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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2010-11-24 Daily Xml
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WHYALLA MINERAL EXPLORATION

The Hon. I.K. HUNTER (14:41): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question regarding investment in Whyalla.

Leave granted.

The Hon. I.K. HUNTER: OneSteel directly employs about 1,700 people in Whyalla and a further 1,200 contractors. Some 700 people are employed directly at the mines in the Middleback Ranges, and OneSteel's Project Magnet has provided Whyalla with a new lease of life. OneSteel's steelworks, mines and iron ore exports continue to play a key role in the economic development of the region, with significant investments during the past decade extending the life of the steelworks and Middleback mining operations. Will the minister please provide the chamber with an update on any investment programs in Whyalla that can help support this important regional city's continued 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) (14:42): I thank the honourable member for his important and timely question. I am delighted to inform members that in Whyalla last week the Premier announced that OneSteel's Iron Chieftain iron ore mine will be the 13th mine in South Australia. This builds on the four mines that were in operation when Labor took office in 2002.

The Iron Chieftain mine development, located in the southern Middleback Ranges 40 kilometres west of Whyalla, involves the construction of a new open cut hematite mine and a 4km haul road to Iron Knight, where the ore will be processed. From there the product will be railed to Whyalla and exported. This development provides continued job security for about 700 people directly employed at the mines as employees of OneSteel, Henry Walker Engineering and Brambles Industrial Services.

The Iron Chieftain development forms part of OneSteel's Project Magnet phase 2, supporting a hematite production target of 6 million tonnes a year for 10 years. As the ore will be blended to meet export grade targets, the actual mine life for Iron Chieftain will depend on the detailed sequencing of production and beneficiation across all of OneSteel's southern Middleback Ranges mines. OneSteel's Project Magnet phase 2 is being actively facilitated by the state government's case management service through Primary Industries and Resources SA.

The completion of Project Magnet phase 1 in 2008 converted the Whyalla Steelworks from a hematite to a magnetite ore feed, moving from a dry process to a wet process and releasing hematite reserves for export. Initiatives, including closing and capping the northern stockpiles, removing redundant equipment from the pelletising plant and reducing spillage at the pellet plant, have also contributed to a significant reduction in red dust.

As a consequence of these improvements OneSteel recorded zero exceedences of its community dust target in the 2009 calendar year, and in May 2010 the Whyalla red dust action group disbanded after successfully meeting its objectives. This government welcomes and supports initiatives to further develop mineral production in this state that will further underpin our vibrant and sustainable resources industry. More than $1.28 billion has been spent on mineral exploration since July 2002, supported since 2004 by the introduction of the plan for accelerating exploration.

PACE has been extended and enhanced in the latest state budget with the new PACE 2020 program being rolled out by PIRSA. Mineral exploration expenditure for the financial year to June 2010 was $166.5 million, up from $29 million in 2002-03, to account for 7.5 per cent of total spending in Australia on mineral exploration. South Australia's 2009-10 exploration expenditure of $166.5 million continues to exceed the South Australian Strategic Plan target of maintaining exploration expenditure above $100 million per year.

Mineral exports have grown to 34 per cent of total South Australian exports in 2009-10, up from 13 per cent in 2003-04, to become South Australia's largest single contributor to exports. Mineral exports were worth $2.8 billion in 2009-10, more than double the $1.17 billion in 2003-04. The value of minerals production in South Australia has continued to increase steadily, reaching $3.1 billion for the 2009 calendar year, exceeding the $3 billion South Australian Strategic Plan target for the first time.

Commodities produced in this state now include iron ore, gold, copper, zinc, lead, uranium and heavy metal sands. Iron Chieftain is the 13th mine in South Australia, with first stage construction works expected to begin this year. Other mines are also in the process of being developed in South Australia to increase this number even further. Construction work has begun at the Kanmantoo copper gold mine in the Adelaide Hills and the Antaka underground mine to the west of the open pit at Prominent Hill.

PIRSA is currently assessing the mining and rehabilitation program lodged by Western Plains, which is final mining approval required for their Peculiar Knob iron ore mining development near Coober Pedy. Heathgate's Beverley North Uranium mining development is also in the final stages of the formal state and commonwealth assessment processes. Behind these is a steady pipeline of projects in various stages of exploration and development. All of this bodes well for the future of mining in South Australia.

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