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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2010-11-09 Daily Xml
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WOOMERA PROHIBITED AREA

The Hon. I.K. HUNTER (14:44): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about the commonwealth government's review of the Woomera Prohibited Area.

Leave granted.

The Hon. I.K. HUNTER: Australia's defence minister, Stephen Smith, and the Minister for Resources and Energy, Martin Ferguson, last week released for public comment the interim report of the government review of the Woomera Prohibited Area. The review, led by Dr Allan Hawke, was commissioned by the commonwealth government in May in response to calls by the South Australian government, among others, for improved clarity for the mining industry seeking to invest in exploration within the WPA.

I understand that extensive stakeholder consultation, including with representatives from Defence, the South Australian government, the minerals and petroleum resources industry, Indigenous groups, pastoralists and environmental groups, has occurred. Will the minister provide details of the interim report's key findings arising from those consultations and whether there is any scope to increase the national value of the Woomera Prohibited Area and promote better management in the interest of both our national security and economic prosperity?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (14:45): I thank the honourable member for his important question. It is true the South Australian government has been urging the commonwealth to provide more certainty and clarity in the rules for exploring and developing mines within the Woomera Prohibited Area so that both the defence and mining industries can better coexist in a region that makes up 13 per cent of our state, which is some 127,000 square kilometres. These discussions on a review of the coexistent arrangements followed decisions affecting Prominent Hill and Hawks Nest, a Western Plains Resources' mining project.

There were some foreign investment review issues related to that, amongst other issues. That eventually prompted the commonwealth government to establish the Hawke review. I am pleased to say that the interim report, which was released on Friday by the Minister for Defence Stephen Smith and the Minister for Resources and Energy Martin Ferguson, supported the central argument which had been put by the South Australian government that there is substantial scope to increase the capacity for coexistence between mining and defence on the Woomera Prohibited Area.

Reaching such a conclusion was important for the South Australian government, as it is estimated that some $35 billion worth of developments, including iron ore, uranium, copper and gold, are contained within that 127,000 square kilometre area covered by the WPA. There could, of course, be much, much more. The Hawke review's interim findings provide us with greater certainty that that potential $35 billion in mining projects can be unlocked without impinging on the defence industry's ability to use the WPA for Australia's national security purposes.

The review believes that the Woomera Prohibited Area should remain a defence-controlled area as it has been since 1947 but found there is merit in making small adjustments to the south-eastern boundary to allow resource companies to explore in this area of high metallic mineral potential, similar to the Olympic Dam deposit. That south-eastern boundary is very close to Olympic Dam and the Roxby Downs township.

The importance of the Woomera Prohibited Area for developing and maintaining Australia's military capability is also recognised within that interim report, but it proposes the adoption of a timeshare arrangement between defence and non-defence users outside the core area of the defence operations that would unlock the Woomera Prohibited Area for exploration during set periods of time.

The review has found that the introduction of an integrated suite of policy measures would substantially increase the capacity for coexistence within the WPA, preserve it as an effective defence capability, introduce legal protection for all users and meet the South Australian government's resource development goals and the targets of our South Australia Strategic Plan. The Hawke review also acknowledges there is scope to open up part of the previously identified, highly restricted core area of operations to resources and energy exploration to allow the underlying mineral potential there to be fully evaluated.

The growth of our defence and mineral resources industries is a key factor in driving South Australia's economic prosperity and diversifying our job creation and export potential. The government welcomes Dr Hawke's interim findings, as they clearly identify current and future resource potential of the Woomera Prohibited Area. The findings provide certainty and clarity to the more than 120 active mineral exploration licences and three successfully operating mines at Challenger, Cairn Hill and Prominent Hill within the WPA. The interim report also found:

There is significant potential for discovery of further valuable mineral and petroleum deposits.

Sixty-two per cent of Australia's known copper resources are estimated by Geoscience Australia to be located in that general area, as well as 78 per cent of Australia's known uranium resources.

The development of multiple mineral deposits across the breadth of the WPA could transform the WPA into one of Australia's most significant resource provinces.

Legislative changes are needed to facilitate introduction of an improved access regime for the WPA.

There is also a need for a publicly available policy on access requirements, particularly for mineral explorers and resource developers; clear governance arrangements to administer access; an upgraded Woomera test range management system; and a detailed statement of principles to guide coexistence.

The Hawke Review team is seeking feedback from stakeholders and the Australian public on its interim findings, with a deadline set down for 30 November.

The government will begin work on providing that further input into the final report through its key agencies PIRSA and Defence SA. This information is expected to assist the review team in further developing and refining the coexistence model outlined in the interim report. We look forward to the final report before the end of this year and the commonwealth government's response.

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