South Australian graphite mine reopens near Port Lincoln, SA

Australia's only operating graphite mine will officially re-open today on South Australia's Lower Eyre Peninsula.

The Uley mine near Port Lincoln has been idle since 1993 when it was closed due to low prices for graphite.

Mine operator Valence Industries was hoping for annual production of about 30,000 tonnes of graphite per year.

It will initially employ 30 people and hopes to hire 90 in a second phase of operation.

Meanwhile, development applications for a multimillion-dollar aviation base further west near Ceduna was expected to be lodged next month.

Premier Jay Weatherill and Mineral Resources and Energy Minister Tom Koutsantonis met BP representatives to discuss the base, which would house a fleet of helicopters.

The aircraft will ferry workers to and from a BP exploratory drilling rig 300 kilometres offshore.

The mining giant awarded a $138 million contract to the international helicopter company, Bristow Group, for the base and aircraft.