Economic Prospects

Whyalla has enjoyed an economic boom over the past five years. The success of OneSteel’s ore exports and the South Australian minerals exploration boom have been major contributing factors. Both have provided significant work to Whyalla's engineering services industries in metal fabrication, machining, electrical, belting, instrumentation, scaffolding, transport, logistics and others.

Over the period of increased activity related to OneSteel and other mining and resource processing activities, Whyalla has registered five consecutive years of population growth, reversing a 27 year downward trend. It has also experienced strong development activity in the range of $50 million per annum compared with $10-$15 million per annum prior to the boom.

Mining prospects:
There are currently 11 operating mines in South Australia, which the State Government is confident will increase to 40 within the next several years. One of those proposed mines is the giant Olympic Dam Expansion Project, which, when complete, will be the largest mine in the world. Predicted to cost $17-23 billion, the outlay is more than 10 times the original capital expenditure incurred in development of the current mine.

In addition to Olympic Dam, there are a number of other mining activities in the general region and a number of other potential developments all of which will provide work for Whyalla companies.

Mining Operations:
•    OneSteel has commenced a major iron ore exporting activity from Whyalla involving the loading of cape sized vessels using a trans-shipping facility. This expanded activity and the conversion of the Steelworks to Magnetite feed has resulted in a significant increase in the OneSteel permanent workforce in Whyalla of 400 people. Ore export operations are assured with long term contracts signed with Chinese firms. The conversion of Steelworks to magnetite feed has created significant spinoffs for local contractors including a new transport operation at the Whyalla Industrial Estate.

•    The Prominent Hill mine involved capital expenditure of $1.15 billion. Located 130 km from Coober Pedy in the State's North, large dump trucks used in their mining operation are assembled by Cavpower at site within the Whyalla Industrial Estate. This created local employment and a new industrial activity capable of servicing other mining operations in the region. Production is now underway at this mine. Cavpower has committed to expand its industrial site and is undertaking vehicle service and assembly at its Whyalla site.

•    Iluka mineral sands mine located west of Ceduna – Link engineering undertook refurbishment of the mineral processing plant at the Whyalla Industrial Estate. This was a large assembly project involving many months work. Further development at  Iluka may have continued spinoffs for Whyalla.

•    Ausmelt recommissioned their existing smelter and expanded their land holding to include a new dam for holding tailings at the Whyalla Industrial Estate, generating up to 40 local jobs. Operation of this facility has discontinued but a new company, Ototec, is has now aquired Ausment and it looking at options for use of the Whyalla plant.

Engineering and associated services:
•    The Whyalla Industrial Estate is South Australia's largest industrial subdivision. It comprises a 150 hectare site on the northern boundary of the City of Whyalla. Companies including Cavpower, Ewings Contractors, Link Engineering, Pacific Marine, Max Cranes, Ausmelt, CNC Engineering, Anglo Coal and CI Ceramics have  capitalised on the huge opportunities generated by the unprecedented expansion to mining, major infrastructure development, resource processing, defence and green industries in the region.