Energy exports looking up, says the South Australian Chamber of Mines and Energy WHAT does the future hold? The South Australian Chamber of Mines and Energy (SACOME) is often asked to predict which projects will be successful and which won't. Although we can't do this, we do have a good record at predicting overall mine growth. At the end of 2011, 18 mines were in operation, just above our prediction of 16. Now, with 21 mines, we are well on track to meet our goal of 23 in 2015. South Australia is abundant in a range of minerals and commodities, but prices that encourage investment are needed in the current market to ensure our state continues to grow. Uranium, a commodity that until Fukushima was being touted as having the potential to make SA the Saudi of future energy resources, is finally looking more positive. The forward market looks promising for our uranium exporters due to a pro-nuclear Japanese Government re-opening nuclear power stations coupled with China resuming construction of 60 nuclear power plants; and the Australian and Indian Governments commencing negotiations to develop a Bilateral Civil Nuclear Co-operation Agreement. Urbanisation, a growing middle class and vehicle demand in China will also assist South Australia's miners, with the state looking to again be a key supplier of copper to the world. Depleting copper reserves will drive copper exploration development and commodity prices. In China alone, the number of vehicles per head is expected to triple over the next 10 years, along with plans to urbanise 300 million people into taller apartment buildings, which is more commodity intensive. Oil and gas will also play a key role in South Australia's economic story. BP's $1.4 billion commitment to off-shore exploration; Linc Energy's exciting early results in the Arckaringa Basin; and shale gas finds in the Cooper Basin attracting Chevron to joint venture with Beach Energy paint a positive picture for South Australia. The cost of doing business in Australia and a challenging investment and financing environment - especially for exploration - will no doubt impact on the development of the state's resources industry. Global average mining costs have risen by 70 per cent over the past decade and Australia is near the top of the cost curve. Accordingly, resources companies must increase productivity to remain competitive. It is imperative that federal and state governments recognise the importance of positive policies to assist companies in meeting these challenges. In this light, mining and oil and gas can continue to keep our state and national economies afloat. So, a positive outlook for the state? Absolutely. Will it be easy for miners? Quite the opposite. Jason Kuchel is chief executive of the South Australian Chamber of Mines and Energy.