WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE March – May 2018

CELEBRATING 40 YEARS Print post approved PP 665002/00062 DEPARTMENT OF JOBS, TOURISM, SCIENCE AND INNOVATION International Education, Trade and Investment Level 6, 1 Adelaide Terrace East Perth, Western Australia 6004 • AUSTRALIA Tel: +61 8 9222 0555 • Fax: +61 8 9222 0505 Email: [email protected] • www.jtsi.wa.gov.au

INTERNATIONAL OFFICES Europe — London Government of Western Australian – European Office 5th floor, The Australia Centre This year marks forty years of Prospect magazine. Corner of Strand and Melbourne Place London WC2B 4LG • UNITED KINGDOM The magazine has charted the rise of Western Australia as a globally recognised player Tel: +44 20 7240 2881 • Fax: +44 20 7240 6637 in numerous industries, particularly the resources sector. Email: [email protected] • www.wago.co.uk Prospect articles have promoted the innovation, strength and resilience of Western twitter.com/@wagoEU Australian industries. India — Mumbai Western Australian Trade Office The publication milestone coincides with a return of confidence in the Western Australian 93 Jolly Maker Chambers No 2 economy – the domestic economy is back in growth and our export economy is 9th floor, Nariman Point • Mumbai 400 021 • INDIA powering ahead. Tel: +91 22 6630 3973 The Western Australian Government is committed to growing our State’s economy. Email: [email protected] • www.watoindia.in Indonesia — Jakarta Recent overseas visits – with our traditional trading partners China, Japan (story page 2) and Western Australia Trade Office Korea (page 6), and to Africa (page 4) and Kazakhstan (page 7) – have strengthened existing Level 48, Wisma 46, Jalan Jenderal Sudirman Kavling 1 relationships while opening the door to further collaboration and new possibilities. Jakarta Pusat 10220 • INDONESIA Tel: +62 21 574 8834 • Fax: +62 21 574 8888 At home, we are focused on growing our State’s economy through jobs for Western Australians. Email: [email protected]

The $16.7 million New Industries Fund (story page 19) will work to support and accelerate new Japan — Tokyo and emerging businesses to create Western Australian jobs. Western Australian Government Office 14th floor, Imperial Tower In the oil and gas sector, an LNG Jobs Taskforce (story page 10) will see government and 1-1-1 Uchisaiwai-cho Chiyoda-ku industry work together to establish Western Australia as an LNG hub, helping to create new Tokyo 100-0011 • JAPAN long-term job opportunities. Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 In the Pilbara region, a new collaboration agreement between the Western Australian Email: [email protected] • www.wajapan.net Government and industry, with a strong emphasis on jobs (story page 11), will build on the Japan — Kobe existing social and economic contributions of Western Australia’s resources industry. Western Australian Government Office 6th floor, Golden Sun Building 4-3-6 Nakayamate-dori The growth of Western Australia over the past forty years to become a leading resources and Chuo-Ku • Kobe 650-0004 • JAPAN export economy is testament to the ability of Western Australians to work to their strengths, as Tel: +81 78 242 7705 • Fax: +81 78 242 7707 well as our ability to innovate and prosper. Email: [email protected] • www.wajapan.net This Government is working to strengthen Western Australia’s prospects for the next forty years Middle East — Dubai and beyond. Western Australian Trade Office 106, Emarat Atrium PO Box 58007 • Dubai • UNITED ARAB EMIRATES Mark McGowan Tel: +971 4 343 3226 • Fax: +971 4 343 3238 PREMIER; MINISTER FOR STATE DEVELOPMENT, JOBS AND TRADE Email: [email protected] • www.wato.ae

Kenya — Nairobi Bill Johnston Western Australian Trade Office MINISTER FOR MINES AND PETROLEUM Kenya Representative Office PO Box 25567 Nairobi 00603 · KENYA ISSN 1037-4590 People’s Republic of China — Shanghai Prospect Western Australian Trade and Investment Office Western Australian Prospect magazine is published quarterly by the Western Australian Government’s Department of Level 22 • CITIC Square Mines, Industry Regulation and Safety (DMIRS) and Department of Jobs, Tourism, Science and Innovation (JTSI). 1168 Nanjing Road West JTSI Editorial management: Rebecca Atkinson, JTSI Communications and Marketing Division. Shanghai 200041 • PEOPLE’S REPUBLIC OF CHINA Tel: +61 08 9222 0417 • Fax: +61 08 9222 0505 Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 DMIRS Editorial management: Beau Pearson, DMIRS Coprorate Communications Division. Email: [email protected] • www.westernaustralia.cn Tel: +61 08 9222 3736 • Fax: +61 08 9222 3862 Singapore Subscriptions: www.dmp.wa.gov.au/prospect. Tel: +61 08 9222 3333 Western Australian Trade and Investment Office Disclaimer 6 Temasek Boulevard #20-02 Prospect has been compiled in good faith by the Department of Mines, Industry Regulation and Safety (DMIRS) and Suntec Tower Four Department of Jobs, Tourism, Science and Innovation (JTSI). Opinions expressed in Prospect are those of the authors and do not necessarily represent the views, or have the endorsement of DMIRS and JTSI. DMIRS and JTSI has Singapore 038986 • SINGAPORE used all reasonable endeavours to ensure the material contained in this publication is correct, but it is intended to be Tel: +65 6836 5626 • Fax: +65 6836 5698 general in nature. No representation is made with regard to the completeness or accuracy of the information contained Email: [email protected] herein. DMIRS and JTSI disclaims any or all liability for loss or damage whatsoever suffered or incurred resulting from the use of or reliance on information contained herein. Readers of this publication should make and rely on their South Korea — Seoul own enquiries, research and judgements in making decisions affecting their own or any other persons interest. Western Australian Trade and Investment Office All currency figures in Prospect are in Australian dollars unless otherwise specified. Unit 702, 7th floor, Kwanghwamoon Building 149 Sejong-daero, Jongno-gu, Seoul, 03172 REPUBLIC OF KOREA Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Email: [email protected] • www.westernaustralia.or.kr

Scan this QR code to view links to all the department’s publications In this issue

Europe South Korea

Japan China Middle East India

Singapore Africa Indonesia 02 04 08

12 14 21

02 Mission accomplished 12 Pilbara gold push

Premier leads trade mission to China and Japan. A modern day gold rush is happening in a region better known for its vast iron ore resources.

04 Cementing African ties 14 Lithium lights up Western Australia signs a new six-year memorandum of understanding with the Common Market for Eastern and Downstream processing an opportunity for Western Australia Southern Africa (COMESA). to become a global lithium hub.

08 Around the World 21 Magazine milestone Prospect magazine celebrates 40 years. Highlights from the Western Australian Government’s trade and investment offices in key global markets.

Department of Mines, Industry Regulation and Safety Department of Mines, Industry Regulation and Safety Department of Jobs, Tourism, Science and Innovation Department of Jobs, Tourism, Science and Innovation www.dmirs.wa.gov.au www.jtsi.wa.gov.au Western Australia’s government and business leaders travelled from Perth to China and Japan in November, meeting with the State’s biggest trading partners.

GROWING WA GLOBALLY: CHINA AND JAPAN TRADE MISSIONS

Western Australian Premier and Minister “Obviously, with 11 per cent of the population of The Japan visit included time in Tokyo and in for State Development, Jobs and Trade, Australia, that is significantly below what our State Kobe, capital of Sister State Hyogo Prefecture, Mark McGowan, led a high profile team of should be attracting. and focussed on reaffirming the relationship and Western Australian business leaders and exploring opportunities for greater collaboration in “We are very keen to expand the number of representatives on trade missions to China tourism to help boost Western Australia’s economy. Chinese students. I will continue to promote and Japan in November. Western Australia as an ideal study destination for The Premier and Minister met with Japanese The delegation focussed on engaging with Western Chinese students.” companies that have significant investments Australia’s major trading partners to expand on in Western Australia and have been major The mission to China included the launch of the existing relationships into growth areas for the contributors to the State’s economy for decades, State’s economy, particularly in the tourism and first phase of a digital strategy aimed at promoting including Mitsubishi, Mitsui, Japanese Steel Mills, education sectors. Perth as a study destination to help boost the JERA, Tokyo Gas, and Tokyu Corporation. number of Chinese enrolments. “China and Japan are Western Australia’s two The delegation also met with key members of biggest trading partners, together making up nearly The digital strategy included initial establishment the Japanese National Diet (Japan’s Parliament), 65 per cent of our exports, so it made sense that of a website, which will support social media including the Minister for Agriculture, Forestry and my first overseas visit as Premier included time in campaigns and relationship marketing, with the Fisheries; as well as representatives from Japan each country,” Mr McGowan said. aim to increase the profile of Perth as a study and Oil; Gas and Metals National Corporation; Itochu; lifestyle destination to both students and parents. Marubeni; Nisshin Flour Milling; and Japan Bank “Both countries have played a role in the for International Cooperation. growth of major export sectors like iron ore While in China, the delegation travelled to and natural gas, gold and agriculture, and also Hangzhou, the capital of Zhejiang Province to Site tours included Kawasaki Heavy Industry’s present real opportunities for growth in other celebrate the 30th Anniversary of the Sister shipyard, and the Kobe Children’s Hospital. State Relationship Western Australia shares industries. We respect these important trade and While in Japan, Mr McGowan was bestowed with with the province. investment partnerships. an Honorary Doctorate from Tokyo City University. “The Chinese portion of the trip had a particular The Memorandum of Understanding between The university conducts a very successful cross- focus on international education and tourism, both Western Australia and Zhejiang sees both cultural program with Western Australia, which has crucial sectors if we are to grow and diversify the parties strive to cooperate in trade, education, so far grown to include more than 300 students State’s economy to create more local jobs.” tourism, e-commerce, health care, and research who study in Western Australia each year. and development. The Premier said there was enormous scope in the tourism and higher education sectors in The delegation also visited Shanghai, and Ms Minister for Asian Engagement, Bill Johnston, Western Australia. Ellery and several university delegates visited followed his visit to China with a visit to Korea Guangzhou, in Guangdong Province. (story page 6). “Currently, the number of Chinese students coming to Western Australia, as a proportion of the national Mr McGowan and Mr Papalia travelled to Japan figure, is 3.7 per cent of the international enrolments to meet the leadership of major Japanese of students from China,” Mr McGowan said. companies, along with senior government figures. 2 The Premier witnessed a Memorandum of Understanding signing in Zhejiang Province with Vice Governor Liang Liming.

While Western Australia is the main minerals and petroleum exporting region of Australia and produces a significant proportion of the world’s minerals and petroleum commodities, the State is also fully focussed on expanding its economy.

• Western Australia’s largest export market in 2016–17 was China ($60.2b or 50%), followed by Japan ($15.7b or 13%) and Hong Kong ($9.6b or 8%).

Joining Western Australian Premier and Minister for State Development, • In 2016–17, Western Australia had majority shares of Jobs and Trade, Mark McGowan on the overseas visits, which marked the Australia’s exports to Hong Kong (75%), United Kingdom Premier’s first international trip as leader of Western Australia, were Education (64%) and China (63%). and Training Minister Sue Ellery, Asian Engagement Minister Bill Johnston and Tourism Minister Paul Papalia, along with invited representatives from the • Minerals and petroleum accounted for 90% ($108.2b) of tourism and education sectors. merchandise exports in 2016–17. The Premier was also accompanied by Vice-Chancellors from Western • Agriculture, food, fibre, fisheries and forestry exports Australia’s major universities, The University of Western Australia, Murdoch accounted for 7% ($8.5b) of merchandise exports in 2016–17. University, Edith Cowan University, and Curtin University, along with representatives from the University of Notre Dame. • Western Australia accounted for 19% of Australia’s business Directors and chief executives of a range of businesses in Western Australia investment in 2016–17. that rely on tourism also accompanied the Premier, including Perth Airport • In 2016, international student enrolments in Western CEO, Kevin Brown; Optus Stadium CEO, Mike McKenna; the Perth Arena Australia totalled 55,274. general manager; and the deputy director of the Perth Convention Bureau.

Nobel Prize winner, Professor Barry Marshall, Chief Scientist Professor Peter Source: www.jtsi.wa.gov.au Klinken and Professor Lyn Beazley, the chair of StudyPerth were also part of – WA Economic Profile – January 2018 the delegation.

In Hangzhou, China, the Premier attended key business engagements including meeting with executives at Chinese multinational company Alibaba.

3 Signing the MoU: (from left), COMESA Legal Counsel Brian Chigawa, COMESA Secretary General Sindiso Ngwenya, Mines and Petroleum Minister Bill Johnston, DMIRS Deputy Director General Dr Phil Gorey.

WESTERN AUSTRALIA CEMENTS TIES WITH AFRICA

The signing of a new six-year Memorandum Minister Johnston signed the MoU with COMESA DMIRS also presented a document to COMESA of Understanding (MoU) with the Common Secretary General Sindiso Ngwenya, marking on the Principles for a Sustainable Resources Market for Eastern and Southern Africa was a renewed commitment to strengthening the Sector, covering both the minerals and the defining moment of Western Australia’s partnership’s inter-governmental collaboration. petroleum sectors. presence at the Africa Mining Indaba 2018 The MoU aids the sharing of knowledge and “This document presents the key principles on in February. expertise in mining and petroleum law and which the regulatory framework for Western Mines and Petroleum Minister Bill Johnston, regulations in tenement management systems, Australia’s resources sector was developed,” Department of Mines, Industry Regulation and State agreements, ownership of minerals royalty Dr Gorey said. Safety (DMIRS) Deputy Director General Dr Phil regimes, geological survey practices and data, and “They encourage investment, ensure the rights of Gorey and Department of Jobs, Tourism, Science safety and environmental regulation. explorers to the resources they find, and answer and Innovation (JTSI) Commercial Manager Africa “As part of our continuing relationship with an obvious need for transparent, well-administered Mr Filippo Raggi represented Western Australia at COMESA, DMIRS presented a business case that policy and regulatory frameworks. Africa’s largest mining conference. highlights the need for more intensive, in-country, “The principles will facilitate the sustainable The high-level visit encouraged increased regulatory capacity-building programs tailored to development of Africa’s resources and the representation by Western Australian mining and mineral and petroleum resource development,” Dr Gorey said. flow-on of benefits that will improve lives in service companies, and was augmented by the African communities.” attendance of Chamber of Minerals and Energy “It is a template COMESA members can use to Deputy Chief Executive Nicole Roocke and seek funding from multilateral organisations for Dr Gorey said that Western Australia and COMESA William Witham, CEO of the Australia-Africa longer-term training and capacity building that could have been working on longer-term training to Minerals and Energy Group based in the State’s create an opportunity for Western Australia’s tertiary ensure sustainable regulatory training and support capital city of Perth. and vocational education and training institutions.” is provided to regulators in member countries.

4 “This training will complement the two-day in- Western Australia’s trade and investment relationship with Africa country policy and capacity building workshops • Western Australia was responsible for 27 per cent, or $1.6 billion, of Australia’s trade that have been successfully delivered by DMIRS with Africa. officers under the MoU,” he said. • Latest figures have shown that of the 134 ASX-listed companies operating in Africa, DMIRS teams have so far held workshops in 92 were based in Western Australia and developing a total of 231 mining projects in Ethiopia, Kenya, Nigeria, Uganda, Zambia, 29 African countries. Zanzibar and Zimbabwe. • In Namibia alone, there are 12 Western Australian companies operating 23 mining projects. Dr Gorey said that he regarded the visit to Indaba 2018 as a great success, not only in terms of • Hundreds of Western Australian mining, equipment, technology and services sector achieving objectives such as the MoU signing, but companies are known to be operating in Africa. also in the amount of networking through attending • The most significant Western Australian mining companies operating in Africa, by market meetings and official functions. capitalisation, include: “It was a very busy schedule and the first time • AVZ Minerals – Democratic Republic of Congo (lithium) and Namibia (vanadium, tin, that a Western Australian Minister for Mines has lanthanides, copper, iron ore, and gold) attended an Indaba,” he said. • Base Resources – Kenya (mineral sands) The next major event involving Africa on Western Australia’s calendar is Australia Africa • Cardinal Resources – Ghana (gold) Week in August. • lluka Resources – Sierra Leone (mineral sands) “What started as Africa Down Under and several • Perseus Mining – Burkina Faso, Cote d’Ivoire, Ghana, and Sierra Leone (gold) related events involving DMIRS and JTSI has coalesced into what we are now calling Australia • Rand Mining – Liberia (iron ore) Africa Week, a showcase for Western Australia as • Resolute Mining – Cote d’Ivoire, Ghana, and Mali (gold) a world leader in mining, mining-related educational services, and the mining, equipment, technology • South32 – South Africa (manganese and coal) and services sector,” Dr Gorey said. • Tawana Resources – Liberia (iron ore) and South Africa (diamonds)

• Tribune Resources – Ghana (gold)

• West African Resources – Burkina Faso (gold).

The Australia Unlimited booth at Indaba 2018.

5 (L-R) Namhoon Kim, Vice Chairman of Korea Tennis Association (KTA); Penny Bond, Senior Policy Advisor; Sangmin Park, KTA Vice Chairman; Minister Bill Johnston; Yonghoon Kwak, KTA Chairman; and Jean Ough, Government of Western Australia Korea office Commissioner.

WESTERN AUSTRALIA FORGES LINKS WITH KOREA

In his capacity as Minister for Asian “I met with the Pohang Iron and Steel Company to Minister Johnston concluded his visit by meeting Engagement, Bill Johnston travelled to seek an update on POSCO’s overseas resource with key Western Australian personnel on ways to further the State’s relationship with Korea. China and Korea last November, meeting development strategy and its current iron ore with key business executives and investments in Western Australia, including Roy Hill. “I concluded with a roundtable discussion with government representatives. representatives from Woodside, Tourism WA and “I met with the Deputy Minister for Trade, Industry Mr Johnston accompanied Western Australian the Government of Western Australia Korea Office and Energy to seek his advice on the Korean Premier and Minister for State Development, Jobs regarding further development of the cooperative and Trade, Mark McGowan; and Ministers Sue government’s strategy to secure mineral resources, relationship with South Korea in relation to Ellery and Paul Papalia on their inaugural official particularly the five core minerals – lithium, cobalt, resources, liquefied natural gas, tourism and delegation to China, along with 37 senior education nickel, manganese and tungsten – required for education,” he said. and tourism representatives (see story page 2). developing new industries for South Korea’s fourth In 2017, Korea passed the United Kingdom to Following the China trip, Mr Johnston travelled industrial revolution.” become Western Australia’s fourth largest export to Seoul, South Korea, where he met with senior The minister also met with Hyundai Steel, the market ($7.1 billion), behind China ($60.1b), Japan business executives and the Korean Deputy Energy and Mineral Resources Development ($16.5b) and Hong Kong ($8.6b). Minister for Trade, Industry and Energy, to highlight Association of Korea, and the South Korean the importance of Western Australia’s relationship The Western Australian Government’s South Korea representative of Meat and Livestock Australia, and with South Korea. Office is based in Seoul. For more information on toured KT Olleh Square to see new concepts in trade and investment opportunities in Western “My initial meeting was with the chargé d`affaires telecommunications technology. of Australia to the Republic of Korea to hear the Australia, visit www.jtsi.wa.gov.au embassy’s views on the current state of the South Mr Johnston also held meetings with key figures Korean economy and North Korea’s effect on regarding cultural and people-to-people exchange economic issues,” Mr Johnston said. between South Korea and Western Australia.

6 WA ROYALTIES SYSTEM SHOWCASED IN KAZAKHSTAN

• Kazakhstan has the largest and strongest performing economy in central Asia and was the first member of the former Soviet Republic to repay all of its debt to the International Monetary Fund, seven years ahead of schedule. • Kazakhstan has an abundant supply of accessible mineral and fossil fuel resources. • Development of petroleum, natural gas, and mineral extractions has attracted most of its $40 billion in foreign investment since 1993, and accounts for 57 per cent of the nation’s industrial output.

By modernising its tax system, Kazakhstan hopes to become more transparent and attract additional investment, so investors can understand DMIRS’ Systems and Analysis Manager, Vince D’Angelo with a welcoming exactly what their financial obligations will be before committee representative. they invest. During the presentation, Mr D’Angelo provided an overview of how the Australian tax system works and detailed how DMIRS administers the State’s A senior official from the Department of mining policy framework with international best royalties system. Mines, Industry Regulation and Safety practices,” Mr D’Angelo said. (DMIRS) recently showcased Western “I was able to share how WA uses technology “As part of their mining taxation reform, the Australia’s (WA) world-class resources sector to lodge forms and returns online and its audit Kazakhstan Government has expressed an interest and regulatory leadership at a workshop in process,” Mr D’Angelo said. in using WA’s mining legislation as its template. Astana, Kazakhstan. “I also provided an outline of some of the DMIRS’ Systems and Analysis Manager, Vince “They are keen to understand WA’s taxation challenges relative to mining taxation in WA that D’Angelo said he was invited to present at the mechanisms for the mineral sector, in particular our Kazakhstan may face as they go through the workshop by the Organisation for Economic royalty system.” reform project.” Cooperation and Development (OECD) as part Kazakhstan’s mineral taxation policies are Kazakhstan’s Government is eager to learn of its involvement in the Kazakhstan Mining covered separately under general tax code from WA experiences in resource exploration Competitiveness Project. legislation instead of mining-specific legislation. and development regulation. Delivery of these “The project supports the Kazakhstan This means its mineral revenue payments are in-country workshops is part of DMIRS’ ongoing Government’s efforts to increase investment in embedded in the tax code, whereas WA’s are program to showcase the State’s stewardship of its mining industry, and helps to align the nation’s set in mining legislation. its resource sector. 7 GOVERNMENT OF WESTERN AUSTRALIA INTERNATIONAL TRADE AND INVESTMENT UPDATE

Europe South Korea

Japan China Middle East India

Singapore Africa Indonesia

Perth

Western Australian Government International Offices

The Western Australian Government operates a network of trade and investment offices in key global markets, managed by the Department of Jobs, Tourism, Science and Innovation. The Government of Western Australia Offices are the first in-market point of contact for international trade and investment opportunities and for creating links with Western Australian businesses. Here, Prospect shares some recent highlights from each of our international teams based in London, Dubai, Mumbai, Singapore, Jakarta, Shanghai, Tokyo and Seoul. We encourage businesses to make direct contact with our in-market teams to discuss identification and development of highly prospective trade and investment opportunities.

China micro-grid trial in Andhra Pradesh; commitments Indonesia in March 2018 to address a renewable Western Australia’s China focus was boosted for trials of road safety devices with KSI Global; energy seminar in Makassar, arranged by the by the November 2017 visit of the Premier and and Curtin University getting support to establish a Australian Consulate-General. The Minister was the Ministers for Tourism, Asian Engagement mining partnership in Andhra Pradesh. Nationally, able to promote Western Australia’s capabilities in and Education accompanied by a 40 member recent strong interest from major Indian businesses the renewable energy sector as Indonesia seeks to delegation from the tourism and education during the Geological Survey of Western Australia’s meet its renewable energy target of 23 per cent by sectors. While in China the Premier reaffirmed the recent roadshow suggest there will soon be 2025 – twice current levels. Western Australian commitment to the Sister State strategic investments from India, and examination Japan agreement with Zhejiang Province, and launched a of a potential direct air service from a major Indian Our State’s Tokyo and Kobe based team, led by city to Perth. digital media platform to assist Western Australia’s Commissioner Craig Peacock, has a strong current international education sector. Recently appointed Indonesia focus on improved Japan market access for fresh Commissioner Stuart Crockett is leading a renewed The Western Australia – East Java Sister State agrifood products and the establishment of direct focus on assisting SME’s to enter and sustain a agreement was reaffirmed in October 2017, when flights between Tokyo and Perth. Following the presence in this large, complex market, including Minister for Asian Engagement Bill Johnston November 2017 visit to Japan by Premier Mark companies from sectors such as construction, McGowan and Tourism Minister Paul Papalia, visited Surabaya. Development of strengthened robotics, aged care, tourism, food and beverage, the Japan team is working with airlines that have partnerships in education and training with East agriculture, mining, architecture and life sciences. shown interest in direct flights between Tokyo and Java is a priority focus for Commissioner Jennifer Perth, which would provide for increased tourism India Mathews and team, working with the Western and education, and allow high value products Western Australia’s Sister State relationship with Australia – East Java Universities Consortium of such as live rock lobster to re-establish in the the Indian State of Andhra Pradesh continues 5 and 10 universities respectively. Supporting Japanese market. The Japan team has been to provide an important gateway for Western Indonesia to achieve its energy availability and assisting a range of Japanese universities and distribution objectives has been priority area of Australian businesses wishing to access key schools to expand and strengthen their links with work. In December 2017, the Western Australian in-market decision makers. Commissioner Peter Perth schools and universities, and to facilitate Baldwin’s team is particularly focused in Andhra Government hosted a visit by a high-level mining familiarisation and exchange visits for students. Pradesh on supporting business development in and energy delegation from East Java. A Letter the mining and energy sectors and related services, of Intent was signed between PT Petrogas and London including education. Recent examples have Horizon Power regarding the use of distributed The London-based, Europe-focused team led included: support for Village Energy entry to India energy resources to support East Java’s future by Agent General John Atkins has had a strong market, including signing of an MOU to establish a energy needs. Minister Bill Johnston visited recent focus on investment attraction to Western 8 Rob Delane Deputy Director General International Education, Trade and Investment Department of Jobs, Tourism, Science and Innovation 1 Adelaide Terrace East Perth, Western Australia 6004 Phone: +61 8 9222 0458 Email: [email protected]

Stuart Crockett John Atkins Agent General, Europe Commissioner, China 5th Floor, The Australia Centre Room 2204, CITIC Square Corner of Strand and Melbourne Place 1168 Nanjing Road West London, United Kingdom WC2B 4LG Shanghai, People’s Republic of China 200041 Phone: +44 20 7240 2881 Phone: +86 21 5292 5899 Email: [email protected] Email: [email protected]

Peter Baldwin Pankaj Savara Commissioner, India Commissioner, Middle East and Africa Number 2, 93 Jolly Maker Chambers Emarat Atrium 9th Floor, Nariman Point PO Box 58007 Mumbai, India 400 021 Dubai, United Arab Emirates Phone: +91 22 6630 3973 Phone: +971 4 343 3226 Email: [email protected] Email: [email protected]

Jennifer Mathews John Catlin Commissioner, Indonesia Commissioner, Singapore World Trade Centre 2 Suntec Tower 4, #20-02 18th Floor, Jalan Jenderal Sudirman 6 Temasek Boulevard Kavling 29, Jakarta 12920, Indonesia Singapore 038986 Phone: +62 21 574 8834 Phone: +65 6836 5626 [email protected] Email: [email protected]

Craig Peacock Jean Ough Commissioner, North Asia Commissioner, South Korea 14th Floor, Imperial Tower Unit 702, 7th floor, Kwanghwamoon Building 1-1-1 Uchisaiwai-cho, Chiyoda-Ku 149 Sejong-daero, Jongno-gu Tokyo, Japan 100-0011 Seoul, Republic of Korea 03172 Phone: +81 3 5157 8281 Phone: +82 2 722 1217 [email protected] Email: [email protected]

Australia, including business facilitation at the Western Australia’s Mines and Petroleum Minister The Singapore and Perth based teams continue Asia-Pacific Regional Conference held in Perth Bill Johnston’s role as a keynote speaker at the to work closely with international business in November 2017. The Europe team has had a 2018 Mining Indaba in Cape Town, including associations, based both in-market and in Perth, to wide range of interest from European companies engagement with the Common Market for Eastern assist business and trade development in ASEAN interested in Western Australia’s global strength as and Southern Africa (COMESA) representatives for nations. A particular focus during the past year a supplier of lithium and other battery materials. the mining sector. has been on facilitating new business linkages for Western Australia’s defence-related technologies In March 2018, Premier, Mark McGowan and The Dubai-based team supported Premier Mark and maritime services sectors. Minister for Tourism, Paul Papalia were on the first McGowan when he held a range of valuable direct Perth-London flight on the Qantas “Quokka” meetings with UAE government and company The relationship building and trade development Dreamliner. This milestone non-stop flight to representatives, when he visited Dubai and Abu visit to Singapore in October 2017 by Minister for London also enabled high-level meetings with Dhabi in February 2018. These meetings, and our Mines and Petroleum and Asian Engagement Bill tourism and defence industry leaders and investors support for the 16 companies attending the major Johnston included a meeting with the Minister for in the UK and Germany. Gulfood trade show in February (in partnership with Trade of Singapore. Department of Primary Industries and Regional In another milestone, Stuart Russell retired from South Korea Development), are a small sample of the diverse our London office after 40 years of service; The Government of Western Australia Office in range of support provided to Western Australian Jeet Jandu has joined us as Senior Trade and Seoul, led by Jean Ough, coordinated a successful companies in the Middle East markets. Investment Manager. market visit by Minister Bill Johnston in November Singapore 2017. The Minister met key stakeholders in the Middle East and Africa Building on the official visit of Chief Scientist, resources, culture and sports sectors and it was With ongoing assistance from the Dubai team led Professor Peter Klinken to Singapore in February clear that the Korean parties are keen to develop by Commissioner Pankaj Savara, Curtin University 2016, the Singapore team led by John Catlin has a closer relationship with Western Australia. As a officially opened its newest campus in Dubai, organised several visits and high-level exchanges result of the visit, the Korean Office also arranged United Arab Emirates in September 2017. The involving prominent scientists and innovators from a visit by Dr Phil Gorey, from the Department of Dubai Office also provided support to FST Iran Perth. This work builds on earlier assistance to Mines, Industry Regulation and Safety, where he group, the first Iranian mining investment Edith Cowan University in establishing linkages spoke at a symposium on lithium opportunities and into Australia after the end of business sanctions into Singapore, which resulted in commercial met with companies regarding potential investment with Iran. partnerships with government-linked healthcare in the mining sector. The Dubai Office team also covers Western group SingHealth and the International Sports Australia’s interests in Africa, and facilitated Academy of Singapore.

9 An LNG Jobs Taskforce will build on Western Australia’s existing LNG industry to create long-term jobs. Photo: JTSI

GAS JOBS TASKFORCE TO TRANSFORM WA INTO A GLOBAL LNG HUB

Western Australia is set to transform long-term job opportunities focused on servicing, “Australia is set to have the world’s largest LNG into a global liquefied natural gas (LNG) maintaining and improving existing operations. export capacity by mid-2018, surpassing Qatar, so now is the time for our State to act and become a hub with a spotlight on gas jobs thanks Liquefied natural gas is Western Australia’s second global hub. to a recently announced industry and most valuable commodity with sales of $12.7 billion government collaboration. in 2016–17. “As we build on our existing LNG operations, At the 2018 Australasian Oil and Gas Exhibition Western Australia’s share of the nation’s LNG export courses could be provided by education and training providers that align with the needs of and Conference held in Perth in mid-March, capacity by late 2018 will be about 57 per cent, or industry, ensuring young Western Australians get Premier and Minister for State Development, Jobs close to 50 million tonnes, with LNG volumes having the skills required for future job opportunities. and Trade, Mark McGowan, announced plans to increased by 84 per cent in the past five years. establish an LNG Jobs Taskforce. The taskforce will focus on harnessing the job “Oil and gas projects help drive our economy, opportunities the LNG industry can be providing generating jobs in the industry and revenue with The taskforce will consist of both industry and the Western Australian community, including new flow-on effects to the rest of the economy.” government representatives with members technology, education and maintenance services. working collaboratively to maximise the benefits that flow from the local LNG industry. “WA jobs are my number one priority, and the creation of this jobs taskforce will make sure we The taskforce will aim to establish Western build on our existing LNG industry to create more Australia as a LNG hub, helping to create new long-term local jobs,” Mr McGowan said.

FAREWELL TO STEVE WOOD

Staff from the Department of Jobs, Tourism, Science and Innovation (JTSI) and Tourism Western Australia (TWA) farewelled Steve Wood on 13 April. Mr Wood was appointed CEO of TWA and Director General of the newly amalgamated department at the formation of JTSI last year. He was previously the Director General of the Department of State Development from May 2011.

Acting Director General of JTSI, The Public Sector Commission has directed the Director General of Transport, Richard Sellers, to act as Richard Sellers. Director General of JTSI and CEO of TWA from 16 April 2018.

10 PILBARA COLLABORATION CHARTER

A new agreement between the Western Australian Government and industry will see greater collaboration to deliver benefits to the Pilbara. Photo: Rio Tinto Western Australia iron ore operations. Copyright 2017 Rio Tinto

A significant collaboration agreement economic benefits to communities in the Pilbara,” This approach is aimed at ensuring efforts deliver between the Western Australian Government, Mr McGowan said. sustainable improved social and economic impact the Chamber of Minerals and Energy of to Pilbara communities over a longer-term horizon. “With a particular focus on jobs, and bridging the Western Australia and the State’s largest gap between training and employment, this charter The charter was developed by the CMEWA in resources companies has ushered in a new collaboration with BHP, Chevron Australia, CITIC way of working together in the Pilbara. ensures that those in the Pilbara have access to economic opportunity.” Pacific Mining, Fortescue Metals Group, Rio Tinto The Pilbara Collaboration Charter has a strong Iron Ore, Roy Hill, Woodside, and Yara Pilbara. focus on jobs, as well as economic and social The first priority for the charter is employment, “This Government has worked closely with the benefits, and builds on the existing social and education and training, particularly the Chamber of Minerals and Energy and industry to economic contributions of Western Australia’s development of pathways to job creation. ensure a productive relationship with the resources resources industry. Other areas included in the charter are community industry, and this charter is a new way for us to Premier Mark McGowan, CMEWA chief executive development and health, procurement and supply continue to work together,” Mr McGowan said. Reg Howard-Smith, and leaders from eight chain and joint project initiatives. For more information or to view a copy of major resource companies signed the charter in The cross-collaborative approach outlined in the the charter, visit the Department of Jobs, late November. charter emphasises high-level communication Tourism, Science and Innovation website at “The Pilbara Collaboration Charter provides a between government and industry, and www.jtsi.wa.gov.au/pilbara-collaboration-charter. framework through which government and industry engagement with Federal Government and can work together to deliver further social and relevant local governments. 11 Better known for its massive iron ore deposits, the Pilbara has become the focus for a new gold rush.

THE NEW PILBARA GOLD RUSH

In mining terms, the Pilbara is synonymous It was not so much the gold that was discovered Witwatersrand basin. This is more than three times with iron ore. It is one of the world’s biggest that has driven this interest; in fact, gold volumes Western Australia’s known reserves and resources suppliers of seaborne ore and has played a recovered from conglomerates in the region remain which currently stands at around 197 million large part in establishing the fortunes of the relatively modest. Conglomerate gold deposits are ounces. A gold endowment at only a fraction of big miners BHP and Rio Tinto and in more rare in WA, with existing mineralisation found as the South African scale could support a mining recent times FMG. alluvial gold at the surface or quartz vein-hosted industry in the Pilbara for decades into the future. gold in so-called archean greenstone belts. On the other hand, gold is synonymous with There is some evidence for the theory. The Western Australia’s goldfields region where years Rather, excitement is driven by the possibility that deposits are superficially similar: conglomerate of gold mining activity has spurred townships and these discoveries might represent a repeat of hosted, nuggetty gold associated with pyrite. successful mining companies. the famous Witwatersrand gold basin in South Second, there is some evidence, which is not However, gold is not unknown in the Pilbara. Africa which hosts a wealth of gold-rich deposits conclusive, for the so called “Vaalbara” hypothesis The region already hosts the Telfer, Nullagine and was home to the world’s largest gold rush – the idea that the Pilbara craton in Western and Paulsen’s mines. All of which begs the in the 1800s. Although only discovered in 1886, Australia and the Transvaal craton in South Africa question, what has caused the current gold approximately half of all gold mined throughout (which hosts the Witwatersrand basin) were rush in the Pilbara? human history has come from the Witwatersrand connected approximately 2.8 billion years ago, gold basin. when the host rocks were deposited. This idea has In July of 2017, the Canadian company Novo encouraged speculation on apparent similarities Resources announced the discovery of small, Even today, after more than a century’s worth of in stratigraphy (see Figure 1), palaeomagnetic conglomerate (i.e. lumps of rock) hosted gold production, “The Rand” retains some of the largest signatures, geochronology and geodynamic history nuggets in the Pilbara. This announcement kicked reserves in the world. South Africa currently holds between the two cratons. off a mini gold rush; share prices spiked on news reserves and resources of approximately 617 from nearby companies as other similar finds were million ounces of gold in reserves and resources, Of course, mere correlations do not necessarily announced, and new ground was rapidly pegged. the majority of which is concentrated in the mean a repeat of the Witwatersrand gold deposits.

12 Even if true, exploration odds remain long, and there are considerable hurdles between today’s explorers and a profitable mine, or even the confirmation of economic gold deposits. The nature of the exploration needed for deposits of this type is such that solid data on grade and continuity is not expected until mid-2018 at the earliest.

Believers of the conglomerate gold story say it has the potential to transform the Pilbara and write a new chapter in its mining history, while naysayers claim the theory lacks credibility and predict the rush will be over soon. However, given the potential payoff, this is a story worth keeping an eye on in the near future.

More information about the Pilbara Craton can be found on the department’s website – www.dmirs.wa.gov.au

Discovered in the 1880s, South Africa’s Witwatersrand gold basin has produced approximately half of all gold mined throughout human history.

Value of gold sales in 2016-17 WA accounts for 74 percent of Australia’s 10 Gold projects account for 59 per cent WA accounts for 70 per cent of Value of gold sales in 2016-17 WA accounts for 74 percent of Australia’s 10 GoldValue projects of gold account sales infor 2016-17 59 per cent WA accounts for 7074 perpercent cent of of Australia’s 10 Gold projects account for 59 per cent WA accounts for 70 per cent of was a record $11 billion total gold exploration spend of WA’s total gold production Australia’s total gold production Value of gold sales in 2016-17 WA accounts for 74 percent of Australia’s 10 Gold projects account for 59 per cent WA accounts for 70 per cent of was a record $11 billion total gold exploration spend of WA’swas totala record gold $11 production billion Australia’stotal total gold gold exploration production spend of WA’s total gold production Australia’s total gold production was a record $11 billion total gold exploration spend of WA’s total gold production Australia’s total gold production $689.2 m $689.2 m $689.2 m $689.2 m 74% 70% 74% 70%74% 70% 74% 70%

$509.5 m $509.5 m $509.5 m $509.5 m

RAPID RISE IN EXPLORATION APPLICATIONS

Last year the Department of Mines, Industry Strategic Projects Senior Advisor Graham Cobby “It was also accompanied by an increased Regulation and Safety received the highest said it was the largest annual increase in more than interest in gold and lithium – which is likely to number of Programme of Work (PoW) five years. continue into 2018.” applications since 2011. “The number of PoW applications received in 2017 Despite the increase in PoW applications, the increased by 43 per cent, compared to 2016,” department’s approvals performance continued to In 2017, the department received 2575 PoW Mr Cobby said. meet timeline targets. applications. This was the second highest number since the department started producing approval “This was an indication of more favourable “The department finalised 99 per cent of PoW performance reports in 2009 – see Figure 1. economic conditions for investment in exploration. applications within the target timeline of 30 business days,” Mr Cobby said.

“We also saw a reduction in the number of PoW applications carried over for the quarter from 252 in the first quarter 2017, to 191 in the fourth quarter 2017.”

The department publishes quarterly approval performance reports on its website.

13 DOWNSTREAM PROCESSING ADDS SPARKLE TO WA’S LITHIUM BOOM

Pilbara Minerals’ Pilgangoora project. Photo Pilbara Minerals

Western Australia’s lithium boom is At the moment, all battery metals exported from The total development will have capital expenditure shifting into a higher gear as miners Western Australia are in raw mineral concentrates of more than $1 billion, involve 750 to 1000 move towards downstream processing of that will undergo secondary processing and value- construction jobs and employ a peak operational the metal powering the world’s battery adding in overseas plants. workforce of 270 people. power revolution. However, many current and potential battery metal Lithium-focused companies such as Lepidico, Mining and exploration for lithium has been going miners are working towards developing in-house Lithium Australia and NeoMetals are developing on in Western Australia for more than 25 years, or co-invested processing of their product to new proprietary hydrometallurgical processes to produce lithium carbonate, lithium hydroxide and but the recent rapid advances in electric vehicle maximise returns to shareholders. lithium titanate from a wider variety of hard-rock and battery storage technology have created a “The secondary processing of lithium concentrate lithium-bearing silicate minerals. wave of exploration and investment that is into lithium carbonate or lithium hydroxide, and turning Australia’s biggest State into a global nickel concentrate into nickel sulphide suitable for Neometals and Mineral Resources are hub for lithium. battery use, has tremendous economic potential assessing the development of a downstream for Western Australia,” Dr Gorey said. lithium processing facility at their Mt Marion Western Australia ranks fourth globally in lithium project near Kalgoorlie. resources with world-class deposits in the South “Downstream processing of lithium also has the West at Greenbushes, the Goldfields–Esperance potential to deliver $2.2 billion in investment to WA The plant is planned to be commissioned by 2020 region near Ravensthorpe, Southern Cross and create many hundreds of jobs.” and would have a capacity of 20,000 to 25,000 about 370km east of Perth, Kalgoorlie in the tonnes per year of lithium carbonate. Tianqi Lithium Australia is constructing a State’s goldfields, and in the Pilbara south of $400-million lithium hydroxide processing plant Kidman Resources and Chilean lithium giant SQM Port Hedland. with an annual capacity of 24,000 tonnes a year are examining the design and feasibility of a refinery to produce lithium carbonate or lithium hydroxide as WA has a major strategic advantage over other at Kwinana, just south of Perth, to process part of their Mt Holland project near Norseman. lithium producers because it is close to big its share of spodumene concentrate from the manufacturers of lithium products in Asia, such as Greenbushes mine. The refinery is estimated to cost $400 million China, Japan and South Korea, according to Dr Tianqi has already approved a feasibility study and produce either 37,000 tonnes per year of Phil Gorey, Deputy Director General of the State’s into a $317-million doubling of the plant capacity lithium carbonate or 44,000 tonnes per year of Department of Mines, Industry Regulation and to 48,000 tonnes per year that is targeted for lithium hydroxide. Safety (DMIRS). completion by late 2019. It is expected to create up to 200 jobs during “WA also has the advantage of shorter The plant is claimed to be the largest of its kind construction and an operational workforce of 180. construction and ramp-up times and lower capital in the world and will be capable of producing the Historically, WA’s lithium sales have been dominated costs compared with other major producers such world’s highest quality lithium hydroxide. by production from Greenbushes. as Chile and Argentina,” Dr Gorey said. The Kwinana project is expected to create up to The operation which began producing in 1985 “Western Australia’s lithium concentrate sales 500 local jobs during construction and 115 local is now owned and operated by Talison Lithium, have more than doubled over the past 10 years, jobs once operational. a subsidiary of two global lithium giants, Tianqi Lithium Corporation, which owns 51 per cent, and reaching 866,000 tonnes worth more than In November 2017, Tianqi’s Greenbushes partner Albemarle Corporation, which owns 49 per cent. $604 million in 2017, but DMIRS and the State Albermarle revealed that it will build its own lithium Government are particularly heartened by the hydroxide plant at Kemerton, near Bunbury in There have been a number of recent significant swing towards downstream processing,” he said. Western Australia’s South West region. milestones in Western Australia’s continuing growth as a lithium producer, including: “Secondary processing of lithium concentrate The plant will be capable of producing 20,000 from spodumene ore into lithium carbonate tonnes per annum and Albemarle is already • The restart of the Mt Cattlin lithium and/or lithium hydroxide dramatically increases flagging a staged expansion of the facility to concentrate project near Esperance by Galaxy export value.” 100,000 tonnes per annum by 2025. Resources in November 2016.

14 • The start-up of Reed Industrial Minerals’ • Joint venture partners Tawana Resources and Western Australia’s lithium boom has been Mt Marion project near Kalgoorlie in the Alliance Mineral Assets Limited have started underscored by record sales, which have more than December quarter of 2016. constructing the $42-million Bald Hill lithium doubled during the past 10 years. and tantalum mine in the Eastern Goldfields, • The establishment of a lithium direct-shipping In 2016–17, sales of spodumene concentrate and with first lithium concentrate production in ore operation at Wodgina near Port Hedland direct-shipping ore reached more than 866,000 mid-March 2018. by Mineral Resources, which achieved its first tonnes worth more than $604 million. shipment in April 2017. • In July last year, Kidman Resources and SQM “Together, these projects have the potential to boost announced a 50-50 joint venture to develop Several new lithium projects and an expansion of an the State’s annual lithium concentrate production the Mt Holland lithium project near Southern existing mine are currently under way in WA: to almost three million tonnes by 2020 – nearly four Cross, marking the first time a Chilean times what it was in 2016,” Dr Gorey said. • In March 2017, Altura Mining started on-site company has invested in a Western Australian earthworks and early construction at its mining project. However, Antofagasta PLC “And if all the projects now under development in Pilgangoora project in the Pilbara, which is of Chile did invest in the Yeneena exploration WA reach full capacity, the industry could generate expected to begin producing in 2018. project (50–70 km southwest of Telfer) in more than $100 million per year in royalties for 2013–16. Western Australia.” • Also in March last year, Talison Lithium committed to doubling the lithium concentrate • In September last year, Pilbara Minerals began production capacity of its Greenbushes project. construction of its Pilgangoora project.

Lithium production and downstream processing

Altura Mining’s Pilgangoora project. Photo courtesy Altura Mining

Project Company Production rate Product and downstream processing

Greenbushes Tianqi/Albemarle By 2019, production capacity will rise to 1.34 million tonnes (Mt) Tianqi constructing 48,000 tonnes per year lithium hydroxide plant at Kwinana per year of 6 per cent Li concentrate Albemarle proposes to build a lithium carbonate plant in Kemerton

Wodgina Mineral Resources Planning 6 per cent Li concentrate production of 0.5 Mt per year Direct shipping ore by 2020 Spodumene concentrator plant being built, and option of 100,000 tonnes per year lithium carbonate production from plant at Wodgina being investigated

Pilgangoora Pilbara Minerals Initial 0.5 Mt per year of Li concentrate building to 2 Mt Spodumene concentrate and direct shipping ore (via Atlas Iron) Feasibility into 5 Mt per year planned Option of downstream processing including Korea lithium JV

Mt Holland/Earl Grey Kidman Resources/SQM Planning 300,000 tonnes per year of 6 per cent Li concentrate 30,000– 40,000 tonnes per year lithium hydroxide or lithium carbonate Feasibility into WA refinery being examined

Mt Marion Neometals/Mineral Resources/ Planning production increase to 450,000 tonnes per year of 6 per cent Spodumene concentrate Jiangxi Ganfeng Lithium and 4 per cent Li concentrate Lithium hydroxide plant proposed

Pilgangoora Altura Mining 220,000 tonnes per year of 6 per cent Li concentrate initially Spodumene concentrate Planning 440,000 tonnes per year

Mt Cattlin Galaxy Resources 160,000 tonnes per year of 6 per cent Li concentrate production in 2017 Spodumene concentrate

Bald Hill Tawana Resources/ Alliance 155,000 tonnes per year of 6 per cent Li concentrate Spodumene concentrate Mineral Assets Limited

LEGEND CURRENTLY MINING IN CONSTRUCTION EXPLORATION COMMITTED OR PLANNED DOWNSTREAM PROCESSING IN WA

WA is poised to become a south of State capital Perth, to produce 100,000 The Savannah nickel–copper–cobalt project, tonnes of electrolytic nickel per year. in particular, is currently under consideration by battery metals powerhouse Panoramic Resources Ltd for a restart. Western Australia is now famous for its lithium, Western Australia is well stocked with nickel, with In 2016–17, WA sold 157,490 tonnes of nickel but the State is also well placed to supply five globally significant resources of about 35 million worth more than $2 billion. other prominent battery materials. tonnes of contained metal in 87 deposits. Australian Bureau of Statistics figures show that Nickel WA is Australia’s only nickel producer, and Western Australia’s nickel explorers are spending although only eight mines are operating at Western Australia’s lithium boom has stirred three times more than 18 months ago. activity in nickel – a crucial component in the moment, 25 other mines are under care battery production. and maintenance. About $28.7 million was spent exploring for nickel–cobalt deposits in the December quarter BHP Nickel West announced in August 2017 that Many of these could reopen if demand from the of 2017. it will spend $55 million to build the world’s largest battery and other industries raises nickel prices to nickel sulphate plant at Kwinana, about 40 km an economic tipping point. Continued Page 16 15 That was up from $22.4 million in the June The DRC hosts around half of the world’s cobalt, Manganese quarter and $25.7 million in the September but the African nation has been in the spotlight Western Australia has been producing quarter, marking the sixth straight quarterly rise in for some time over ethical issues, such as the manganese for more than 50 years, but the only in exploration spending. use of child labour in mines. active mine is at Woodie Woodie in the Pilbara, Cobalt Concern over stable supply, the increase in recently reopened by Consolidated Minerals. price, and potential for increased demand from Global demand for manganese has doubled Cobalt, which in WA is a by-product of nickel battery applications has sparked considerable over the past decade, driven in part by mining, is a critical component in many battery exploration interest in cobalt in Western Australia. designs, and supply concerns have driven prices increasing demand for high-purity manganese upwards – 47 per cent in 2016, and around Graphite dioxide for use in lithium-ion batteries used in grid storage and electric vehicles. 57 per cent last year. WA has about two million tonnes of defined graphite resources in four of WA’s 13 active Now some WA-based companies such as On 26 January this year, trade in cobalt closed graphite projects, but WA is not yet a current Montezuma Mining are evaluating their projects at just under US$80,000 per tonne, the highest producer of graphite though historic production specifically as sources of battery-grade end-of-day price since trading began on the is recorded. manganese dioxide. London Metal Exchange. The two most advanced projects are Hexagon Vanadium In 2016–17, 4732 tonnes of WA cobalt valued Resources’ McIntosh project in the East WA has significant vanadium resources that at $237 million were sold, generating more than Kimberley region and Buxton Resources Ltd include King River Copper’s large Speewah $5 million in royalties. and Montezuma Mining’s Yalbra project in the deposit in the East Kimberley. Known cobalt resources in WA total about Gascoyne region. 1.32 million tonnes and in 2015 the State The State’s graphite resources are small on a boasted the world’s second largest reserves of global scale, but could yield high-purity graphite cobalt reserves after the Democratic Republic and graphene, the wonder material that is so thin of the Congo. it’s classed as two-dimensional.

SPOTLIGHT ON EXCELLENCE IN WESTERN AUSTRALIA’S RESOURCES SECTOR

As one of the world’s top destinations for The prestigious Golden Gecko Award for “The calibre of past entries has demonstrated mining investment, Western Australia is Environmental Excellence, Safety and Health and a determination to promote a safe work continually demonstrating excellence and Community Partnership Resources Sector Awards environment, environmental excellence, and innovation to improve processes, safety not only recognise leaders in the sector, but the importance of community partnerships and outcomes. also help to share the advances and meaningful in the resources sector, and I am sure 2018 community engagement that is being done will be no different.” The Department of Mines, Industry Regulation across the State. and Safety’s (DMIRS) Resources Sector Awards The Golden Gecko Awards, Safety and for Excellence aims to highlight projects and The department’s Director General David Smith Health and the Community Partnership partnerships that are at the forefront of community said the awards provided the perfect platform Resources Sector Awards will be held on partnerships, safety and health, and environmental to showcase and celebrate industry advances 25 October. More information is available at innovations and excellence. and innovation. www.dmirs.wa.gov.au/excellenceawards

Incorporating three different areas recognising “Striving for excellence in health, safety, social excellence in the resources industry, the Resources and environmental responsibility is something the Sector Awards for Excellence acknowledge department strongly encourages, and helps to innovation, outstanding performance and raise standards that benefit both the community leadership to ensure that the State’s resources are and industry,” Mr Smith said. developed in a responsible manner for the benefit of all Western Australians.

16 © Woodside

NEW DEPARTMENT SUPPORTING A SAFE AND FAIR WESTERN AUSTRALIA

As one of the Machinery of Government reforms announced by the State Government in 2017, the bulk of the Department of Commerce has merged with the Department of Mines and Petroleum to create the Department of Mines, Industry Regulation and Safety (DMIRS). The new department’s mission is to support a safe, fair and responsible future for the Western Australian community, industry and resources sector. The organisational structure of the new department brings together like services under five groups to ensure the community and industry receive the best service possible.

Resource and Environmental The group consists of: Where possible, the group will collaborate with Regulation Group • Building and Energy (formerly Building other agencies to make services easier for Responsible for the regulation of one of Western Commission and EnergySafety) customers to access and use. Australia’s largest industry sectors, the Resource • Consumer Protection. The group consists of: and Environmental Regulation Group plays • Licensing Services a critical role in building WA’s economy and Safety Regulation Group ensuring the State’s resources are developed in a • Customer Information The Safety Regulation Group will play a significant sustainable and responsible manner. part in building and strengthening Western • Investigations for dangerous goods, mines and petroleum safety and WorkSafe. The group provides regulatory and policy oversight Australia’s economy by ensuring one of its most significant assets, its workforce, operates in a of the resources sector, in all areas apart from Strategic Business Innovation Group worker safety. The group also delivers the healthy and safe environment where their rights as The Strategic Business Innovation Group will department’s geoscience functions, reducing risk workers are protected. focus on a whole-of-department strategic for explorers and increasing the attractiveness of The group provides regulatory and policy oversight capability, fostering innovative thinking across Western Australia as a destination of choice for of workers’ health and safety in the resources the department in support of building a high resource companies. and general industries sectors and the licensing performance organisation. The group consists of: regime, and safety legislation for dangerous goods, including regulation of the State’s major hazard The group consists of the following: • Resource Tenure facilities and petroleum operations. • Business Innovation • Resource and Environmental Compliance The group is also responsible for the coordination, • Strategic Policy • Geoscience and Resource Strategy governance, and consistent management of public • Internal Audit and Risk. (including the Geological Survey of sector labour relations and parts of the State’s Western Australia). private sector workforce. Corporate Services Group

The group consists of: The Corporate Services Group supports the Industry Regulation and Consumer • WorkSafe department to achieve its strategic and Protection Group • Mines Safety operational objectives. The Industry Regulation and Consumer Protection Group will contribute to safer, more • Dangerous Goods and Petroleum Safety The group brings together a range of corporate responsible actions by traders and industries, • Labour Relations functions, which work collectively to help the the early identification of emerging trends and organisation plan and operate, by offering • Regulatory Support. issues and importantly, a better informed, risk specialist advice, effective business systems aware community. Service Delivery Group and internal controls. The group will look after the interests of industry The Service Delivery Group will design and deliver The group consists of: and the community in Western Australia through services that will meet the needs and expectations • Facilities Services the significant legislation program it administers of our community, customers and industry. and through compliance, conciliation, dispute The group will ensure the department is client • Executive and Information resolution and enforcement. Additionally, it will focused and alert to opportunities to improve Management Services maintain and monitor industry specific technical and evolve service delivery methods that are • Human Resources standards, and use sophisticated analysis and efficient and effective, and keep pace with the surveillance to monitor industries. advancement of technology. • Finance and Financial Planning. 17 GSWA OPEN DAY 2018 PROMOTES WORLD CLASS GEOSCIENCE

The cutting edge of geoscience was on “EIS funding has supported many of GSWA’s Staff also demonstrated a range of business display at the Department of Mines, Industry achievements across mapping, business systems systems including the latest updates for GeoVIEW. Regulation and Safety’s (DMIRS) Geological and geoscience, and today is about underlining WA, GSWA’s award-winning, state-of-the-art Survey of Western Australia (GSWA) Open these efforts and opening them up for discussion,” geoscientific web application that is continuously Day 2018 held on 23 February. he said. updated with the latest geoscience and resource information. Promoted as the premier geological event in WA, A presentation on Frogtech’s new SEEBASE the popular annual event lived up to its reputation model of the Canning Basin was visually stunning Along with the displays and demonstrations by showcasing the latest geological information and drew an enthusiastic crowd. This update of of online systems, other presentation through a range of presentations, demonstrations a 2005 study increases the resolution of the highlights included: Canning Basin depth-to-basement model and and poster displays. • The latest results from ongoing mapping, incorporates newly acquired geophysical data, geochronology and geochemistry programs surface geology, and information on petroleum in the Yilgarn Craton wells and mineral boreholes. • An appraisal of the geological setting of Another well-attended open day presentation the current Pilbara conglomerate-hosted featured information on GSWA’s major review gold nugget ‘gold rush’, and the reality of diamond prospectivity in Western Australia. of comparisons to South Africa’s highly The review compiled and assessed about endowed Witwatersrand Basin 88,000 exploration diamond samples, and the presentation outlined the project’s methodology • A study on the fingerprinting of gold nuggets and results of the indicator minerals, mineral in the Kurnalpi Goldfield chemistry and spatial prospectivity analyses. • New work in the Fortescue and Hamersley Despite prolific diamond exploration, the study basins in the Pilbara Mines and Petroleum Minister Bill Johnston identified regions that are still highly prospective opening the event. • The innovative use of the composition of and underexplored. The study provides a sound zircons from granites as a guide to the springboard for renewed diamond exploration in Mines and Petroleum Minister Bill Johnston, who prospectivity of in the Pilbara and the Yilgarn launched the open day, said he was impressed Western Australia. • Battery metals in Western Australia. by GSWA’s continuing commitment to providing Preliminary data for the NE Canning airborne world-class products. gravity survey, also funded by the EIS, was another The pre-competitive geoscience information GSWA publishes is critical in reducing the “Perth’s geologists and geoscience community major new product released on the day. technical and financial risks involved in exploration, clearly hold the open day in high regard, so GSWA The annual extensive poster display highlighted attracts new investors to WA and reinforces the will continue to do what it does best – providing the results of ongoing collaborative research State’s reputation as a global centre for mining and the maps, geoscience publications and invaluable programs funded by EIS, and by the Mineral energy excellence. data that have earned great respect nationally and Research Institute of WA, including mineral internationally,” he said. exploration targeting with the CSIRO, the Centre for Exploration Targeting and Curtin University as Mr Johnston also opened Round 17 of the part of the Capricorn Distal Footprints project. Co-funded Drilling Program, which is one of the most visible programs within the Exploration Incentive Scheme (EIS).

“The Co-funded Drilling Program focuses on innovative exploration in underexplored greenfield regions, and greatly assists resource exploration in Western Australia,” he said.

“The program is successful, competitive and provides a number of benefits, as it adds to our geological knowledge of the State, helps diminish risks for future explorers, improves exploration efficiency and supports a range of employment opportunities.”

DMIRS Geoscience and Resource Strategy Executive Director, Jeffrey Haworth said EIS funding allowed GSWA to make significant GSWA’s Don Flint (left) and Ian Tyler (right) with Minister Johnston. advances in geoscience and mapping.

18 INNOVATION FUND TO DRIVE REGIONAL JOBS

Innovation across Western Australia’s “The New Industries Fund will support businesses An independent assessment panel will consider regions has received a supercharge boost and communities in regional Western Australia to submissions and make recommendations to the thanks to the early March launch of the diversify the economy and create WA jobs.” State Government on the allocation of funding. $4.5 million regional component of the State The funding will target small-medium enterprises Regional Development Minister Alannah Government’s New Industries Fund. (SMEs), start-ups, organisations providing innovation MacTiernan said innovation was critical to building The New Industries Fund is a $16.7 million initiative support in the regions, and transform existing the capability and economic sustainability of the by the Western Australian Government to support businesses to seize new industry opportunities. State’s regional communities. and accelerate new and emerging businesses to A further $1.4 million will be invested in inter-regional “This funding will support our regions to develop create Western Australian jobs. projects that drive collaboration between innovators their unique competitive advantages, focusing on across the State to promote economic diversification The regional funding will see up to $300,000 developing new businesses and industries as well and job growth. allocated to each of Western Australia’s nine as helping existing businesses transform to meet regions for initiatives to drive innovation, Projects that could be considered under the inter- the challenges of the 21st century,” she said. diversification and job creation at a local level. regional stream include technology development initiatives to support regional growth and Innovation and ICT Minister Dave Kelly described development programs, and commercialisation Organisations and businesses can register regional Western Australian communities as having support for regional start-ups and SMEs. to join a Regional Innovation Partnership at ‘some of the most innovative people in the world’. www.newindustries.wa.gov.au. Each region will establish a Regional Innovation “As the world economy is disrupted by new Partnership to identify collaboratively strategic The Department of Jobs, Tourism, Science technologies, it is important that regional Western projects that have the greatest potential to grow and Innovation manages the New Industries Australia remains at the cutting edge,” Mr Kelly said. regional communities. Fund: www.jtsi.wa.gov.au

MINISTER LAUNCHES ROUND 17 OF CO-FUNDED DRILLING PROGRAM

One of several schemes within the Exploration In the Eastern Goldfields, Great Boulder Resources Incentive Scheme (EIS), the program offers discovered significant copper–nickel–cobalt at co-funding for innovative exploration in Mount Venn, east of Laverton. underexplored greenfield regions. Funding single deep holes has encouraged Mr Johnston applauded the flagship companies to drill for mineralisation well below drilling program’s many successes and shallow surface anomalies. MacPhersons economic benefits. Resources recently intersected visible gold in the Boorara dolerite zone 310 metres below previous “The program greatly assists resource exploration known gold mineralisation. in Western Australia, as it adds to our geological knowledge of the State, helps diminish risks Round 17 applications will be reviewed by an for future explorers and supports a range of external expert team, along with senior staff employment opportunities,” he said. from GSWA.

“The application process is keenly contested, Successful applicants will be announced in May– which reflects the quality of the program and June 2018, and they will have 12 months to carry our reputation as a global centre for mining and out drill programs from July 2018 to the end of energy excellence.” June 2019. Mines and Petroleum Minister Bill Johnston Recent success stories from previous rounds The annual Open Day showcases the include important finds in the eastern Pilbara, latest geoscience information and GSWA’s Mines and Petroleum Minister Bill Johnston including Antipa Minerals Minyari copper–nickel– recent activities. officially opened Round 17 of the Co-funded cobalt discovery, Sipa Resources’ Paterson North Drilling Program at the Geological Survey of copper–gold project and Encounter Resources’ Western Australia (GSWA) Open Day 2018. copper and zinc prospects. 19 Lindsay Collin’s work included research on Shark Bay’s stromatolites.

COLLINS COLLECTION INCLUDES GEOLOGICAL ICONS

Western Australia has a long history of some anywhere on Earth. They were first discovered by of the Australia-New Zealand Science Council of the most notable geological icons in former Executive Director of the Geological Survey for the Integrated Ocean Drilling Program (IODP) Australia and the world. of Western Australia (GSWA), the late Dr Phil and a Project Leader for the WA Marine Science Playford, in 1954 and were largely responsible for Institution (WAMSI) Kimberley Research Program. Some of these icons include the Earth’s oldest Shark Bay being listed as a World Heritage Area. A long association with Shark Bay led to the Curtin mineral grains at Jack Hills in the State’s Mid West, Shark Bay Project and the Caring for Our Country the earliest evidence of life on Earth with Lindsay Collins was a respected geologist from Shark Bay Project. 3.5 billion year old rocks in the Pilbara, 2.5 billion Western Australia. His research interests at year banded iron formations, the Devonian barrier Curtin University encompassed continental shelf Sadly he passed away on 2 September 2015, reef in the Kimberley and the modern stromatolites sedimentology and substrate mapping, the coral but his legacy lives on in his personal extensive at Shark Bay. reefs of the Western Australian continental margin, collection now housed in the Perth Core Library. petroleum reservoirs, coastal mapping using These geological icons and more can be Geographic Information Systems (GIS), tertiary found in the catalogue of the Perth Core Library. limestone deposition and evolution, stromatolites, In 2016 the Perth Core Library took receipt of and warm and cool water carbonates. His most the Lindsay Collins collection of sedimentary recent research was focused on Shark Bay, with and paleontological specimens and samples which he had a long association, and the little from Curtin University. This collection is the known coral reefs of the Kimberley. largest academic collection ever donated to the core library. Professor Collins also worked in petroleum exploration as a specialist sedimentologist, A large part of the collection is comprised of and as a researcher in continental shelf, coral stromatolites from the Shark Bay area and reef and coastal geology, specialising in sedimentary samples from the Abrolhos Islands carbonate sedimentation. and North West Shelf. He investigated coastal vulnerability at Geraldton The living stromatolites at Shark Bay are world Port and in the Mid West region, the evolution of famous. These modern-day analogues of stromatolites in coastal embayments and lakes, Archean stromatolites are little altered from their the growth history of coral reef systems of ancestors that were first found 3400 million Australia’s western margin, and slope and coastal years ago, and flourished about 2800 million processes and sediments. years ago. The stromatolites flourish in a placid He has been Chief Scientist aboard RV Franklin, a super-saline environment. national research vessel, on several instances. Prof Stromatolites are renowned as the most extensive Collins was the Head of Applied Geology at Curtin Lindsay Collins. Photo: Curtin University and diverse organisms of their kind found for six years. Up until his death he was a member

20 19801987 2015 FORTY YEARS2000 OF PROSPECT2010 MAGAZINE2005 1990 1995 2000

1980

A B C

A) The front cover from a 1979 edition of Prospect. The basic template was used for the next nine years. B) The first cover to feature a colour photo asw in October 1987. C) Development of the Ord has featured in Prospect on a number of occasions – the above article appeared in the March–May 2007 edition. D) The very first major projects map (left) and how it looks today (right). D

This edition of Prospect marks forty years for stable design template for the first decade of Prospect charted the introduction of important “Western Australia’s international resources its existence, between 1987 and 1993 the legislation and associated amendments, development magazine”. magazine underwent seven redesigns – ranging including the Mining Act 1978, the Mines Safety from relatively minor adjustments to complete and Inspection Act 1994 and numerous State It didn’t start out that way. Beginning in 1978, design overhauls. Agreement Acts. Prospect was created as a “quarterly bulletin for senior management issued by the Government of While covers, ministers and even department For forty years Prospect has promoted the Western Australia”. names may have changed, one thing that has innovation, strength and resilience of Western stayed the same is the important information Australian industries and the legislation that The first edition included a policy review, Prospect provides in showcasing Western underpins them. The magazine has charted commodity review, regional overview, statistical Australia’s resources development – including the Western Australia’s rise to a globally recognised analysis, economic indicators, newspaper clippings resource projects map which has been a feature player in a number of industries, particularly the and a major projects map. There were no glossy since the first edition. resources sector. covers featuring photos of some of the massive To commemorate forty years of Prospect, a resource projects starting to take shape throughout Developments such as the North West Shelf, selection of articles from the magazine’s archives Western Australia. A simple headshot of the then Gorgon, Kalgoorlie-Boulder’s Super Pit, the Ord have been reproduced and provide markers for Minister and a signed introductory letter he had River Irrigation Scheme, Pilbara Cities and the Dampier-Bunbury Natural Gas Pipeline are just a some notable events in the history of Western penned was the template enshrined for the first small selection of the projects that have helped Australia’s development. nine-and-a-half years of Prospect covers. shape Western Australia and have been featured The first break from tradition came in October in Prospect. The magazine has also highlighted the 1987, when a North West Shelf rig graced the relationships Western Australia has fostered with our magazine’s first full-colour cover. After a relatively international trading partners from around the world. 21 Iron ore is the powerhouse of Western Australia’s resources economy. Worth more than $60 billion last year, more than 780 million tonnes of Western Australian iron ore was shipped 19801987to international customers. In 2008 the sector was worth $30 billion and shipped 303 million tonnes. That same year, Prospect marked the arrival of the State’s newest iron ore producer – Fortescue Metals Group. 2000 2015 2010This article originally appeared in the2005 March – May 2008 edition of Prospect. 1995

22 1980 1990 1987 2015 2010 20001979

23 The rise of China has been one of the most significant shifts in the world economy since the post-World War Two economic boom. China’s $11.9 trillion economy is now ranked second only to the United States. Back 19801987in 2004 China’s economic rise was taking shape and Prospect featured a special report on China’s industrial expansion and its impact on Western Australia’s resources industry. At the time, State exports to China totalled $4.2 billion and represented WA’s second-largest export2015 partner, behind South Korea. Last year WA’s exports to China reached2000 $60.2 billion and represented our largest export partner, worth more than our exports to the next four largest export countries combined (exports to Japan, Hong Kong, South Korea and United Kingdom were worth $36.4 billion). 1995 This article originally appeared in the March–May 2004 edition of Prospect and provides a fascinating 2010snapshot in time and is also a reminder2005 of the importance of China to Western Australia’s economy today.

24 1980The Golden Gecko Awards for Environmental Excellence started in 1992. Yet to adopt the ‘Golden Gecko’ moniker, the event was called the Department of Minerals and Energy’s Awards for Environmental Excellence in the Mining and Petroleum Industries. In 1992 and 1993, a total of nine companies were recognised and1987 presented with the top award. The following year only two top awards were handed out. This also marked the first time in the award’s short history that an individual2015 was honoured with the top 1990prize. The following is the story of that individual. 2010This article originally appeared in the September–November2000 1994 edition of Prospect1979.

25 In 1989, Japan became Western Australia’s first Liquefied Natural Gas (LNG) customer. Almost three decades later, the nation remains Western Australia’s biggest LNG export market. Back in 1989, Australia 19801987did not appear in the list of the top five LNG exporters in the world. Today Australia is second behind Qatar, and is scheduled to surpass the Arabian Gulf country within the next year or so. The article presciently points to the growing importance of LNG exports for WA and2015 its use as a cleaner fuel for global energy supply. Today LNG is Western2000 Australia’s second-most valuable resource commodity, behind only iron ore. 2010The following article originally appeared2005 in the Spring 1989 edition of Prospect. 1995

26 1980 1990 1987 2015 2010 20001979

27 Western Australia’s prosperity has been built on the back of its mineral resources – particularly gold. While other resources may be more valuable to the State’s economy, gold started Western Australia on its path to prosperity. This year Kalgoorlie-Boulder celebrates 125 years since gold was first discovered. Back in 1993, Prospect magazine 19801987marked the 100th anniversary with a special feature on the city. The piece included a story on the development of the Super Pit. In 1993, the Super Pit was only 110 metres deep. Today,2015 it plunges more than 600 metres downwards, stretches 3.5 kilometres long2000 and is 1.5 kilometres wide. 2010This article originally appeared in the 2005June–August 1993 edition of Prospect. 1995

28 1980 1990 1987 2015 2010 20001979

29 Commenced Operations Committed Projects Projects Under Consideration

IRON ORE PROCESSING OIL & GAS DEVELOPMENTS AGRICULTURE Pilbara – Cape Preston – Sino Iron Carnarvon Basin – Greater Western Flank East Kimberley – Project Sea Dragon CITIC PACIFIC Phase 2 SEAFARMS GROUP LIMITED WOODSIDE ENERGY The Sino Iron project is located at Cape Preston, Seafarms Group is a Queensland based 100km southwest of Karratha. The project is The Greater Western Flank 2 Project was producer of farmed prawns. Seafarms proposes the largest magnetite mining and processing approved in December 2015 and will develop to invest up to US$1.45b over the next eight development in Australia, with a mine life of gas and condensate from the Keast, Dockrell, years in Project Sea Dragon, a large scale, more than 25 years. Six processing lines are Sculptor, Rankin, Lady Nora and Pemberton fields integrated, land based aquaculture project to now operational. The first shipment of magnetite via a subsea tieback to the existing Goodwyn produce black tiger prawns for export markets in concentrate to China occurred in late 2013. The platform. The project has awarded most major Asia. The aquaculture component of the project project comprises in-pit crushers, a 29km slurry contracts and commenced manufacturing and will be located in the Northern Territory and is pipeline, with an annual capacity to produce fabricating key project infrastructure. The project planned as a staged development commencing up to 24Mt of magnetite concentrate. The is expecting start-up from the initial tranche of five with Stage 1, 1000ha of ponds and supporting downstream processing facility has required wells in 1H 2019, with the remaining three wells infrastructure. In Western Australia a founder significant investment in dedicated supporting expected in 1H 2020. stock and quarantine centre is operational in infrastructure including a new port facility, a 51GL Expenditure: $2.8b. Exmouth, a processing plant is proposed for desalination plant and a 450MW combined cycle Kununurra, and subject to competitive tender Carnarvon Basin – Persephone Project gas fired power station. Wyndham port will be utilised for export and WOODSIDE ENERGY Expenditure: $16b. import. The project will create approximately The Persephone project achieved start-up in 300 jobs in the Kimberley during construction, Employment: Construction: 4000 July 2017, six months ahead of schedule. The 150 direct jobs in the region at Stage 1 building Operation: 1000 Persephone field produces using subsea tieback to the existing North Rankin Complex. to 700 direct jobs when fully operational. Seafarms Group expect to commence OIL & GAS DEVELOPMENTS Expenditure: $1.2b. development during 2018. Pilbara – Wheatstone LNG Development CHEVRON AUSTRALIA PTY LTD Carnarvon Offshore Basin – Barrow Island – Gorgon Project HEAVY MINERAL SANDS Chevron Australia Pty Ltd as Operator of the Wheatstone Project is completing construction of GORGON JOINT VENTURE Shark Bay – Coburn Mineral Sands Project two LNG trains and a domestic gas plant at the The Gorgon Foundation Project on Barrow Island, STRANDLINE RESOURCES LIMITED Ashburton North Strategic Industrial Area near is a three train LNG development with a nameplate The Coburn mineral sands project, located south Onslow. The Project, which includes a deepwater capacity of 15.6Mtpa and includes a domestic of Shark Bay and approximately 250km north of port, will initially produce 8.9Mtpa of LNG and gas plant capable of delivering at least 300TJ/d of Geraldton, contains total ore reserves of 308Mt have a 200TJ per day domestic gas plant gas to the mainland. Cost estimates for the project at an average grade of 1.2% heavy minerals, all connected to the Dampier-to-Bunbury Natural construction are expected to total more than of which lie within the portion of the project area Gas Pipeline. First LNG production commenced A$55b. The project involves the processing of gas that has received government environmental on 9 October 2017, and the first export shipment from both the Gorgon and Jansz/Io gas fields and approvals for mining. At a mining rate of left on 31 October 2017. includes potentially the largest commercial CO2 23.4Mtpa, the project is expected to produce Expenditure: $40b. geosequestration project in the world. Train one 49,500tpa of zircon, 109,000tpa of chloride start up and first shipment of LNG commenced ilmenite and 23,500tpa of a mixed Employment: Construction: 7200 in March 2016. Train 2 produced first LNG in rutile-leucoxene over its 19 year mine life. Operation: 400 October 2016 and train three was commissioned In November 2017, Strandline announced in March 2017. Commissioning of the CO2 that it had initiated a funding and development LITHIUM injection project is expected in Q4 2018. strategy aimed at bringing the Coburn project Kwinana – Tianqi Lithium Processing Project Expenditure: $55b. into production. TIANQI LITHIUM AUSTRALIA PTY LTD Employment: Construction: 8000 Expenditure: $173m. Tianqi Lithium Australia Pty Ltd holds a 51% Operation: 300 Employment: Construction: 170 interest in Talison Lithium, the operator of the Operation: 110 Greenbushes mine in the South West of WA. The company has committed to a major INFRASTRUCTURE expansion of the mine and the construction of a lithium hydroxide processing plant at the West Kimberley – Browse LNG Precinct Kwinana Strategic Industrial Area, south of Perth. WA STATE GOVERNMENT The processing plant will be constructed in two The State Government is developing the stages. The first stage will accommodate the Browse Liquefied Natural Gas (LNG) Precinct production of 23,900tpa of lithium hydroxide approximately 60km north of Broome. By and will occur between 2016–2018. The focussing development at a suitable location, the second stage will expand the plant to produce Precinct will minimise the environmental footprint up to 47,800tpa of lithium hydroxide and of gas processing and any social impacts in the will occur between 2018–2020. The final product region while maximising opportunities for the local will be shipped to customers in community to benefit from development of the China. Lithium hydroxide is a highly-valued Browse Basin gas fields. The Precinct will have resource for industries involved in energy the capacity to accommodate at least two LNG storage, hybrid vehicles, aviation and other processing operations, with a combined capacity technological industries. of up to 50Mtpa. The State Government has Expenditure: $608m. acquired the land for the Precinct and will secure all relevant approvals to ensure the Precinct is Employment: Construction: 500 ‘project ready’. Operation: 115

30 This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. Projects Under Consideration

IRON ORE Pilbara – West Pilbara Iron Ore Project – API Port/Rail Pilbara – Balla Balla Infrastructure Project API MANAGEMENT PTY LTD BALLA BALLA JOINT VENTURE The Australian Premium Iron Joint Venture is BBI Group (BBIG) is proposing the Balla Balla proposing to develop the West Pilbara Iron Ore Infrastructure project (BBIP), a rail and port Project. Stage 1 of the project is based on the development, which when constructed will production of 40Mtpa of direct shipping iron comprise an integrated port and rail infrastructure ore from deposits, including Red Hill and Mt system that will provide a new gateway to the Stuart deposits, located 35-80km south west iron ore rich Pilbara region in Western Australia. of Pannawonica. The ore is proposed to be Initial planned annual capacity of the rail and transported by a 282km heavy haul railway for port is 50Mtpa. The Balla Balla port is located export via the proposed multi-user port at halfway between Dampier and Port Hedland. The Anketell. State and Federal environmental proposed infrastructure for the BBIP includes a approvals for the mine, rail and port elements of train loading facility at the central Pilbara iron ore the project are in place. Subject to the successful source, a 165km single-track standard gauge completion of feasibility studies, and receipt of final railway and a multi-user port facility. The Railway regulatory approvals, the company anticipates (BBI Rail Aus Pty Ltd) Agreement 2017 was construction to commence following a decision to executed between the State, the Company and proceed by the joint venturers and completion of the Guarantors in January 2017 with the Railway funding arrangements. (BBI Rail Aus Pty Ltd) Agreement 2017 being ratified in December 2017. Expenditure: $6.8b. Expenditure: $5.6b. Employment: Construction: 1500 Operational: 900 Employment: Construction: 3300 Operation: 900 Shire of East Pilbrara – Koodaideri Iron Ore Mine and Infrastructure Project Pilbara – South Flank Project MOUNT BRUCE MINING PTY LTD BHP BILLITON IRON ORE PTY LTD Rio Tinto is investigating the development of the BHP proposes to develop the South Flank Koodaideri iron ore deposit located about 110km sustaining mine project in the central Pilbara. north-west of Newman. The Koodaideri Project Initial funding of A$244 million has been would have a capacity of about 40Mtpa of iron ore approved for the project. The South Flank project requiring the development of a new mining area at will leverage and expand the existing Mining Koodaideri, crushing, screening, stockpiling and Area C hub and replace production from the rail load out infrastructure plus a 170km railway. Rio 80Mtpa Yandi mine when it reaches the end of Tinto is currently undertaking a project feasibility its economic life in the early-to-mid 2020s. The study that is focusing on obtaining consents and project is expected to be submitted for Board providing data to validate the project. Potential for approval in the middle of 2018 calendar year, first ore production in about 2021. with the first ore targeted in the 2021 calendar Expenditure: $3b. year ramp up, timed to coincide with the closure of Yandi. Full development of South Flank would Employment: Construction: 1600 generate thousands of jobs during construction. Operational: 600 South Flank is located approximately 130km by road north-west of the town of Newman, and adjacent to the Company’s existing Mining Area C operation. The proposed project would establish mining operations at South Flank and transport ore to an expanded Mining Area C hub for processing and onward logistics. The proposed project is currently in study phase and is subject to a number of internal and external approvals.

This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. 31 Significant resource projects in Western Australia

Western Australia continues to lead the way as Australia’s premier resources investment destination. There are more than A$126 billion worth of projects either committed or under consideration for the State during the next few years. These would create more than 25000 construction jobs and more than 4000 permanent jobs.

This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australia resources industry. Based on company announcements.

Significant Projects as at March 2018

Project Value Employment (estimated A$m) Construction Permanent

Iron and Steel

API Management Pty Ltd – West Pilbara Iron Ore Project 6800 1500 900

Balla Balla Joint Venture – Balla Balla Infrastructure Project 5600 3300 900

BHP Billiton Iron Ore Pty Ltd – South Flank n/a n/a n/a

CITIC Pacific – Cape Preston Mine & Processing Projects 12000 4000 1000

Mount Bruce Mining Pty Ltd – Koodaideri Iron Ore Mine 3000 1600 600 and Infrastructure Project

Sub Total 27400 10400 3400

Oil, Gas and Condensate Prospect Browse LNG Precinct n/a n/a n/a Chevron – Wheatstone LNG 40000 7200 400

Gorgon Joint Venture Gas Processing Project 55000 8000 300

ONLINE Woodside Energy – Greater Western Flank Phase 2 2800 n/a n/a

Woodside Energy – Persephone 1200 n/a n/a

Did you know you can register for the Sub Total 99000 15200 700 digital edition of Prospect for free by TOTAL 126400 25600 4100 signing up to the RSS feed on the All currency figures are in Australian dollars unless otherwise specified. Prospect page of DMIRS’s website? Once registered, you will receive Abbreviations Key notification as soon as a new edition of b billion m million EPC Engineering, Procurement and Construction Mt million tonnes Prospect is available to view online. GL gigalitres Mtpa million tonnes per annum Just go to: ha hectares MW megawatts www.dmp.wa.gov.au/prospect JV joint venture t tonnes km kilometres THM total heavy mineral to sign up. LNG liquefied natural gas TJ terajoules LOA length overall tpa tonnes per annum

Are your contact Prospect goes digital for subscribers For forty years Prospect has helped promote the innovation, strength and resilience of Western Australian industries. details up-to-date? For the past 12 months, Prospect has suspended hard copy subscription renewals. Starting from the June 2018 edition, the Department will no longer provide hard copy editions directly to If your contact details are changing subscribers and is encouraging current subscribers to sign up for the free digital version of the magazine. Hard copies of the magazine will still be available for collection from front reception areas at DMIRS’ or have changed you can now update Mineral House building in East Perth and JTSI’s office at 1 Adelaide Terrace in East Perth. In order to download your digital version free of charge visit them online. www.dmp.wa.gov.au/prospect and sign up to the Prospect magazine mailing list. www.dmp.wa.gov.au/prospect Thank you for your continued support of Prospect Magazine. 32 Sign up to receive your FREE digital copy of Prospect magazine at www.dmp.wa.gov.au/prospect Major Resource Projects

Reindeer Gnu Caribou March 2018 Corvus Port Hedland Salt Wandoo Ridley Tusk Port Hedland Oryx Stag Chamois Yara Pilbara Fertilisers NWSV LNG Mineral symbols Commodities Yara Pilbara Nitrates Pluto LNG Cape Lambert Anketell Balla Balla Precious metal Ag...... Silver Dampier Salt Creek Zn Cu Pb Cape Lambert Au (or as shown) Dampier Salt Balla Balla Fe V Ti Au...... Gold Cape Preston Sherlock Bay Steel alloy metal Cu...... Copper Cape Preston East Whim Creek Cu Spinifex Ridge Mo Cu Ni (or as shown) Devil Creek Gas Fe...... Iron Maitland River Pilgango ora Li Ta Miralga Creek Radio Hill Speciality metal K...... Potassium Li Ta Sulphur Springs Zn Cu Pb Ti–Zr (or as shown) Whundo Zn Cu Kln...... Kaolin Sino Iron ! MARBLE BAR Base metal Balmoral South Wodgina Li Li2CO3 Li...... Lithium Iron Bridge Mag Iron Mardie Salt Li2CO3..... Lithium carbonate Alumina All sites are bauxite LNG...... Liquefied natural gas Corunna Downs LPG...... Liquefied petroleum gas Mt Webber Coal and lignite McPhee Creek Industrial mineral Mag...... Magnetite PANNAWONICA Big Hill W ! Processing plant Mn...... Manganese Middle Ro be Mesas Mo...... Molybdenum Mesa J Mesa A – Warramboo Ni...... Nickel Nullagine/Millennium Petroleum symbols Pb...... Lead Caliwingina Bungaroo Creek Nullagine CID Gas field Phos...... Phosphate Weelumurra Firetail Bungaroo South Investigator Oil field REE...... Rare earth elements PIOP/Flinders Mulga Downs Mesa – Ant Hill Mn Serenity Kings Oil and gas field Sisd...... Silica sand Homestead Significant oil discovery Ta...... Tantalum Silvergrass Cloud Break West Pilbara Christmas Creek Processing plant Ti...... Titanium Nammuldi Roy Hill Oil / gas pipeline, operating Tlc...... Talc Eliwana Western Turner Koodaideri Oil / gas pipeline, proposed V...... Vandium Paulsens Brockman 4 Syncline TOM PRICE Extension Marillana W...... Tungsten ! Marandoo Nyidinghu Beasley River Yandi/BHPB Infrastructure Zn...... Zinc Tom Price Yandicoogina/HI Iron Valley Rocklea CID Hope Downs 1 Power plant Zr...... Zirconium Mining Area C Jinidi Irrigation / water / desalination Hardey South Flank Rhodes Ridge Port Ophthalmia PARABURDOO Turee Syncline Wonmunna Western Range ! West Angelas Hope Downs 4 Eastern Range 24–25 31 Paraburdoo Giles Mini Wheelarra JV Pilbara Channar Mt Whaleback ! Davidson Creek 35 NEWMAN 0 50 100 17–18 Jimblebar Robertson Range Kilometres Enquiries for latest information for Commonwealth controlled waters is available from Prairie Downs Zn Pb Ag the National Offshore Petroleum Titles Administrator (NOPTA) at

Project labels: South West / Mid West Coastal Projects operating or currently under development with an actual or anticipated value of production greater than A$10 Million are shown in blue Oakajee Deflector Au Cu Ag Proposed or potential projects with a capital expenditure greater than A$20 Million are shown in red Mineral separation Golden Grove Cu Zn Pb Geraldton Shine Projects under care and maintenance are shown in purple Narngulu synthetic rutile Geraldton brick Golden Dragon Alinta–Walkaway wind Greenough Rive r solar Mumbida wind Irwin River Mungada East Extension Odysseus–Cosmos Karara Mag Mt Mulgine W Rosie Moolart Well Corybas Oxley K Goldfields See Dongara Leinster enlargement 0 50 100 Magnetite Range Darlot Garden Well & Rosemont Cliff Head Three Springs Tlc Extension Hill Mag Lawlers Vivien Xanadu Iron Hill Kilometres Agnew–Emu Eneabba/Sheffield Ben Hur – Epsilon Eneabba/Iluka Thunderbox Senecio Dongara Waitsia Irwin Warradarge wind Centauri 1 Xyris Synaphea Bentley Zn Pb Cu Xyris South Windarra Eremia Mondarra Warro Hovea Apium Gas Storage Jingemia Mt Forrest King of the Hills Evandra Mt Morgans ! Leonora/Kin Burtville JURIEN BAY Dandaragan K Phos Cashmere Downs Badgingarra wind Mt Weld Phos !LEONORA NiWest Wallaby Mt Weld REE Emu Downs wind and solar Moora Silica Sons of Gwalia Atlas Dongara Tarantula Waddi wind Dongara Cooljarloo/Tronox 0 5 Mt Bevan Murrin Murrin Redback Mt Mason Sunrise Dam Beharra Springs Ulysses Yandin wind km Mt Ida Red October Cataby Fortitude Yerecoin Calingiri Cu Mo Ag Au Second Fortune

Deep South Boonanarring Gingin West Wandoo Red Gully Jump Up Dam Lake Giles Deception Highway Chandala mineral separation and synthetic rutile NORTHAM Goongarrie ! Windarling Davyhurst Kwinana–Rockingham Felicitas Scotia Neerabup/Newgen Fortuna Dana Kln Meckering Kln Aphrodite Karari Alumina refinery Caversham tile Marda Ammonium nitrate Malaga brick Middle Swan brick Mt Jackson Siberia Kalgoorlie North Pinnacles Bulk terminal Midland brick Lindsays ! Sandy Ridge Kln Ora Banda Cement and lime PERTH Airport brick Silver Swan Chlor alkali Fremantle Desalination Paddington Armadale brick Kanowna Belle Fused alumina Castle Hill

Fused zirconia G Cardup brick Kundana KALGOORLIE–BOULDER Bombora – Lake Roe Lithium hydroxide Frogs Leg ! Superpit Nimbus–Boorara Ag Au Zn LNG Koolyanobbing White Foil LPG Keysbrook Nickel smelter Athena COOLGARDIE ! Blair Nickel refinery Coolgardie Huntly Bullabulling South Kal Mt Monger Nickel sulphate Aldiss Pinjarra Alumina Burbanks Randalls Oil refinery Mt Marion Li Ta Carnilya Hill Power plant Boddington Au Cu Nepean Long–Victor ! SOUTHERN CROSS Sodium cyanide Marradong Nickel concentrator Marvel Loch St Ives Titanium pigment Wagerup Alumina Willowdale Saddleback Zirconia Lanfranchi Southern Seawater desalination Kemerton Sisd Nevoria Bald Hill Li Ta Lithium hydroxide Titanium pigment Miitel Silicon smelter Mariners Chlor alkali Worsley Alumina Bunbury ! Bluewaters 1–2 Collie Ewington Premier Polar Bear Cristal mineral separation Doral mineral separation Capel North synthetic rutile Wonnerup Wonnerup North Wonnerup South Tutunup Earl Grey Li Mt Thirsty Tutunup South ! NORSEMAN Yoongarillup Lake Johnston 0 50 100 Whicher Range Ta Greenbushes Li Ta Flat Rock wind Mt Henry Flying Fox Kilometres New Morning Spotted Quoll Mutineer Fletcher Exeter Finucane Persephone Lambert Deep North West Shelf Athena Eaglehawk Hermes Searipple Lambert Major Resource Projects Capella Egret Angel Thebe Cossack Perseus Forestier Laminaria East North Rankin Wanaea Ajax Chandon Gaea Montague Goodwyn S/Pueblo Goodwyn Hurricane March 2018 Keast Yellowglen Rankin/Sculptor Tidepole Urania Dockrell Dixon/W.Dixon Project labels: Jansz Wheatstone Sage Geryon Pluto Iago Pemberton Io South Reindeer Saffron Projects operating or currently under development with an actual or anticipated Scarborough Toporoa Eurytion Xena Winchester Gnu Brunello Wilcox value of production greater than A$10 Million are shown in blue Chrysaor/Dionysus Balnaves Corvus Caribou Bravo Briseis Maenad Orthrus Julimar Wandoo Proposed or potential projects with a capital expenditure greater than A$20 Million Glencoe Orthrus/ Maenad See Tusk Nimblefoot Achilles Acme West Tryal Rocks Barrow Island Clio Oryx Stag are shown in red John enlargement The Grafter Clio South Gorgon Chamois Clio North Brookes Projects under care and maintenance are shown in purple Satyr Yara Pilbara Fertilisers NWSV LNG Prometheus Petrel Mentorc Rosella Davis Pluto LNG Chester Rosella North Yara Pilbara Nitrates Argus Anketell Frigate Tern Spar Dampier Concerto/Ichthys Halyard Maitland Dampier Salt Mimia Pharos Cornea Bianchi Cape Preston Cape Lambert Cape Preston East Ichthys West Echuca Shoals Zola Ichthys Antiope Maitland River Devil Creek Gas Torosa Prelude Cape Bougainville Blacktip Tallaganda Pasco Radio Hill Whundo Zn Cu Brecknock Bunyip Flinders Shoal Sino Iron Gwydion Balmoral South Calliance Turtle Mardie Salt South Chervil Coniston Ramillies Taunton Nasutus Mardie Novara Wildbull Nimrod Cyrano Sorby Hills Pb Zn Cu Van Gogh Tanglehead Australind Stickle Corowa Cadell Ord Stage 2 Vincent Moondyne Wyndham Toro Stybarrow Pyrenees Outtrim Ashburton North Barrow Island Ord Stage 1 Laverda Blencathra Cockatoo Island ! Enfield Macedon Coaster Onslow 0 10 Wonnich Bambra KUNUNURRA Scafell Crosby Onslow Salt Ulidia Irvine Island Koolan Island Wonnich Deep Ravensworth Leatherback Wheatstone LNG km Linda Ord River Hydro Energy Macedon Gas Bambra East Lee Tubridgi Gas Storage Spartan Rose Speewah V Ti Fe Speewah Fl North Alkimos Harriet Monty Josephine Smoke Creek Exmouth Baker Matsu Argyle Rivoli Agincourt Ginger Cape Range Lst Simpson South Plato Point Torment Barrow I Little Sandy Derby Double Island Pedirka Lloyd Browse LNG Precinct Boundary Savannah North 0 50 100 Gorgon LNG Victoria Thunderbird Sundown Savannah Barrow IslandPerseusWest Cycad Narvik Blina McIntosh Gr Broome Yulleroo Panton Pt Pd Copernicus Ungani Valhalla–Asgard Kilometres Rough Range Duchess–Paradise Valhalla Paulsens Koongie Park Zn Cu Pb ! HALLS CREEK Lamboo Brockman REE Nb Zr Phoenix South Kapok West Pb Zn Ag Roc Browns Range REE Commodities Admiral Bay Zn Pb Ag...... Silver Cummins Range REE Au...... Gold Co...... Cobalt Kentish Knock Brederode Cu...... Copper Eendracht Dmd...... Diamond Port Hedland Asian Renewable Energy Hub wind & solar Fe...... Iron Fl...... Fluorite Citadel Au Cu Gp...... Gypsum Gr...... Graphite Woodie Grt...... Garnet Woodie Minyari–WACA Au Cu Co Mn K...... Potassium Telfer Au Cu Kln...... Kaolin Nifty Cu O'Callaghans W Cu Zn Pb Li...... Lithium Yeneena Cu Maroochydore Cu Co LNG...... Liquefied natural gas Kintyre Lst...... Limestone Lake Mackay K Mag...... Magnetite See North West Shelf Nicholas Downs Mn Mn...... Manganese enlargement Nb...... Niobium Lake Disappointment K Ni...... Nickel Pb...... Lead Pd...... Palladium Yangibana REE See Pilbara enlargement PGE...... Platinum group elements (inside cover) Pt...... Platinum Cape Cuvier Lake MacLeod Gp Ilgarari Cu Butcherbird Mn REE...... Rare earth elements Lake MacLeod Salt Abra Pb Cu Zn Ta...... Tantalum Beyondie K Beyondie Ti...... Titanium CARNARVON ! Horseshoe Lights Cu Au Ag Plutonic Dome V...... Vandium Fortnum Plutonic W...... Tungsten Glenburgh Hermes Thaduna Cu Ag Yalbra Gr Telecom Hill Zn...... Zinc Peak Hill DeGrussa Monty Zr...... Zirconium Cu Au Cu Au Succoth Cu PGE Jack Hills Wingellina Andy Well Matilda West Musgrave Mineral symbols Shark Bay Salt Jundee–Nimary Tollu Cu Paroo Station Pb Central Murchison Wiluna Precious mineral Lake Wells / Salt Lake Potash Dmd Wiluna West Wiluna/Toro Coburn Weld Range Honeymoon Well Precious metal Reedys Gabanintha V Ti Fe Yeelirrie Au (or as shown) Cue JV – Hollandaire Cu Au Ag Gidgee Mt Keith Big Bell Cliffs Lake Wells / Australian Potash Steel alloy metal Barrambie Yakabindie Bronzewing Ni (or as shown) Comet V Ti Fe Speciality metal Dalgaranga Ti–Zr (or as shown) Balline Grt Mt Magnet Gruyere Base metal Port Gregory Grt Yogi Mag Iron Windimurra V Fe Alumina Kirkalocka Geraldton All sites are bauxite Cyclone Coal and lignite Tropicana Uranium Industrial mineral Processing plant Mulga Rock Petroleum symbols Gas field Oil field Oil and gas field Edna May Significant gas discovery Collgar wind Significant oil discovery Nova–Bollinger EUCLA ! Significant oil and gas discovery PERTH ! Fremantle Tampia Processing plant Oil / gas pipeline, operating Cosmic Boy Concentrator See Goldfields Oil / gas pipeline, proposed Wickepin Kln enlargement Salmon Gums (inside cover) Infrastructure Bunbury Scaddan Power plant Katanning Mt Cattlin Li Ta Ravensthorpe 0 100 200 300 400 Irrigation / water / desalination Great Southern Au Cu Port Esperance Kilometres See South West / Mid West Coastal enlargement (inside cover) Southdown Enquiries for latest information for Commonwealth controlled waters is available from the National Albany & Grasmere wind Albany Offshore Petroleum Titles Administrator (NOPTA) at