Mining hands-off sends wrong investment signal
The refusal of a bid to reactivate a Hills gold mine has wider implications for future projects in South Australia, argues Warren Pearce.
On the back of a record high $7.1 billion in mineral commodity sales in 2020-21, generating over $237 million in royalties for the state, South Australia’s minerals sector had soared to new heights.
With a new Government and a strong commitment to a decarbonisation agenda that requires greater mineral exploration and mining, industry and government were primed to work together to seize new, unprecedented opportunities for the state.
That likelihood has now been seriously put at risk. Last Thursday’s refusal of Terramin’s ‘Bird in Hand Gold Project’ mining lease application has dealt a serious blow to the progress of the state’s minerals sector. This refusal will have major implications for the entire South Australian resources sector – far beyond just mining and exploration.
Despite meeting all statutory obligations required under the state’s mining laws to receive approval, the application was rejected for matters that can best be perceived as having political undertones.
The history of the mine is one that is familiar to all South Australians. The tensions in Parliament, the numerous rounds of expert ‘peer review’ and extensive five-year approval process for what initially set out to be a five-year mine, with strong potential to extend. Through it all, a committed team at Terramin worked with government, the community and stakeholders to find a balanced way forward.
The news of this rejection is particularly disappointing following the release of a proactive policy document to streamline and support best-practice stakeholder engagement.
The State Government consistently claims it wants mineral exploration, and it wants mining. We’ve heard countless times that we need more mining. But ultimately, actions speak louder than words.
In order to attract investment to a state for the critical minerals, hydrogen and renewable projects the state is seeking, investors will rightfully be asking: is it a good bet to invest in a state that can’t approve a modest gold mine after extensive assessment?
There has been a widely held view that South Australia isn’t serious about developing new mining projects. This decision reinforces that view, and is a major blow to investors, project developers and communities across South Australia.
It appears the government thinks that this decision won’t impact future investment in hydrogen, renewable energy or critical minerals projects.
Companies, investors, banks, and investment funds aren’t just looking at individual projects – they’re looking at the overall investment profile of the place they are investing in. These future investments are now less likely to be in South Australia.
Stay informed, daily
Blocking the most advanced mining project in the state will raise red flags to investors. This will impact the development of all projects, which unnecessarily risks jobs, skills, and benefits for local communities.
When a company has fully met and complied with all government processes and regulatory requirements, they deserve to be supported.
In an internationally competitive market, attracting investment into South Australia’s minerals sector, and all major developments, has just become substantially harder.
Warren Pearce is Chief Executive Officer, Association of Mining and Exploration Companies
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
