Archived News for Industry Professionals

The South Australian Government has released a discussion paper on the recommendations developed by the Resources & Energy Sector Infrastructure Council (RESIC) to promote growth of the South Australian minerals and energy sector.

The Queensland Mines and Quarries Safety Performance and Health Report 2010-11 is available at: www.mines.industry.qld.gov.au/safety-and-health/safety-performance-health-reports.htm

Australia’s largest gold miner, Newcrest Mining has reported an underlying profit of $611 million for the half year to December, 17% higher than for the same period last year.

Mining giant Rio Tinto has announced it will commit a further $3.17 billion to the major expansion of its Pilbara iron ore operations in Western Australia.

Senex Energy Limited, 60% owner and operator of the PRL 15 joint venture, has commenced drilling at the Growler-8 appraisal well in South Australia.

Growler-8 is the seventh well in the joint venture’s 11-well drilling program in PRL 15 and PEL 104, comprising five appraisal wells and six exploration wells targeting the Birkhead channel play on the western flank of the South Australian Cooper Basin.

The well is located on the western limb of the Growler oil field, 1,200 metres to the west of the Growler-1 discovery well and 600 metres southwest of Growler-7.

The Growler-8 appraisal well will seek to extend the mid-Birkhead channel reservoir encountered in the nine Growler wells drilled to date, seven of which are now in production. The well will also examine the potential of the lower Birkhead channel sand prognosed to be developed at this location.

The other partner in the joint venture is Beach Energy Limited, which holds a 40% interest.

Core Exploration has announced it will begin its diamond drilling program on the Yorke Peninsula minerals project in South Australia with the arrival of two diamond drill rigs at the site.

Core’s Managing Director, Stephen Biggins, said the commencment of the program followed extensive lead-up exploration work on the Yorke Peninsula project since the company listed on the Australian Securities Exchange 12 months ago.

The diamond drilling program comprises a total of 2000-2500 metres of drillingh, with holes to drill in excess of 100m into the basement target rocks.

“Our substantial set of six drill targets are coincident with the 12km long Palace structural zone within the company’s Yorke Pensinsula tenement. The sieable gravity feature have an inconsistent magnetic character which fits well with Core’s interpretation of these drill targets as structurally controlled, dense, IOCG (Iron Oxide Copper Gold) alteration with fluctuating magnetite and hematite content.”

Core’s large-scale gravity and magnetic drill targets are hosted in an analogous geological setting to Rex Minerals’ Hillside Project(inferred and indicated resource of 217Mt at 0.7$ copper and ).2%g/t gold) on the adjacent tenement.

Mr Biggins said that drilling will take approximately one month to complete, with first assay results expected to be reported in April.

“Our geologists will be looking at the new drill core for the same style of mineralisation and alteration as seen nearby at Rex’s Hillside discovery.”

Construction giant Theiss has won a $325 million contract from coal seam gas explorer and producer QGC to construct gas-processing facilitates for the Queensland Curtis LNG Project (QCLNG).

Professor Thomas Maschmeyer, Professor of Chemistry and ARC Future Fellow at the University of Sydney, has been awarded the Royal Australian Chemical Institute’s 2011 Applied Research Medal For his work on catalysis and sustainable processes, including developing methods to create low carbon crude and heavy fuel oil substitutes.

The South Australian Government has launched a discussion paper with an aim to ‘allow South Australians a voice in building future investment in key nation-building projects’.

ANZ has released its Job Advertisement Series for January, finding that the number of advertised places has boomed in the country’s mining states, while recording a stablising of advertisements in non-mining regions.

Theiss has announced it has won a six-year mining contract to extend mining operations at OZ Mineral’s Promionent Hill Copper and Hold Mine in South Australia.

Downer EDI Limited has been awarded a six year magnetite mining contract with Karara Mining Limited (KML) for the provision of services at the Karara Iron Ore Project in Western Australia.

Embattled uranium miner, Energy Resources of Australia (ERA) has released its full year results, delivering a $154 million loss for 2011 and a downgrade in its production guidance.

BHP Billiton has announced it has approved $855 million in funding for the initial works at its Port Hedland harbor facilities.

The Western Australian Government has announced two shortlisted proponents to deliver a suite of major projects to improve and secure vital wastewater infrastructure in the Pilbara region.

The Western Australian Minister for Mines and Petroleum, Fisheries and Electoral Affairs Norman Moore has announced his decision to not seek pre-selection by the Liberal Party for the next State Election due in March 2013.

Mining giant Xstrata has released a draft Environmental Impact Statement (EIS) for its planned $270 million expansion of its McArthur River Mining (NRM) operations, with the company saying the project will ‘deliver more benefits for the Northern Territory than first thought’.

The Queensland Government’s Safety in Mines Testing and Research Station (Simtars) has developed a fully automated mobile mine gas laboratory that can be rapidly deployed in the event of a mine emergency.

Investment in the WA resources sector continues to surge and will be the key driver of growth in the WA economy for 2012-13, according to a report by the Chamber of Minerals and Energy of Western Australia (CME) in conjunction with KPMG.

The December 2011 edition of the WA Resources and Economics Report  shows the resources sector continues to provide stability to the economy and is keeping unemployment down.

CME Chief Executive Reg Howard-Smith said seven projects – one energy, five mineral mining and one infrastructure – were completed in the six months to October 2011.

“A number of major projects are expected to begin production over the next two years, while demand for iron ore and natural gas remains very strong,” Mr Howard-Smith said.

“Labour demand in the WA resources sector has contributed to the lowest unemployment in the country at 4.3 per cent and direct employment in the resources sector cracked the 100,000 mark for the first time in December.”

“Growth in exports is forecast at a rapid pace of 8.56 per cent in 2011/12, with even stronger growth expected in 2012/13, in line with higher production of LNG over the medium term.”

The largest increases in production were recorded for iron ore (8.9 per cent) and titanium minerals (22.6 per cent). However the average export unit value of iron ore fell 5.8 per cent during the quarter and marks the second consecutive quarter in which the export unit value has fallen.

The European debt crisis has seen investors flock to gold which continues to be a sensible bet with the gold price increasing by 14.1 per cent during the quarter.

Mr Howard-Smith said an increase in uranium exploration of 28 per cent showed the market was recovering from the Fukushima nuclear incident.

“News of the Federal Labor Party agreement to overturn its ban on uranium exports to India and a slight relaxation by WA Labor its uranium policy may also continue to see a positive impact on exploration in 2012,” he said.

Other key findings in the December 2011 WA Resources and Economic Report:
• The WA resources sector continues to out-perform the All ASX and S&P/ASX 300 indexes
• Mineral exploration accounted for almost half of the total $970million exploration expenditure in WA, rising by 7 per cent to $482million
• Gross State Product is expected to grow to 4.3 per cent in 2011/12, climbing to 6 per cent in 2012/13 and 2013/14
• At the end of October 2011, there were 40 projects at an advanced stage of development in WA. Total capital expenditure on these projects was at a record $147.5billion – an increase of $38billion or nearly 35 per cent from April 2011

The December report also identifies key challenges for infrastructure development to support the resources sector.

The Resources Safety unit within the WA Department of Mines and Petroleum is developing  a draft code of practice  to help identify hazards and risk factors associated with drilling operations.