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ONESTEEL has bought iron ore assets in SA - including Peculiar Knob from WPG Resources for $346 million - as it focuses more on iron ore exports.

OneSteel will also expand its export port facilities at Whyalla in SA to 12 million tonnes per annum by the fourth quarter of calendar 2012, from the current capacity of 6.5 to 7.0 million tonnes, the company says.

The port expansion will cost about $200 million, Sydney-based OneSteel said today.

South Australian Premier Mike Rann says OneSteel's almost $600 million investment in its iron ore business exposes the Liberals carbon tax scare campaign as irresponsible and shameless.

Mr Rann said the investment ensured the long-term viability of Whyalla, and was a further boost to the state's growing mining sector.

``Not only will this plan further boost our exports and provide royalties to South Australians, but OneSteel's iron ore initiatives are also good news for the long-term sustainability of the company and its steel-making plant at Whyalla,'' the premier said.

``It was only a few months ago that federal opposition leader Tony Abbott visited Whyalla to pronounce that the city would become a ghost town, an economic wasteland because of the commonwealth plan to put a price on carbon.

``That shameless and irresponsible scare campaign continues to be exposed for exactly what it is.''

Whyalla, the Upper Spencer Gulf and the entire State have a very positive economic future, Mr Rann said.

The purchase of the WPG assets is expected to be completed within two months, and the port expansion work is expected to be complete by the end of next year.

Premier Mike Rann to announce State Government response to Olympic Dam mine proposal
Christopher Russell
From: AdelaideNow October 10, 2011 9:06AM

PREMIER Mike Rann will today tick another box on his way to exiting the stage, with the public release of the State Government's response to the proposal to expand the Olympic Dam mine.

The government's formal assessment of BHP Billiton's environmental impact statement into expanding the mine will be available from 2pm today.

It follows months of negotiations between the Government and the resources giant on the mine and the supporting infrastructure including building a desalination plant at Point Lowly on the Eyre Peninsula near Whyalla.

It marks another major milestone toward creating the world's biggest mine but is not the final go-ahead for work to commence.

BHP Billiton will need to revise its project proposal, taking into account whatever conditions the Government sets in the assessment.

On the Government's side, the assessment will form the basis of legislative changes to the indenture act which currently governs the copper-gold-uranium mine's operation.

Both sides hope amendments to the indenture act will make its way through parliament this year, but there are only a handful of sitting days left.

BHP's target is to have its revised proposal ready to present to the BHP board by Easter 2012.

The board needs to sign off on what is expected to be a $30 billion commitment before work begins.

Federal government approves expansion of the Olympic Dam uranium and copper mine
by: Ben Packham From: The Australian October 10, 2011 1:51PM

THE Gillard government has given the green light to the expansion of BHP Billiton's Olympic Dam mine in South Australia, but with more than 100 conditions.
Environment Minister Tony Burke said he had approved the development under federal environmental law, imposing strict conditions lasting well beyond the life of the uranium and copper mine, which is about 550km north of Adelaide.

They include a requirement for BHP Billiton to set aside 140,000 hectares for biodiversity conservation.

Mr Burke said the expansion proposal was subjected to independent reviews by the Australian Radiation Protection and Nuclear Safety Agency, Geoscience Australia and the Supervising Scientist.

He said he was confident the mine could now proceed with world's best practice environmental safeguards.

“While I have considered the economic and jobs benefits of this project, my focus has been on protecting matters of national environmental significance,” Mr Burke said in a statement.

“The strict conditions I've imposed will help ensure protection of the natural environment, including native species, groundwater and vegetation, for the long term.”

The expansion includes the mining of a new open pit to lift ore production and an expansion of site infrastructure, including a waste rock storage facility and an expanded tailings facility.

The approval requires the company to provide a biodiversity offset area about eight times the size of the area to be cleared.

Threatened species must also be protected and environmental research projects funded.

“The conditions apply to all parts of the project, including the proposed desalination plant in the Upper Spencer Gulf, and will ensure that the gulf and its marine life - including the giant cuttlefish - are protected,” Mr Burke said.

BHP Billiton must now prepare an extensive environmental management plan which Mr Burke might sign off on before substantial work can be undertaken.

“The program must describe how compliance with conditions will be achieved, and what action will be taken if conservative thresholds are exceeded,” Mr Burke said.

“The company will be held accountable if it doesn't comply with the strict approval conditions.”

BHP Billiton says the mine will create more than 13,000 jobs and contribute more than $45 billion to the South Australian and national economies over its 30-year life span.

Under the approval conditions, the mine's tailings storage facility must be covered when the mine is finally closed to protect it from erosion in the “very long term”.

Rio Tinto to spend up to $92 million exploring in SA
by: Cameron England From: AdelaideNow October 10, 2011 12:38PM

RIO Tinto wants to find its own Olympic Dam, signing a deal to spend tens of millions of dollars exploring near the massive BHP Billiton mine.
It has been a big day for the copper industry elsewhere in SA also, with Rex Minerals announcing plans to double the size of a proposed $900 million mine near Ardrossan.

Rio has signed a deal with junior exploration company Tasman Resources, to explore for similar mineralisation just 30km from BHP's massive copper, gold and uranium mine.

Rio will spend up to $75 million exploring at the Vulcan project, and pay $17 million to Tasman.

Tasman shares more than doubled on the news in early trade.

Tasman will drill at least 12km of exploration holes in the first year of the agreement, spending about $5 million, after which Rio can elect to move to the next stage of investment.

Olympic Dam is the largest discovered mineral deposit in the world.

It is located in a geological region called the Gawler Craton, which stretches across much of South Australia, and also includes the Prominent Hill copper and gold mine, owned by OZ Minerals.

Meanwhile Rex said it had upgraded its plans for its Hillside copper project on the Yorke Peninsula, potentially doubling the original production forecasts.

Rex said rather than focussing on a 50,000 tonne per annum copper mine, it would focus on a 100,000 tonne per year option.

The improved plan would require $900 million in upfront capital, compared to $700 million under the previous plan.

"With the positive drilling results of recent months, it makes sense to focus on a larger immediate scale," Rex managing director Steven Olsen said.

"Of particular importance to us is that the initial test work indicates that Hillside will produce high quality copper-gold and iron ore concentrates.

"This should give Rex a number of strong financing options that do not rely on equity markets.

"The key to project development is to involve potential financiers early to ensure they have followed the project from the (pre-feasibility study) to (bankable feasibility study) which is what we will now do."

A pre-feasibility study on the Hillside project is expected to be finished in the middle of next year.

Rex shares were 10 per cent higher at $1.43 this morning.

South Australia Government approves BHP Billton Olympic Dam mine proposal
by: Christopher Russell From: AdelaideNow October 10, 2011 11:06AM

BHP BILLITON has won development approval from the State Government to proceed with the $30 billion Olympic Dam mine expansion at Roxby Downs.
The approval is one of the final hurdles for the project, and comes days before the expected signing of the revised Roxby Downs Indenture Act being negotiated by the State Government and the company.

Today the State Government released its assessment report of the company's Supplementary Environmental Impact Statement, giving the project and the associated infrastructure development approval.

Mineral Resources Minister Tom Koutsantonis said the gazetted approval would allow BHP Billiton to develop:

AN OPEN pit mine to increase production to 750,000 tonnes of refined copper, and 1.6 million tonnes of copper concentrate a year.

A DESALINATION plant at Port Bonython connected to Olympic Dam by pipeline

EXPANDING the existing smelter and build new concentrating and hydrometallurgical plants

WASTE storage facilities covering more than 6000 hectares to contain rock waste from digging the open cut mine

STORAGE facilities for mining waste covering 4000 hectares

AN AIRPORT for Olympic Dam able to handle large aircraft both day and night

A NEW gas fired power station to connnect to the Moomba gas fields.

RAIL and freight terminals at Pimba

A 105km railline to connect Olympic Dam to the national rail network.

Mineral resources Minister Tom Koutsantonis said the development approval was a "quantum leap forward" for the project.

"This is not just a rubber stamp approval by the State Government," he said.

"This has not simply been a process of accepting without question everything the proponent has put before us."

Mr Koutsantonis said the Government had clarified BHP Billiton's science with its own modelling and was confident it met the most rigorous environmental standards in the country.

He said if BHP Billiton decided to go ahead with the mine it would be a game-changer for the state's economy.

"There is no doubt that this world class project is good for South Australia, good for the South Australian ecnonomy, good for South Australian jobs, good for our future prosperity.

It is estimated the mine will add as much as $6.9 billion to gross state product per year, create 6000 new jobs during construction, 4000 thereafter and 15,000 indirect jobs.

BHP Billiton will be required to begin substantial construction of the mine within five years in order to retain the development approval.

In a separate significant development today, Environment Minister Tony Burke said he had approved BHP Billiton's proposal to expand the project's copper and uranium mining and processing capacity following rigorous assessment.

Under the expansion, BHP Billiton proposes a new open pit mine to lift ore production and new and expanded infrastructure including a waste rock storage facility and an expanded tailings storage facility which would operate simultaneously with the existing underground mine.

Mr Burke said the project was approved with more than 100 conditions including an established offset area of about 140,000 hectares under the Environment Protection and Biodiversity Conservation Act.

"My decision is based on a thorough and rigorous assessment of the proposed Olympic Dam mine expansion including independent expert reviews and consideration of public comments received on the project's environmental impact statement," Mr Burke said.

"These reviews made recommendations to ensure that the proposal meets world best-practice environmental standards for uranium mining and ensure management of native species and groundwater resources."

He said the conditions would help ensure long-term protection of the natural environment, including native species, groundwater and vegetation.

Conditions also cover biodiversity conservation and environment protection management programs and compliance.

"While I have considered the economic and jobs benefits of this project, my focus has been on protecting matters of national environmental significance. The proposal was subjected to independent expert reviews including by Geoscience Australia, the Australian Radiation Protection and Nuclear Safety Agency, and the Supervising Scientist.

BHP Billiton projects that the proposed expansion would create more than 13,000 jobs and contribute over $45 billion to the economy in South Australia and nationally over the next 30 years.

Mr Burke said conditions apply to all parts of the project, including the proposed desalination plant in the Upper Spencer Gulf, which will ensure that the gulf and its marine life are protected.

"When the mine is closed, BHP Billiton must cover the tailings storage facility to protect the environment in the very long term, including from erosion," he said.

"The measures that the company will use to achieve these requirements must all be detailed in an extensive and thorough environmental protection management program, which I must be satisfied with and approve before substantial works on the project can begin.

"The program must describe how compliance with conditions will be achieved, and what action will be taken if conservative thresholds are exceeded. The company will be held accountable if it doesn't comply with the strict approval conditions.

"Ongoing monitoring will ensure that any issue can be tackled immediately, and the program must be reviewed every three years to ensure it remains effective over time, and takes account of the latest scientific information."

Mr Burke said the Australian, South Australian and Northern Territory governments had worked together to share expertise and ensure conditions provided a high level of environmental protection.

Waewick wrote:I would just love to see the State utilise the infrastructure that will be provided under this agreement to development a large non-Adelaide based population base.

I honestly don't know how to do it, but with a desal plant, and airport and a trainline it just seems a waste that in 50 years it all gets shut down.

I realsie ROxby isn't exactly paradise but hell people like in Dubai

[Shuz] wrote:I thought ODX had a potential lifespan of 100 years?

[Shuz] wrote:So it's fair to say that economically, in 5-10 years time, we could be in a similar position to WA today?

[Shuz] wrote:So it's fair to say that economically, in 5-10 years time, we could be in a similar position to WA today?