The South Australian Chamber of Mines and Energy (SACOME) says the announcement by BHP Billiton to postpone the open-pit expansion of Olympic Dam should only be seen as a prudent move to ensure the project proceeds in a way which is financially sustainable for the long term. Jason Kuchel, Chief Executive of SACOME said “The local BHP Billiton team will be working hard to find more economical alternatives to access the huge resource they have here in South Australia.” He said the Olympic Dam resource remains a tier one asset for BHP Billiton, and the demand for copper is expected to remain strong for decades to come. “BHP Billiton remains highly committed to South Australia both through the current mine operations and the need to expand this critically important asset in BHP Billiton’s inventory.”Kuchel said whilst the announcement will come as a disappointment to many, it does not spell adversity for the State’s mining and energy sector. “Olympic Dam will continue to contribute significantly to the State, and South Australia’s many other mining and energy projects currently underway and in the pipeline will continue to shape our growing resources sector,” he said.

Kuchel said although the Olympic Dam expansion had been a focus of state and national attention in recent years, South Australia’s mining and energy sector had diversified dramatically over the past decade and the State currently boasts 20 major mines, with many more projects in the pipeline.

Last year minerals were South Australia’s biggest single export group, representing over a third of exports at over A$4 billion. This figure is forecast to grow dramatically out to 2020, irrespective of any additional output from Olympic Dam.

“South Australia has a lot on the go with several new mining regions, exciting oil and gas developments, and a multitude of small and mid-tier miners who collectively could bring just as much, if not more, benefit to the State than the expansion of Olympic Dam,” Kuchel said. He said BHP’s decision was reflective of the rising costs of mining in Australia and an indication that the Federal government needs to take urgent action to ensure the continued growth of the sector for the benefit of all Australians.

“The announcement sends a very clear message to the federal government – that the mining industry cannot be taken for granted and treated as a cash cow, but rather we need pro-active policies to ensure the long term viability of an economically important industry to this State and the nation.”

Kuchel said the decision also cements calls by SACOME for the State Government to address the sector’s urgent infrastructure issues. “To ensure that the smaller miners can get their product to market, it is critical that the State Government accelerate their efforts to address our infrastructure constraints. Infrastructure should be the number one priority.”