PERTH (miningweekly.com) – Copper miner Hillgrove Resources has inked a formal partnership with the South Australian government, which would see the company relocating its corporate office from Sydney to Adelaide.

The move was in recognition of the low mining tax and cost environment offered by South Australia.

The partnership would also involve a grant of A$850 000 towards the construction of a pipeline to deliver untreated water to the Kanmantoo copper mine, in South Australia, displacing more expensive drinking water.

The pipeline would supplement the existing supply of treated effluent water from the District Council of Mount Barker.

“Our major assets are located in the Adelaide Hills so it makes sense to partner with the South Australian government on a strategy that supports copper at every stage from exploration to export,” Hillgrove CEO Steven McClare said.

“South Australia also offers the added benefit of being a low-mining-tax and low-cost jurisdiction and with a government that is extremely proactive in wanting to partner with resource companies to develop the state’s assets.”

He added that relocating the company’s office and staff from Sydney would allow Hillgrove to use high-quality services at very competitive rates from local Adelaide firms such as information technology, auditors, accounting and legal services.

Hillgrove Resources is one of South Australia’s three copper-exporting companies and the second to commit to relocating their headquarters from the east coast to Adelaide.

Mineral Resources and Energy Minister Tom Koutsantonis said the partnership with Hillgrove would be an important element in ensuring the success of the South Australian Copper Strategy.

“South Australia aims to triple its copper production by 2030, which should assist Australia to rise to third in the global rankings of copper-producing nations,” Koutsantonis said.

“To achieve our ambitions for South Australia and the nation, the state government needs to work more closely with resource companies and the partnership with Hillgrove is the latest example of that necessary collaboration.”

The Minister added that by partnering with companies such as Hillgrove, the government could ensure South Australia was best placed to take advantage of its natural strengths when global copper demand picked up.