South Australia's second significant gold mine will be opened near Broken Hill, Australian Minister for Mineral Resources Development Paul Holloway said on Thursday.

"South Australia has grown from four operating mines in 2002 to 12 this year and I'm confident this number will increase to 16 by the end of the year," Holloway said in a statement.

Holloway will open the White Dam mine on Thursday about 80 km west of Broken Hill.

The mine, a joint venture between Polymetals Group Pty Ltd and Exco Resources Ltd, has been expected to generate about 2.8 million dollars (2.32 million U.S. dollars) in local wages for the life of the project, Holloway said.

Production has been scheduled at about 50,000 ounces a year and the joint venturers were hopeful of further development potential in the region from the Vertigo and White Dam North deposits.

Broken Hill is an isolated mining city in the far west of outback New South Wales, near the border with Australia's state, South Australia.

The world's largest mining company, BHP Billiton, also has roots in the town.