“Quicklook” Assessment of Greater Adelaide's Assets & Challenges ...

• SA has experienced/mature industry participants.
• Human resources are easily available; in fact currently there is somewhat of an
oversupply of geologists/petroleum engineers.
• University of Adelaide recently got a substantial grant to support the new School
of Petroleum Engineering and Management.
• Mining education is being addressed through sessions put on by science teachers
for 7 year olds through high school age children. The Chamber of Mines in SA
sponsors these sessions.
• Australia is attractive due to its stability in government, honesty, and it is an
English-speaking nation.
Business Processes
• Desire to stick with core competencies.
• Recognized need for education.
• Established history of working in this environment.
Science and Technology
• SA companies are innovative and creative: “world leaders in new technologies.”
For example, SA has developed methods using Electromagnetics to “see” through
the surface salt cover to find minerals.
Entrepreneurial Infrastructure
• The small SA minerals companies are risk takers. If land issues are resolved,
then increased opportunities for smaller companies that are willing to take on the risk
should be available.
• Australia is generally ranked in the top 10 of Global opportunities for minerals
exploration.
• World class and competitive industry.
Government
• Royalty rates and fees are reasonably low (Mineral rights are owned by the
crown).
• There is a well-established network of technology transfer.
• Petroleum Act of 2000.
• Industry has closely engaged with government.
Barriers-Obstacles
• Based on current concerns about land use and access, Australia is slipping in
world ranking as preferred places to invest exploration funds.
Area 1:
Land Access: As part of the Reconciliation Process, Aborigine groups have
gained new controls over the lands they occupy in regards to mineral exploration.
Currently companies are trying to negotiate with these groups to settle land
access issues. Until these approaches are settled and contracts signed, the
uncertainty creates problems when companies try to raise investment funds for
exploration programs.
Area 2:
Access to Capital: It is hard to raise capital in SA for mineral exploration
programs due to a fairly risk adverse investment community. Currently, most
funding comes from other parts of Australia like Sydney or Melbourne, and more
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