South Australia achieves record mineral and petroleum production

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Image credit: flickr User: Corey Scholz

In a media release, Mineral Resources and Energy Minister Tom Koutsantonis revealed that South Australia’s mineral and petroleum production has surpassed the 2012/13 result by more than $1.3 billion, topping  $7.5 billion in 2013/14– the highest level ever recorded.

Image credit: flickr User: Corey Scholz
Image credit: flickr User: Corey Scholz

“This record production adds to other milestones achieved in South Australia including record investment in petroleum exploration of $531.3 million and a doubling of mining employment on a decade ago,” Mr Koutsantonis said.

According to the Minister, the new production record is due to the drastic increase in iron ore production; steady production output for major commodities (copper, gold and uranium); and the increase in petroleum production.

In 2013/14, iron ore production rose in volume and value to $1.9 billion (15.9 million tonnes), which is an increase from the $1.29 billion (11.9 million tonnes) recorded in 2012/13.

Copper is the SA’s major mineral commodity that generates total sales value of $2 billion, while oil and gas production has reached $1.89 billion, up from $1.3 billion in 2012/13.

“These results are confirmation that the State Government’s far-sighted approach to industry development through the Plan for Accelerating Exploration, and its Roadmap for Unconventional Gas has created real opportunities for exploration, mining and petroleum production,” the Minister said.

“We acknowledge the ongoing challenges mineral explorers face from commodity prices to accessing global risk capital. But we recognise mining is a long-term venture and we will continue to take a long-term view in the development of our resource initiatives and policies. That’s why we have been rated in RESOURCESTOCKS magazine’s World Risk Survey as Australia’s best low -risk destination to develop resources. We will fiercely protect this reputation.”

The Minister also revealed that South Australia will increase the value of its mineral and energy resources production to $10 billion per annum (by 2017), creating an additional 5000 jobs.

And that’s not all; a boost in investment in exploration appraisal to $430 million within the South Australian Cooper-Eromanga basins has been announced.

In addition, the Government plans to attract further three resource companies with head offices in Adelaide and to increase cumulative investment in South Australian offshore petroleum exploration to reach $1 billion.

In order to achieve the above mentioned milestones, Premier Jay Weatherill has set s 10 economic priorities that must be implemented in the following year.