Minerals and Energy

The South Australian minerals and energy industry encompasses:

• Mining
• Minerals manufacturing
• Traditional energy generation (coal and gas-based electricity)
• Sustainable forms of energy generation (solar, wind turbine, geothermal)

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

The State has huge mining potential - ranked 10th most prospective location in the world by Canada's Fraser Institute.¹

South Australia currently has approximately $13 billion worth of projects at various stages of development in the minerals and energy sector, including:

• BHP Billiton’s potential Olympic Dam mine expansion
• Oxiana’s Prominent Hill project
• Iluka Resources' Jacinth/Ambrosia Heavy Mineral Sands project
• Terramin Australia’s Angas Zinc project
• Uranium One’s Honeymoon uranium mine
• Exco Resources’ White Dam gold mine

The minerals sector continues to generate strong investment opportunities in 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.

For more information on mining and energy projects and exploration, visit:

www.minerals.pir.sa.gov.au and

www.pir.sa.gov.au/petroleum_and_geothermal

• South Australian Mining Equipment, Technology and Services Directory_published October 09

Output

• Mining contributed $2.9 billion (4.4%) to the State's Gross Value Added in 2007-08.²
• $220.8 million mining exploration expenditure in the year to the June quarter 2009.³
• South Australia has 58% of Australia’s installed wind power capacity.⁴
• South Australia has over one-third of Australia’s grid-connected solar power system.⁵
  

Exports

• $2.8 billion minerals and mineral manufactures exports in the year to September 2009, or 31% of the State's total goods exports.⁶
• Key markets for minerals and minerals manufactures include China and Japan.⁶

Employment

• 7,800 people employed in mining and 14,750 employed in metals manufacturing in the year to August 2009.⁷
• 5,500 people employed in electricity and gas supply in the year to August 2009.⁷
  

Workforce Information Service

Number of businesses

• 480 businesses in mining and 1,248 in metal manufacturing in 2006-07.⁸
• 72 businesses in electricity and gas supply in 2006-07.⁸

Research and development

• $247 million spent on mining industry research and development in 2007-08, or 27% of the State total.⁹
• The University of Adelaide is a major centre for mining and petroleum research and education, with its Australian School of Petroleum and Centre for Mineral Exploration Under Cover.
  

Geographic focus

• 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.
• Businesses supporting mining and exploration operations are mostly located in Adelaide and the Upper Spencer Gulf.

Case studies

BHP Billiton – Olympic Dam
OZ Minerals – 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

1. Fraser Institute, Survey of Mining Companies, 2008-09, www.fraserinstitute.org/researchandpublications/publications

2. Australian Bureau of Statistics, Australian National Accounts: State Accounts, Catalogue 5220.0, spreadsheet 1 and 5, www.abs.gov.au

3. Australian Bureau of Statistics, Mineral and Petroleum Exploration, spreadsheet table 4, Catalogue 8412.0, www.abs.gov.au

4. Government of South Australia, SA home to more than half of nation's wind power, media release: 13 June 2008, www.premier.sa.gov.au/news.php?id=3258

5. Department of Environment, Water, Heritage and the Arts, Program Statistics: Systems installed by State, www.environment.gov.au/settlements/renewable/pv/index.html

6. Australian Bureau of Statistics, International Trade in Goods and Services, Australia, Cat. No. 5368.0, unpublished.

7. Australian Bureau of Statistics, Labour Force, Catalogue 6291.0.55.003, spreadsheet 5 and data cube E06_aug94, www.abs.gov.au

8. Australian Bureau of Statistics, Counts of Australian Businesses, including Entries and Exits, Catalogue 8165.0, www.abs.gov.au

9. Australian Bureau of Statistics, Research and Experimental Development, Businesses, Catalogue 8104.0, www.abs.gov.au

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