$10 billion revenue planned for South Australian resource sector
The state Government has vowed to create 5,000 new South Australian mining jobs by 2017. It has come up with this amazing prediction after announcing a resource production record of $7.5 billion in the last financial year.
Mineral Resources and Energy Minister Tom Koutsantonis said the new production record, which has increased by $1.3 billion on the previous financial year, is mainly due to iron ore and petroleum production increases, as well as a steady rise in copper production.
SA government to increase resource sector earnings to $10 billion in 2 years
Mr Koutsantonis said the SA Government has targets to increase the value of mineral and energy resources production to $10 billion each year by 2017. It is here where the additional jobs would be created.
“2000 jobs created for every $1 billion in revenue”
This means that for every 1 billion dollar increase in production there would be 2000 jobs created. It would be interesting to see where these assumptions come from and exactly what types of jobs would be created.
“stop them from leaving the state”
Plan to keep young South Australians working in the resource sector
South Australian mining jobs and the release of this statement is linked to the 2018 state election to hold the Government accountable . . . which is always a good thing. It’s thought the focus of the jobs creation strategy is to employ young South Australians to stop them from leaving the state.
“We want young South Australians to stay here, not go interstate or abroad to find work and the best way to do that is to have companies spending large amounts of capital here in South Australia because it’s cheaper to hire locals,” Mr Koutsantonis said.
“We’re training people up at TAFE, we’re training people up at universities to try and make sure they have access to all the skills they need.”
Mr Koutsantonis went on to say the SA Government was confident it could further increase production in the state and encourage more mining companies to be based in the state.
However, Mark Ogge from The Australia Institute said mining companies were overwhelmingly owned offshore and the government’s “huge figures” said nothing about who benefits.
“The oil and gas industry and the coal industry in Australia are both over 80 per cent foreign owned, meaning more than 80 per cent of the profits go overseas,” he said.
“So even though it’s counted as a gross state product, and you can claim it as part of this $7.5 billion, a lot of the money heads overseas and is never invested back into mining jobs.”
The jobs announcement forms part of Premier Jay Weatherill’s 10 economic priorities, which were announced in August which are:
The Premier’s 10-point plan
- Unlocking the full potential of SA’s resources, energy and renewable assets.
- Premium food and wine produced in our clean environment and exported to the world.
- A globally recognised leader in health research, ageing and related services and products.
- The Knowledge State – attracting a diverse student body and commercialising our research.
- South Australia – a growing destination choice for international and domestic travellers.
- Growth through innovation.
- South Australia- the best place to do business
- Adelaide, the heart of the vibrant state.
- Promoting SA’s international connections and engagement
- South Australia’s small businesses have access to capital and global markets.
When you read through the Premier’s plans for growth and development there are many grey areas, and noticeably quote generic, however we note the reference to developing the minerals resource in South Australia. Let’s go back and review these promises to the people of South Australia in 12 months time.
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At iMINCO, our team of researchers and editors have their finger on the mining and resource sector pulse and; whereas other news and media websites in the resource sector report on the negative side of mining life, our aim is to breathe confidence and optimism back into the industry.
South Australian mining jobs. Copyright 2014 – iMINCO