#Official Mining Thread

[Waewick]

i'm not sure if this was covered in the thread or deserves it's own thread

http://www.gabpg.org.au/olympic-dam-eis ... ggest-mine

The company will ultimately dig a hole 7.5 kilometres long, five kilometres wide and more than a kilometre deep.

Stacked up, the 44 billion tonnes or so of overburden would effectively create a new mountain range. Depending on its shape, it might be 20 kilometres wide in each direction and almost as high as Mt Lofty’s 720 metres.

If so, the new artificial mountain might create its own micro-climate.

this is all 4th hand (you know a friend heard it from a friend who heard it from a firend)

how hilarous would it be if they managed to build a mountain range - if that got through the greenies I would be amazed

[Wayno]

how hilarous would it be if they managed to build a mountain range - if that got through the greenies I would be amazed

A new mountain might bring rain to the outback

i'm not confident about these stats. 20km wide in all directions sounds too much.

Perhaps just dig a hole and bury it all?

[rhino]

how hilarous would it be if they managed to build a mountain range - if that got through the greenies I would be amazed

A new mountain might bring rain to the outback

i'm not confident about these stats. 20km wide in all directions sounds too much.

Perhaps just dig a hole and bury it all?

Where would you put the dirt from the hole you dug to bury the original dirt?

[Waewick]

I've read elsewhere it is 8kms each way

still i would vote in any government willing to allow it to happen - only of course if BHP make sure it has plants and stuff on it

[Benski81]

Marathon likely to get new explore licence DANIEL WILLS, POLITICAL REPORTER From: The Advertiser December 20, 2010 2:09PM

MARATHON Resources is on the brink of winning permission to resume exploration for uranium.

The State Government has announced it intends to renew Marathon Resources' exploration licence for one year, half the period sought by the company. Marathon was ordered to suspend drilling two years ago after it was found to have breached waste disposal conditions by burying waste at the mine site.

The discovery of drilling core samples and other waste buried at the mine site in 2008 sparked a formal investigation.

Acting Mineral Resources Development Minister Jack Snelling said the Government would now hold discussions about new oversight with the company before granting exploration rights.

The concession comes amid calls for a complete mining ban in Arkaroola due to biodiversity and environmental concerns.

The Australian Conservation Foundation has warned wallabies and their habitat could be threatened by mining the Flinders Ranges.

The Government has yet to decide whether it will permit mining in the area if Marathon decides it is economically viable.

"The Government is legally obliged to approve the (exploration) application for renewal," Mr Snelling said.

"The Government has proposed to renew Marathon Resources licence for a term of one year, but without an automatic renewal as a condition of the licence.

"The review of the terms and operating conditions of the renewed licence will be undertaken in consultation with Marathon Resources."

The company has been given 28 days to respond.

"Marathon has also been advised the Government is considering a range of possible conservation options, which may involve exclusion, or limiting, of mining in the environmentally sensitive areas," Mr Snelling said.

The area has been identified as highly likely to contain substantial reserves of copper, gold, uranium and other metals.Greens MP Mark Parnell said the Government should immediately declare Arkaroola a mining-free zone.

"It seems to me that they're trying to have a bet both ways," he said yesterday.

"They're holding out some hope for the mining companies that they might one day be allowed to mine and they're holding out hope to the conservation community that they are serious about long term protection.

"By doing that, they're achieving neither."

Marathon has previously said it deeply regretted the dumped waste controversy and had not breached regulations intentionally.

Opposition Leader Isobel Redmond has called on the State Government to decide whether it will permit mining in Arkaroola.

Ms Redmond announced in September she would oppose any reduction in environmental protection for the region.

"The Rann Labor Government needs to come clean with South Australians and reveal exactly what their plans for Arkaroola are," Ms Redmond said today.

"South Australians deserve to have a clear position on mining from their government but instead all we have had so far is delay tactics and rhetoric.

"Labor committed to openness and transparency after the election but still they are failing to consult on the key issues affecting the future of our state.

"Whilst the Liberals are very supportive of mining, including uranium mining, in this state, Arkaroola deserves the highest environmental protection."

Greens MP Mark Parnell said a ban on all drilling and other ground disturbing activities by Marathon Resources in the Arkaroola Wilderness Sanctuary must remain in place.

[monotonehell]

LOLs...

...Greens MP Mark Parnell said the Government should immediately declare Arkaroola a mining-free zone. "It seems to me that they're trying to have a bet both ways," he said yesterday. "They're holding out some hope for the mining companies that they might one day be allowed to mine and they're holding out hope to the conservation community that they are serious about long term protection. "By doing that, they're achieving neither."

...

Opposition Leader Isobel Redmond has called on the State Government to decide whether it will permit mining in Arkaroola. Ms Redmond announced in September she would oppose any reduction in environmental protection for the region. "The Rann Labor Government needs to come clean with South Australians and reveal exactly what their plans for Arkaroola are," Ms Redmond said today. "South Australians deserve to have a clear position on mining from their government but instead all we have had so far is delay tactics and rhetoric..."Whilst the Liberals are very supportive of mining, including uranium mining, in this state, Arkaroola deserves the highest environmental protection."...

Good to see Isobel making the Lib's position more clear than Labor's.

Politicians...

[Wayno]

The Perfect Xmas Present

Can't find a gift for that certain someone - well look no further!

url

New book on Olympic Dam

Looking for a stocking filler for a mining enthusiast? ''The Olympic Dam Story' has unearthed a plethora of erstwhile unbeknownst information, sure to please the most demanding of readers.

The Olympic Dam Story, written by author and trained geologist David Upton tells the story of the discovery of the super-giant Olympic Dam copper-uranium-gold deposit. His book retails for $35 and is available from the Roxby Downs Visitor Information Centre, Dymocks in Rundle Mall, Adelaide and Collins Street, Melbourne or direct from the author.

Many people know Olympic Dam was an unusual discovery because there were no outcropping rocks to guide Western Mining’s geologists to the area. “But there’s so much more to the story,” Upton said. “For example, Western Mining was very short of funds when it made the discovery. In fact, the company’s first exploration base in Adelaide was the garage of a home at Flagstaff Hill.”

Upton said “Olympic Dam is so important to South Australia and the entire nation, yet there’s so little information available for general readers who are curious about how it was formed and how it was discovered and developed. I wanted to make the story of Olympic Dam accessible to anyone.”

Contact: David Upton at [email protected]

But wait, that's not all. Order by Dec 24 and receive a free set of nuclear reactor fuel rods, guaranteed for the next 30,000 years!

Merry xmas to all

[Wayno]

An unexpected and pleasant end to 2010

Three new mines given approval

SOUTH Australia has now issued approvals for 16 operational mines after granting digging rights to three extra projects including a uranium deposit in the state's north.

Premier Mike Rann today announced approval for a Heathgate Resources uranium project at Beverley North, an underground operation at the OZ Minerals mine at Prominent Hill and the Hillgrove Resources copper-gold mine at Kanmantoo in the Adelaide Hills.

The approvals were in addition to an IMX Resources iron ore mine near Coober Pedy and OneSteel's Iron Chieftain in the Upper Spencer Gulf as major mining projects approved in SA this year, he said.

Mr Rann said record levels of investment in mineral exploration continue to be translated into major job-generating mining projects. "The 16 approved mines are a four-fold increase from the number of mining projects in this state when this Government decided to introduce the Plan for Accelerating Exploration," Mr Rann said. "Minerals are South Australia's largest single contributor to exports, out-performing all other sectors."

Mr Rann said minerals were worth $2.8 billion in 2009/10, compared to $1.17 billion in 2003/04.

Mr Rann said the tally of approved mines was consistent of an election pledge of $10.2 million for the next four years to fund private sector exploration.

"The Plan for Accelerating Exploration 2020 will ensure the more than 20 mining prospects now in the pipeline grow in number to harness this state's rich resource potential," he said.

Mr Rann said new mines would provide jobs, investment and infrastructure to remote and regional SA.

"South Australia also has about a further half a dozen projects currently in the advanced stage of the regulatory approval process," he said. "These 16 mines and those still in the pipeline will help to cement mineral resources as the state's number one export commodity and increase annual mineral production beyond the SA Strategic Plan target of $3 billion."

Mineral Resources Development Minister Paul Holloway said OZ Minerals has already begun construction on the $135 million Ankata Underground Mine near the Malu open cut mine at Prominent Hill.

"This will expand the Prominent Hill workforce of about 700 people and add an average 25,000 tonnes of copper and 12,000 ounces of gold production each year during the five-year life of the mine," he said.

[Wayno]

A step forward - major dev status for a new port facility on Eyre Peninsula

CENTREX Metals' plan to build an iron-ore processing plant and deepwater port on Eyre Peninsula has won major development status from the State Government.

The project at Sheep Hill, which would cost hundreds of millions of dollars, will be listed in the Government Gazette today.

"South Australia's growing role as an exporter of mineral resources to the world requires modern port infrastructure," Premier Mike Rann said. "Major developments such as this proposed deepwater port have the potential to deliver significant economic benefits to the state and certainly provide an important export gateway for Eyre Peninsula."

Sheep Hill is on the east coast of Eyre Peninsula, 65km north of Port Lincoln.

It is central to several of Centrex Metals' string of Eyre Peninsula exploration tenements.

The major-development status will encompass slurry pipelines from the port to any mines, but the mines would be assessed separately under usual Primary Industries and Resources SA criteria.

Urban Development and Planning Minister Paul Holloway said declaring the proposed port a major project would trigger the most rigorous development assessment process available.

"This is a very significant project and requires the highest level of scrutiny provided by SA's development laws," Mr Holloway said.

Centrex managing director Jim White welcomed the decision. "It's good to have it declared a major development," he said.

Centrex has made conceptual costings of about $150 million to build a wharf and ship loader but has yet to cost onshore processing.

The port's driving rationale is to export magnetite ore, especially from Centrex's joint-venture sites with Wuhan Iron and Steel Corporation and Baotou.

It aims for first production before the end of 2014, increasing to 10Mt a year of concentrate in 2015 and potentially 15Mtpa by 2016.

Centrex may also export hematite ore from its Wilgerup project through Sheep Hill.

The port site also has the potential to be used for exporting grain if another partner approaches Centrex to pursue this option.

The Government expects this would take the capital cost to about $455 million.

Centrex is targeting submission of a development application on Sheep Hill this quarter, with construction to begin early next year.

[Wayno]

I'm hoping this precinct plan gets traction.

THE State Government appears to have shelved a plan to build a "minerals precinct" in the middle of Adelaide.

Urban Development and Planning Minister Paul Holloway announced the precinct in July 2009 as part of the 30 Year Plan for Greater Adelaide, saying it would create jobs and stop companies from using "fly-in, fly-out" contractors.

But no plans have been made for the precinct, and the State Government's partner - the South Australian Chamber of Mines and Energy - says it has not been contacted to move the project along.

SACOME chief executive Jason Kuchel said yesterday he had not heard anything for at least a year but the idea needed to be followed up sooner rather than later.

"If we are going to look at it and try to ensure we attract companies to set up head offices here, you need to do that now while the industry is relatively small," he said.

"If (interstate companies) see there is a precinct, they may open a second office in Adelaide if their main office is elsewhere. They would then engage local employees rather than others flying in from interstate for a couple of weeks and then flying home.

"It was a good idea and now is a good time to do something about it."

Mr Holloway's office did not respond to repeated questions yesterday about whether the State Government remained committed to the policy or had started the process. Opposition mineral resources development spokesman Mitch Williams said the policy was "a typical Mike Rann announcement - it all seems good and then it disappears and nothing happens".

The 30 Year Plan called for a "specialty minerals precinct in the metropolitan area to encourage mining companies to locate their administrative and support functions in Adelaide".

"Mining employment is characterised in some other jurisdictions . . . by fly-in/fly-out arrangements to the mining sites," it said. "For Greater Adelaide to fully capitalise on the substantial economic flow-on effects from a booming mining sector, fly-in/fly-out operations will need to occur from Adelaide, rather than from other capital cities."

Mining contributed $2.7 billion to the state economy last financial year - a 50 per cent increase on its contribution of $1.8 billion in 2001-02 - and the industry remains "a key pillar" of the state's economy.

The state's potential "mining boom" is very much tied to BHP Billiton's potential expansion of Olympic Dam.

Adelaide-based employees are expected to grow significantly if the project is signed off by the Government and the company.

[Wayno]

BP in our waters

THE federal government has given BP permission to explore for new oil reserves off the SA coast.

Resources Minister Martin Ferguson said the government had awarded the embattled energy giant four permits to explore for oil and gas in the Ceduna Sub-basin in the Bight Basin off South Australia.

The permits follow an extensive assessment that examined BP's ability to undertake the work in accordance with Australia's stringent requirements, Mr Ferguson said.

Additional conditions have also been attached to the permits to ensure best practice, he said.

"BP has accepted those conditions," Mr Ferguson told reporters in Canberra on Monday.

He declined to detail the extra conditions but said they would be gazetted later this week.

"I am satisfied that we have put in place the appropriate safeguards and note BP's commitment to work with government and regulators to ensure that highest possible safety standards as they carry out this work," he said.

It is the first time Australia has granted additional rights to BP since the April 2010 blowout at BP's Macondo well that killed 11 workers and spewed almost five million barrels of oil into the Gulf of Mexico.

BP said it planned to commence seismic surveying later this year. Drilling would not take place until 2013 at the earliest, it said.

"The Ceduna Sub-basin is a very exciting new exploration area for BP," said Phil Home, managing director of BP's Australian upstream oil and gas business.

"Our experience tells us that the geology has a high potential for containing hydrocarbons."

The BP permits add to three awarded in recent months to companies Woodside, Finder No 4 and Riverina Energy to explore in the Carnarvon Basin off Western Australia.

The seven permits will result in a guaranteed exploration investment of $682 million over the next three years, Mr Ferguson said.

"Our energy security will be greatly enhanced by opening up new geological frontiers and reducing our dependence on imports," he said.

SA's Minister for Mineral Resources Development Paul Holloway said the permits created the potential for almost $1.5 billion in spending on the search for petroleum.

"This area possibly contains large oil and gas accumulations, which if discovered, would significantly increase energy security locally and nationally," Mr Holloway said

A key component of the comprehensive assessment of BP Exploration's bids was consideration of the lessons drawn from the Deepwater Horizon incident in the Gulf of Mexico, Mr Holloway said.

"Indeed, lessons learned from the events at Montara in offshore Northern Territory and Macondo in the Gulf of Mexico have been taken into account through specific conditions placed on these permits."

[Waewick]

as I have stated before

as long as it isn't only royalties that the state gets I'll be more than happy. Jobs are what we need!

[rhino]

Kanmantoo copper mine to open in December
Business Editor Christopher Russell From: AdelaideNow February 02, 2011 1:25PM

CONSTRUCTION is in full swing on SA's next copper mine to be open by December at Kanmantoo.

More than 100 workers are working to build the mine with a targeted opening date in December.

Mine owner Hillgrove Resources' board is meeting this afternoon in the site office block which was officially opened today by Mineral Resources Development Minister Paul Holloway.

The construction phase was a significant milestone and an indicator of the economic benefits for the region, Mr Holloway said.

"Mining has a very large multiplier effect," Mr Holloway said.

"You only have to drive through Callington to see the support industry that's springing up to see just how powerful the mining industry can be as a multiplier."

The mine - situated between the towns of Kanmantoo and Callington - will be the closest operational mine to Adelaide.

It is a reopening of a mine which closed in 1978 and Hillgrove aims to export 21,000 tonnes a year of copper from the site.

This will be in the form of concentrate averaging 27.5 per cent copper with gold and silver credits.

Hillgrove has an offtake agreement with JP Morgan Metals which expects to export to China.

Hillgrove chairman and former Liberal premier Dean Brown said the mine was being established under a strict environmental regime and following extensive community consultation.

"We've worked with the local community for five years," Mr Bown said.

"They had 129 issues they raised through consultations.

"We've settled completely on 123 of them and we've reached a compromise on the other six."

Issues included resolving water need by negotiating to take recycled water from Mount Barker Council's Laratinga treatment facility, agreeing to leave some pockets of native vegetation undisturbed and building a by-pass road so trucks did not travel through the Callington village.

Hillgrove has also pledged to rehabilitate the site - including improving the existing waste mound left by the previous mine operators.

Hillgrove managing director Drew Simonsen, who joined he company in July last year, said the milestone of first steel being erected on site was of great significance.

"This stuff is real," he said, gazing over the site where the processing plant is being built.

Hillgrove bought a used processing plant from a West Australian mine. This has been dismantled and transported to Kanmantoo and will be reassembled on foundations being built at the moment.

Mr Simonsen said there were about 130 workers on site now and this would increase as the constructon phase peaked.

"Over the next couple of months we will ramp up our employment," Mr Simonsen said.

Hillgrove has an initial 10-year mining lease and expects to need about 150 people in ongoing operational jobs with another 200 to 300 people employed in support industry roles.

"Our objective is to try to recruit locally," Mr Brown aid.

A big advantage of Kanmantoo was its proximity to Adelaide Hills towns, Murray Bridge and Adelaide, he said.

"People can enjoy the benefit of their family life but still work on a mine," he said.

[rhino]

Resource upgrade triples the size of Iron Road's Eyre project
CAMERON ENGLAND From: AdelaideNow February 09, 2011 10:11AM

IRON Road has more than tripled the size of its iron ore deposit on the Eyre Peninsula, to 1.2 billion tonnes.

The company's shares jumped more than 17 per cent when the news was announced, settling back to be 6 per cent higher at $1.04 by noon.

The company is aiming to develop a 10 million tonne per year mining project, exporting via a proposed port at Tumby Bay, with a possible later expansion to 20 million tonnes.

Iron Road expects to release a pre-feasibility study on the Central Eyre project in the first quarter of this year, and is continuing drilling to further expand the resource this month.

Managing director Andrew Stocks said the majority of the resource was in the "indicated" category under Australian reporting standards, which demonstrated a high level of confidence in its economic potential.

"The Central Eyre iron project continues to demonstrate it has the necessary size and scope to be a major iron producer, sitting alongside some of Australia's most significant new wave of iron concentrate export operations currently under development," he said.

"Significantly 60 per cent of the ... mineral resource has been classified as indicated by Coffey Mining, demonstrating the robust nature of this deposit.

"We have also been able to establish that the iron present at the project is readily upgraded into a premium high grade iron concentrate by simple processing.

"Whilst the in-situ iron grades at Central Eyre are below that of some of our peers, this is more than offset by the very coarse grained nature of the magnetite mineralisation and the distinctive geology of the ore body."

[Wayno]

ODX - Kloppers says 'bring it on'

This is the first time BHP has publicly stated positive intent AND a timeframe.

ARMED with $US80 billion, BHP Billiton wants to start expanding SA's Olympic Dam next year.

The expansion will kickstart at least 100 years of open-cut mining of the State's biggest resource.

Company chief executive Marius Kloppers said yesterday: "We would very much like in the next calendar year - so that's 2012 - move this project forward into execution."

He made the announcement as he reported a half-year net profit of $US10.524 billion, which is up 71.5 per cent and puts the company on track to deliver an Australian-record, full-year result.

The $US80 billion is earmarked for spending between now and 2014-15.

Mr Kloppers said the key projects were the Olympic Dam copper/uranium/gold mine, iron ore in WA's Pilbara, coal in Queensland, potash in Canada and copper in Chile.

"The vast bulk of our capital spend over the next five years will go into these projects," he said.

BHP says Olympic Dam has a life of more than 100 years - double expectations of its operations in the Pilbara, Queensland or Canada.

BHP has submitted a draft Supplementary Environmental Impact Statement to the SA, NT and Federal governments on the expansion.

The governments are deciding whether the draft has adequate information for an assessment to be made and will then make it public.

Minister Assisting the Premier on Olympic Dam Kevin Foley said BHP's profit augured well for the expansion.

"We're very confident - very confident - that we can be in a position in the early part of next year for BHP's board to consider this matter and, hopefully, give it the green light."

Mr Foley said the Government was negotiating with BHP on royalties. Olympic Dam will be subject to its own legislation and not fall under the standard royalty regime.

BHP's huge profit - which follows Rio Tinto's full-year $US14.3 billion profit - has re-ignited public calls for mining companies to be hit with a higher rate on the Minerals Resources Rent Tax.

Finance Minister Penny Wong dismissed the call.

"The issue here is governments do come to arrangements with different stakeholders and I think it's important that we honour those arrangements," Senator Wong said.