OCTOBER 2016 20 MINING IN SOUTH AUSTRALIA THE AUSTLIAN MINING REVIEW BHP Billiton’s world-class Olympic Dam project. Image: BHP Billiton. A bright future Home to 68 per cent of the nation’s copper and 25 per cent of the world’s known uranium, South Australia’s resources industry is an irrefutable force. Additional State Government support, which aims to kick-start investment and sector growth, reflects its importance. ELIZABETH FABRI SOUTH Australia, affectionately known as the ‘Copper Kingdom’, has been a key contributor to Australia’s mining industry as far back as the 1800s, and today boasts the world’s largest uranium deposit and the country’s largest underground mine, Olympic Dam. In 2014/15 the State’s minerals and petroleum sector had a gross value of product at $5.958 billion and regionally the industry contributed a gross regional product of $6.377bn. While established operations are peppered across the State, the region maintains more than 700 exploration licenses and more than 20 advanced projects in exploration, feasibility and resource definition phases, signifying great promise for the future. In addition to copper and uranium, commodities such as iron ore, gold, graphite, zinc and zircon are generating interest. However, the fate of the sector is resting on a rapid solution to the high energy prices experienced across the State in recent years. The Whyalla steelworks operation is a recipient of State budget funding. Image: Arrium. Photography Sean Kelly. “At this point in time electricity is the number one, two and three thing that needs dollars to be put into South Australia.” a globally competitive resources sector, the community of Whyalla. to be dealt with for the resources sector to Despite inflated energy pricing, support and was welcomed by the industry with “It is important to remember the value thrive,” South Australian Chamber of Mines from the State government has brought open arms. of our resources sector and what it does and Energy (SACOME) chief executive Jason renewed confidence in the sector with a Key areas of focus include the State’s for not only our cities, but the regional Kuchel said. number of initiatives introduced in the last Plan for Accelerating Exploration hubs of our state,” Mr Kuchel said. “Typically contract pricing is … double 12 months set to promote growth. (PACE) Copper initiative; along with “Regional towns near mining what it is in the other eastern states at this the PACE Supply Chain Development operations rely on those projects to point in time. Budget highlights Program; a Mining and Petroleum stimulate life into their economies.” “Until we can actually lower these it Services Centre of Excellence; magnetite The Whyalla spend was promised in makes it very difficult for a number of The State budget, released on 7 July, strategy; and almost $70 million to June ahead of the budget, and involved projects to get up or additional investment committed substantial funds to building support steelmaking, businesses, and $50m over two years to support the OCTOBER 2016 THE AUSTLIAN MINING REVIEW MINING IN SOUTH AUSTRALIA 21 new owner of the Whyalla steelworks world’s third-largest copper producer. operations, following Arrium’s voluntary “By trebling our copper production, we administration in April. have the potential to create up to 10,000 “These steps are critical for the extra jobs, increasing the workforce regional economy and employment in the involved in the sector to 15,000 people,” town,” Mr Kuchel said. Premier Jay Weatherill said. “Thousands of people will, and already “This would equate to South Australia are, affected by this, so it is good to see producing and exporting more than $8 the State government being proactive.” billion of copper per year, with the red Treasurer and Minister for Mineral metal remaining the State’s number one Resources and Energy Tom Koutsantonis said export commodity.” the steelmaking industry in Whyalla was not The strategy will accelerate further only integral to the community but the nation exploration, discovery and information; as a whole, and formed the building blocks for develop innovative infrastructure, services major infrastructure projects. and a research hub; and build on industry “This funding facility is not a handout and community capacity. – the social and welfare costs of losing In addition, in August the State such a significant employer in a regional announced $3.5m in grants had been centre would be far more expensive – awarded to 26 mineral exploration projects South Australia and the nation as a whole through the PACE Discovery Drilling simply can’t afford to let that happen,” Mr program. Koutsantonis said. Under the program, explorers could “We are pleased that so many local supply access grants of up to $250,000 – up from chain businesses have taken up the offer of $100,000 offered in previous rounds, across the State government’s interest-free loan a wide range of commodities. scheme, because we need these businesses to be there to supply Arrium when it comes out Magnetite strategy of administration.” SACOME has also received a $400,000 The new magnetite strategy, released in boost over two years for the employment May, set an export goal of 50mt of iron of an industry connections manager, a ore by 2030, and aimed to secure $10bn safety summit for 2016/17, sponsorship for worth of committed investment in iron ore the South Australian Mines Emergency projects. Response Competition, and the chamber’s Currently the State produced about annual innovation summit. 1.6mt of magnetite a year from the Middleback Ranges; new discoveries in the Eyre Peninsula and Braemar Province “At THIS POINT IN TIME could substantially increase this. ELECTRICITY IS THE “South Australia is blessed with vast magnetite deposits and the aim NUMBER ONE, twO AND of this strategy is to leverage that THREE THING THAT NEEDS OZ Minerals’ Prominent Hill mine. Image: Oz Minerals. natural endowment and transform it into investment, jobs and exports,” Mr TO BE DEALT WITH FOR THE Koutsantonis said. RESOURCES SECTOR TO interpretation. State government responding to industry “If we can capitalise on these deposits Commenting at the time of the needs. and increase the amount of iron ore THRIVE.” announcement, Treasurer Mr Koutsantonis “The government recognises that just we export there will also be significant said the new geoscientific initiative would one single mine can be a game changer for opportunities for growth and jobs in the help the exploration industry recover. the State’s economy,” Mr Kuchel said. supply chain around this industry. “South Australia is already home to “This initiative is aimed at assisting “We can’t drag our feet – South Australia Copper support the vast majority of the nation’s known the junior exploration sector, which is the needs to plan now so we can capitalise copper resources but we instinctively know powerhouse of finding new discoveries, to quickly when the inevitable upswing in the On 30 November 2015, the South there is much more to be found deep under focus their very limited resources on even commodities cycle happens.” Australian government announced its cover,” Mr Koutsantonis said. better targets that will be defined by this The strategy looked at ways to bring $20m PACE Copper plan for the next two “We need to support our explorers to additional data.” forward new projects and maximise years, which was described as the ‘rebirth’ continue to go out there and find it. On 23 February 2016, the Premier then economic benefits of the resource. of exploration in the Gawler Craton region. “PACE Copper will do exactly that by introduced a broader plan for the State’s “The magnetite strategy is obviously The plan will deliver the world’s providing explorers with the analytical copper industry with the launch of a only in its early stages and we certainly see largest high-resolution airborne tools needed to better target the next dedicated Copper Strategy. it as very positive particularly in relation geophysical and terrain imaging program; elusive major discovery that then leads to The strategy aimed to triple copper to the potential for a magnetite marketing industry-government collaborative drilling a pipeline of projects.” production in the next 15 years to 1 million strategy for the state, which highlights the on new targets; and world-class data and Mr Kuchel said it was great to see the tonnes a year, and position Australia as the benefits of South Australian magnetite in Prominent Hill produces more than 100,000 tpa. Image: Oz Minerals The Whyalla steelworks site. Image: Arrium. Photography Sean Kelly. OCTOBER 2016 22 MINING IN SOUTH AUSTRALIA THE AUSTLIAN MINING REVIEW Hands-on training with TAFE SA OPCE provides a low hazard, interactive training environment utilising operational upstream field Image: Arrium. Photography Sean Kelly. plant and equipment. reducing emissions and other costs for lower Eyre Peninsula was granted a steel mills in China, or anywhere else mining lease. THE Onshore Petroleum Centre of Excellence with TAFE SA’s collaborative approach with it might be sold to for that matter,” Mr “Graphite is a key ingredient required (OPCE) training facility is an industry industry to provide hands-on training that Kuchel said. for the production of lithium ion batteries initiative; the result of a partnership between leads to jobs. “There’s a large amount of very used in mobile phones, electric cars TAFE SA and the state’s largest oil and gas “Using the OPCE’s simulated training consistent good quality magnetite which and solar PV storage systems,” Mr producers to establish a specialist training environment, students get a real world can help the steel mills reduce their Koutsantonis said. facility to meet the industry’s requirements. experience of what it’s like in the field and energy and emissions, which helps them “Through projects such as Kookaburra The unique training facility at TAFE SA’s what is expected of them,” Ms Roberts said.