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News release

Adelaide

BHP Billiton’s Olympic Dam Expansion is set to be the key driver of the Adelaide CBD office market over the next 15 years


ADELAIDE, 4 JUNE  2012 – The Adelaide CBD is set to get a taste of the mining boom with BHP Biliton’s Olympic Dam Expansion set to increase base office demand in the Adelaide CBD by 35% over the first 12 years of the project according to Jones Lang LaSalle.
 
The recently released white paper, “Olympic Dam Expansion Impact on Adelaide CBD Office Demand,” predicts that the expansion, which is the second largest resources project in Australian history, will be a key driver of the Adelaide CBD for the next 15 years.
 
David Snoswell, Director of Research and Consulting, Jones Lang La Salle said, “We forecast an additional 75,000 sqm of office space demand in the Adelaide CBD office market as a direct result of the Olympic Dam Expansion. This is the equivalent three new office buildings being developed in a response to increased demand from the Olympic Dam Expansion project”.
 
But Jones Lang LaSalle Managing Director Jamie Guerra expects the impact may be more widespread, “We expect the project to build confidence across the business community, which should lead to a further expansion in the economy and demand for CBD office space,” he said.
 
“The Olympic Dam Expansion will provide long–term benefits to the South Australian economy and property sectors, significantly improving the state’s finances, helping to fund critical infrastructure and potentially reducing the state’s reliance on property based taxes.”
 
“Furthermore, The Expansion gives the South Australian mining and resources sector a critical mass, which may see new companies committing for the first time to South Australia, or running additional business activities from South Australia.”
 
Mr Snoswell said one of the future challenges that may face South Australia is access to a skilled workforce, with both the Queensland and Western Australian resources sectors both competing for workers.  Clearly, there will be high demand on skill sets such as engineering, construction and other skilled trades”.
 
According to BHP Billiton’s Olympic Dam Expansion Draft Environmental Impact Statement (2009), the project will generate 6,000 new jobs during construction, 4,000 full time jobs on-site and a total of over 15,000 full-time equivalent (FTE) jobs for South Australia once operational.
The Olympic Dam Expansion project is awaiting final board approval from BHP Billiton, with a decision expected before the end of the year.