The draft report (May 2022) is now available for download, if you are interested in the current views. Final report due out this month.
An unpublished analysis by the Department for Energy and Mining indicates that South Australia has around 67% of Australia’s economic demonstrated resource ('EDR') of copper, and 44% of the EDR for magnetite ore (a form of iron ore that is regarded as potentially more suitable for 'green' hydrogen production).
There is also the possibility that structural changes in global supply chains may lead to mineral refining activities for South Australian ores being on-shored. If this does happen it is likely to be either because of investor pressure on mining companies to minimise the scope 3 emissions from refining the mineral ores they produce, or because a combination of increasing international shipping costs and local cost advantages in decarbonisation outweigh the economies of scale that see most Australian minerals refined offshore.
Note: this draft report does not include recommendations. However once findings have been refined as a result of stakeholder input a fourth chapter will be added to the final report exploring ways in which the South Australian Government could address the identified barriers to renewable energy competitiveness.
Iron Ore, Steel and Magnetite
The emerging demand for ‘green’ steel increases the already significant opportunity for South Australia to expand its economy both by opening new iron ore mines and by establishing further downstream processing plant for value adding. Indeed, the state is judged to have strong potential to become a substantial exporter of high-grade, 'green' ferrous feed/products.
However, consultations with industry indicate that unlocking this opportunity is likely to require the establishment of new public-private partnerships to provide the sector with to access a stable supply of renewable electricity and net-zero hydrogen at a competitive price, together with the major infrastructure of roads, heavy rail, deep water port facilities and water supply.
Cheers
These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.
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