#Official Mining Thread

[Ben]

So it's not just AdelaideNow that does ridiculous comparisons.... 1 x 9 story building in the desert = Little Dubai???

A LITTLE Dubai is to bloom in the Pilbara, with crown land to be given away free to property developers to build luxury high-rise apartments in the remote region as Western Australia gears up for a massive expansion of its mining boom.

Property developer Finbar Group said it was an extraordinary project and buyers were lining up to pre-buy apartments in the nine-storey building, despite an average price of $860,000.

"Being able to buy a nice coffee, being able to get a good haircut, and having a brand new school for your kids to go to and a hospital if you become unwell - that's what matters," he said.

[flavze]

i really don't like the idea of a desal plant pumping it's brine into the upper gulf, i don't see why they don't build it on the other side the peninsula and pump it into the open ocean.
Will be supporting those protesting this part of the development.

[Aidan]

i really don't like the idea of a desal plant pumping it's brine into the upper gulf, i don't see why they don't build it on the other side the peninsula and pump it into the open ocean.
Will be supporting those protesting this part of the development.

Even if there were already sufficient pipeline capacity across the peninsula, pumping it that extra distance would require a lot more energy. So it's really a non starter when there are cheaper options available.

Though I'm inclined to prefer land based disposal, I don't see why they should be prevented from disposing of it at sea if there is compelling evidence that doing so will not cause any harm.

[Wayno]

i really don't like the idea of a desal plant pumping it's brine into the upper gulf, i don't see why they don't build it on the other side the peninsula and pump it into the open ocean.
Will be supporting those protesting this part of the development.

Out of the 4200 submissions to the oringal EIS, the Desal plant is one area where BHP has given ground in the revised EIS. They will be burying the outlet pipe under the seabed, and extending it a few hundred extra metres, beyond which even independent experts (who ever they are) have demanded, into deeper water with stronger southerly currents. The same independent experts agree the plant poses no threat to local cuttlefish, and the broader gulf eco-system. I forget the actual increase in salinity level figures, but it is in the 100ths of 1 percent.

[rhino]

i really don't like the idea of a desal plant pumping it's brine into the upper gulf, i don't see why they don't build it on the other side the peninsula and pump it into the open ocean.
Will be supporting those protesting this part of the development.

Out of the 4200 submissions to the oringal EIS, the Desal plant is one area where BHP has given ground in the revised EIS. They will be burying the outlet pipe under the seabed, and extending it a few hundred extra metres, beyond which even independent experts (who ever they are) have demanded, into deeper water with stronger southerly currents. The same independent experts agree the plant poses no threat to local cuttlefish, and the broader gulf eco-system. I forget the actual increase in salinity level figures, but it is in the 100ths of 1 percent.

I wonder where the water comes from to create those stronger southerly currents, this being the upper end of the gulf and all? Possibly by stronger northerly currents six hours earlier?

Having said that, I actually have faith in the report, and in the project going ahead. It bloody better, I just bought another house up there! Go you good thing!

[UrbanSG]

From yesterday's Business Spectator:

An Olympic victory for BHP
Robert Gottliebsen
Last update 10:25 AM, 16 May 2011

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Olympic Dam is the world’s most valuable mineral deposit (BHP's Olympic dream, January 20) and will go close to being the world’s biggest start-up mining development. The enormous scale is revealed in the Olympic Dam environmental statement which shows where BHP will spend $30 billion to access the ore.

BHP’s uranium president Dean Dalla Valle reveals that the giant ore body is in the shape of a frying pan, with the current underground mine taking ore from the "handle” and the open pit mine based on what is the “pan” of the ore body.

While all the sums in the environmental statement are based on a 40-year Olympic Dam life, that “pan” has in fact a 100 year life. BHP will spend six years – yes, six years – removing the overburden to access the “pan”.

In all it will remove a 350 metre thick layer of overburden and the rock taken out will be transported to a rock storage facility that covers 6,720 hectares and will eventually be 150 metres high. By 2050, when the mine has not even completed half its life, the pit will be 4.1 kilometres long, 3.5 kilometres wide and one kilometre deep.

While BHP is removing the overburden and after the open cut starts it will continue to exploit the existing underground mine.

The world is worried about the future of nuclear, but BHP appears to have has no such concerns, and has produced a remarkable set of maps and tables which show that currently there are 439 nuclear reactors in operation. Dalla Valle says that he expects the number to rise to 793 by 2030 – just under 20 years.

Those 793 reactors will require around 92,000 tonnes of uranium, according to Dalla Valle. BHP will be producing 15,000 tonnes from the open pit and 4,000 tonnes from the underground mine – a total of 19,000 – and will be the world’s biggest supplier. Dalla Valle says that, despite the 19,000 tonne Olympic Dam uranium output, on his present estimates there will be a shortfall of an incredible 50,721 tonnes of uranium oxide on the basis of present and planned output.

If he is right, the price of uranium will go through the roof unless more Olympic Dams are discovered and developed.

BHP expects the price of uranium to take off towards the end of this decade – just when that open pit mine is starting to ramp up. Of course, the mine’s most important revenue driver during the development years will still be copper and Olympic Dam will produce copper concentrates containing 515,000 tonnes of copper metal a year.

Ore from the underground mine is converted to copper metal and there was great pressure on BHP to do the same with open pit ore. BHP has opted for a copper concentrate that includes uranium, gold and silver, which will be railed up through Alice Springs to Darwin. The tailings from producing the concentrate will be rich in uranium but also include copper, gold and silver. The uranium will be extracted from the tailings via a hydrometallurgical plant and there are many other support facilities required, including a desalination plant.

South Australia will be transformed into a boom state. Olympic Dam joins the Pilbara iron ore, North West Shelf gas shelf and Queensland gas and coal basins as a source of great future national wealth.

Western Mining Corporation discovered the handle of the deposit, but was only just discovering the pan when it sold it to BHP for a fraction of what Olympic Dam was worth. Acquisition of resources at low prices has been a key to BHP growth. BHP acquired its Mount Newman iron ore from CSR and others and coal and Chilean copper from Utah. But Olympic Dam looks like being the greatest bargain of them all.

[ml69]

Thanks Urban SG .... great article. That's high praise from a respected business commentator. It still seems like a mirage in the distance at this stage, but it's good to hear the potential and praise coming from someone else besides the king of spin, Rann.

[iTouch]

so wait a second I'm no good with economics so let me get this straight,

- over 15,000 jobs will be created at the beginning for merely the mining and infastructure themselves. In other words 15,000 people + their families will be coming,
Thinking Rationally Here:

At the very very very most:

1. 15,000 mining men will run off to Roxy Downs bringing their 15,000 wives who will also need jobs so they'll set up their own businesses like cooking

2. These couples root having 3 children each creating a population of 90,000.

3. Meanwhile, more and more schools are being set up to hold these kids and universities and TAFES are in the planning process bringing another 5000 or so teachers to teach these kids. 95,000

4. Many these teachers also have husbands and wives and families sending the population up another 10,000. Making it 115,000.

5. Some of these children that are being taught leave because of job opportunities elsewhere, but most stay and have families of their own with other families souring creating a new generation smacking the population to 200,000.

6. Sandstorm hits. 98% of people die kicking the population down to 4000 sand people

7. 4000 sandpeople root and have 2 descendants each sand person for that is their ritual increasing the population to 32,000 within 10 years. Australia doesn't consider them threatening and supplies them resources and aid allowing the town to grow to a population of 35,000

8. After another 10 years of growth to a population of 40,000, the ritualistic ideals of the sand people turn radical and the majority massacre anybody within the town who don't comply with domination reducing the population to 38,000.

9. Within 1 month, 5000 of these sandpeople (with knowledge of uranium from the mines) march down to Woomera and invade...

10a. With minimal losses out of surprise invasion, a squadron of 2000 sandpeople hijack the jets there, and fly North East to Mount Isa, massacre the people there and with minimal losses there, plant a new colony of 1000 while the rest go home. 500 march back raping and pillaging the towns on the way, the others fly back bombing any nearby weapons and communications facility and close to the border of NSW and VIC.

Australia starts to become unsettled by the non-communication between each town and the government starts to investigate.

10b. Meanwhile, (within the 2 weeks of the invasion of Mount Isa, and while the 500 sand people travel by foot) the sandpeople in Roxby are creating a wall Spanning over 200km in radius around Woomera and Roxby incorporating the salt lake and creating more and more nuclear weapons. They've invaded Glendambo creating a blockade on the A67 highway seizing all resources that go through there. With those resources, sustainable dirt for farms start to be created in this Glendambo and construction of a desalinization plant of the nearby salt lake occurs.

11. After 3 weeks of planning The Australian government begins negotiations due to the fact that these Sandpeople have the possession of the largest uranium deposit on the planet. They keep it secret from the people and under no circumstances let the United States know due to pride-reasons.

12. After a month of negotiation, the Australian government buys back Mount Isa for:
- 10 billion US dollars
- without the consultation of the residents, allows the sandpeople to occupy Port Augusta.
- A flightpath East across the Hay plains, past the New England area and a narrow route between the in the Southern region of the North Coast of NSW
- Creating a story that the area that the sandpeople have occupied is now off limit's by creating a lie saying that there was an ignition of the uranium sending it into the atmosphere of that area. No citizen of Australia is allowed in this area.

The government tell the Australian people that a freak Cyclone hit it killing all people, government officials start vandalizing the Mount Isa, tampering with the weather communications, and essentially make the people of Australia believe this as well as the supposed "uranium explosion"

Meanwhile the Sandpeople hold off of the invasion Port Augusta for 1 year allowing themselves to strengthen in this area.

13. After the 1 year of silence. The Australian government make plans to create a strong military outpost in Port Pirie and Whyalla in case more mobilisation of the sand people's troops. They tell the people that "it will create jobs and because South Australia is protected by all the other states, will be a good base of communications". ASIO secretly create " communication towers" across the gulf linking the 2 cities together and creating a blockade for Port Augusta to connect with the sea. A strong military presence is also in Cooper Pedy to "contain aboriginal communities" that have apparently been "rioting".

On the night of February 14, 3000 Sandmen, march into Port Augusta and imprison the now 30,000 citizens as "slaves". Those who did not comply were shot with depleted uranium. The Australian government responds by telling the people that a "gale force North wind" from the region spread the Nuclear fallout south to Port Augusta affecting the region. This area is off limits also. A ferry service across the gulf connects the people.

The sandpeople have updated their technology by buying weapons from corporations in the united states. War is profitable. They also export uranium to Fiji in exchange for 80,000 men of their army. If they do not comply or make communicative notes to any foriegn nation, the sandpeople threaten to fire nuclear missles through the flight corridor and nuke the country within minutes. Fiji complies and a mercenary army of 80,000 men fly to Roxby Downs. As they land, each troop has a device attached to them that injects a small dose of depleted uranium into their chest if they do not comply. Just enough to kill them. The population is now roughly 158,000.

14. After 6 months the Australian people start getting extremely curious about this area of Central South Australia and conspiracy theories fly around. New South Welsh People sight "ufo's" in the Northern region.
Meanwhile the Sandpeople prepare for the next campaign.

15. 2 months later, plane by plane, A tonne of depleted uranium is dropped into the ocean off the coast of Northern New South Wales making the people there sick. Another plane dumps a 20kg of Uranium into dams up and down the coast from Ballina to the Gold Coast. Widespread sickness spreads throughout the areas.

16. A week later, The sandpeople make demands to the Australian government that they hand over control or they will poison the water supply of more Cities. The Australian government rejects the demands.

17. The Sandpeople fire their first atomic bomb which lands on top of Victoria Square Adelaide. The explosion takes out the whole CBD. The shockwave spans North to Elizabeth and South to Noarlunga, the shockwave bounces off the Adelaide hills keeping those in gullies such as Tea Tree Gully and Hope Valley alive but severely poisoned.

18. The word spreads faster then the government can contain taking it all over the world. Rumors spread saying it was Indonesia as the plane came from the North, More nukes are fired at Hawaii from Woomera,
- the United states takes it as an attack by the Australian government and responds by shooting the planes before they hit American soil, they also reply with their nukes from Hawaii deployed at Sydney.

19. Minutes later North Korea detects the nuclear missles being fired from America and fires their nukes at the United States.
- Japan detects North Korea firing nuclear missles and fires their nukes at North Korea,
- China detects all nukes and fires their nukes at all angles,
- the United states detect all the nukes and fires their nukes at all firing countries out of fear
- Japan also replies by shooting their nukes at China and the United states
- Russia does the same.
- The European union fires their rockets
- India fires their rockets
- The Sand people fire the rest of their rockets at Great Britain, Canada, Brazil, Middle-Eastern nations, Israel, Japan.

20. Responses from almost every nuclear-weaponed nation reply, wiping out every capital city in Australia, as well as the larger towns. They ignore Central South Australia due to the fact that they believe it to be a high radiation zone.

21. By the next day, the sandpeople from Roxby Downs are the new superpower of a nuclear-holocausted world.





Maybe... this mine expansion isn't a good idea after all

[Aidan]

Wouldn't the Hutt be a bigger threat than the sand people?

(I suggest moving this discussion to The Pub)

[Wayno]

iTm, you obviously have a firm grasp of economics, but have mentally lost the plot. You would be perfect as the Minister for Zombies, Sandpeople, and Mining Control.

[iTouch]

iTm, you obviously have a firm grasp of economics, but have mentally lost the plot. You would be perfect as the Minister for Zombies, Sandpeople, and Mining Control.

This is what happens when I have no money to do anything on a Friday night

[[Shuz]]

Sense.

This thread makes none.

[Wayno]

Good to see collaboration between small cap miners. Not all this mining will occur in SA, but would probably go via an SA deep sea port.

A GROUP of iron ore explorers has formed a formal alliance to promote the development of mining infrastructure across the Braemar iron province that stretches from Broken Hill in NSW into South Australia.

The Braemar Iron Alliance says there is a need for a major deepwater port on SA's Spencer Gulf, 150km west of the area, as well as power, water and transport infrastructure throughout the Braemar iron province.

The alliance comprises listed companies Carpentaria Exploration, Havilah Resources, Minotaur Exploration, Royal Resources and U3O8 and private companies Sinosteel PepinNini Curnamona Management, Bonython Metals Group and Wentworth Metal Group.

Alliance spokesperson and Minotaur director Andrew Woskett said members saw the potential for 20 to 40 billion tonnes of mineable deposits throughout the Braemar magnetite formation.

"The presence of iron mineralisation has been recognised since the 1960s but only in the past few years with the impetus of higher iron ore prices, have explorers actively sought to define the province's resources to the Australian JORC standard," Mr Woskett said in a statement.

Carpentaria and Royal had reported iron-based JORC resource estimates, while Minotaur and Havilah were working towards initial JORC resource reports across their magnetite prospects, he said.

"Alliance members are confident in the iron potential for the area, based on extensive drill programs and recent definition of JORC resources," Mr Woskett said.

"The excellent regional potential has encouraged the Alliance members to look towards their future infrastructure needs, both individually and as a group."

[UrbanSG]

From SMH:

Go-ahead for Olympic Dam edges nearer
Barry Fitzgerald
May 26, 2011


HOPES are rising that BHP Billiton will be able to give the go-ahead for a $30 billion staged expansion of the Olympic Dam copper/uranium/gold project in South Australia's outback early next year.

SA Premier Mike Rann revealed yesterday that he was ''hopeful'' that the parallel state/federal government assessment of BHP's recently released supplementary environmental impact statement (SEIS) on the project would be completed by September.

He also said that the negotiations with BHP on the project's indenture legislation had raised some issues. ''But so far so good,'' Mr Rann said.

Advertisement: Story continues below The negotiations cover the royalty regime for the project and infrastructure commitments.

''I understand that those negotiations are going well. We are back in negotiations this week,'' Mr Rann said.

In last year's budget, South Australia increased royalties from 3.5 per cent to 5 per cent. The increase was forecast to raise an additional $65.5 million over its first three years.

The increase brought South Australian royalties up to the rate charged in Western Australia, although WA royalties on iron ore are higher, and going higher for iron ore ''fines'' in a move that has put the WA government in conflict with the federal government and its commitment under the proposed new mining tax (on iron ore and coal only) to rebate increases in state royalties.

While an arm-wrestle with BHP on what the indenture agreement for Olympic Dam will contain is expected, Mr Rann indicated that South Australia would not be seeking to lock the project in to a higher royalty regime than that already announced. ''When I meet with mining companies I will be saying, come to a state where you are not taken for granted,'' he said.

Mr Rann said BHP's SEIS had reduced the number of issues raised about the impact of the Olympic Dam expansion from 400 to fewer than 20.

''We were particularly pleased with some of the improvements that they have made in terms of their (development plan) offer,'' he said.

Mr Rann said that included the controversial desalination plant on Spencer Gulf being 100 per cent powered by renewable energy, and BHP agreeing to build a longer and buried pipeline to take saline water from the plant out to sea.

Mr Rann said that the Olympic Dam expansion and the recent breakthrough agreement allowing greater access for explorers and miners to the Woomera rocket range site meant that mining would ''dominate our economy for the next 100 years''.

[Wayno]

This shows clear intent towards ODX, but the real benefit will be here in Adelaide:

From The Australian:

BHP Billiton has signed a $10 million deal to establish two energy institutes in partnership with University College London, in Britain and in Adelaide, in a move that could signal its intention to commit itself to the $20 billion Olympic Dam expansion.

The Institute for Sustainable Resources in London and the Energy Policy Institute in Adelaide will focus on postgraduate research, including renewable energies and nuclear enrichment and power.

UCL Adelaide chief executive David Travers said the partnership would build on the world's fourth-ranked university's international research capabilities and its ability to influence the energy debate.

"Australia is going to become increasingly more influential in the development of rigorous public policy in the energy arena," Mr Travers said.

"Australia is a massive coal exporter, we have the world's largest resource of uranium, gas is talked about as a transitional fuel and we're looking to renewables.

"The production of fuels for the civil nuclear industry is an important debate that UCL wants to encourage, as is the use of renewables and the carbon tax debate."

BHP's long-awaited decision on the $20bn expansion of its copper, uranium, silver and gold mine at Olympic Dam in South Australia's north is expected by the end of the year. If given the go-ahead, Olympic Dam would become the world's largest open-cut mine.

Funding the energy institute in Adelaide would also facilitate a relationship between BHP and renewable energy companies currently tied to the campus, including Santos.

BHP would not comment on its Olympic Dam plans but said the energy institutes reflected the company's commitment to education. "The two new institutes will spur new thinking into the complex issues created by the growing demand for commodities and provide a new forum in which industry and the research community can collaborate," BHP group executive Andrew Mackenzie said.

The announcement was made in London last night.