#Official Mining Thread

[Wayno]

Permission to scrawl on Wayno's thread.

Tends to suggest something may happen in Oct.Appears like a population increase of about 5000. (Given the two bedroom houses'). Average per house is, I think,about 2.7 in Aust. now. But this is a mining community and probably won't attract a lot of families to live there. Looks positive - am anticipating good news.

SA - STATE ON THE MOVE

permission granted, albeit retrospectively...

Yes, this is great news, and one of the first pieces of non-political news about the OD mine expansion. Roll on October!

[UrbanSG]

Yeah despite the negative press a while back ODX is still well and truely on the cards. The real question is how long will it take and how many stages to ramp up to the massive forecast production. Really hanging for October, could be SA's biggest ever month for economic news, well hopefully anyway.

From news.com.au:

BHP set to sell uranium to China

AAP
August 18, 2008 05:20pm

BHP Billiton chief executive Marius Kloppers says the company has positioned itself to sell uranium into China after the Olympic Dam mine expansion in South Australia.

"I think we've obviously worked very hard in order to make sure we can sell uranium into China," he told reporters on a conference call.

However, Mr Kloppers said the company had inherited a "fully sold uranium portfolio" when it acquired WMC Resources, the former owner of Olympic Dam.

He added that an expansion of the mine would be required to sell additional uranium to other customers including China.

BHP reported a record annual profit today, and says it expects demand for commodities to remain strong.

[UrbanSG]

From Adelaidenow:

Australian Miner BHP Deilvers Record $17.6 bn Profit


CAMERON ENGLAND
August 18, 2008 04:00pm


BHP Billiton has smashed its own Australian record, delivering a $17.6 billion profit from its Australian and international mining and oil operations.

The big Anglo-Australian yesterday said it had increased profits by 14.7 per cent, for a seventh straight record profit, despite increasing costs of labour, materials and oil and the weak U.S. dollar.

Shares were down 77 cents, or 1.99 per cent, to $37.83 in early trading today, reflecting the overall market decline.

Chief executive Marius Kloppers, speaking from London, described the results as "spectacular''.

He also denied the claims of doomsayers forecasting a crash in commodities prices, saying the ongoing impact of China should not be dismissed, despite economic woes in the developed world.

Mr Kloppers said the slowdown in China was ``much more muted''.

"We can clearly see some differentiation in the economic performance of China, the main driver of our volume growth, and the developed world,'' he said. And while there had been a slowdown in China, it appeared to be concentrated in the light manufacturing sector, while there was a strong outlook for other sectors which drove BHP's business.

Mr Kloppers said the company had positioned itself to sell uranium into China after the proposed multibillion-dollar Olympic Dam mine expansion in South Australia. He said BHP expected to give an update on the pre-feasibility process of the planned expansion of the copper, gold and uranium mine early next year, but would not be drawn on what the potential costs could be.

"The Olympic Dam development path, which is the thing that you always try and nail down in your pre-feasibility study, is essentially complete,'' he said.

"What the team is doing now is working that particular path to look at execution, to look at costing and so on.'' Once the company had lodged its environmental impact statement, expected early next year, there would be a nine to 12-month public consultation period, Mr Kloppers said.

He said BHP's proposed $150 billion takeover of miner Rio Tinto made ``more sense than ever'', due to the challenges of commodity supply and of companies faced meeting that demand.

[Wayno]

"What the team is doing now is working that particular path to look at execution, to look at costing and so on.'' Once the company had lodged its environmental impact statement, expected early next year, there would be a nine to 12-month public consultation period, Mr Kloppers said. [/b]

Grumble , i always thought the EIS was supposed to be delivered as a part of the October announcement.

[UrbanSG]

Good one Wayno It has been due early next year for a while now (even though originally it was due last year).

The October announcement was always just going to be just that, an announcement, but it is meant to be detailed.

[UrbanSG]

From Adelaidenow:

OneSteel to lift Whyalla exports by 50pc over 2 years

CAMERON ENGLAND
August 19, 2008 04:15pm

ONESTEEL plans to increase its iron ore exports from Whyalla by 50 per cent over the next two years after reporting strong.

In its full year results announcement, the company said it planned to increase hematite exports from Whyalla by two million tonnes to 6 million tonnes per year by 2010.

Profit for the twelve months to June 30 climbed 18.3 per cent on the corresponding period in 2006/07 to $244.9 million following the inclusion of the Smorgon Steel businesses, strong demand from the infrastructure and mining segments and increased iron ore sales.

Operating net profit climbed 59.5 per cent to $315 million, underpinned by a 72.9 per cent rise in sales revenue to $7.43 billion.

The company exceeded its own export target in the past financial year, shipping 4.4 million tonnes of iron ore and 500,000 tonnes of ore by-products, compared with the 4 million tonne target.

The expansion has been dubbed Project Magnet Phase Two, and follows the successful changeover from hematite to magnetite feed at the company's Whyalla blast furnace.

This freed up about 40 million tonnes of the more lucrative hematite product for export over 10 years, while the magnetite is processed into steel at OneSteel's Whyalla plant.

The company loads the hematite on to barges, which ferry it about 8km into Spencer Gulf to a transhipment barge, which then loads it on to ships for export.

The first phase of project Magnet was completed in February, at a cost of $402 million.

Phase two will also include extending existing mines in the Middleback Ranges, optimising the existing mine plans and exploring new hematite targets on the company's leases near Whyalla.

OneSteel said the initial mine planning reviews had increased its hematite reserves by 13 million tonnes and the exploration work was initially scheduled to run over two years.

Premier Mike Rann said OneSteel's announcement was a vote of conifdecne in the State, and its Project Magnet investment had so far increased the company's local workforce by 550 to 1850.

"Many of the new jobs created in Whyalla involve apprenticeships and cadetships that will train South Australians with the skills required to take full advantage of the mining boom,'' Mr Rann said.

[skyliner]

"What the team is doing now is working that particular path to look at execution, to look at costing and so on.'' Once the company had lodged its environmental impact statement, expected early next year, there would be a nine to 12-month public consultation period, Mr Kloppers said. [/b]

Grumble , i always thought the EIS was supposed to be delivered as a part of the October announcement.

I always thought that as well - anyway, it looks far more positive than all that negative hype earlier on. Once people jump on board with the expected outcome, we will see an enlivened construction industry in the CBD and the northern suburbs.

Just an extra thought - I thought we were not to sell uranium to China - for political ramifications and nuclear arms stockpiling. Must be something I don't know about in the equation.

SA - STATE ON THE MOVE

[Wayno]

Just an extra thought - I thought we were not to sell uranium to China - for political ramifications and nuclear arms stockpiling. Must be something I don't know about in the equation.

i think the problem was with India, as they were not (are they now?) part of the Non-Proliferation Treaty (NPT). Israel, Nth Korea & Pakistan are also not members of the NPT.

China (and the US) are actually strong vocal advocates of the NPT, and both have many many nuclear reactors used for power generation. I see no reason to discriminate between these two "super powers"...

[Wayno]

Hot Rock Power Generation within 4 years!

Probably a bit overzealous, but nevertheless we are edging closer to having clean fuel, and SA is the "epicentre" for hot rocks around Australia!

http://www.news.com.au/heraldsun/story/ ... 61,00.html

HOT rocks electricity is touted as the latest solution to climate change - and Australia could have its first super-hot power plant within four years.

Federal Resources Minister Martin Ferguson today launched the government's $50 million hot rocks fund, first announced two months ago.

Hot rocks technology - also called geothermal - works by pumping water deep below the earth's surface, to areas which generate plenty of heat.

The water converts to steam and shoots back up to the surface, where it is used to make electricity. The technology generates very few greenhouse gas emissions.

Mr Ferguson said hot rocks technology had "truly staggering'' potential for Australia as the world faced up to climate change.

"Geothermal energy provides clean base-load power and is potentially a very important contributor to Australia's energy mix,'' he said as he launched the fund in Melbourne today.

"We could now see Australia's first commercially viable geothermal power plants in place within four to five years.''

Mr Ferguson said just one per cent of Australia's geothermal energy would provide enough electricity to meet the country's power needs - 26,000 times over.

He said the $50 million fund would be carved up into grants of up to $7 million, to go towards the high cost of drilling deep wells, and to finance companies wanting to prove-up the technology.

Funding guidelines were released today.

The government did not provide money for renewable energy in this year's budget, sparking an outcry.

In June, Mr Ferguson backflipped and announced $50 million would go towards geothermal.

The money is the first to come out of the government's $500 million renewable energy fund.

Mr Ferguson said Australia's epicentre of geothermal activity was in South Australia's Cooper Basin, but there was potential in every state.

He noted there were challenges in commercialising geothermal energy.

Many resources are a long way from markets, which creates a transmission problem.

[Wayno]

Olympic gold for developers

Our very own Professor made reference to this fantastic news a few days ago. Here's the latest:

http://www.independentweekly.com.au/new ... 51560.aspx

BHP Billiton is ploughing ahead with plans to house the thousands of new workers needed for the Olympic Dam expansion to kick off in 2013.

The company has appointed local real estate consultant Realty Solutions to advertise for experienced developers to build 2000 new houses, a 2000 single bedroom camp-style development for fly-in fly-out workers, a light commercial area and a caravan park.

Roxby Downs is already a property hotspot. On a recent visit to the town I was told there was a 350-strong waiting list of firm buyers. There was a full-scale building boom and every house was pre-sold.

Roxby Downs is the dormitory town for the Olympic Dam mine. The mine sits on a flat dusty plain 12km along a good road from the mine; Roxby Downs sits on gently rolling hills with established trees.

The population is 4500 with about 30 per cent of them under 10. The local kindy, school and TAFE has 1000 youngsters – the largest in the state – and St Barbara’s has another 200 primary students and is looking to kick off a secondary school. About 350 BHP Billiton people are currently involved in a study to double the size of the Olympic Dam mine starting in 2013.

Originally called a pre-feasibility study, it is now known as a selection study. This includes an environmental impact statement for delivery and public consultation some time next year for the expansion of the underground copper/gold/uranium mine into one of the biggest open-cut mines on earth.

Roxby Downs is to be doubled in size with two, three and four-bedroom houses to be built on land made available to developers by the company. Once expressions of interest are available from selected pre-qualified developers, the mining giant will enter negotiations with one or more tenderers, or undertake a more formal selection tender.

Four builders have recently completed a couple of hundred new homes in Roxby Downs. They are McCracken Homes, Keith Daniels Homes, Alpine Construction and Hickinbotham Homes. All are submitting expressions of interest. During the construction phase – of some 10 years – the biggest problem will be housing workers.

A temporary accommodation village is envisaged out of town along the Coober Pedy road. In the meantime, housing in the town is already stretched with reports that residents are camping out in tents and shipping containers.

Roxby Downs Council chief executive Bill Boehm said the town would develop differently from most mining centres given that BHP Billiton was determining the release of land.

“The planning process means there is less likely to be speculative activity than in most other mining towns in boom times,” Mr Boehm said.

“The difference is, it’s a controlled environment. An indenture from the State Government means the mining company builds houses and sells them at cost,” Mr Boehm said.

“Real estate prices are governed by how quickly the company develops the land.” The indenture agreement between the company and the State Government was being renegotiated. The most contentious aspect seems to be the expansion of the smelting assets which convert ore into sheets of copper, bars of gold and silver and uranium yellowcake.

At Prominent Hill, another massive copper mine just up the road which will be in production towards the end of this year, its treatment plant will produce an enriched copper ore of about 50 per cent copper. There is no smelter, with its enormous requirements of power, water and qualified manpower which now operates at Olympic Dam. The ore will be trucked to a railway siding, hauled to Darwin and sold to Asian smelters where the labour intensive function is much cheaper.

The new housing scheme at Roxby Downs involves the company leasing the land from the government then going through an application process to own it, after which they sell it to employees with a three-year caveat in place.

I'm getting the sneaking suspicion that BHP's ODX announcement in October is going to be good good news. You don't look to double the size of your supporting township for no reason!

[skyliner]

I'm thnking a definite certainty. Great for SA n the face of current economic trends.

SA - STATE ON THE MOVE

[Wayno]

Fingers crossed that SA gets this one...

Several thousands jobs would be the outcome!

http://www.ntnews.com.au/article/2008/0 ... tnews.html

THOUSANDS of jobs could be created by the construction of a $300 million rare earths plant in Darwin.

Arafura Resources yesterday announced that fertiliser and chemical group Incitec Pivot would investigate building a chemical plant to supply the junior mining company's proposed rare earths and phosphate processing facility.

Managing director Alistair Stephens said there were two potential locations for the chlor-alkali plant: Darwin or South Australia.

He said Arafura Resources would build its phosphate and rare earths processing plant at the same location, saving up to $100 million a year in operating costs.

It is believed the construction of the factory complex could create up to 4000 jobs.

The Incitec chlor-alkali plant would produce hydrochloric and sulphuric acids as well as caustic soda, and could potentially provide chemicals to other Territory mines such as Rio Tinto Alcan at Gove and Energy Resources of Australia's Ranger uranium mine.

Incitec will conduct a six-month feasibility study on the economics of building the plant.

[Wayno]

Another tick in the box as we head towards an OD announcement!

October is inching closer...the suspense is killing me!!!

http://www.radioaustralia.net.au/news/s ... tab=latest

Australian uranium tipped to source majority of China's power needs

The chairman of Anglo-Australian mining giant BHP Billiton says Australia could be supplying 70 per cent of China's power needs from uranium in the future.

Don Argus has told a business conference in Canberra that China is Australia's most important trading partner.

He says there's no reason BHP Billiton can't supply uranium to China from its Olympic Dam mine in South Australia.

"In fact 70 per cent of this uranium could come out of Olympic Dam, there's other uranium miners here in Australia to take advantage of this opportunity if we are brave enough to go down the path of the alternate route," he said.

Mr Argus says Australia needs to have a debate about supplying uranium to Asia, including China.

Australia and China signed a uranium supply agreement in 2006, but the Rudd Government has ruled out the sale of nuclear material to India.

[UrbanSG]

From adelaidenow:

Marathon shares surge on uranium deposit upgrade
September 02, 2008 12:00pm

URANIUM explorer Marathon Resources has upgraded the size of the uranium deposit at its Mount Gee project in South Australia's Flinders Ranges.

Marathon chairman Peter Williams said the upgrade followed ongoing evaluation of existing drill core samples taken in late 2007 and early this year.

The upgrade has lifted the estimated size of the deposit by 19.2 per cent from 42.8 million tonnes to 51 million tonnes.

At 1230 AEST, Marathon shares were up 4.65 per cent, or 4c, at 90c.

"It is pleasing that these revised results from our ongoing appraisal work continue to confirm the Mount Gee uranium project as one of Australia's largest undeveloped uranium deposits,'' Mr Williams said.

At present Marathon's drilling program at Mount Gee is suspended while it completes a clean-up operation at the site after it improperly dumped waste material.

[rhino]

Wow - Marathon's shares went up 4.65% because they discovered more ore in the World Heritage Area they were almost kicked out of for spreading their rubbish around it earlier this year.