South Australia is at a pivotal time in its history. But there is work to do to foster innovation, speed-up decision making, attract talent and unlock private-sector investment.
That was the message we heard loud and clear at our recent ‘Stronger Australia’ Adelaide business luncheon.
With several major infrastructure projects underway across the state, including the AUKUS submarine program, the Northern Water project and Hydrogen Power Station at Whyalla, South Australia is well-positioned to herald in a new era of economic prosperity.
The new Adelaide University, technical colleges and existing innovation districts are set to provide an important platform to enhance R&D and build future skills and workforce.
South Australia’s longstanding investment in renewable energy generation, along with the transformation of the Upper Spencer Gulf as a hub for hydrogen, green steel and sustainable manufacturing, are helping to accelerate the pathway to Net Zero while ushering in a ‘green reindustrialisation’ of the economy.
Collectively, these initiatives are stimulating significant capital investment in South Australia, fostering growth across several new and existing high-value industries and helping the state’s economy grow, currently at a faster rate than the nations.
All critical developments that many would argue are long overdue and very-much needed.
But when you stop to consider who is taking the lead on these endeavours, many are being led and financially underpinned by government coffers.
Government should of course be funding public services and infrastructure, creating the right policy settings to encourage economic growth, innovation and business agility. There is also an occasional need for government to intervene and invest to stimulate new endeavours and enhance existing industries.
However, we cannot rely solely on taxpayer’s money to underpin our state’s economic success, nor should it be left to government to lead the transition to Net Zero or attract and retain talent.
Leadership and investment is also required from industry and the private sector to embrace and address the social, environmental and economic challenges and opportunities before us.
As I wrote about earlier in the year, BHP’s ‘Copper SA’ strategy, is a prime example of industry leadership that is driving economic growth, creating jobs, building new skills and generating enormous local business and supply-chain opportunities for the State, from the Gawler Craton all the way to the Adelaide CBD.
Following it’s $9.6 billion acquisition of OZ Minerals, BHP is embarking on a substantial reimagining of its South Australian footprint, bringing together the operations of Olympic Dam, Carrapateena and Prominent Hill mines, along with the Oak Dam project.
As a global company, BHP has several operations across the world including in Latin America and Canada. But it has made a very deliberate and significant investment in South Australia and for one very simple reason: the world needs copper and SA has significant copper reserves.
BHP’s South Australian expansion is already well underway with copper production reaching 322,000 tonnes for the 2024 financial year.
BHP’s investment in South Australia includes plans to ramp up its domestic processing and smelting capabilities, which is set to potentially double local copper production by the mid-2030s. Put simply, if developed, it would enable more of SA’s high quality copper to be supplied to global markets, more quickly and stimulate enormous returns for the local economy.
Other examples of industry leadership and private-sector investment that is helping to boost the economy include Eldercare’s recent partnership with Resthaven to acquire Aveo’s South Australian Retirement Living Portfolio, Thomas Foods International investment in its Murray Bridge processing plant and additional hi-tech manufacturing hubs, Haigh’s Chocolates investment in its new Salisbury South manufacturing facility and RM Williams expanded Adelaide workshop, increasing local manufacturing capacity.
ZEN Energy is working on its Templers Battery Project, the state’s second largest energy storage project, and the Solar River Battery and Solar Project. EPIC Energy is investing $130 million in a standalone battery storage solution, adjacent to its two solar farms at Mannum, that will support the state’s ongoing energy security and energy transition. And then there is Fleet Space launching its Next-Gen Centauri-6 Satellite on SpaceX’s Bandwagon-1 Mission, leading the way in Australian space exploration.
This is exactly this type of industry leadership that we need more of in SA.
Now is the time for local industry and the private sector to accelerate decision making, invest in training and skills, embrace new technologies, including AI, upgrade equipment and workplaces, and support the implementation of government-led foundational projects to drive long-term and sustainable economic growth for all South Australians to enjoy.
At the same time, the government needs to do everything possible to reduce business costs, ensure energy reliability and affordability, cut red-tape, boost public sector productivity, and create and sustain the right policy settings to attract greater private sector investment.
We all have a role to play.
Done right, and with continued ambition and collaboration across government, industry and the whole community, South Australia is well positioned to enjoy a new era of prosperity for decades to come.
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Sam Dighton
Chief Executive Officer
Committee for Adelaide
