Slowing the PACE
The South Australian Chamber of Mines and Energy (SACOME) is disappointed that funding for PACE Minerals and a subsequent round of PACE Gas has been overlooked in the 2018-19 State Budget.
This is the first time since its inception in 2004 that PACE has not been funded by the State Government.
The PACE Minerals program has been a cornerstone of South Australia’s ability to attract investment in mineral exploration. It is a proven economic multiplier, having contributed to an increase in state mining revenue of $2.4 billion over the life of the initiative.
This decline in funding comes at a time where other States are investing in programs similar to PACE as they have seen its success in South Australia and recognise its value as an investment attraction tool.
PACE Minerals funding enabled the discovery of the Carrapateena copper-gold body in the Gawler Craton, one of the largest copper reserves in Australia and the world. This discovery has ultimately resulted in a $916m investment by OZ Minerals, demonstrating the critical importance of mineral exploration in providing a pipeline of future mineral resources projects.
SACOME CEO, Rebecca Knol said: “The Plan for Accelerating Exploration (PACE) funding is needed to ensure mining has a bright future in South Australia. Explorers in this state face significant geological challenges – deep cover - and yet research indicates that generational deposits such as Olympic Dam are unlikely to exist in isolation.
“The resources sector called for PACE Minerals funding both at the State election and in its Pre-Budget submission, with neither party willing to commit to this proven investment attraction program. SACOME is concerned that South Australia will now lose out to States who are willing to make the investment in minerals exploration.”
Gas generation comprises more than half of all electricity generation in South Australia, with this generation relying upon a secure, economic supply. A PACE Gas grant assisted Beach Energy to drill Haselgrove 3 earlier this year producing a new and significant gas discovery for the State.
Gas extracted through the grant scheme was offered to South Australian electricity generators first with the aim of improving supply and putting downward pressure on power prices.
PACE Gas funding assists in alleviating these issues by accelerating the rate at which known resources can be brought to market.
The ACCC’s June 2018 Retail Electricity Pricing Inquiry Final Report noted that gas prices have doubled or tripled in recent years, with every $1/GJ rise in gas prices equating to an increase in the wholesale price of electricity by up to $11/MWh.
Further, the ACCC states in the Report that “encouraging increased supply of competitively priced gas is crucial to moderating electricity prices”.
SACOME CEO, Rebecca Knol said: “Gas prices have doubled or tripled in recent years equating to an increase in the wholesale prices of electricity. South Australian’s need relief from escalating and debilitated power prices.
“It is disappointing that the Marshall government have opted not to fund an initiative that will improve gas supply and aid in reducing electricity costs in this State.”
Media contact:
Rebecca Knol, CEO SACOME, 0409 012 007
The South Australian Chamber of Mines and Energy (SACOME) is disappointed that funding for PACE Minerals and a subsequent round of PACE Gas has been overlooked in the 2018-19 State Budget.
This is the first time since its inception in 2004 that PACE has not been funded by the State Government.
The PACE Minerals program has been a cornerstone of South Australia’s ability to attract investment in mineral exploration. It is a proven economic multiplier, having contributed to an increase in state mining revenue of $2.4 billion over the life of the initiative.
This decline in funding comes at a time where other States are investing in programs similar to PACE as they have seen its success in South Australia and recognise its value as an investment attraction tool.
PACE Minerals funding enabled the discovery of the Carrapateena copper-gold body in the Gawler Craton, one of the largest copper reserves in Australia and the world. This discovery has ultimately resulted in a $916m investment by OZ Minerals, demonstrating the critical importance of mineral exploration in providing a pipeline of future mineral resources projects.
SACOME CEO, Rebecca Knol said: “The Plan for Accelerating Exploration (PACE) funding is needed to ensure mining has a bright future in South Australia. Explorers in this state face significant geological challenges – deep cover - and yet research indicates that generational deposits such as Olympic Dam are unlikely to exist in isolation.
“The resources sector called for PACE Minerals funding both at the State election and in its Pre-Budget submission, with neither party willing to commit to this proven investment attraction program. SACOME is concerned that South Australia will now lose out to States who are willing to make the investment in minerals exploration.”
Gas generation comprises more than half of all electricity generation in South Australia, with this generation relying upon a secure, economic supply. A PACE Gas grant assisted Beach Energy to drill Haselgrove 3 earlier this year producing a new and significant gas discovery for the State.
Gas extracted through the grant scheme was offered to South Australian electricity generators first with the aim of improving supply and putting downward pressure on power prices.
PACE Gas funding assists in alleviating these issues by accelerating the rate at which known resources can be brought to market.
The ACCC’s June 2018 Retail Electricity Pricing Inquiry Final Report noted that gas prices have doubled or tripled in recent years, with every $1/GJ rise in gas prices equating to an increase in the wholesale price of electricity by up to $11/MWh.
Further, the ACCC states in the Report that “encouraging increased supply of competitively priced gas is crucial to moderating electricity prices”.
SACOME CEO, Rebecca Knol said: “Gas prices have doubled or tripled in recent years equating to an increase in the wholesale prices of electricity. South Australian’s need relief from escalating and debilitated power prices.
“It is disappointing that the Marshall government have opted not to fund an initiative that will improve gas supply and aid in reducing electricity costs in this State.”
Media contact:
Rebecca Knol, CEO SACOME, 0409 012 007