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Sustainably Growing Energy and Mining in South Australia

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Sustainably Growing Energy and Mining in South Australia Sustainably Growing Energy and Mining in South Australia CONSULTATION PAPER Sustainably Growing Energy and Mining in South Australia Department for Energy and Mining Level 4, 11 Waymouth Street, Adelaide GPO Box 320, Adelaide SA 5001 www.energymining.sa.gov.au Disclaimer The contents of this paper are for general information only and are not intended as professional advice, and the Department for Energy and Mining (and the Government of South Australia) makes no representation, express or implied, as to the accuracy, reliability or completeness of the information contained in this paper or as to the suitability of the information for any particular purpose. Use of or reliance upon the information contained in this paper is at the sole risk of the user in all things and the Department for Energy and Mining (and the Government of South Australia) disclaim any responsibility for that use or reliance and any liability to the user. 2 CONSULTATION PAPER A Strategy to Support Growth State – Our Plan for Prosperity Inviting your ideas The Marshall Liberal government has initiated Growth State – Our Plan for Prosperity recognising we need to do things differently to create an environment that is conducive to economic growth and a more sustainable, prosperous future for South Australians. Carefully designed to leverage South Australia’s competitive advantages, Growth State is a work plan to promote industry growth by responding to the needs of business and industries. At its heart, Growth State articulates what government is doing, informed by what industry needs. Growth State is a coordinated government commitment to real, concrete actions and deliverables. Removing barriers, clearing paths, facilitating, and aggregating, Growth State will be instrumental in focusing government resources and energies. Working in consultation with industry, together we will reaffirm the positive aspects of living and working in South Australia to enhance the prospect of investing here. The energy and mining sector is one sector where substantial prospects exist to responsibly develop opportunities, grow productivity and grow our competitiveness. This Consultation Paper outlines current Energy and Mining programs and potential further action to support Growth State in this critical sector of the economy. Existing industry initiatives such as the Copper Strategy, Magnetite Strategy, South Australian Hydrogen Action Plan and the Roundtable for Oil and Gas will be complemented by the Clean Energy Transition and new initiatives such as the Accelerated Discovery Initiative, Battery and Emerging Minerals Strategy and the Electric Vehicle Strategy foreshadowed in the 2019-2020 State Budget. This Consultation Paper defines the scope of the energy and mining sector and suggests ambitious targets to support the objectives of Growth State. It also seeks feedback to define what business needs so further actions can be identified that will encourage confidence and address barriers to investment. The final version of the Strategy will inform government of the energy and mining sector’s priority needs in delivering stronger growth and will highlight relevant government commitments. Government will respond to sector strategies through the Growth State work plan. We need energy and mining businesses and industry input for this Energy and Mining Strategy and your feedback on the information provided in this Consultation Paper. You can provide feedback through the Department for Energy and Mining website www.energymining.sa.gov.au/growthstrategy or email [email protected] by 1 November 2019. CONSULTATION PAPER 3 Sustainably Growing Energy and Mining in South Australia Minister’s foreword Providing affordable energy and economic prosperity through responsible resource development As South Australians, we have a shared responsibility to build a stronger, better future and fulfil our State’s true potential. For South Australia to succeed in creating an environment that is conducive to sustainable growth, we need to embrace a different approach. The Government of South Australia is leading this necessary change by developing Growth State. At its heart, Growth State articulates what government is doing, informed by what industry needs. To grow our economy, we need a plan to improve our productivity and competitiveness. To grow our population, we need to project a confidence in ourselves that not only encourages young people see their future here but also attracts other people to want to relocate to our State. My vision is that all South Australians benefit from the prosperity generated by responsible growth of our energy and mining sectors. South Australia has a central role in providing reliable and affordable energy to the nation and creating prosperity through the production and export of our resources wealth. Management of South Australia’s energy and mining assets needs to maximise the community benefit from their responsible and sustainable use. The community owns our energy and mineral rights and there is an obligation to develop them for the benefit of the South Australian public. A key principle of the emerging Energy and Mining Strategy is the environmentally and socially sustainable development of our resources. This Strategy acknowledges the role renewable energy sources, oil and gas have in powering our industries and homes and sets out practical steps to build support for its continued development. Minister for Energy and Mining Daniel van Holst Pellekaan MP 4 CONSULTATION PAPER A Strategy to Support Growth State – Our Plan for Prosperity Chief Executive’s foreword Confidently and sustainably developing pillar industries South Australia has long been a supplier of energy and mining commodities to the world through a well-regulated framework of laws and investment policies. Across the decades, the South Australian Government has adopted practical policies to support environmentally sustainable energy and mining industries. South Australians rely on an affordable locally produced source of reliable energy whether they are working in industries that use gas or electricity in their operations or households heating their homes and cooking their meals. The energy and mining industries support tens of thousands of jobs and create economic opportunities for businesses in South Australia, across the nation and internationally through export pathways that connect us with the east coast and the world. To meet our demand for energy, the search for oil and gas continues not only in our onshore basins but also in offshore frontiers. Sustained demand from urbanising markets in our region for key commodities such as copper, uranium, iron ore, gold, mineral sands and lead support the operations of our major miners and smelters. Fundamental for support of continued exploration and production is public trust in the laws that govern the industry. The South Australian government strives for continuous improvement of its regulations of the mining, extractives and energy industries. The six key principles of certainty, openness, transparency, flexibility, practicality and efficiency are the foundations on which we have built our regulatory frameworks. As part of the discussion about a comprehensive strategy, the Department for Energy and Mining is also seeking feedback on how we can build on those principles to better guide further growth with a focus on: infrastructure; trade and investment; skills and innovation; and land, water and the environment. Chief Executive, Department for Energy and Mining Dr Paul Heithersay PSM CONSULTATION PAPER 5 Sustainably Growing Energy and Mining in South Australia Contents Inviting your ideas 3 Minister’s foreword 4 Chief Executive’s foreword 5 Focus areas for an Energy and Mining Strategy 7 Overview of South Australia’s energy and mining sector 8 Growth targets 12 Energy and mining exports 13 Capital investment by energy and mining 15 Competitive energy 18 Key growth opportunities 23 Key challenges 24 Government role and focus 25 Energy and mining priorities 27 Trade 27 Investment 30 Skills and innovation 31 Infrastructure 32 Land, water and the environment 34 Case studies 35 Carrapateena: From discovery to development of a modern copper-gold project 35 Hornsdale: Harnessing energy storage to improve system security and affordability 36 Appendix 1 38 Historical events in developing South Australia’s energy and mining industry 38 Next steps 39 Contact 39 6 CONSULTATION PAPER A Strategy to Support Growth State – Our Plan for Prosperity Focus areas for an Energy and Mining Strategy Growth State – Our Plan for Prosperity • Capturing new opportunities from invites the key sectors of South Australia’s our clean energy transition – adding economy to set ambitious goals for value to our existing advantages growth to sharpen the opportunities for from in-demand resource assets and investment and the policy trade-offs for the advanced state of our energy government consideration. transition. The Energy and Mining Strategy will The four overarching targets for industry outline the potential for growth from and government in this Consultation this sector and inform government on Paper collectively support the sustainable industry’s needs in delivering stronger 3 per cent economic growth objective sustained economic growth. for the State. There is an inter-relation between energy As the world advances toward a low- and mining, between our gas production carbon future, South Australia has an and energy generation, between the competitiveness
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