South Australia Parliament approves BHP Billiton Olympic Dam expansion

BHP BILLITON's $30 billion Olympic Dam expansion has been given the green light from State Parliament after the Upper House approved its legislation.

After more than 20 hours of debate in the Upper House and about 12 hours in the House of Assembly, Parliament has ratified the Roxby Downs Indenture Act, unlocking BHP Billiton’s $1.2 billion for initial works on the project at Roxby Downs in the State’s north.

Concern had been raised that amendments proposed by Greens MLC Mark Parnell would delay the passage of the Bill until next year, despite the legislation having bipartisan support. The legislation will now return to the House of Assembly on Thursday for final approval.

Minister for Mineral Resources Tom Koutsantonis said the Bill’s passage was a momentous occasion for the State, which would benefit from what will become the world’s largest open-cut mine.

“This really is a game changer for our state; this is the moment future generations will look back on and say ‘that was the time South Australia took its rightful place amongst the giants of mining’,” he said.

“The world’s mining companies are now looking at South Australia as a major player in the resources market and we are well set to take full advantage of that attention.”

Greens MLC Mark Parnell expressed disappointment that his amendments had not been supported by the Government and the Opposition, after condemning the agreement as being too far in BHP’s favour.

“It is a bad deal, it enshrines a bad deal for the people of South Australia and for our environment,” he said.

“These are our minerals, they can only be dug up once, and we have the authority to determine how, when, by whom and for what return.

“Instead, the government has taken us down the path ... to allow South Australia to become the world’s quarry.

“BHP ... said jump, and all the Government could do was ask how high.”

Premier Jay Weatherill said the passage of the Indenture demonstrated the State’s mining industry was well and truly open for business.

“This gives BHP Billiton the certainty it needs to proceed with a project that is of a scope never seen before in Australia,” he said.

“This will transform the State’s economic future and underpin thousands of jobs for South Australians.”

The expansion is forecast to generate up to 6000 new jobs during the 11-year construction period before a further 4000 full time jobs are needed when the mine reaches full production.

A further 15,000 indirect jobs are expected to be created in flow-on industries and services needed to operate the mine.

The Greens voted against the Bill, allowing it to pass 19 votes to 2.

Political Reporter Sarah Martin From: AdelaideNow November 29, 2011 12:19pm