#Official Mining Thread

[Wayno]

BHP website is advertising for these roles (all ODX Uranium focused):

• Project Metallurgists
  Mining Engineers
  Costing Engineers
  Safety Superintendents
  Procurement Lead Strategist
  Hydro Metallurgists
  Construction Leads
  Project Accountants
  Metallurgical Lab Staff
  Hydrogealogy Superintendents
  Open Pit Study Manager
  Information Controllers
  HR Staff
  Open Pit Mine Planning Superintendents
  Projects Schedulers

Many of these roles will be located at Roxby Downs.

[Waewick]

that is great news - especailly for the Adelaide Property market

after a discussion with a few in the industry in relation to manufacturing in Adelaide I would suggest this state government better get it's act into gear in relation to uranium

to not build at least 1 nuclear power station (even if it is used to supply the eastern states) and an enrichment facility is folly and will cost a massive amount of jobs which couldn't have been sent off shore.

[skyliner]

Have very recently read adverts for residential estate property for sale linked to the ODX expansion in Pt Augusta. (Fin Review property section). Another very encouraging sign, mentioned before - the desal plant plans are being worked on by an engineer I know here in Brisbane. (NOT feasability plans).

SA - STATE ON THE MOVE

[mattblack]

Apparently there have been another 3 mining licences issued for the Cooper Basin. About $100 jobs and $50m over 5 years for exploration purposes.

[rhino]

According to OZ Minerals' Terry Burgess, the Carapateena deposit is worth about $30billion in today's money. Bloody huge! For a mine that big, I wonder whether we'll see another new town in South Australia's outback? Currently the nearest town is Woomera, about 60-70km away.

Tug of war for mine workers
Business editor Christopher Russell From: The Advertiser April 15, 2011 12:00AM

COPPER miner OZ Minerals is trying to poach workers from WA and Queensland for an SA mining project.

Workers waiting for shuttle flights to remote mining sites will see advertisements suggesting they move to South Australia.

The battle comes as the WA Chamber of Mines forecast yesterday its state needed to find 33,000 more skilled workers between now and the end of next year.

Queensland also needs about 18,000 new jobs for its liquefied natural gas projects, while BHP Billiton has also started recruiting for the Olympic Dam expansion, which will eventually need up to 25,000 workers.

"There is competition for people, there's no question about it," OZ managing director Terry Burgess said yesterday.

"As people are travelling through airports in coming weeks, they're going to see adverts for OZ Minerals offering the good lifestyle people can have if they live in Adelaide."

He was commenting as the company made its first formal estimate of the size of its Carrapateena deposit 130km north of Port Augusta.

Under the official industry standards - the so-called Joint Ore Reserves Committee code - OZ estimates the deposit is bigger than its flagship Prominent Hill operation southeast of Coober Pedy and positions it as SA's second biggest mine.

Mr Burgess said Carrapateena had an inferred resource of 2.7 million tonnes of copper and 3.7 million ounces of gold.

An inferred resource is only an educated guess but it is the earliest properly calculated estimate using the JORC standards.

At today's prices the deposit would be worth more than $30 billion.

Copper is selling for about $US9750 a tonne and gold for $US1450 an ounce.

OZ already is expanding the Prominent Hill operation by building a satellite underground mine, Ankata, which it will access via a tunnel from the main open pit.

Ankata construction was expected to increase the total workforce at Prominent Hill from 800 to about 950 people.

OZ expects to finalise the purchase of Carrapateena by early May. It announced last month it was buying the project from prospector Rudy Gomez and Canada's Teck for at least $US250 million.

Mr Burgess gave a conceptual timetable for Carrapateena with technical and feasibility work beginning immediately leading to mine construction starting in mid-2015.

"We are very pleased to have Carrapateena in our portfolio and also to be present in South Australia with a second project because of the support we've seen from the South Australian Government," Mr Burgess said.

He hoped the company's good working conditions would attract new recruits.

Immediately, OZ would need about 15-20 highly paid geotechnical people for Carrapateena.

OZ is confident of funding its exploration and development costs from Prominent Hill revenues.

The company also has $750 million in cash to pursue possible acquisitions.

[Will]

Considering that Oz Mineral's main assets are in SA, it is one of the few companies the state government should be actively seeking to move their HQ to Adelaide.

[skyliner]

A lot of good news in that post Rhino - but difficult in the face of reduced immigration prospects. SA has to be getting more attractive however. Infrastructure demands of the mines is becoming boggling.

SA - STATE ON THE MOVE

[UrbanSG]

Article from the Sydney Morning Herald last week:

Olympic Dam expansion passes another test
April 21, 2011

AAP

Proposals for the major expansion of the Olympic Dam copper and uranium mine in South Australia are now subject to another stage of state and federal government scrutiny.

Premier Mike Rann said the commonwealth's decision that BHP Billiton's supplementary environmental impact statement (EIS) was ready for government assessment was another major milestone for the project.

The supplementary EIS is the company's response to the almost 4200 government and public submissions to the draft EIS published in May 2009.

Advertisement: Story continues below It provides additional information and answers key questions raised during the consultation process.

Mr Rann said formal assessment of the supplementary EIS allowed the SA and federal governments to enter into the formal development assessment phase for the project.

BHP Billiton will also prepare for publishing the document, which will be made publicly available.

"This is the next stage in what is the most comprehensive and rigorous assessment ever undertaken in South Australia's history," Mr Rann said on Thursday.

"The government is committed to ensuring that every aspect of the project is subject to the most stringent environmental legislation and standards."

BHP Billiton already produces 180,000 tonnes of copper each year at Olympic Dam but will lift output to 750,000 tonnes annually if the expansion goes ahead.

Uranium oxide production will jump from 4500 tonnes to about 19,000 tonnes.

Mr Rann said in making a development decision, the government would take into account expert advice and public submissions.

The government expects to make a development decision in the third quarter of 2011.

The premier has said previously he was confident BHP Billiton would give the final approval for the expansion early in 2012.

[UrbanSG]

Further to the previous SMH article the supplementary EIS is due in 2 + weeks time:

Another tick for BHP's Olympic Dam expansion plans
Russell Emmerson From: The Advertiser
April 29, 2011 12:00AM

BHP Billiton has been given the nod to move on to the next stage of the Olympic Dam expansion project.
The Commonwealth Government last week said the proposal was "adequate" a key hurdle before the project's environmental aspects could be assessed by Commonwealth, South Australian and Northern Territory Governments.

Premier Mike Rann said the assessment of the project's supplementary Environmental Impact Statement would be a demanding process.

"This is the next stage in what is the most comprehensive and rigorous assessment ever undertaken in SA's history," he said.

"The Government is committed to ensuring that every aspect of the project is subject to the most stringent environmental legislation and standards."

The Supplementary EIS is the company's answer to more than 4000 submissions made to its original statement, released in May 2009.

BHP Billiton will now print the supplementary document, a process that is expected to take two weeks, after which it is to be made available to the public.

The State Government is expected to announce its decision by the end of September.

[fabricator]

Last night GWA announced it has signed a US $72m contract to cart ore from Wirrida to Pt. Pirie.

From GWI Website. http://phx.corporate-ir.net/phoenix.zht ... ID=1555974

Genesee & Wyoming Signs New Contract for Export Iron Ore in South Australia; Signs Related Agreement to Invest US$72 million in Locomotives and Equipment
ADELAIDE, Australia and GREENWICH, Conn., Apr 28, 2011 (BUSINESS WIRE) --

Genesee & Wyoming Inc. (GWI) (NYSE: GWR) announced today that its subsidiary, Genesee & Wyoming Australia (GWA) has signed a rail haulage agreement with a subsidiary of WPG Resources Ltd (WPG) (ASX:WPG) to transport 3.3 million tons per year of hematite iron ore from WPG's Peculiar Knob mine in South Australia.


GWA plans to operate unit trains of iron ore from a rail siding near Wirrida, South Australia, located on the recently acquired Tarcoola to Darwin rail line, to a new bulk export facility in Port Pirie, South Australia. The haulage service is expected to start in the second quarter of 2012 and continue for a minimum of five years, and it may be extended depending on the development of certain nearby iron ore deposits.

To provide the above-rail haulage service, GWA has entered into a locomotive purchase agreement to acquire nine new, 4,400-horsepower locomotives and will make certain other rolling stock and facilities investments of approximately A$67 million (US$72 million). When the iron ore mine is shipping at full capacity, GWA expects the new contract to generate total annual revenues of approximately A$50 million (US$54 million).

Both of these transactions are contingent upon the satisfaction of certain conditions precedent, including WPG obtaining final approval of two permits from the Government of South Australia related to the development of the mine and port infrastructure. It is currently expected that these two permits will be obtained by July 2011.

John C. Hellmann, President and CEO of GWI, commented, "We are pleased to be expanding our iron ore business in South Australia and look forward to providing WPG with the safest and most reliable service in the Australian rail industry. In the past three months, we have now announced orders for a total of 16 high horsepower locomotives in Australia, which is reflective of both our service commitment to existing customers and the expansion of our business with new mining customers. Australia remains a priority for GWI's investment strategy, and we are engaged in several other potential new projects."

About Genesee & Wyoming Inc.

GWI owns and operates short line and regional freight railroads in the United States, Canada, Australia, the Netherlands and Belgium. In addition, we operate the Tarcoola to Darwin rail line which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 63 railroads organized in nine regions, with approximately 7,400 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. We provide rail service at 17 ports in North America and Europe and perform contract coal loading and railcar switching for industrial customers.

Caution regarding forward-looking statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding GWI's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. The forward-looking statements are based upon management's current beliefs or expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies and third-party approvals, many of which are beyond our control. Actual results may differ materially from those expressed or forecasted in any forward-looking statements. For a more detailed discussion of such risks and uncertainties, which could cause actual results to differ from those contained in these forward-looking statements, see "Risk Factors" in GWI's Annual Report on Form 10-K for the most recently ended fiscal year. Except for the ongoing obligations of GWI to disclose material information under the federal securities laws, GWI undertakes no obligation to, and expressly disclaims any such obligation to, update or alter any forward-looking statement to reflect new information, circumstances or events that occur after the date such forward-looking statement is made unless required by law.



SOURCE: Genesee & Wyoming Inc.

[skyliner]

Can someone position Wirrida on a map on SA lines for me. Am I right in thinking the line will go from north - west of Whyalla and connect to Pt Pirie?

SA - STATE ON THE MOVE

[Aidan]

Can someone position Wirrida on a map on SA lines for me. Am I right in thinking the line will go from north - west of Whyalla and connect to Pt Pirie?

Google Maps knows where it is!

The trains will use the existing line via Tarcoola, Pimba and Port Augusta.

[UrbanSG]

Altona coal project progressing well
Cameron England
From: The Advertiser May 01, 2011 4:39PM

ALTONA Energy's Arckaringa coal-to-liquids project has the potential to make SA self-sufficient in diesel.

UK-listed Altona is developing the $3 billion-plus Arckaringa project with China National Offshore Oil Corporation (CNOOC), which owns a 51 per cent stake.

CNOOC and Altona representatives visited the site last week. The Chinese company has established an Adelaide office to progress the project, which is at the bankable feasibility stage (BFS).

Altona managing director Chris Schrape said the BFS had 24-36 months to run in which time the environmental and engineering aspects of the project would be addressed.

The project is envisaged to use an estimated 7.8 billion-tonne coal resource in far north SA, as the basis initially for an open-cut mine with a 15 million-tonne per year capacity. That would support an integrated coal-to-liquids plant and power plant, producing 560 megawatts of power.

Mr Schrape said the project had the ability to produce 10 million barrels of fuel per year about 90 per cent of SA's projected diesel demand up to 2030.

"The emphasis of the stage one work (on the BFS) is on mine design, environmental impacts, including ground water, also the supporting infrastructure that's going to be needed," he said. "That will run through this year and into next. Then you'll see stage one and two start to merge in 2012. Then work on the detailed side will continue into 2013."

Mr Schrape said that the project had the potential to be a key contributor to the state's diesel and power needs.

He said SA had much resources potential. All of the new projects needed power and fuel supplies.

"This is part of the solution," he said. "Where's South Australia going to get its power from? Where will all the diesel fuel come from to power all the trucks in the mines and run the economy? We have the capability of delivering exactly those things."

Technical director Peter Fagiano said a carbon price would not be an issue for the project as CO2 would be removed from the synthetic gas produced from the coal in the fuel production process.

"The plan has always been to capture carbon dioxide... from the gas, clean it up and pump it by pipeline to storage facility," he said.

Altona will present details of the project at today's Paydirt South Australian Resources and Energy Investment conference in Adelaide.

[skyliner]

Can someone position Wirrida on a map on SA lines for me. Am I right in thinking the line will go from north - west of Whyalla and connect to Pt Pirie?

Google Maps knows where it is!

The trains will use the existing line via Tarcoola, Pimba and Port Augusta.

Thanks Aiden!Makes much more sense.

SA - STATE ON THE MOVE

[Wayno]

New future of iron ore in SA outback

IN South Australia's outback, a new iron ore province lies waiting to be exploited.

Drilling results compiled by the State Government as far back as the 1960s are being dusted off, and rigs mobilised to test sites undisturbed for decades.

Many industry watchers would assume the Eyre Peninsula, and the state's far north were the target of these activities.

But it is the potential for large magnetite deposits in the north-east of the state - the so-called Braemar Iron Formation mainly between Yunta and the New South Wales border - that is attracting the next surge of exploration dollars.

Based on exploration targets released by companies in the area, there could be more than 20 billion tonnes of iron ore in the region.

Currently just 1.67 billion tonnes have been delineated to a JORC Resources standard (Australian reporting standards for mineral resources). However, drilling is starting to pick up, with a view to converting the targets to resources.

Companies active in the area include Royal Resources, Carpentaria Exploration, private company Bonython Metals Group, and Helix Resources.

Royal has released an inferred resource of 277 million tonnes, while a joint venture between Bonython and Carpentaria has defined a 1.4 billion tonne resource.

Many of the deposits lie in close proximity, or even straddle the rail line that runs from Port Pirie to Broken Hill.

There remain significant infrastructure needs, however. While the train line is adequate in terms of its ability to transport iron ore, it would need to be upgraded in order to serve more than one or two projects, with spare capacity at approximately 10 million tonnes per year, industry figures say.

And any mining projects in the region, similar to those on the Eyre Peninsula, would require the construction of a new bulk commodities port - an issue on the agenda, but effectively stalled, for the past couple of years.

Magnetite iron ore, which predominates in the area, also generally requires upgrading, in contrast to direct shipping ore (DSO), which can be simply dug up and exported.

Upgrading, or beneficiation, requires the construction of costly plants, meaning the resource sizes need to be considerably larger than those for DSO projects.

One of the benefits of the geology of the area is the ore is located in soft material, meaning the capital and operating costs can be greatly reduced, because there is likely to be a lower need for expensive crushing facilities.

Minotaur Exploration is working on a magnetite project southwest of Broken Hill, in a joint venture with Japanese company Sumitomo Metal Mining Oceania.

Early testing of the magnetite at its Mutooroo project shows it is able to be upgraded to 67-70 per cent iron - premium iron ore grade.

Minotaur is currently looking at finalising a 15,000m resource drilling program at Mutooroo.

Managing director Andrew Woskett says the area has great potential, but there are infrastructure hurdles to overcome.

As well as the port issue, there's need for large increases in power and water supplies. But these were manageable constraints, he said.

"What works for (the region) is the scale and the tonnages. . . and there is good infrastructure close by, particularly the rail line.

"It's a premium concentrate even though you start with a low-grade raw material. The scale means you can process big volumes over a great period of time so. . . there's the potential to make it work."

In a presentation at an infrastructure conference in Adelaide recently, Mr Woskett surmised that five projects producing 20 million tonnes per year - beneficiated down to five million for each - would lead to 100 years worth of ore, based on the ability to prove up 10 billion tonnes of mineable product.

PepinNini Minerals managing director Norman Kennedy says the area has promising iron grades, low impurities, and potentially large tonnages. He says his company is about a year behind others in the field, but is keen to catch up.

Mr Kennedy said originally the low head grades in the area meant he did not pay particular attention to its potential, but the ability to cheaply upgrade meant it was a real prospect. "When you look at the results coming out, the concentrate at the end of beneficiation is really very superior.

"I can't see anything better in Australia to tell you the truth.

"There are huge tonnages there and it doesn't cost a lot to beneficiate. I can see it being a bit of a sleeping monster really. It could be the preferred magnetite coming out of Australia."