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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2010-06-23 Daily Xml
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MINERAL EXPLORATION

The Hon. B.V. FINNIGAN (14:42): My question is to the Minister for Mineral Resources Development. Will the Leader of the Government provide an update on developments within South Australia's mining industry, particularly any news on how the number of mines has increased in the past eight years?

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 very timely question. This government has worked hard during the past eight years to ensure that South Australia becomes a world-renowned destination for resource investment. Through the introduction of the Plan for Accelerating Exploration (PACE), we have attracted explorers to South Australia exceeding the State's Strategic Plan objective of stabilising annual expenditure at more than $100 million—compared with the paltry $40 million a year under the previous Liberal government.

The renewed interest in South Australia as a destination for exploration expenditure, fostered by the PACE program, has led to the discovery of many world-class ore bodies. Just as importantly, our streamlined regulatory approval processes and government support for mining have ensured a strong pipeline of projects flowing from these discoveries. Increasing exploration is one thing, but we have also been successful again and again in transforming these important significant discoveries into new mining projects.

South Australia now has 12 operating mines—up from four when we came to office in 2002. The most recent project to round out the dozen is Cairn Hill near Coober Pedy, which went into production earlier this month. This magnetite copper and gold project is the first iron ore mine in South Australia outside the area historically known as the Iron Triangle. Of course, the Upper Spencer Gulf region is a major milestone for South Australia's mineral resources industry. IMX Resources is to be congratulated on conducting the first blast of ore at phase 1 of the Cairn Hill project earlier this month.

The Cairn Hill project (which is located 55 kilometres south-east of Coober Pedy) is close to the Adelaide to Darwin rail line, making it possible to export oil from the Port of Adelaide to buyers in China. I am confident the government's continued support for mining, our one-stop shop approvals process and the quality of our ore bodies will ensure that the number of operating mines will increase to 16. That is a fourfold increase in less than a decade.

This month, I also had the privilege to take part in the official opening ceremony for one of the other 12 operating mines in this state. The White Dam gold mine near Broken Hill recently poured its first gold ahead of schedule, making the Polymetals and Exco Resources project—

The Hon. R.L. Brokenshire interjecting:

The Hon. P. HOLLOWAY: Yes, or The Barrier Daily Truth; exactly. It is a very worthy publication, The Barrier Daily Truth. The White Dam gold mine is bringing significant benefits to regional South Australia, creating jobs for local people and generating around $2.8 million in wages for the life of the project. The total capital expenditure of White Dam is $14.3 million and the mine will also make use of local contract services and suppliers, including fuel suppliers, and even some services provided by local pastoralists.

Adelaide-based Lucas Earthmovers has been selected as the primary mining contractor, generating a contract in their own right worth $30 million. The multiplier effect of mining is well in evidence in the project, with much of the $60 million in total forecast operating costs from White Dam expected to flow back into the region.

I understand that production at the mine is scheduled to be about 50,000 ounces of gold a year. That is not a huge amount by any stretch of the imagination but is still a notable contribution to the state's economy. What is also pleasing about this project is that the initial investment in White Dam provides both of the joint venture partners with an opportunity further to explore the development potential of the nearby Vertigo and the White Dam North deposits. I hope that all members will join me in wishing both Polymetals and Exco Resources all the best for their future work on White Dam and their other projects in the Curnamona province.

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