OilVoice - Linc Energy to Invest in South Australia

Linc Energy to Invest in South Australia

Friday, November 21, 2008

Minister for Mineral Resources Development Paul Holloway has welcomed Linc Energy’s decision to step up its investment in South Australia.

Mr Holloway says the decision by Queensland-based Linc Energy to develop its first commercial underground coal gasification and gas-to-liquid plant in South Australia’s Arckaringa Basin is great news for the State’s economy.

“The decision by Linc Energy to proceed with this significant investment in South Australia will mean new jobs both in the Arckaringa Basin and in Adelaide to provide support services,” Mr Holloway says.

“The Rann Government is also delighted Linc Energy plans to relocate engineers and drilling equipment as well as move or establish a number of relevant project services to South Australia.”

“This Government has been working hard during the past six years to create a climate of confidence that allows resource companies to invest and explore within South Australia.

“Linc Energy’s announcement confirms South Australia’s supportive polices can not only lure explorers, but can also ensure the crucial follow-up investment into mine construction, support services and technological development.”

Linc Energy’s decision to focus on South Australia to develop its first commercial UCG and GTL plant follows the company’s acquisition of SAPEX.

The move by Linc Energy follows the recent announcement by Copper Range Ltd of its decision to relocate its offices to Adelaide from Sydney to be closer to its South Australian operations.

Mr Holloway says the steady flow of investment follows South Australia’s recognition in the annual ResourceStocks magazine’s World Risk Survey for 2008. That survey ranked South Australia as the least risky jurisdiction in Australia for investing in mining and exploration and second in the world.

“The resurgence in interest in South Australia as an investment destination for mining companies is due to the confidence building policies pursued by this Government, especially the innovative Plan for Accelerating Exploration, or PACE,” Mr Holloway says.

“This Government’s concerted effort to cut red tape in the resources sector has already generated record-breaking growth in exploration spending, which is now being gradually transformed into investment in mine development and construction within South Australia.”