Hillgrove Resources and the State Government today announced a formal partnership to advance the aims of South Australia’s long-term, comprehensive Copper Strategy.
As part of the partnership and in recognition of South Australia’s low mining tax and cost environment, Hillgrove Resources plans to relocate its corporate headquarters to Adelaide from Sydney.
Hillgrove Resources is one of South Australia’s three copper-exporting companies and the second to commit to relocating their headquarters from the east coast to Adelaide.
Mineral Resources and Energy Minister Tom Koutsantonis said the partnership with Hillgrove Resources will be an important element in ensuring the success of the South Australian Copper Strategy.
“South Australia aims to triple its copper production by 2030, which should assist Australia to rise to third in the global rankings of copper-producing nations,” Mr Koutsantonis said.
“To achieve our ambitions for South Australia and the nation, the State Government needs to work more closely with resource companies and the partnership with Hillgrove Resources is the latest example of that necessary collaboration.
“By partnering with companies such as Hillgrove Resources, we can ensure South Australia is best placed to take advantage of our natural strengths when global copper demand picks up.
“The head office relocation sends a powerful message to other business leaders and investors and aligns with our Economic Priority goal of attracting three corporate headquarters to Adelaide.”
Hillgrove Resources chief executive Steven McClare said the company fully supports the aims of the South Australian Copper Strategy and its emphasis on boosting local production.
“Our major assets are located in the Adelaide Hills so it makes sense to partner with the South Australian Government on a strategy that supports copper at every stage from exploration to export,” Mr McClare said.
“South Australia also offers the added benefit of being a low mining-tax and low-cost jurisdiction and with a Government that is extremely pro-active in wanting to partner with resource companies to develop the State’s assets.
“Relocating our office and staff from Sydney will allow Hillgrove Resources to utilise high quality services at very competitive rates from local Adelaide firms such as information technology, auditors, accounting and legal services.”
As part of the partnership, yesterday’s 2015-16 Mid-Year Budget Review (MYBR) included a State Government grant of $850,000 for the construction of a pipeline and associated site works to replace drinking standard mains water with a supply of untreated water to the Kanmantoo mine.
The pipeline will help lower operating costs at the Adelaide Hills mine by reducing its reliance on potable SA Water for dust management and ensure the company can continue to deliver on its commitment to minimise the impact of dust on the Kanmantoo and Callington communities.
This agreement does not impact on Hillgrove Resources’ use of treated effluent sourced from the nearby District Council of Mount Barker.
The partnership will also enable the State Government to work closely with Hillgrove to optimise the company’s use of local workers and suppliers at the Kanmantoo mine and its corporate office, and further develop its community engagement program.
News release: Tuesday 8 December 2015
Treasurer Tom Koutsantonis
Minister for Finance
Minister for State Development
Minister for Mineral Resources and Energy
Minister for Small Business