Mining and Petroleum Services Centre of Excellence

Mr HUGHES (Giles) (14:02): My question is to the Minister for Mineral Resources and Energy. How is the Mining and Petroleum Services Centre of Excellence contributing to unlocking the full potential of our mineral, energy and renewable assets?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:03): I would like to thank the honourable member for his question and his continued interest in the resources sector and the objectives outlined under our economic priorities. One of those objectives is to establish South Australia as a mining services hub for the nation, and the Mining and Petroleum Services Centre of Excellence is playing a key role in this area.

As part of the Mining Industry Participation Office, the centre's mission is to establish South Australia as a nationally recognised hub for minerals and energy supply-chain capability. The government has made a five-year, $10 million commitment to the Mining and Petroleum Services Centre of Excellence to provide innovation seed funding to develop the state's strategic capabilities. The centre of excellence aims to:

develop South Australia's reputation as a centre of excellence;

link the resources sector to homegrown applied research;

link local services companies to resource companies;

support the development of innovative solutions and industry-wide challenges; and

increase the competitiveness and reduce costs for the resources sector.

We also want to assist South Australia to unlock its mineral energy potential. We are already experiencing the benefits of this ongoing program. The current round of funding closed on 19 July, and I am informed that some very interesting applications and innovative ideas have been put forward that are under consideration. Companies that have already collaborated with the centre include BHP Billiton, Santos, OZ Minerals, Beach Energy and IMPTEC, just to name a few.

The Centre of Excellence also works with academic institutions such as the University of South Australia and TAFE. IMPTEC's superfine crusher technology is a great example of how industry and government can collaborate to significantly reduce costs and improve productivity for the global resource industry. The state government's $136,000 contribution to the project builds on the $1.14 million of industry funding, with the aim of manufacturing the superfine crusher in Adelaide for global distribution.

The centre is also working with Centrex Metals on its molten salt mineral processing technology, the Oxley Potash Project. Centrex is investigating the use of molten salt roasting technology to transform potassium feldspar into potash fertiliser. A three-year research program will be run at UniSA, expanding on the unique high-temperature molten salt capabilities at the Barbara Hardy Institute. The facility at Mawson Lakes is the only one of its kind in the Southern Hemisphere and its activities currently focus on solar thermal energy.

The research widens that focus to incorporate the uptake of molten salt technologies for the resources sector, with the potential to benefit South Australia's strong mineral processing and smelting technology base. The development of molten salts mineral processing capabilities at UniSA will potentially create a global centre for further developing molten salt extraction applications to mineral projects right here in South Australia. New equipment designs, particularly around molten salt transfer systems and materials engineering, will also directly benefit our solar industry.

The research being carried out on this technology at Mawson Lakes provides opportunities to complement the South Australian government's Low Carbon Investment Plan. The South Australian government, through the Centre for Excellence, is providing $28,000 to stage 1 of this project, with Centrex Metals providing $100,000 in cash and in-kind support. UniSA is providing $24,000 and a further $105,000 in-kind support and the Minerals Research Institute of Western Australia with a further $28,000. It is a fantastic example of industry, government and the mining sector working together.