SACOME Response to 2020/21 State Budget
The South Australian Chamber of Mines and Energy (SACOME) acknowledges the impact of COVID-19 on the State’s economy and the Marshall Government’s support for adversely impacted sectors in the 2020/21 State Budget.
The South Australian resources sector underpinned the State economy during the disruption of the coronavirus pandemic, providing State income, job stability and leadership. The sector is well positioned to play a key role in the State’s COVID-19 economic recovery.
SACOME submitted 14 initiatives that address both the immediate need to increase employment and stimulate economic activity; and to leverage longer-term economic development goals for the resources sector and the State.
SACOME welcomes the State and Commonwealth Government’s $135 million commitment towards the sealing of the Strzelecki Track, a vital supply link for South Australia’s major oil and gas producers operating in the Cooper Basin. SACOME also welcomes clarification of the total project cost provided in this Budget ($180 million).
SACOME is encouraged by the State Government’s additional $220 million investment in the Economic and Business Growth Fund. SACOME calls on this increased funding to be directed towards the continuation and expansion of the Accelerated Development Incentive, the establishment of a Gas Acceleration Program and the development of a Resources Sector Economic Heatmap to prioritise infrastructure investment and to support SACOME’s ‘infrastructure corridors’ concept.
SACOME is delighted that the State Government has adopted its infrastructure corridors concept and provided $5.6 million in funding to the Department for Environment and Water (DEW) to support the practical development of this policy. SACOME looks forward to working closely with DEW assisting development of these corridors to accelerate South Australian resources sector projects.
SACOME also notes the State Government’s $100 million allocation to road safety works, including road maintenance on metropolitan roads that will unlock a further $168 million of funding from the Commonwealth Government.
SACOME reiterates its call for Commonwealth funding to be directed towards regional road maintenance to safeguard the resources sector’s $5.3 billion of exports and improve productivity and safety outcomes for all industrial sectors that use these economically critical freight routes.
Chief Executive Rebecca Knol said: “The South Australian resources sector is critical to the Marshall Government’s Growth State goal of achieving a sustained 3% annual economic growth rate for South Australia. SACOME’s 2020/21 Budget calls focused on strategic investments the South Australian Government could make to progress this outcome.”
“SACOME welcomes funding announcements that support the South Australian resources sector, notably additional funding for sealing of the Strzelecki Track, and for development of SACOME’s infrastructure corridors concept as a vehicle to accelerate South Australian resources projects.”
“SACOME reiterates its call for additional road maintenance funding, particularly for those regional and remote roads carrying a range of valuable commodities. Investment in this critically important economic infrastructure occur at greater levels than is presently the case.”
“The South Australian resources sector is the engine room of the South Australian economy employing 26,000 people directly and indirectly, delivering $6.4 billion in production, $5.3 billion in exports and $299 million in royalties to South Australians.”
“SACOME and its members remain committed to working collaboratively with South Australian Government to achieve economic prosperity for the Sate and its residents.”
Media contacts:
Rebecca Knol, CEO SACOME, 0409 012 007
About SACOME
The South Australian Chamber of Mines and Energy is the peak industry association representing companies with interests and connections to the South Australian resources and energy sector.
SACOME Budget Initiatives
Northern Water Supply Project
SACOME calls for ongoing commitment by the South Australian Government for business case development of the Northern Water Supply Project.
Resources Sector Economic Heatmap
SACOME calls for development of a South Australian Resources Sector Economic Heatmap.
Regional & Remote Road Maintenance
SACOME calls on the State Government to prioritise maintenance funding for regional and remote roads critical to the operation of South Australian minerals and petroleum projects.
SA Government Underwriting Facility
SACOME calls on the State Government to formalise a SA Government Underwriting Facility as a tool for facilitating development of South Australian resources projects.
Upgrade of Port Augusta to Whyalla Route – Single to Dual Carriageway
SACOME calls for funding to upgrade the Port Augusta to Whyalla route from single to dual carriageway.
Resources Infrastructure Corridors
SACOME calls on the State Government to establish “Resources Infrastructure Corridors” to create a regulatory structure that incentivises investment.
Statutory Corporation – Infrastructure Development
SACOME calls on the State Government to fund a business case into the establishment of a statutory corporation that develops enabling infrastructure that resources sector companies can access on a “take or pay” basis.
Maintenance & Expansion of the Accelerated Discovery Initiative
SACOME calls for ongoing funding of the Accelerated Discovery Initiative (ADI); and expansion of the ADI to encourage greater levels of exploration activity in South Australia.
Gas Acceleration Program
SACOME calls on the State Government to establish a Gas Acceleration Program to complement the Accelerated Discovery Initiative and to incentivise the responsible development of South Australian gas projects.
State-wide Land Access Framework
SACOME calls for development of updated State-wide Land Access Guidance to guide resources and infrastructure project development across the State.
Priority Funding for Voltage Management Technologies
SACOME calls on the State Government to urgently increase funding for implementation of storage and voltage management technologies to address under frequency load shedding requirements and intermittency in the South Australian electricity system.
Carbon Capture Storage Support
SACOME calls on the State Government to implement policies and incentives to support the development of commercial Carbon Capture Storage (CCS).
South Australian Nuclear Forum
SACOME calls on the State Government to fund a nuclear energy forum to progress discussions on opportunities arising from development of a South Australian nuclear industry.
Mining Rehabilitation Fund
SACOME calls for reform of environmental bond mechanisms through the newly established Mining Rehabilitation Fund to better balance mine rehabilitation with investment and project development outcomes
The South Australian resources sector underpinned the State economy during the disruption of the coronavirus pandemic, providing State income, job stability and leadership. The sector is well positioned to play a key role in the State’s COVID-19 economic recovery.
SACOME submitted 14 initiatives that address both the immediate need to increase employment and stimulate economic activity; and to leverage longer-term economic development goals for the resources sector and the State.
SACOME welcomes the State and Commonwealth Government’s $135 million commitment towards the sealing of the Strzelecki Track, a vital supply link for South Australia’s major oil and gas producers operating in the Cooper Basin. SACOME also welcomes clarification of the total project cost provided in this Budget ($180 million).
SACOME is encouraged by the State Government’s additional $220 million investment in the Economic and Business Growth Fund. SACOME calls on this increased funding to be directed towards the continuation and expansion of the Accelerated Development Incentive, the establishment of a Gas Acceleration Program and the development of a Resources Sector Economic Heatmap to prioritise infrastructure investment and to support SACOME’s ‘infrastructure corridors’ concept.
SACOME is delighted that the State Government has adopted its infrastructure corridors concept and provided $5.6 million in funding to the Department for Environment and Water (DEW) to support the practical development of this policy. SACOME looks forward to working closely with DEW assisting development of these corridors to accelerate South Australian resources sector projects.
SACOME also notes the State Government’s $100 million allocation to road safety works, including road maintenance on metropolitan roads that will unlock a further $168 million of funding from the Commonwealth Government.
SACOME reiterates its call for Commonwealth funding to be directed towards regional road maintenance to safeguard the resources sector’s $5.3 billion of exports and improve productivity and safety outcomes for all industrial sectors that use these economically critical freight routes.
Chief Executive Rebecca Knol said: “The South Australian resources sector is critical to the Marshall Government’s Growth State goal of achieving a sustained 3% annual economic growth rate for South Australia. SACOME’s 2020/21 Budget calls focused on strategic investments the South Australian Government could make to progress this outcome.”
“SACOME welcomes funding announcements that support the South Australian resources sector, notably additional funding for sealing of the Strzelecki Track, and for development of SACOME’s infrastructure corridors concept as a vehicle to accelerate South Australian resources projects.”
“SACOME reiterates its call for additional road maintenance funding, particularly for those regional and remote roads carrying a range of valuable commodities. Investment in this critically important economic infrastructure occur at greater levels than is presently the case.”
“The South Australian resources sector is the engine room of the South Australian economy employing 26,000 people directly and indirectly, delivering $6.4 billion in production, $5.3 billion in exports and $299 million in royalties to South Australians.”
“SACOME and its members remain committed to working collaboratively with South Australian Government to achieve economic prosperity for the Sate and its residents.”
Media contacts:
Rebecca Knol, CEO SACOME, 0409 012 007
About SACOME
The South Australian Chamber of Mines and Energy is the peak industry association representing companies with interests and connections to the South Australian resources and energy sector.
SACOME Budget Initiatives
Northern Water Supply Project
SACOME calls for ongoing commitment by the South Australian Government for business case development of the Northern Water Supply Project.
Resources Sector Economic Heatmap
SACOME calls for development of a South Australian Resources Sector Economic Heatmap.
Regional & Remote Road Maintenance
SACOME calls on the State Government to prioritise maintenance funding for regional and remote roads critical to the operation of South Australian minerals and petroleum projects.
SA Government Underwriting Facility
SACOME calls on the State Government to formalise a SA Government Underwriting Facility as a tool for facilitating development of South Australian resources projects.
Upgrade of Port Augusta to Whyalla Route – Single to Dual Carriageway
SACOME calls for funding to upgrade the Port Augusta to Whyalla route from single to dual carriageway.
Resources Infrastructure Corridors
SACOME calls on the State Government to establish “Resources Infrastructure Corridors” to create a regulatory structure that incentivises investment.
Statutory Corporation – Infrastructure Development
SACOME calls on the State Government to fund a business case into the establishment of a statutory corporation that develops enabling infrastructure that resources sector companies can access on a “take or pay” basis.
Maintenance & Expansion of the Accelerated Discovery Initiative
SACOME calls for ongoing funding of the Accelerated Discovery Initiative (ADI); and expansion of the ADI to encourage greater levels of exploration activity in South Australia.
Gas Acceleration Program
SACOME calls on the State Government to establish a Gas Acceleration Program to complement the Accelerated Discovery Initiative and to incentivise the responsible development of South Australian gas projects.
State-wide Land Access Framework
SACOME calls for development of updated State-wide Land Access Guidance to guide resources and infrastructure project development across the State.
Priority Funding for Voltage Management Technologies
SACOME calls on the State Government to urgently increase funding for implementation of storage and voltage management technologies to address under frequency load shedding requirements and intermittency in the South Australian electricity system.
Carbon Capture Storage Support
SACOME calls on the State Government to implement policies and incentives to support the development of commercial Carbon Capture Storage (CCS).
South Australian Nuclear Forum
SACOME calls on the State Government to fund a nuclear energy forum to progress discussions on opportunities arising from development of a South Australian nuclear industry.
Mining Rehabilitation Fund
SACOME calls for reform of environmental bond mechanisms through the newly established Mining Rehabilitation Fund to better balance mine rehabilitation with investment and project development outcomes