Speaking at the National Australia Bank symposium in Adelaide this afternoon, Minotaur Exploration managing director Andrew Woskett said BHP’s decision to can the expansion at Olympic Dam had cleared the mindset in SA and released miners from the project’s “intoxicating grasp.”

“It empowers this state to now look more closely at our many other options for minerals development,” Woskett said.

"With the air cleared on Olympic Dam, our government can now look more appreciatively at resource projects that are nearer term, less risky and far less capital intensive, with their benefits spread more widely across the state.”

With the mining sectors in both Queensland and Western Australia reaping the benefits of being branded as resource-rich states, Woskett said SA had flown under the radar by comparison - despite hosting world-class minerals deposits such as iron ore, uranium and copper.

“It wallowed in a domestic void, placed geographically midway between WA’s over-mineralised terrain and Queensland’s vast coal fields,” he said.

“Without a standout discovery or a major undertaking, SA struggled to get air time.

“It was largely overlooked by brokers, investors and analysts alike.”

With the deferral of Olympic Dam sparking negative publicity regarding SA’s mining potential, Woskett pointed out the reality and benefits of the situation.

“The fallout from the deferral was around a project that had never actually been committed,” Woskett said.

“It wasn’t a mine closure, it wasn’t the end of a regional community reliant on a single employer shutting the mine gate – it was a rational and entirely foreseeable commercial decision.”

Woskett said the flare of publicity on SA’s mining sector could be utilised while all eyes were watching its next move to focus on untapped potential and leverage the state’s minerals brand.

He said to avoid missing out on future opportunities, it was critical for SA to signal it remained open for business.

SA already holds the resources, mining skills and relevant technology to meet the expanding demand for minerals, but needs to tap into the essence and logistics of attracting more investment.

However, there are barriers.

According to Woskett, SA explorers were experiencing growing antipathy to low-level exploration.

“Land is being increasingly isolated from exploration through new conservation zones and zealous political over-reaction to pressure points,” he said.

"We must ensure that access to minerals is not unduly diminished through legislative reform, social activism, land rights, ambit Native Title claims, and populist politics.

“We have relatively low sovereign risk and regulation, but our legislators need to keep in mind that it is the shareholders, not governments, that take all the risk, from grass roots exploration through to mine financing and operation.”

With some investor rewards taking as long as a decade to be realised, the SA mining industry was urged to guard against raising the investment bar through ‘improved’ regulation, otherwise investment sentiment could be driven down and offshore.

“We need government to plan and prepare for a diverse, multi-commodity mining sector supported by practical regulation, forward infrastructure planning and regional development,” Woskett said.

Additionally, Woskett also warned of the dangers of SA falling into a similar trap down the track of resting its economic reliance on one major project.

"Where we do not want to end up is in a misguided media fantasy that SA’s mining future revolves around one and only one project,” he said.

“We certainly do not want to succumb again to the siren call of a mega project being the state’s sole economic salvation.”

This article first appeared in ILN's sister publication MiningNews.net.