Premier Jay Weatherill today officially opened Hillgrove Resources copper and gold mine in the Adelaide Hills, highlighting the positive impact projects such as this can have on local communities and economies.

Mr Weatherill said the Kanmantoo project is injecting renewed vitality into the local economy both as a major employer and as a significant purchaser of services.

“During construction, as many as 420 staff worked on the site every day and local company Exact Mining Services is well-advanced in its recruitment drive to service the mine with 170 positions on site during the next five years,” he said.

“Many of those new workers, including trainees, will be drawn from our local skills base – not just in Adelaide but in regional centres such as Mount Barker, Murray Bridge, Strathalbyn and beyond.

“Development of the Kanmantoo project has already visibly raised demand for local lunch catering services, through to trade in local grocery stores and nearby coffee shops, and businesses in nearby towns.

“This is an example in the Adelaide Hills of what this Government is seeking to achieve right across South Australia.

“We are working to ensure the benefits of the mining boom to extend beyond those working in the mines to improve the standard of living for all South Australians.

Mr Weatherill said last week the Reserve Bank of Australia pointed out there is a chain that links the investment boom in the Pilbara and in Queensland to the increase in spending at cafés and restaurants in Melbourne and Sydney.

“Similarly in South Australia, this Government wants to ensure that the link from the investment booms in the Far North, Eyre Peninsula and Braemar provinces reaches mum and dad businesses in Adelaide,” he said.

“That can be through a future fund that grasps the opportunity provided by this once-in-a-generation mining boom for our children and their children.

“There is also plenty of scope for the investment being made in regional South Australia to flow to small businesses and households from Ceduna to Mt Gambier from Roxby Downs to Renmark.”

Minister for Mineral Resources and Energy Tom Koutsantonis said Kanmantoo is expected to yield 21 000 tonnes of copper each year, helping drive South Australia towards its target for increasing mineral production.

Mr Koutsantonis said mineral production in South Australia rose 51.2 per cent year-on-year to reach $4.96 billion in 2010-11 – surpassing by almost $2 billion the former Strategic Plan target of $3 billion by 2014.

“Net mineral industry value increased by 39.7 per cent to $5.913 billion during the same 12-month period, placing South Australia in an excellent position to achieve its $10 billion target by 2020,” he said.

“The mining industry’s contribution to South Australia’s Gross State Product rose by more than $1 billion in 2010-11 to $3.895 billion - the highest percentage growth of all sectors contributing to GSP.

“With a pipeline of projects still to come on line, the outlook for dramatically increasing that contribution to the GSP is looking increasingly.

Mr Koutsantonis said Kanmantoo uses modern mining techniques, makes good use of limited resources such as reclaimed water rather than draw on the River Murray and applies innovative approval processes to bring the mine into line with the latest environmental standards.

“The South Australian Government supported the company’s exploration program through a grant from the Plan for Accelerating Exploration, PACE2020, which assisted Hillgrove Resources with its drill targeting for additional copper resources.

“PACE2020 has provided further support through case management of the project.

“The processes the company adopted in opening this mine demonstrates how to build a strong dialogue with the local community and include them in the procedures.

“A major emphasis has been on community engagement with significant efforts made by Hillgrove Resources to work closely with local community members and interest groups to develop this project, including the formation f the Kanmantoo Callington Community Consultative Committee.

“It is a credit to all stakeholders that this committee has put forward many valuable recommendations - 129 in all - as part of the formal consultation process.

“I am pleased that Hillgrove Resources has factored these recommendations into its best practice mine planning and operational arrangements”.

21 February 2012