South Australian Department for State Development , Ted Tyne, Executive Director. Investor presentation at 2015 Broken Hill Resources Investment symposium.

1. www.statedevelopment.sa.gov.au
The State of SouthAustralia
open for mineral business
and working to grow our minerals value chain
DrTedTyne Executive Director, Mineral Resources
South Australian Department of State Development
Resources Investment Symposium
25 – 27 May, 2015, Broken Hill

2. The State of SouthAustralia – industries and markets

3. The State of SouthAustralia – industries and markets

4. The State of SouthAustralia – industries and markets

5. The State of SouthAustralia –
the importance of China, India and South EastAsia

6. The State of SouthAustralia –
the importance of China, India and South EastAsia
and building long term partnerships

7. The State of SouthAustralia –
growing our trade, export and investment opportunities with
China and SouthAustralia’s sister province Shandong
TheHonJayWeatherill
PremierofSouthAustralia
leading SouthAustralia’s
ChinaTrade&Investment
Mission,
May2015
Representativesfrommorethan200
companiesacrossindustrysectorsare
joiningthelargesteverSouthAustralian
ChinaTradeMission inMay2015

8. Delivering Outcomes for Economic Priority No.1
8Department of State Development
Five Point Plan to unlock the full potential of
South Australia’s resources, energy and
renewable assets.
1. Plan for Accelerated Exploration PACE
2. Implementing recommendations of the Oil and
Gas Roundtable
3. South Australia Copper Strategy
4. Low Carbon Investment Plan
5. South Australia Iron Ore Strategy

9. SA’s Share ofAustralia’s Key Mineral Resources
9
68%
COPPER

10. Minerals and Petroleum Production
2013-­‐14
-­‐
$7.5
billion
($5.6billion
–
Minerals
and
$1.9billion
–
Petroleum)
RECORD
PRODUCTION

11. 11Department of State Development
• Petroleum
($510.7m)
and
Minerals
($106.7m)
$617.4
million
EXPLORATION
EXPENDITURE
2014
• ~$40
billion
of
potenAal
capital
for
Minerals
and
Energy
projects
in
the
Major
Developments
Directory
$1.8
billion
CAPITAL
EXPENDITURE
2013-­‐14
• Minerals
($5.6
b)
and
Petroleum
($1.9
b)
$7.5
billion
RESOURCES
PRODUCTION
2013-­‐14
• Minerals
($4.3
b)
and
Petroleum
($0.2
b)
• 39%
of
South
Australia’s
total
exports
($11.7
b)
$4.5
billion
EXPORTS
12mths
to
January
2015
• Minerals
($157.4
m)
and
Petroleum
($133.9
m)
$291.3
million
ROYALTIES
2013-­‐14
• Up
from
6,641
ten
years
ago
11,908
people
EMPLOYED
February
2015
SouthAustralian Resources Industry Scorecard
RECORD
HIGH
RECORD
HIGH

12. Mineral Exploration Highlights
2014
12
• Havilah Resources – Crozier Dam Cu prospect (Jan 2014)
• Ironclad Mining – Hercules East Prospect - Mn (Jan 2014)
• Musgrave Minerals – Menninnie Dam Pb–Zn discovery , Frakes Ag prospect (Feb 2014)
• Adelaide Resources – Moonta Cu-Au Project, Alford West deposit (April, July 2014)
• Marmota Energy – West Melton Cu Project, Champion discovery (April 2014)
• Trafford Resources – Wilcherry Hill , Zealous Tin prospect ( April 2014)
• Minotaur Exploration – Mingary Au Project (May 2014)
• OZ Minerals – Khamsin IOCG deposit- Maiden Resource 202Mt at 0.6% Cu, 0.1g/t Au, 1.7g/t Ag
and 86ppm U, for 1.1Mt contained Cu, 900,000oz Au and 11Moz Ag (May 2014)
• Centrex Metals - Kimba Gap Maiden Resource, 487Mt ave. head grade 24.7% Fe with DTR
18.5% (July 2014)
• Archer Exploration –Campoona/Wilclo South, Australia’s largest graphite resource (Aug 2014)
• Kalyan Resources /Orogenic Exploration Flinders Island micro diamond discovery (Oct 2014)
• Havilah / MMG Exploration – Birsksgate prospect, new copper discovery (Oct 2014)
• Investigator Resources - Paris Ag deposit, continuing significant results after Maiden Resource
last year, 5.9Mt 110g/t Ag and 0.6%Pb – for 20Moz Ag and 38kt Pb (Oct 2014)

13. Major Mining Developments
2014
• Quasar Resources/Alliance Resource – Four Mile Uranium Mine opened (June
2014)
• Havilah Resources – Portia Gold Mine Approved (October 2014)
• Rex Minerals – Hillside Cu-Au Project Mineral Lease Approval (September 2014)
• Iron Road – Central Eyre Iron Project DFS released (February 2014)
• Oz Minerals – Carrapateena Cu-Au deposit PFS released (August 2014)
• BHP-Billiton – Olympic Dam Heap Leach Trial Approval (September 2014)
• Hillgrove Resources – Kanmantoo Cu mine additional Mining Lease and Revised
PEPR (July 2014)

14. Mineral Industry Highlights
2015
Arrium Mining - Iron Knob railing first ore
since its closure in 1999.
Iron Road - Central Eyre Iron project with
an additional 819 Mt (22% resource increase)
now Australia’s largest magnetite deposit.
Havilah Resources - Portia Gold mine
under construction.
Valence Industries - Uley Graphite Mine
first shipment of graphite dispatched to port.
Lincoln Minerals - Kookaburra Gully
Graphite Project mining lease proposal
lodged.
Archer Exploration - Eyre Peninsula
graphite project mining lease proposal to be
lodged.
Photo: Courtesy Valence Industries - first shipment of graphite
flakes, March 2015
Adelaide Resources - Moonta copper
project latest exploration has delivered
more copper.

15. SouthAustralian Iron Ore Resources
15
Photo
courtesy
Arrium
Mining

16. SouthAustralian Uranium Resources
16
Beverley
Airstrip

17. SouthAustralian Copper Resources
17
Photo
courtesy
BHPB
Olympic
Dam

18. The State of SouthAustralia –ACopper Strategy
68%
25%
400+
of Australia’s
economic
demonstrated
copper resource
of Australia’s
mined copper
production
copper
exploration
licences

19. WhyACopper Strategy?
Copper will remain supply
constrained and a deficit is
expected at the end of this
decade across world
South Australia well placed
to supply this deficit
19
0.85
0.90
0.95
1.00
1.05
1.10
(8)
(4)
0
4
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Cu
grade
(RHS)
Surplus/deficit
(LHS)
Copper
grade1
decline
will
lead
to
a
market
in
deficit
(Mt)
(%
Cu
in
the
mill)
Source:
Wood
Mackenzie.via
BHPB
1.
ProducAon
from
current
operaAng
mines
and
commi_ed
new
projects

21. What is SouthAustralia's Copper Strategy?
• Joint South Australian industry and
government approach
• Targeting a three times increase in
export of copper over 15 years from
300,000 tonnes pa
• 1 million tonnes per year by 2030
• South Australia aims to generate
significant mining growth, economic
value and jobs across the resources
value chainDepartment of State Development

22. Copper Summit May 2015
22Department of State Development
• Led by Minister for Mineral Resources
and Energy
• Challenges, opportunities and actions
identified
• 108 attendees – 90 pages of ideas
• BHPB – OZ Minerals – Hillgrove
• Universities and Services industries

23. Copper Summit – Key themes
• Get South Australian projects to head of
international mine development queue
• Bring forward discovery of big deposits
By:
23Department of State Development
COSTS EXPLORATION INNOVATION LINKS

24. Copper Summit–Achieving 1 Mt by 2030
24

25. Copper Summit–Achieving 1 million tonnes
25Department of State Development
Chile
Peru
USA
51
Mt
Cu-­‐eq
A
Discovery
Gap
to
be
filled
Source:
MinEx
ConsulAng
March
2012
South
Australia

26. • Improve copper
concentrates &
production
• Involves local
universities
• Findings to benefit all
SA copper producers
OZ Minerals Research Partnership

27. Copper Summit – EarlyAction Ideas
• Review cost drivers
• Mineral processing research
to remove impurities
• Access/discovery -
engagement with
landholders/Aboriginal
Communities
• Linking existing suppliers
into supply chains and
grow their capability
• Infrastructure development
in Gawler Craton
27Department of State Development

28. SouthAustralian Government initiatives
to support our resources sector
• Copper Strategy 2015 & OZ Minerals Research Partnership
• PACE Frontiers – new regional surveys and PACE collaborative drilling
• PACE Frontiers - Mineral Systems Drilling Program
• Strategic Land Access Initiatives
• Resources Infrastructure Taskforce
• International Partnerships & Collaborative R&D Projects
• New State Drill Core Reference Library
• Online Geoscientific Data Delivery – SARIG
• Mining and Petroleum Centre of Excellence
• Mining Industry Participation Office
• Case Management Coordination – Major Mine Approvals
• Streamlined Mining Assessments & Approvals including EPBC
• Unconventional Petroleum Roadmap
• Nuclear Fuel Cycle Royal Commission
• Nyrstar Port Pirie Smelter Transformation

29. SouthAustralia’s Plan forAccelerating Exploration
Government-led
precompetitive
geoscientific initiative
• Outward looking
• Driven by collaboration
and partnership PRIORITY
1:
Unlocking
the
full
potenKal
of
South
Australia’s
resources,
energy
and
renewable
assets

30. Bringing forward new discoveries
30
PACE success factors
Ø Highly prospective state.
Ø Fortunate timing coinciding with the onset of the global
exploration boom.
Ø Strong support from Minister Koutsantonis and
government.
Ø International promotion.
Ø Extensive, easy to understand online data via SARIG.
Ø Exploration and development approvals in South
Australia having a one-stop shop approach.
Ø Precompetitive geoscience programs focused on
information relevant to explorers.

31. PACE Discovery Drilling 2015
• 27 successful projects
• $2 million of collaborative
drilling grants
• $4.9 million estimated
additional company
expenditure
• ~$6.9 million est. total
program value

32. PACE Mineral Systems Drill Program 2015
Joint project - designed by the Geological
Survey of SA in partnership with DET CRC
and exploration industry
Unique approach
• Field test DET CRC technology – real time drilling
results and assays
• Integrated mineral systems mapping approach
• Specialised application of prospectivity indices to
recognise footprints
• Explorers gain instant access to results and
analysis from field drilling
• More drilling metres for funds expended
• Drill-rig mobilisation
• Site clearances undertaken by the Department

33. Supporting Access to Land

34. Department of State Development
LandAccess Initiatives
Land
Access
EPBC
Act
AccreditaAon
State/
Commonwealth
MLUF
State
Planning Reform
State
Native Title ILUAs
DSD-AGD
Admin Agreement
DSD-DEWNR
RAMP
DSD-DPTI
EPLUS
DSD-PIRSA

35. Resources Infrastructure Taskforce
Department of State Development
Industry Consultation
• Key Stakeholders for infrastructure requirements
Develop intervention / assistance / support
options
Regional Infrastructure
• Develop multi user access models
• Confirm infrastructure demands
• Develop commercial regional infrastructure solutions
for key resources projects.

36. Mining
Clusters
with
Highest
Demand
36

37. The State of SouthAustralia –
international mineral resource partnerships

38. New State Drill Core
Reference Library

39. SARIG delivery
of Open Data
39Department of State Development
“leading example of international
best practice of open data delivery”
2015 release: Open data licensing of
precompetitive geoscientific digital data
delivered by SARIG:
• Spatial Map Layers & Web Services
• Databases (SA Geodata &
geophysical data)
Open Data Licensing
South Australian Government
precompetitive geoscientific data
Economic benefits
Innovated software solutions
Transparency

40. Nuclear Fuel Cycle
Royal Commission
• Inquire into the feasibility and viability of
South Australia’s involvement in all stages
of the nuclear fuel cycle, including any
associated risks and opportunities.
• Issues Papers on each stream including
exploration, extraction and milling to be
released soon.
• Invitation for written submissions will
coincide with release of Issues Papers.
• Interested parties will have about three
months to prepare a written submission.
• More details on the Commission process to
be released through its website in near
future.
www.nuclearrc.sa.gov.au

41. 41
Port Pirie – Smelter 1903
Department of State Development

42. 42
Port Pirie – Blast Furnace 1915
Department of State Development

43. 43
Port Pirie – Smelter 1932
Department of State Development

44. 44
Port Pirie – SA Govt. Uranium Plant 1950
Department of State Development

45. Nyrstar Port Pirie
Smelter Transformation
45
• A$ 514m investment on budget,
on time for 2016 commissioning
• Additional A$ 85m Oxygen Plant
investment – Air Liquide
• Site, construction works well
advanced
• State’s indemnity issued later this
year

46. 46
Port Pirie – Nystar Smelter Transformation 2015
Department of State Development
• Outotec’s Ausmelt TSL (top
submerged lance) furnace bath
smelting technology
• New 1000t/d sulphuric acid plant
• New Oxygen Plant – BOO
arrangement with Air Liquide
investing $85m

47. 47
Port Pirie – Nystar Smelter Transformation
2015
Department of State Development
• A$ 514m investment
• on budget
• on time - for 2016 commissioning

48. South Australia – open for business
and working to grow our minerals value chain
• Copper Strategy 2015 & OZ Minerals Research Partnership
• PACE Frontiers – new regional surveys and PACE collaborative drilling
• PACE Frontiers - Mineral Systems Drilling Program
• Strategic Land Access Initiatives
• Resources Infrastructure Taskforce
• International Partnerships & Collaborative R&D Projects
• New State Drill Core Reference Library
• Online Geoscientific Data Delivery – SARIG
• Mining and Petroleum Centre of Excellence
• Mining Industry Participation Office
• Case Management Coordination – Major Mine Approvals
• Streamlined Mining Assessments & Approvals including EPBC
• Unconventional Petroleum Roadmap
• Nuclear Fuel Cycle Royal Commission
• Nyrstar Port Pirie Smelter Transformation

49. 49
Broken Hill – Birthplace of our Industrial Nation
Department of State Development
BrokenHill–ProprietyMine1888
move
SA
Border
to
this
side

50. www.statedevelopment.sa.gov.au
DrTedTyne
Executive Director, Mineral Resources
South Australian Department of State Development
South Australia – open for business
and working to grow our minerals value chain
Resources Investment Symposium 25-27 May, Broken Hill

51. Contact
www.statedevelopment.sa.gov.au
Department of State Development
Level 7, 101 Grenfell Street
Adelaide, South Australia 5000
GPO Box 320
Adelaide, South Australia 5001
T: +61 8 8226 3821