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Culinary Eyre Whyalla and Eyre Peninsula region is one of South Australia’s most productive generating in excess of two billion in revenue annually, majority exported overseas. Existing key sectors: • Manufacturing • Agriculture • Mining (mineral resources) • Wild catch fishing • Aquaculture • Tourism Key growth sectors: • Mining (mineral resources) • Renewable Energy • Food Industry Development • Tourism • Area of approx 230,000 square kilometers • Approx 7.5 % of South Australia • Supports a population base of 57,500 • Highly productive region with annual export estimated at 2 billion annually . • City of Whyalla supports the largest centre with 22,801 followed by the City of Port Lincoln which has a population of 14, 452 MINERAL RESOURCES • Eyre Peninsula is widely recognised as one of the most promising new frontiers for mineral wealth in Australia. • The region is located in the heart of the Gawler Craton province and the Eucla Basin • Province expenditure within the Gawler Craton on exploration, drilling reached $200 million in 2009/10. • The region’s existing mining operations – Arrium Mining, GRA and Iluka Resources contribute significantly to the South Australian economy. • Recent exploration activity in the region has revealed exciting prospects for heavy mineral sands, kaolin, iron ore, gold, silver, nickel, copper, diamonds, uranium, and graphite. • Infrastructure is the major challenge for the region RENEWABLE ENERGY • The region rated within the top 10 locations in the world on 24/7 wind generation performance basis. • Two established wind farms with 136 MW generation • Key issue is the linking to the main high voltage transmission infrastructure 275 /kva. • Eyre Peninsula is a net exporter of renewable wind energy, currently producing 136 mega volts. • Major plans to supply initially 2000 mega volts as part of stage 1 into the national grid. • Regions benefits include large areas of land which are low population. Eyre Peninsula has the capacity to deliver a significant portion 30% of the national renewable energy target by 2020. • Average Wind Speeds 7.7 – 8.7 m/s @100m • Large Areas of isolated land available • 3000+ MW of world class resource easily achievable • Solar Resource – GHI of 5 (Annual Average) KEY CHALLENGE IN MEETING GROWTH DEMANDS IN INFRASTRUCTURE KEY ISSUES WATER • Limited water resources. • Reliance on water supply from underground basins and the River Murray. • Increasing community and industry demand for water. • Location of Desalination Plants - Mining POWER SUPPLY • Limited capacity and poor condition of the region’s electricity transmission infrastructure. COMMUNICATIONS • The need for better broadband and mobile phone infrastructure. RAIL • Poor condition of the Thevenard to Penong rail line. • Poor condition of other narrow gauge lines that are not connected to the State standard gauge network. ROADS • The high cost to Local Councils in maintaining 12,742 kilometres of road, 94% of which is unsealed. • Increasing volumes of grain and minerals freight on these roads is exacerbating the maintenance problems. • The road network will deteriorate if increased funding is not provided for maintenance and capital works. KEY ISSUES PORTS & • Port of Thevenard: Depth of the Yalata Channel 8.2 m, limited capacity of out HARBOURS loaders and speed of the conveyor belt. Significant congestion problems between different users - i.e. mining companies, grain handling and fishing industry vessels. • Port Lincoln: Lack of storage space in and around the existing port, significant congestion and conflicts between users, particularly between the grain and fishing industries. • Whyalla Port: Third party access restriction and depth restriction of the harbour entrance channel. AIRPORTS • The limited capacity of infrastructure at the region’s key airports at: • Pt Lincoln • Whyalla • Ceduna GAS • Spencer Gulf Gas Line – capacity limitations to Whyalla KEY ISSUES HOUSING • Housing shortage and affordability. • Increasing demand for housing in Whyalla, Ceduna and Cowell – especially from the mining sector. • Forecast undersupply of private and public housing - especially in the larger regional centres of Whyalla, Pt Lincoln and Ceduna. • The ongoing rationalisation and non-replacement of public housing stock is exacerbating supply issues in some towns. • Significant Indigenous housing issues concerning (1) the shortage of public housing supply, (2) over-crowding, and (3) the lack of investment in new dwellings – especially at Yalata, Koonibba and Oak Valley. PORTS INFRASTRUCTURE Export Tonnages SA Flinders Ports Statistics- Regional Ports 2004 2005 2006 2007 2008 2009 2010 2011 Thevenard 1,680,385 1,814,575 1,955,008 1,888,207 2,071,436 1,959,234 2,704,559 3,003,828 Pt Lincoln 1,877,392 1,204,644 1,711,542 765,575 945,394 1,225,940 2,257,835 2,882,829 Pt Giles 699,152 399,845 542,081 154,102 362,472 305,949 502,987 1,043,882 Wallaroo 706,939 340,704 425,330 165,391 424,866 505,530 702,524 908,937 Pt Pirie 403,837 407,121 313,467 272,397 298,232 669,958 519,336 204,900 Source: Flinders Ports- Ports Statistics 2003-2010 PORT OF THEVENARD Port of Thevenard is the main export facility of western Eyre Peninsula “multi commodity port.” Current shipping capacity of 25,000-30,000 tonnes 2011 recorded 103 individual ship movements Depth in approach channels 8.2 metres Exports 2010 : 3.03 million tonnes Gypsum: 1.69 million tonnes Salt: 120,00 tonnes Grain: 420,000 tonnes Mineral Sands 400,000 tonnes Total estimate trade value: $757 million PORT OF THEVENARD • The Port will be the key export facility for the emerging mining projects in the western region • Deepening of the Yalata Channel (10.7m) is pivotal to the future growth of the area, maximizing capacity for Handimax & Panamax shipping • Estimated cost $45 million. • Geotechnical survey of the seabed has indicated that the channel consists largely of medium to soft material. • Increase in the overall efficiency of the onshore infrastructure and include : - Belt loaders capacity and due loading operation - Land reclamation - Expansion of berth space to increase export capability. PORT LINCOLN Port Lincoln is one of the best natural deep water Ports in the southern hemisphere, (deepest draft 14.7m) The Port is the main export terminal for the region’s grain industry, with Panamax vessel capacity. 9 operational berths ranging from 56 m to 330 m LOA with berthing pockets up to 46m wide & 15.2 m deep. Total Exports 2011: 2,882,829 tonnes Grain: 2,714,971 tonnes Legumes & oilseeds: 167,858 tonnes Total trade value: $586 million EASTERN EYRE PENINSULA MINERAL EXPORT HUB: PORT SPENCER • The facility is strategic in location • Ability to leverage supply from Eastern and Lower Eyre Peninsula • Dual transport option- Road & Rail • Rail connection 30km to the Cummins/Kimba line • Depth of Water- 18 to 20 metres • Capacity to load direct into Cape Bulkers • Efficiency gains in shipping and demurrage costs • Capacity to grow the mineral exports-EP • Opportunity as a multi commodity port • Reduces transport costs and the impact of road trains in Port Lincoln Port Bonython Lucky Bay Future Deep Port Port Spencer Iron Ore Grain Manganese Coal Arrium Mining Arrium Mining purchase Western Plain Resources is positive news, in the expansion of the exports shipping program of iron ore. Expansion of transhipping from 6.6 million tonnes to 11 million tonnes. Arrium Mining development commitment to expend $200 million into the development of the north side of the Whyalla Port. Company prepared to support future third party access the Whyalla port into the future is positive for the region. LUCKY BAY FLOATING HARBOUR TRANSHIPMENT SOLUTION Electrical load 1000kW Up to 50% less than traditional systems FUEL FEEDERS & MINE SITE This position eliminates stevedoring damage and demurrage RENEWABLE ENERGY Key Projects Green Grid • Involves the construction of a high voltage 500 kilovolt (kV) above Proposal (Stage 1) ground transmission network from Davenport (near Port Augusta) to the west coast at a connection point near Elliston. • This configuration would connect new generation of up to 2000 MW in two zones at an estimated capital cost of approximately $613m. • The proposed investment for this stage would create 2000MW of additional generation opportunities • Investment worth approximately $4.5 billion in wind energy generation. • The project is expected to create around 1400 direct construction jobs, an additional 1600 indirect jobs during construction GAS DISTRIBUTION MAJOR INFRASTRUCTURE PROJECT SUCCESS PORT LINCOLN AIRPORT UPGRADE • Port Lincoln Airport is of strategic importance to the region servicing many Eyre Peninsula communities and industries with a fast and affordable link to Adelaide. • Critical for the continued growth of the region’s tourism industry. • Facilitates growth of other industries including mining and seafood. • Provides significant social benefits to Eyre Peninsula communities Project Value: $12.69 million RDIF: $1.04 million RDAF: $4.5 million DC LEP: $6.0 million Other Govt Funds: $1.15 million LUCKY BAY HARBOUR EXTENSION • Facilitates the return of the Wallaroo-Lucky Bay Ferry service. • Facilitates the progression to production of a number of junior miners on the Eyre Peninsula through the provision of an alternate and early export option. • Utilises technology that is first of its type in Australia • Provides a model for the rapid deployment of export facilities • Supports up to 200 jobs Project Value: $12.2 million RDIF ( pending ) $306,000 RDAF: $2.2 million Private Investment: $9.9 million COLLABORATION • Develop specific supply lines that underpin the delivery and market investment attraction for development of mining infrastructure needs. • Establish common corridors for: • Transport • Electricity • Water • Road • Rail • Established agreements in the supply corridors between: • Resource Companies • Infrastructure Providers • Investors • Government • Maximise the economic scale by collaboration to achieve global competiveness. .
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