#Official Mining Thread

[AG]

Honeymoon gets the green light
January 11, 2008 11:35am
THE STATE's third uranium mine - the Honeymoon Project - has been given the go ahead and is expected to create up to 60 new jobs.

Acting minister for Mineral Resources and Development Michael Atkinson said the mine will be located 400km north-east of Adelaide and will be owned by Uranium One Australia Pty. Ltd.

“Honeymoon will be capable of producing some 400 tonnes of uranium oxide a year, resulting in an expected mine life to six to seven years," Mr Atkinson said.

The Department for PIRSA approved the Mining and Rehabilitation Program, under the Mining Act 1971, for construction of the wellfield process plant and related infrastructure.

“The use of in situ recovery to extract the uranium confirms Uranium One’s commitment to using the most responsible form of mineral production possible,'' he said.

“I acknowledge the work that both PIRSA and Uranium One have put in to ensure that the MARP is a comprehensive plan emphasizing the highest standards for rehabilitation for the site.

“Based on this production rate the annual export contribution for the state is estimated to be about $40 million.”

Mr Atkinson said some additional conditions are still to be met by Uranium One before production can begin on site later this year.

[AG]

Shortage despite degree boom
LUCY HOOD
January 14, 2008 10:30pm
MORE people are applying to study engineering at universities, the latest figures show.

South Australian Tertiary Admissions Centre data given to The Advertiser show university first-preference applications to study engineering have increased by almost 25 per cent since electronic data were first collated eight years ago.

More than 1548 people applied to do engineering and related degrees as their first-preference this year compared to only 1251 in 1999.

Despite the rise, mining and energy groups said it would not be enough to combat the dramatic skills shortage facing the industry over the next 20 years.

The Advertiser reported yesterday that university and TAFE applications had fallen by more than 1450 this year, as more young people are lured towards unskilled positions in the workforce instead of further education.

Tom Putland, 18, of Unley, has applied for an engineering degree.

The former Mercedes College student hoped to study either aerospace or mechanical engineering at Adelaide University, the same degree Adelaide-born NASA astronaut, Andy Thomas, graduated from in 1973. "It's going to be a challenge but I think building spaceships would be an amazing job," he said.

The increased demand has prompted the University of Adelaide to offer an extra six new engineering degrees this year. Bachelors of Engineering in architecture, avionics, electrical systems, computations, sports and sustainable energies will bring the total number of engineering degrees at the university on offer to 31.

University of Adelaide acting vice-chancellor and president Professor Fred McDougall said engineering was "very much in demand this year". "In anticipation of demand from applicants and in response to industry needs, the university applied for and was granted extra places so there are still some opportunities for late applicants," he said.

SA Chamber of Mines and Energy chief executive Jason Kuchel said the skills shortage meant it would be "impossible" to fill all the requirements in the industry over the next 20 years.

"It is positive to see that the trend away from engineering is being arrested," he said. "But we have devalued engineering to our own detriment and have gone for several decades without placing any importance on it," he said. "It's the foundation of our society, from manufacturing, mining, water, electricity and roads."

Mr Kuchel contributed the rise in application numbers to the mining boom and the promise of high salaries.

"Electronic and defence fuelled the fire but mining pushed engineering over the top."

ASC Shipbuilding chief executive officer John Gallagher said more engineers were always welcome in the rapidly expanding industry. "The defence industry in SA is expanding rapidly with major projects like the Air Warfare Destroyer program, and as an engineering-based company we are pleased to see stronger demand for engineering places at our local universities," he said.

While engineering experienced the largest growth, SATAC figures showed health, education, society and commerce related degrees had the largest number of first-preference applications.

Agriculture and environmental related degrees experienced the largest fall, dropping 13 per cent on last year.

[AG]

Uranium paydirt
CAMERON ENGLAND, GREG KELTON
January 17, 2008 12:15am
PRELIMINARY work on yet another world-scale uranium mine in the state's Outback will begin by the middle of the year.

In the second significant uranium mine decision within a week, Alliance Resources announced a mining trial at its Four Mile uranium project near Arkaroola.
This should lead to the development of Australia's third-largest uranium mine, making SA home to four of the nation's five mines.

The announcement came as Premier Mike Rann said government departments were already working on up to 60 projects to provide essential infrastructure for the planned Olympic Dam expansion.

Alliance Resources said the trial at its Four Mile site would start in the June quarter, depending on relevant approvals being granted.

That follows Uranium One's mining and rehabilitation plan for the Honeymoon uranium mine northwest of Broken Hill being approved last Friday.

Alliance, which is developing the Four Mile project with Quasar Resources, plans to start commercial uranium concentrate production in 2010, depending on the success of the trial, with the mine expanding from an initial 1.5 million pounds to 4.5 million pounds per year.

Alliance chief executive Steve Johnston said this production rate would make it the third largest uranium mine in Australia, and the sixth largest in the world.

Both recently-announced mines would use the in situ leach mining method, which involves pumping diluted acid underground, where it collects uranium, and then recovering it on the surface.

South Australia has the world's largest reserves of low-cost uranium.

BHP Billiton's Olympic Dam mine contains the world's largest single resource.

South Australian company Curnamona Energy was also planning a trial mine, and New South Wales company PepinNini Minerals signed a $40 million joint venture with Chinese government company Sinosteel to develop a $160 million project in the State's far northeast last year. If both mines progress to operations, SA would be home to four of Australia's five uranium mines, with the other being the Ranger mine in the Northern Territory.

The announcement comes as Premier Mike Rann released figures showing SA was on the verge of an unprecedented mining boom.

Mr Rann said many South Australians were not aware of just how much the boom would mean to the state.

It would "dominate the state's economic future for the next 150 years", he said.

"People should realise that in 2001 there were four operating mines in SA and now there are eight with 30 or more in the pipeline," Mr Rann said.

"Mining exploration is at an all-time high having risen nearly $300 million for the year to September, 2007. This is nearly 10 times the level of just five years ago and we are second only to WA."

Economic Development Board chairman Bruce Carter, who heads the Government's Olympic Dam Task Force, said government departments were working on over 60 projects to provide infrastructure for the Olympic Dam mine expansion.

They are drawing up plans for extra security, health services, water, education, social welfare and other essential services.

Projections about the growth in size of the Roxby Downs township near the mine show police numbers at the local station will have to increase from the current four to around 40.

A final decision on the $7 billion expansion is expected next year after the release of an environmental impact assessment later this year.

Mr Carter told The Advertiser from New York yesterday that negotiations with BHP about the mine expansion were continuing on an almost daily basis.

Mr Carter said the state had to do everything it could to make the most of the Olympic Dam expansion and the other mining projects going ahead.

He could not offer any estimates of the infrastructure costs for the state in relation to Olympic Dam because "we still don't know the full scale of the project".

Toro Energy chairman Dr Ian Gould said he described the challenges being posed by the mining boom in SA as "like a lottery winner who then finds he does not have the bus fare to go down to collect it".

"We have done a really great job and we have these developments in front of us," said Dr Gould, who is also chairman of the SA Minerals and Petroleum Expert Group which promotes exploration.

"We have to put the money out now to get the prize. That is going to require investment by the Government and require a lot of skills which SA, and Australia, is deficient in at the moment."

However, Dr Gould said the mineral deposits being found in SA were long-term prospects.

[AG]

SA's 'window of opportunity' to capitalise on boom times
GREG KELTON, STATE EDITOR
January 22, 2008 01:10pm
SOUTH Australia has only a "short window of opportunity" to take advantage of the housing and mining booms before our ageing population becomes a burden.

A new Access Economics report released today warns the state's ageing population will eventually weigh down heavily on the state's economic prospects.

The report says the housing boom and the state's "spectacularly rich" mineral resources will be the main drivers in SA's economic revival.

Its release coincides with news that mining and housing supplier MAC Services Group will start making houses for Australia's remote mining communities from an Edinburgh Parks plant next month, employing 100 people and pumping $25 million a year into SA's economy.

Read more on the MAC Services Group story here

Access Economics says SA has finally thrown off the lingering effects of its very sharp recession of the early 1990s.

It says Adelaide is "the standout" among state capitals for housing prices.

"As the state's cost and lifestyle advantages are becoming more pronounced as the long-running boom at the national level tightens available capacity elsewhere – housing affordability in SA is better than anywhere else in Australia except Tasmania," Access says.

In its report which says the state "has some good news ahead of it", Access also says:

RURAL recovery will lift output considerably.

THE massive Olympic Dam uranium and copper mine expansion is "the 400kg gorilla for the state" representing a "whopping" $3.6 billion in investment dollars.

EVEN though population growth has steadied, births are the highest seen in a decade and approvals for new homes continue to make good ground.

The Access Economics report comes just days after a separate ANZ report that also lauded our state's economic prospects.

[AG]

MAC Services to build miners' homes at SA plant
MEREDITH BOOTH
January 22, 2008 01:00pm
MINING and services housing supplier MAC Services Group will start making houses for Australia's remote mining communities from an Edinburgh Parks plant next month.

The plant will employ 100 people, executive chairman Kevin Maloney said.

Expected to pump $25 million a year into SA's economy by sourcing local materials and Adelaide based contractors, the company has taken over a site vacated by an automotive supplier to kick start its operations.

Mr Maloney said the homes would initially be sent to Western Australian gold mining operations but the company would hope to secure work with BHP Billiton's Olympic Dam expansion expected to house about 5000 workers for construction workers alone.

South Australian Premier Mike Rann welcomed the move today, as the company detailed plans to establish the multi-million-dollar facility at Edinburgh Park, in Adelaide's north.

``We all know we are on the cusp of great mining riches and SA can expect to see many more companies establish themselves here over the next few years to take advantage of the forthcoming boom,'' Mr Rann said.

``This is a successful Australian company investing in South Australia to create a local presence for the future needs of mining companies such as BHP Billiton and others.''

The MAC Services Group supplies accommodation services to the mining and resources sector as well as the construction and tourism industries.

[Bulldozer]

Geodynamics have finished drilling their Habanero 3 well - bottoming out at some 4.2km's with a diameter of 216mm, making it the largest well drilled to this depth in Australia. They are now placing a lining in the bottom section and installing headworks in preparation for testing circulation between an adjacent well ahead of using it to power a 1MWe pilot plant later this year.

Fingers crossed that the testing lives up to their predictions about the amount of energy down there!

[Wayno]

Here's a snapshot of current & future south australian mining activity. I compiled this by "data mining" the http://www.pir.sa.gov.au/minerals website (hopefully it's 90+% accurate):

Exec Summary of SA mining

• * 7 major mines operating as of today,
  * 17 biggies ramping up soon (some commencing production within a few months)
  * 8 more to watch in the medium term...

List of Major Active Mines in SA

• * Beltana (Zinc)
  * Beverley (Uranium)
  * Challenger (Gold)
  * Leigh Creek (Coal)
  * Middleback Range (Iron ore)
  * Olympic Dam (Copper, Uranium, Gold)
  * Project Magnet (Iron ore)

List of Major Emerging Mines in SA

• * Angas Mine (Zinc, Silver-Lead, Gold), Under Construction, Near Strathalbyn. 7 year operation
  * Cairn Hill (Magnetite, Cu–AU), Feasibility Stage, Near Coober Pedy, 10 year open-cut mine life
  * Carrapateena, (Cu-AU) Resource Definition Stage, 100km from Olympic Dam site
  * Four Mile West (Uranium), Resource Definition Stage, 550km north of Adelaide
  * Honeymoon (Uranium), Ready to commence production
  * Jacinth and Ambrosia (Zircon. HMs), Pre-feasibility Stage
  * Kalkaroo (Copper, Gold, Molybdenum), Resource Definition Stage
  * Kanmantoo (Copper, Garnet), Feasibility, 55km SE of Adelaide
  * Menninnie Dam (Zinc), Resource Definition Stage, not sure of location
  * Mindarie (Zircon, HMs), Under Construction, not sure of location
  * Mutooroo (Copper, Cobalt), Resource Definition, 60km West of Broken Hill
  * Peculiar Knob (Iron Ore), Resource Definition, 90km southest of Coober Pedy
  * Portia (Gold), Resource Definition, 100km west of Broken Hill
  * Prominent Hill (Copper, Gold), Under construction, 130 km NW of Olympic Dam
  * Tripitaka (Zircon, HMs), Resource Definition Stage, 100 km NW of Ceduna
  * Tunkillia (Gold), Resource Definition
  * White Dam (Gold), Finalising mineral lease approval, 80km west of Broken Hill

Projects to watch in the future

• * Arckaringa (coal - CSM) – Altona Resources
  * Bird in Hand (Au) – Maximus Resources
  * Crocker’s Well (U) – PepinNini
  * Kingston Coal – Kingston Energy Ltd
  * Mt Gee (U) – Marathon Resources
  * Oban (U) – Curnamona Energy Ltd
  * Wilcherry Hill (Fe, Au) – Trafford Resources Ltd
  * Wilgerup (Fe) – Centrex Metals

From what i can gather, each operating mine requires anything from 50 to 200+ onsite employees AND also brings associated jobs into local townships

Unfortunately, i'm still in the dark about the tax revenue generated by our mines. Just how big is the SA Govt's tax/royalty take going to be from this "mining boom"?

Oh, and please go ahead and republish the entire list of current/future mines should there be errors or changes...

[crawf]

After looking at this and taking into consideration the growing student and defence boom. I don't think we have to worry about the closure of Mitsubishi.

[rhino]

Mindarie, which is in the Murray Mallee a little north-east of Karoonda, is already producing Zircon and shipping it by rail to Adelaide about once a fortnight. Production is expected to increase to 3 trains per fortnight.

[rhino]

From the ABC website:

Centrex defends Port Lincoln export plan

A company planning an iron ore mine on Eyre Peninsula in South Australia has rejected concern that exports through Port Lincoln would damage the city's image.
Centrex Metals wants to use Port Lincoln or nearby Proper Bay to ship its ore overseas.
Port Lincoln councillor Michael Bascombe says there is growing opposition to the plan.
"We would be sacrificing our clean, green image for tourism and aquaculture for the sake of somebody else making millions out of mining," he said.
But Centrex managing director Gerard Anderson says residents have nothing to fear.
"We think there's still a long way for us to go to actually detail all of our plan and I think that's one of the key issues."
Centrex says a pre-feasibility study of the company's port options should be completed by the end of the month.



Comments? Should they be shipping out of Port Lincoln or Whyalla? Or, if there's enough ore to warrant rail transport, should it go out of Thevenard?

[Wayno]

<snip>
Comments? Should they be shipping out of Port Lincoln or Whyalla? Or, if there's enough ore to warrant rail transport, should it go out of Thevenard?

See the pikkie below - all areas highlighted in PINK are owned by Centrex Metals. There's quite a few immediately north (within 50-100km) of Pt Lincoln.

centrex.JPG (66.16 KiB) Viewed 2986 times

Is proximity a strong enough argument?

[Wayno]

Latest update to SA's mining activity. I've grouped the emerging mines according to their current development stage. Data is compiled from http://www.pir.sa.gov.au/minerals website

EXECUTIVE SUMMARY

• * TODAY - 8 major mines operating as of today
  * SOON - 4 biggies starting soon, and 12 more slowly ramping up
  * LATER - 8 big ones to watch in the medium term...

List of Major Active Mines in SA

• * Beltana (Zinc)
  * Beverley (Uranium)
  * Challenger (Gold)
  * Leigh Creek (Coal)
  * Middleback Range (Iron ore)
  * Mindarie (Zircon, HMs)
  * Olympic Dam (Copper, Uranium, Gold)
  * Project Magnet (Iron ore)

List of Major Emerging Mines in SA

READY TO COMMENCE PRODUCTION (should start anyday now)

• * Honeymoon (Uranium)

UNDER CONSTRUCTION (should start production soon-ish)

• * Angas Mine (Zinc, Silver-Lead, Gold), Near Strathalbyn. 7 year operation
  * Prominent Hill (Copper, Gold), 130 km NW of Olympic Dam
  * White Dam (Gold), 80km west of Broken Hill

FEASIBILITY STAGE (We know what's down there - but is it cost justified)

• * Cairn Hill (Magnetite, Cu–AU), Near Coober Pedy, 10 year open-cut mine life
  * Jacinth and Ambrosia (Zircon. HMs)
  * Kanmantoo (Copper, Garnet), 55km SE of Adelaide

RESOURCE DEFINITION (checking what's down there - is there really that much - wow!)

• * Carrapateena, (Cu-AU) 100km from Olympic Dam site
  * Four Mile West (Uranium), 550km north of Adelaide
  * Kalkaroo (Copper, Gold, Molybdenum)
  * Menninnie Dam (Zinc)
  * Mutooroo (Copper, Cobalt), 60km West of Broken Hill
  * Peculiar Knob (Iron Ore), 90km southest of Coober Pedy
  * Portia (Gold), 100km west of Broken Hill
  * Tripitaka (Zircon, HMs), 100 km NW of Ceduna
  * Tunkillia (Gold)

Projects to watch in the future

• * Arckaringa (coal - CSM) – Altona Resources
  * Bird in Hand (Au) – Maximus Resources
  * Crocker’s Well (U) – PepinNini
  * Kingston Coal – Kingston Energy Ltd
  * Mt Gee (U) – Marathon Resources
  * Oban (U) – Curnamona Energy Ltd
  * Wilcherry Hill (Fe, Au) – Trafford Resources Ltd
  * Wilgerup (Fe) – Centrex Metals

From what i can gather, each operating mine requires anything from 50 to 200+ onsite employees AND also brings associated jobs into local townships

[Cruise]

Thanks for the list wayno, now you wouldnt happen to you know a job agency that deals with the mining companies? (im about to come out of my apprenticeship, now i want to earn real money!!!)

[Wayno]

Thanks for the list wayno, now you wouldnt happen to you know a job agency that deals with the mining companies? (im about to come out of my apprenticeship, now i want to earn real money!!!)

yep - there's money in them hills - that's for sure.

Not sure about employment agencies, but all SA's current mining companies have their websites listed on this page ==> http://www.pir.sa.gov.au/minerals/publi ... _australia

Also consider checking out some of the emerging mines here. Many are undoubtedly looking for good people already ==> http://www.pir.sa.gov.au/minerals/publi ... g_projects

Here's a map of SA's mines and mineral reserves to help you figure out where to base yourself - somewhere near port lincoln might be nice so you can explore the eyre peninsula! ==> http://www.pir.sa.gov.au/__data/assets/ ... 81_002.pdf

[Cruise]

Thanks wayno, my resume's on its way