#Official Mining Thread

[Wayno]

And a roadmap for further expansion of mining in Far North SA...

the RDAFN Roadmap is available here.

A ROADMAP to help prepare for the rapid escalation of the outback mining industry has been released.

Regional Development Australia Far North has brought out the roadmap in anticipation of the dramatic increase in mining activity expected in the outback over the next decade.

The Far North's mining industry is expected to come of age in that time with 22 of the state's 33 operating and developing mines already located in the region.

With the Olympic Dam expansion alone expected to produce an average annual increase of $6.9 billion to Gross State Product at full operating capacity, the region is gearing up for major change.

Regional Development Far North chairman Jennifer Cleary said it is planning for the mining industry to partially follow the trajectory of what has happened in Western Australia.

"We think South Australia is at the beginning of that with our region probably where Western Australia was 15 years ago," Ms Cleary said.

The Far North has 10 of the 16 operating mines in SA and 12 of the 17 developing mining projects in an area of 800,000 square kilometres that comprises 80 per cent of the state.

The Far North Regional Roadmap & Strategic Plan 2010-2013 provided a good picture of the area which it believed hadn't been done previously, Ms Cleary said.

"It brings it all together and it will help those external to our region to better understand the challenges we face," she said.

"It can be used by those seeking to invest in the region and also by the Federal and State Governments."

Ms Cleary said the exciting level of mining development would produce some positive economic benefits for the state, but the Far North wanted to see some of that benefit stay in the region.

She said the region was very keen to work closely with the mining industry to ensure the various communities benefitted from the increased activity.

"One of the things that can happen with mining is it can impact on other industries," she said.

"There are lessons to be learned with one that sticks out being Ravensthorpe in Western Australia and the need to be careful of sticking all your eggs in one basket.

"We also need to be careful of thinking that mining will be the be-all and end-all and to look at the balance between the economic and social aspects of mining."

Ms Cleary said she would like to see the wealth generated by mining help the Far North region to be sustainable in the long-term.

"If I have one worry it is that mining is wonderful while it is happening, but you need to plan beyond that," she said. "The road map shows the key strengths and features of our region."

[Wayno]

Lack of port 'will cost SA $33bn'

Seems we currently have a mexican standoff between the SA Govt, Flinders Ports, and the major miners.

MINING royalties potentially worth $33 billion are being blocked by the lack of a suitable Spencer Gulf port.

Flinders Ports said mineral explorers needed a way to get iron ore deposits to market or the mining royalties would be lost to the State Government.

"The biggest issue we have is how we can get potentially billions of tonnes of iron ore into ships," Flinders Ports chief Vincent Tremaine said.

Flinders estimates companies have discovered about 5.2 billion tonnes of iron ore, worth $940 billion at today's prices.

If exported, the miners would pay $33 billion royalty to the Government. "That's our money there," Mr Vincent told a forum organised by the International Cargo Handling Co-ordination Association.

Flinders needs the Government to underwrite a commercially funded development at Port Bonython, north of Whyalla.

Infrastructure Minister Patrick Conlon's spokesman said: "The Government reaffirms its position in not underwriting this project. The office of Major Projects is discussing options with industry."

Liberal MP Iain Evans said the Opposition would provide $2 million to a feasibility study on Port Bonython.

[AtD]

You would think if the project is as fantastic as Flinders Ports says it is, they'd find plenty of interest from the private sector. Am I missing something?

[Wayno]

You would think if the project is as fantastic as Flinders Ports says it is, they'd find plenty of interest from the private sector. Am I missing something?

I think Flinders Ports are whingeing because there's a risk of them being marginalised. I agree AtD - why aren't the mining sector lining up to help? Perhaps the new railway owners are already engaged with the 'major miners' (no joke intended) and will send minerals direct to NT ports? It all comes down to dollars. THen there's other port owners (such as Centrex) who are adding to their woes.

IMHO, the SA Govt prematurely sold the SA ports system. John Olsen's govt if i remember rightly. An asset must truly have business momentum, a strong degree of self-sufficiency & growth prospects before privatising - like Telstra (oh wait)...

[Wayno]

Almost bi-partisan support to debate the prospect of nuclear enrichment in SA.

SA ministers break ranks on nuclear industry

Two South Australian Government ministers have broken with Labor policy by backing further development of the nuclear industry.

SA Mining Minister Tom Koutsantonis says uranium enrichment in Australia is inevitable and his colleague Kevin Foley has gone a step further, calling for a full nuclear debate.

The danger in Japan since the earthquake and tsunami affected nuclear power supplies has ripped value out of Australian uranium stocks.

But Mr Koutsantonis has told a uranium industry conference in Adelaide nuclear fuel will eventually be enriched on Australian soil. "Enrichment is a debate we should have. We should be looking at whether or not we want to value-add down the chain for uranium in South Australia," he said.

ALP national policy flatly opposes enrichment.

SA Premier Mike Rann was quick to distance himself from his minister, saying he backed party policy.

The Greens MP Mark Parnell went further on the nuclear issue. "I think the timing of the Minister's comments today is appalling," he said.

It is not just the Greens who were surprised by the political statement. Uranium industry analyst Greg Rudd also thought the timing odd.

"No-one now is going to go out and back, for example, a nuclear power industry in Australia," he said. "They'd be stupid to do it."

Another Labor frontbencher Kevin Foley has backed Mr Koutsantonis. "We should have a full-blown debate on the nuclear industry," he said. "There is no reason why the Labor Party should shy away from a debate about our nation's future."

That has been welcome news for SA Opposition Leader Isobel Redmond, who was heavily criticised by Mr Foley for allowing a nuclear debate within Liberal ranks.

"Let's consider the options and then make an informed decision," she said.

[skyliner]

Will be interesting to see effects on ODX and SA. I think over time the picture will turn in favour to nuclear due to the added carbon tax (about $600 each i think), the fact that there is no clean coal, and that nothing else but nuclear has the capacity to match fossil fuel concerning output levels and CONSTANCY of supplies in power. Coal power causes massive, widespread pollution - nuclear can cause radioactive pollution. It's a case of the lesser of the two evils in the end.

SA - STATE ON THE MOVE

[Wayno]

Mounties to the rescue...

AN oil exploration program worth more than $52 million will soon kick off in South Australia's Officer Basin.

officer-basin.jpg (48.05 KiB) Viewed 2344 times

Canadian company Rodinia announced this week that in conjunction with its joint venture partners it will spend $C52.5 million in the lightly-explored basin in the state's far west.

The Officer Basin covers about 350,000sq/km and straddles the border of SA and Western Australia.

Earlier this month Rodinia received a deed of access to explore the land from the Department of Defence, which is necessary because one of its exploration licences lies within the Woomera Prohibited Area.

Rodinia said this week it would drill at least four exploration wells, and perhaps as many as eight, targeting oil.

It would also shoot 400km of seismic exploration.

"Rodinia has already acquired approximately 1350km of 2D seismic during the Phase III seismic program," the company told the Toronto Stock Exchange.

"To date, much of the seismic acquisition has been around Rodinia's proposed 2011 drill targets to more specifically define the structures and drilling locations where Rodinia will be drilling in the near future.

"Rodinia entered into a drilling contract with Ensign International Drilling in November 2010.

"This drilling contract includes four firm wells with the option to extend the contract to drill four additional wells (eight in total) with Ensign's Rig 16 as part of this program."

Rodinia said the rig was scheduled to be released from its current contract in the Cooper Basin in three weeks' time, after which it would be moved about 2000km to the Officer Basin.

"Rodinia will provide a further update once an actual spud date for the first well has been confirmed with a greater degree of certainty."

[UrbanSG]

BHP Billiton to hire staff for next Olympic Dam phase
BUSINESS EDITOR CHRIS RUSSELL
From: The Advertiser March 31, 2011 12:00AM Increase Text SizeDecrease Text SizePrintEmail Share

BHP Billiton will begin hiring workers for the next phase of expanding the Olympic Dam mine.

It is understood that more than 100 people will be recruited to work on detailed mine planning and other technical aspects of the project.

The mining giant's executive in charge of the project, Dean Dalla Valle, said yesterday the venture had progressed into the feasibility phase.

The move will enable a significant amount of money to be allocated to the project.

It comes ahead of the imminent public release of the Olympic Dam Supplementary Environmental Impact Statement - the company's response to more than 4000 public and government submissions to its expansion plans.

"The EIS team spent more than a year preparing answers to all the issues raised in the submissions and submitted this information along with additional studies in its SEIS which was handed to the Commonwealth for an adequacy test in December 2010," said Mr Dalla Valle, BHP Billiton's Uranium President.

"We are now awaiting permission from the Commonwealth to publish the SEIS, which will allow formal assessment of the project by the respective governments."

BHP Billiton has not been able to provide costings on expanding the copper, gold and uranium project but analysts expect it will require investment of at least $US20 billion.

The Commonwealth, South Australian and NT governments must each agree the SEIS contains adequate information before it can be published.

However, yesterday's announcement implies BHP Billiton has sufficient confidence to start the ball rolling on the next phase.

"You don't start spending money on these things without high expectations the board will consider it favourably," SA Chamber of Mines and Energy chief executive Jason Kuchel said yesterday.

Once the SEIS is published, the three governments will assess the plans for approval with the SA Government needing to legislate changes to the Act covering Olympic Dam.

[UrbanSG]

Planned Whyalla explosives factory expected to create jobs boom
Sarah Martin
From: The Advertiser March 31, 2011 12:00AM

A $350 million explosives plant is planned for a site near Whyalla to capitalise on the Olympic Dam mine expansion.

An Indian company, Deepak Fertilizers and Petrochemicals, has reached an agreement with the State Government to buy land for the 300,000-tonne-a-year ammonium nitrate explosives factory.

The project is expected to create 400 jobs for the Upper Spencer Gulf during construction and between 80 and 100 permanent jobs. But the project has sparked concern in the region that it will expose Whyalla to "dangerous" ammonium nitrate and threaten the area's sensitive marine life.

The local council has also criticised the Government for its lack of consultation, and Whyalla Mayor Jim Pollock has warned that it is "highly likely" the council will oppose the development.

Mineral Resources Development Minister Tom Koutsantonis said the Government had agreed to provide land to the company for it to undertake a three-year feasibility study into the plant. Providing it meets all regulatory approvals, Deepak will buy the land and begin building the plant in 2014.

The Government is considering giving the project Major Development Status.

Mr Koutsantonis said Technical Ammonium Nitrate manufacturing was already under way in other states and SA had the opportunity to establish its own industry.

"If we are serious about the becoming a mining state, ammonium nitrate is a key cog in that wheel," he said.

"We are the only mining state not to have an ammonium nitrate plant.

"People in Whyalla for years have been saying we need more investment in Whyalla to make sure the city doesn't die. This is one of the first big steps to make sure there is diversification in jobs for their economy."

The company will ship liquid ammonia to Port Bonython in tankers holding up to 30,000 tonnes of the product, which will be piped to a factory at a nearby 310-hectare site, where the explosives will be manufactured.

Shipping the liquid ammonia through the fragile marine environment of the Upper Spencer Gulf, where giant cuttlefish breed, has raised concern.

"The State Government just wants to use the Peninsula and the incredibly sensitive marine environment of the area as a dumping ground," Whyalla Councillor Eddie Hughes said.

He also raised concerns that a similar manufacturing plant exploded in southwest France in September 2001, killing 30 people and injuring thousands.

A Cabinet submission on the plant, obtained by The Advertiser, says the Government anticipates opposition to the project.

In a letter to Mr Koutsantonis, Mr Pollock said the council was "disappointed" the project received Cabinet approval without consultation.

"There is significant concern with what may be thrust upon our community," Mr Pollock said.

"Council has been supportive of appropriately developed and located industry at Whyalla in the past, however, with no communication or prior advice of potentially explosive industrial developments prior to formal consideration by your Cabinet, this process is likely to draw significant issues within the local and wider community."

Mr Koutsantonis said while "there will be a lot of hysteria trying to make it sound dangerous", the plant would be accepted by the "silent majority".

"I think some people will decry any development on the Peninsula but the council itself has set that land aside as an industrial zone . . . and this is about what is best for Whyalla and the state as a whole," he said.

"Wherever you put an ammonium nitrate plant, it is going to be emotive (but) the truth is it is a very safe industry we are not going to do anything that jeopardises safety."

He also emphasised the project was not a fait accompli, and extensive community consultation would be undertaken over the next three years.

"Deepak will have to assure the local community that there is no risk to the local marine life in the area," he said.

Deepak has told the State Government it intends to sell 83 per cent of the manufactured explosives in South Australia , with the expansion of Olympic Dam a key target.

A company developing a proposal for a rival plant says the projected demand for the Olympic Dam expansion was only about 88,000 tonnes of explosives a year.

AET group chief executive Ian Smith said it had investigated a co-funded plant with Deepak and its plans for a "mega plant" might fail to find enough customers in the state.

"There is not a market in South Australia for 300,000 tonnes therefore they will have to export it to a foreign country or interstate," he said.

[rhino]

BHP Billiton to hire staff for next Olympic Dam phase

BUSINESS EDITOR CHRIS RUSSELL From: The Advertiser March 31, 2011 12:00AM

BHP Billiton will begin hiring workers for the next phase of expanding the Olympic Dam mine.

It is understood that more than 100 people will be recruited to work on detailed mine planning and other technical aspects of the project.

The mining giant's executive in charge of the project, Dean Dalla Valle, said yesterday the venture had progressed into the feasibility phase.

The move will enable a significant amount of money to be allocated to the project.

It comes ahead of the imminent public release of the Olympic Dam Supplementary Environmental Impact Statement - the company's response to more than 4000 public and government submissions to its expansion plans.

"The EIS team spent more than a year preparing answers to all the issues raised in the submissions and submitted this information along with additional studies in its SEIS which was handed to the Commonwealth for an adequacy test in December 2010," said Mr Dalla Valle, BHP Billiton's Uranium President.

"We are now awaiting permission from the Commonwealth to publish the SEIS, which will allow formal assessment of the project by the respective governments."

BHP Billiton has not been able to provide costings on expanding the copper, gold and uranium project but analysts expect it will require investment of at least $US20 billion.

The Commonwealth, South Australian and NT governments must each agree the SEIS contains adequate information before it can be published.

However, yesterday's announcement implies BHP Billiton has sufficient confidence to start the ball rolling on the next phase.

"You don't start spending money on these things without high expectations the board will consider it favourably," SA Chamber of Mines and Energy chief executive Jason Kuchel said yesterday.

Once the SEIS is published, the three governments will assess the plans for approval with the SA Government needing to legislate changes to the Act covering Olympic Dam.

[Wayno]

BHP Billiton to hire staff for next Olympic Dam phase

No need for a crystal ball here. Hiring 100 or so people is not something BHP would do without being confident of receiving full approval for the ODX expansion, desal plant, etc...

[Ben]

Hopefully Adelaide based?

thats a lot of office space

[metro]

^^ Would be nice if BHP built a large office tower in Adelaide like the one they're building in Perth.

chances are they'll just have all of their office staff Melbourne

[Wayno]

Suspect most of the 100 people will be engineers, not CBD office based personnel.

[UrbanSG]

A fair number of the new jobs being advertised are Adelaide based which is good news.

After the 100+ staff reductions from the BHP Shared Services Centre on Grenfell St over the past couple of years I would guess they will just refill the emptied workstations/office space with the 100 or so new staff. I've seen a figure of around 7,500 square metres for the space BHP rents in the Grenfell Street tower currently. So if they increase staff numbers next year you would expect a lease for a new tower could be signed.

If the project gets signed off by the board early next year I would expect to see BHP increasing their office space requirement in Adelaide considerably. However it will be other companies which provide support and services to BHP that will really increase the demand for office space in Adelaide. We have already seen an IT company directly associated with BHP lease floors in Pirie Street late last year. This trend will continue if the project is signed off.