Mining Industry

The Hon. T.R. KENYON (Newland) (14:55): My question is to the Minister for Mineral Resources and Energy. Can the minister inform the house about the current status of the South Australian mining industry and the government's role in supporting this industry's important contribution to the South Australian economy?

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:56): I would like to thank the member for Newland for his question. He is a true fan of the mining industry. It's fair to say that the past few years demonstrate that our mining industry is one that is built on resilience. I am confident that the industry has weathered the storm and that 2017 will be marked by renewed growth and increasing optimism.

The fundamentals tell the story: continued improvement in commodity demand and prices that support an upswing for our miners. Mining is an industry that directly employs around 10,000 people in South Australia, not to mention all the additional businesses across South Australia that support miners and our explorers.

In the past year, 450 additional mining jobs have been created across this state. These jobs have come from OZ Minerals' Carrapateena project, which employs 50 people; WPG Resources' Tarcoola goldmine and renewed production at Challenger goldmine, creating 215 jobs; new operations at Cu-River's Cairn Hill mine, employing more than 60 people; and Olympic Dam's southern mine area extension, adding 120 jobs to BHP Billiton's already significant workforce.

That is the reality, but the outlook is also promising. Analysis published by the Resources and Engineering Skills Alliance found that 111 mining and resource jobs were advertised in South Australia in January, traditionally a very quiet month for that type of recruitment. January's result was the eighth straight month of positive jobs growth in the South Australian mining sector and the second highest number of jobs advertised in a month since 2014.

Almost 60 per cent of those jobs were in regional South Australia. Mr Speaker, as you know, these new direct jobs have flow-on benefits that impact on businesses and on families across the state and, in particular, on those regional communities where those people live. South Australia has reported 17 consecutive months of employment growth, generating a record number of South Australians in work, and the mining sector is playing its role. This government recognises that the future prosperity of our state will continue to be built on the diversification of our economy and, of course, the resources sector.

We know that maintaining our longstanding commitment to encouraging exploration investment will unlock new discoveries that will deliver jobs in this sector for future generations. To maintain the state's edge as a top 10 destination in the world for investment attractiveness in the minerals sector, I have instructed my department to undertake a comprehensive and transparent legislative review of the Mining Act. In developing those legislative reforms, we are consulting with all stakeholders in this critical industry.

We believe on this side of the house that we don't just roll out policies without first talking to the people who are affected by them. We want to make sure that we consult with them so they understand what the impacts will be so we can make better informed decisions. I am confident that our mining industry has weathered the challenging times and that our strategies, developed in partnership with the mining industry and the community, are perfectly placed to seize the opportunities created by the recovery of commodities prices.

Jobs growth is just one indicator that highlights the benefits that flow to the South Australian economy through this government's efforts to unlock the full potential of our state's mineral assets. Banning mining and stopping exploration of these resources that belong to all South Australians is folly. It hurts the economy, not helps it.