Aug 2, 2012

Federal Labor invests in South Australia’s resources boom

Funds from Federal Labor’s new mining tax will be used to do the long term infrastructure planning necessary to unlock the vast natural wealth which lies beneath South Australia.

With minerals and energy projects worth up to $59 billion already on the books and expected to be delivered over the next decade, it is vital that we get the planning right from the outset.  Put simply, to take full advantage of rising commodity prices and growing global demand South Australia needs modern, well-planned water, energy and transport infrastructure.

Achieving this will require a genuine partnership between governments and industry.

That’s why we will provide $1.5 million to develop plans covering three distinct geographical regions of the State: the Eyre Peninsula, Yorke Peninsula-Braemar and the Upper North – see attached map.

Recommended by both the Resources and Energy Sector Infrastructure Council (RESIC) and Infrastructure Australia, this planning work will take stock of each region’s existing infrastructure capacity and constraints as well as identify solutions to prevent or alleviate future bottlenecks.

It’s envisaged the plans will identify infrastructure solutions to connect proposed mining developments to electricity, water, gas, roads, railways and most importantly, their domestic and overseas customers.

The financial backing we’re providing to the South Australian Government is just the latest example of Federal Labor’s determination to reinvest a significant proportion of the wealth created by our natural resources into securing our nation’s long term prosperity.

All up, we expect to put some $6 billion from our Minerals Resource Rent Tax into the Regional Infrastructure Fund for projects which will support the mining industry as well as the regional communities that work for it.  Indeed, we are putting the ingenuity of our people and the wealth created by our natural resources to work building the future we want for our nation.

Organisations interested in developing the plans have until 2pm on 4 September to submit a bid under the tender process being managed by the State Government, with a compulsory briefing occurring in Adelaide on 10 August.  For more information, go to: www.tenders.sa.gov.au.

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Proposed infrastructure corridors—South Australia

Proposed infrastructure corridors—South Australia