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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-30 Daily Xml
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MINERAL RESOURCES

The Hon. CARMEL ZOLLO (14:39): I seek leave to make a brief explanation before asking the Minister for Regional Development a question about mining.

Leave granted.

The Hon. CARMEL ZOLLO: I know the Minister for Regional Development takes a keen interest in all sectors of the economy that are going to advance our regions and has carriage of the Upper Spencer Gulf Fund to help our regions take advantage of increased mining exploration and activity. My question to the minister is: can she outline to the chamber how this government is ensuring that the interests of this state are advanced in relation to mining?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (14:39): I thank the honourable member for her most important question. As minister for the regions, I certainly do take a great interest in our resources sector. Indeed, in contrast to the opposition, this government recognises the benefits created for this state and the people of South Australia through an expanding resources industry. We are committed to ensuring that this vital industry, which contributes around $3.9 billion to the state's GSP (as at 2010-11), continues to grow to ensure that the benefits of the mining boom are realised by all South Australians.

We have seen the Hon. Mr Ridgway and the opposition simply get it wrong yet again. While they sit there talking down mining in this state—and everything else—the government is putting the best interests of the state first and foremost to ensure that projects like Roxby proceed. Yesterday, in a media release, the Hon. Mr Ridgway tried to claim that I had said the government would tear up the indenture. This is simply not true, and we see the opposition—

An honourable member interjecting:

The Hon. G.E. GAGO: Your media release did. The honourable member publishes material in that statement that is not true. They are inaccurate and careless with, I believe, an intention to mislead the public. What I did say was that I supported the minister for mining to make decisions about the BHP project that would be in the best interests of the state. The Liberal Party, as we have seen, has shown that its approach to the minerals sector is to talk it down, to erode business confidence and to be completely dismissive of our mining boom and the important role of this sector to our economy. Comments from the opposition reported in yesterday's paper stated:

The government has been talking about the mining boom for 10 years but the reality is that we are really still in a mining exploration boom and even that has tailed off in the last few years.

This is a Liberal government saying this—

An honourable member: Opposition, actually.

The Hon. G.E. GAGO: —and it just demonstrates how completely out of touch the opposition really is. It illustrates just how unprepared they are to lead.

Members interjecting:

The PRESIDENT: Order!

The Hon. G.E. GAGO: In The Advertiser Business Journal yesterday, Christopher Russell made it very clear that South Australia is doing extremely well. He stated, 'Over the past 10 years there's been vastly more than exploration.' He goes on to say, 'There would be very few jurisdictions anywhere in the world where the resources sector has advanced as rapidly.'

Consider these: Prominent Hill copper mine opened in 2009 at a cost of $1.2 billion; Jacinth-Ambrosia mineral sands opened in 2010 at a cost of $390 million; Kanmantoo Copper opened in February this year, $173 million; Honeymoon Uranium commenced production in 2011 at a cost of $146 million—the list goes on. Add that to our iron mines at Cairn Hill, Peculiar Knob and Iron Chieftain, lead and zinc, gold at White Dam, and the Ankata copper mine—the list goes on and on.

As Christopher Russell points out, the service industries are also growing with the acceleration of mining in this state. Industry is providing fabrication of mine plant, civil construction work, transport, logistics, stevedoring, accommodation, catering, legal and accounting—they are all advancing. He also goes on to point out that the mining sector has reinvigorated towns such as Whyalla, Port Augusta, Coober Pedy and Ceduna.

The government has clearly committed to expanding and supporting the resources sector in South Australia, and I have been advised that these efforts are being noticed. The recently released Victorian parliamentary Inquiry into Greenfields Mineral Exploration and Project Development in Victoria stated:

The main drivers of South Australian growth include the SA Government's strong support for minerals exploration and mining since 2004 through its PACE (Plan for Accelerating Exploration) initiative and the targeted marketing of PACE and SA more generally at a national and global level.

The report also states that South Australia was the 'model jurisdiction in Australia for effective government facilitation of mineral exploration and mining projects'. Just so the Hon. David Ridgway is clear about the government's position, the indenture that passed through the state parliament has given BHP Billiton the certainty it requires. The indenture does have a sunset clause, which will come into effect in December if BHP Billiton does not give Olympic Dam the green light.

The state needs to have certainty about its commitments, and it is important that BHP Billiton has consistency and certainty as well. I have been advised that, to date, the minister for mining has not received any reason why this project should be delayed. As I said earlier, the minister will ensure that this project benefits the state and will not undermine business and consumer confidence, which the opposition is, clearly, intent on doing.

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