Minerals and Energy

The South Australian minerals and energy industry encompasses: 
• Mining (coal, metal ore, oil and gas extraction, services to mining)
• Mining exploration
• Traditional energy generation (coal and gas-based electricity)
• Sustainable forms of energy generation (solar, wind turbine, geothermal)

Overview
South Australia is a key minerals supplier, with almost 40% of the world’s uranium reserves and significant volumes of copper, gold and silver.

South Australia has moved from 18th to 4th place in world mining potential  and exceeded its $100 million exploration expenditure target a year ahead of schedule. South Australia has also attracted over 90% of all geothermal licences and exploration investment in Australia.

South Australia’s wind energy generation capacity will soon represent nearly 19% of the State’s total peak demand, making the State a world leader in wind energy.

South Australia currently has approximately $12 billion worth of projects at various stages of development in the minerals and energy sector, including:

• BHP Billiton’s potential Olympic Dam mine expansion, at the pre-feasibility stage;

• Oxiana’s Prominent Hill, at the mine development stage;

• Australian Zircon’s Mindarie Zircon mine, at the mine development stage;

• Terramin Australia’s Angas Zinc project, at the mine development stage;

• Uranium One’s Honeymoon uranium mine at the mine development stage;

• Exco Resources’ White Dam gold mine project, at the mine development stage.

• For a full list on mining and energy projects visit www.pir.sa.gov.au

The growth of the minerals sector continues to generate increased demand for services such as mine planning, engineering, procurement and logistics, project and construction management, maintenance, information and communications technology (ICT), technical support and environmental management and rehabilitation.  Equipment and infrastructure are needed to support new, large-scale projects.

Output
• $1.8 billion in mining income in 2005-06, representing 3.2% of the State total.
• $233.2 million in mining exploration expenditure in the 12 months to March 2007, representing a 112% increase from the 12 months to March 2006.
• $779 million forecast for upstream petroleum and geothermal exploration, development and production in 2006.
• More than $1 billion invested in wind farms.
• 48% of Australia’s wind power generation capacity.
• 46% of Australia’s grid-connected solar power.

 
Source: ABS

Exports
• $226 million in 2006-07 for mining alone, representing 3.1% of total goods exports.
• 111% growth in mining exports from 2001-02 to 2006-07.
• Key markets for mining include China and Japan.

 Source: ABS

Employment
• 11,149 people employed directly in mining in 2006-07, representing 1.5% of the State total.
• Mining employment expected to double by 2013.
• 4,100 people employed in electricity and gas supply in 2006-07. 
 Source: ABS

Workforce Information Service

Number of businesses
• 660 businesses operating directly in mining in 2004.

Geographic focus
• South Australia’s mines and energy generation facilities are located in the regions, while businesses supporting these operations are mostly located in Adelaide and the Upper Spencer Gulf.

• Mining and exploration operations are spread over much of the State, particularly the Gawler Craton in central Australia and the Curnamona Province in the State’s east.   Petroleum operations are focussed in the Cooper Basin (in the State’s northeast) and Otway Basin (southeast).

Research and development 
• In 2004-05, the South Australian Mining industry invested $37 million in research and development, representing 7% of South Australia’s total business research and development.

• Approximately 170 licensees hold 614 mineral exploration licences covering 325,000 km2 (33%) of the State.

• There are 110 Geothermal Exploration Licences (GELs) covering more than 51,000 sqkm in the State.  The potential upside aggregate investment guarantee and non-guarantee work programs in the GELs is estimated to be $517 million.

• Extensive work is being undertaken on the development of geothermal energy in South Australia’s far northeast, adjacent to the Flinders Ranges in the Murraylands, around lake Torrens and the lower south east of the State.

• The petroleum potential of the state is considered to be at least as significant as discoveries made to date. New explorers in the Cooper and Eromanga Basins have sustained world-class success rates and flank areas remain under-explored. The offshore Otway and Bight Basins and the onshore Officer Basin are considered to have potential for giant new petroleum field discoveries. Onshore oil plays in the Otway Basin, Arckaringa Basin and a number of frontiers Cambrian and older basins as well as the State’s coal seam methane potential also remain under-explored.

• The University of Adelaide is a major centre for mining and petroleum research and education, with the Australian School of Petroleum, Centre for Exploration Under Cover and three key Chairs.

Case studies
BHP Billiton – Olympic Dam
Oxiana – Prominent Hill
Geodynamics
Petratherm
Santos
Cooper Basin New Entrants

Industry groups
Austmine
Minerals Council of Australia
Mining Equipment and Services Council of Australia
Association of Mining and Exploration Companies
Australian Petroleum Production and Exploration Association
Energy Supply Association of Australia
Australian Business Council for Sustainable Energy
South Australian Chamber of Mines and Energy

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