Weatherill said the operation had already had a positive effect on the Adelaide Hills area.

“During construction, as many as 420 staff worked on the site every day and local company Exact

Mining Services is well-advanced in its recruitment drive to service the mine with 170 positions onsite during the next five years,” he said.

Kanmantoo is set to produce 21,000 tonnes of copper each year, boosting SA’s overall mineral production.

SA Minister for Mineral Resources and Energy Tom Koutsantonis said mineral production in SA rose 51.2% year-on-year to reach $4.96 billion in 2010-11 – well exceeding the former strategic plan target of $3 billion by 2014.

“Net mineral industry value increased by 39.7 per cent to $5.91 billion during the same 12-month period, placing South Australia in an excellent position to achieve its $10 billion target by 2020,” he

said.

“The mining industry’s contribution to South Australia’s gross state product rose by more than $1 billion in 2010-11 to $3.895 billion – the highest percentage growth of all sectors contributing to GSP.”

Koutsantonis also took the opportunity to highlight the state’s highly successful Plan for Accelerating Exploration (PACE) program, which assisted Hillgrove in its exploration effort at Kanmantoo.

“PACE2020 has provided further support through case management of the project,” he said.

He praised Hillgrove’s community engagement, which included the formation of the Kanmantoo Callington Community Consultative Committee.

“It is a credit to all stakeholders that this committee has put forward many valuable recommendations – 129 in all – as part of the formal consultation process,” he said.

“I am pleased that Hillgrove Resources has factored these recommendations into its best practice mine planning and operational arrangements.”

Earlier this month, Hillgrove said it had received early payment of $US7.3 million ($A6.8 million) for 4360t of copper concentrate.

Crushing and milling had been running at 69% and 76% of design capacity respectively.

Shares in Hillgrove gained half a cent to A23c.