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Leading Practice Mining Acts Review - Statutes Amendment Bill released

News release - Tom Koutsantonis

Resource industry leaders will attend a workshop today to develop the South Australian Government’s Magnetite Strategy, which will aim to secure $10 billion worth of committed investment in iron ore mining projects.

The Magnetite Strategy Workshop, which will be hosted this morning by the Department of State Development at the Adelaide Convention Centre, begins the process of identifying opportunities for growth in the sector as well as what needs to be done to maximise the economic benefits of the resource to the State.

Securing that investment within the next five years would represent a major step toward reaching the target of 50 million tonnes of iron ore exports a year by 2030.

The long-term Magnetite Strategy also seeks to establish South Australia as the foremost global source of quality magnetite product for steelmaking.

Background

South Australia’s magnetite is a naturally occurring high-grade iron oxide with low levels of impurities that greatly increases the efficiency of blast furnaces.

South Australia currently produces about 1.6 million tonnes a year of magnetite from the Middleback Ranges that is fed exclusively into the steelworks at Whyalla.

Extensive magnetite resources have been identified in the Eyre Peninsula and Braemar Province that could dramatically increase the volume of exports from South Australia.

The proposed Strategy seeks to identify initiatives that can bring forward these projects and maximise the economic benefits of the State’s vast magnetite deposits.

Key to the success of the Strategy is positioning South Australia in the global marketplace as a secure and trusted supplier of quality magnetite product.

Quotes attributable to Minister for Mineral Resources and Energy Tom Koutsantonis

South Australia is blessed with vast magnetite deposits and the aim of this strategy is to leverage that natural endowment and transform it into investment, jobs and exports.

If we can capitalise on these deposits and increase the amount of iron ore we export there will also be significant opportunities for growth and jobs in the supply chain around this industry.

We can’t drag our feet – South Australia needs to plan now so we can capitalise quickly when the inevitable upswing in the commodities cycle happens.

South Australia is already recognised as a world-class exporter of copper and we want to see the state also gain a reputation as a source of high-quality magnetite.

This strategy will help grow the mineral resources sector and provide jobs and growth in South Australia’s regional and remote communities.