coober pedy and far north south australia

coober pedy and
far north south australia
The geographical centre of South Australia’s resources boom
“Coober Pedy is poised for a period of
economic growth unsurpassed in our history,
largely driven by resource developments
surrounding our town.”
- Mayor Steve Baines
A Region Poised for Growth
The economy of Far Northern South
Australia continues to be stimulated by
burgeoning mining developments. Known
for two decades as the ‘Cinderella’ state
of mining in Australia, South Australia has
experienced a five-fold increase in mineral
exploration in the five years to 2007.
South Australia has moved from being a
mining backwater to one of the world’s
best exploration destinations.
Far Northern South Australia contains
all five priority exploration regions in the
state. In one recent forecast it is suggested
that capital investment in the resources
sector over the next decade in South
Australia will total $24 billion
($US19.92 b). The bulk of that investment
will occur in Far North South Australia.
Nestled in the midst of this region is the
iconic town of Coober Pedy, the “Opal
Capital of the World”. Producing 80%
of the world’s opals, Coober Pedy has
over its 100 year opal mining history
evolved into one of the most unique places
in Australia and perhaps the world. It
continues to be a popular location for
domestic and international ‘travel-shows’
and attracts over 120,000 visitors per
year. It is a cosmopolitan town with a
population of 3,500 and over 45
different nationalities, many living
underground. The ethnic diversity has
been a catalyst for fine cuisine and the
town enjoys some of the best restaurants in
remote Australia.
Far North South Australia is the outback,
the spiritual heartland of Australia. Where
the journey is more important than the
destination and its essence is characterised
not only by the vast open spaces, the
amazing night sky and the colours in
the landscape but also the pioneering
spirit of its people, their communities and
lifestyle. With experiences ranging from
camel races on an ancient sea bed to
fine dining at outback pubs a million miles
from anywhere – Far North South Australia
is truly one of the gems of the Australian
tourism market. This is demonstrated
by the fact that the Flinders Ranges and
Outback South Australia tourism region
attracts more visitor nights in South
Australia than any other region outside
of Adelaide.
The Far North SA region has seen
significant growth in the number of new
business opportunities. New residents
are being attracted, past residents are
returning and the feeling amongst the
business community is that of confidence,
opportunity and prosperity. It is the start of
a new era for Far North South Australia.
New businesses, new services and new
skills will enable the region to ride the
resources boom well in to the future.
“Coober Pedy is experiencing an economic
boom. There’s a lot of excitement in the town.
There’s more money flowing into the town
and new businesses are being established”
- Mick Wilkes, General Manager – Prominent Hill, Oxiana Ltd.
Cover Aerial View of open pit mine at Prominent Hill (courtesy of Oxiana Ltd)
Inset Dining at Umberto's Restaurant, Desert Cave Hotel, Coober Pedy (courtesy SATC)
Investing in Far North South Australia
Resources
Far North SA contains all five of the South
Australian government’s priority exploration
regions. The Gawler Craton, Adelaide
Geosyncline, the Musgrave Block, the
Stuart Shelf and the Curnamona Province
(including the Cooper Basin). As of April
2007 the Fraser Institute listed South
Australia as the 4th most attractive location
for mineral exploration in the world. The
likelihood of further world-class ore body
discoveries is imminent.
Whilst the super mine of Olympic Dam
dominates the interest of the world mining
industry, there are many other world
class mining operations in various stages
of development throughout the region.
The Cooper Basin is the location of the
most important on-shore petroleum and
natural gas deposits in Australia and could
potentially become the site of the world’s
biggest carbon storage (geosequestration)
facility, putting South Australia at the
forefront of Australia’s fight against global
warming. Geodynamics’ Innamincka
project is also located within the Cooper
Basin area of South Australia and is
one of Australia’s leading geothermal
(hot fractured rocks) projects. Dominion
Mining’s Challenger Gold mine 200km
south of Coober Pedy is producing
approximately 100,000 ounces of gold
per year and won the Gold Mining
Journal’s Australian Gold Miner of the Year
award in 2005 and 2006. Oxiana’s
Prominent Hill mine, 130km south east of
Coober Pedy, contains the most
significant Copper-Gold discovery of
the last decade.
The pipeline for further development
continues to grow with two mining
operations coming online in 2008 (Cairn
Hill and Peculiar Knob) and a further five
likely in the next five to ten years within a
200km radius of Coober Pedy.
These include:
• Hawks Nest (iron ore) – Western Plains Resources
• Murlocoppie, Westfield and Wintinna coal deposits (coal) – Altona Resources
• Carapateena (copper/gold) – Tek
• Cominco and RMG Services JV
• Punt Hill (iron oxide/copper/gold) – Monax Mining
• Tunkillia (gold) – Helix Resources and Minotaur Exploration JV
In addition to these current and imminent
mining and energy operations, there are
innumerable other exploration companies
exploring the highly prospective tenements
throughout the Far North South Australia
region. With affordable land, excellent
infrastructure and access to a large,
semi-skilled workforce with a strong
mining culture, Far North South Australia
makes for a compelling location for the
establishment of a variety of businesses
servicing the resources sector.
For more information on mining
developments across Far North South
Australia visit www.nrdb.com.au/resources
or call the Far North Economic Development
Officer on +61 8 8672 5579. For further
information on resources in SA visit:
www.pir.sa.gov.au
Left Prominent Hill Processing Plant under construction (courtesy of Oxiana Ltd)
Middle Excavation at Prominent Hill (courtesy of Oxiana Ltd)
Right Olympic Dam (courtesy of BHP Billiton)
Growing Business in the Far North:
A case study
T & S Jeffree Contractors
Fred and Sandy Jeffree moved to Coober
Pedy in 1999 to establish an opal mining
business. Although having some success
in opal mining, it was very difficult to pass
up the obvious opportunities that Oxiana’s
$1 billion (AUD) Prominent Hill mine
presented when construction started in
October 2006.
“Being in such close proximity to
Prominent Hill meant that we were the
first to be considered for contracts”, says
Fred Jeffree, owner and operator of the
business. “We now employ 8 people
and we expect that number to grow in the
coming years as a number of other mines
commence within 100km from
Coober Pedy.”
T & S Jeffree’s main services are water
cartage, heavy equipment transport and
specialised freight solutions for established
mines and mines under construction.
“We have had many challenges and
have needed to take a degree of risk but
that risk has certainly paid off,” said Fred.
“We have increased our fleet three fold
in the past 12 months and we expect that
trend to continue in the years ahead.”
Coober Pedy – a town like no other…
With other South Australian fields, Coober
Pedy produces the majority of the world’s
opal. Mounds of mullock heaps create
Coober Pedy’s distinctive landscape, and
opal continues to be important to
the region.
However, an exploration boom in the
region has resulted in the discovery of
significant deposits of iron ore, copper,
gold and coal, together with inferred
resources of platinum, palladium and
other rare earths. The location of the
town makes it an ideal centre for mining
services, and a base for the delivery of
State and Commonwealth Government
services to the region. Coober Pedy is
fast becoming the destination of choice
for companies positioning themselves
to provide services to the mining and
exploration developments. If you are
in the business of mineral exploration,
equipment hire, village construction,
mechanical services, road construction
and maintenance, camp services and
development then you should see
Coober Pedy as a compelling location.
The current popularity of Australia as
a destination for international tourists
presents a major opportunity for Coober
Pedy to attract an increasing share of the
tourist dollar. In the past four years air
passenger movements on the Adelaide to
Coober Pedy route have doubled.
To position Coober Pedy for the future, the
Council and Regional Development Board
are undertaking Master Plan work on the
airport. Already with the assitstance of the
State Government, a route study has been
undertaken on the north/south air link
between Ayers Rock (Uluru) and Coober
Pedy. Once established it would provide
Far North South Australia access to one of
Australia’s most lucrative tourism markets.
The study provides a compelling case.
Above Left Opal Fields of Coober Pedy (courtesy of SATC)
Above Right Underground living Coober Pedy (courtesy of SATC)
Right Relaxing with a latte in the Outback (courtesy of FROSAT)
Crystal Opal Solids (courtesy of PIRSA)
Tourism
Far North South Australia is possibly
the most strategic location for tourism
development in Outback Australia. It has
well established transport infrastructure
including rail, road and air. It hosts
many iconic outback Australian natural
attractions including Lake Eyre, Dalhousie
Springs, the Painted Desert, the Simpson
Desert and Anna Creek Painted Hills. It
also contains three of the most famous
outback tracks in the country including the
Oodnadatta Track, Strzelecki Track and
the Birdsville Track.
It is expected that an air link between
Coober Pedy and Central Australia will be
established in the coming years which will
give the region's tourism industry access to
the potentially lucrative Ayers Rock (Uluru)
and Alice Springs markets.
“Although mining is fast becoming a
key economic driver for the region,
tourism in Far North South Australia
will continue to be a mainstay of the
regional economy well in to the future.”
Trevor McLeod, Chief Executive Officer,
District Council of Coober Pedy
In 2006, the Outback SA region attracted
an estimated 205,000 overnight visitors
that stayed nearly 965,000 nights. Of
these tourists, 40,000 were international,
119,000 were from interstate and the rest
from within South Australia. Coober Pedy
alone attracted some 122,000 visitors
overnight. The town is also situated on the
main highway north to other internationally
renowned destinations such as Ayers Rock
(Uluru) and Alice Springs.
One of the most alluring products that has
evolved in Far North SA is the Outback
Pubs Trail. To grow this market, publicans
Above Left Anna Creek Painted Hills
Above Right Spectators at Outback Event (courtesy of SATC)
stretching over 2000km have come
together with an aim to form a niche
product. Situated in the middle of the
600km Oodnadatta Track, William Creek
Hotel is possibly the most internationally
recognised pub. However pubs such
as Mungerannie, Mount Dare and
Innamincka Hotel are examples of other
great product that is drawing more and
more tourists to the region to experince the
great Aussie outback. These pubs trade on
the spectacular night sky, the colours of the
desert and that sense of being a million
miles beyond the ‘black stump’ where the
mobile phone never rings.
The indigenous culture in Far North SA is
extraordinarily rich. The opportunities exist
for interpretation of the culture in a variety
of different communities, to be developed
in partnership with community members.
A recent study has identified an interest
by northern indigenous communities
to capitalise on their assets such as
indigenous arts and crafts.
An area of growing interest is mine or
industrial tourism. This is a market that has
a long history in the opal mining towns
of South Australia and is an opportunity
recognised by the new mining companies.
The public fascination and excitement
around the new mines has created an
opportunity to have managed tourism
operations developed in conjunction with
the growth of mining in the region.
For more information on the tourism
industry in Far North South Australia visit:
www.nrdb.com.au or ring NRDB –
Coober Pedy on (08) 8672 5579
For further tourism information visit:
www.flindersoutback.com and/or
www.tourism.sa.gov.au or
Growing Business in the Far North:
A case study
The Desert Cave Hotel
In 1981 Umberto Coro began to realise a
dream of sharing the extraordinary experience
of underground living with visitors to Australia.
He had been associated with the town’s
hospitality industry for more than 26 years so he
understood the uniqueness of Coober Pedy to
the international market. Opal mining machinery
was brought to town from the opal fields to
gouge through the sandstone of a hillside near
the main street and one of the world’s most
unique tourism experiences was opened
in 1988.
“Coober Pedy offers a world class tourism
experience”, says Robert Coro, Managing
Director of the Desert Cave Hotel.
In 1989, the Desert Cave Hotel won both the
South Australian and National Tourism Awards
for Tourism Development. The Desert Cave Hotel
again won the South Australian Tourism Award
for National Standard Accommodation in 1990
and 1991.
The Desert Cave Hotel is a thriving business,
well established within the international inbound
tourism market. It is arguably the most unique
accommodation experience in Australia.
Fast facts
Population
The official population of Far North South
Australia is 7,536 (Source: Australian
Bureau of Statistics 2006 Census data)
however this is contestable.
The estimation of Coober Pedy’s
population is not straightforward. Although
the Australian Bureau of Statistics states
the population to be 1,913, the District
Council of Coober Pedy estimates the
population to be 3,500, based on
Council and Post Office records, electricity
and water usage, housing ownership and
rental data.
Economy
Northern South Australia contributes 5.8%
of Gross State Product – which equates
to 70% of Gross Regional Product. It
produces exports worth $2.7 billion
and includes 50% of state employment
in the mining and energy sectors. 35%
of employees are in the heavy industrial
sector and 40% in the service industry.
Predicted population growth in the region
is 4% by 2016.
Climate
Located in the Australian outback, Far
North SA experiences seasonal weather.
Between April and October, the weather
is very pleasant. Typical of a semi-desert
climate, the days (16 to 20°C) are mild to
warm but the desert nights are cold. From
November to March, the weather warms
up and summer temperatures can range
from 35C to 45C. The annual rainfall in
Food, Film and Art
the area is minimal at around 175mm (5
inches) per annum and can fall during any
time of the year.
Tourism
Tourism is a major economic driver for Far
North South Australia. The Flinders Ranges
and Outback tourism region attracts more
visitor nights than any other region in
South Australia outside of the Adelaide
metropolitan area.
In 2006 the Outback South Australia
region attracted an estimated 205,000
overnight visitors staying nearly 965,000
nights. Of these tourists, 40,000 were
international, 119,000 were from
interstate and the rest were from within
South Australia. Coober Pedy alone
receives an estimated 122,000 overnight
visitor nights per year staying an average
2.2 nights.
Fact Sheets
NRDB has a range of Fact Sheets
detailing relevant, up-to-date information
on infrastructure and services, together
with ways it can help you to establish
your business in the region.
Visit: www.nrdb.com.au
Left Golf Outback style - Coober Pedy (courtesy of SATC)
Right Geodynamics' Innamincka Geothermal Project - Habanero 1 (courtesy of Geodynamics Ltd)
Food, Film and Art are fast emerging as
important industries for the indigenous
people of Far Northern South Australia.
Over the past few years Outback
Australia’s bush produce such as lemon
myrtle, desert limes, bush bananas and
qandongs have risen in popularity in fine
dining restaurants throughout Australia’s
capital cities. Outback South Australia has
positioned itself to be one of the major
suppliers of this unique cuisine.
Art is becoming one of Far Northern South
Australia’s important industries. The talent
in indigenous communities in the Anangu
Pitjantjatjara Yunkunjatjara (APY) Lands
is only beginning to be tapped with the
remote indigenous communities struggling
to satisfy international demand.
The region is keen to position itself as a
preferred destination for film producers
also. The area’s abundant and accessible
arid landscapes have featured in many
films including, Mad Max, Pitch Black,
Red Planet and Priscilla – Queen of the
Desert to name just a few. Coober Pedy
has a skilled and experienced film services
sector and this emerging industry is set
to grow over the coming years. Although
erratic, this sector provides massive cash
injections in to the local economy during
extended shoots.
For more information contact NRDB at
www.nrdb.com.au or call NRDB Coober
Pedy on (08) 8672 5579
Government
of South Australia
Department of Trade and
Economic Development
Outback Areas Community Development Trust
District Council of Coober Pedy
Department of Trade and Economic Development
4 Marryatt Street (PO Box 2353)
Port Augusta SA 5700
Freecall: 1800 640 542
T: + 61 8 8648 5970
F: + 61 8 8648 5971
E: oacdt.outbacksa@saugov.sa.gov.au
Lot 773 Hutchison Street (PO Box 425)
Coober Pedy SA 5723
T: + 61 8 8672 5298
F: + 61 8 8672 5699
E: dccp@cpcouncil.sa.gov.au
Office of Regional Affairs
500 Stirling Road
Port Augusta SA 5700
T: + 61 8 8641 0119
E: sean.holden@state.sa.gov.au
www.cooberpedy.sa.gov.au
www.oacdt.sa.gov.au
www.southaustralia.biz
Facilitating Business Growth
Far North SA is set to welcome a wide
range of business and commercial
investment over the next 5 to 10 years.
We welcome newcomers to our growing
business community and are committed to
helping both new and existing businesses
grow and prosper.
We do this through a growth orientated and
responsive Regional Development Board
committed to professional client services.
The Northern Regional Development Board
(NRDB) provides economic development
services to the communities of the Flinders
Ranges and Outback region (which
includes Far North South Australia), which
comprises roughly 80% of South Australia’s
total area. It provides a broad ranging
Business Extension Service to support
small to medium enterprises, supports the
provision and maintenance of enhanced
business infrastructure, and is focussed on
a greater integration of employment and
skills formation programs, along with its
more traditional economic development
programs.
The District Council of Coober Pedy and the
Outback Areas Community Development
Trust are progressive and pro-active
organisations committed to sustainable
economic growth through the support of
relevant programs and agencies. There is
an abundance of affordable industrial and
commercial land throughout the Far North
SA region with easy access to infrastructure
and support services.
Each organisation understands that the
future success of the regional economy will
depend on the ability to build on existing
assets and as well as take advantage of
emerging opportunities.
Left The Breakaways, Coober Pedy
NRDB
Northern Regional Development Board
Lot 500 Stirling Road (PO Box 1762)
Port Augusta SA 5700
T: + 61 8 8641 1444
F: + 61 8 8642 6951
E: reception@nrdb.com.au
www.nrdb.com.au
Right Parking Meter, William Creek
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