A re-elected Labor government will pay royalties to South Australian farmers if new mineral deposits are found on their land.
Freehold and perpetual leaseholders would receive 10 per cent of royalties – if a mine is developed on their land – should Labor be returned on March 17.
“This new royalty-sharing program will support the growth of our mineral resources sector while creating valuable new income streams for South Australian farmers,” Mineral Resources Minister Tom Koutsantonis said in a statement on Thursday.
The move comes after SA-BEST leader Nick Xenophon announced his party would push for royalties to be used to fund regional infrastructure projects if his party holds the balance of power.
It would also invest $15 million in an entrepreneurs’ fund to encourage business to set up in regional SA.
“SA-BEST will make it a priority to support growth, including strong population targets, and improve services that will help activate local economies,” Mr Xenophon said.
The Liberal opposition pledged last year to spend 30 per cent of government revenue from yearly mineral and petroleum royalties on regional roads and other infrastructure.