Resources Sector

Mr HUGHES (Giles) (14:46): My question is to the Minister for Mineral Resources and Energy. Minister, can you inform the house of the outcome of the latest JUMEX survey of explorers working in the resources sector?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:46): As a matter of fact, I can, sir. I would like to thank the member for his question and his keen interest in the JUMEX survey and the work they have done. It is a timely question. The government has made efforts to unlock the full potential of the state's vast resources and energy potential so that we can create jobs and greater prosperity for all South Australians.

For seven years now, Grant Thornton, an independent insurance, tax and advisory firm, has carried out a survey of junior mining and exploration companies to provide a comprehensive market overview of the sector. I think it is fair to say that the most recent survey was conducted after a number of very challenging years for the resources industry. Falling global commodity prices and a decline in share prices for many smaller mining exploration companies have made it a very difficult environment to raise capital funding for drilling opportunities. We haven't been immune in this state to those global headwinds, but we have taken several steps to support the resources sector during this downturn.

The pleasing outcome of the most recent JUMEX survey is that junior miners and explorers in Australia are reporting a definite and sustained improvement in market conditions. That is not to say that the challenges do not remain—they do. The survey found that funding is a persistent concern amid intense competition for capital and that the search for investors is more global than ever. Amid those challenges, the survey identified South Australia as an attractive investment destination for minerals exploration in Australia, second only to Western Australia, which has obviously a very large endowment and a wide variety of mineral resources and a much more developed sector.

The survey found that South Australia was regarded by investors as generally a very positive environment for mining projects. On the other hand, Queensland, New South Wales and Victoria were regarded as the most challenging locations from a regulatory perspective, with many investors reporting negative experiences with investments in those locations. The survey highlighted the need for companies to embrace innovation and, obviously, new technologies to drive efficiencies and lower their costs.

The government has repeatedly said that it is time for South Australia to put in both policies and programs to ensure the state is best placed to benefit from what will be an inevitable recovery of the resources sector. Mr Speaker, you would be keenly aware that South Australia has consistently been rated above most Australian states in the past decade due to the long-sighted approach we have taken to support this sector in South Australia. Our multi-award winning South Australia Drill Core Reference Library is an incredible resource to help foster exploration success.

The Hon. J.J. Snelling: He was a very good treasurer who funded that.

The Hon. A. KOUTSANTONIS: Yes, he was. Our copper strategy has set an ambitious target for a tripling in production, and we have supported that objective through a $20 million investment in funding for PACE copper to provide geological data to better identify targets and then provide co-funding through a Discovery Drilling program to partner explorers in the search for discoveries.

Mr Knoll interjecting:

The Hon. A. KOUTSANTONIS: Yes, I would like an answer to that. How did you cough that up?

Mr Knoll interjecting:

The Hon. A. KOUTSANTONIS: You were 15, were you? Don't blame me, I was in high school. Work continues to develop a magnetite strategy to harness South Australia's iron ore potential and to secure investment in major projects.

South Australia has a great track record for driving innovation through the Mining and Petroleum Services Centre of Excellence, as well as our support for the research conducted by the Deep Exploration Technologies Cooperative Research Centre. I am confident that these programs will ensure that as the global commodity industry recovers so, too, will our resources sector for the benefit of all South Australians; and hopefully multiple land-use strategies can become a bipartisan policy rather than the opposition continuing to support 'lock-the-gate' campaigns and locking out miners from very wealthy deposits.