#Official Mining Thread

[Norman]

Reminds me of a Red Army slogan...

Oh Adelaide
Oh Adelaide
Is wonderful
Is wonderful
Oh Adelaide is wonderful
It's full of Beer, chicks and Football,
Oh Adelaide is wonderful

[skyliner]

Nuclear Power in Australia - To be or not to be?

In my opinion, SA should act quickly to establish a full-lifecycle nuclear power industry. Dig it up, process it, use it, and bury it again...

http://www.mineweb.com/mineweb/view/min ... &sn=Detail

Australia needs to join the nuclear energy community

Ziggy Switkowski, former head of Australia’s biggest telecommunications company, Telstra, says Australia has no choice but to consider nuclear power as part of its future energy mix.

The 34th annual Essington Lewis Memorial Lecture in Adelaide to commemorate the BHP Billiton leader who drove that mining house's move into steelmaking, was told tonight that nuclear energy must be considered if Australia is to meet its carbon reduction targets.

Dr Ziggy Switkowski is a nuclear scientist who headed the nuclear energy study for Australia's previous Prime Minister John Howard and chairs the Australian Nuclear Science & Technology Organisation. He said even if there happened to be "supersonic" progress in development of renewable energy sources, and the successful rollout of energy productivity and carbon capture technologies, nuclear power would have to be considered in the mix.

"I am concerned that the exclusion of nuclear power from our national conversation and energy debate represents a triumph of political pragmatism over good policy," Dr Switkowski said.

When it comes to generation of base load electricity - the 80% of electricity needed for round-the-clock to power our refrigerators, washing machines, plasma televisions, traffic lights and other demands must take in nuclear energy as well as coal, gas, oil and hydro-electricity.

(Three years ago when John Howard pushed for the Switkowski-led study media feedback was that a majority of Australians supported uranium mining but the pendulum swung the other way to be marginally negative on nuclear power. This feedback probably drove Kevin Rudd -later Prime Minister -- to get the Australian Labor Party to overturn its anti-growth policy for uranium mining).

In his lecture Switkowski said that If fossil fuels are excluded because they are "dirty", and the risks to hydro-electricity from water scarcity were considered, then the only available "clean option" for base-load electricity is nuclear power.

Nuclear power offers compelling arguments for deployment in Australia, including its proven 24/7 base load capacity, the country's plentiful reserves of uranium, and generating costs that compare favourably with coal and gas fired power generation.

"Deep greenhouse gas emission reductions will almost certainly prove beyond the capability of existing technologies and renewable energy platforms to deliver in the time allowed," he said.

"Our lights will start to go out as investment in clean base load energy generation stalls in an uncertain regulatory environment and the nuclear alternative is not validated.

"In a carbon-constrained future, nuclear-powered economies will exploit their cost advantages for clean energy in competing with Australian products newly burdened by embedded carbon costs."

Switkowski said 31 countries representing two-thirds of humanity currently use nuclear power to produce some of their electricity. About 15% of electricity worldwide is nuclear-generated, 23% within the OECD, and 31% of the European Union.

"Why not Australia?," he asked.

My opinion also mate - long held after frequent discussion with educators, geologists etc etc. SA is in a top position to be first off the rank. (Possibly supplying the desal plant as well).

SA - STATE ON THE MOVE

[Wayno]

Nuclear Power in Australia - To be or not to be?

In my opinion, SA should act quickly to establish a full-lifecycle nuclear power industry. Dig it up, process it, use it, and bury it again...

My opinion also mate - long held after frequent discussion with educators, geologists etc etc. SA is in a top position to be first off the rank. (Possibly supplying the desal plant as well).

i think australian public opinion is turning towards supportive nuclear power plants, but i bet nothing will happen before the next election - both major parties are too scared to even mention the "N" word, let alone advocate building nuclear plants in SA...

[skyliner]

I read in the 'Curious Mail" (Brisbane paper) today that WA is opening up to uranium mining AND that BHP is developing a large mine there. Hurry up ODX! We don't need any more competition!

SA - STATE ON THE MOVE

[frank1]

Typical. WA was sooo against uranium mining, but when they have a uranium mine they suddenly forget that attitude.

[Wayno]

Typical. WA was sooo against uranium mining, but when they have a uranium mine they suddenly forget that attitude.

Interestingly, whilst in SA we mainly accept it, their is a substantial public backlash in WA against uranium mining. The Greens have jumped at the opportunity to grab votes (i know i'm a cynic) and are pushing for *extremely* tight legislation to do with rail freight practices of what is a very low-grade uranium powder (you could roll around nude in the powder for 6 months, perhaps making some pretty uranium fairies, and still not become "radioactive").

The WA Libs are on the legislative back foot and are even proposing to ship their uranium via SA or NT ports! They are also probably anticipating a few more legal/political hurdles before things settle down. So bottom line is whilst WA has given general approval for uranium mining, and companies are permitted to "look for resources", the first productive mine will most likely be years away...

[monotonehell]

...The WA Libs are on the legislative back foot and are even proposing to ship their uranium via SA or NT ports!...

I say bring it on. We can always find some spare capacity. *cash register sounds*

[AG]

SA's $1bn clean fuel jobs bonus
MEREDITH BOOTH, CHRISTOPHER RUSSELL
November 20, 2008 12:30am
SOUTH Australia has been given a $1 billion shot in the arm with more jobs, greater investment and a new era in cutting-edge fuel technology.

Clean-coal company Linc Energy yesterday announced it would invest $1 billion to move operations to SA to develop the first of several coal-to-liquids plants in the state's north.
Linc will establish an Adelaide office with 100 permanent staff for the project, which produces ultra-clean diesel and jet fuels. A further 2000 construction-stage jobs will be created.

Following construction, at least 350 people will be employed at each of the facilities, to be built in the Arckaringa Basin between Coober Pedy and Oodnadatta.

Chief executive Peter Bond said yesterday the company had the funds to start the project following the September sale of its coking-coal plant in Emerald, Queensland, for $1.5 billion.

Brisbane-based Linc already has a 20,000-barrel-a-day underground coal-gasification (UCG) to gas-to-liquids (GTL) pilot plant in Chinchilla, Queensland.

It says it will use this technology to build several facilities in SA.

Linc's focus on SA comes after its $104 million merger with Adelaide energy company Sapex, which owned leases in the Arckaringa coal fields.

"We always knew the potential for Sapex was huge and on . . . gaining the insight of just how potentially big it is, it makes every sense to now fast track this Sapex area into the first commercial UCG to GTL operation," Mr Bond said.

"In terms of coal-to-liquids production, Linc Energy has initially located at least eight to 10 key areas capable of operating 100,000-barrel UCG to GTL facilities for approximately 60 years continuously," Mr Bond said.

"That's over one million barrels a day of oil (diesel or jet fuel) production."

SA Chamber of Mines and Energy Jason Kuchel welcomed the move. "In future we'll see SA's onshore energy reserves playing an increasing role in meeting Australia's energy needs," he said.

Technological advances as well as long-term demand driving prices, were helping make projects in remote parts of the state like Linc's become viable, Mr Kuchel said.

Mineral Resources Development Minister Paul Holloway said "this significant investment in SA will mean new jobs both in the Arckaringa Basin and in Adelaide".

With reduced red tape and supportive policies, the "record-breaking growth in exploration spending is now being gradually transformed into investment in mine development and construction", Mr Holloway said.

Linc's decision to upgrade its presence in SA follows similar moves by other mining companies wanting to be closer to the action.

Copper Range, which has leases near Olympic Dam and in the Flinders Ranges, recognised "the challenges of running an active exploration effort from the head office in Sydney" and established a presence in Adelaide and Hawker.

Sydney-based PepinNini Minerals and joint-venture partner SinoSteel opened an Adelaide office to guide operations in the Curnamona and Musgrave provinces of SA.

Linc will move drilling equipment and some engineers to SA in the next four weeks and it expects to make "significant" coal resource estimates and further developments on its oil exploration program before Christmas.

Mr Bond said Linc, which had a market capitalisation of $1.15 billion yesterday, would keep its corporate office in Brisbane for the time being because its interests were spread across SA, Queensland, North America, Uzbekistan and Vietnam.

The global search for new oil reserves and the worldwide concern about developing cleaner energy sources has shed the spotlight on the sector in recent months.

British oil and gas giant BG Group took control of coal-seam gas producer Queensland Gas Company on Tuesday, valuing the Australian company at $5.6 billion.

[Wayno]

SA's $1bn clean fuel jobs bonus

cool! 100 jobs in Adelaide and 350 jobs near coober pedy for 60+ years! Not to mention the 2000 jobs created during the construction phase...and then there's the royalties...

[mattblack]

...The WA Libs are on the legislative back foot and are even proposing to ship their uranium via SA or NT ports!...

I say bring it on. We can always find some spare capacity. *cash register sounds*

Apparently WA is so slow in processing exploration rights there are more than 1700 awaiting approval. Its a massive log jam that is putting off futher investment in the state. Its rated along with 3rd world counties as the worst place for investment.

[Wayno]

Another Deal With China

http://news.theage.com.au/business/iron ... -6fjk.html

IronClad Mining Ltd has signed a memorandum of understanding (MOU) with steel maker Wuhan Iron and Steel Corp of China to jointly fund and develop two iron ore projects in South Australia.

Wuhan, China's fifth largest steel maker, will conduct due diligence before entering into a binding agreement and has expressed acquiring a stake in IronClad.

The MOU envisages Wuhan fully funding a bankable feasibility study on the Wilcherry Hill and Hercules iron ore projects before entering into a 50:50 joint venture with IronClad to develop the projects.

IronClad shares had surged seven cents, or 53.85 per cent, to 20 cents by 1238 AEDT.

Wilcherry Hill and the adjacent Hercules iron ore deposits are 110km west of Port Bonython on SA's Eyre Peninsula.

IronClad has initiated a pre-feasibility study on the Wilcherry Hill magnetite project, which is expected to produce up to four million tonnes of iron ore per year from 2011.

Magnetite is a low-grade form of iron ore that requires intensive processing to produce a saleable product.

Chinese steelmakers and trader's have been looking to secure access to the steel making commodity, forming joint ventures or buying into share registers of a number of junior companies.

[Wayno]

Respect your elders - Age really is an asset!

This is the kind of news that will spur more SA mining exploration - Science leading industry in action!!

http://www.sciencealert.com.au/news/200 ... 477-2.html

South Australia has just moved back about half a billion years thanks to modern technology and Geoscience Australia’s geochronology team.

With the aid of Geoscience Australia’s new Sensitive High Resolution Ion Microprobe, better known as SHRIMP, the scientists have identified rocks from South Australia’s Eyre Peninsula which are around 3,150 million years old.

The Chief Executive Officer of Geoscience Australia, Dr Neil Williams, said that rocks older than three billion years are uncommon and difficult to find, and until now, such ancient rocks in Australia were thought to be restricted to areas in the Pilbara and Yilgarn regions of Western Australia.

“The discovery of rocks of similar age to those in the resource rich regions of Western Australia raises the possibility of so far undiscovered mineral resources in South Australia,” Dr Williams said.

“The newly identified rocks, which were among samples collected as part of a collaborative seismic survey by Geoscience Australia and Primary Industries and Resources SA, extend South Australia’s antiquity back another 500 million years,” he said, adding that the discovery provided another site on the list of ancient rocks, which had significant implications for establishing how the Australian continent was formed.

The rocks are remnants from the Mesoarchean era, a time on Earth when the atmosphere was unbreathable, the only life was simple bacteria and most of the Australian continent was yet to form. The rock analysed with SHRIMP is a granite from near Iron Knob about 50 kilometres west of Whyalla and forms the foundations of the Middleback Ranges where iron ore mining started in the 1890’s. Work by Geoscience Australia in collaboration with Primary Industries and Resources SA is continuing in an effort to define the regional extent of rocks of this age and obtain further clues about the geological history of the region.

Dr Williams said the discovery was made by Geoscience Australia as part of its program under the Australian Government’s Energy Security Initiative to predict where new energy and mineral resources may be located deep in the Earth’s crust.

“Within this program a series of deep seismic survey are being made in regions which are considered to have potential for significant energy related resources, such as uranium and geothermal sources and mineral deposits such as iron ore, gold, copper, lead and zinc. Investigation of surface rocks to help understand what is being revealed at depth by these seismic surveys resulted in analyses on Geoscience Australia’s SHRIMP discovering the age of the ancient rock,” Dr Williams said.

The Australian designed and built SHRIMP was commissioned earlier this year by the Minister for Resources, Energy and Tourism, The Hon Martin Ferguson, AO, MP. The instrument measures uranium and lead isotopes from tiny portions of zircon crystals extracted from rock samples to calculate the age of the crystal based on the natural decay rate of uranium to lead.

[Wayno]

3minute interview with Jason Kuchel, Chief Executive, South Australian Chamber of Mines and Energy
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The above interview is a precursar to the Dec 2-4 SA Mining Conference in Whyalla. The conference will feature:
* Government insights into the outlook for SA mining
* SA’s future economic outlook
* Operational updates from the region’s leading mines
* A snapshot into infrastructure development, power, transport and water
* Indigenous issues in SA mining
* Practical workshops on key mining industry challenges
* Updates from junior resources explorers based in SA

Hopefully some good information with flow from the conference which i can share with you all in a few days time...

[Wayno]

More Cu/Au than first thought...

It's fortuitous that many of SA's mines are not yet in full production. Many are coming online in 2010 and are expected to ride the next ramp up in resource prices. This one, Kanmantoo, just keeps on getting bigger...

JOHANNESBURG (miningweekly.com) – ASX-listed Hillgrove Resources has updated its total resource at the Kanmantoo property, in South Australia, to 32,2-million tons, at 0,9% copper and 0,2 g/t of gold.

This would place estimated resource at 292 200 t of copper and 191 100 oz of gold, showing an increase of 1 500 t of copper and 1 800 oz of gold, compared with previous resource results.

The focus of the recent drilling was to improve the resource confidence level and the first measured resources had now been defined. Hillgrove also stated that 77% of the total resource had now been converted to indicated or measured, which represented a significant increase in confidence levels.

“Kanmantoo is very well placed to be in production, to coincide with increasing metals prices that will accompany an anticipated global synchronised economic recovery. Over the past three-and-a-half years, the global resource at Kanmantoo has increased by over 300%, highlighting Kanmantoo as a major copper/gold system,” Hillgrove MD David Archer said.

The Kanmantoo deposit is located about 55 km from Adelaide, and was in the final phase of permitting and financing. A management study of the project was under way, which was designed to define the potential to increase the life-of-mine to over ten years, and to increase annual production.

The study would also incorporate the impacts from lower fuel prices, lower mining costs, and the recent changes in the copper price and exchange rates.

[Wayno]

Alive and kickin'

SA is still seen as a good bet even though the credit crunch has dampened world outlook...

http://au.legalbusinessonline.com/news/ ... tails.aspx

South Australia: the new frontier

The epicentre of Australia's resources boom might have been Western Australia but, according to Blake Dawson partner Simon Fraser, South Australia is the new frontier.

"We are firm believers in the future of the South Australian economy. We think there will be a mining boom. Although it's been in the doldrums for a while and the current economic crisis has slowed the pace of it a little bit, we believe it will happen," Fraser said.

Fraser, who specialises in energy and resources, has led Blake Dawson's expansion into South Australia. It is the first national firm to open an office in Adelaide. Fraser says commitment by the state government to infrastructure development combined with a streamlining of the approvals process has helped to make South Australia an attractive destination for junior miners, even more so than WA.

"The government and bureaucracy in WA have become tired and they are not that interested in new projects because they have so much going on," he continued. "However, in SA the government [almost] literally have their ears pulled back. There is quite a lot of focus on junior miners, and the sentiment is that junior miners are currently getting more bang for their buck in SA then they are in WA."

"The state is very keen to realise the wealth that it has in the ground. So from a lawyer's perspective that means more work," he added.

Although Fraser noted the lack of available funds necessary for drilling may stall some mining projects, the current slump in commodity prices will not be a long-term deterrent.

"Most exploration work in SA is in its early stages - it takes years to develop a project. They need to find the ore, develop up the resources, get all the approvals then build the project ... most projects are at least five to 10 years away from production ... that's outside the current commodity cycle. I would expect commodities to resume their more normal trajectory within the next two to three years. So, current commodities are not impacting people's views about how they should spend money on developing projects," Fraser explained.

"There is a strong feeling that a number of those exploration tenements will yield world-class resources of some description, so the prevailing feeling is that in the next 10 years or so there is going to be number of large projects developed in SA," he continued.