SA mining and energy strategy to open up north and create 28,000 jobs
Build it and they will come – the energy issue is fixed, now we need water to power up mining. A new strategy seeks to put in place building blocks for investment and more than 28,000 jobs.
SA News
Don't miss out on the headlines from SA News. Followed categories will be added to My News.
More than 28,000 jobs would be created in South Australia under a strategy to more than double mining and energy export revenue, the State Government forecasts.
The strategy, published on Tuesday, sets four key targets for the sector as one of nine areas the government will focus on for economic growth to accelerate out of the pandemic-induced recession.
Just hours after the report was released, BHP announced it had shelved a plan to spend $3.7 billion expanding the Olympic Dam copper and uranium mine, saying the complex ore body made it unviable.
The Government is allocating $5.6 million to help create the building blocks to underpin private investment – including making water available for road building and mineral processing, Energy and Mining Minister Dan van Holst Pellekaan said.
“Power, water, processing, freight – they’re what miners need beyond the obvious need of a mineral or petroleum resource,” he said.
“Electricity is not hard now. Water is the biggest challenge.”
The funding would be directed at creating infrastructure corridors for priority regions, with the government seeking private companies to co-invest and share facilities.
The sector now employs about 44,000 people directly and in related business including providing equipment, technology and services.
The four targets are:
INCREASE export revenue from $5bn now to $8bn by 2025 and then $13bn by 2030.
ACHIEVE 100 per cent net renewable energy generation for the state by 2030.
ATTRACT sustained exploration spending of $300m a year by 2025. Last financial year, it totalled $220m.
OFFER energy supply which is competitive nationally by 2025 and internationally by 2030.
Copper miner OZ Minerals, which operates the Carrapateena and Prominent Hill mines, said the strategy’s plan to open up the far north of the state would deliver a major economic boost.
“For example a water pipeline to the north of the state would create multiple opportunities as a key enabler not just for mining but also for other industries,” chief executive Andrew Cole said.
“Copper is an important mineral for the renewables industry, and there is a natural synergy between the mining responsibly and the low carbon future for energy.”
The strategy document says SA’s wind and solar resource advantages “can be leveraged for further investment”.
Mr van Holst Pellekaan said SA was “unarguably among the global front runners leading the transition to a modern energy system”.
Renewable energy in remote sites could provide much of the power needed for mining “rather than endless truckloads of diesel” being needed, he said.
Changes to come include creation of a hydrogen industry with SA as producer, consumer and exporter.
The strategy expects half of all new car sales to be electric vehicles by 2030 and Mr van Holst Pellekaan said the government was committed to facilitating a network of charging stations as quickly and extensively as possible.
He is confident the planned Project EnergyConnect interconnector between SA and NSW proposed by ElectraNet and TransGrid will facilitate investment in renewable energy projects in SA.
“It’ll protect SA and open up export opportunities for SA to replace retiring coal in NSW – they need it,” he said.
The scale of SA’s energy transition has been shown in recent events.
The government has withdrawn an order that electricity suppliers must be able to prove in advance that they have secured enough supply. In January, the government activated the Retailer Reliability Order for the summer of 2022 but this month it rescinded the order.
Grid-scale solar farms have been adding rapidly to the capacity provided by SA’s rooftop solar.
The rapid growth of grid-scale solar farms led to SA being powered 100 per cent from solar for an hour on Sunday October 11 – a first for any major electricity system globally.
“Never before has a jurisdiction the size of SA been completely run by solar power, with consumers’ rooftop solar systems contributing 77 per cent,” Australian Energy Market Operator managing director Audrey Zibelman said.
Rooftop solar provided 992MW and solar farms 313MW driving SA’s operational demand to a record low 300MW.
Prices are also falling with an Australian Competition and Consumer Commission report on Monday recording a 3.1 per cent fall in median residential prices in SA in 2019 compared to 2018.
Mining and Energy Advisory Council chair Pauline Carr said the government’s strategy evolved through extensive consultation with the industry.
The council, which is the government’s principal independent advisory body, called for the government to focus on:
TRADE, especially promoting SA’s potential for hydrogen and critical minerals such as graphite.
INFRASTRUCTURE such as sealing the Strzelecki Track – a project which has now begun.
LAND, water and the environment – improving water availability and fostering better relationship with traditional owners and other land users.
SKILLS and innovation to develop a deeper pool of talent for the workforce.
The other eight sectors being promoted for growth by the government are the creative industries, hi-tech, defence, space, health and medical industries, tourism, international education and food, wine and agriculture.