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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2008-09-24 Daily Xml
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Question Time

OLYMPIC DAM

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:25): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about the Olympic Dam expansion.

Leave granted.

The Hon. D.W. RIDGWAY: I expect that either today or tomorrow we will have a Dorothy Dixer from the government in relation to the latest announcement from BHP that there is close to another billion tonnes of resource as a result of their drilling. However, my question goes more towards the government's over-spruiking, shall we say, of the particular project. Recently, an announcement was made in America by BHP to the following effect:

'Olympic Dam is a relatively complex ore body, so there remains uncertainty about the size, cost, timing and eventual configuration of the expansion project,' BHP said in the report. 'Ultimately, the expansion project will depend upon board approval of the final investment case and a range of regulatory and governmental approvals.'

The Premier, and the minister opposite, have been continually spruiking since BHP announced the pre-feasibility study for the expansion, and they have talked about the huge increase in jobs and the wonderful benefits to our economy.

Recently, while I was in Whyalla, I discovered that this time last year (August/September) the housing stock on the market was 40 houses at any particular time. But, given that the mining boom has not arrived, as the Premier and minister claimed it would, this year in August/September there were some 400 houses on the market, and taking considerably longer to sell.

In fact, we know (and the Premier said this to the Press Club earlier in the year) that BHP would have to dig for possibly up to four years—in fact, I think it is closer to five years—to remove the overburden before they would reach the ore. My questions are:

1. In light of that, when does the minister expect board approval for the green light for the expansion?

2. Given that it is likely to take four to five years to remove the overburden, when does the government expect the expansion to be completed?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:27): My understanding is that the board of BHP in November this year will decide whether to move from the pre-feasibility to the feasibility study in relation to the Olympic Dam expansion. I think the company has already spent three quarters of a billion dollars in pre-feasibility alone, and some of that has been in the drilling out of the resource.

As the honourable member mentioned, that drilling has increased the reserves at Olympic Dam. I am not sure whether the statement has been made to the Stock Exchange yet, so I will not provide any details in relation to that. I assume it has, but in case it has not I will not add to that, other than to say that any increase in resources at that mine is something which we welcome and which greatly increases the chance of that expansion going ahead. I have answered that in November the board is deciding whether to go from the pre-feasibility stage to the feasibility stage.

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: It is in the hands of BHP and not mine. BHP keeps us well informed about what is happening. We have been working closely and literally hundreds of approvals will need to be given in relation to the expansion of the mine. BHP has already spent close to $1 billion, if it has not exceeded that already, in relation to those feasibility works. Decisions have already been made in relation to the township and the increase in the size of that, so more housing can be on the market.

Obviously, the environmental impact statement will be an extremely comprehensive one and will cover not only the mine site but also all the other issues related to it, such as landing equipment that needs to be transported to Roxby Downs, possible rail spurs, desalination plants and water pipelines. It is a massive task that needs to be looked at and it is under way. It is not surprising that the board of BHP Billiton would let the Stock Exchange in the United States know that it is an extremely complex project and will lead to the largest order of trucks in history. We are talking about the largest mine in history—a huge undertaking—and obviously there are a number of possibilities as to how Olympic Dam—

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: Those timetables are on the public record. I have told the honourable member that the most immediate decision, which I expect to be in November this year, will be whether the board continues from the pre-feasibility stage. Those timetables are properties of the board, and the board of BHP will make the decision, not the government.

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: The reality of what has happened is that the Liberal Party, particularly the leader in another place, Captain Whinge, has now taken over the knocking. His strategy is to knock everything this state has done, because he has been totally and utterly ineffective in coming forward with any positive policy. In 6½ years the Liberals have not come up with any alternative policy of any substance on anything, so they have reverted to the age-old strategy of knocking everything.

Under this government we have had a mineral expansion the likes of which this state has not seen for 100 years or more. It has been delivered, so the opposition has said, 'Let's pretend it away; let's knock it; let's try to convince people through using our mates in the media to get the message across that it is not happening.' That is the tactic. You do not have to be a Rhodes Scholar to work out what they are trying to do: it is simply to knock things that are happening. Oppositions do that; that is what this mob are good at—they are experts at it. They have had 6½ years experience. They are learning fast. They can whinge and knock to an unprecedented level, but the realities are there.

The Australian Bureau of Statistics will tell you what is happening. We had just four mines when this government came to office. There are now 10, with the eleventh about to start, in this state. One of those that was there is Olympic Dam. Olympic Dam will be fantastic for this state. The wealth it will bring to this state is immense and it is one of the largest projects in history. Just a few days ago, we had the opening of the Angas mine at Strathalbyn. Soon we will be having a mineral sands mine—we have had one at Mindarie—the first mineral sands mining in this state for many years. We have Iluka through Jacinth/Ambrosia. As I have said, we have gone from just four mines when this government came to office to having 11 by the end of this year. Obviously, Olympic Dam will be the icing on the cake, but it is not the only development that this state—

The Hon. D.W. Ridgway: When will it happen?

The Hon. P. HOLLOWAY: Go and read BHP's website. It is not the government of South Australia that will determine when it goes ahead but we will facilitate it, and we are facilitating it to the maximum extent. We have a task force working very closely with BHP on the massive number and detail of approvals that need to be gone through. A project of this scale is unprecedented in the state, probably unprecedented in the world, and there are literally hundreds of major decisions that will need to be made in relation to the regulatory approvals and the like in relation to that project, and we are working through that. We move to the next phase in November and then it is up to BHP, but those timetables for each of the projects are well known and they are on track.

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