@sbdavisJust one final thought on the subject, while it would be good to develop a world-class copper smelter and refinery complex in South Australia, given South Australia holds the most copper JORC Ore Reserves in Australia, the following question always arises:
But who would fund it?
Based on the below, the South Australian government probably would not be interested in funding a new copper smelter and refinery complex in South Australia in the short to medium-term.
During November 2022, the '
Inquiry into South Australia’s renewable energy competitiveness' final report (135 pages) was released by the South Australian Productivity Commission ('SPAC'). See link below for a copy:
https://www.sapc.sa.gov.au/inquirie...renewable-energy-competitiveness/final-reportFrom the above report, Chapter 4 'Green minerals - opportunities and challenges' could be of particular interest. [pages 100-104]
"There are potential downstream benefits for South Australia from increased demand for minerals needed for the global energy transition and from increased downstream processing of South Australian minerals, which would otherwise be exported as ores, to produce metals such as copper or iron.There is also the possibility that structural changes in global supply chains may lead to onshore mineral refining activities for South Australian ores. 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."Unfortunately for South Australia, seeking to facilitate 'green' minerals opportunities is deemed a longer-term potential priority for the following reason.
Longer-term prioritiesThe potential opportunities for the State around green minerals will be dependent on both low cost and abundant renewable energy, and the availability of competitively priced green hydrogen.
This means that seeking to facilitate green minerals opportunities is a longer-term potential priority as it will only be feasible if both barriers to renewables are addressed, and a local green hydrogen sector emerges. The longer (and medium) term objectives will only be captured as uncertainties in export markets are resolved. [page 105]
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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