#Official Mining Thread

Developments in Regional South Australia. Including Port Lincoln, Victor Harbor, Wallaroo, Gawler and Mount Barker.
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Wayno
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Re: #Official Mining Thread

#526 Post by Wayno » Tue Dec 09, 2008 1:47 pm

Ore out of Port Adelaide

http://www.abc.net.au/news/stories/2008 ... rthandwest
A mining company in northern South Australia says it may consider exporting from Port Adelaide while a deep-sea port is being developed on the Eyre Peninsula.

Western Plains Resources says this would allow it to start exporting more than two million tonnes of iron ore - a year ahead of the proposed port's completion in 2011.

The company's executive chairman, Bob Duffin, says the move would require minimal infrastructure investment and would mean mining royalties stay in South Australia.

Mr Duffin says using Port Adelaide is only viable in the short-term.

"It is designed principally as a facility for handling containers rather than bulk commodities so it's not an ideal solution, but it is quite frankly the only solution that we have in front of us as a short-term opportunity," he said.
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Re: #Official Mining Thread

#527 Post by Wayno » Tue Dec 09, 2008 3:33 pm

Party time in 2009!

Got a shovel and want to get fit? The SA Govt is opening up a massive area of acreage for petroleum exploration in 2009. See image below. This will certainly create a flurry of exploration initiatives!
2009-petroleum-acreage.JPG
2009-petroleum-acreage.JPG (109.6 KiB) Viewed 1584 times
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Re: #Official Mining Thread

#528 Post by frank1 » Tue Dec 09, 2008 4:48 pm

The mining news keeps getting better.........who would of thought 10 years ago that SA would become one of the main focal points of mining activity :mrgreen:

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Re: #Official Mining Thread

#529 Post by skyliner » Sun Dec 14, 2008 3:07 pm

Mattblack noted that WA was log jammed with regard to exploration. and is quite unattractive to mine developers. :D By contrast, SA ranks VERY highly on a world level with a strong governmental support and a streamlined tracking sytem through all the red tape - organised years ago and paying off now. We are well placed guys in the minerals commodities scene.

BTW - thanks Wayno for all the updates. I have been tracking through the AFR but have not been able to access a computer for 18 days. I confirm all your findings. :D :D

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Re: #Official Mining Thread

#530 Post by Wayno » Sun Dec 14, 2008 4:12 pm

skyliner wrote:BTW - thanks Wayno for all the updates. I have been tracking through the AFR but have not been able to access a computer for 18 days. I confirm all your findings. :D :D
thanks for keeping me honest ;-)

i must say there has been a mix of good & bad news on the mining front for the last few months. Not that i'm worried at all; the volume of good news easily outweighs the volume of bad news, and even the media (local and interstate) is having troubles knocking our prospects. Noone ever said the road to riches would be smoothly paved...
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Re: #Official Mining Thread

#531 Post by monotonehell » Sun Dec 14, 2008 6:36 pm

How's the China slowdown, reported last week, factoring into all this? I haven't seen any commentary on it other than a few economists' guesses (and we all know that economists are only good at explaining why their predictions weren't true ;) ) Also on that point, I don't understand why those same reports all contained people being surprised, I thought the flow on effects were well understood... Rest of the World stops buying Chinese value added products, China needs less raw materials, China buys less raw materials from us.
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Re: #Official Mining Thread

#532 Post by Wayno » Mon Dec 15, 2008 8:56 am

monotonehell wrote:How's the China slowdown, reported last week, factoring into all this? I haven't seen any commentary on it other than a few economists' guesses (and we all know that economists are only good at explaining why their predictions weren't true ;) ) Also on that point, I don't understand why those same reports all contained people being surprised, I thought the flow on effects were well understood... Rest of the World stops buying Chinese value added products, China needs less raw materials, China buys less raw materials from us.
If you lined up all the world's economists end-to-end, you still would not reach a conclusion ;-)

I'm not knowledgeable enough on economics to comment about the short term, but the simple fact that tens of thousands of asians become urbanites each week (with the trend due to continue for many years) can only be good news for our mining industry.

In actual fact, i've heard that BHP is quietly happy with about the short-term resource slowdown as it releases much of the people shortage pressures in Australia, and will enable them to more readily recruit and bring their large operations (such as ODX) up to speed in a more timely manner.
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Re: #Official Mining Thread

#533 Post by skyliner » Mon Dec 15, 2008 12:33 pm

Very true Wayno - again traced via AFR. The big picture - ODX is not shelved (like some ore projects are in WA) ) but is still on BHP agendas albeit later than we wanted. The good news - the demand is increasing for uranium. (unlike with steel) 15% of all world power is now generated by nuclear methods and as the urbanisation of China proceeds at a rapid pace much energy will be needed - from us of course :wink:

As you say Wayno, the good news far outweighs the bad.

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Re: #Official Mining Thread

#534 Post by Wayno » Wed Dec 17, 2008 4:34 pm

Mining industry related education is important

Good example of collaboration between govt, industry and education. Certainly will result in good $$$ for the graduates!

http://minerals.pir.sa.gov.au/press_and ... _from_2009
Adelaide will soon be home to another prestigious international university campus – with University College London to offer courses in Adelaide from next year.

Premier Mike Rann has signed an agreement with University College London (UCL) which will see a campus established in Adelaide to offer executive education programs in 2009 followed by a two-year Masters degree in Energy and Resources for up to 60 students beginning in 2010.

The UCL School of Energy and Resources, Australia will be a collaboration between the university and the State Government while Santos will make a $10 million contribution to the school through funds for scholarships, research and the sponsorship of a professorial chair.

Premier Mike Rann said this is the first time UCL has offered a degree program outside of Britain, and the first time British degrees have been offered in Australia.

“UCL enjoys a place in the top 10 world university rankings so its decision to set up here in Adelaide reflects our city’s reputation as Australia’s ‘university city of the future’,” Mr Rann said.

“And this partnership with SANTOS is the biggest dividend so far from the company’s $60 million Social Responsibility and Community Benefits fund – a key part of our agreement to lift their 15 percent share cap which came into effect from November 29th.

“I am delighted that SANTOS is backing this great coup for Adelaide. It’s a partnership that involves a growth industry building the skills we need for the future.

“UCL’s credentials in science, energy and resource management are second to none, complementing our development of our immense resources in uranium, geothermal hot rocks, copper and other minerals.

“South Australia is an ideal location for UCL because our state continues to lead the nation in renewable energy and we are also taking advantage of the impending expansion of the mining sector, and the University’s presence will help build the skills we need to take advantage of the mining boom.

“UCL is the third international university to establish a permanent presence in Adelaide following the arrival of Carnegie Mellon in 2006 and Cranfield in 2007.

“Recently released Australian Bureau of Statistics figures show that international education now ranks as the State’s biggest service export and the fourth biggest export earner overall.

“The latest figures show that our annual export income from this industry is $741 million this year, up by 16.5 per cent over the previous year, and the sector supports more than 3,800 local jobs.

“Adelaide has hosted more than 27,000 overseas students this year – an excellent result when you consider that the figure was just 11,000 in 2002.”

The UCL School of Energy and Resources will be located in the historic Torrens Building, alongside Carnegie Mellon Heinz School Australia and Cranfield University’s Business Development Centre in Victoria Square.
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Re: #Official Mining Thread

#535 Post by Wayno » Wed Dec 17, 2008 4:44 pm

Aboriginal Heritage and the Mining Industry...

I'm know this sounds sarcastic, but the SA Govt only reviews aboriginal heritage acts for selfish reasons - see the deeply buried bullet-points highlighted in the article below. IMHO, this exercise is most likely a precursar to several more imminent (and hopefully very large) mining/energy industry announcements in SA...

http://minerals.pir.sa.gov.au/press_and ... e_reviewed
Aboriginal Affairs and Reconciliation Minister Jay Weatherill has announced a review of the Aboriginal Heritage Act to better protect Aboriginal culture and heritage.

The review will involve comprehensive consultations with the Aboriginal community and other industry and community groups across South Australia.

“We need to create stronger recognition of Aboriginal ownership or custody of their heritage, greater certainty and timeliness for parties involved in heritage issues and a framework for promoting agreement-making,” Mr Weatherill said.

The review is the third significant initiative to reform Aboriginal Affairs policy in as many months.

Mr Weatherill announced reviews of service delivery and governance on the APY Lands and the Aboriginal Lands Trust Act in October and November respectively.

“Aboriginal heritage is a unique part of South Australia’s history, and all South Australians have a stake in how that heritage can be protected into the future,” Mr Weatherill said.

A need for reform has been expressed by Aboriginal people and industry groups.

“Aboriginal people have long advocated for greater participation in decision-making about heritage – and industry groups are increasingly recognising the importance of good relations with Aboriginal people connected with the land,” Mr Weatherill said.

In addition, a number of changes have been made to South Australian policy and legislation that have affected Aboriginal heritage legislation since 1988, including the enactment of the Native Title Act 1992 and the introduction of legislation that takes an integrated approach to land management and use.

A scoping paper has been released which sets out the guiding principles that will underpin the review:
  • Recognising Aboriginal custodianship of cultural heritage;
    Creating a strong framework for long-term protection and management of Aboriginal heritage;
    Enabling Aboriginal negotiation of agreements about heritage;
    Embedding Aboriginal heritage considerations into the development and land management process;
    Creating timely and effective processes;
    Creating certainty for all parties;

    Complementing the Native Title Act 1992
“The scoping paper sets out some information and ideas about reform,” Mr Weatherill said.

“The review provides an opportunity to express views, develop ideas and have wide ranging discussion and debate so that we can develop legislation that is innovative and looks to the future.”

Following an initial consultation period, the results of that consultation will be compiled and analysed, with a position paper released by the government in the second half of 2009.

Further consultations will then be undertaken, out of which draft legislation will be developed.

The scoping paper can be downloaded from the Department of Premier and Cabinet website at http://www.premcab.sa.gov.au
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Re: #Official Mining Thread

#536 Post by Wayno » Thu Dec 18, 2008 10:25 am

More China investment in SA...

Another example of china investing in the SA mining industry. We'll see many more of these announcements over the coming 2-3 years. Good news for all.

http://www.abc.net.au/news/stories/2008 ... ion=justin
Chinese steel company to invest in SA

Adelaide-based mining company Centrex Metals has announced a major Chinese steel producer is to take a half share in its South Australian mining tenements. The Wuhan Iron and Steel Group will invest up to $180 million for the share in selected iron ore projects on Eyre Peninsula.

It will also take a strategic 15 per cent direct stake in Centrex, for around $10 million.

Centrex says the Chinese company will also work to jointly develop a deep water export port on Centrex-owned land near Tumby Bay, on Spencer Gulf.
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Re: #Official Mining Thread

#537 Post by rhino » Fri Dec 19, 2008 8:41 am

A bit more about the Centrex/Wuhan deal from Adelaide Now:
Centrex Metals, WISCO in $180m partnership
SARAH MARTIN
December 18, 2008 10:01am

CHINA's third largest steel company, Wuhan Iron & Steel, will invest up to $180 million in South Australian iron ore projects owned by Centrex Metals.
The deal, announced to the Australian Stock Exchange this morning, will give Wuhan Iron & Steel Group Co (WISCO) a 50 per cent share in five Centrex projects in the Eyre Peninsula.
WISCO will also take a 15 per cent stake in the company at a cost of $9.7 million.
Shares in Centrex Metals were down 2c, or 11 per cent, to 20c.
Centrex chairman David Lindh said the deal would allow the company to fund its mining and exploration developments in the Eyre Peninsula.
Another Chinese state-owned steel maker, Baotou Iron & Steel Group, has a 10.12 per cent stake in Centrex.
"This is a landmark, high integrity agreement... and is a company maker for us in every sense,'' Mr Lindh said.
"WISCO is committed to the rapid development of the Eyre Penisnsula deposits,'' he said.
"The agreement also sets up a potential long-term relationship of substance that will significantly grow Centrex while evolving Eyre Peninsula as a genuine new contributor to Australia's iron ore export capability."
WISCO, based in the Chinese province Hubei, is China's third largest steel group with an annual capacity of 30 million tonnes of steel.
Under the agreement, WISCO will participate in the development of five projects in the southern part of Eyre Peninsula in the Port Lincoln - Tumby Bay region.
It will involve the companies forming an equally held joint venture to develop several new iron ore mines and a deep water export port at Sheep Hill, near Tumby Bay on the Eyre Peninsula.
SA currently has no port that can handle large Cape-sized vessels, required for bulk mineral commodities.
The agreement is expected to be formalised by March next year, subject to government approvals.
As part of the buy-in, the Chinese investment will see Centrex paid $59.5 million cash once all necessary government consents and permits have been received. Centrex will receive a further $30 million unconditional cash payment 12 months later.
A non-refundable deposit of $500,000 will be paid to Centrex by WISCO by the end of this month.
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Re: #Official Mining Thread

#538 Post by skyliner » Sat Dec 20, 2008 10:42 am

So is the overall iron ore production increasing again in SA. I remember it all came from around Whyalla only once.What is still operating around there? :mrgreen:

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Re: #Official Mining Thread

#539 Post by Wayno » Sat Dec 20, 2008 11:46 am

skyliner wrote:So is the overall iron ore production increasing again in SA. I remember it all came from around Whyalla only once.What is still operating around there? :mrgreen:
Yes, SA iron ore production has increased in recent years, with further expansion plans out to 2010. The best way to visualise is via this map where each blue square represents an iron mine (active, prospective, historical), with many centred on the eyre peninsula (hence the tumby bay port proposal), and several up near coober pedy as well...
mining-activity-map.JPG
mining-activity-map.JPG (226.36 KiB) Viewed 1822 times
As you can imagine, if a deep port is built at Tumby Bay, the Eyre Peninsula mining industry will go gangbusters!!!
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Re: #Official Mining Thread

#540 Post by skyliner » Sat Dec 20, 2008 6:04 pm

Thanks Wayno - makes Tumby Bay V significant!

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