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Legislative Council - Fifty-First Parliament, Second Session (51-2)
2007-11-22 Daily Xml
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INFRASTRUCTURE INVESTMENT

The Hon. I.K. HUNTER (14:40): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about infrastructure investment.

Leave granted.

The Hon. I.K. HUNTER: South Australia's Strategic Plan has set a target for production and processing of mineral resources of $4 billion by 2014. Will the minister provide the chamber with an update on the work being undertaken by the state government to identify priority areas for investment in South Australia's infrastructure to help meet this objective?

The Hon. P. HOLLOWAY (Minister for Police, Minister for Mineral Resources Development, Minister for Urban Development and Planning) (14:41): I can confirm that South Australia's Strategic Plan sets a target for production and processing of mineral resources of $4 billion by 2014. However, proper planning will be a key to meeting and possibly exceeding that goal. To this end the Rann Labor government recently established a high level task force to ensure that South Australia capitalises on a resource sector that is moving rapidly from exploration to extraction.

The new Resource and Energy Sectors Infrastructure Council (RESIC) has been established to plan and develop viable, fit for purpose infrastructure that can support mining operations in South Australia, comprising a focus group of senior resource sector executives and public servants. This group will identify the issues and plan the way forward in what is an absolutely crucial sector for South Australia.

The task force is to be chaired by Paul Dowd of Adelaide Resources and is expected to meet quarterly. RESIC will also provide a monthly update in the form of a document that will be available to the public. Except for the chairman, the members of RESIC will give freely of their time to this important task, and I thank them for their generosity in that regard.

The eight industry representatives of this high-powered task force will comprise Tino Guglielmo of Stuart Petroleum Limited, Graeme Hunt of BHP Billiton, Reg Nelson of Beach Petroleum, John Roberts and Jason Kuchel of the South Australian Chamber of Mines and Energy, Hans Umlauff of Iluka Resources, Jim White of OneSteel and Mick Wilkes of Oxiana. They will be assisted by state government representatives from the Department of Transport, Energy and Infrastructure, the Department of Trade and Economic Development and Primary Industries and Resources SA, as well as Bruce Carter of the Olympic Dam task force.

The stature of the task force membership is a recognition, both by this government and the industry, that the provision of infrastructure for the mining sector needs to be planned and implemented strategically if South Australians are to enjoy the maximum benefits. South Australia has been punching above its weight in infrastructure and economic development for some time now. Private new capital investment has reached an all-time high and the outlook for business investment in South Australia remains strong.

An Australian Bureau of Statistics survey found businesses expect new capital expenditure during 2007-08 to be 11 per cent higher in South Australia than expectations for 2006-07, a year earlier. More than 20 mining projects, accounting for at least $20 billion in capital spending over the next decade, are either underway or in the pipeline in South Australia.

The latest example of this investment is the decision by Australian Stock Exchange listed Iluka Resources to lodge a mining lease proposal for its heavy mineral sands project in the Eucla Basin north-west of Ceduna. The detailed mining lease proposal for the Jacinth-Ambrosia heavy mineral sands project falls within the Yellabinna and Nullarbor regional reserves. This proposed project will deliver significant economic and social benefits to South Australia, contributing about 3 to 5 per cent of the South Australian Strategic Plan target for increased mineral production investment.

Iluka Resources in the Jacinth-Ambrosia heavy mineral sands project will contribute about $470 million to the state's economy and generate 110 permanent jobs during operation of the mine. Up to 250 jobs are expected to be created during the construction phase of the project, with a large percentage of these positions to be filled locally, which includes opportunities for indigenous workers. Elsewhere, investment spending in infrastructure in South Australia is also growing at a rapid pace.

Transport infrastructure projects already underway include the $564 million Northern Expressway to link Edinburgh in Adelaide's northern suburbs with Techport Australia—an area poised to become the nation's premier naval and defence industry hub. The Rann government's transport infrastructure program also includes a $118 million upgrade of the South Road/Anzac Highway intersection and the $178 million stages 2 and 3 of the Port River Expressway project. The Port of Adelaide is also undergoing a massive infrastructure program to reinforce Outer Harbor as a modern competitive export/import hub for South Australia.

The ongoing mining and resources boom creates opportunities and challenges for this state to provide new energy, transport and water infrastructure that will benefit not only the mining industry but, where possible, also surrounding regions. These projects include BHP Billiton's expansion of Olympic Dam, Oxiana's Prominent Hill development, Australian Zircon's Mindarie mineral sands mine, Uranium One's Honeymoon uranium mine, and Terramin Australia's Angas zinc project. With such an array of mining projects, it is only timely that the South Australian government has established such a high profile infrastructure task force to help identify areas of priority for the resources industry.

RESIC will operate through the Office of Major Projects and Infrastructure within the Department for Transport, Energy and Infrastructure and report to the Minister for Transport, Energy and Infrastructure. The task force will monitor resource sector growth, time lines, quantities processed and logistic chains; prepare information and make recommendations across government; and review, coordinate and centralise existing infrastructure plans from across government.

The creation of RESIC was recommended by the South Australian Chamber of Mines and Energy and supported by the parliamentary Natural Resources Committee, PIRSA, DTEI and the Department for Trade and Economic Development.

This demonstrates yet again that the Rann Labor government has listened and responded to the industry, and the government is pleased to be able to work proactively with the South Australian Chamber of Mines and Energy and industry on this key imitative. This is a way of harnessing some of the extensive expertise among those within the South Australian public sector and from a highly successful private sector.

The task force will, I am certain, provide some innovative planning ideas for and practical solutions to the future infrastructure needs of the resource sector. By working together, we can ensure best practice, while also capitalising on what is a wonderful opportunity to usher in a new era of prosperity for all South Australians.

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