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Progress Against Objectives - December 2017

Unlocking the full potential of South Australia’s resources, energy and renewable assets

2017 Objective

Status (as at December 2017)

Progress

Increase the value of our mineral and energy resources production from $7 billion (2013 baseline) to $8.5 billion per annum (by end of 2017), creating an additional 3,000 jobs.

Not Achieved

The value of mineral and energy resources production for 2016-17 was $5.3 billion.

The ABS has reported approximately 9,500 people were employed in the mining industry in the year to August 2017 in South Australia. However, state government data, collected by direct survey of the relevant mining companies, indicates that 11,400 people were directly employed in the state’s mining sector in the first half of 2017.

Double the number of Aboriginal people working in the mineral and energy resources sectors from 250 to 500.

Not Achieved

According to state government data collected by direct survey of the relevant mining companies, there were around 320 Aboriginal employees in the mining sector in the first half of 2017.

State government programs underway to support Aboriginal employment and business development in the mining industry include Aboriginal Business Connect, Governors Aboriginal Industry Cluster Program and the Premier’s Community Excellence Awards in Mining and Energy.

Maintain private investment in mineral and energy resources exploration expenditure above $650 million per annum in 2017.

Not Achieved

In 2016-17 private investment in mineral and petroleum exploration expenditure reached $207.9 million.

Increase cumulative investment in South Australian offshore petroleum exploration to reach $700 million by end 2017.

Not Achieved

The cumulative offshore work program of petroleum exploration is forecast to be $215m by the end of 2017.

This lower than expected investment can partly be explained by the fact that mobilisation and drilling costs have declined in the past couple of years from more than $200m per well to an average of about $60m per well.

Subject to commonwealth government approvals and the world price for oil and liquefied natural gas (LNG) holding at a level which supports investment, the cumulative investment in offshore petroleum exploration is expected to increase to more than $800 million by the end of 2021.

Increase cumulative investment in exploration and appraisal to $430 million within the South Australian Cooper – Eromanga basins.

Achieved

In 2015-16, the accumulated exploration and appraisal expenditure was $432 million.

Expand investment in renewable energy to be on track to increase the proportion of electricity generated from renewable sources from 39% in 2013–14 to 50% in 2025.

Achieved

As at 30 June 2017, there has been approximately $7.6 billion in capital expenditure investment in renewable energy, driven predominantly by investment in large-scale wind and rooftop solar PV generation.

During 2016-17, South Australia generated 48.9% of its total electricity generation from renewable energy sources.

Create the foundations for a substantial and sustainable bioenergy industry.

Achieved

A number of strategies to develop a bioenergy industry in the state are being implemented under the Bioenergy Roadmap for South Australia:

  • Gathering data and publishing bioenergy resource maps for South Australia as an informational resource for potential investors
  • Providing grant funding support for pre-feasibility assessments for potential bioenergy projects (12 approved to as at September 2017)
  • Providing grant funding support for feasibility studies for highly prospective bioenergy projects (1 approved as at September 2017)
  • Running bioenergy forums for industry in regions with high bioenergy potential (2 undertaken as at September 2017)
  • The Renewable Technology Fund is expected to provide an opportunity for grid-connected bioenergy projects to be built.

Attract 5 to 10 additional mining service companies to South Australia.

Achieved

As at September 2017, five additional mining service companies have been attracted to South Australia. They are Pinssar, Aquachem, Chrysos, Laserbond and Enerflex.

Attract a further 3 resource companies with head offices in Adelaide.

Achieved

OZ Minerals, Hillgrove and Investigator Resources have re-located to Adelaide. In September 2017, it was announced that Strike Energy would move their head office from Sydney to Adelaide.

Position South Australia to become a leading mining and energy services hub for the nation.

Progress Made

The state government has invested in the development of the mining and energy services sector in line with its plan to triple copper production triple to one million tonnes a year within the next two decades, unlock the state's gas deposits, and bring investment in iron ore.

The Mining and Petroleum Services Centre of Excellence has facilitated technical development of the state mining and energy services industry through the formation of 37 collaborative projects, valued at over $40 million and achieving a ratio of greater than 5:1 private to state government funding.

Further complementary business support provided through the PACE Supply Chain Development Program, has assisted companies develop commercial capabilities to grow their businesses and expand into new geographical markets.

In September 2017, it was announced that the University of Adelaide would lead a $14.6 million research consortium to develop advanced technologies to boost South Australia’s copper production and develop a globally competitive mining technology services sector in the state.

Successfully diversify 10 non mineral and energy suppliers into the minerals and energy resources sector.

Achieved

As at September 2017, 11 companies have successfully diversified into the resources sector. They are LABSA, Tooperang Quarry, IMPTEC, Hallet Concrete, Sigma Cranes, Laserbond, IPACS, Innodev, Nitschke Group, Consillium and QMS Connect.

Ensure $150 million of contracts are awarded through Industry Capability Network SA (ICNSA) to local suppliers for the minerals and energy sector over the next three years.

Progress Made

As at 31 December 2017, ICNSA facilitated $95.2m in contracts for the minerals and energy sector.

Use regulatory and procurement resources to promote the deployment and uptake of electricity storage solutions.

Achieved

On 1 December 2017, the Hornsdale Power Reserve, featuring the world’s largest lithium-ion battery was launched. The battery, located near Jamestown, was installed under an agreement with French renewable energy company Neoen and United States sustainable energy company Tesla. It provides network security services to South Australian electricity consumers in concert with the state government and the Australian Energy Market Operator (AEMO).

In August 2017, it was announced that SolarReserve would build a 150 MW solar thermal plant including molten slat energy storage capability. When built it will be the largest solar thermal plant of its type in the world.

Attract 5 sustainable energy service companies to South Australia.

Achieved

As at November 2017, five sustainable energy service companies have been attracted to South Australia. They are Enzen, Tempus Energy, Tesla, SolarReserve and SunSHIFT.