Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
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The South Australian Chamber of Mines and Energy (SACOME) says the environmental approval announced October 10 for BHP Billiton’s Olympic Dam expansion project is “fantastic news and heralds the coming of our State’s long awaited mining boom. The project will bring huge economical benefits to South Australia, regional communities, and the nation as a whole.” A massive open-pit mine is to be developed to operate, for some time at least, alongside the underground mine, which is a world leader in uranium and copper.Jason Kuchel, SACOME Chief Executive said “In addition to the huge income stream brought to our State and the nation through taxes and royalties once the expansion is operational – together with the creation of thousands of jobs – the indirect benefits created will be phenomenal.”
Although actual production from the mine is not anticipated until 2016, benefits to the State will be seen much earlier with approximately 6,000 jobs to be created during the construction phase, and 4,000 ongoing once operational.
Kuchel said “The indirect economic benefits of the massive project include thousands of jobs in the service sector, expansion of infrastructure and numerous flow-on developments within communities”.
“We commend the collaborative work of the State and Federal Governments in addressing this proposal in such a timely manner, with the priority a project of this significance deserves.”
“The 150 conditions imposed on the project by the State Government will ensure any environmental issues are thoroughly addressed.”
“We also commend BHP Billiton for the thoroughness of the EIS and its strong attention to corporate social responsibility, which has assisted in the timely Government approval of the project, subject to final negotiations. The efficient handling of the expansion project approvals by the State Government in conjunction with the Northern Territory and Federal Governments, reflects very well on our State as a premier global destination for exploration, mining and mineral processing.”
