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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2008-09-10 Daily Xml
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MINERAL EXPLORATION

The Hon. B.V. FINNIGAN (15:14): Will the Minister for Mineral Resources Development provide the chamber with an update on the level of spending on mineral exploration in this state in the June quarter of this year?

Members interjecting:

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:15): I thank the honourable member for his question, and I can also take the interjection from the Hon. Michelle Lensink who said, 'Didn't we hear this a couple of months ago?' The answer is no, you would not have heard it because these statistics came out only this morning.

I am delighted to inform members that the latest quarterly figures available from the Australian Bureau of Statistics show that mineral exploration in South Australia reached a record high of $95.2 million in the June quarter of this year. That is the highest level ever of spending on exploration in South Australia in any quarter, as measured by the ABS, and it is a remarkable achievement.

Exploration in the June quarter of this year was a substantial increase of more than 20 per cent compared with the previous three-month period. The Australian Bureau of Statistics figures published this morning show that mineral exploration expenditure in South Australia rose 3.2 per cent in the 12 months to the end of June 2008, to $355.2 million compared to the 12 months to the end of March 2008. South Australia remains in third place amongst the states, behind resource-rich Western Australia and Queensland. However, South Australia is level pegging with Queensland in terms of total mineral and petroleum exploration: $563.2 million for Queensland and $551.5 million for South Australia in the 12 months to the end of June.

These figures confirm that the global exploration sector has the highest levels of confidence in South Australia's mineral potential. The latest figures also confirm that total annual exploration expenditure to the end of June remains more than triple the $100 million target set for 2007 in South Australia's Strategic Plan. South Australia's vibrant mineral sector continues this year to build on the very solid performance of 2007, despite a reduction in exploration by BHP Billiton at Olympic Dam. Of course, BHP has been spending massive amounts on drilling in terms of exploring the particular resource up at Olympic Dam, but those figures are gradually being removed from the statistics.

The continued interest in South Australia in relation to exploration reflects the confidence that mineral companies have to invest in this state. That confidence reflects the supportive policies provided by this government, highlighted by the hugely successful PACE initiative. However, I should inject a note of caution in that this state's ability to attract new exploration spending is expected to ease as mining companies switch focus from the search for new minerals to investment in constructing new mines. That is why this year's state budget, of course, allocated $14.1 million to PIRSA to ensure that South Australia is better able to translate the hundreds of millions of dollars of investment in exploration into new mines—mines that create jobs and earn export dollars for this state. With a second wave of mine projects in the pipeline, the government is committed to ensuring that South Australia realises the full potential of the ongoing mineral boom.

The latest quarterly ABS figures show that, of the $95.2 million spent in the June quarter, $31.6 million was invested in the search for new mineral deposits. The remaining $63.5 million was spent on the expansion and development of South Australia's growing list of known mineral deposits, particularly copper and uranium. Some $38.4 million of exploration expenditure was spent in South Australia during the June quarter on the search for copper—a 106 per cent increase from the $18.6 million spent in the March quarter. A further $27.1 million was spent during the June quarter on the search for uranium—up slightly from $26.2 million spent in the March quarter.

The combined strength in mineral exploration expenditure in South Australia in 2008 further reinforces the overwhelming success of the Rann government's Plan for Accelerating Exploration (PACE) initiative. The internationally-recognised PACE initiative was introduced by the Rann Labor government in July 2004 and has contributed to a surge in mining exploration and the identification of many potential new developments within South Australia. I commend that initiative to all members and, again, welcome the news that South Australia is setting new records in mineral exploration investment. It is unarguable good news for the local economy, good news for job seekers and good news for all South Australians.

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