resources. I note members opposite mocking our copper strategy in the previous answer—member for the Eyre Peninsula, the member for Finniss, openly mocking—

Mr Treloar: Flinders.

The Hon. A. KOUTSANTONIS: Flinders, is it? Sorry. We mark a 40-year milestone in the history of the resources sector in this state. In 1975, a secret was unlocked under hundreds of metres of weathered rock (sandstone and limestone) in our state's north. Nine holes were drilled and there were nine misses, but it was RD10 on the tenth attempt that, at 170 metres below the surface, Western Mining struck copper. That was the genesis of Olympic Dam, the world's fourth largest copper deposit and the world's largest uranium deposit. Forty years ago is a long time. Even the member for Mount Gambier was a young man 40 years ago.

Quite frankly, I think we are well overdue for another discovery in this state to rival Olympic Dam. This week we announced 20 million reasons why explorers should be looking to South Australia and their own chance to write their way into our nation's history books. Exploration is not easy. Most of South Australia's resources lie hidden deep under cover, but technology and our ability to analyse seismic surveys and geochemistry have come a long way in 40 years. I am confident that, if you provide the explorers with the knowledge and the tools, they will come and so will the discoveries.

There is a lot of terrain to cover, and the $20 million PACE copper program will rekindle the search, with the world's largest airborne survey taking in the western frontier of our state's copper belt. At 444,000 square kilometres, the survey is covering an area larger than California. Our investment aims to generate more than $400 million in private mineral exploration return for the state, and create and retain up to 1,000 direct and indirect jobs within the minerals industry and services sector.

Our expectations are based on previous experience borne out by the success of PACE since its inception more than a decade ago. The state government is prepared to share the risk, because PACE demonstrates that these partnerships lead to jobs and discoveries. In these challenging times when capital and finance drilling programs are scarce, PACE is more important than ever. It is not just me saying it. Jason Kuchel, the chief executive of the South Australian Chamber of Mines and Energy—a member of the Liberal Party, I understand—said:

The Government recognises just one single mine can be a game changer for the State's economy…Bold action must be taken. Focusing this on the natural advantages and opportunities of the State's resources wealth is the right direction for the government to be taking.

Mr Knoll interjecting:

The DEPUTY SPEAKER: Order! The member for Schubert is called to order.

The Hon. A. KOUTSANTONIS: Adelaide Resources Chairman, Mr Colin Jackson, also yesterday used an address to shareholders to acknowledge the role PACE funding played in maintaining its drilling program—

Mr Knoll interjecting:

The DEPUTY SPEAKER: You are now warned for the first time, member for Schubert.

The Hon. A. KOUTSANTONIS: —and I thank him for his acknowledgement. As he pointed out, when today's investor expects instant gratification, PACE allows companies to maintain their persistence.

Mr Knoll interjecting:

The DEPUTY SPEAKER: Member for Schubert.

An honourable member: Chuck him out.

The DEPUTY SPEAKER: I might have to.

The Hon. A. KOUTSANTONIS: In exploration, as in many things, persistence is the key to success, and PACE copper will allow South Australia to maintain its persistence in pursuing our goal of regaining our position as a titan in the world of mining and persistence in achieving our objective of tripling copper production to one million tonnes by 2030. Copper has a key role to play in the world's advancement. I note that members are bemoaning the spending of $20 million, but I believe it is essential for renewable technologies that will help us combat climate change and global warming, and the building block of modern urbanised communities so, when the world post Paris looks to a supplier for copper to build their modern carbon-free economies, I want them to look to South Australia.