SACOME Annual Report 2007-08

President’s Report
The outstanding momentum
that the South Australian mineral
resources industry achieved last
financial year continued into 2007 - 08.
Mineral exploration in the state totalled
$355.2 million for the year under
review representing 14.4 per cent of
the national spend - a huge increase
over our 5.3 per cent share in 2003/04
and well above our per capita share
with only 7 per cent of the nation
people living in South Australia.
As I have said before, this outstanding
achievement is the direct result of
the South Australian Government’s
plan for accelerating exploration
(PACE) launched in 2004. Importantly,
exploration has been successful and
has resulted in significant new mineral
resource discoveries and justification
for mine expansions. Thirty new
mine developments and major mine
expansions are in the pipeline. The
SACOME infrastructure study combined
with updated figures obtained by
SACOME indicate that these projects
represent a further $25 billion in private
infrastructure investment in South
Australia in the years to come.
If mineral exploration expenditure
levels remain high, we can reasonably
expect many more economic mineral
discoveries by 2020.
I believe that for the first time, South
Australia is on the cusp of realising
our rich mineral endowment. The
resources sector is expected to become
the most important industry to the State
of South Australia underpinning years
of expansion, bringing many years of
prosperity and opportunity for regional
communities, indigenous people
and all South Australians.
This success has to date translated
into export earnings for South Australia
from the mineral resources sector
(including petroleum) that is now
outstripping all other sectors. Minerals
exports accounted for 26 per cent of the
States exports with Petroleum a further
3 per cent. Combined, our industry
contributed exports of over $2.6bn and
overtook the exports of the wine industry
for the first time and even outstripped
agriculture and food to be the number
one exporting industry for the first time.
Exports, of course, are not the
whole picture with South Australia
using much of its own coal and gas
resources for energy use, as well as
steel in the construction sector, and lead
and zinc products in other applications.
In addition, our industry also supplies
its products to other states, overall
increasing the importance of South
Australia to the whole nation.
All this activity has also seen many
service providers to the industry
increase their presence in SA and for
the first time, many companies have
opened an office in SA rather than
simply servicing the needs of mining
from elsewhere. These companies are
also vital to the success of mining and
SACOME has worked with the State
Government to assist these companies
expand their capacities and also to
attract new service providers,
particularly where there are gaps.
One of the ways we have done this is
to participate with the Government in
overseas missions to Chile and Canada
throughout the year.
The Chamber tackled many issues
during the year a number of which
were handled and assessed by our
specialist committees. I must thank
those committees and their chairs for
their outstanding work, without which
we would be much less effective.
Finally, I must express my very sincere
appreciation to our small staff for their
outstanding efforts during another
hectic year under the very capable
leadership of Jason Kuchel.
John Roberts
President
SACOME 2008 ANNUAL REPORT