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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-05-17 Daily Xml
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Ministerial Statement

OLYMPIC DAM

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:05): I seek leave to make a ministerial statement.

Leave granted.

The Hon. M.D. RANN: The Olympic Dam expansion project has taken another crucial step with the publication last Friday of the supplementary EIS. The supplementary EIS is BHP Billiton's response to the almost 4,200 government and public submissions made following publication of the draft EIS in May 2009. It proposes answers to key questions raised during the lengthy consultation process, as well as dealing with the range of environmental issues that accompany a multibillion-dollar project of such scale and complexity.

The federal, South Australian and Northern Territory governments will take account of expert advice, as well as public submissions, before reaching our respective development decisions which are expected before the end of this year. We remain strongly committed to ensuring that every aspect of this expansion project is subject to the most stringent environmental legislation and standards.

I am encouraged that BHP Billiton has committed to a number of sustainability measures, such as using renewable energy to power the desalination plant and water pipeline, and solar hot water systems at Hiltaba Village. BHP Billiton will also sign up to South Australia's ambitious greenhouse gas reduction strategy and is proposing to use solar energy to supplement electricity required for the operation of the proposed airport and a cogeneration plant to capture waste heat to produce electricity.

I am also pleased that BHP Billiton has, in response to numerous submissions, selected an alternative installation method for the outfall pipe of the desal plant on the Spencer Gulf—a tunnelling rather than a trenching method. This decision considerably decreases ecological impact and significantly further ensures the protection of cuttlefish breeding and habitat.

In my view, this is vital. We cannot allow the Spencer Gulf environment to be spoiled. I know that Madam Speaker, who is also the local member, has been leading the charge in terms of minimising impacts on the Spencer Gulf. It is critical that we get this right. This is the final stage of a comprehensive and rigorous assessment of the project: it is not a rubber stamp.

Conditional upon receiving the necessary approvals, BHP Billiton could begin work on what will become the world's biggest mine. The mine site itself is equivalent to the distance between Gepps Cross and Flagstaff Hill, with the hole in the ground about the size of the Adelaide CBD area. The expansion would see an unprecedented fleet of giant earthmovers and trucks take five years of daily digging to actually reach the ore body, which will allow the real mining to begin.

Olympic Dam is the world's largest uranium deposit and the fourth-largest gold resource on the planet. As I understand it, it is the fourth-largest copper deposit, currently producing around 180,000 tonnes of copper each year. Under the proposed expansion, this will increase more than fourfold to around 750,000 tonnes per annum. The project will create thousands of jobs from a resource that could last 100 years.

The benefit of the Olympic Dam development to the South Australian economy and communities will be both immense and long term. The expansion would result in a huge increase in employment opportunities throughout the state. BHP Billiton estimates that the Olympic Dam expansion will generate up to 6,000 new jobs during construction, a further 4,000 full-time positions at the expanded open pit mine and an estimated 15,000 new indirect jobs. This includes thousands of opportunities for local contractors, businesses and service providers in Adelaide, as well as, of course, in regional centres, such as Whyalla and Port Augusta, and regional towns.

The South Australian government is ramping up its work as the expansion moves closer to crucial decision points. We have allocated $9.8 million to our Olympic Dam Task Force, which has been established to facilitate the project and to coordinate the approvals process. The government's team, including me as Premier, ministers Kevin Foley and Tom Koutsantonis, as well as the task force chair, Bruce Carter, and chief executive Paul Heithersay, is also negotiating with BHP Billiton about key issues for our state. These include royalties, infrastructure, water, energy, indenture legislation and maximising the amount of minerals processing undertaken in our state, rather than offshore.

We are especially keen to ensure there are job opportunities for regional South Australians, a positive impact on our regional cities and towns, and opportunities for disadvantaged communities, families and individuals who are traditionally left out, or left behind, particularly Aboriginal people. This is a project which will benefit our state for decades to come. Our job is to ensure that we get the maximum benefits for South Australia and South Australians from the development of this vast resource.

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