Olympic Dam Task Force

The Olympic Dam Task Force was formed by the Government of South Australia in 2006 to assist with the facilitation of the expansion of BHP Billiton's Olympic Dam copper, gold and uranium mine near Roxby Downs in the state's Far North region. The Olympic Dam Task Force was initially allocated $1.5 million over three financial years to support its operations which included maximising the flow-on benefits of the proposed $5 billion plus mining expansion. At the time of its foundation, the Olympic Dam expansion was believed to have the potential to generate around 23 000 direct and indirect jobs.[1] The task force was allocated an additional $1.7 million funding for the financial years 2008-2009 and 2009-2010 to pay for recruitment of additional staff, provision of external advice, and other costs. Annual expenditure exceeded $2 million for the first time in 2012, the same year BHP Billiton decided not to proceed with the expansion as originally planned. The Task Force's scope has since expanded to include the facilitation of other major industrial projects in South Australia.

Origins

The Government of South Australia's intent to form a task force to assist the expansion of the Olympic Dam mine was first expressed in 2002. This followed an announcement in October 2002 by the former owner of the project, Western Mining Corporation of its intention to expand the mine. At the time, the company was considering the possibility of converting the mine from an underground mine to an open cut operation.[2]

A Cross-Government Taskforce, led by the Department of Trade & Economic Development (now the Department of State Development) was established by Premier Mike Rann in 2002 to progress assessment processes, and address environmental and infrastructure issues relating to the expansion of the mine. This task force was also involved in supporting matters of local industry participation, workforce planning, native title and Aboriginal heritage, and the review of the existing Roxby Downs (Indenture Ratification) Act 1982.[3] This taskforce served as the precursor to the Olympic Dam Task Force which was established in 2006, following BHP Billiton's acquisition of Western Mining Corporation and its assets.

Objectives

The Task Force's four initial objectives were:[1]

  1. Drive government facilitation of the project, to ensure timely delivery
  2. Facilitate the development of key infrastructure including a major desalination plant
  3. Work to try to maximise the regional and state benefits to be derived from the project, particularly in terms of skills development, local content, regional development, infrastructure and indigenous economic development; and
  4. Resolve and progress policy, regulatory and legislative issues.

In 2008, its two key roles were:[4]

  1. To negotiate indenture arrangements between the State Government and BHP Billiton; and
  2. To facilitate the government’s role in the Olympic Dam development

As of 2014, it continues to work to:[5]

Expansion of scope

Since BHP Billiton's decision in 2012 to defer the expansion of the Olympic Dam mine the Olympic Dam Task Force has expanded its scope to facilitate additional projects. These have included the transformation of Nyrstar's poly-metallic smelter at Port Pirie, the expansion of Arrium's iron ore export facilities in Whyalla and the early development of the prospective Braemar region's future export corridor to the Spencer Gulf. The Olympic Dam Task Force is also involved in the facilitation of the Spencer Gulf Ecosystem and Development Initiative, which is led by the University of Adelaide.[6]

Budget

The Olympic Dam Task Force continues to be funded by the Government of South Australia, allocated by the Department of State Development (formerly the Department of Treasury & Finance). Funding is disclosed in annual State Budget papers.[1][4]

Financial Year Budget allocation Actual expenditure FTE staff
2006-2007 $500,000[1] 0.6[7]
2007-2008 $500,000[1]
2008-2009 $700,000[4]
2009-2010 $1,046,000[8] 6[9]
2010-2011 $1,068,000[8] $1,447,000 7.3[10]
2011-2012 $1,091,000[8] $2,048,000 8.6[10]
2012-2013 $1,777,000[10] $2,253,000[6] 7.6[6]
2013-2014 $1,843,000[6] $2,712,000[11] 7.7[11]
2014-2015 $1,970,000[11] 8.4[11]
2015-2016 $7,305,000[11] 11.4[11]

Membership

Paul Heithersay (2015)
Paul Heithersay (2015)

As of 2014, members of the Olympic Dam Task Force presently include (but are not limited to):

Former Members

Peter Dolan from South Australia's Environment Protection Authority was a member in 2011,[15] though the status of his membership since is unknown. Known former members include Paul Case, whose retirement in 2010[16] drew media attention to his former position as one of the state's highest paid public servants. As Chief Executive of the Olympic Dam Task Force, Case received $330,000-340,000 annually. Shadow Minister for Trade, Martin Hamilton-Smith called for the Labor government to be less generous when appointing his replacement, drawing attention to Case's salary being greater than that of the Chief Executive of the Department of Trade and Economic Development, Lance Worrall ($302,000 per annum).[17]

Steering Committee

The Olympic Dam Task Force Steering Committee is chaired by prominent South Australian businessman, Bruce Carter.[18] It is composed of senior government and BHP Billiton representatives.[5] Bruce Carter has also worked as a consultant for PIRSA and the Department of Trade & Economic Development providing commercial services related to the Olympic Dam expansion. In October 2011, Carter told a special parliamentary committee that BHP Billiton had lobbied hard to obtain a reduced royalty rate of 3.5 percent, fixed for 45 years with the revision of the Roxby Downs (Indenture Ratification) Act 1982. The standard royalty rate for South Australian mines is 5 percent.[19]

References

  1. 1 2 3 4 5 Foley, Kevin. "2006-07 Regional Statement, Budget Paper 6" (PDF). Department of Treasury & Finance. Government of South Australia. Retrieved 2014-09-11.
  2. ↑ PIRSA Annual Report 2002-2003 (PDF). Adelaide, South Australia: Government of South Australia. 2003. p. 64.
  3. ↑ Economic Analysis & Policy Division (2005). Department of Trade & Economic Development - Annual Report 2004–05 (PDF). Adelaide, South Australia: Government of South Australia. p. 19. ISSN 1832-0791.
  4. 1 2 3 Foley, Kevin (2008). "2008-09 Regional Statement - Budget Paper 6" (PDF). Department of Treasury & Finance. Government of South Australia. Retrieved 2014-09-14.
  5. 1 2 "Olympic Dam Task Force". Department of State Development. Government of South Australia. 2013-12-13. Retrieved 2014-09-11.
  6. 1 2 3 4 Koutsantonis, Tom (2014). 2014–15 Agency Statements — Volume 4 (PDF). Adelaide, South Australia: Government of South Australia - Department of State Development. p. 98. ISSN 1440-8589.
  7. ↑ Department of Trade & Economic Development Annual Report 2006-07. Adelaide, South Australia: Government of South Australia. 2007. p. 83.
  8. 1 2 3 Foley, Kevin (2009). "2009-10 Regional Statement - Budget Paper 6". Department of Treasury & Finance. Government of South Australia.
  9. ↑ Department of Trade & Economic Development Annual Report 2010-11. Adelaide, South Australia: Government of South Australia. 2011. p. 30. ISBN 978-0-9872018-0-5.
  10. 1 2 3 2012–13 Budget Paper 4 - Agency Statements - Volume 3 (PDF). Adelaide, South Australia: Government of South Australia. 2012. p. 95. ISSN 1440-8589.
  11. 1 2 3 4 5 6 Agency Statements Volume 4 - 2015–16 Budget Paper 4 (PDF). Adelaide, South Australia: Government of South Australia. 2015. p. 92. ISSN 1440-8589.
  12. ↑ "Presenters > Paul Heithersay". South Australian Resources Energy & Investment Conference. 2013. Retrieved 2014-09-11.
  13. ↑ Gage, Nicola (2011-10-13). "Scientist defends Spencer Gulf desal assessment". ABC. Retrieved 2014-09-11.
  14. ↑ "South Australia Division 2012 Annual Elections - Division Committee Candidate Statements". Engineers Australia. 2011. Retrieved 2014-09-11.
  15. ↑ Parnell, Mark (2011-11-22). "Speech - GOVERNMENT BILL: Olympic Dam Expansion - Roxby Downs Indenture Bill". Mark Parnell MLC. Retrieved 2015-08-07.
  16. ↑ "Olympic Dam plan within days". Retrieved 2015-08-01.
  17. ↑ "Olympic Dam task Force CEO announces retirement". The Advertiser. 2010-10-27. Retrieved 2014-09-11.
  18. ↑ "Task force chairman flags mine expansion delay". ABC. 2009-03-19. Retrieved 2015-08-07.
  19. ↑ Puddy, Rebecca (2011-10-28). "BHP Billiton lobbied hard over Olympic Dam". Retrieved 2015-08-07.
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