Premier Peter Malinauskas to reveal BHP Oak Dam environmental approval in major CEDA State of the State economic speech

The Premier was playing hard to get with his message to one of Australia’s biggest firms on plans for a multibillion-dollar Spencer Gulf project.

A flirty-sounding Premier Peter Malinauskas is demanding “a pre-nup” from resources giant BHP ahead of plans for a multibillion-dollar Spencer Gulf desalinisation plant to boost water supply for mining and hydrogen projects.

Warning BHP had “left other Premiers at the altar before”, Mr Malinauskas declared he would not “make that mistake” and insisted the firm contribute to a $200m environmental impact statement (EIS).

In a veiled reference to BHP’s much-hyped but scuttled plans for Olympic Dam mine expansions that politically wounded former Labor premiers Mike Rann and Jay Weatherill, Mr Malinauskas told BHP he was “excited”, “interested” and “attracted to that twinkle in your eye” but insisted: “I want a pre-nup” over the proposed desal plant.

A flirty-sounding Premier @PMalinauskasMP was playing hard to get with his message to resources giant BHP on plans for a multibillion-dollar Spencer Gulf project. Read the story: https://t.co/ztpELOhZVu#saparli#TheAdvertiserpic.twitter.com/aooApseUPu

— The Advertiser (@theTiser) March 29, 2023

In a key economic speech, Mr Malinauskas also revealed a Hydrogen Act approved by Cabinet on Monday would allow big global firms to “participate in grabbing land” with high-quality wind and solar energy potential.

The Premier said he expected to received a business case next week for the Northern Water Project, which was headlined by a desalinisation plant at one of two locations he did not disclose.

Affixing firm timelines, Mr Malinauskas demanded BHP decide whether to proceed with the year-long EIS by mid-year, then make a final investment decision by the following 2024/25 summer.

Directly addressing BHP chief operating officer Edgar Basto, Mr Malinauskas said as a relatively new Premier he had approached their “burgeoning partnership with excitement”.

“I’m filled with a bit of nervousness, that new relationship energy. But, BHP, I’ve been watching. I’ve seen you flirt with Premiers before,” he told the Committee for Economic Development of Australia event.

“I’ve seen you go steady. I’ve even seen you engaged. But I’ve also seen you leave other Premiers at the altar. More than one.

“So I say to BHP now: ‘I’m excited. I’m interested. I’m attracted to that twinkle in your eye. But I want a pre-nup.”

Referencing the hydrogen legislation to be introduced to parliament before its midwinter break, Mr Malinauskas said investors wanted to plough billions of dollars into green hydrogen developments and needed land access for renewable energy projects to power industrial-scale electrolysers.

The legislation is understood to allow for fair and equitable acquisition of pastoral land, in particular, suitable for large-scale wind and solar energy projects.

He also announced an Economic Development Board would be re-established, having been scrapped by the former Liberal government, and legislation for a Co-ordinator-General role to spearhead major private sector developments through government processes.

Declaring restoring the health system “to a better state of play” was “a key priority of my government”, Mr Malinauskas then insisted the “hydrogen program” and associated “decarbonisation opportunity” were “central to this government’s platform”.

“Health is a problem that needs to be fixed but the decarbonisation opportunity and program can change the course of the state,” he said.

Australian Premier Peter Malinauskas. Picture: NCA NewsWire / Kelly Barnes

Mali reveals timelines for SA’s next big projects

Environmental approval for one of the state’s largest-ever mineral exploration programs will be revealed by Premier Peter Malinauskas in his first “State of the State address” on Wednesday.

Pitched as a major economic statement, the Premier’s speech will hail approval of BHP’s Oak Dam next-phase exploration as a jobs and investment driver in the hunt for copper – crucial for energy transition.

Mr Malinauskas will use the State of the State address, at a Committee for Economic Development of Australia event in Adelaide, to spell out timelines for key projects including a $593m hydrogen power plant near Whyalla.

This will include pinpointing top-line economic opportunities for the state and putting clear guidelines around key milestones to achieve them.

In his speech, the Premier will position South Australia as ideally placed to capitalise on global challenges of decarbonising the economy and geopolitical instability.

Up to 5500 jobs will be created by Adelaide-based construction of nuclear-powered submarines under the AUKUS pact, revealed in a tripartite announcement in San Diego on March 14.

Premier Peter Malinauskas talking to workers at the United Kingdom’s Barrow-in-Furness nuclear submarine shipyard, operated by BAE Systems. Picture: Supplied

The approval for Oak Dam, 65km southeast of BHP’s Olympic Dam mine, allows for up to 14 drill rigs – more than double the current number – along with an accommodation camp for up to 150 people and core processing facilities.

Mr Malinauskas said the Oak Dam project would “create jobs and investment in our state”, because the approval allowed “one of the largest exploration programs ever undertaken in South Australia”.

“While still in its early stages, BHP’s Oak Dam project presents a significant opportunity for the expansion of copper production in South Australia,” he said.

“The approval brings BHP a step closer to defining the extent of this world-class

discovery, with an eye to developing another copper deposit in the highly prospective Gawler Craton.”

Premier Peter Malinauskas, who will deliver his first “State of the State address” on Wednesday. Picture: Ben Clark

BHP has been given state government approval for the ongoing Exploration Program for Environment Protection and Rehabilitation for the Oak Dam project, which is forecast to unlock millions of dollars in investment as drilling continues and the accommodation village is established.

BHP chief operating officer Edgar Basto branded Oak Dam “an exciting prospect and growth option for our copper business”.

“With high-quality copper resources, South Australia is well-placed to benefit from the global trends of electrification and decarbonisation,” he said.

The Oak Dam prospect was discovered in 2018 and BHP has already drilled more than 90km, recording intercepts of copper of up to six per cent in an ore body 700m to 900m below the surface.

Delivering BHP’s half-yearly results in February, chief executive officer Mike Henry said copper studies were being accelerated and highlighted “encouraging results” at Oak Dam.

BHP has emphasised plans to engage groups including traditional landowners, with a view to converting the exploration licence to a retention lease.

It is understood the Liberal Opposition also intends to pivot toward economic issues, particularly the cost-of-living crisis.

This is likely to involve highlighting the government’s spending and debt challenges ahead of the June 15 State Budget, while continuing to apply pressure over Labor’s election vow to “fix the ramping crisis”.

SA Greens mining spokesman Robert Simms accused BHP of having a “chequered environmental record”, arguing the Olympic Dam mine had faced criticism for the huge water volumes drawn from the Great Artesian Basin and failure to strike agreements with native title claimants.

“The state government must ensure that history won’t repeat itself. In particular, the government must assure South Australians that there will be sufficient water for the project, that there has been adequate consultation with traditional owners, and that appropriate steps are being taken to conserve native vegetation,” he said.

Global hydrogen firms can ‘grab land’ under new laws

Big global hydrogen industry firms will be able to “participate in grabbing land” with high-quality wind and solar energy potential under legislation revealed by Premier Peter Malinauskas in a major economic statement.

In a wide-ranging speech, the Premier also told mining firm BHP “I want a pre-nup” ahead of plans for a major water supply agreement unlocking thousands of jobs at key resources projects.

Releasing a South Australian Economic Statement, Mr Malinauskas revealed a Hydrogen Act had been signed off by Cabinet on Monday, ahead of final decisions on the government’s $593m hydrogen power plant at Whyalla.

“The legislation will regulate hydrogen in all its forms but, critically, it is going to provide a framework for international investment houses and other big players, like Fortescue Future Industries (headed by billionaire Andrew Forrest) to be able to participate in grabbing land,” he told the CEDA event.

This is understood to involve a process for reasonable and fair exchange of pastoral land, in particular, with high potential for wind and solar energy projects.

Mr Malinauskas also revealed he expected to receive a final business case next week for the Northern Water Project, a scheme aimed at vastly increasing supply.