#Official Mining Thread

[Wayno]

Another uranium mine coming soon...

They publicly state 2 years, but sooner is much more likely:

Hot prospects for Whyalla deposits

URANIUMSA says an in-situ leach mine will be operational at its Mullaquana project near Whyalla within two years.

The Adelaide-based uranium explorer said recent upgrades to uranium estimates at the site augured well for an eventual commercial operation in the area.

Managing director Russel Bluck said results at various sites across the project confirmed the drilled areas were part of a uranium district comparable to the Curnamona province that hosts the Beverley and 4 Mile uranium mines.

In May, the company announced an inferred resource at its Blackbush site of an estimated 2700 tonnes of uranium oxide.

Mr Bluck said the company was optimistic about discovering a comparable, if not better, inferred resource at other drill sites.

He said these sites, to the north and south of Blackbush, needed to be drilled before determining the best site for the proof-of-concept site.

``We have been trying to push ourselves down the road towards the proof of concept, but as part of doing that planning we have to make sure we are doing the trials on the best part of the project,'' he said.

``Our first holes into both Emubush and Bluebush are much better than the first holes we drilled at Blackbush, so we are very optimistic about what we will find.''

Mr Bluck said drilling at Bluebush and Emubush would take another four to six months and he was hopeful of reporting further upgrades.

``Our objective is to have the proof of concept up within 18 to 24 months but that is subject to results. The bigger they (deposits) are the longer they will take to prove up.''

He said the proof-of-concept mine would likely be a 50 tonne-per-annum model. The company said it would soon begin a community engagement process.

[Shuz]

What's the latest on the uranium-mine policy? I know it used to be three, but did the quota get lifted or abolished outright? There just seems to be a few prospective uranium mines around, and I fear that some may be jeopardized because of the policy - if there is one?

[Wayno]

What's the latest on the uranium-mine policy? I know it used to be three, but did the quota get lifted or abolished outright? There just seems to be a few prospective uranium mines around, and I fear that some may be jeopardized because of the policy - if there is one?

The uranium mine policy seems to have gone missing in action. Fallen into the void below the filing cabinet bottom drawer maybe?

SA & NT state govts are proactive wrt uranium mining. WA state govt lifted their ban (or is about to), and QLD govt still has a ban in place. Not sure about NSW, VIC, TAS.

The final nod for any new uranium mine sits with Peter Garrett. He says yes on a case by case basis...

Seems to me the general South Australian public does not mind uranium mining in our backyard (apart from the usual odd minority group). i'd not be surprised if the SA public agreed to nuclear power generator stations as well.

[Wayno]

Adelaide Resources, Southern Uranium form Eyre Peninsula exploration team

Nudder one. Eyre peninsula is becoming hot property.

ADELAIDE Resources has teamed up with Southern Uranium to explore for uranium on the eastern Eyre Peninsula.

Adelaide Resources said it would take an initial 60 per cent stake in the Yalanda Hill joint venture through its subsidiary Eyre Energy, but Southern Uranium can increase its equity to 60 per cent by spending $250,000 over two years.

Shares in both the companies surged on the news, with Adelaide Resources up 15 per cent to 19.5c by 11:40 AEST and Southern Uranium up 10 per cent to 11c.

The companies will explore areas on the eastern part of the Eyre Peninsula for uranium and other mineral deposits. Previous work in the area has revealed a large number of uranium anomalies, Adelaide Resources said.

The joint venture was in line with the company's policy of focusing on gold and copper, while seeking third-party funding to look for uranium, Adelaide Resources managing director Chris Drown said.

Southern Uranium managing director John Anderson said the Eyre Peninsula was emerging as a new exploration destination, with uranium discoveries at Mullaquana and Wilcherry

[UrbanSG]

From the Australian Mining website:

South Australia's surge continues
14 September 2009

South Australia has reversed the downturn in mineral exploration spending – rising by 16.1% in the June quarter.

Australian Bureau of Statistics data shows total spending on mineral exploration rising to $41.8 million, up from $36 million during the previous three-month period, with combined minerals and petroleum expenditure for this financial year is $332.9 million.

Engineering construction activity in the state has also surged 35% in South Australia in 2008/09, according to BIS Shrapnel’s recently released Engineering Construction in Australia, 2008/09 – 2022/23 report.

According to the report, the surge was driven partly by electricity, mining and heavy industry construction (Prominent Hill and Jacinta-Ambrosia projects).

According to BIS Shrapnel, accelerated rail projects and work on the Adelaide Desalination Plant will help drive engineering construction activity higher over next two years, with the outlook beyond that very much dependent on the timing of the proposed Olympic Dam expansion.

Australia’s total mineral exploration expenditure rose by $80 million or 19.8% in the June quarter.

SA was recently named the 5th best ranked mining jurisdiction in the world for resource investment in the Resource Stocks’ 2009 World Risk Survey.

Minister for Mineral Resources Development Paul Holloway said, “Unlike other states, South Australia has not experienced any mine closures as a result of the global financial crisis and mining projects are continuing to proceed toward development and full operation.”

“During the next 12 months, a further four to five mines are expected to be approved in South Australia, building on the 11 mines currently operating in this State.”

[Wayno]

ODX is declared bigger again

Another 25% increase in size, mine life extends by 10+years. Simply amazing stuff..

From bloomberg

BHP Billiton Boosts Olympic Dam Reserve Estimate 25%
Sept. 15 (Bloomberg) -- BHP Billiton Ltd., the world’s largest mining company, increased the estimated ore reserve at its Olympic Dam copper, gold and uranium mine by 25 percent.

Proven and probable reserves increased to 589 million metric tons at June 30, Melbourne-based BHP said in its U.S. annual report. That compares with last year’s estimate of 473 million tons for the world’s biggest uranium deposit and fourth- largest copper lode.

A proposed expansion at the mine in South Australia may cost $15.9 billion, Morgan Stanley analysts said in a Sept. 9 note. The expansion would take 11 years to build and increase copper output almost fourfold to 750,000 tons a year, boost gold production eightfold and uranium by almost fivefold, according to today’s annual report.

The reserve increase boosts the estimated mine life to 54 years, up from last year’s forecast of 43 years, BHP said. The gain is “due to additional mineralization being available for conversion to probable reserves,” the company said.

[UrbanSG]

From adelaidenow:

Iluka ahead in time; below budget
CHRISTOPHER RUSSELL, BUSINESS EDITOR
September 15, 2009 08:30am

IF the stars above the Nullarbor stay favourably aligned, South Australia's next major mine will be operating before the end of this year.

"We've got a pretty fair chance of starting before Christmas,'' the South Australian head of Iluka Resources, Hans Umlauff, said of the company's mineral sands project in the state's Far West.

If Iluka achieves this goal, it will have built its mine nearly six months ahead of schedule and up to $20 million below its budget of $420 million.

It will be a remarkable achievement in an extremely remote part of the state and forges new frontiers for the mining industry.

It is the first mine to be built within a regional reserve - under stringent environmental guidelines - and signals the opening up of a new mining province for the state, the Eucla Basin northwest of Ceduna.

The mine, Jacinth-Ambrosia, is 85 per cent complete with components commissioned as they are built.

Construction proceeded rapidly after Iluka received a mineral lease in July last year and the company set a target of opening in the first half of 2010.

"Urgency has been a driver,'' said Mr Umlauff, Iluka's general manager, SA development and project management.

"There's always pride in finishing a job on time but there are some real advantages for us to be able to have the project finished as quickly as we can.''

The earlier you finish, the less it costs. There's also a real focus on building a business, not just a collection of equipment.

"The business has to be sustainable, we're looking for a very low-cost operation.

"This is the flagship operation for Iluka for the next 10 years plus.''

Jacinth-Ambrosia will become the world's largest supplier of the mineral zircon, used in ceramics and tiles, and is expected to enjoy surging demand from the urbanisation of China and India.

Mineral Resources Development Minister Paul Holloway said Jacinth-Ambrosia was the first of several prospects targeting ancient sea beaches for heavy minerals.

"The prospects are that the Eucla Basin will be a major new province and become the centre of Australia's mineral sands industry for the next 50 years,'' he said.

"There's Tripitaka, Gulliver's and a whole lot more prospects once this operation is running.''
Ceduna mayor Allan Suter said Jacinth-Ambrosia had given a tremendous boost to the local economy and been welcomed by the community.

"It's insulated us to some degree from the global recession,'' he said.

"Iluka has been spending serious amounts of money in the area.

"They've employed a lot of local businesses as subcontractors.''

Iluka expects to come in under the amount budgeted by its board. There's not too many mines these days that can say that,'' SA Chamber of Mines and Energy chief executive Jason Kuchel said.
Mr Umlauff said the economic downturn had actually helped by giving Iluka ``the opportunity to drive some good bargains''.

The last major piece of equipment is a mining unit plant built in WA and scheduled to arrive before the end of this month.

The plant is a trap into which the ore body sands are bulldozed and from which ore is then pumped to the processing plant as a slurry.

Building the mine had been a challenge, Mr Umlauff said.

"At the time we started, there was absolutely nothing here,'' he said.

"Our remoteness has actually been quite a big burden. Half of our capital cost is in infrastructure - roads, water, an airfield, camps, communications.''

Iluka has sought local firms as contractors rather than multinationals where possible.

These include Lucas Earthmovers from Brighton for civil works, Kermans from WA for mechanical and Robin Johnson Engineering from Morphettville for electrical.

Building the mine is a partnership between Iluka and global engineering firm Parsons Brinckerhoff through its Adelaide office.

Mining has been contracted to Wayville company Exact Mining and Adelaide's Built Environs has made a storage facility at Thevenard from where concentrate will be exported to Iluka's existing WA processing plant. Burton-based Osmoflo runs the on-site desalination plant and the water pipeline was laid by BJ Jarrad of Royal Park.

An unexpected obstacle in laying the pipeline to the borefield was the one problem which threatened to derail the project. Half way to the borefield, limestone rock was discovered just below the surface instead of the soft sands covering the rest of the area.

While this slowed progress, blasting of the rock cleared a path.

"That was the one moment we had doubts we could do this,'' project manager Allen Cauvin said.

[UrbanSG]

From adelaidenow:

Copper Range zooms higher
CAMERON ENGLAND
September 16, 2009 12:20pm

COPPER Range Resources shares are 60 per cent higher today on news of iron ore potential at its Caltowie and Gladstone projects in the Flinders Ranges.

The examination of an 11-year-old drilling intercept found a 25m section containing 46.4 per cent iron. The company's shares jumped as high as 5.3c in early trade before settling back to 4.2c, up 55 per cent, on heavy volume.

The prospects, near Hawker, cover the same area as some of BHP's first iron ore operations at Hicks Quarry, which was worked between 1896 and 1902.

The company will now do a gravity survey over the area before a drilling program to start before the end of the year.

[rhino]

From adelaidenow:

Copper Range zooms higher
CAMERON ENGLAND
September 16, 2009 12:20pm

COPPER Range Resources shares are 60 per cent higher today on news of iron ore potential at its Caltowie and Gladstone projects in the Flinders Ranges.

The examination of an 11-year-old drilling intercept found a 25m section containing 46.4 per cent iron. The company's shares jumped as high as 5.3c in early trade before settling back to 4.2c, up 55 per cent, on heavy volume.

The prospects, near Hawker, cover the same area as some of BHP's first iron ore operations at Hicks Quarry, which was worked between 1896 and 1902.

The company will now do a gravity survey over the area before a drilling program to start before the end of the year.

The map with the article in today's Tiser shows the location being just north of Gladstone, south-east of Laura, nowhere near Hawker!

[Wayno]

Can someone with defence knowledge about Woomera please add to this conversation thanks in advance...

The Woomera defence range covers ~13% of SA's outback (yes a freakin' massive area) and includes many excellent mining prospects. The Fed Govt (upon request of the Dept of Defence) have this year twice rejected large chinese investment in mines located in the precinct. At the same time, the Feds & DoD happily allow largely chinese owned mining companies to search for minerals in this area! wtf?

woomera-range.JPG (27.45 KiB) Viewed 2660 times

Mike Rann recently wrote to Kevin Rudd asking for the decision to be overturned. No response yet i believe. Obviously this situation presents as a handbrake on SAs economy. I think we'll hear more about this in coming months, and I would not be surprised if the woomera defence perimeter gets adjusted to accommodate the more prized mines. The range has already halved in size since the 1940s.

This is the latest rejection - the mine is worth $18billion dollars *sigh*

http://www.news.com.au/adelaidenow/stor ... 55,00.html

WESTERN Plains Resources' iron ore project near Coober Pedy has suffered a major blow with the Department of Defence against Chinese investment in it.

The project, potentially worth $18 billion, is located at Hawks Nest, a site within the Woomera Protected Area.

Western Plains has signed a deal with Wugang Australian Resources, a division of Chinese giant Wuhan Iron and Steel (WISCO), to invest $45 million to help fund a feasibility study into the project.
However, Western Plains told the stock exchange today it had received a letter from Defence saying it would not support an application to the Foreign Investment Review Board the investment.

"The proposed joint venture at Hawks Nest would not be compatible with Defence's activities at the Woomera Protected Area on safety, operational and national security grounds,'' the Defence letter says.

"Defence therefore cannot grant the level of access to Hawk's Nest required by (Western Plains).''
The veto echoes Defence blocking MinMetals' bid to take over the Prominent Hill mine owned by OZ Minerals earlier this year.

The share price of Western Plains has slumped following the ASX announcement - down 12.5 per cent to 28c at noon today.

The miner has reacted angrily to the letter saying it is perplexed that previous co-operative relations with Defence have been shattered.

"The content of the letter is an abrogation of undertakings by Defence officials to continue discussions with WPG, the latest undertaking having been at a meeting on 26 August, and reaffirmed in subsequent telephone discussions,'' the company said.

The miner notes that Hawks Nest is 180km from the Woomera range and 800km from Pine Gap.
It says it has offered measures to address safety, operational and national security issues that might arise by being in the Woomera Protected Area.

"WPG believes that Defence's decision is a gross overreaction to the issues that may be of legitimate concern to Defence, and that Defence's concerns are capable of being resolved by renewed constructive dialogue between the parties acting in good faith,'' the miner said.

"WPG further believes that the Commonwealth should take into account a broader range of issues than those identified by Defence.

"National economic development, job creation, Commonwealth and State revenues, security of mining tenure, foreign policy and foreign investment, are all issues that should be weighed by the Commonwealth.''

[Wayno]

Article from PIR website citing Minister Holloway's disapointment about Woomera precinct limitations:

Minister for Mineral Resources Development Paul Holloway said today he was concerned by reports the Department of Defence has decided not to support an application by the Hawks Nest iron ore mine for foreign investment approval.

Mr Holloway says the South Australian Government believes it is possible for the Department of Defence and mining companies such as Western Plains Resources to reach a mutually agreed risk management approach to operating within the Woomera Prohibited Area.

“The Rann Labor Government has worked hard in the past seven and a half years to establish South Australia’s international reputation as a relatively risk-free destination for investment in the resources sector,” he says.

“We will be seeking for the Department of Defence to return to the negotiating table with Western Plains Resources with a view to resolving these issues relating to Hawks Nest.”

“The South Australian Government believes greater certainty for investors could be easily achieved if a framework of acceptable practices were adopted that allow defence operations and mining to co-exist in this highly prospective area.

“The continuing development of mining operations will be a key factor in the future prosperity of this State.”

Mr Holloway pointed out the WPA covers some 127,000 square kilometres, or some 13% of South Australia, in which there are now more than 120 active exploration leases and two successfully operating mines at Challenger and Prominent Hill.

“It is unacceptable and certainly not in the national interest for an area of this size with some of the most prospective land in the world to be quarantined from mining operations,” he says.

[Wayno]

ODX now exporting Uranium

This is great news, and another step towards outright justification for the open-cut expansion project...

[edit] i wonder which port was used to export the uranium? all very quiet...

http://www.theage.com.au/business/bhp-s ... -gcrw.html

SOUTH Australia's outback is plugged into the forecast surge in uranium demand from China with BHP Billiton's first shipment of the radioactive material from Olympic Dam mine to unnamed Chinese customers.

BHP would not give details on the shipment, which was made possible by the 2006 agreement between the former Howard government and Beijing on a nuclear safeguards pact. The first shipment from Olympic Dam follows that made by the Rio Tinto-controlled Ranger mine in the Northern Territory last year. Both shipments are nevertheless ahead of the timing initially envisaged when the safeguards pact was signed. At the time, first shipments to China were not anticipated to occur until 2010.

China is building 13 nuclear reactors and has been the biggest buyer of uranium on spot markets in readiness for the commissioning of the power plants. Demand there was tipped to eventually grow to 20,000 tonnes of uranium annually.

BHP's first sale from Olympic Dam comes before a planned expansion of the operation. Although the prime revenue earner is copper, BHP has to find a home for the additional uranium that will come with the expansion.

Annual capacity at Olympic Dam is rated at 235,000 tonnes of copper, 4500 tonnes of uranium and 100,000 ounces of gold. Fully expanded, the mine's annual capacity will grow to 750,000 tonnes of copper, 19,000 tonnes of uranium and 800,000 ounces of gold.

[skyliner]

On the news on ABC TV 2 minutes ago (eastern standard time 2.02PM) - mistakenly tabled document in fed. gov't speaking of significantly increasing uranium exports to China from Olympic Dam. (Site filmed for TV).

Bodes well for the expansion as China is such a huge user of uranium and plans to build many more nulear power stations.

Wayno - what do you know of this?

SA - STATE ON THE MOVE

You might remember this Wayno in the context of your last post.(The ABC TV 2 info from 14/5/09)

SA - STATE ON THE MOVE

[Wayno]

On the news on ABC TV 2 minutes ago (eastern standard time 2.02PM) - mistakenly tabled document in fed. gov't speaking of significantly increasing uranium exports to China from Olympic Dam. (Site filmed for TV).

Bodes well for the expansion as China is such a huge user of uranium and plans to build many more nulear power stations.

Wayno - what do you know of this?

You might remember this Wayno in the context of your last post.(The ABC TV 2 info from 14/5/09)

yep - I do remember that. Turned out to be true, and much sooner than i could have imagined!

[AG]

Green light for Port Lincoln mining project
Article from: The Advertiser
CAMERON ENGLAND
October 06, 2009 12:01am

A CONTROVERSIAL plan to export iron ore from Port Lincoln, opening the way for the region's first new iron ore mine in a century, will today receive State Government approval.

Urban Development and Planning Minister Paul Holloway will sign off on Centrex Metals' plan to export 1.6 million tonnes of iron ore through Port Lincoln for a period of 10 years.

The decision allows for the construction of a bulk materials handling facility in the city, a move that is sure to incense the local aquaculture industry, which has lobbied strongly to stop it going ahead.

The appproval signals the start of a new era in mining for SA as the first of a group of small companies with viable iron ore projects.

Centrex says the mine, 30km southeast of Lock, on the Eyre Peninsula, will inject $70 million into the regional economy each year, creating 120-150 full-time jobs and another 360-450 indirect jobs.

The Government said it was confident the project could operate safely within strict environmental controls.

"WHILE there has been local opposition to the project including concerns about the potential impact on the aquaculture industry, I am confident all environmental considerations have been taken into account in the conditions imposed on the development," Mr Holloway said.

"Mining and the aquaculture industry are both important to the economic future of South Australia and can co-exist in Port Lincoln through the safeguards imposed by the approval conditions."

The Australian Southern Bluefin Tuna Industry Association has strongly opposed Centrex's plan, saying it risked toxic phytoplankton outbreaks caused by iron ore falling into the water.

The industry is also concerned about the impact of Port Lincoln's clean, green image being tarnished.

Hagen Stehr, chairman of Clean Seas Tuna - a company employing about 200 people – has even threatened to move his operation to Mauritius if the Centrex plan goes ahead.

Centrex managing director Gerard Anderson has said previously the tuna industry association had selectively interpreted CSIRO data.

"Sampling endorsed by the Environment Protection Authority was undertaken to test whether or not the addition of (iron ore) would stimulate phytoplankton," the company said.

"That testing proved the addition of (iron ore) in amounts up to 10 times the worst-case dust losses as determined by CSIRO, concluded that there was zero change in phytoplankton number or growth, as a result of dosing with either Wilgerup (iron ore) or soluble iron."

Mr Holloway said 12 conditions had been imposed on the development, including:

A limited life of 10 years for the project.

UNLOADING of rail cars must not occur before 6am or after 10pm.

THE facility must be designed to ensure no visible iron ore dust is emitted at any stage of operations.

A MARINE monitoring program must be set up within three months.

SURFACE testing must also be done to measure iron ore levels in the area.

The Wilgerup project is designed to provide Centrex with early cash flow, to help fund its greater ambitions on the Eyre Peninsula.

This includes two five million tonne per year iron ore mines, being examined in a $186 million joint venture with Chinese company Wuhan Iron and Steel Corporation.

By the time these mines are ready to operate, Centrex hopes to have built a new bulk commodities port at Sheep Hill, northeast of Tumby Bay, where the company has bought 91ha of beachfront land.

The mining industry has also been lobbying the State Government for a bulk commodities port at Port Bonython, 35km northeast ofWhyalla.