Is there life after Olympic Dam
Dr Paul Heithersay
Rural Solutions SA
October Journal Club
Let’s talk about Olympic Dam
100
80
60
40
20
Norilsk Camp (Nickel)
Pebble
Oyu Tolgoi Camp
Collahuasi Camp
Grasberg Camp
Escondida
Olympic Dam
0
Chuquicamata #

4th largest copper deposit in
the world
120
Andina #

Largest Uranium Resource in
the world
4th largest Copper Resource in
the World
4th largest Gold Resource in
the World
El Teniente #

Lets talk about Olympic Dam


Australia’s
largest
underground
mine,
~ 300 km tunnels
Roxby Downs
~ 4500 people
4
Olympic Dam Expansion
Olympic Dam Announcement
“alternative, less capital-intensive design of the Olympic Dam
open-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
our longer term development plans for this unique, world class
ore 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
ores than currently mined
Potentially leading to longer minelife.
Time frames need to fall within Federal Government EIS
approvals
Olympic Dam Project Pre-Commitment
11
Mineral Resources
Project Pipeline
20 mines
Major
Mines
1.
2.
3.
4.
5.
6.
7.
8.
9.
Olympic Dam
*Challenger
Beverley
Middleback
Ranges
Leigh Creek
*Malu
*Angas
*Honeymoon
JacinthAmbrosia
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
Major Projects
27 projects
*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 Prospects
~90 Major
Prospects
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)
12 12
** PACE
PACE Co-funded
Co-funded
* PACE Co-funded
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)
Report)
Lochiel North: 270 Mt Lignite coal (FY 2010 – 2011 Annual

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)
14
SA Major
Resource
Projects
17
Future of Iron Ore in South Australia
18 18
Developments in the Braemar Province
Proposed $7+ Billion Investment in major Iron Ore Projects
19
Major Mines, Projects and Ports
Eyre Peninsula
20
Future of Iron Ore in South Australia
21 21
Copper
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
Hillside Conceptual Pit
Globally competitive in new Cu discoveries
Olympic Dam
(1976)
Prominent Hill
(2001)
Carrapateena
(2006)
Hillside
(2009)
Source: MinEx Consulting Feb 2010
Iron Oxide Copper Gold Deposits
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)
Tonnes & Grade for recent Discoveries
Copper Deposits >0.5 Mt Cu-eq found 1999-2011
Grade (% Cu)
Copper
Only
Weighted Average Size
Carrapateena
(203 Mt @ 1.31% Cu)
World
625 Mt @ 0.58% Cu = 3.65 Mt Cu
South Aust 208 Mt @ 0.96% Cu = 2.00 Mt Cu
Prominent Hill
(289 Mt @ 1.01% Cu)
Kalkaroo
(125 Mt @ 0.77% Cu)
Hillside
(217Mt @ 0.68% Cu)
Pre-Mined Resource (Mt of Ore)
Source: MinEx Consulting March 2012
27
MINERAL PRODUCTION - SOUTH AUSTRALIA
ACTUAL (1996-97 and forecast 2012-20)
$11
$10
$9
$8
New Mine production from
existing development
projects
Billions
$7
$6
$5
$4
$3
$2
$1
$0
Actual Mineral
Production
1996-97 to 2010-11
Production from
mining operations
existing in
2012
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
offshore South Australia.
DMITRE
Bringing
Resources &
Energy
portfolios
together with
Manufacturing
Innovation &
Trade
36
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.
37
ENERGY – Managing South Australia’s energy business
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.
38
Invest SA established
under the guidance of the
Economic Development Board
39
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
opinion 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
operate successfully in the Chinese market.
40
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.
41
PACE 2020
42
Australian Copper Conference 2012
Deep Exploration Technologies CRC
DETCRC Partnership
New Drill Testing and Training Facility
Geochemical and alteration vectoring
Development of 3D basin cover
over Eastern Gawler IOCG province
Hylogged holes within IOCG belt
Hylogged holes intersecting basement
Mineral Potential Modelling
IOCG±U Potential – Uses
– Exploration site selection
– Key Ingredients Mapping
– Mineral Potential Models
– 3D visualisation
Olympic Dam
Carapateena
3D Mineral Mapping of IOCGU deposits
Hematite
Magnetite
Hematite – Magnetite
2 km
Albite
K-Feldspar
Sericite
Sericite – Chlorite
Chlorite
500 m x 500 m x 10 m cell
size
10x vertical exaggeration
Alteration Voxet
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
SOURCE-ROCK TARGETING OF IOCGU DEPOSITS
PROOF OF
CONCEPT ONLY
Opening up the Woomera Prohibited Area
• 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
50
Opening up the Woomera Prohibited Area
• 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)
51
Opening up the Woomera Prohibited Area
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)
52
PACE Mining on-line ELA approvals
tracking under development
54
Tenement Status
Select Tenement Layer:
The tenement status tool returns a list of current
tenement layers where status information is
available.
New Tenement Status Widget
Once Tenement Status is selected from the Main Menu
Toolbox the new Tenement Status Widget appears on screen.
Tenement Applicant Status Report:
The tenement applicant report will open a new tab
displaying all applications for selected applicant.
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 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.
New widget allows expansion of additional Tenements
Selected
Tenement
Status Results
Received
&
Validated
01/07/2012
2012/0043
Date Started
Target Completion20/07/2012
Assessme
nt
21/09/2012
Offer
Receive
d
02/11/2012
Offer
Receive
d
Licensed
Granted
02/11/2012
16/01/2013
Date Completed
Application Status Report
12/10/2012
Applicant Report
More
Information
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.
57
Infrastructure
Infrastructure Channel
26 New Map Layers
59
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.
60
Infrastructure
Infrastructure Channel
26 New Map Layers
61
RESIC – Resources and Energy
Infrastructure Demand Study
62
Regional Infrastructure Fund
•
$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
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
65