PERTH (miningweekly.com) – South Australia Minister for Mineral Resources and Energy Tom Koutsantonis told a conference on Monday that the state government was hoping to encourage further investment in the resources sector, more specifically into copper, despite the drop in commodity prices.
“There is not a person in this room who isn’t aware of the dramatic fall in commodity prices, in particular iron-ore and oil.
“Yet it is the work we do now that will determine the scale of our success when the inevitable upswing gathers pace,” Koutsantonis told delegates at the South Australian Resources and Energy Investment Conference, in Adelaide.
The Minister noted that the value of South Australia’s mineral and energy resources output had increased to A$7.5-billion in 2013/14, on the back of a decade of A$11.8-billion of private capital expenditure fed from a decade of private exploration expenditure, amounting to A$4.2-billion.
While declining commodity prices, specifically those of iron-ore and oil, were casting a pall over the global resources sector, Koutsantonis said the South Australian government continued to work on the strategic planning required to ensure that the state took its “rightful place among the titans of mining”.
“Right now, we have a suite of advanced copper and iron-ore projects that will prosper with further investment. And we have emerging opportunities in tin, lead, silver, graphite and kaolin, and high potential for nickel discoveries.”
Koutsantonis pointed out that South Australia hosted nearly 68% of the country’s total copper resources, with Australia estimated to host about 13% of the global copper resource, second only after Chile, which hosted 28%.
“And yet while Chile produces more than 5.8-million tonnes of copper a year, South Australia annually produces just 300 000 t. I believe we can and we must do much better.
“Our aim, therefore, must be to translate our world-class resource potential into a step-change in copper production.”
Meanwhile, the state was also investigating the possibility of expanding its role in the nuclear fuel cycle.
South Australian Premier Jay Weatherill in March this year announced a Royal Commission into the nuclear fuel cycle, which would have until May next year to make a recommendation into the production of nuclear energy, as well as the enrichment of uranium and waste storage.
“After a quarter of a century of establishing South Australia as the centre of uranium mining in this country, the government believes this is the appropriate time to initiate a mature debate on the risks and benefits of expanding our role in the nuclear fuel cycle,” the Minister said on Monday.
“I am aware Canada’s nuclear industry contributes almost $7-billion to its annual gross domestic product and directly employs 20 000 people. An industry of comparable size in South Australia would be a considerable expansion of our current capabilities.”