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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-02-19 Daily Xml
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Question Time

MINING SECTOR

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:23): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about the takeover of South Australian mines by overseas companies.

Leave granted.

The Hon. D.W. RIDGWAY: It has been widely reported in the media that OZ Minerals has recommended that shareholders accept the $2.6 billion takeover of their company by Chinese company Minmetals. We have seen the minister in this place on a number of occasions talking about the wonderful work that has been happening at Prominent Hill—a wonderful mine in our north not far from Coober Pedy. In fact, I myself visited the mine, and I think it is a credit to the company that it has been able to develop a mine of that calibre and size as quickly as it has.

One of the things that really excited me with that mine was initially Oxiana's commitment to recruitment in South Australia, with a focus on recruiting South Australian people to work in the mine and also the focus they had on the indigenous employment program. I cannot recall exactly where the plane was flying in and out from, but it was bringing some young indigenous people from other parts of the state into the mine on a fly-in/fly-out basis to actually add real value to those communities. They also had a training program for the very big trucks that have been used up there and the minister, I think, was there for the launch of that training program.

The Hon. P. Holloway: I actually drove one!

The Hon. D.W. RIDGWAY: He interjects that he actually drove one. Now, that is a scary thought! If someone who has spent most of his life behind a desk can drive one, then it must be a very comprehensive training program.

The other component of Oxiana's commitment to the community was its wonderful commitment to Coober Pedy, and the investment it has made in the football oval, grassing it and having some irrigated turf put in, and the facilities for the local communities.

My question to the minister is: has he had any discussions with Minmetals or any other overseas companies in relation to making sure that the future owners of these mining assets in our state reinvest in our South Australian communities and that we do not see the profits disappear overseas and our South Australian communities be poorer for the experience?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:25): I thank the honourable member for his question. I am grateful that he appreciates the efforts of this government in ensuring that mines such as Prominent Hill have been able to be brought into production so quickly.

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: No, of course not, you would not do that. It is important to recognise the great contribution that the mining industry has made to this state, thanks to the efforts of this government. In relation to the general question of foreign investment, the honourable member has already asked me a question about that, and I put my views on that on the record some time back.

As far as the takeover of OZ Minerals is concerned, it will be subject to a number of approvals, both from the Foreign Investment Review Board and then the Treasurer, and also the Defence Department, because Prominent Hill is within the Woomera protected area, so it will need those approvals. Some other parts of the OZ sale will also need approvals.

In relation to the takeover, I have had some discussions with OZ. I am informed that the company that is taking over, Minmetals, has stated that it is its intention to continue the operation as an Australian-based operation, so, essentially, it will be run as it is now, but as a subsidiary of its new owner.

The policies that have been run by the current management of the Prominent Hill mine are very good, and I trust that people such as Mick Wilkes and others up there who are responsible for running the Prominent Hill mine will continue in that role. That is certainly my expectation.

I have not had the opportunity yet to speak to Minmetals and, of course, that takeover will not be complete until, firstly, the approvals that I mentioned earlier are obtained and, secondly, the shareholders of the company approve that particular proposal. It would be my expectation—

The Hon. D.W. Ridgway: You haven't spoken to them.

The Hon. P. HOLLOWAY: I have spoken with them in the past. I met with that particular company in Beijing, I believe, several years ago, but I have not spoken with them since. As I said, until the takeover is complete, and there are still some months to go, it will have no influence on it.

Obviously, it will be the position of this government that we would expect that those very successful policies that have been introduced by OZ Minerals will continue under the new ownership. We will be meeting with the principals of that company at the appropriate time, if and when this takeover occurs, and do everything we can to ensure that that continues.

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