Adelaide, Oct 5, 2006 (ABN Newswire) - South Australia has hundreds of millions of dollars of resource developments in the pipeline because its State Government is prepared to back support for the sector with cold hard cash, according to SA's most senior resources industry official, Dr Paul Heithersay.
Dr Heithersay - Executive Director of Primary Industries and Resources SA (PIRSA) - told a Sydney Mining Club lunch today that SA had leapt ahead of larger states like NSW and Victoria in exploration spending because of stronger resources sector support at the highest political levels.
"In its 2004 Strategic Plan, the SA Government set a goal to almost treble exploration expenditure to $100 million by 2007 - we have surged past that target a year early with companies spending $146 million in exploration expenditure in 2005-06," he said.
"That is more than outlays in NSW, Victoria and Northern Territory - because the State Government, from the Premier down, has backed the resources sector through the innovative Plan for Accelerating Exploration (PACE) program.
"PACE puts public money into holes in the ground because it is regarded as a good investment in the future development of the resources sector, bringing investment and jobs to the State.
"The PACE investment is paying off - for an outlay of $5 million over the past 2 years, companies such as Iluka, RMG Services, Alliance Resources have discovered new mineralisation with a potential in-ground value of hundreds of millions of dollars to support a string of potential development projects for the future."
Dr Heithersay said among the 110 exploration programs that have been given added impetus by PACE were Teck/RMG Services' Carrapateena copper project, Iluka's Gullivers Project, Alliance/Quasar Beverley 4 Mile uranium project, Terramin's Angas zinc project, and Hillgrove Resources' Kanmantoo copper project.
"While explorers welcome the financial support from PACE, the SA Government's backing has also been instrumental in changing perceptions of the State," he said.
"It is now a very attractive place in which to do business with excellent cost-competitiveness, good quality services and a real drive to cut red tape.
"The PACE program, and the high quality geophysical data being produced by PIRSA and provided to industry at no cost have been applauded in Australia and overseas.
"It is a rare to have such bold political initiatives driving the resources sector and the results are there for all to see."
Dr Heithersay said there had been 14 new Adelaide-based explorers listed on the Australian Stock Exchange in the past 3 years, with many companies also focussing their efforts in SA from head offices interstate and overseas.
"South Australia is certainly setting the pace amongst State Governments in supporting the resources sector," he said.
Contact
Paul Heithersay, Executive Director, PIRSA
Tel: (08) 8463 4153
Mob: 0428 895 639
Peter Gill, Field Public Relations
Tel: (08) 8234 9555
Mob: 0417 784 059
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