Minerals and Energy Project Pipeline in South Australia Dr Paul - - PowerPoint PPT Presentation

Minerals and Energy Project Pipeline in South Australia

Dr Paul Heithersay

GMUSG & SACOME Conference and Trade Expo 2012

Let’s talk about Olympic Dam

 Largest Uranium Resource in

the world

 4th largest Copper Resource in

the World

 4th largest Gold Resource in

the World

20 40 60 80 100 120

El Teniente # Andina # Chuquicamata # Olympic Dam Escondida Grasberg Camp Collahuasi Camp Oyu Tolgoi Camp Pebble Norilsk Camp (Nickel)

4th largest copper deposit in the world

Lets talk about Olympic Dam

4

 Australia’s

largest underground mine, ~ 300 km tunnels

 Roxby Downs

~ 4500 people

Olympic Dam Expansion

Olympic Dam Announcement



“alternative, less capital-intensive design of the Olympic Dam

• pen-pit expansion, involving new technologies, to substantially

improve the economics of the project.”



“the long term outlook for the copper market remains strong and we will continue to work closely with all stakeholders as we refine

• ur longer term development plans for this unique, world class
• re body. We want to find the right solution to unlock this

resource”



“The South Australian Government has been fully supportive of Olympic Dam and has created an environment that is highly conducive to business investment. We have been very much encouraged by their attitude to business development and the Olympic Dam expansion project”



“Olympic Dam is a resource of enormous potential and we will continue to work on technological and design alternatives that have the potential to substantially improve the economics of the expansion, while also completing some early stage site works.”

What this means

 BHPH will consider new mass handling technologies

including conveyors rather than trucks

 Minimum starter pit design  New processing technology including Heap Leach of

primary sulphides

 Leading to a step change in capital required to begin the

project

 Technologies are being developed in SA with the

assistance of local universities and companies

 The technology, if successful could unlock lower grade

• res than currently mined

 Potentially leading to longer minelife.  Time frames need to fall within Federal Government EIS

approvals

Olympic Dam Project Pre-Commitment

9

Mineral Resources Project Pipeline

10

* PACE Co-funded * PACE Co-funded

*Arckaringa (CTL) Beverley South (U3O8) *Bird-in-Hand (Au) Bramfield (Fe2O3) *Carrapateena (Cu-Au) Clinton (CTL) Crocker Well (U3O8) Flinders-Reliance (Zn) Four Mile(U308) FuturGas (CTL) Gum Flat (Fe2O3) Hawks Nest (Fe2O3) Hillside (Cu, Au) *Kalkaroo (Cu-Au-Mo) *Menninnie Dam (Pb-Zn-Ag) Mutooroo (Cu-Co) Mutooroo (Fe2O3) Oban (U3O8) Olympic Dam Expansion (Cu-U-Au-Ag) Poochera (Kaolin) *Portia (Au) Project Magnet Phase 2 (Fe2O3) Razorback (Fe3O4) Samphire (U3O8) Tripitaka (HM) *Tunkillia (Au, Ag) Warramboo (Fe3O4)

Major Mines Major Projects

• 1. Olympic Dam
• 2. *Challenger
• 3. Beverley
• 4. Middleback

Ranges

• 5. Leigh Creek
• 6. *Malu
• 7. *Angas
• 8. *Honeymoon
• 9. Jacinth-

Ambrosia 10.Beltana 11.White Dam 12.Cairn Hill 13.Iron Chieftain 14.Ankata 15.Kanmantoo 16.Beverley North 17.Peculiar Knob 18.*Wilgerup 19.Wilcherry Hill 20.Mindarie

Acropolis (Cu-U-Au-Ag) *Alvey (Pt, Pd) *Aphrodite (U3O8) Aristotle (Zn) Armchair (U3O8) Aroona 2 (Zn, Pb) Atacama (HM) *Baggy Green (Au) Bagot Well (Cu) Bald Hill Iron (Fe) *Barns (Au) *Barton West (HM) Becaroo (U3O8, REE) Big Lake 20 (U3O8) Big Lake 28 (U3O8) *Black Hills (Au) Blanchewater (U3O8) Blinman (Cu) *Blue Rose (Cu, Au) Bungalow (Fe3O4) Burra (Cu) Carrow (Fe) *Claude Hills (Ni) *Coolybring (Fe3O4) Deloraine (Au) *Dromedary (HM) *Emmie Bluff (Cu) Emmie North (Cu) Eurelia (Diamonds) Eurinilla Dome (Cu, Au) Flinders Island (Diamond) Giffen Well (Fe2O3) Glenrae (IOCG) Golf Bore (Au) Goulds Dam (U3O8) Greenpatch (Fe3O4) *Hercules (Fe3O4) Hicks Hill (Fe) Jamieson Tank (Mn) *Junction Dam (U3O8) *Jungle Dam (Ag, Au, Fe) *Kangaroo Dam (Pt, Pd, Au) Kenmore II (Ni, Cu) Kopi (Fe) Lady Jane (Au) Lilydale (Fe) Lock (Coal) Mainwood (Au) Malache (Zn, Pb) Maldorky (Fe) Melton (Cu, Au) Minbrie (Fe) Miranda (Cu) Mojave (HM) *Mongolata (Au) Monsoon (Au) *Moonta (Cu) Moorilyanna (Cu) Mount Brady (Fe, Cu, REE) *Mount Caroline (Ni, Cu, Pt, Pd) Mount Christie Siding (Cr2O3) Mount Cora (Fe) Mount Davies (Ni) Mount Distance (U3O8) *Mount Gunson (Cu, Co) Mount Torrens (Cu-U-Au-Ag) *Mount Woods (IOCGU) Mulyungarie (U3O8) Mutooroo Iron (Fe) Netherleigh Park (Cu) *Netley Hill (Cu, Mo) North Kalkaroo (Cu, Au) North Portia (Cu, Au) Notrab (HM) *Oakdale (Zn, Cu) Parara (IOCGU) Paris (Ag) *Parkinson Dam (Ag, Zn, Cu, Au) Pindari (Ni, Cr) Pollinga (Mn) Princess Royal (Cu) *Prospect Hill (Sn) *Pundinya (U3O8) Punt Hill (Cu, Au) Radium Hill (U3O8, Th, Ra) Sequoia (Fe, U3O8) Sheoak (Au, Ag) Shylock (Cu, Au) Skye (Au, Ag) Snaefell (Fe) Springfield (Diamond) *Stuart (IOCGU) Taurus (Pt, Pd, Cu) Telephone Dam (Pb, Zn) *Titan (Cu, Au) Tomahawk/Tunkillia area 191 (Au) Toondulya (Cu, Au) Torrens South JV (Cu, Au) Typhoon (Au) Typhoon (HM) Ultima Dam (Au, U3O8) Victory (U3O8, REE) *Vulcan (Cu, Au, U3O8) Weednanna (Pb, Zn, Ag, Cu, Au) Wheal Ellen (Zn, Pb, Ag) Willamulka (Cu, Au) Willy Willy (HM) Winjabbie East (Cu, REE) Wirrda (Cu, Au) * Yadglin (U3O8) Yanyarrie (Ba) Yarramba (U3O8) Zeus (Cu, Ni)

Major Prospects

* PACE Co-funded

20 mines 27 projects ~90 Major Prospects

10

Maiden Mineral Resource Announced

2011/2012



Minotaur Exploration Carey's Well Kaolinite - 16.3 Mt (meas.) bright white kaolinised granite yielding 8 Mt of -45micron kaolin within previously defined 47.2 Mt (inf.) of white to off-white kaolinised granite



Perilya North Moolooloo: 214 000 t at 34.4% Zn (ASX release 10.6.11)



Terramin Angus Sunter Deposit: 375 600 t at 3.8% Zn, 1.6% Pb, 15 g/t Ag ± Pb (ASX release 29.11.11)



Marmota Energy Saffron (Junction Dam): 4.36 Mt at 437ppm U3O8 (contains 1 510 t U3O8) (ASX release 18.11.11)



Western Plains Resources Peryhyn: 352.4 Mt sub bituminous Coal (ASX release 7.7.11) Lochiel North: 270 Mt Lignite coal (FY 2010 – 2011 Annual Report)



IMX Resources Snaefell Project: 109.8Mt at 30.13% Fe (ASX release 12.10.11)



OZ Minerals Carrapateena: 203 Mt at 1.31% Cu, 0.56 g/t Au, 270 ppm U, 6.0 g/t Ag (Carrapateena Mineral Resource Statement 14.4.11)



Lincoln Minerals Gum Flat Iron ore: 1.8 Mt Hematite Indicated Resource at 50.5% Fe (45% Fe cut-off) including 0.9 Mt DSO hematite at 54.2% Fe (50% Fe cut-off)



Havilah Resources Maldorky Iron Ore: Indicated Resource of 147Mt of 30.1% Fe at a cut-off grade of 18% Fe



Centrex – WISCO – Eyre Iron JV Fusion Magnetite: 319.4 Mt at 20.1% Magnetite (ASX release 31.8.11) Bungalow: 103 Mt at 25.3% Magnetite (ASX release 10.5.11) Carrow: 159 Mt at 27.8 % Magnetite (ASX release 1.6.11)



Sumitomo - Minotaur JV Mutooroo Magnetite: 1.5 Bt at 15.2% DTR magnetite (ASX release 24.11.11)

12

SA Major Resource Projects

15

Future of Iron Ore in South Australia

16 16 16

Developments in the Braemar Province

Proposed $7+ Billion Investment in major Iron Ore Projects

17

Major Mines, Projects and Ports Eyre Peninsula

18

Future of Iron Ore in South Australia

19 19 19

MINES *Olympic Dam: BHP-B *Malu (Prominent Hill Open Cut): Oz Minerals Ankata (Prominent Hill Underground): Oz Minerals Kanmantoo: Hillgrove Resources PROJECTS

*Carrapateena: Oz Minerals Hillside: Rex Minerals *Kalkaroo: Havilah Resources Mutooroo: Havilah Resources Olympic Dam Expansion: BHP-B PROSPECTS

North Portia: Havilah Resources Punt Hill: Monax

* PACE Co-funded

Copper

Hillside Conceptual Pit

Olympic Dam

(1976)

Prominent Hill

(2001)

Hillside

(2009)

Carrapateena

(2006)

Source: MinEx Consulting Feb 2010

Globally competitive in new Cu discoveries

Olympic Dam Total Resource 9 129 Mt at 0.86% Cu, 0.027% U3O8, 0.32 g/t Au and 1.48g/t Ag Total Ore Reserve 500 Mt at 1.84% Cu, 0.057% U3O8, 0.76 g/t Au and 3.41 g/t Ag Prominent Hill Total Resource (including Ankata and Malu) – 214.9 Mt at 1.23% Cu, 0.5 g/t Au, 2.8 g/t Ag Production 2010–11 (contained metal in concentrate) – 105 751 t Cu, 191 708 oz Au, 530 568 oz Ag Carrapateena Inferred Resource 203 Mt at 1.31% Cu, 0.56 g/t Au, 6.0 Ag, 270 ppm U3O8 Hillside Prospect Inferred Resource 330 Mt at 0.8% Cu equiv ( including 116 Mt at 1.2% Cu Equiv)

Iron Oxide Copper Gold Deposits

Tonnes & Grade for recent Discoveries

Copper Deposits >0.5 Mt Cu-eq found 1999-2011

25

Grade (% Cu) Pre-Mined Resource (Mt of Ore)

Source: MinEx Consulting March 2012

Copper Only

Prominent Hill

(289 Mt @ 1.01% Cu)

Carrapateena

(203 Mt @ 1.31% Cu)

Hillside

(217Mt @ 0.68% Cu)

Kalkaroo

(125 Mt @ 0.77% Cu)

Weighted Average Size World 625 Mt @ 0.58% Cu = 3.65 Mt Cu South Aust 208 Mt @ 0.96% Cu = 2.00 Mt Cu

$0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11

Billions

New Mine production from existing development projects Production from mining operations existing in 2012 MINERAL PRODUCTION - SOUTH AUSTRALIA ACTUAL (1996-97 and forecast 2012-20) Actual Mineral Production 1996-97 to 2010-11

SA Oil and Gas Factoids

• Cooper Basin JV’s A$11 billion.
• Snowy Mountains scheme $8 billion at current

prices.

• $164 billion of LNG projects under development.
• 63% of total resource sector investment.
• Australia will be world’s biggest LNG

exporter by 2020.

• This will make Australia a global leader in three

commodities, coal, iron ore and natural gas.

South Australia’s Energy Portfolio

Proven plays: Oil & gas Cooper-Eromanga & Otway Leigh Creek Coal Prospective plays : Oil & gas - Officer and Arckaringa basins Oil & gas - offshore Bight Basin Oil & gas - offshore Otway Basin Shale gas - Cooper and other basins Low K reservoir (tight) gas - Cooper Basin Coal seam gas - Eromanga Basin Underground coal gasification – Arckaringa, Walloway Basins Coal mining - Arckaringa & Tertiary basins for power generation, syngas and synfuel Hot rock engineered geothermal systems (EGS) - eastern South Australia Hot (geothermal) sedimentary aquifers

• eastern South Australia

The development of unconventional gas is proving to be positively transformational for North American economies and Australia is a first mover in developing shallow coal seam gas as feedstock for liquefied natural gas (LNG)

• export. In addition, when developed to

best practice standards for well integrity, gas is a much less carbon intensive (than coal) source of electricity supplies. ... more than 20 companies/Joint Ventures are now focusing on exploring unconventional gas plays with giant discovery potential in South Australia. This is in addition to exploration for conventional oil and gas plays in proven producers and the State’s frontier basins. With such diversification, the chance at least one of these unconventional gas plays will lead to a major discovery is

• high. ...

SA Oil and Gas Factoids

• The interest in the Great Australian Bight by BP is also
• important. Australian oil production is falling and

Australia needs to find a new oil basin. It might be

• ffshore South Australia.

34

DMITRE

Bringing Resources & Energy portfolios together with Manufacturing Innovation & Trade

35

Manufacturing in transition

Hon Tom Koutsantonis MP Minister for Manufacturing, Innovation and Trade Minister for Mineral Resources and Energy Minister for Small Business South Australia has a strong and proud history of manufacturing, which has been central to the well-being of South Australians since the 1940s. Today, South Australia is an economy in transition. Manufacturing has a crucial role to play in the transformation of our economy. We must ensure a strong manufacturing sector is front and centre in our future.

36 Hon Tom Koutsantonis MP Minister for Manufacturing, Innovation and Trade Minister for Mineral Resources and Energy Minister for Small Business The Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) brings together in one department the varied energy-related responsibilities of government. These include investment for and exploration of energy resources; the legislative and institutional framework for energy markets; delivery of energy services in remote areas; and South Australia's efforts in identifying and promoting renewable energy projects.

ENERGY – Managing South Australia’s energy business

37

Invest SA established under the guidance of the Economic Development Board

38 Hon Tom Koutsantonis MP

Minister for Manufacturing, Innovation and Trade Minister for Mineral Resources and Energy Minister for Small Business

China is poised to be the largest economy in the world. More so than ever before, our State’s future is intimately linked to the growth of China, and will be influenced by how well we work with our friends in China to strengthen this partnership. I am keen to ensure that this Government’s support is coordinated and aligned to assist the key business sectors to build stronger partnerships with China and grow this opportunity.

Sean Keenihan

President Australia China Business Council SA Branch Through participating in the development of the China Strategy, interested parties have the opportunity to:

• hear from industry and government opinion leaders on

key opportunities

• participate in seminars led by industry and government
• pinion leaders covering emerging trends in China and

market opportunities and challenges associated with the bilateral relationship

• contribute to the State Government’s thinking on the

priorities and challenges for the State’s engagement with China

• network with and develop contacts that will support your

engagement with China and provide guidance on how to

• perate successfully in the Chinese market.

39 Jay Weatherill Premier of South Australia

India is important to South Australia’s future. Our State’s relationship with international partners will be vital to our economic growth and future prosperity – and India is at the top of the list of the partners that can contribute most to South Australia. This paper seeks your input on:

• Which Indian states should South Australia target?
• Which industry sectors should be developed?
• Key commercial opportunities
• Processes to ensure relationships are developed

and effective

• Critical initiatives in the areas of high-value

manufacturing, resources services and technology, clean technology and knowledge intensive services.

40

PACE 2020

Deep Exploration Technologies CRC

DETCRC Partnership

New Drill Testing and Training Facility Geochemical and alteration vectoring Development of 3D basin cover

• ver Eastern Gawler IOCG province

Hylogged holes within IOCG belt Hylogged holes intersecting basement

Australian Copper Conference 2012

Mineral Potential Modelling

Olympic Dam Carapateena

IOCG±U Potential – Uses

– Exploration site selection – Key Ingredients Mapping – Mineral Potential Models – 3D visualisation

10x vertical exaggeration

2 km

Alteration Voxet

Sericite Hematite Magnetite Hematite – Magnetite K-Feldspar Albite Sericite – Chlorite Chlorite 500 m x 500 m x 10 m cell size

3D Mineral Mapping of IOCGU deposits

Frome Embayment TEMPEST™ AEM

 Collaboration with

Geoscience Australia. Cost: $2.5M (PACE $0.25M).

 Northern Murray Basin to

north of Flinders Ranges: 95 000 km2 total area, 25 000 line km

 Available for download

www.ga.gov.au

GSSA PROJECTS

Mapping salinity gradients using TEMPEST™ AEM: New insights into the formation of sand-hosted uranium

• deposits. Michaelsen, B. and Fabris, A.

1. delineates the broad architecture of the Poontana Trough 2. helps identify structures in the Beverley-Paralana area 3. delineates aquifers containing freshwater & saline water 4. provides vectors of aquifer flow 5. demonstrates that sand-hosted U deposits are located where fresh groundwater mixes with saline groundwater

PROOF OF CONCEPT ONLY

SOURCE-ROCK TARGETING OF IOCGU DEPOSITS

48

• Woomera Prohibited Area Coordination Office (WPACO) established

In June 2011, regular meeting schedule 12 staff, primarily Canberra-based, multi-Agency representation including DMITRE, DefenceSA; Defence; Airforce-Test Range; RET; Finance & Deregulation One Stop Shop for non-Defence access to WPA

• WPACO website launched

http://www.defence.gov.au/woomera/

• Access Zones defined

and published on SARIG

• New PACE Gawler

Craton project over WPA

Opening up the Woomera Prohibited Area

49

• Exclusion Windows 2012-13 Calendar published

Example: next exclusion period for Amber 2 (trajectory corridor) is 20 Aug to 2 Sept

• Industry Liaison Meetings established

held every month in Adelaide Opportunity for one-on-one meetings with any party with interests in WPA

• Template Deed of Access for Exploration released for

consultation Workshops held in Adelaide and Canberra Over 60 participants, 18 detailed written submissions

• DMITRE has resumed processing pending ELA’s

(two thirds of backlog processed) Opening up the Woomera Prohibited Area

50

COMING SOON….

• New Woomera Geoscience Survey Program
• End to Moratorium on issuing Deeds of Access to new explorers
• Signing of the MOU which articulates co-existence principles,

management protocols and consultative mechanisms

• Advisory Board with Independent Chair appointed
• Technical Reference Group with Industry representation established
• Inspection & Compliance capability rolled out (Air Force

collaborating with DMITRE)

Opening up the Woomera Prohibited Area

52

PACE Mining on-line ELA approvals tracking under development

New Tenement Status Widget Once Tenement Status is selected from the Main Menu Toolbox the new Tenement Status Widget appears on screen. Step 2: Client selects an available tenement map layer

• Selected tenement map layer automatically turns on in

SARIG

• Current mouse action is changed to Tenement Status

Step 3: Client Selects a tenement polygon

Tenement Status

Select Tenement Layer: The tenement status tool returns a list of current tenement layers where status information is available.

New widget allows expansion of additional Tenements

Tenement Applicant Status Report: The tenement applicant report will open a new tab displaying all applications for selected applicant.

Tenement Application Report: Client selects the tenement map layer then accesses (ajax filtering) a list of applicants from TMS (Tenement Management System) to view a crystal web status report of all applications for selected applicant.

Status Results

2012/0043 Received & Validated Assessme nt Offer Receive d Offer Receive d

Licensed Granted

Date Completed Date Started 21/09/2012 12/10/2012 02/11/2012 16/01/2013 Target Completion 20/07/2012 Applicant Report Application Status Report More Information 02/11/2012 01/07/2012

New Tenement Status Results Widget Once a tenement polygon is selected the selection will be highlighted in red and the new Status results widget appears on screen displaying:

• Status bar
• Basic information: Tenement File reference, Dates
• Help link to SARIG online help website (blue question mark)
• 3 buttons
• Application Status Report – new tab opens to crystal web

report of the selected application with all details

• Applicant Report – new tab opens to crystal web report of

all applications current for selected tenement - applicant

• More Information: Link to DMITRE website page ,

detailing the process and descriptions of the tenement status. Selected Tenement

55

Infrastructure

57 Infrastructure Channel 26 New Map Layers

Infrastructure

 RESIC Demand Study  DMITRE Case Management of Centrex-WISCO deep water

port development - Port Spencer for iron ore exports.

 Flinders Ports consortium project at Port Bonython  Flinders Ports Port Pirie options for bulk minerals export.  Infrastructure is going to continue to need private sector

support, and the government will work actively to alert investors to opportunities and to smooth the way to timely approvals for agreed projects.

58

Infrastructure

59 Infrastructure Channel 26 New Map Layers

RESIC – Resources and Energy Infrastructure Demand Study

60

• $6 billion from 2010-11 to 2020-21
• Includes $5.6B from Minerals Resource Rent Tax (MRRT)

— Stream 1: Commitments made in 2010 — Stream 2: Regional Infrastructure Planning & Economic Infrastructure Projects $4m in 2011-12 $6m in 2012-13 for planning — Stream 3: Part of Regional Development Australia Fund

• Guidelines have been recently released

Regional Infrastructure Fund

South Australia Regional Mining and Infrastructure Plans

• Three plans focussed on infrastructure planning to support

mining

• Integrated across regions:

– Eyre and Western – Far North – Yorke and Mid North / Braemar

• Total $1.5m funding; $1.1-$1.3m for contractor funding
• Social, economic and environmental impacts
• June 2013 for final Plans

CONCLUSION 30

 600  1000

63