South Australia’s resource royalties race past records

Surging prices for South Australia’s in-demand mineral resources have delivered bumper royalty receipts for FY24.

Royalty receipts for FY24 totalled a record $422.5m — a $43.3m increase over FY23’s revenue of $379.2m, representing a year-to-year increase of around 11%.

South Australia benefited from strong growth in prices for copper, gold and uranium. Copper is critical for electrification, and global demand is forecast to outstrip supply in coming years. This represents a significant opportunity for South Australia, which is home to 69% of the nation’s copper resources.

In the 12 months to September 2024, refined copper and copper products represented 15% of the state’s total exports, at $2.7b — up 9% on the previous 12-month period.

South Australia Member Tom Koutsantonis says the growth in royalty receipts bolsters the state’s budget position, helping to ensure that the entire South Australian community benefits from the abundant natural resources under its feet.

“The results also tell a good news story about where demand for natural resources could be heading,” he said.

“This is the first time we’ve raced past $400m in total royalty receipts, and much of this year’s record growth has come from some of the minerals considered essential to renewable energy and other technologies that will help decarbonise the global economy, including copper.

“The [State] Government is determined to position South Australia as both a leader and major beneficiary of the global economic transformation — and these results suggest we’re on the right path.”

Forecasts for future royalty receipts will be announced in the Mid-Year Budget Review to be handed down in December.