Australia-China Mineral Exploration Investment 2011
South Australia: Australia’s next mining frontier
– Achieving accelerated outcomes for exploration and
development projects in South Australia
Dr Ted Tyne
Executive Director
Mineral Resources, PIRSA
Australia-China Mineral Exploration Investment Seminar 2011
Outline of Presentation
1. South Australia’s Mineral and Energy
commodities
2. South Australia welcomes resource
partnerships with China
3. PIRSA’s geoscience partnership with
CNNC – Beijing Research Institute
of Uranium Geology
4. South Australia’s Mining Pipeline
Iron Ore – Uranium – Copper
and recent discoveries
5. Olympic Dam expansion
6. South Australia’s PACE 2020 initiative –
supporting growth and investment in
our mineral and energy resources
7. South Australia’s streamlined
Mining Approvals
Australia-China Mineral Exploration Investment Seminar 2011
Snapshot of South Australia’s Mineral Exploration,
New Mines and the Mining Pipeline
Australia-China Mineral Exploration Investment Seminar 2011
South Australia’s Major Mines 2011
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Olympic Dam Mine - Cu-Au-U
Beverley Uranium Mine - U
Middleback Ranges Mines –
Hematite and Magnetite
Leigh Creek Coal Mine – Thermal Coal
Challenger Gold Mine – Au
Beltana Zinc Mine – Zn
Angas Zinc Mine – Zn-Pb-Ag
Prominent Hill Mine – Cu-Au
Honeymoon Uranium Mine – U
Jacinth-Ambrosia Mine – Zircon
+ other mineral sands
White Dam Gold Mine – Au
Cairn Hill – Iron Ore – Au
Iron Chieftain – Iron Ore
Kanmantoo – Cu-Au
Beverley North – U
Ankata Mine – Cu-Au
South Australia’s New Mines, Advanced Projects and
Prospects
Australia-China Mineral Exploration Investment Seminar 2011
South Australia’s
Mining Pipeline
Major
Mines
1.
2.
3.
4.
October 2011
5.
6.
7.
8.
9.
Olympic Dam
*Challenger
Beverley
Middleback
Range’s
Leigh Creek
*Malu
*Angas
*Honeymoon
JacinthAmbrosia
10.
11.
12.
13.
14.
15.
16.
17.
18.
Beltana
White Dam
Cairn Hill
Iron Chieftain
Ankata
Kanmantoo
Beverley North
Peculiar Knob
*Wilgerup
Major Projects
*Arckaringa (CTL)
Bramfield (Fe2O3)
Beverley South (U3O8)
*Bird-in-Hand (Au)
*Carrapateena(Cu-Au)
Clinton (CTL)
Crocker Well (U3O8)
Flinders-Reliance (Zn)
*Four-Mile (U3O8)
FuturGas (CTL)
Gum Flat (Fe2O3)
Hawks Nest (Fe2O3)
Hillside (Cu, Au)
*Kalkaroo (Cu-Au-Mo)
*Menninnie Dam
(Pb-Zn-Ag)
*Mullaquana (U3O8)
Mutooroo (Cu-Co)
Mutooroo (Fe2O3)
Oban (U3O8)
Olympic Dam Expansion (CuU-Au-Ag)
Poochera (Kaolin)
*Portia (Au)
Project Magnet P2 (Fe2O3)
Razorback (Fe304)
Tripitaka (HM)
*Tunkillia (Au, Ag)
Warramboo (Fe304)
Wilcherry Hill (Fe304)
Major Prospects
Acropolis (Cu-U-Au-Ag)
*Alvey (Pt, Pd)
Atacama (HM)
*Aphrodite (U3O8)
Aristotle (Zn)
Armchair (U3O8)
Aroona 2 (Zn, Pb)
*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 (Fe304)
Burra (Cu)
Carrow (Fe)
*Claude Hills (Ni)
*Coolybring (Fe304)
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 (Fe304)
*Hercules (Fe304)
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 Cora (Fe)
Mount Davies (Ni)
*Mount Woods (IOCGU)
*Mount Caroline (Ni, Cu, Pt, Pd)
Mount Christie Siding (Cr203)
Mount Distance (U3O8)
*Mount Gunson (Cu, Co)
Mount Torrens (Cu-U-Au-Ag)
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)
*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 (Au)
Toondulya (Cu, Au)
Torrens South JV (Cu, Au)
Typhoon (HM)
Typhoon (Au)
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)
* PACE Co-funded
IRON ORE
MINES
Middleback Ranges: OneSteel Ltd
Cairn Hill: IMX Resources
Iron Chieftain: OneSteel Ltd
PROJECTS
Bramfield – Lymex Ltd
Gum Flat – Lincoln Minerals Ltd
Hawks Nest – Western Plains Resources Ltd
Mutooroo –
Sumitomo Metal Mining Oceania Pty Ltd/Minotaur Exploration NL
Peculiar Knob – Western Plains Resources Ltd
Project Magnet P2 – OneSteel Ltd
Razorback – Royal Resources Ltd
Warramboo – Iron Road Ltd
Wilcherry Hill – Ironclad Ltd
Wilgerup – Centrex Metals Ltd
PROSPECTS
Lilydale – Havilah Resources NL
Maldorky – Havilah Resources NL
COPPER
MINES
Olympic Dam (Cu-U-Au-Ag)
Malu (Prominent Hill Open Cut) (Cu-Au)
Ankata (Prominent Hill Underground) (Cu-Au)
Kanmantoo (Cu,Au, Ag)
PROJECTS
Carrapateena( Cu-Au):
Hillside (Cu, Au):
Kalkaroo (Cu-Au-Mo):
Mutooroo (Cu-Co):
Olympic Dam Expansion (Cu-U-Au-Ag):
PROSPECTS
Punt Hill
URANIUM
MINES
Olympic Dam: BHP-B
Beverley: Heathgate Resources
Beverley North: Heathgate Resources
Honeymoon: Uranium One/Mitsui
PROJECTS
Beverley South: Heathgate Resources
Crocker Well: Sinosteel PepinNini Curnamona Management
Four-Mile: Alliance Resources/Quasar Resources
Mt Gee: Marathon Resources
Mullaquana: Uranium SA
Oban: Havilah Resources
Olympic Dam Expansion: BHP-B
PROSPECTS
Acropolis
Wirrda Well
Yarranna
Oak Dam
Cane Grass
Radium Hill
HEAVY MINERALS
MINES
Jacinth/Ambrosia: Iluka Resources
Mindarie: Murray Zircon
PROJECTS
Tripitaka: Iluka
PROSPECTS
Atacama
Balmoral
Barton West
Derrick
Dromedary
Gullivers
Immarna
Overland Corner
Typhoon
Update on Olympic Dam…
World’s Largest Uranium Resource
Australia-China Mineral Exploration Investment Seminar 2011
Olympic Dam – BHP Billiton Ltd
Copper-Gold-Uranium-Silver
•
Largest uranium deposit, fourth largest remaining
copper deposit and fifth largest gold deposit in the
world. Also contains significant quantities of silver
•
Total Resource 9 075 Mt at 0.87% Cu, 0.027%
U3O8, 0.32 g/t Au and 1.5 g/t Ag
•
Gold only resource 151 Mt at 0.99 g/t Au
•
Total Ore Reserve (54 year life) 598 Mt at 1.84%
Cu, 0.058% U3O8, 0.71 g/t Au and 3.44 g/t Ag
•
Production 2009/10 – 103 300 t Cu,
2279 t U3O8, 65 494 oz Au, 500 000 oz Ag
Olympic Dam
January 2011
Australia-China Mineral Exploration Investment Seminar 2011
Olympic Dam: a world class deposit
Thousand tonnes U3O8
Million tonnes Copper
2,500
Largest uranium
deposit in the world
2,000
120
Million oz Gold
4th largest copper
deposit in the world
300
~1100
100
250
80
200
60
150
40
100
20
50
0
0
4th largest gold
deposit in the world
1,500
Lihir
Oyu Tolgoi (Copper)
KSM Project
Natalka
Sukhoi Log
Pebble (Copper)
Olympic Dam (Cu-U)
Muruntau
Grasberg (Copper)
Witwatersrand Camp
Norilsk Camp (Nickel)
Pebble
Oyu Tolgoi Camp
Collahuasi Camp
Grasberg Camp
Escondida
Olympic Dam
Chuquicamata #
Andina #
Jabiluka Camp
Priargunsky
Cigar Lake
Ranger Camp
Inkai
Imouraren
Elkon
Viken
Olympic Dam
0
McArthur River
500
El Teniente #
1,000
Sources: Company Annual Reports, press releases and International Atomic Energy Agency (as at April 2010). Witwatersrand figure is BHP Billiton estimate and is approximate only. # Based on reported mineral “inventory” at 0.2% Cu cut-off grade. Chart depicts Mineral Resources for Olympic Dam and Escondida on a
100% basis. The Mineral Resource information on this slide pertaining to Olympic Dam and Escondida was sourced from and should be read together with and subject to the notes set out in the BHP Billiton 2009 Annual Report. The Mineral Resource information pertaining to Escondida referenced on this slide is based on
information known to Richard Preece who is a Fellow of the AusIMM and a full-time employee of BHP Billiton. Mr Preece has sufficient experience which is relevant to this style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined
in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (The JORC Code). Mr Preece consents to the inclusion in this slide of the matters based on his information in the form and context in which it appears.
Australia-China Mineral Exploration Investment Seminar 2011
Slide 13
Slide 13
Expansion components
•
From Australia’s largest underground to an open pit mine at 72Mtpa ore production
•
Ore processing plant ~ 7 times capacity of existing
•
Waste heat power station ~250MW
•
Electricity transmission line ~ 270km
•
Option for a gas pipeline from Moomba to Olympic Dam and on-site power station
•
~100km rail line, Olympic Dam to Pimba
Australia-China Mineral Exploration Investment Seminar 2011
Slide 14
PACE 2020 – Fostering Discovery and Development of New Mines
Australia-China Mineral Exploration Investment Seminar 2011
SOUTH AUSTRALIA’S MINING POLICY &
PACE 2020 INITIATIVE
supporting growth and investment in our mineral and energy resources
PACE 2020 is designed to:
• unlock new areas for mineral and
energy exploration
• further streamline the approvals and
regulatory process from exploration
through to mine development and
production
• provide even better data delivery
services to the resources industry
South Australia’s PACE 2020 …
PACE Mining Initiative
Australia-China Mineral Exploration Investment Seminar 2011
PACE 2020
PACE Exploration
PACE Mining
PACE Global
PACE Energy
Pathways to
Prospectivity
Discovery to
Development
Data
Pathways
SA Geothermal
Pathways to
Discovery
Next Generation
Policy
SA Resources
Analysis
Unconventional Gas
Resources
Innovation through
Integration
Water for
Mining
Building Awareness
Uranium
PACE Partnerships
Communities
CO2 CRC
PACE Mining
PACE
Mining
Discovery to
Development
Facilitate a robust and transparent mining approval process,
balancing industry and community needs
Next Generation
Policy
Develop and implement leading practice regulation and
management of exploration, mining and quarrying activity
Water for
Mining
Establish key partnerships to address the location, use
and management of the State’s water resources.
Communities
Promote engagement between an effective government,
socially aware industry and an informed community.
PACE Mining
Streamlining Exploration to Production
• Shared value approach balancing development / conservation /
sustainability
• Focus on land use, approval procedures, community engagement,
assessment processes
• Streamlining the approval process: 6 Month target for Mining Lease
Application
Discovery to Development
• PIRSA One-Stop-Shop Case Management
of Major Mining Projects
• On-Line Toolkits [through SARIG]
o application lodgement and status tracking
o report submission and tenement management
Australia-China Mineral Exploration Investment Seminar 2011
South Australia’s Case Management Framework
for all Major Mining Projects
Australia-China Mineral Exploration Investment Seminar 2011
South Australia’s Case Management
Framework for Major Mining Projects
• PARTNERING to move projects from Discovery to Development
• Dedicated SINGLE POINT OF CONTACT in government
• RISK ORIENTED, commercially aware approach
• COORDINATION AND INNOVATION through best practice project
management ensures that the approvals process is not the rate-limiter!
Australia-China Mineral Exploration Investment Seminar 2011
South Australia’s Case Management
Framework for Major Mining Projects
•
The one-stop-shop approach …
•
Coordinate proponent interaction with all relevant government
agencies
•
Work proactively to identify and eliminate delays in government
processes
•
Provide advice on government process
•
Alert proponents to key challenges that need to be worked through
in the early stages of a project
•
Identify emerging risks within the government process, and work
with the proponent and key stakeholders to a resolution of these
issues.
•
Brokering innovative solutions to project issues
•
Escalate issues to the highest levels for resolution when necessary
Australia-China Mineral Exploration Investment Seminar 2011
Mining Developments - achieving streamlined approvals
and best practice regulation
Australia-China Mineral Exploration Investment Seminar 2011
South Australian Government Objective
Target of 6 months for Mineral Lease grant (timing from formal lodgement of
lease application) achievable for major mines in SA
•
Major mine - Prominent Hill (Oxiana) approved in 5 months (2006)
•
Major Mine – Jacinth Ambrosia (Iluka) approved in 7 months (2009)
•
Small mine - White Dam (Exco) approved in 3 months (2007)
•
May be longer for uranium mines & mines that trigger EIS and/or EPBC
processes
•
However, most recent uranium mine – Beverley North – coordinated State &
Commonwealth process – Mining Lease granted in 6 months
Compares to national benchmark* of
1- 2 years for “major” mine
6-12 months for “small” mine
* “National Audit of regulations influencing mining exploration and project approvals processes ”, report prepared by URS for MCA, February,
2006
Australia-China Mineral Exploration Investment Seminar 2011
Mining Assessment and Approval Process
under the Mining Act
Mining Act, 1971 - New Major Amendments and Mining Regulations
2-Stage process
Mining Lease
•
Details of mining concept and risks to environment
•
Statutory consultation is required
•
Lease conditions set to protect environment
Mining and Rehabilitation Program (MARP)
•
Details of how environmental risks will be managed
•
May be reviewed during mine life
•
Some projects require approval by the Federal government,
particularly uranium mines
PIRSA is the lead agency for assessment, approval and
regulation of mines under the Mining Act
Australia-China Mineral Exploration Investment Seminar 2011
Performance Based Principles
Regulatory Processes aim to be:
•
Fair, equitable, consistent
•
Transparent
•
Predictable
•
Practical
•
Adaptable
•
Efficient
•
Inclusive
•
Objective (science based – rational)
Australia-China Mineral Exploration Investment Seminar 2011
EPBC Act
•
Approval is required for all new Uranium mines under the
EPBC Act 1999
•
The Commonwealth determines the level of assessment
– often to be at PER level
•
Commonwealth has the ability to endorse the SA Mining
Act process for assessment
•
The mine proposal must demonstrate it meets Best
Practise – for ISR mines this means conforming with the
ISR Best Practise Guide
•
The Commonwealth and State approval conditions are
consistent
Australia-China Mineral Exploration Investment Seminar 2011
Practical Guidelines
Australia-China Mineral Exploration Investment Seminar 2011
DELOITTE ACCESS ECONOMICS
APRIL 2011
“One day South Australia will be a titan of the global resource landscape. It is a
world class minerals province, with almost 40% of the globe’s known recoverable
uranium reserves, as well as significant volumes of copper, gold and silver.”
“the State’s comparative advantage in mining lifted further in the past decade”
“The result is the State has the potential to be a big player in global resource
markets.”
Australia-China Mineral Exploration Investment Seminar 2011
Our Key Messages
Mining Approvals in South Australia
•
South Australia is PRO-EXPLORATION, PRO-MINING & PRO-ENVIRONMENT
PACE 2020 initiative targets further streamlining and case management
•
Mining Act has integrated environmental approvals. Ensures balance between
environmental impacts and economic benefits
•
Environment definition in Mining Act requires appropriate economic, environmental and
social impacts relevant to mining to be effectively managed
•
Performance, risk based regulation
•
•
focus on environmental values and outcomes
•
ensures stakeholder engagement is at right level and does not get bogged down on
subjective best practice and strategies
•
streamlines assessment time as detailed analysis of strategies not required
Focus on early stakeholder engagement – to resolve major issues prior to mining
application. Transparency builds trust with communities -> achieving social licence
Australia-China Mineral Exploration Investment Seminar 2011
Disclaimer
•
The information contained in this presentation has been compiled by the Department of Primary Industries
and Resources (PIRSA) and originates from a variety of sources. Although all reasonable care has been
taken in the preparation and compilation of the information, it has been provided in good faith for general
information only and does not purport to be professional advice. No warranty, express or implied, is given
as to the completeness, correctness, accuracy, reliability or currency of the materials.
•
PIRSA and the Crown in the right of the State of South Australia does not accept responsibility for and will
not be held liable to any recipient of the information for any loss or damage however caused (including
negligence) which may be directly or indirectly suffered as a consequence of use of these materials.
PIRSA reserves the right to update, amend or supplement the information from time to time at its
discretion.
Australia-China Mineral Exploration Investment Seminar 2011