#Official Mining Thread

[mattblack]

Will the above issues be addressed in the document due in Nov/Dec?

When will the Auslink 2 allocations be anounced?

Will the decision (due next month I believe you have said) of the Olympic Dam expansion be a catylst for some of the priorities?

Its so hard to believe that this state, after so may years in the financial doldrums, will have such a large influx of cash. Looking forward 10 - 15 years Adelaide could be a very modern, cutting edge city. The general Nimby, conservative attitude will have to change though, it is a major problem in Perth in a articlee I read in The Australian the other week where, it was said, that Perth was lacking a direction and leadership to take full advantage of thier situation. Adelaide could find ourselves asking the same questions in 10 years time.

Anyway, exciting bloody times.

[Wayno]

Will the above issues be addressed in the document due in Nov/Dec?

Who knows - Fingers crossed...

When will the Auslink 2 allocations be anounced?

Sorry - no idea...

Will the decision (due next month I believe you have said) of the Olympic Dam expansion be a catylst for some of the priorities?

The announcement should state BHPs "ODX ramp-up timeframe" to a full open-cut mine. They have to remove a million tonnes of overburden a day for 2 years to get to the mineral body. So yes, this should be the catalyst for true focus and action. Any snoozing bureaucrats will soon become wary of the potential public outcry if they inhibit progress.

Its so hard to believe that this state, after so may years in the financial doldrums, will have such a large influx of cash. Looking forward 10 - 15 years Adelaide could be a very modern, cutting edge city. The general Nimby, conservative attitude will have to change though, it is a major problem in Perth in a articlee I read in The Australian the other week where, it was said, that Perth was lacking a direction and leadership to take full advantage of thier situation. Adelaide could find ourselves asking the same questions in 10 years time.

Maybe not, 10-15 years is a long time, and many of the nimby conservative attitudes are already starting to fade (that's my personal opinion). A few hundred thousand new residents, a younger demographic, a new Premier, and who knows!!

Anyway, exciting bloody times.

That's obviously the australian version of the ancient chinese proverb (may you live in exciting times )

[Wayno]

i stumbled across this information today it's conceptual, does not show dates, but clearly indicates BHPs ODX ramp-up strategy.

bhp-odx-conceptual-plan.JPG (90.68 KiB) Viewed 1650 times

On the right hand side you can see the stages (now, 1.1, 1.2, 1.3. 2.0, 3.0, +) and the massive volume of mineral exports that starts to flow from stage 1.3, and then it goes truly ballistic from stage 2.0!

And i believe these estimates to be quite conservative...

[frank1]

Yeah OD is huge. My geology lecture was telling me he was at a meeting with BHP representives and OD has 1 trillion dollars worth of resources in the ground. I think it is the biggest mine on earth

[Wayno]

Yeah OD is huge. My geology lecture was telling me he was at a meeting with BHP representives and OD has 1 trillion dollars worth of resources in the ground. I think it is the biggest mine on earth

trillion - now that's word you won't hear to too often in SA!!!

[Shuz]

What would the royalties be on a trillion-dollar mine? Thats bloody huge.

[UrbanSG]

Yeah BHP stated it had over a trillion $ worth of ore in the ground at Olympic Dam last year so that isn't new news. Obviously it will take years to get all of that out so the royalities will take a while to ramp up. We are talking a 100 year + mine here people.

[AG]

Yeah BHP stated it had over a trillion $ worth of ore in the ground at Olympic Dam last year so that isn't new news. Obviously it will take years to get all of that out so the royalities will take a while to ramp up. We are talking a 100 year + mine here people.

And that doesn't account for changes in commodity prices or inflation.

[mattblack]

What would the royalties be on a trillion-dollar mine? Thats bloody huge.

Well at the 3.5% royalties calculated at the moment that would be about $35 Billion. About $350 million per year over 100yr life of the mine at full production. Not bad for 1 mine. Seeing that there could be another 39 mines up and going by 2020 its looking preetty good i say. Bet NSW is pissed considering thier situation. Dont forget the renewable energy sector SA will also be a major player

[Shuz]

No more cutting corners on infrastructure projects then I hope!

[Wayno]

What would the royalties be on a trillion-dollar mine? Thats bloody huge.

Well at the 3.5% royalties calculated at the moment that would be about $35 Billion. About $350 million per year over 100yr life of the mine at full production. Not bad for 1 mine. Seeing that there could be another 39 mines up and going by 2020 its looking preetty good i say. Bet NSW is pissed considering thier situation. Dont forget the renewable energy sector SA will also be a major player

i was just about to post that very same number - $35b. And from all mines SA should soon be realising royalties of ~$500m+ per year, and $1b+ per year within a decade.

[shudder with excitement]

Plenty of cash to fund roads, underpasses, ports, hospitals, trams, inner-city stadium, etc. Good times are coming - fingers crossed...

[/shudder with excitement]

[Wayno]

OMG OMG OMG!!!

ODX is bigger! up from 399 to 473 million metric tonnes

BHP Boosts Olympic Dam Reserve Estimates 19%, Mine Life 7 Years

omg.JPG (15.24 KiB) Viewed 2011 times

Sept. 16 (Bloomberg) -- BHP Billiton Ltd., the world's largest mining company, increased the estimated ore reserves at its Olympic Dam project in Australia by 19 percent as it studies an expansion that may cost at least $6 billion.

Total estimated ore reserves, comprising both proven and probable reserves, increased to 473 million metric tons at June 30, Melbourne-based BHP said in its U.S. annual report sent today to the Australian stock exchange. That compares with last year's estimate of 399 million tons for the world's biggest uranium deposit and fourth-largest copper lode.

BHP plans to complete an initial study on the expansion by the end of the year. The forecast development cost of Olympic Dam may rise threefold to as much as $15 billion, according to estimates last year by Merrill Lynch & Co. and JPMorgan Chase & Co.

``Olympic Dam is a relatively complex orebody, so there remains uncertainty about the size, cost, timing and eventual configuration of the expansion project,'' BHP said in the report. ``Ultimately, the expansion project will depend upon board approval of the final investment case and a range of regulatory and governmental approvals and agreements.''

Note: Bloomberg did not inlcude the "homer funny dance" image in their article. I added it coz it just seems right...

[skyliner]

Really excited as well.I trillion = $1000bn (as the USA would express it). Hope the Wall St crash does'nt filter to China etc to the effect that uranium/gold/copper demand drops significantly because of reduced infrastructure/construction. Also note - WA is opening up to uranium as a competitor to us(several years before anything actually occurs though).

SA - STATE ON THE MOVE

[Shuz]

Holy motherbleeping bleep!
Thats huuuuuuuuuuge.

[UrbanSG]

The opposition needs to watch out here, I think they are reading into the report far too much and if it ends up being a massive expansion as expected the opposition will look like complete idiots. From the abc news website today:

BHP report casts doubts: Opposition

Olympic Dam ... claims BHP's annual report casts doubts.

The State Opposition says BHP Billiton's annual report to the US Stock Exchange casts doubt on its proposed expansion of the Olympic Dam mine.

The company now estimates that reserves of minerals including uranium, copper, gold and silver are 74 million tonnes more that it reported last year.

The report says the cost of developing the reserves may increase threefold to $15 billion and that the expansion project will depend on board approval of the final investment.

Opposition Leader Martin Hamilton-Smith says the report shows the Government is putting too much faith in a mining boom.

"BHP says in its own words that there is a great deal of uncertainty about the size, cost, timing and eventual configuration of the entire Roxby Downs project," he said.

"Now, I think they're sobering words from the United States, the Premier needs to hear them, and we need to ensure that we do not put all our eggs in this basket."

Mineral Resources Minister Paul Holloway says the report simply indicates it is a complex operation.

"What BHP are obviously doing is looking at the best way that they can develop what is really one of the largest ore bodies in the world," he said.

"What does it say about an Opposition leader, Mr Hamilton Smith, and this is for the third or fourth time, has had a go trying to run down what will be one of the best projects this state has ever had."

A BHP spokeswoman would not comment on the report.

The company will deliver its Australian annual report next week.