#Official Mining Thread

[Maximus]

An encouraging article...

BHP "determined'' to push ahead with Olympic Dam but only after new mining techniques are thought through
by: CHRISTOPHER RUSSELL
From: The Advertiser August 21, 2013 2:26PM

BHP Billiton is "absolutely determined" to find a way to go ahead with expanding Olympic Dam, the company's top executive in South Australia says.

There were two key objectives for BHP in South Australia, asset president of Olympic Dam Darryl Cuzzubbo told a mining conference in Port Pirie.

In his first public speech since taking command in SA, Mr Cuzzubbo said the priority was to make sure the existing Olympic Dam copper/uranium/gold operation was running at world-leading efficiency standards.

If not, he would have no credibility when asking the BHP Billiton board to fund the expansion.

Secondly, the key was to make the economics of the expansion work.

"We are absolutely determined to find the best way to expand Olympic Dam that competes against other investment opportunities," he said.

continues...

[rhino]

From ABC online:

Braemar iron ore mining and export plan given SA major project status

Tue 24 Sep 2013

Major development status has been given to a proposed mining project, transport corridor and floating port in northern South Australia.

The $5 billion Braemar bulk export project includes planned a 385-kilometre transport route between upper Spencer Gulf and outback iron ore resources in the state's north-east.

The deposits are from an area just outside Broken Hill in New South Wales and extending about 250 kilometres to the west.

Deputy Premier and Planning Minister John Rau said a floating processing facility was planned off Yorke Peninsula, north of Wallaroo.

He said the corridor would be through pastoral land and include slurry pipelines to move the ore.

"It will be up to the people proposing the project to make arrangements for access to relevant land, but this is the approval process so we're now going to go through an environmental impact process and various other processes to make sure this is an appropriate project to get a final sign-off," he said.

"Major development status allows for the most sophisticated and thorough set of planning approvals available within our planning regime.

"There is a strong level of scrutiny applied to the project's assessment, with significant consultation requirements."

Mineral Resources Minister Tom Koutsantonis said the project would allow for an eight-fold increase in the volume of iron ore being exported.

"When fully developed the project has the potential to increase the state's exports of iron ore concentrate from 12 million to more than 100 million tonnes per year," he said.

Gordon Toll from Braemar Infrastructure said about $3 billion would need to be raised before the project could go ahead.

"We're a private company, we'll probably stay that way for some time because one of our major sources of finances will be private equity, private equity groups, there is a lot of money out there for private equity, investment groups looking for something just like this to invest in," he said.

[zippySA]

Port Bonython EIS out for comment - one step closer to a deep water port to facilitate some reality into the mining potential of SA. Hope it gets built and we see some projects move into construction around it.

http://www.spencergulfportlink.com.au/

[Maximus]

I wasn't sure whether to post this article here or in The Pub...

CSIRO scientists have found gold growing on gum trees near Wudinna on the Eyre Peninsula
by: Katrina Stokes
From: The Advertiser

YOU won?t believe it when you read this - scientists have found gold growing on gum trees near Wudinna on the Eyre Peninsula.

In an Australian-first breakthrough, a team of CSIRO scientists discovered eucalyptus trees near the country town draw up tiny gold “nuggets” from the earth via their root system and then deposit the valuable metal on their leaves, bark and branches.

While scientists have found gold on trees before, it was never actually known how it got there.

full article...

[Hooligan]

So money does grow on trees?

[Will]

Some good news from The Advertiser:

Giant $4.5b Central Eyre Iron Project gets federal major project status

POLITICAL REPORTER TORY SHEPHERD •
The Advertiser •
April 04, 2014 9:30PM

THE Federal Government will fast-track a $4.5 billion mining project touted as a saviour for the Eyre Peninsula and a huge boost for the state’s economy.

The Central Eyre Iron Project has been granted major project facilitation status – clearing the way for it to proceed and eventually employ about 2000 people at its peak . and

It is also expected to generate major economic benefits for Wudinna and the surrounding area and could bring in up to $3 billion a year as it exports iron ore to Asia.

Iron Road managing director Andrew Stocks will follow Prime Minister Tony Abbott to Asia next week to woo investors.

Mr Stocks and his colleagues will head to China to speak to local investors and others from Korea and Japan with the imprimatur of the PM, who leaves for Asia today.

Iron Road has spent millions of dollars over several years to build momentum for what will be the nation’s largest magnetite iron ore project.

It is hoped the project will fill some of the gap caused by BHP Billiton’s shelving of the Olympic Dam expansion and deliver a much-needed boost to the economy by 2017, when Holden stops making cars in South Australia.

Mr Stocks said the company had spent $100 million on a two-year feasibility study and now wanted to “move with some haste” through approval processes so it could secure finance.

Then it would be able to build a railway line, a deep-water port and upgrade power and water supplies in the region.

“We want to get it happening as fast as we can. Time is of the essence,” Mr Stocks said, adding that now the feasibility study was done, it was the approvals process that could hold up the project.

The project already had major project status through the State Government and the addition of federal major project facilitation status would steer the company swiftly through processes at both levels and help it find Asian investors.

“It is very important for government to lead business, particularly in Asia,” Mr Stocks said. “We work in parallel here, but it doesn’t work that way in Asia.”

SA Liberal frontbencher Christopher Pyne lobbied his colleagues to ensure the mine became a major project. He said the move would remove hurdles and red tape and that Deputy Prime Minister and Infrastructure Minister Warren Truss would help link the company to investors and foreign governments.

“Giving it major project facilitation status means the Federal Government will put its shoulder to the wheel for the company and make sure it’s not bogged down in red tape,” Mr Pyne said.

He said it was hard to raise so much capital without help and the status would remove “potential minor irritants” that could slow down the project.

He also said SA was the only state that was resistant to the idea of “one-stop shops” for environmental approvals to streamline similar projects.

The 6km-long open-pit magnetite iron ore mine would be able to produce more than 20 million tonnes of ore a year. It is expected to operate for at least 25 to 30 years.

Mr Stocks said while most people were on side, he had no doubt people would raise concerns, particularly about environmental impacts.

“People will be watching to make sure we’re guided properly. I have no problem talking to people who are concerned about aspects of the project,” he said.

About 2000 people will be employed at the site during construction, after which a workforce of 600 to 700 people will be needed.

Wudinna mayor Tim Scholz stepped down from his position last year to work with Iron Road, saying the company could save the Eyre Peninsula community because it would lead to new infrastructure and jobs. He said at the time it was important to maximise the benefits for the area and make sure there were jobs for locals.

“The company wants the workforce to be as residential as possible and this will present an opportunity for a residential workforce and a drive-in, drive-out workforce from across Eyre Peninsula,’’ he said.

In 2012, Iron Road announced plans for a deep-water port at Cape Hardy, north of Tumby Bay, on the Eyre Peninsula as part of the required infrastructure.

It will also include a 150km infrastructure corridor for a railway line, power and water lines to connect the mine to the port. It is understood some properties may need to be bought to allow the corridor to proceed, but the company does not have compulsory acquisition rights.

The project will be the only one with federal major project facilitation status in SA. Other projects with status include major mining projects, rail routes and natural gas plants, an offshore port and coal export terminals.

[skyliner]

Saw this on the news in BRISBANE! Pretty excited overall in the report. Hope it goes ahead. 6km long open cut of iron ore is pretty staggering to conceive - will be pushed along by the continued Chinese desire for the ore.

However. I watched a doco about the Chinese economy on 7th and spoke of impending bubble looming as export income too low as against production levels.

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

[Will]

From the Advertiser:

New MD as IMX makes SA home

CAMERON ENGLAND •
The Advertiser •
April 08, 2014 9:50AM

IMX Resources has appointed Gary Sutherland as managing director and will move its head office to Adelaide.

The iron ore miner has employed Mr Sutherland, who was previously managing director of Flinders Mines and has held executive positions with BHP Billiton and Pasminco.

Derek Fisher has moved into the role of non-executive chairman, while acting managing director John Nitschke will remain on the board as a non-executive director.

Dr Fisher said the move to Adelaide recognised the company’s increasing South Australian focus.

“The company’s Australian activities have become increasingly South Australian centric and it is only appropriate that we now base our head office in Adelaide,’’ he said.

“We are delighted to have secured someone of Gary’s experience and ability to lead the company in this new phase of its evolution.

“His recent experience in the iron ore sector and his proven strategic, corporate and technical abilities will stand us in excellent stead as we move forward.

“Gary comes to IMX at an exciting time, following the recent approval of the Phase 2 extension of the Cairn Hill operation, leveraging off our strong operating track record and established infrastructure network.’’

IMX last week decided to extend operations at its Cairn Hill mine to mid-2015 and late last week said a new hematite iron ore find at its Mt Woods project presented an opportunity for direct shipping ore developments.

[JamesXander]

Saw this on the news in BRISBANE! Pretty excited overall in the report. Hope it goes ahead. 6km long open cut of iron ore is pretty staggering to conceive - will be pushed along by the continued Chinese desire for the ore.

However. I watched a doco about the Chinese economy on 7th and spoke of impending bubble looming as export income too low as against production levels.

ADELAIDE - TOWARDS A GREATER CITY SKYLINE

The federal government wants/needs this Iron Ore project to go ahead. If this were within WA's borders it wouldn't have received Fed Gov Major Project status.


I still believe this won't go ahead. Its just too big & complex a project in a part of mining that is very bearish. The Iron Ore glut is going to hit soon (hello FMG, BHP & RIO all expanding IO output, throw in Roy Hill and its not looking good).

Not to mention this is a M IO project, the only other one in Australia on a large scale is Karrara, which is losing money hand over fist at the moment.

[JamesXander]

Also of interest is after all the articles above about Rex signing with the Chinese...nothing eventuated. Now we have the South Koreans apparently in the picture. You would think these positive developments would have a positive impact on Rex's share price right? No, the company is currently trading about $30-40m above its cash holdings. This is a penny dreadful at the moment.


I've spent a lot of time researching this company and I still find it concerning they keep pushing out their time frames. The BFS was due quite some time ago, the government approvals were meant to come out right after the election. Construction was meant to start now.


Something isn't right about this project. A director hasn't bought a share on market for many years now, despite it being at near record lows yet so close to a final decision point.


As I've said before I want this project to go ahead, I want all these major SA projects to go ahead. I just think we keep getting our hopes up because our government keeps throwing Major Project status at anything that has a pretty drawing. The reality is we do not currently have even 1 major mine that is in reality even close to being developed (Happy to be proven wrong).

Our brightest hope is that they develop the technology to transport that ore from OD safely and just on with it. + Hopefully they hit a new saudi Arabia in the Bight.

[rhino]

Woomera bill passes to free up vast outback mineral resources

The South Australian Government has welcomed the passage of federal legislation freeing up the potential mineral resources in the Woomera Prohibited Area.

The defence zone covers 127,000 square kilometres and Geoscience Australia thinks it contains 62 per cent of known copper and 78 per cent of known uranium resources in Australia.

The legislation passed by Federal Parliament this week will create a regulatory framework for access to the zone, although defence will remain a primary user.

SA Mineral Resources Minister Tom Koutsantonis says it holds enormous economic promise for the state.

"Potentially there are $35 billion worth of projects in this area, now that's what we know. That all depends on feasibility, getting finance, making sure we can prove up the resources but the reality is we know that this area is one of the most prospective areas anywhere in the world, let alone Australia," he said.

"The region already hosts the Challenger gold mine, Prominent Hill copper-gold mine and Peculiar Knob, a high-grade iron ore mine.

"[It] means million of dollars in further investment and hundreds of jobs for South Australians."

[Waewick]

Watch us not benefit from uranium mining by legislating the value add to be done here.

[Will]

Watch us not benefit from uranium mining by legislating the value add to be done here.

How do we benefit from having the value adding done overseas?

[Aidan]

Watch us not benefit from uranium mining by legislating the value add to be done here.

How do we benefit from having the value adding done overseas?

There's not always as much value in value adding as most people assume, and investment in value adding adds to the commercial risk, so if BHP (or whoever) aren't allowed to sell the product they mine, they're likely to be discouraged from investing in mining.

[Waewick]

Watch us not benefit from uranium mining by legislating the value add to be done here.

How do we benefit from having the value adding done overseas?

We don't. That's the point of my poorly constructed post!