#Official Mining Thread

[rhino]

Thanks Wayno, that's good news.

[Wayno]

We have jumped from 8 to 12 large mines in production! Changes are in RED. Data is compiled from the http://www.pir.sa.gov.au/minerals website.

This is great news and we should hopefully see better $$$ projections in Kevin Foley's June 2008 budget.

Executive Summary

• * TODAY - 12 major mines operating (up from 8 earlier this year)
  * SOON-ISH - 12 more big mines on the horizon. Could start in 6 months or 6 years
  * LATER - 8 big ones to watch in the longer term...

List of Major Active Mines in SA

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

List of Major Emerging Mines in SA

READY TO COMMENCE PRODUCTION (should start anyday now)

• * None at this time

UNDER CONSTRUCTION (should start production soon-ish)

• * None at this time

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

• * Cairn Hill (Magnetite, Cu–AU), Near Coober Pedy, 10 year open-cut mine life
  * Jacinth and Ambrosia (Zircon, Heavy Metals)
  * 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 (increasing resource definition effort, this is BIG, i can't believe there's so much down here guys!!!)
  * 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, Heavy Metals), 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

Don't expect to see any more large mines starting production for quite a while. As you can see above, there are no mines "ready to commence production" or "under construction".

[JamesXander]

If Mineral prices go up, does that mean our royalties go up. Or is it a set price?

[Wayno]

If Mineral prices go up, does that mean our royalties go up. Or is it a set price?

Mainly a set price as i understand (e.g. we get $37 per ounce for gold, irrespective of price). Also, the SA Govt provided some fairly big 5 year duration royalty discounts to many mining companies - just so they would start mining here! So 2007-2012 is a slow rampup from a royalty perspective...

* The good news: increasing mineral prices causes the mine companies to get more desperate, and hence they pay higher prices to attract workers
* The bad news: increasing mineral prices puts upwards pressure on interest rates which hurts everyone irrespective of whether they are involved in mining or not

[AtD]

Also increased mineral prices boosts the Australian dollar, hurts our non-mining exports and encourages imports, worsening our foreign debt. Remember mining is a high capital, low labour industry, it's not all revenue, revenue, revenue. In fact, in many other nations, the rest of the economy is wiped out by mining due to its effects on the exchange rate ("Dutch Disease"), which is especially not fun when all the mining profits go offshore. Not saying that we're worse off because of it, just shedding some international perspective (typically third world though).

In other news, the ABS released its Mineral Exploration figures today, for quarter ending December 07.
http://www.ausstats.abs.gov.au/ausstats ... 202007.pdf
MINERAL EXPLORATION, (Other than for petroleum)—Expenditure by state and territory
December 07 ($m) Trend estimates.
NSW 41.3
Vic 22.8
QLD 89.4
SA 85.5
WA 295.0
Tas 8.9
NT 31.6
Aust 574.5

PETROLEUM EXPLORATION, By state and territory
December 07 ($m) Trend estimates.
NSW 8.4
Vic 15.4
QLD 43.7
SA 72.5
WA 512.7
Tas 4.0
NT 113.3
Aust 770.0

In other words, we're second nationally, ahead of the so-called mining boom state of Queensland, but MILES AND MILES behind WA.

[frank1]

You sort of expect WA to be way ahead of any other state.WA is a huge area, like 1/3 of Australia and it has been the mining boom state for more than a decade

[Wayno]

mostly relates to digging stuff up and burying it again - so i thought i'd add this in the mining thread...

from Adelaidenow:
http://www.news.com.au/adelaidenow/stor ... 01,00.html

SA should foster nuclear industry, says geologist Ian Plimer
SOUTH Australia could become the Saudi Arabia of nuclear energy with a "cradle to grave" uranium industry, a geology professor has told a mining conference.

SA, home to the bulk of the world's uranium deposits, is encouraging mining and exploration but does not want a nuclear industry.

Professor of Mining Geology at Adelaide University, Ian Plimer, today said SA could do more than just export yellow cake - a term for the product produced during the processing of uranium ores.

"I think it is an absolute no-brainer that we should look at a cradle to grave uranium industry," Prof Plimer said at a uranium conference in Adelaide today.

"Where we mine it, we convert it into yellow cake, we create the fuel rods, we lease these fuel rods to the major western countries that are wanting to use nuclear power.

"We take the fuel rods back, we clean them up and we dispose of the waste.

"That would make South Australia the Saudi Arabia of the energy world.

"That would give South Australia control of the world's uranium instead of us relying on unstable parts of the world for our petroleum energy."

Prof Plimer said nuclear energy was the only real cheap, clean energy option with more energy needed to build a solar power station than it would ever produce.

He believed SA could set up a uranium industry.

"We have seen it done in Finland, we have seen it in Sweden - and I think it can be done in Australia."

In SA, 83 junior mining companies hold 339 exploration licences for uranium and many are gearing up to float on the Australian Stock Exchange.

The conference was also told the outlook was positive for uranium prices - which have been hovering about $US70 ($A75) a pound (0.45kg) after peaking last year at $US135 ($A144) a pound.

Hmmm, tricky one - should we build a cradle-to-grave nuclear industry in SA?

[Wayno]

mostly relates to digging stuff up and burying it again - so i thought i'd add this in the mining thread...

from Adelaidenow:
http://www.news.com.au/adelaidenow/stor ... 01,00.html

SA should foster nuclear industry, says geologist Ian Plimer
SOUTH Australia could become the Saudi Arabia of nuclear energy with a "cradle to grave" uranium industry, a geology professor has told a mining conference.

SA, home to the bulk of the world's uranium deposits, is encouraging mining and exploration but does not want a nuclear industry.

Professor of Mining Geology at Adelaide University, Ian Plimer, today said SA could do more than just export yellow cake - a term for the product produced during the processing of uranium ores.

"I think it is an absolute no-brainer that we should look at a cradle to grave uranium industry," Prof Plimer said at a uranium conference in Adelaide today.

"Where we mine it, we convert it into yellow cake, we create the fuel rods, we lease these fuel rods to the major western countries that are wanting to use nuclear power.

"We take the fuel rods back, we clean them up and we dispose of the waste.

"That would make South Australia the Saudi Arabia of the energy world.

"That would give South Australia control of the world's uranium instead of us relying on unstable parts of the world for our petroleum energy."

Prof Plimer said nuclear energy was the only real cheap, clean energy option with more energy needed to build a solar power station than it would ever produce.

He believed SA could set up a uranium industry.

"We have seen it done in Finland, we have seen it in Sweden - and I think it can be done in Australia."

In SA, 83 junior mining companies hold 339 exploration licences for uranium and many are gearing up to float on the Australian Stock Exchange.

The conference was also told the outlook was positive for uranium prices - which have been hovering about $US70 ($A75) a pound (0.45kg) after peaking last year at $US135 ($A144) a pound.

Hmmm, tricky one - should we build a cradle-to-grave nuclear industry in SA?

[AtD]

Hmmm, tricky one - should we build a cradle-to-grave nuclear industry in SA?

Yes. There's no better place in the country to store nuclear waste than the far north, it's geologically sound and has very little ground water, at least that's what I read the last time this debate popped up.

[Wayno]

this is good news and will presumably lead to more mining industry jobs (and maybe some scientific R&D opportunities) in south australia: http://www.abc.net.au/news/stories/2008 ... 193178.htm

SA and Canada to share uranium knowledge
An agreement will soon be signed between South Australia and a Canadian province that will see a sharing of knowledge on uranium and other minerals.

The Primary Industries Department says the proposed collaboration is with Saskatchewan in central Canada, which has a similar geology to South Australia.

The Department's geological survey manager, Mark McGeough, says a lot can be learned from the province, especially about uranium, which is less controversial there.

"I think from an Australian perspective we could learn a lot from how uranium and the issue of uranium is handled in Canada," he said.

"There's a number of provinces where they accept both uranium mining, processing and some states or provinces in Canada actually have nuclear power."

Just to give some perspective, we will soon have 4 operational uranium mines, but there are another ~80 mining companies in south australia holding a grand total of ~340 uranium exploration licences - and many are gearing up to float on the ASX soon...

[monotonehell]

Just to give some perspective, we will soon have 4 operational uranium mines, but there are another ~80 mining companies in south australia holding a grand total of ~340 uranium exploration licences - and many are gearing up to float on the ASX soon...

I'm torn. The greenie in me hates the idea of digging up more useless uranium at great cost to the environment. But the economist in me loves the idea of the much needed boost to South Australia's industry. My butt's getting sore from fence sitting.

[Omicron]

Just to give some perspective, we will soon have 4 operational uranium mines, but there are another ~80 mining companies in south australia holding a grand total of ~340 uranium exploration licences - and many are gearing up to float on the ASX soon...

I'm torn. The greenie in me hates the idea of digging up more useless uranium at great cost to the environment. But the economist in me loves the idea of the much needed boost to South Australia's industry. My butt's getting sore from fence sitting.

Especially if it's a picket fence. That wouldn't be very comfortable at all.

[monotonehell]

Just to give some perspective, we will soon have 4 operational uranium mines, but there are another ~80 mining companies in south australia holding a grand total of ~340 uranium exploration licences - and many are gearing up to float on the ASX soon...

I'm torn. The greenie in me hates the idea of digging up more useless uranium at great cost to the environment. But the economist in me loves the idea of the much needed boost to South Australia's industry. My butt's getting sore from fence sitting.

Especially if it's a picket fence. That wouldn't be very comfortable at all.

Don't get me started on the cliche'd white picket fence and suburban sprawl.

[Cruise]

I'm torn. The greenie in me hates the idea of digging up more useless uranium at great cost to the environment. But the economist in me loves the idea of the much needed boost to South Australia's industry. My butt's getting sore from fence sitting.

Especially if it's a picket fence. That wouldn't be very comfortable at all.

Don't get me started on the cliche'd white picket fence and suburban sprawl.

who actually has front fences these days anyway?

[monotonehell]

who actually has front fences these days anyway?

Unneighbourly types, check out the Eastern Suburbs