An agreement between the South Australian Government and BHP Billiton over the company's proposed expansion to its Olympic Dam site seems to be inching closer after an initial draft indenture act has been outlined.

 

The indenture act will govern the practices of the Roxby Downs Olympic Dam copper and uranium mining site. According to government sources, the act already has full cabinet support in the State Government.

 

A senior State Government source told The Australian that the government intends to hand BHP the draft for the company to approve and, if desired, alter before the legislation is finalised.

 

"No other organisation would ever be given the same level of power and authority. This is all related to the time pressures of the October 20 leadership handover date. Cabinet will be presented with a done deal," the source told The Australian.

 

Completion of the Roxby Downs project in the State's north will see the largest

 

Completion of the indenture act is one of the key pieces of legislation that outgoing Premier Mike Rann wants to complete before he hands power to Education Minister Jay Weatherhill.

 

A final investment decision by the BHP is expected to be announced pending the passage of the legislation.