S.A. BEGINS MINING BOOM-GOV'T

South Australia is verging on a mining boom with mineral exploration in SA continuing its upward spiral.

Australian Bureau of Statistics figures for the 2005 June quarter put mineral exploration in SA at $20.1 million – the highest quarterly figure for SA since the ABS began reporting individual jurisdictions in 1988.

Premier Mike Rann says the data shows the Rann Government’s initiatives to promote the State’s mineral potential on the global scale are hitting the mark.

“The 2005 June quarter figure is 28% higher than for the same quarter last year,” said Mr Rann.

“This is really encouraging as we work to more than double the Olympic Dam mine which will create more than 10,000 jobs; start significant copper and gold production at Prominent Hill by Oxiana Resources by 2008 and see Iluka Resources complete its assessment of the world class heavy mineral sands deposits in the Eucla Basin.

“Combined these will deliver massive benefits to our State.

“The ABS figures also show that mineral exploration spending for the 2004-2005 financial year was $66.8 million - a 60% increase on the $41.7 million spent in 2003-2004.”

“And South Australia’s share of national mining expenditure has grown to 6.5%, compared with 5.3% in the previous financial year.”

“This clearly shows that our mineral exploration boom is strong and consistent and shows every sign of continuing.”

Mineral Resources Development Minister Paul Holloway says South Australia has experienced strong exploration growth since the Rann Government introduced the PACE initiative – the Plan for Accelerating Exploration.

“This is tremendously important because it shows that major mining companies have confidence in the future of the State, and are investing to expand the state’s resources and mineral wealth.”

“Exploration to expand mines such as Olympic Dam, OneSteel and the Challenger gold mine will help guarantee the economic future of all South Australians. There’s no doubt PACE has put South Australia on the national and international radar for exploration.”

Analysis company Genalysis Laboratory Services has just recorded a record month for its Adelaide operations - thanks to PACE. Managing Director Terry Wheeler says the extra business is largely attributable to work generated via the PACE project and is a clear indication of PACE generating a trickle-down benefit to the supply industry.

PACE aims to achieve $100 million in annual mineral exploration expenditure in South Australia by 2007