**Check against delivery
Good afternoon ladies and gentlemen.
Let me first say it is something of a challenge to be predicting the future in today's global economic climate.
Nevertheless I predict continued success and growth for our resources and energy sector.
That is because - despite the market volatility we are seeing at the moment - the fundamentals remain, for continued demand growth in commodities like uranium, LNG, coal, iron ore, aluminium, nickel, copper and other metals.
These commodities are vital to the sustainable economic growth of our neighbours in the Asia-Pacific and central to their ability to lift hundreds of millions of people out of poverty.
The world's urban population will increase by 1.4 billion people through to 2025.
More than 60 per cent of that urbanisation will occur in Asia, mostly in China and India.
Urbanisation - and associated industrialisation - will drive the need for huge investment in critical infrastructure.
It will also generate demand for resources and energy so that the required roads, railways, ports, pipelines, power stations and industrial facilities can be created.
As many of you appreciate, energy and commodity demand depends upon the maturity of an economy.
Per capita steel consumption is a good example.
Mature economies such as the USA and the EU consume steel at a rate of 400 kg per person each year.
More recently-industrialised economies - such as South Korea and Taiwan - consume around 1,000 kg.
Developing economies such as China and India have some way to go to the height of industrialisation.
China presently consumes steel at a rate of 270 kg per capita, and India - just 40 kg.
There have been many questions raised in recent weeks about the sustainability of China's demand for Australian resources, particularly iron ore.
China's growth outlook for next year may have dropped from double digits but it is still over 9 per cent.
That is a big number off what is now a substantial base.
Australia's commodity exports will continue to be important to sustain that growth.
There may be some market shake-outs - of both marginal suppliers and marginal customers.
Prices may fall from record highs as demand and supply come more into balance.
But China and Japan will still make steel and the supply security, reliability and product quality for which Australia is known will still be important when it comes to iron ore and coking coal.
The same principles apply when it comes to energy.
The urbanisation and industrialisation of Asia will continue to drive insatiable demand for Australia's uranium, LNG and coal.
Energy security is one of the big issues confronting Australia and the world today: whoever controls access to energy resources controls economic growth.
We are one of the world's energy superpowers - a very sobering reality that comes with enormous responsibility, not only for our own energy security but for the energy security of the region.
Almost 20 per cent of our nation's exports are energy resources - and this proportion is growing.
Projects like Olympic Dam here in South Australia are not only exceptionally important for the future of South Australia's economy, jobs and exports - they are exceptionally important to maintain sustainable growth in Asia.
That is why the Australian and South Australian governments will work together to ensure approvals processes for the Olympic Dam expansion are properly conducted and in a timely manner.
Continuing investment is vital for Australia to weather the economic downturn currently facing many of our trading partners.
Now more than ever, we need investment to sustain jobs, government revenue, and export income growth.
Here in South Australia, we have many other energy and resource opportunities for investment, including uranium, natural gas, coal - with underground gasification potential - and geothermal.
In a carbon-constrained world, we have to continue to pursue new clean energy technologies such as geothermal, even though capital-raising may be more challenging in the near to medium term.
I am hopeful that the Australian Government's commitment to the industry through the $50 million Geothermal Drilling Program will go some way to demonstrating to capital markets our confidence in this industry.
Over the past decade, the South Australian Labor Government has actively pursued a program increased mineral exploration and development.
Known as PACE, it is called the Plan for Accelerating Exploration Program and it has made South Australia a major player in the Australian resources and energy sector.
Over the past decade, mining exploration in South Australia has increased five-fold.
In the last financial year alone, exploration expenditure increased by 36 per cent on 2006/07 figures to $92.5 million.
South Australia has also gained a reputation as a location that welcomes and promotes mining.
The proof is in the 2008 World Risk Survey conducted by RESOURCE STOCKS magazine, which only this month ranked South Australia as Australia's best jurisdiction for mining.
That is a great tribute to the State.
It is an important part of what is a national success story.
Australia is a safe investment location: politically and economically stable, we can provide investors with a world-leading regulatory environment, we have skilled and trained labour, and safe and productive workplaces.
Recent investment in Australia's resources and energy sector suggests industry shares my upbeat assessment of the future.
In the six months to April 2008, 22 major minerals and energy projects - with a total capital expenditure of $11.3 billion - were completed.
A further 97 projects are at an advanced stage, with projected capital expenditure of $70.5 billion.
Despite the global economic slowdown, a weakening Australian dollar, strong export prices, and higher export volumes will get Australia through it.
Significant expansions in iron ore, copper, coal, and LNG are still in the pipeline and will result in further export earnings growth.
Exploration investment in Australia's minerals and energy sector is also at record levels.
It is again important that we keep the focus on this activity to ensure there are projects in the pipeline for 10 years, 20 years, and 30 years down the track.
That is why the Australian Government is committed to the introduction of a flow through scheme as part of a package of exploration incentives to ensure Australia's future economic prosperity.
Ladies and Gentlemen - No discussion about energy and resource security can overlook the importance of climate change.
The Australian Government is serious about acting responsibly on climate change: we have committed to reducing Australia's greenhouse gas emissions by 60 per cent on 2000 levels by 2050.
To meet this target, a range of measures will be required:
- A Carbon Pollution Reduction Scheme;
- Greater research, development and faster deployment of clean energy technologies; and
- Energy efficiency and conservation.
The Australian Government will pursue these measures in an economically responsible manner.
We are committed to reducing emissions with the least economic cost while maintaining reliable and affordable energy supplies and the international competitiveness of Australia's industries.
Only this week I had the privilege of addressing the first meeting of the Australia Government's Carbon Storage Taskforce.
I told Taskforce members that Australia can play a global role in developing economically-responsible climate change policy.
The Taskforce has been charged with developing the National Carbon Mapping and Infrastructure Plan, which will prioritise the development of geological storage sites for carbon capture and storage.
The Taskforce is pivotal to the development of the Government's $500 million National Low Emissions Coal Initiative and complements the research and development work to be undertaken by the National Low Emissions Coal Research Centre.
The Australian Government's commitment to reduce Australia's greenhouse gas emissions by 60 per cent by 2050 will require substantial CO2 reductions from Australia's coal-fired power stations.
Coal provides around 80 per cent of Australia's total electricity, and accounts for 32 per cent of Australia's greenhouse gas emissions.
No serious approach to climate change can ignore the need to reduce CO2 emissions from coal and the Government is committed to helping develop large-scale demonstration projects in order to assess the feasibility of CCS.
Of course - the Government's work to further develop existing low-emission industries, such as LNG, will also play a significant role in reducing global emissions.
For every tonne of CO2 emitted in Australia during production, LNG saves four tonnes of CO2 when consumed in Japan and nine tonnes when consumed in China.
In a carbon-constrained world, Australian LNG is very important to maintaining continued sustainable growth in Asia.
Ladies and gentlemen, the 21st Century will be the Asian Century.
And Australia, as an energy and resource rich nation on Asia's doorstep is very well placed - both geographically and economically - to be a part of it.
Now more than ever, it is incumbent upon all of us to work together to unlock the wealth of Australia's resources for the benefit of all Australians.