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Download the full report: Minerals ScoreCard 2009-10 (.pdf 2.37Mb) Presentation - Minerals ScoreCard 2009-2010 (.pdf 716.5kb)
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The Mineral value-chain ScoreCard, initiated in 2001, provides information regarding the performance of South Australia’s mineral industry across the exploration, investment, production, processing and export stages of wealth creation.
The ScoreCard measures give critical information on the three minerals strategic development targets (outlined in South Australia's Strategic Plan, 2007), as well as assisting in the development of programs designed to aid expansion of the mineral industry.
The South Australian Strategic Plan, 2007 set out the following targets for mineral exploration, production, processing (refinement) and exports:
ScoreCard measures in 2009–10 indicate a return to the favourable conditions for the minerals industry that existed before the Global Financial Crisis (GFC).
South Australia achieved record levels of mineral production (achieving T1.18 for the first time) despite the significant impact of major shaft failure at the state's largest producing mine, Olympic Dam.
Moderate increases were achieved in mine gate production and exports, while decreases were recorded for the second successive year in expenditure on mineral exploration and off-site mineral refining.
The minerals industry economic recovery continued to rebound throughout 2009–10, driven by high comomodity prices. Commodities with a significant positive impact on South Australia were copper, iron ore and gold. This was evident in increased mineral production and exports of these commodities.
| Summary of the key measures of the South Australian minerals industry for 2009–10 and 2008–09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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a Gross royalty figure, includes funds hypothecated for the Extractive Areas Rehabilitation Fund |
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Mineral tenement rent expenditure |
Increased marginally by $0.02m (0.3%) to $6.44m.
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Public targeted geo-information expenditure |
Government funded expenditure through the PACE initiative. In line with PACE budget allocations, the level of PACE expenditure in 2009–10 was $3.136m. |
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Private exploration expenditure |
Decreased by $52.8m (24%) to $167.9m, but has still exceeded the SASP target: T1.17 of $100m for the fifth successive year. Exploration was dominated by the search for copper and gold, uranium and iron ore. Other major commodities explored for throughout the state included heavy mineral sands, zinc, lead, silver, nickel, coal and diamonds. In addition in 2009–10 South Australia attracted:
More information on mineral exploration statistics is available from the Australian Bureau of Statistics (external site, opens in new window) |
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New capital expenditure (NCE) |
NCE decreased by $289m (38.7%) to $457m. This was expected as the significant spending at Prominent Hill ($1175m) was completed in the previous year (2008–09). New Capital Expenditure for the 2009–10 financial year has primarily been associated with construction of:
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Mine gate production |
Mine gate production values rose significantly by $409.7m (14.3%) to reach $3.283b in 2009–10. This resulted in the inaugural achievement of the SASP Mineral Production target of $3 billion by 2014. This overall increase in mineral production has occurred despite the significant decrease in production (Cu, Au, U, Ag) at Olympic Dam (BHP Billiton) as a result of shaft failure that led to around half the anticipated production for the year. Olympic Dam reported production in 2009–10 of 103 300 t Cu (cathode), 2 279 t U3O8, 65 494 oz Au (bullion), 500 000 oz Ag (bullion). This growth is largely due to higher sales values achieved for gold due to record high prices ($92m year on year increase) and increased value of copper, iron ore and gold due to the first full years production at Prominent Hill and increased production of hematite from the Middleback Ranges.
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Royalties payable |
This figure is for royalties payable on mine gate sales during the period 2009–10 but not received during this period. In addition gross royalties are quoted and include funds hypothecated for EARF. Mineral royalties payable decreased by $9.1m (10.8%) to $75.2m. The decrease is primarily due to the shaft failure at Olympic Dam resulting in lower royalties payable on reduced production. Royalty receipts received during the period as reported to treasury - totalled $68.3m. |
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Commodity Imports |
The estimated value of ore imported by Nyrstar for refinement at its Port Pirie smelter. The decrease of $88.1m (19.8%) to $357.6 m is related to the decrease in the estimated cost of the ore. This measure is calculated and subtracted from off-site refining in order to obtain a Net Off-site Refining measure. |
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Net Off-site Refining Value |
The estimated Net Off-site Refining Value decreased by $103m (10.6%) to $869.8 million. This was the result of a reduction in the amount of steel produced at OneSteel’s Whyalla Steelworks and lower volumes of lead and zinc produced at Nyrstar’s Port Pirie Smelter. Net off-site refining records the value of mineral refinement from the following sources: Nyrstar’s Port Pirie Smelter (Zn-Pb, Ag & Au), OneSteel’s Whyalla iron-ore smelting (does not include steel manufacturing), industrial minerals and construction materials. |
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Mineral Exports |
Mineral Exports rose by $80m (2.9%) to reach $2.825 billion in 2009–10. Minerals continue to comprise the single largest export category for the State, accounting for 35% of SA’s total merchandise export value. As such, mineral exports represent the single major contributor to achieving the SASP Target T1.14 of $25 billion in State exports by 2014. The majority of minerals exported are from minerals produced at the state's mines but a significant portion of exports also come from refined minerals produced at Port Pirie. Major commodities exported:
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Net Mineral Industry Value (NMIV) |
NMIV increased by $386.1m (increase of 10%) to $4.232 billion despite the substantial decrease in production at Olympic Dam and the decrease in net off-site refining. The increase was led by the increased value of mineral production (higher values for gold and copper) and the, increased volume and value for iron ore. In addition the first full year production of copper and gold from Prominent Hill significantly increased the State’s NMIV. NMIV is the sum of ‘Mine gate production’ and ‘Net off-site refining’ values and provides a summary measure of the minerals industry performance. |
In 2010-11 ‘lag’ value-chain areas of production and export will be positively influenced by increased volumes from existing mines and inaugural production from new mines, and sustained high commodity prices for copper, gold, iron ore, uranium and heavy mineral sands:
Increased mineral exports are anticipated to follow the expected increases in production resulting in increased iron ore, copper, gold, uranium and silver exports.
Limited growth is expected in the ‘lead’ value-chain measure - capital expenditure.
The industry remains on-track to achieving and maintaining the current SASP Targets, with continued steady results expected in exploration, production, processing and exports:
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Table 2 Minerals ScoreCard Summary 2001–2009 (all figures quoted are $million) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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*NOTE: This is not royalty receipts as reported to Treasury. Gross royalty figure associated with minerals produced during the period, includes funds hypothecated for the Extractive Areas Rehabilitation Fund |
