ann out- one step closer, page-3

bullbar, are you talking about this one.

Hope the Minister can sign DA by next week (WPG mentioned early July) to show us SA is a good place for miners.


http://www.theaustralian.com.au/careers/south-australia-is-perfectly-suitable-for-miners/story-fn717l4s-1226080897775

South Australia is perfectly suitable for miners

Cameron Cooper
From: The Australian
June 25, 2011 12:00AM
IN the heavyweight world of the resources sector, two big hitters dominate the Australian scene: Western Australia and Queensland.

South Australia, by comparison, barely makes it on to the undercard. That may change as the Rann government tries to secure its share of the nation's resources boom.

Although the state already boasts Olympic Dam, the home of some of BHP Billiton's mining projects and the site of the some of the largest uranium, copper and gold deposits in the world, the South Australian government is keen to promote the state to mining companies in Western Australia.

Jason Kuchel, chief executive of the South Australian Chamber of Mines and Energy, says there is great potential for mining in the state because so much of it is unexplored: "We're where Western Australia was 20 or 30 years ago."

There are some good signs. Mine numbers in South Australia have grown from four in 2004 to 16 big mines today that are either operating or under development.

"It's quite a significant jump for South Australia," Kuchel says. "While it might not be in the boom category like we see in Western Australia and it's not as visible to many South Australians, it is still a huge increase on what we have had here. Rather than describing it as a boom, we describe it as strong, steady growth."

Kuchel expects job opportunities to pick up as new projects come on line over the next few years.

"We expect that something like 40 to 50 per cent of the jobs created in South Australia over the next 10 years will be directly or indirectly as a result of mining."

He is confident the location of some mines close to South Australian regional centres will entice workers to the state because of the opportunity for employees to go home to their families after work, instead of working a fly-in, fly-out roster at a remote mine.

"To fly from Adelaide up to north Western Australia, it's almost like flying overseas, so to have something that's only an hour away in a plane is going to be attractive to a lot of people," Kuchel says.

The South Australian government has been encouraging mining companies to invest in the state through its Plan for Accelerating Exploration project, known as PACE.

An advertising campaign is targeting Western Australia, in particular, and seeks to explain South Australia's new mining policies, including royalty rates.

Kuchel says the marketing promotion is trying to encourage companies to look beyond the big mining powerhouses.

"What [the government is] saying is, 'We'll talk to you, we'll sit down, we'll give you a case manager, we'll work through with you. Yes, there's an issue with infrastructure, but there's some real opportunities and South Australia is underexplored,' " he says.

"It's not about saying 'don't mine in Western Australia'; it's about saying 'don't overlook the opportunities in South Australia'."

As part of its plans to ramp up the resources sector, South Australia has recently opened up a large section of the Woomera Protected Area in the state's far north to mining exploration. The military site is one of the world's largest rocket ranges and is part of the US-Australian ground station.

Kuchel highlights diversity of mineral wealth as one of the state's strengths.

"It's spread across a range of commodities, which is a very good thing for us."

South Australia has abundant mineral sands such as zircon, in addition to huge uranium, silver and iron oxide copper-gold deposits. The Gawler Craton region around Olympic Dam in the centre of the state is a particularly rich mineral resource. BHP Billiton is seeking approval for a multi-billion-dollar expansion of its Olympic Dam operations.

Kuchel says if the proposal receives state and federal government backing, it will transform South Australia's resources sector.

"That in its own right will almost bring about a boom because of its size," he says.

He adds that the Olympic Dam expansion will help attract workers to the state.

"It's a complex multi-commodity ore body, so therefore anybody involved in processing is going to find it more interesting to be involved in that than many other projects. It's one of the world's largest ore bodies," Kuchel says. "It's going to have a natural attraction."

He admits there are significant infrastructure hurdles that South Australia must address before it can compete with the bigger mining states.

A viable port is an essential piece of the jigsaw that is missing. One option is for a deepwater port to be developed at Port Bonython. If approved, that would open up bulk export options for the Upper Eyre Peninsula and other northern resource-rich regions.

Kuchel says construction on a port at Port Bonython may start in 2016, depending on costs and approvals.

"That'll certainly help because at the moment companies have to look at sub-optimal solutions to try and get their product out."

Despite the lack of infrastructure, Kuchel is confident South Australia can woo mining companies to the state.

"The industry actually works very well together in South Australia and the government is very proactive toward the industry and we have a very good relationship with the government.

"For most companies it should be something that they should consider: putting a piece of South Australia into their portfolio."