Departing South Australian Premier Mike Rann will hold his position until the $18.2 billion Olympic Dam expansion project deal is finalised with the signing of an indenture agreement.

 

"Before I step down as Premier and leader, there are a several key projects that I should complete, including, most importantly, the go-ahead for the Olympic Dam expansion," Mr Rann said.

 

The signing of the deal currently has no timeframe and could take months, perhaps as late as early 2012.

 

There is speculation that Mr Rann’s announcement could spark a leadership challenge, although Minister for Education Jay Weatherhill, who secured the Labour caucus vote to replace Mr Rann, has refused to challenge the Premier.

 

“There’s no question of a challenge, there’s an agreed transition” Mr Weatherhill said. “He will make a statement when he returns from overseas and we should be patient and wait for that”.

 

The state’s Greens have voiced their concern over Mr Rann’s plans, saying that the move will allow BHP an even stronger bargaining position over the State Government.

 

“What will happen now to previous commitments from the government, such as processing in South Australia rather than China and ensuring ‘world’s best practice in terms of the environment’ for the expansion? Will they be sacrificed in order to meet an artificial timeline set by the ALP back-room?” Green’s South Australian leader Mark Parnell said.