Copper Mining

Ms HILDYARD (Reynell) (14:43): My question is to the Minister for Mineral Resources and Energy. Can the minister inform the house of any significant outcomes from trials of a new process to improve the quality of copper in concentrate from South Australia's copper belt?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:44): More good news, sir, hence the wailing from members opposite. I want to thank the member for her keen interest in all things resources and her keen interest in realising the full potential of our mining boom. The copper belt at the heart of our state is home to Olympic Dam and Prominent Hill, and with many more explorers actively seeking similar world-class deposits, this government continues to fund and update geological surveys.

Members interjecting:

The SPEAKER: Will the minister be seated. Against all our expectations, the minister is providing the house with information in accordance with the standing orders. At this stage, interjecting will not receive benefit of clergy. Members who interject are in violation of standing orders and will be warned and removed under the sessional orders. I expect the minister to be heard in silence while he continues to comply with the standing orders.

The Hon. A. KOUTSANTONIS: While my spiritual father is here I am going to be cooperating completely with the house. The state government also provides practical support for research into innovations that will improve the way we process the copper, so we can do more to find it and make it more cost-effective to export to markets across the globe.

A year ago we announced that the state government would grant $10 million to OZ Minerals to support an $18 million research program into advances in processing. OZ had identified HydroMet as a potential game changer for copper producers by increasing the copper in concentrate and therefore adding value to the metal we export from South Australia.

OZ Minerals recently told its shareholders that the company had successfully completed a 19-week trial of the HydroMet process. I am advised that HydroMet combines new chemistry with existing proven technology into a process that can significantly reduce export costs by increasing the quality of concentrate to be shipped. The joint study supported by the University of Adelaide—while members opposite are trying to find if this is publicly available, I am informing the house; I know they are not that happy about OZ being successful.

Mr van Holst Pellekaan: This is great news.

The Hon. A. KOUTSANTONIS: Good, then be quiet and listen. The joint study supported by the University of Adelaide is seeking to further add value to concentrates produced in South Australia's copper belt. About 150 tonnes of copper concentrate from OZ Minerals' copper and gold mine at Prominent Hill was treated in two separate parcels of differing quality. The first parcel achieved an upgrade to 53 to 55 per cent copper, while the second parcel was upgraded to 58 to 60 per cent.

We wholeheartedly support the remarks of OZ Minerals Chief Executive, Andrew Cole, when he says: 'This is a great result for OZ Minerals and a great result for the South Australian copper industry.' The technical data has been collected and reviewed and will be used to make cost-effective improvements so that the process can be applied to a full-scale plant.

These improvements will then be integrated into the future planning for Carrapateena, a copper-gold deposit discovered using PACE funding and acquired five years ago by OZ Minerals. The joint investment in research means that the company has been able to bring forward a decision on its Carrapateena project to 26 February. Quite frankly, without HydroMet, OZ Minerals would almost certainly not be able to build Carrapateena and I look forward to the board's decision.

Our $10 million investment, which was criticised by the opposition, is part of a comprehensive copper strategy that has always been about supporting research that improves the case for Carrapateena and proven technology that can be shared with other copper projects across South Australia to bring forward their investments.

OZ Minerals is now proudly South Australian with the Premier cutting a ribbon on its new head office–unfortunately I couldn't be there—just before Christmas. I wish the Chairman, Mr Neil Hamilton, and the team led by Andrew Cole every success with the results this week showing record copper production and 168 per cent increase in net profit after tax. This South Australian company is already enjoying outstanding returns on their investment, and I hope members opposite now change their view on us investing in OZ Minerals.