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Upper Spencer Gulf study to maximise mining benefits

News Release

www.premier.sa.gov.au

 

Hon Gail Gago

Minister for Regional Development
Minister for Public Sector Management
Minister for the Status of Women
Minister for Consumer Affairs
Minister for Government Enterprises
Minister for Gambling

Friday, 29 July 2011

A State Government study will determine how a heavy industry hub in the Upper Spencer Gulf could enable local industries to leverage opportunities linked to the growing mining and energy sector.

Minister for Regional Development Gail Gago says the feasibility study of up to $500,000 for an Upper Spencer Gulf Heavy Industry Hub was an election commitment and an important step in building the value chain associated with growing industries in the State’s north.

“The Upper Spencer Gulf is the gateway to more than half of South Australia’s 17 major operational mines in the State’s north, with at least another 10 promising projects in the pipeline,” the Minister said.

“A heavy industry hub in this area could boost business development opportunities for companies in high-value engineering, manufacturing and services sectors.

“This study is therefore crucial to better understand the needs of mining-related industries in the Upper Spencer Gulf and to determine how a hub might assist the region to maximise the benefits of current and future mining growth.

“It will investigate industry requirements in terms of infrastructure, materials, trades, services and staffing, which will help inform future investment decisions in the region.

“These findings will also help improve government and industry understanding of how mining growth can be leveraged for the benefit of related industries and how efficient local supply chains can provide a competitive advantage to the State’s mining sector.”

The study will be undertaken in two parts with Stage One reporting on the potential economic benefits of establishing a heavy industry hub or hubs in the Upper Spencer Gulf. Research will involve targeted industry and stakeholder engagement.

Stage Two will progress opportunities for South Australia’s manufacturing industry to maximise its involvement in the mining and energy sector in the State’s north.

Stage One will be completed early next year, while Stage Two is expected to be completed in mid to late 2012.

This work builds on existing State Government initiatives to assist the Upper Spencer Gulf and Outback regions in maximising the benefits of the growing mining sector, including the Plan for Accelerating Exploration (PACE) program, the Resources and Energy Skills Alliance and the $4 million Enterprise Zone Fund for the Upper Spencer Gulf and Outback.

A consortium of KMPG and GHD has been engaged by the Department of Trade and Economic Development to undertake the heavy industry hub feasibility study.