Mineral Resources Tasmania Department of Infrastructure, Energy and Resources
A Division of the Department of Infrastructure, Energy and Resources
Mineral Resources Tasmania Annual Review 2007/2008
Mineral Resources Tasmania PO Box 56 Rosny Park Tasmania 7018 Phone: (03) 6233 8377 l Fax: (03) 6233 8338 Email: [email protected] l Internet: www.mrt.tas.gov.au 2
Mineral Resources Tasmania
Mineral Resources Tasmania (MRT) is a Division of the Department of Infrastructure, Energy and Resources (DIER). It is Tasmania’s corporate entity for geoscientific data, information and knowledge, and consists of a multi-tasking group of people with a wide range of specialist experience. The role of MRT is to ensure that Tasmania’s mineral resources and infrastructure development are managed in a sustainable way now, and for future generations, in accordance with present Government Policy, Partnership Agreements and goals of Tasmania Together.
— Mission — ! To contribute to the economic development of Tasmania by providing the necessary geoscientific information and services to foster mineral resource and infrastructure development and responsible land management for the benefit of the Tasmanian community
— Objectives — ! Benefit the Tasmanian community by an effective and co-ordinated government approach to mineral resources, infrastructure development and land management. ! Maximise the opportunities for community growth by providing timely and relevant geoscientific information for integration with other government systems. ! Optimise the operational performance of MRT by developing the organisational structure to support the whole-of-government business processes.
— Activities — Activities within the Division include: ! collection, integration, interpretation, publication and presentation of geoscientific information; ! collection, integration, interpretation, publication and presentation of information on Tasmania’s geohazards; ! regulation of mineral and petroleum exploration and development in Tasmania, including offshore waters administered by the State, and the promotion of vacant areas available for onshore and offshore exploration; ! setting and monitoring of standards for both the performance of exploration activities and the technical reporting of exploration records and case histories; ! environmental appraisal, monitoring and management of mining heritage and land access issues; and ! issue of legal titles for mining tenements, collation and recording of statistics relating to mining production, collection of fees and rentals, management of royalty regimes, and recording of mining tenements.
— Major issues and initiatives for 2008/2009 — ! Continuation of the four-year TasExplore geoscientific data and promotion initiative, following acquisition of aeromagnetic and radiometric data over northeast Tasmania and the Furneaux Group, with geological data acquisition in northeast Tasmania to upgrade the geological interpretation for input to the 3-D geological model. ! The second stage of the gravity survey in northeast Tasmania will be completed. Production of geological maps covering central northern Tasmania following the geological mapping program of the previous year. ! Continue updating data for the Tasmanian Information on Geoscience and Exploration Resources (TIGER) System. ! Undertake a series of promotional activities to encourage mineral exploration in Tasmania, including the promotion of the three-dimensional model of geological structure and major mineralising pathways of Tasmania. ! Produce land stability maps of urban areas in Tasmania, in line with the guidelines developed following the Thredbo disaster. ! Continue rehabilitation of abandoned mining sites in Tasmania.
Mineral Resources Tasmania Annual Review 2007/2008 3
Contents
Mineral Resources Tasmania — Divisional Overview ………………………………… 5 Financial performance ……………………………………………………………… 10 Review of MRT Branch Activities, 2007/2008 ………………………………………… 13 Metallic Minerals and Geochemistry ………………………………………………… 13 Industrial Minerals and Land Management ……………………………………………… 16 Hydrocarbons …………………………………………………………………… 16 Environment, Land Management and Industrial Minerals ………………………………… 18 Urban Geology ………………………………………………………………… 20 Registry ……………………………………………………………………… 21 Information Systems and Geophysics ………………………………………………… 24 Data Management ………………………………………………………………… 27 Finance, Royalty and Administration ………………………………………………… 27 Publications …………………………………………………………………… 27 Library ………………………………………………………………………… 28 Mineral Sector Overview…………………………………………………………… 31 Value of the Tasmanian mineral industry ……………………………………………… 33 Mineral exploration expenditure …………………………………………………… 35 Commodity prices ………………………………………………………………… 36 Review of Mineral Sector Operations ……………………………………………… 37 Metallic minerals ………………………………………………………………… 40 Industrial minerals ………………………………………………………………… 47 Fuel minerals……………………………………………………………………… 48 Construction materials …………………………………………………………… 49 Mineral processing operations ……………………………………………………… 52 Annual Report, Rehabilitation of Mining Lands Trust Fund…………………………… 53
Mineral Resources Tasmania Annual Review 2007/2008 4
Management of Mineral Resources Tasmania (as at 30 June 2008)
Director, Mineral Resources Tasmania and State Chief Geologist — Dr A. (Tony) V. Brown Telephone: (03) 6233 8365; Email: [email protected]
Managing Geologist (Metallic Minerals and Geochemistry) — Dr Geoffrey R. Green Telephone: (03) 6233 8335; Email: [email protected]
Managing Geologist (Industrial Minerals and Land Management) — Ms Carol A. Bacon Telephone: (03) 6233 8326; Email: [email protected]
Manager, Information Systems and Geophysics — Dr Robert G. Richardson Telephone: (03) 6233 8324; Email: [email protected]
Manager, Royalty, Finance and Administration — Mr Matthew N. Fitzgerald Telephone: (03) 6233 8370; Email: [email protected]
Manager, Data Management — Mr Ken G. Bird Telephone: (03) 6233 8351; Email: [email protected]
Mineral Resources Tasmania Annual Review 2007/2008 5 Divisional overview, 2007/2008
As in previous years the mineral increasingly making investments at an Federal, State and Territory Geological extraction and processing sector earlier stage in projects, with some Surveys/Mines Departments, which continues to be Tasmania’s largest entering into exploration joint ventures gives Australian exploration potential, export industry. In 2007/2008 the with Australian companies. and its stable political and economic sector accounted for 53% of mercantile Face-to-face meetings with global framework, a credible and visible exports ($2.8 billion), up from 49.4% explorers are great opportunities to presence. The Australian pavilion at the previous year. explain the new government initiatives, PDAC is always admired and visited by Mineral Resources Tasmania, by give examples of new data acquired to both explorers and other government providing information on the date, explain how to access the agencies. prospectivity and high mineral resource information and demonstrate it on line, The Australian Mineral Exploration potential in Tasmania, encourages as well as discuss new discoveries and Investment Seminar, held in Tokyo, private sector exploration which we mineral projects and promote Japan on 26 February 2008, was anticipate will lead to new operations Tasmania as a positive place for mineral coordinated by the Australian coming on stream as the economic life exploration and project development Government’s Geoscience Australia of existing operations declines. By and to negate the negative perceptions. and Invest Australia, the Australian ensuring an adequate return from our Embassy, Tokyo, and the Japan Oil, Gas During the year MRT officers mineral resources, all Tasmanians can and Metals National Corporation. The attended Mining 2007 in Brisbane in share the benefits of our mineral seminar was undertaken by Team late October 2007; China Mining 2007 wealth. Australia en-route to the Prospectors in Beijing in November 2007; an and Developers Association of Canada The mining industry in Tasmania Australian Mineral Exploration international minerals conference in again benefited from continuing strong Investment Seminar in Tokyo during Toronto, Canada. metal prices during the year. At the February 2008; the World Mines time of writing the outlook for Ministers Forum and the Prospectors This year’s PDAC Conference and 2008/2009 is positive and there is an and Developers Association of Canada Trade Show attracted a record expectation that commodity prices will Convention (PDAC) in Toronto during attendance of 20,162 registrants from generally remain strong. Royalty March 2008, as well as meetings with over 100 countries and comprised revenue collected for the State by mineral companies in Australia, Canada 1001 booths. The Trade Show totalled MRT in 2007/2008 reached a record and Europe associated with the above 360 exhibits including those by $41.4 million. conferences. government agencies from 36 countries As mentioned in last year’s (27 in 2007), with additional exhibits The Tasmanian delegation from individual Canadian provinces and overview, ‘perception’ is a wonderful participated with delegates from all concept that allows all kinds of USA states. The Investors Exchange other Australian governments as Team featured in excess of 640 exhibitors. misconceptions to occur in the face of Australia. This is an important part of counter facts. During 2007/2008 a the promotional program endorsed by The Tasmanian booth, within the proactive campaign was undertaken by the Ministerial Council on Mineral and Australian Pavilion, was extremely busy MRT staff at national and international Petroleum Resources and coordinated (as were the booths of other symposia and conferences in an through the Chief Government jurisdictions). The main questions attempt to dispel the negative Geologists Committee. asked at the booth were about new perceptions and misconceptions about discoveries, access to land for undertaking mineral exploration and The objective of the combined exploration, new geoscientific mining in Tasmania. These negative Australian governments promoting information and how to access it, and perceptions continue to be recorded in mineral exploration investment in uranium policy and uranium potential. the Fraser Institute annual survey (as Australia is to encourage and enhance Time was also taken to visit other mentioned in last year’s overview) and mineral exploration and discovery, with company and government booths, by resource stocks. each jurisdiction focussing on their own formal and informal meetings, and State/Territory and Geoscience Even with further promotion and networking. Australia providing an Australia-wide disclaimers, the latest Fraser Institute The Tasmanian Government should overview. This will allow for the survey still records the perception of see signs of the benefit of this travel as discovery and development of companies that Tasmania has we gain more investment from Japan economic mineral deposits at world ‘uncertainty concerning native land and China, and more involvement by competitive costs, and will dispel claims’ despite the fact that it has been Canadian and North American perceptions that Australia is a mature stated in numerous forums on exploration and mining companies over exploration province and has numerous numerous occasions that it is highly the next four to five years. Face-to-face other negative reasons for companies unlikely that a native title claim could discussions, relationship building, and not to explore here. succeed in Tasmania. information exchange were key parts There is increasing importance and a The strategy also emphasises the of our promotional activities at these rising level of investment in Australian importance of tailoring geoscientific events. resource projects by major smelting and tenement information and data to and refining companies in major metal meet the needs of potential investors, The year in review consuming countries such as China, and of taking full advantage of the Allegiance Mining NL further Japan, Korea and, increasingly, India. internet in information dissemination. developed the Avebury nickel mine, These companies have historically The events in both Tokyo and with the first concentrate produced in restricted investment in Australia to Toronto were organised through Team July 2008 and the first shipment advanced-stage mining projects but are Australia, with representatives from all expected the following month. During Mineral Resources Tasmania Annual Review 2007/2008 6 the year, Allegiance was the subject of Cominex Pty Ltd and Sumitomo upsurge in mineral exploration in a successful takeover by Zinifex Australia Ltd have transferred the silica Tasmania. Limited (now OZ Minerals Ltd) which flour tenements in northwest Tasmania ! Provision of an appropriate level of was finalised on 18 July 2008. Recent to Tasmanian Advanced Minerals Pty resources for environmental drill intersections in the East Avebury Ltd. The new company has recently monitoring of exploration and area indicate that further growth in the received Level II permits to allow the mining tenements, and for inspection Avebury resource is likely. extraction of 50 000 cubic metres a of mines and quarries. Exploration to further extend year at the Corinna and new Blackwater mines. Tasmanian Advanced The major issues and initiatives for resources continued at the Zinifex 2008/2009 are to: Limited Rosebery mine, and feasibility Minerals Pty Ltd completed the ! studies into potential expansion of construction of a silica flour treatment Continue work on the TasExplore surface infrastructure and construction plant near Wynyard. geoscientific data initiative through of a new tailings dam commenced. The The Thylacine and Yolla gasfields are undertaking the second stage of the objective is to extend the life of the both in Tasmanian offshore waters. ground gravity survey in northeast mine beyond 2030 at current mining Thylacine commenced production in Tasmania and commencement of rates. September 2007, while Yolla began upgrading of the geological mapping production in October 2006. The gas and interpretation of northeast Bass Metals Ltd delivered the first from both these fields is piped to Tasmania and King Island. This will ore from the Que River mine to Victoria. Installation of the Thylacine enhance the information available in Rosebery in August 2007 and at year’s platform and development drilling, the three-dimensional model over end had established a profitable including a deviated exploration well, areas in northeast and northwest operation, with over 37 500 tonnes of began in late 2005. The deviated Tasmania. ore delivered during the year. exploration well was successful, ! Continue updating data for the Stemcor has sold 90% of Australian resulting in a development well and Tasmanian Information on Bulk Minerals to a consortium of subsequent production licence Geoscience and Exploration Chinese companies, headed by the application which was granted in Resources (TIGER) System. Shagang Group. The open-cut mine at November 2006. ! Savage River is being expanded with a Undertake a series of promotional The new Commonwealth Offshore activities to encourage mineral view to extending mine life by at least Petroleum Act 2006 will be proclaimed 25 years. exploration in Tasmania, including on 1 July 2008. This Act will replace the promotion of the King Island Scheelite Limited has the Petroleum (Submerged Lands) Act three-dimensional model of completed negotiations with the Hunan 1967. Tasmania finalised its geological structure and major Nonferrous Metals Corporation to amendments to the mirror legislation mineralising pathways of Tasmania. commence the redevelopment of the and four sets of Regulations on 16 June ! Grassy scheelite mine and at year’s end 2008. Produce land stability maps of urban was awaiting approval from the areas in Tasmania, in line with the Chinese Government, the final MRT initiatives guidelines developed following the Thredbo disaster. condition to be satisfied. The major initiatives and issues ! Metals X Limited commenced affecting MRT in 2007/2008 included: Continue rehabilitation of abandoned mining sites in Tasmania. mining tin ore at Mount Bischoff and ! Continuation of the four-year reopened the Renison Bell mine in July TasExplore geoscientific data and Achievements against 2008. For the first time, copper will be promotion initiative, with acquisition produced from the mine from the strategies identified for of aeromagnetic and radiometric 2007/2008 September 2008 quarter, as well as tin. data over northeast Tasmania and A feasibility study into recovering tin the Furneaux Group, and geological and copper from the Renison Bell New initiatives to stimulate data acquisition in central northern mineral exploration in Tasmania tailings dam continued to yield positive Tasmania to upgrade old geological results and work has progressed to interpretation, especially where According to Australian Bureau of detailed design stage. discrepancies with the 3-D Statistics (ABS) data, expenditure on mineral exploration for the 2007 Exploration programs continued at geological model were noted. All calendar year was $27.4 million, down the Mount Lyell and Henty mines. airborne geophysical datasets and associated interpretation reports 1% from the previous year. Tasmania’s Mining rates at the Beaconsfield gold have been released. The first stage share of Australian exploration mine have reached the levels achieved of the gravity survey in northeast expenditure was 1.47%, down from prior to the April 2006 rock fall. A Tasmania has been completed. New 1.9%. ABS data show that $9.8 million, program of accelerated exploration geological mapping in central or 35% of total expenditure, was spent was due to commence in the mine and northern Tasmania has been on the search for new deposits. in the Beaconsfield area, and completed, compiled and submitted During the year, an ABS out-posted exploration tenement packages were for map production. officer conducted a project to update secured in the Lefroy and Mathinna ! and provide much more rigour to areas. Enhancing the provision of MRT’s methodology for collecting Van Dieman Mines plc is developing geoscientific data through the mineral exploration statistics. Using the its alluvial tin, sapphire, gold and spinel Tasmanian Information on new methodology, MRT data indicate mine at the Scotia deposit near Geoscience and Exploration that the ABS still significantly Gladstone and expects to commence Resources (TIGER) System. under-reports Tasmanian exploration production in the December 2008 ! Undertaking a series of promotional expenditure, as the MRT figure for quarter. activities to further encourage the calendar year 2007 was $38.12 million Mineral Resources Tasmania Annual Review 2007/2008 7 of which $18.53 million or 48.6% of the body, and by OZ Minerals Ltd at the significant changes to ten tiles total was spent of exploration licences. Jupiter prospect south of Rosebery, (Stowport, Ulverstone, Riana, Kindred, and studies into the potential Latrobe, Loyetea, Castra, Railton, Promotion of mineral and development of a nickel laterite Sheffield and Liena) and changes to petroleum potential resource near Beaconsfield by Proto eight others (Loongana, Wilmot, Lea, ! The Tasmanian Government Resources and Investments Limited. Cethana, Gog, Deloraine, Pencil Pine and Montana) resulting from regional provided $240,000 in 2007/2008 to ! The boom in petroleum exploration geological interpretation. The work actively market mineral exploration and development offshore is a provided better correlation between opportunities in Tasmania. Activities welcome adjunct to the growth in units of the Mount Read Volcanics in undertaken included presentation of mineral exploration and investment the region with those in the a paper and holding a display at the onshore. Gas is produced from the mineralised belt of western Tasmania world’s leading exploration forum, Yolla gas field in Bass Strait and the and will provide a firmer basis for the Annual Meeting of the Thylacine gas field in the Otway mineral exploration. Two other Prospectors and Developers Basin west of King Island and is 1:25 000 scale map tiles (Gordonvale Association of Canada (PDAC) in processed onshore in Victoria. Toronto and visiting leading and Tiger) were prepared for digital international mining companies in ! One new offshore petroleum capture during the year. Tokyo, Vancouver, Toronto, and exploration permit was granted, Field work for the TasExplore project London, both as part of the bringing the total number of permits commenced in northeast Tasmania. A integrated Australian Federal/ in Commonwealth waters to team of six geologists was assigned to State/NT government promotional nineteen. Nine seismic surveys were map in the region, with another team and as a separate Tasmanian completed during the year. Offshore geologist commencing work on the group. exploration expenditure amounted first detailed government mapping on to $76 million. ! Several meetings were also held with King Island. Field work on this project companies on a one-on-one basis. In ! Aeromagnetic data were collected will continue in 2008/2009. addition to the PDAC meeting, over the offshore Bass and Otway Data capture/output was completed displays were presented at the basins as a joint project with for seven of the TasExplore initiative Mining 2007 meeting in Brisbane in Geoscience Australia. map tiles in central northern Tasmania October. (Castra, Deloraine, Kindred, Latrobe, Collection, integration, ! Presentations were made at the Montana, Sheffield and Stowport) with interpretation, publication and capture/output commencing on a Mining 2007 meeting, to a group presentation of data from Fujian province in November, further nine map tiles (Lea, Liena, As in previous years verification, to a visiting private sector group Loongana, Loyetea, Pencil Pine, Railton, upgrading and loading of information from China in January, to the Riana, Ulverstone and Wilmot). into the TIGER System continued. The Tasmanian Minerals Council Data capture/output was completed TIGER System has a single geoscience Exploration Group Meeting at for twelve 1:25 000 scale map tiles in data model with user interfaces for Launceston in May, and to the other parts of Tasmania (Blackmans geohazards, geophysics, drilling, mineral Canadian Consul General in June. Bay, Blessington, Collinsvale, Elliott, deposits, samples and geochemistry. McPartlan, Mulcahy, Nunamara, ! Regular two-monthly updates on Once loaded, the information is made Patersonia, Roys, Solitary, Strathgordon exploration progress in Tasmania available to clients using the MRT and Wings). were provided to the international website. Other information available Society of Economic Geologists includes mineral tenements and New aeromagnetic and radiometric newsletter as part of a global review documents held by MRT, and general data for northeast Tasmania were of mineral exploration. information for MRT and DIER clients. released in December and three ! interpretive reports were released in Promotional missions and functions The volume of downloads from the February. The geophysical data are were conducted in Perth, Sydney, MRT website totalled of 2538 gigabytes providing a firm basis for the geological Brisbane, Melbourne and Adelaide. compared to a total of 4426 gigabytes mapping team. During these visits, there was in the previous year and reflects, to a continued strong positive feedback large part, more mature search engine A report on the petrology of rocks on the mineral potential, indexing of the site. The peak of 391 from the Savage River iron deposit was infrastructure and business climate gigabytes was downloaded in July 2007. completed during the year and in Tasmania, as well as the Development and maintenance of the provides a new understanding of the geoscientific programs conducted by TIGER System was successfully carried origin of the deposit. The project will MRT. These promotions have been out using a combination of contractors conclude with an examination of the successful and continue to play a and MRT staff. In addition to data being geochemistry of the deposit. This work direct part in attracting new accessed from the MRT website, 185 will have important implications for exploration companies to Tasmania. data packages were distributed on CD future exploration of the Arthur Lineament of northwest Tasmania. ! The buoyancy of the exploration to clients. sector is demonstrated through such The collection and presentation of A revised edition of the Catalogue of advances as the announcement of an information on Tasmania’s mineral Minerals of Tasmania, the first in some iron ore resource at Mount Lindsay wealth and geoscientific nature forty years, was completed during the north of Renison Bell by Venture continues. The major task was year and submitted for publication in Minerals Limited, new zinc-lead completion of compilation of new 2008/2009. exploration projects by Bass Metals mapping in central northern Tasmania A project verifying data on Ltd at the Fossey zone at the carried out as part of the TasExplore Tasmania’s mineral deposits and southern end of the Hellyer ore initiative. The field work resulted in locations was suspended when 98.5% Mineral Resources Tasmania Annual Review 2007/2008 8 complete due to termination of a the exception of the Taroona landslide chart the process of approval of temporary employee after the (Hobart) and the Lawrence Vale individual work programs. All work maximum permissible period of service. landslide (Launceston) networks. MRT programs, whether on Crown land, The work will be completed in was awarded funds through the NDMP State Forest or private property, are 2008/2009. to install a near real-time monitoring entered into this system to give a Land instability is a significant hazard facility for the Taroona landslide in complete record of all the in Tasmania, with many homes having Hobart. This will enable a better environmental information relating to been destroyed over the years and understanding of landslide performance exploration. significant damage caused to with regard to rainfall and groundwater Development of the upgraded infrastructure. By studying and that in turn will be of benefit to system has been completed. This understanding the landslide hazard it is stakeholders by allowing improved risk system provides an integrated textual often possible to minimise or avoid the management options. The facility, and spatial environment to ensure that effects of land instability. MRT is designed and serviced by the University independent compliance auditing of the actively addressing this hazard in three of Wollongong, is nearing completion. exploration work approval system is main areas; hazard mapping, databases MRT is coordinating a project in the adhered to and that derived statistics and monitoring. Hobart area, funded through the reflect the requirements of the RFA and the recommendations of the A regional landslide hazard NDMP, to determine whether Resource Planning and Development assessment of the North West Coast palaeotsunamis have affected the area Commission. area is underway, with maps of the during the last 10 000 years. The information is important if the risk of Launceston, Hobart and Glenorchy Mining Leases areas having been completed in tsunami is to be estimated. Most of the previous years. Funding assistance from work is being contracted externally and The Mineral Resources Development the Australian and Tasmanian involves collaboration with Geoscience Act 1995 provides for the State to governments through the Natural Australia and use of their inundation grant titles for the extraction of Disaster Mitigation Programme modelling facility. A report on minerals from mines and quarries. (NDMP) has supported this project. investigations for palaeotsunami has Titles are issued for larger scale The resultant landslide maps are been completed and research into operations with appropriate assisting councils to make informed historical records on Tasmanian rehabilitation bonds and conditions. decisions on planning and development reports advanced. Project funds have Shorter terms are preferred for issues, especially given the pressure to contributed to the acquisition of small-scale remote operations to develop marginal lands around our airborne laser scanning data in order to provide for regular environmental cities. The information has also been improve the quality of the forthcoming review. supplied to other stakeholders, inundation modelling. At the end of 2007/2008 there were including the geotechnical community Setting and monitoring of 621 mining leases in force. A total of 46 and the State Emergency Services’ standards for exploration new leases and 76 lease renewals were Emergency GIS project. activities applied for during 2007/2008. This took the overall total of applications and A debris flow validation project and MRT is responsible for ensuring that risk assessment, involving nationally renewals currently being processed to all exploration activity in Tasmania 235. recognised landslide experts and achieves the highest environmental funded by the NDMP, has been standards and complies with the Mining development continued completed for the Wellington Range Mineral Resources Development Act 1995 during the year, requiring assessment area. This project largely confirmed the and the requirements of other and approval of several operations. The mapping approach by MRT and has legislation which protects, for example, largest scale development was at offered suggestions for further work. threatened species and cultural Savage River, where Australian Bulk Minerals, in agreement with its new The TIGER landslide database forms heritage. owner Shagang Group, commenced a critical data foundation for the The Mineral Exploration Code of development of North Pit. This landslide project. MRT, in collaboration Practice outlines the current required replacement of the mining with Geoscience Australia, has built an requirements, the approvals process, fleet, new workshops, and repairs to internet facility linking various landslide and the controls and monitoring the Savage River crossings which were databases throughout the country. procedures that MRT has in place. The severely damaged by flash flooding. There are currently over 2000 records Code is currently under review to in the database, a number of which ensure that consistency is maintained At Hellyer, the Polymetals Pty were added from Forest Practices with the Tasmanian Reserve Ltd–Intec Ltd joint venture gained Authority records during the year. Management Code of Practice. approval for zinc leaching from tailings retreatment and electric-arc furnace MRT continues to liaise on an During the year 96 exploration dust, with the import of dust informal basis with stakeholders in work programs were submitted to commencing. Open-cut redevelopment regard to land stability issues. It has MRT, compared to 86 in the previous of the former Que River mine by Bass collaborated with Geoscience Australia year. Of these programs 74 were Metals Ltd commenced and regular in the writing of a chapter on landslides approved, 20 of which were in reserves shipments of ore were made to as part of a national review document derived from the Regional Forest Rosebery for treatment. Metals X on natural hazards in Australia. Agreement (RFA) and required Limited commenced mining at Mount Historically, MRT has monitored a assessment by the Mineral Exploration Bischoff following permit approval, with number of active landslides in Tasmania Working Group. the tin ore being transported to that have affected roads, railways and To comply with the RFA, MRT has Renison Bell for treatment. Operations subdivisions. Most of these monitoring developed a system to spatially record at the Beaconsfield gold mine were networks have been abandoned with exploration activity and attributes that suspended following a rock fall in April Mineral Resources Tasmania Annual Review 2007/2008 9
2006. Approval to recommence mining supply the southern construction prices. These higher prices are was granted in stages until full industry. expected to continue through production was achieved. Mining to Alleged illegal mining was 2008/2009. recover alluvial tin commenced at investigated at Sandford, Wivenhoe, Scotia near Gladstone, while and at Circular Head. Rehabilitation of Mining Lands development of a new mine on the Trust Fund Fenton Seam at Mount Nicholas by the Royalty assessment The major focus of activity during Cornwall Coal Company is underway. MRT is responsible for the 2007/2008 was shaft safety, with Town planning can be an important collection of mineral royalties from twenty-one mine shafts at Pipers River constraint on the development of Crown land tenements. Royalty is not a and Lefroy being either capped or extractive operations. Submissions, tax but a payment to the community fenced to provide for public safety. representations and appeals have been for the purchase of their Minor safety programs were also non-renewable resources. made to the West Tamar, Central carried out at Warrentinna, Waratah, Gladstone and Royal George. Coast, Clarence and Meander Valley Mineral royalties totalling $41.4 Revegetation programs were carried councils concerning planning schemes million were collected for the out at Storys Creek and the Argonaut or development applications. A long 2007/2008 financial year which was a mine at St Helens. Weed control was running appeal over the Tolosa Street further significant increase over the $33.8 million collected in the continued at Queensberry, Punchs quarry in Glenorchy was attended. The Terror at Dunorlan, and The Badgers most important representation was to 2006/2007 financial year. Mineral royalty collections have increased at Sheffield. Other minor works the Northern Midlands Council nearly ten-fold since 2002/2003. The included drainage improvements at concerning a proposed residential increase in royalty revenues is the Storys Creek and the Oonah mine at development adjacent to three quarries result of the sustained commodity Zeehan, and water quality monitoring at Western Junction. price boom and the resulting high at Luina and Royal George. A total of Following the successful application profitability of most of the major mines $170,050 was spent on trust fund by MRT for rezoning under the in Tasmania. projects during 2007/2008. Clarence Planning Scheme during The reasons for the commodity 2006/2007, Sanbar Pty Ltd obtained price increases are well documented, Dr A V (Tony) Brown permit approval at Seven Mile Beach with high commodity demand from Director, Mineral Resources and commenced sand extraction to China and India resulting in strong Tasmania and State Chief Geologist
Mineral Resources Tasmania Annual Review 2007/2008 10 Financial Performance
The 2007/2008 consolidated fund Output $’000 appropriation to Mineral Resources Tasmania was $6.84 million. This 1. Minerals exploration and land management 4,196 funding consisted of: 2. Tenement management of the exploration and minerals industry 3,080 ! $3.97 million for salaries for 53.8 Total 7,276 full-time-equivalent staff, plus two ! the audit and monitoring of fee, temporary staff; Descriptions of Outputs and ! Outcomes, 2007/2008 rental and royalty collection. $1.77 million for operating The outcome is effective and expenditure, including rent; 1. Minerals exploration and land efficient tenement management of the ! $0.16 million for the Restoration of management exploration and minerals industry. Degraded Mineral Lands; This output covers: ! $0.24 million for the promotion of ! the provision of geoscientific data Revenue from fees Tasmanian mineral opportunities; and resource information on and charges and Tasmania’s metallic, industrial and Mineral Resources Tasmania collects royalties and rents and fees from ! $0.70 million for the second year of hydrocarbon mineral endowment; mineral lands. These revenues are the project for updating TIGER and ! the promotion of mineral potential the 3D model, which includes for the stimulation of exploration forwarded directly to consolidated funding for three temporary staff. for metallic and industrial minerals revenue and are not available to MRT, and hydrocarbons; and except for offshore petroleum In 2006/2007 MRT was funded $5.06 revenues which are utilised to ! geoscientific database development, million over four years under Election administer the Petroleum (Submerged maintenance, output and marketing, Commitment funds to undertake a Lands) Act 1967. significant promotional program and including the production of digital Mineral royalties totalling $41.4 for the acquisition of new data for geoscientific maps and associated million were collected during the updating TIGER and the 3D geological databases. model. The outcome achieved is dynamic 2007/2008 financial year, a significant minerals exploration and land increase from the $33.8 million There were no significant variances collected in 2006/2007 and continuing in funding between 2006/2007 and management for Tasmania and offshore waters. the upward trend of previous years 2007/2008 with the exception of the ($24.0 million in 2005/2006). Election Commitment funding which 2. Tenement management Commodity prices in general rose to decreased as planned in 2007/2008 of the exploration and minerals record levels throughout 2007/2008. with the completion of the data industry The increase was the result of the acquisition flying program in the continued strong demand for previous year. This output provides for: commodities from China and India. The Commonwealth Natural Disaster ! the provision of geoscientific Tasmanian royalty regime is structured Mitigation Programme funds were information essential for the so that companies pay a greater royalty received to continue the Tasmanian effective and sustainable in profitable times. Landslide Mapping Program ($102,240). management of land and mineral The operations of individual mines resources; Funds were also carried forward from are detailed later in this review. 2006/2007 for the landslide project ! the provision of advice to all levels Mineral Resources Tasmania also ($28,436), for a project to investigation of government and the public on collects rents and fees from mineral the occurrence of palaeotsunamis in land management issues; lands, which are forwarded directly to the Hobart area ($50,361), and for ! the administration of mining real-time monitoring of the Taroona consolidated revenue. Rents and fees legislation, including the issue of legal from mineral lands raised $1.429 landslide ($59,646). titles for mineral tenements; ! million in 2007/2008, which was well Outputs — Application of the collation and recording of above budget expectation and reflects statistics relating to mining the increased mining activity in funds, 2007/2008 production and exploration; and Tasmania. Tasmanian government agencies are funded on an outputs basis. The outputs represent the goods and services delivered by MRT, and the Target Actual Target cost of delivering those services. The 07/08 07/08 08/09 government purchases these goods and Royalties ($,000) 33,100 41,421 43,200 services to meet policy objectives. The Rents and Fees ($,000) 1,124 1,429 1,106 total output figure does not equal the Rents and Fees — Petroleum consolidated fund appropriation (net of administration) ($,000) 67 191 60 available to the division due to Sales of Maps and Publications ($,000) 46 47 41 overheads associated with head office and carry forward funds that are loaded into outputs. MRT has two outputs: Mineral Resources Tasmania Annual Review 2007/2008 11
Royalty assessment percentage payable on net sales, and a near pure specific metal can apply to formula-based percentage of profits. the Treasurer to receive a 20% rebate MRT is responsible for the This system only requires mining on royalties payable. Companies that collection of mineral royalties from companies to pay a lesser fixed produce gold doré can apply to claim a Crown Land tenements. Royalty is not minimum royalty in times of no 10% rebate on royalties. a tax but a payment to the community profitability, but ramps up to a for the purchase of non-renewable The Treasurer has the discretion to maximum of 5% of net sales as profits resources from the State. increase the gold doré rebate to 20% increase. depending on criteria such as the The Tasmanian royalty regime The ad valorem rate for net sales is magnitude of investment undertaken operates under two systems depending 1.6%. The profit component of the and the benefit to the Tasmanian on the type of resource recovered. royalty regime is calculated via an economy from the investments. Companies producing a metallic exponential formula which increases mineral or coal pay under a two-tiered MRT conducts a royalty audit the percentage of profit royalty paid as regime where royalty is paid on the net program to ensure tenement holders the mine’s profit increases. sales and on the profit of a mine. are paying in accordance with the Royalty on the recovery of A royalty cap of 5% of net sales has legislation. The audit program mainly non-metallic minerals on Crown leases been set so that high-cost, short-life concentrates on the metallic mines is set on a per tonne basis. mines are not discriminated against. which contribute the vast majority of royalty revenue. The two-tiered metallic and coal Mining companies that expand into royalty consists of an ad valorem downstream processing to produce a
Mineral Resources Tasmania — Legislation and Committees
Legislation administered ! Mineral Resources Development Act 1995 ! Mineral Resources Development Amendment Act 2006 ! Mining (Strategic Prospectivity Zones) Act 1993 ! Petroleum (Submerged Lands) Act 1982 ! Beauty Point Landslip Act 1970 ! Lawrence Vale Landslip Act 1961 ! Rosetta Landslip Act 1992
Statutory bodies with MRT representation ! Nomenclature Board
Non-statutory bodies with MRT representation ! Ministerial Council for Mineral and Petroleum Resources (MCMPR) and associated Standing Committee of Officials, Task Forces and Working Groups ! ABS Mining Statistics User Advisory Group ! Australian Society of Exploration Geophysicists Data Standards Committee ! Chief Government Geologists Committee ! Government Geoscience Information Committee and associated Working Groups ! CODES Centre of Excellence in Ore Deposits Advisory Board ! CODES Centre of Excellence in Ore Deposits Science Planning Committee ! Crown Land Services Technical Advisory Group ! Crown Land Assessment Working Group ! Inter-Departmental Oceans Policy Working Group ! Land Information Coordination Committee (LICC) ! LICC Sub-committee — The LIST Management Advisory Group ! Mineral Exploration Working Group ! Mining Heritage Committee ! National Virtual Core Library Project Committee ! Rehabilitation of Mining Lands Trust Fund Committee ! Tasmanian Statistical Advisory Committee
Mineral Resources Tasmania Annual Review 2007/2008 12
Mineral Resources Tasmania Annual Review 2007/2008 13 Mineral Resources Tasmania — Review of Branch activities, 2007/2008
During 2007/2008 Mineral Resources Tasmania consisted of five branches: Metallic Minerals and Geochemistry; Industrial Minerals and Land Management; Information Systems and Geophysics; Data Management; and Royalty, Finance and Administration. Because of the integrated nature of the branches, outputs provided under the banner of the Tasmanian Geological Survey are contributed to by staff of all branches.
Metallic Minerals and Geochemistry
During 2007/2008, the Metallic at Savage River and throughout that Core Library Project, will be installed Minerals and Geochemistry Branch part of northwest Tasmania. permanently in late 2008/2009 and will continued work on the Following the receipt and significantly add to the potential of the government-funded initiative TIGER preliminary interpretation of new core library to provide information to Geoscience (TasExplore) Project, but geophysical data, a team of geologists drive new mineral exploration projects. also continued to develop databases for commenced work to update the delivery on the world-wide web and to geology of northeast Tasmania. One Database development verify and update existing databases. geologist commenced work on King A significant part of the work of the The continued increase in mineral Island and at the end of the year field branch for the year continued to be exploration activity in Tasmania has work for the Grassy 1:25 000 scale testing of database structures for the further expanded work loads in map sheet had been completed. TIGER System and verification and processing exploration tenement The project to systematically verify capture of data for incorporation in the applications and reviews, extracting and the more than 4000 entries in the system. maintaining metadata from reports, and Tasmanian mineral deposits database Changes to the samples, attending to a greater number of continued, with one person occupied geochemistry and mineral deposits enquiries. This is affecting the capacity on this work. At year’s end 98.5% of databases were made and at year’s end of the branch to adequately deal with entries had been verified and 273 new these were being moved to the these demands as well as achieve the deposits had been added to the production environment. time frames required by the TasExplore database. The project has been project, and increased resourcing must suspended following the completion of Branch members contributed to the be considered. the maximum allowable period of development of a national data model employment for a temporary staff for mineral deposits and occurrences. Geoscientific data generation member. Core library Geological maps in central northern Two map tiles (Gordonvale and Tasmania have been upgraded as part Tiger) were prepared for digital The increasing level of usage of the of the TasExplore project. Field work capture during the year, completing the core library continued, with 169 drill and regional geological interpretation task of the Branch in preparing old core inspection days occurring during resulted in significant changes to ten maps for digital capture at 1:25 000 the year, a 96% increase on the tiles (Stowport, Ulverstone, Riana, scale. previous year. Kindred, Latrobe, Loyetea, Castra, A total of 9.8 kilometres of core was Railton, Sheffield and Liena) and A revised edition of the Catalogue of added to the library collection during changes to eight others (Loongana, Minerals of Tasmania, the first in some the year. Wilmot, Lea, Cethana, Gog, Deloraine, forty years, was completed during the Pencil Pine and Montana). A key year and submitted for publication in During the year a team from the outcome has been the more confident early 2008/2009. Centre of Excellence in Ore Deposits correlation of Cambrian volcanic units Stream sediment samples from (CODES) at the University of Tasmania in central northern Tasmania with the nineteen sites throughout Tasmania commenced using the core library as highly mineralised Mount Read were collected as part of the National the site to determine detailed physical Volcanics of western Tasmania. This Geochemical Survey in conjunction properties of rocks from drill core, as work should result in more effective with Geoscience Australia. These will part of a major project aimed at mineral exploration in the region. be subjected to precise analyses and improving metallurgical recovery from A report on this work was submitted will form part of a benchmark data set. ores. for publication. A trial of a hyperspectral infra-red A safety audit was conducted at the Work continued on a project to core logging device was successfully core library and issues requiring understand the nature of the Savage completed, with twelve holes from the attention were identified. At year end River iron ore deposit, as part of a Mount Read Volcanics, Grieves Siding, all electrical equipment at the core broader review of the mineral the Mathinna Group of northeast library, rock preparation and lapidary endowment and potential of the Arthur Tasmania and the Cygnet area being laboratories had been tested for Lineament. A report was completed on scanned. A similar instrument, funded electrical safety, passed and tagged. the petrology of the rocks in the mine by the Commonwealth under the Noise levels were tested and existing area, which will result in an improved National Critical Research hearing protection was found to be understanding of mineralising processes Infrastructure (NCRIS) Auscope Virtual adequate. Mineral Resources Tasmania Annual Review 2007/2008 14
Mineral exploration and newsletter as part of a global review of The petrologist, as radiation safety other promotional activities mineral exploration. officer, has overseen radiation licence The petrologist conducted displays renewals, certification for storage, The Tasmanian Government X-ray equipment safety inspections and provided $240,000 in 2007/2008 to and publication sales at the Zeehan Mineral Fair held in November and other safety issues. Laboratory safety actively market mineral exploration audits are underway. Assistance was opportunities in Tasmania. Activities presented a talk to 70 students at the Howrah Primary School. given with safety audits and a safety undertaken included holding a display forum was attended. The mineralogist/ at the world’s leading exploration petrologist assists with supervising the forum, the Annual Meeting of the Petrology storage of radioactive, asbestos-bearing Prospectors and Developers The petrologist supervises the and other dangerous substances. Association of Canada (PDAC) in petrological and lapidary laboratories, Procedures and standards in place for Toronto and visiting leading which provide services for internal and their handling were upgraded during international mining companies in external clients. the year. Tokyo, Toronto, London and Vancouver, both as part of an The laboratories provided a total of Curatorial work has included the Australian team and as a separate $48,020 worth of analyses and services cataloguing, sorting, compiling and Tasmanian group. The latter also to both DIER ($30,520) and external storage of rocks and thin sections, visited companies in London and clients ($17,500). Most of this external preparation and moving of displays, Europe. A presentation was made at work cannot be otherwise conducted locating samples for internal and an Australian Mineral Exploration within Tasmania. external users, and general supervision Investment seminar in Tokyo. of the rock store. The old rock The lapidary laboratories prepared collection and storage databases Several meetings were also held with 538 standard thin sections and 205 continue to be updated and are being companies on a one-on-one basis with other sections, making a total digitised and migrated into the TIGER DIER personnel. In addition to the throughput of 743 samples. The System. A total of 2990 new samples PDAC meeting, a display was geological technician did most of these were added, and 2630 existing sample presented at the Mining 2007 meeting on an as-needed basis, interspersed details were updated in the database. in Brisbane in November and at the with field assistant duties; this work The oldest samples are gradually being Association of Mining and Exploration was valued at $22,675. boxed and palletised to make space for Companies National Mining Congress The technical officer for petrological new samples. New systems to in Perth in June. services processed 312 samples by streamline sample submission and to Presentations were made at the X-ray diffraction, including 115 implement safer storage are being Mining 2007 meeting and to the quantitative dust analyses. He also developed. Tasmanian Minerals Council conducted 47 soil and 17 sizing tests The petrologist also handled about Exploration Group Meeting in and 63 optical asbestos identifications, 92 public and commercial enquiries on Launceston in May. for a total of 439 samples processed, mineral, mining, gem, soil and valued at $25,345. Additional presentations were made rock-related matters, particularly in to a delegation from Fujian province, a A total of 280 external (contract) regard to gem, rock and mineral private Chinese company, and the samples were received for locations and identification, Canadian Consul-General during visits investigation, mostly by X-ray occupational health issues, and mine to the Department of Economic diffraction analysis. These samples locations. He also provided occasional Development. included 192 for occupational health mineralogical and curatorial advice and clients, nine soils, three forensic assistance to the Tasmanian Museum Promotional missions and functions samples, twelve construction materials, and Art Gallery and Queen Victoria were conducted in Perth, Sydney, 25 industrial samples and 27 general Museum and Art Gallery, and has been Brisbane, Melbourne and Adelaide by rocks and other samples. This work appointed an honorary research officials from DIER. During these visits, came from a wide range of external associate of both. information on the new, four-year, sources, including the Transport $5.06 million TasExplore geoscience and Division of DIER, Workplace Standards Geochemical laboratory promotion initiative was well received Tasmania, Tasmania Police, by industry. The laboratory was staffed for most Environment Division, Consumer of 2007/2008 by an acting Senior These promotions have been Affairs Division and other state and Geochemist and three technical successful and continue to play a direct federal government departments; the officers (two full time and one part part in attracting new exploration University of Tasmania (staff and time). One of the technical officers, companies to Tasmania and in students); various mining, mineral initially appointed as a fixed-term maintaining interest in the State in the processing and mineral exploration full-time employee in July 2007, was face of strong competition from other companies; environmental and subsequently employed as a permanent jurisdictions. occupational health consultants; the staff member in March 2008. The acting Articles, promotional material and general public and miscellaneous Senior Geochemist was appointed to information on mineral prospectivity businesses. the position of Senior Geochemist in and exploration activities in Tasmania Samples examined included February 2008. The Senior Geochemist were prepared for various specialist geological materials (construction was also involved in geological projects, mining journals. Regular two-monthly materials, mineral concentrates, ore TIGER databases, safety issues and summaries of exploration activities in samples, rocks, soils, sands and clays) tenement administration. Tasmania were provided as part of and anthropogenic materials (including The geochemical laboratory global reviews for the international concrete, asbestos sheeting, industrial generates the geochemical data Society of Economic Geologists materials and dusts). necessary to maintain MRT’s databases Mineral Resources Tasmania Annual Review 2007/2008 15 and geological mapping. Laboratory considerably increased the ! Another branch member is on a activities during the 2007/2008 financial productivity of XRF rock analyses. committee to provide a national year included: ! Analytical and rock crushing model for mineral deposits data. ! Addressing OH&S issues has equipment was calibrated and ! A branch member is on the resulted in considerable maintained. The XRF unit was in a Operations Committee for the improvements in the laboratories, generally stable condition, but National Virtual Core Library including disposal of all redundant because of its age continued to Project. chemicals, consolidation of chemical suffer from intermittent problems ! Site visits were made to various stores into one store, segregation of that were time consuming and costly exploration project sites and mines incompatible substances and to locate and rectify. during the year as part of reviewing preparation of all necessary OH&S ! The Leco Induction Furnace industry progress. documentation. Many other steps continues to produce reliable CO were also taken to provide a much 2 ! Mineral exploration report and values (necessary for a complete safer working environment. The exploration performance rock analysis), although requiring laboratories were inspected by the assessments were carried out as extensive experimental work to DIER’s Safety Consultant and were needed, as was preparation of locate and rectify faults. The Leco is considered to be Australian OH&S promotional leaflets for Exploration over 25 years old and may need to compliant. MRT was praised for its Release Areas. Particular attention be replaced in the near future as it is safety protocols in the laboratories. was placed on monitoring becoming increasingly difficult to performance on exploration ! Annual medical examinations of source replacement parts. licences. technical officers were undertaken, ! including general health, hearing and Other activities Many requests for information on blood tests. geology, mineral resources, minerals ! Field staff updated first aid ! A total of 429 rock samples were and related matters were received qualifications in August. registered for major and trace and dealt with promptly. elements, with 14,610 individual ! Four staff members are on safety ! Science planning meetings of the determinations being performed committees. Centre of Excellence in Ore (XRF results, FeO, CO2 , gold and ! A branch member is on a committee Deposits (CODES) at the University silver determinations), equivalent to to prepare authority tables for the of Tasmania were attended. the analysis of 350 rock samples National Geodata Model, a working ! Three geologists attended parts of with a value of around $112,000. group established under the the CODES course on brownfields ! A new fluxer unit (for making fused Government Geologists Information exploration in June and a paper was discs) was purchased. This has Policy Advisory Committee. presented.
Mineral Resources Tasmania Annual Review 2007/2008 16
Industrial Minerals and Land Management
This branch is responsible for the minerals within the Mount Read SPZ commenced in the third quarter of investigation and promotion of increasing from 48.9% to 54.5% 2006, and from the Thylacine field, industrial minerals, including coal, occupancy, the Balfour SPZ increasing where production commenced in hydrocarbons and geothermal from 32.1% to 44.2%, the Cape Sorell September 2007. resources; the management of mineral SPZ increasing from 50.2% to 59.6%, The production licence over the tenements, land access issues and and the Zeehan/Waratah SPZ Yolla gas-condensate field in the Bass environmental control of exploration increasing from 63.2% to 68.5%. Basin is held by a consortium headed activity; and the protection of mining by Origin Energy Resources Limited heritage. It is also responsible for HYDROCARBONS and AWE Petroleum Limited. The providing information for the Petroleum Exploration BassGas project to develop the Yolla management of geohazards, especially field involved construction of a land stability. and Production production platform, two development Nineteen offshore permits and two wells and an undersea pipeline to an Strategic Prospectivity Zones onshore permits are currently held for onshore processing plant near Lang oil and gas exploration. Three Strategic Prospectivity Zones (SPZ) Lang in Victoria. The infrastructure was production licences are held over the cover 25 200 km2 or 37% of Tasmania. substantially completed by late 2004, Yolla and Thylacine fields, and a The areas in each SPZ occupied by but production of gas was delayed by retention lease is held over a small technical and safety issues. mineral tenements at the end of June acreage adjacent to the Yolla field. Commissioning was completed in late 2008 are shown below. Hydrocarbons are produced in 2006, with this project expected to The resources boom is reflected in Tasmanian offshore waters from the supply around 10 per cent of Victoria’s the tenement holdings for metallic Yolla field, where production natural gas needs for fifteen years. Woodside Energy Limited, on behalf Metallic Non-metallic of the Otway Gas consortium, was SPZ Area Occupied Area Occupied granted a production licence in July (km2) (%) (km2) (%) 2004 for the development of the Thylacine gas field, discovered in 2001 Adamsfield 70.3 95.5 0 0 in the Otway Basin, northwest of King Arthur 873.6 78.9 304.3 27.4 Island. The Thylacine platform and Balfour 1726.3 44.2 242.4 6.2 undersea pipeline were installed in late Beaconsfield 21.5 100.0 0 0 2005, and drilling from the platform Cape Sorell 824.2 59.6 626.7 45.3 began with Thylacine South-1, a deviated exploration well that Mount Read 3951.0 54.5 682.9 9.5 successfully proved a southern North East 3626.6 37.3 1 042.9 10.7 extension to the Thylacine field. An Zeehan/Waratah 1254.6 68.5 169.9 9.3 additional production licence, adjoining (12 348.1) (3069.1) the existing production licence, was subsequently granted to allow production from the southern extension. The sequential drilling of four development wells then commenced, with the program being completed in October 2006. Thylacine ARTHUR gas is piped to a processing plant near Port Campbell in Victoria to supply the BEACONSFIELD growing southeast Australian gas market. Nine seismic surveys, which NORTH encompassed eleven permits, were EAST completed during the year. These BALFOUR comprised five 3D surveys and four 2D surveys. Historically there have only been 104 seismic surveys in the last forty years within Tasmanian ZEEHAN ADAMSFIELD administered waters, and the current WARATAH surveys represent almost 10% of the past total. A Controlled Source Electro CAPE SORELL Magnetic (CSEM) marine survey was completed by Santos in permit T32/P during August 2007. This was the first use of this new technology in Tasmanian administered waters. Santos Mineral Resources Tasmania Annual Review 2007/2008 17
TASMANIAN OFFSHORE ACREAGE AND ONSHORE PETROLEUM EXPLORATION LICENCES
144°E 146°E
Lang Lang Port Campbell
Permit area Tasmania Adjacent Area Boundary Thylacine T/RL1 T/46P T/30P T/40P T/45P T/47P T/34P Yolla T/44P T/41P 40°S 40°S T/35P T/37P T/38P T/18P T/39P T/43P T/42P T/32P T48/P
T/33P
TASMANIA T/36P 42°S 42°S
Gas pipeline
Wells drilled in Tasmanian waters
Current Petroleum Exploration Permits
Onshore Petroleum Exploration Licences Mineral Resources Tasmania Department of Infrastructure, Energy and Resources
142°E 144°E 146°E 148°E July 2008 also drilled a wildcat exploration well in Lands ) Act 1967. This act will be Cataloguing of sample collections T33/P during May/June 2008. This was replaced by the Offshore Petroleum Act related to offshore petroleum only the fourth well to be drilled in the 2006 from 1 July 2008. Tasmania exploration continued during the year, under-explored Sorell Basin off finalised amendments to the Petroleum with fifty reports being received during western Tasmania and the first since (Submerged Lands ) Act 1982 and four the year and indexed. Open-file 1982. The well was dry with no sets of regulations on 16 June 2008, to exploration reports can be viewed and evidence of hydrocarbons present. mirror the Commonwealth legislation. downloaded from the MRT website. Geotechnical coring survey work An amendment to the Petroleum Onshore, two Special Exploration has been undertaken in T38/P and (Submerged Lands) (Data Management) Licences are held for petroleum T/39P in preparation for wells to be Regulations 2004 removed the exploration, one by Great South Land drilled during 2008/2009. It is requirement for offshore exploration Minerals Limited and the other by anticipated that another exploration companies to submit quarterly reports Primeline Petroleum Corporation. well will be drilled in T/34P during this on their activities. Companies are still Seismic surveying was carried out by period. required to submit annual reports. Great South Land Minerals Ltd in early Offshore oil and gas exploration in Total Tasmanian offshore petroleum 2007. OME Resources Australia Pty Ltd Commonwealth waters is currently exploration expenditure for 2007/2008 holds a Special Exploration Licence for controlled by the Petroleum (Submerged was approximately $76.67 million. coal bed methane. Mineral Resources Tasmania Annual Review 2007/2008 18
OFFSHORE PETROLEUM EXPLORATION EXPENDITURE Of those received, 74 were approved (thirteen were withdrawn, eleven have T S 90 3000 O R T E since been approved and four are still A T 80 L A
2500 pending). Eighteen work programs A W
70 U
N were within CAR Reserves and S A T I
2000 R required comment from the Mineral
N 60 ( $ A A )
Tasmania L n m
M Exploration Working Group. Members I o A
i 50 S i l l l l N i A 1500 i
o of the Mineral Exploration Working T
m
Australia n
E
40 ) N X $ Group attended a number of on-site I ( P
E E 30 1000 field inspections during the reporting N R D U period. T I I 20 T U D 500 R N Table 1 summarises the types of E E 10 P activities approved, within a broad X
E 0 0 2 2 4 4 0 0 6 6 8 8 division of Tasmania’s land tenure 9 0 9 0 9 0 9 0 9 0 9 0 9 0 9 0 9 0 9 0 1 2 1 2 1 2 1 2 1 2 system. A total of 3.37 hectares of Tasmanian Natural owners are seeking approval from the on-ground disturbance was recorded Gas Pipeline King Island Council for the transport through the year. Table 2 shows the arrangements for the stockpile, and a breakdown of the disturbance for the Babcock Brown Infrastructure (BBI) number of possible joint venture different land tenures and activity acquired the Tasmanian Natural Gas partners are talking to the owners types. Pipeline (TNGP) from Alinta DTH Pty about further downstream processing Of the 3.37 hectares of disturbance, Ltd on 1 September 2007. Powerco potential. 0.70 hectares were rehabilitated during Tasmania Pty Ltd, which is owned by the year, with the remainder to be BBI, is the day-to-day manager of the There has been active exploration rehabilitated through the life of the pipeline. The TNGP transports natural for silica flour throughout the past licence. It is a licence condition that all gas from Longford in Victoria to Bell year. Tasmanian Advanced Minerals Pty earth-moving disturbance will be Bay, Hobart and Port Latta via Ltd have started mining at the new rehabilitated on or before the expiry of approximately 740 km of onshore and Blackwater mine, south of the Arthur the licence and prior to the return of offshore pipeline. The gas is sourced River, and is exploring in the Hawkes the security deposit. from the Gippsland Basin in Bass Strait Creek area to the north. The company and made available, via the TNGP, to has completed construction of a new In Table 3 the area that has been industrial and domestic markets in silica flour treatment plant at Wynyard. rehabilitated is shown for each activity Tasmania. and land tenure category. A percentage Environmental Management of the area rehabilitated against the The TNGP project expands the gas disturbances (Table 2) is also shown. The number of exploration work market in southeast Australia. Ten Approximately 21% of the area programs submitted for approval has permanent staff are based in Tasmania disturbed in the reporting period, for remained at the record levels of to operate the pipeline. all land categories, has been 2006/2007. rehabilitated. ENVIRONMENT, LAND ANAGEMENT Compliance Auditing A total of 182.08 line kilometres of M & gridding was undertaken during the INDUSTRIAL MINERALS In 1998/1999 MRT developed a year, with the division between land GIS-based system to record and tenures presented in Table 4. Industrial Minerals monitor the approval process for Table 5 presents the running totals Tasmania Magnesite NL holds exploration programs. A clause in the Regional Forest Agreement (RFA) for the last four years of the area Retention Licences over the large, disturbed and area rehabilitated. high-grade magnesite deposits at states that MRT must audit compliance Arthur River and Lyons River in with the Mineral Exploration Code of Approximately 38% of overall western Tasmania. The company Practice. disturbance has been rehabilitated. recently changed ownership and it is The auditing system (TEAMS II) Disturbances are no longer counted as the intention of the new owners to allows the detailed recording of all such if no further rehabilitation work is progress the resource definition to a exploration activities across Tasmania’s required of the explorer, or if the area stage where a Mining Lease can be many types of land tenure. The life of is taken up as a Mining Lease. applied for and the deposit developed. the exploration activity is tracked from As High Quality Wilderness is an The new owners continue to look for proposal through approval, works overlying layer on the above land opportunities for the use of this completed and rehabilitation. The tenures it is presented separately resource, while the CSIRO is getting following tables of statistics are (Table 6). closer to developing a commercial produced as standard reports from the magnesium metal process. system. As the system accurately Codes of Practice Tasmanian Titanium Pty Ltd sold its records exploration details and land The fourth edition of the Mineral interests to companies associated with tenure, it is not possible to directly Exploration Code of Practice is a code Dr Alan Bond. The new owners intend compare this year’s statistics with under the Mineral Resources to initially extract ilmenite from the those in previous years. Development Act 1995. This code is due existing stockpile at Naracoopa, on Ninety-six work programs were for review as specified in the Resource King Island, followed by the mining of submitted to MRT during the year Planning and Development Commission heavy mineral beach sands. The new compared with eighty-six in 2006/2007. Inquiry into areas to be reserved under Mineral Resources Tasmania Annual Review 2007/2008 19
Table 1: Activities approved Table 4: Distribution of gridding (line kilometres)
Activity Car High State Crown Private HEC Car High State Crown Private HEC Reserve Quality Forest Land Property Land Reserve Quality Forest Land Property Land System Wilderness System Wilderness Drill site 74 29 170 16 85 0 91.92 9.96 61.03 23.39 2.95 2.80 Helipad site 5 3 5 0 0 0 Bulk sample site 1 0 3 0 3 0 Camp site 4 4 0 0 0 0 Table 5: Disturbance and rehabilitation over Costean (km) 0 0 0 0 0.31 0 three years Grid (km) 91.92 9.96 61.03 23.39 2.95 2.80 Track (km) 0.64 0.64 0.50 0.00 0 0 Year Car Reserve State Crown Private HEC Total System Forest Land Property Land Disturbance (ha) 2004/2005 6.24 1.40 1.51 0.18 0.17 9.49 Table 2: Area of disturbance (ha) 2005/2006 5.66 2.10 0.79 0.07 0.25 8.88 Activity Car High State Crown Private HEC 2006/2007 4.33 4.98 0.28 0.82 0.04 10.45 (ha) Reserve Quality Forest Land Property Land 2007/2008 1.07 1.66 0.07 0.56 0.00 3.37 System Wilderness Rehabilitated (ha) Drill site 0.45 0.21 0.94 0.07 0.41 0 2004/2005 5.72 0.15 0.68 0.17 0.09 6.81 Track 0.46 0.46 0.29 0 0 0 2005/2006 1.25 0.41 0.14 0.06 0.00 1.85 Costean 0 0 0 0 0.12 0 2006/2007 0.91 1.58 0.13 0.15 0.00 2.77 Helipad site 0.12 0.04 0.20 0 0 0 2007/2008 0.11 0.30 0.04 0.25 0.00 0.70 Bulk sample site 0.01 0 0.24 0 0.03 0 Camp site 0.02 0.02 0 0 0 0
Table 6: Disturbance and rehabilitation, High Quality Wilderness areas Table 3: Area rehabilitated (ha) Year Disturbance Rehabilitated Percentage of Activity Car High State Crown Private HEC (ha) (ha) overall disturbance (ha) Reserve Quality Forest Land Property Land rehabilitated System Wilderness 2004/2005 1.97 1.97 100% Drill site 0.09 0 0.16 0.04 0.14 0 2005/2006 1.71 1.14 67% Track 0 0 0 0 0 0 2006/2007 1.61 0.30 19% Costean 0 0 0 0 0.08 0 2007/2008 0.74 0.00 0% Bulk sample site 0.01 0 0.14 0 0.03 0 Camp site 0 0 0 0 0 0
Note: High Quality Wilderness is an overlay on top of Car Reserve System and State Forest so is not added in to the total area of disturbance to avoid double counting. the Tasmania–Commonwealth Regional Forest Agreement. Flooding impeded progress by washing out the main It is planned to have the revised code ready for public crossing of the Savage River and severely damaging the comment in 2009. low-level crossing. North Pit was flooded to a depth of ten metres. Both crossings needed extensive reconstruction. The second edition of the Quarry Code of Practice is a code A span of the pipeline bridge over the Arthur River was also under the Mineral Resources Development Act 1995 and is damaged. currently under review. Allegiance Mining NL continued with development of its nickel mine at Avebury west of Zeehan. Construction and Mines Inspection commissioning of a concentrator is advanced and underground development is proceeding. Mines Bass Metals Ltd took bulk samples from the former Que Mines continued to prosper during the year with the River mine for treatment at Rosebery. The trials were following developments taking place. successful and open-cut mining of P-Q and S lens A consortium of Chinese companies, headed by the commenced, with 5000 to 7000 tonnes of ore per week Shagang Group, has acquired the Australian Bulk Minerals being shipped to Rosebery for treatment. (ABM) operation at Savage River, following reviews of the The Beaconsfield Mine Joint Venture gold mine at resource in North Pit. The Savage River mine had been Beaconsfield returned to full production, in stages, following winding down for closure in 2008, but the new owner the closure of the mine following the rock fall of April 2006. approved the rapid development of North Pit and is Bluestone Mines Tasmania Pty Ltd received approval for a considering increasing production. New equipment was level 2 permit for the Mount Bischoff mine and work on acquired and development accelerated to a rate of 50 000 developing an open-cut mine commenced. Ore is cubic metres of material mined per day. Constructing of an transported to Renison Bell for treatment. Development of in-pit workshop complex is nearing completion. the Renison mine, which was on care and maintenance, Mineral Resources Tasmania Annual Review 2007/2008 20 recommenced and the concentrator A remediation program is underway quarry. MRT lodged an objection was refurbished to commence to reduce acid drainage from the against a proposed subdivision adjoining production from both mines in July. Mount Lyell mine into the Queen the quarry’s boundary. River, which discharges into the King The Cornwall Coal Company NL River and Macquarie Harbour. A The Northern Midlands Council installed a mini-wall at the Duncan proposal to treat acid seepage from the received an application to rezone land, colliery. Preparations for mining the Mount Lyell Lease has been under near three quarries at Western Fenton seam at Mount Nicholas investigation by the DEHPA. A water Junction, for tourism and residential commenced with portal construction treatment plant design, which will use. MRT objected to the residential for the Blackwood No. 4 mine. partially neutralise seepage, extract 50 component of the application. The Intec Ltd recorded good production per cent of the zinc by ion exchange, quarries are considered to be of on their joint venture with Polymetals and extract over 90 per cent of the regional importance and any residential to retreat tailings at the Hellyer mine copper by iron cementation, has been encroachment will impede their site. The company also received selected. Further design work is development. Hearings will occur later development approval for its leaching planned for 2008/2009. in 2008. process to recover metals from electric arc furnace dust and low grade Town planning and quarries In 2006/2007 MRT successfully lead concentrate from the tailings. applied for rezoning of the Seven Mile Comments were provided to the Beach Protected Area to permit sand OZ Minerals Rosebery is conducting DEHPA on environmental management extraction. As a result, Sanbar Pty Ltd a major development program to plans for the Intec Ltd tailings leaching applied for a mining lease and permit, at Hellyer, Tasmanian Advanced identify ore resources and provide an and comments were provided on their Minerals operations near Corinna and additional twenty-year mine life. The Environmental Management Plan. A company was granted a mining lease at at Arthur River, Boral quarries at permit was issued and development of South Marionoak for the investigation The Nook, Launceston and this resource commenced in June. In and design of a new tailings dam to Beaconsfield, and Fieldwick’s quarries replace the Bobadil dam which is at Blackberry Hill (Sheffield) and Dianas consideration of competing matters of nearing capacity. Basin (St Helens). public interest in the protected area, the Department of Economic Tasmania Mines made improvements Comments were provided to Development appointed Victorian municipal councils and submissions to the treatment plant at Kara to planning consultants TRACT to draft a were made at Resource Planning and increase capacity. The company applied strategic plan to review potential Development Commission hearings for for a lease extension to provide for options for the area’s long term use. increased tailings storage. the review of planning schemes for the Central Coast, Clarence, Meander A Draft State Policy on the Van Dieman Mines plc commenced Valley and West Tamar municipalities. protection of agricultural land is under development at the former Scotia Land stability, access to mineral consideration by government. alluvial mine near Gladstone in resources and encroachment onto northeast Tasmania. Dams were Submissions were made to prevent extractive industries are important conflict between the policy and constructed and a treatment facility issues in these municipalities. was built in the township. important extractive industries The Break O’Day council is surrounded by agricultural land. Exploration on Mining Leases assessing Fieldwick’s quarry at Dianas Statements were submitted to the Basin, where a level 2 permit is Director of Public Prosecutions On-lease exploration programs required to reflect current production concerning sale of material illegally were approved on the Avebury, levels. Similar situations have arisen at Beaconsfield, Mount Lyell, Henty, quarries at Welborough Pass and extracted from a property at Sandford. Rosebery and Stonehenge leases. Blackberry Hill. Notice was served on a former lease applicant near Heybridge to stop Mine rehabilitation The Launceston City Council extraction and apply for a Mining Lease, approved a proposed residence near The Savage River Remediation with a lease application resulting from DTK Logging’s operation near Lilydale. this action. Two similar reports are Program is a joint program between The lessee successfully appealed against under investigation at Nabageena in the the Department of Environment, Parks, the decision. Heritage and the Arts (DEHPA) and Circular Head area. In the past the quarry at Tolosa Australian Bulk Minerals to improve Work commenced on developing a historic environmental liabilities at the Street, Glenorchy, encroached into the Wellington Park. Although a boundary mining lease inspection system (MLIS) Savage River mine. Work continued to interface with REGIS in the TIGER during the year to reduce legacy acid adjustment was negotiated, the lessee appealed against conditions applied to System. Development of the mine drainage on the mine site. A disturbance GIS (MLIGIS) program surveillance report on the Main Creek the permit. The appeal is yet to be continued. No. 1 tailings dam (or ‘Old Tailings resolved. Dam’) was reviewed and tenders were Hanson Construction Materials Pty called for the dam’s rehabilitation. Ltd continues to negotiate with the URBAN GEOLOGY Treatment trials of acid seepage from B Clarence City Council to purchase land This section provides geoscientific dump continued, with mine carbonates adjacent to the quarry at Flagstaff Gully. information for the management of and limestone being used as reagents. The company has presented potential geohazards, especially land stability. By The Australian Acid Mine Drainage quarry extension proposals at ensuring relevant geoscientific data are Conference was held in Burnie, with an community consultation sessions in available to the public and private inspection of the mine and the SRRP anticipation of a rezoning application to sectors, better land-use decisions can program being included in the program. permit future development of the be made. Mineral Resources Tasmania Annual Review 2007/2008 21
Land Instability MRT participated in a validation an important activity carried out by the study of the debris flow mapping it had section. These statistics provide the Land instability is a significant hazard previously undertaken in Glenorchy basic data for collection of royalties in Tasmania, with many homes having and Hobart in 2005. The study involved and assessment of exploration levels. been destroyed over the years and two leading geotechnical experts in the significant damage caused to Twenty-six Exploration Release field and resulted in the production of a Areas (ERA), covering 2263 km2, were infrastructure. By studying and report that has been presented to the understanding the landslide hazard it is offered to potential explorers by way State Emergency Service for of the TasXplorer news sheet, which is often possible to minimise or avoid the consideration. effects of land instability. MRT is circulated widely within the Australian actively addressing this hazard in three In addition to the three main mining community. The news sheet is main areas; hazard mapping, database activities outlined above, general sent to 249 clients of MRT by facsimile development and landslide monitoring. information was provided to various (69) and post (180), and is also available stakeholders, including comments on on the MRT website. Applications were A regional landslide mapping planning schemes and significant received for areas within thirteen program of the Devonport to Boat developments. advertised ERA’s resulting in thirteen Harbour Beach area on the North exploration licence applications West Coast, incorporating recently Tsunami covering 709 km2 of ground. developed risk assessment methodologies, is in progress. This area With funding assistance from the Officers of the section play a key is renowned for the high incidence of NDMP, MRT project-managed an role in maintenance of the TASXPLOR landslides, particularly close to the investigation of palaeotsunami deposits and REGIS modules within the TIGER coast where there is increasing in the greater Hobart area and database management system. pressure for urban development. The undertook a review of historical landslide maps, when finished, will records of tsunami in Tasmania. This Mining Legislation work is being done in conjunction with potentially improve land use decisions inundation modelling by other parties, The Mineral Resources Development by regulators and other stakeholders. which together will lead to the Act 1995 is the principal legislation This project is in partnership with local quantification of hazard and risk. relating to the management and councils and with funding assistance regulation of mining tenements in from the Australian and Tasmanian Tasmania. government’s Natural Disaster REGISTRY Mineral Resources Tasmania Mitigation Programme (NDMP). The Registry Section maintains a number of mining tenement registers in provides information through Service The TIGER landslide database forms hard copy and electronic format. The Tasmania outlets and forms approved a critical data foundation for the section provides advice to officers under the Mineral Resources landslide project. Ongoing data entry within MRT, inquirers from other Development Act 1995 are available for and maintenance occurred during the agencies, the mining industry, the legal downloading on MRT’s website. year and there are now over 2000 profession and the general public on a The Mineral Resources Regulations records from throughout Tasmania. wide range of matters associated with 2006, replacing the Mineral Resources A substantial upgrade of the mining tenements and legislation. Regulations 1996, came into force on functionality of the database occurred 28 June 2006. and a simplified view is now available The processing of applications for mining tenements and issue of on the Geoscience Australia website. Mining Tribunal MRT contributed to the landslide tenement documentation continues to chapter in the Natural Hazards in provide the majority of work for the Under the Mineral Resources Australia. Identifying Risk Analysis section’s officers. Development Act 1995, a Mining Requirements monograph published by Close liaison is maintained with Tribunal, consisting of a magistrate, has Geoscience Australia. professional geological officers of MRT, jurisdiction to hear a wide range of particularly in relation to maintenance mining disputes. MRT continues to coordinate the of the TASXPLOR database, ongoing monitoring of the Taroona The Act places an obligation on the monitoring of exploration expenditure, Director of Mines to attempt to landslide in Hobart and the Lawrence circulation of company reports, and Vale landslide in Launceston. Regular resolve disputes before there is a preparation and circulation of the formal hearing before the tribunal. In inclinometer surveys provide TasXplorer news sheet. information for the management of effect this usually consists of informal these areas and their surrounds. With The section liaises with a number of mediation, arranged by the Director of funding assistance from the NDMP, other agencies in regard to tenement Mines, between the parties. MRT has begun installing a near applications and provides information Experience to date suggests that the real-time monitoring facility for the to field staff who monitor on-ground dispute resolution process required by Taroona landslide to improve our activity on mining tenements. the Act adequately covers most ability to understand the causal factors Requesting and collation of situations that would otherwise require to landslide movement. production and expenditure statistics is formal determination.
Mineral Resources Tasmania Annual Review 2007/2008 22
Tribunal claims 74341 North East Bioregional Network Inc. v Green River Resources Limited — EL52/2007 Tribunal claims lodged with Mineral Resources Tasmania during the year, or still in progress, were: Objection lodged in regard to high conservation values within application area. Objection withdrawn 74307 Richey Fishing Co. Pty Ltd, R Jessup, Tasmanian Scallop following mediation. Fisherman’s Association and Tasmanian Fishing Industry Council v Bonaparte Diamond Mines NL — 74343 Kinsbrook Pty Ltd v P McIvor — 1780P/M EL32/2006 Dispute between land owner and operator of mining lease. Referred to Mining Tribunal. Objection lodged on effects of exploration and mining on fishing grounds. Objections withdrawn 74344 M and E Phelan v T Kapitany — 25M/2000 following mediation. Appeal against registration of caveat on a mining lease. 74313 M & P Blythe and G & W Blythe v Diatreme Resources Pty Ltd — EL6/2007 74346 Go Wild Consulting and others v Planet Minerals Pty Ltd Objections lodged by land holders. Objections — EL60/2007 withdrawn following mediation. Objections lodged in regard to high conservation values within application area. Licence refused by 74322 C Schwoch v Goldstock Mining NL — EL 20/2006 Minister.
Objection lodged by operator of tourism business. 74348 T Dudley and A Hunkeler v J I Stewart and Geotech Objection withdrawn following mediation. International Pty Ltd — EL2/2008 74323 J Hepehi and A Winkel v G Smith — 1243P/M Objections lodged in regard to high conservation values within application area. Meeting of parties Objection lodged by land owners in relation to undertaken. encroachment by adjoining quarry operation. Mediation held. Referred to Mining Tribunal. 74351 Van Diemans Land Company v Mineral Holdings Australia Pty Ltd — EL14/2008 74327 V Smith v Accord Mining Pty Ltd — EL30/2007 Objection lodged by land and lease holder. Objection Objection by land owner not wanting exploration on withdrawn following mediation. property. Objection withdrawn. 74352 Van Diemans Land Company v Mineral Holdings 74328 Tarkine National Coalition Inc. v Icon Resources Ltd — Australia Pty Ltd — EL12/2008 EL26/2007 Objection lodged by land and lease holder. Objection withdrawn following mediation. Objection lodged in regard to high conservation values within application area. Objection withdrawn. 74353 Red River Resources Limited v Tasmania Mines Limited — 8M/2008 74329 Tarkine National Coalition Inc. v Bass Metals Limited — Objection by holder of exploration licence. EL24/2007 Objection withdrawn following mediation. Objection lodged in regard to high conservation values within application area. Objection withdrawn. 74354 J R Wilson v Mincor Zinc Pty Ltd — EL18/2008 Objection lodged by land holder. Application 74334 K R Cuthbertson v New Hope Exploration Pty Ltd — withdrawn by applicant. EL44/2007 74355 J and P Meny, and others v Dove River Pty Ltd, Gujarat Objection by land owners not wanting exploration NRE Resources NL, Southern Ocean Science Pty Ltd and on property. Objection withdrawn. J McDougall — EL16/2008 74339 Roaring 40s Renewable Energy Pty Ltd and Tasmatex Objections lodged by land holders. Pty Ltd v Geopower Pty Ltd — SEL 37/2007 74356 P & G De Burgh-Day and others v Mincor Zinc Pty Ltd — Objections by wind farm developer and property EL17/2008 owner. Objections withdrawn. Objections lodged by land holders.
Mineral Resources Tasmania Annual Review 2007/2008 23
Lease Applications, 2007/2008
Total number of all types of exploration rights held Leases granted in 2007/2008 as at 30 June 2008 Product Number Area (ha) Mining Tenement Number Area All minerals 2 669 Exploration Licences — All minerals and stone 1 247 Category 1 (Metallic minerals) 214 15 280 km2 Dolerite 1 6 Category 2 (Fuel minerals) 18 2 178 km2 Easement 3 242 Category 3 (Construction minerals) 36 2 985 km2 Gravel 3 27 Category 4 (Oil — onshore) 3 39 666 km2 Sand 3 553 Category 5(a) (Industrial minerals) 68 6 062 km2 Sand and gravel 3 33 Silica 1 214 Category 6 (Geothermal) 7 31 555 km2 Stone 2 147 Retention Licences — Stone and gravel 1 4 2 Category 1 (Metallic minerals) 21 101 km Tin 1 382 Category 2 (Fuel minerals) 5 163 km2 Total 21 2 524 Category 3 (Construction minerals) 20 99 km2 Category 5 (Industrial minerals) 19 102 km2 Prospectors Licences issued 145 Not applicable Total number of leases in force at 30 June 2008 Permits to explore for minerals under the Commonwealth Offshore Minerals Act 1994 2 517 blocks Product Number Area (ha) Retention Licence under the All minerals 26 19 084 Commonwealth Offshore Minerals Act 1994 1 20 blocks All minerals and stone 5 5 958 Permits to explore for petroleum Clay 4 83 under the Commonwealth Petroleum Coal 2 6 289 (Submerged Lands) Act 1967 19 1022 blocks Coal and stone 1 175 Retention Licence under the CPSLA 1967 1 5 blocks Copper 1 5 Pipeline licences held under the CPSLA 1967 3 Dolerite 3 567 Pipeline licences held under the Tasmanian Dolomite 3 238 Petroleum (Submerged Lands) Act 1982 1 Easement 18 1950 Production licences held under the Gold 13 960 CPSLA 1967 3 8 blocks Granite 5 55 (Note: Exploration licences and retention licences may Gravel 165 3 012 include more than one category) Gravel and clay 1 29 Lime sand 3 21 Leases applied for in 2007/2008 Limestone 5 1 268 Nickel 2 1 346 Product Number Area (ha) Peat 1 9 All minerals 1 20 Quartzite 1 191 Dolerite 2 561 Sand 55 2 546 Easement 5 670 Sand and gravel 27 1 426 Gold 1 40 Sand and stone 13 915 Gravel 9 182 Sandstone 5 34 Sand 7 800 Shale 2 35 Sand and gravel 4 94 Silica 2 324 Sand and stone 2 101 Silica sand 1 20 Silica 1 214 Slate 3 165 Stone 12 1096 Specimens 8 70 Stone and gravel 2 42 Stone 213 5 889 Total 46 3 820 Stone and gravel 23 436 Tin 9 694 Tungsten 1 544 Total 621 54 338
Mineral Resources Tasmania Annual Review 2007/2008 24
Information Systems and Geophysics
The main activities of the Geophysics component of the TasExplore project. Information Systems and Geophysics The TasExplore project is acquiring The gravity base station information Branch in the 2007/2008 year were: new airborne and ground geophysical available on the MRT website has been ! The ongoing maintenance and data over northeast Tasmania and the extended with the addition of a development of the TIGER Furneaux Group as part of the 2006 number of new stations in northeast (Tasmanian Information on State election initiative to encourage Tasmania. Geoscience and Exploration mineral exploration in northeast The branch has participated Resources) System. Tasmania and parts of northwest and extensively in both the production of ! Completing acquisition of good central northern Tasmania. Flying promotional materials and in quality aeromagnetic and commenced early in 2007 and all new promotional activities at a number of radiometric data over northeast aeromagnetic and radiometric data national and international conferences. Tasmania as part of the TasExplore from the Furneaux Group and project. northeast Tasmania were released in TIGER System 2007. A series of qualitative and ! Participating in a National Following completion of Project quantitative interpretation reports TIGER on 30 June 2003 the TIGER Geoscience Agreement Potential based on the new airborne data were Field Study of Bass Strait and areas System, which provides a single storage released in March 2008 and are environment for MRT’s corporate data, offshore from western Tasmania and available on the MRT website. The first west of King Island. has been supported entirely from MRT ! phase of ground gravity data acquisition resources. As recommended in the Supporting the information was completed early in 2008 and 860 2006 review by Deloitte Growth technology environment in MRT. new readings were integrated with the Solutions Pty Ltd, maintenance and ! Migrating data into the TIGER existing data. Tenders will be called in targeted enhancement of the TIGER System. July for a second phase to commence System has been undertaken by means in October 2008. ! Preparing materials for and of a series of small contracts where the participating in MRT promotional As part of a joint National contractors work closely with activities. Geoscience Agreement project MRT Information Systems and other MRT staff. This strategy has proven effective, The branch also provided has been provided with good quality with a number of significant geophysical services and advice to MRT aeromagnetic data over Bass Strait and improvements being made to the and our clients. from areas offshore of western Tasmania and King Island. For the first TIGER intranet applications used by The branch is structured to reflect time it has been possible to produce a MRT staff and to searching and delivery the functions needed to achieve the good quality grid of aeromagnetic data of information on the MRT website. outcomes required by MRT and over Tasmania and Victoria and to The GDA94 datum has now been provides operational and geophysical attempt to establish the nature of implemented for tenement information services. At 30 June there were five geological relationships between the across the TIGER System and on the permanent systems support staff in the two states. MRT website. In most modules spatial Operations Section. The systems location information is retained with support staff are deployed within the The MRT website has indexes of the original values as entered and a functional areas of PC and network open file geophysical data including corresponding spatial data object operations or database and TIGER gravity base stations, airborne created with un-projected GDA94 System support. The branch manager is geophysical surveys for which digital values. also responsible for MRT’s geophysical data are held, and gravity stations. activities. Where applicable the basic digital data Using the TIGER System MRT staff can also be downloaded and new open enter, maintain and search corporate Major branch achievements during file data has been added to the website data relating to all aspects of MRT’s the year included: as it is received. All open-file airborne activities including tenements, ! Release of the first ever good quality geophysical datasets have been exploration reports, MRT publications, aeromagnetic and radiometric data converted to provide information in drilling, geohazards, samples, over northeast Tasmania. both AGD66 and GDA94 datums. geochemistry and observations, mineral ! Producing the first combined grid of Survey control point information can deposits and geophysics from a number good quality aeromagnetic data over be easily retrieved from The LIST after of browser-based thin client Tasmania and Victoria. carrying out a map-based search on the applications accessed via the MRT MRT website. ! Completion of the first phase of intranet. The MRT website enables acquisition and integration of new During the year 3709 open-file and access to this corporate data and gravity data from northeast closed-file gravity readings were added associated metadata from anywhere in Tasmania as part of the TasExplore to the Tasmanian database which now the world with internet access. Data project. contains a total of 75,373 stations. are delivered to clients through the ! MRT supported the fieldwork of an MRT website using customised textual Introducing significant improvements and spatial searches and a number of into a number of TIGER modules. Honours student, Thomas Methorst, to ! acquire gravity data over the central basic data sets are also available for Building an increased information part of Flinders Island. Significant gaps download. skills-base for MRT staff. remain in the State coverage with areas A total of 2538 gigabytes was ! Participating in major national and in the northeast being targeted this downloaded from the MRT website international promotional activities. year and next as part of the geophysical this year compared to 4426 gigabytes Mineral Resources Tasmania Annual Review 2007/2008 25
AEROMAGNETIC DATA TASMANIA–VICTORIA REGION
0 200
Kilometres
Mineral Resources Tasmania Annual Review 2007/2008 26 last year, this reduction reflecting more There are several network PC allowing connection from popular GIS mature search engine indexing of the servers running Windows Server. The packages to a restricted number of data site and a number of website crashes main PC network server is running sets. Larger datasets stored on the file associated with large downloads. An Netware 6.5 with approximately 600 system are now automatically upgrade of the website is planned to gigabytes of on-line storage. Windows replicated on a daily basis as they overcome this problem. The number of servers provide anti-virus, email, become open file. In excess of four visits per day has dropped to 698 from intranet and image delivery services to terabytes of network-attached storage 1114 over the course of the year. MRT staff. Files on the corporate Unix is used to accommodate these large systems are accessed from PCs using data volumes. Development of a Microsoft Samba software. Windows Server Excel-based bulk loader for loading and Update Services have been editing sample and geochemical data for implemented throughout the Data capture the TIGER System was completed Microsoft-based components of the Capture of metadata summarising during the year. A revised map viewer MRT network. Single sign-on is being technical documents relating to client for all TIGER modules and the introduced across the entire network exploration continued throughout the MRT website is in the late stages of including PC servers, the TIGER year, with 212 new summaries entered testing and will significantly improve the System, mail and Unix servers and will and 374 summaries updated. In presentation of map-based information. reduce the burden on users previously addition to internet searching of the Scanned drill logs and seismic sections required to remember and maintain summaries of open-file technical can now be retrieved using metadata separate passwords for each function. documents held by MRT, all open-file searches and viewed on or downloaded Unix systems provide corporate documents relating to onshore or from the MRT website. Other major information technology services to offshore exploration and open-file MRT upgrades to the TIGER System that are MRT staff. In addition there are Unix publications can be viewed or in progress include development of a servers dedicated to development and downloaded in full over the internet. module for handling all MRT clients and testing for the TIGER System, for the All mineral exploration reports are contacts and a textual interface for the MRT intranet, and for Samba. A further required to be in the national standard Mining Lease Inspection System. two Unix servers host the MRT format for digital reporting but website. The MRT website is located in Delivery of MRT geochemical data compliance with the report format at as part of the SEEGrid demonstrator the Rosny Park building to simplify maintenance and up-loading of data to initial lodgement has continued at ceased following the implementation, in approximately 90 per cent compared conjunction with Geoscience Australia, the website servers and has a 50 Mbit/sec connection to the internet. to the target of 100 per cent. This is of a web-based Geohazard the same as in the previous year and Demonstrator using a new version of The MRT website continued to be appears to have occurred as a result of well used with an average monthly Geoserver. increased activity and demand for download volume of 211 gigabytes and resources within companies. IT summary a peak monthly download volume of 391 gigabytes. The daily average Consultation with and assistance to In accordance with government number of visits decreased over the stakeholders has ensured that guidelines, MRT replaces desktop PCs year from 1114 per day to 698 per day. non-compliant reports have been every three years and transfers the The MRT website provides a updated to conform to the data original PCs to the Schools Program. high-speed access point for clients to formats detailed in the national New PCs are purchased with the access the open-file data held in the guidelines. Because of the extended current Microsoft enterprise operating MRT corporate information time before GDA94 topographic base system. Availability of MapInfo has been management system. Oracle spatial maps will be available for all Tasmania extended to more users and datasets replication is used between MRT’s all incoming reports continue to be have been modified to simplify the use internal and web servers. The website checked to ensure that the geodetic of these with MapInfo. offers an OGC Web Map Service datum used is clearly specified.
Mineral Resources Tasmania Annual Review 2007/2008 27
Data Management
The role of the Data Management the TasExplore initiative in central Tenement administration work Branch includes: northern Tasmania (Castra, Deloraine, included: ! geoscientific data management; Kindred, Latrobe, Montana, Sheffield ! seventy-five new exploration licence and Stowport) with capture/output ! tenement management services; applications processed and entered ! commencing on a further nine map into the MRT tenement information management of the Geographic areas (Lea, Liena, Loongana, Loyetea, system; Information System (GIS); Pencil Pine, Railton, Riana, Ulverstone ! fifteen Exploration Release Area ! and Wilmot). management of the Computer-Aided plans produced and entered into the Drafting (CAD) system; and The conversion of existing 1:25 000 MRT tenement information system; ! provision of support drafting scale digital geology maps from the ! forty-six new mining leases AGD66 datum to the GDA94 datum services. processed and entered into the During 2007/2008 the capture of commenced. MRT tenement information system; 1:25 000 scale digital geological data Work on the ‘seamless’ coverage of and continued. This work resulted in the 1:25 000 scale digital geology of ! the production of maps and data completion of twelve new map areas. Tasmania continues, with maintenance files for 97 proposed ‘on ground’ ! eight completed 1:25 000 scale being carried out on a regular basis. work programs for exploration digital geological maps in southern Maintenance of the 1:250 000 scale licences. Tasmania (Blackmans Bay, digital geology of Tasmania was also A total of 1287 hardcopy output Collinsvale, Elliott, McPartlan, carried out on a regular basis. products of digital geology and Mulcahy, Solitary, Strathgordon, Work commenced on the landslide tenement data were produced on Wings); hazard series maps for Devonport and demand using the agency’s inkjet ! four completed 1:25 000 scale digital Ulverstone. plotters, with 185 data sets of digital geological maps in northeastern CAD continues to be used as a geological data being produced for Tasmania (Blessington, Nunamara, support tool for many projects, with 15 clients. Patersonia, Roys). maps and plans and 289 tenement maps Data capture/output was completed and diagrams being produced for the revision of seven map areas for throughout the year.
Royalty, Finance and Administration
This branch provides the corporate ! Maintaining the MRT library ! The Mineral Resources Tasmania support function for Mineral Resources collection and ensuring that Annual Review for the year Tasmania. The main activities of the resources are provided to undertake 2006/2007. branch include: the development and delivery of ! Explanatory report for the Maydena, ! Ensuring that effective royalty and information services to MRT staff, Skeleton, Nevada, Weld and Picton fee collection systems and the mineral industry and members geological map sheets, by assessment programs are in place so of the public. C. R. Calver, S. M. Forsyth and that revenues are properly managed ! J. L. Everard (Explanatory Report and accounted for to the satisfaction Providing executive support to the 1:25 000 Scale Digital Geological of the Auditor-General. Director of Mineral Resources Map Series 1). Tasmania. ! The timely provision of financial, ! Regional geology of the Southern accounting and administrative advice Smithton Synclinorium. Explanatory to the division in conjunction with Information and Report for the Roger, Sumac and departmental corporate services. Access Services Dempster 1:25 000 scale geological map sheets, far northwestern ! The production of publications Publications Tasmania, by J. L. Everard, D. B. relating to the interpretation and Seymour, A. R. Reed, M. P. recording of Tasmania’s geoscientific MRT produces a range of McClenaghan, D. C. Green, and nature, geohazards and mineral publications to support its activities, C. R. Calver (Explanatory Report wealth, in both electronic and including geological reports, 1:25 000 Scale Digital Geological hard-copy form. promotional documents, newsletters, Map Series 2). ! materials for displays, Exploration The maintenance of the static Twenty-seven flyers promoting Release Area flyers, and other reports content of the MRT website. Exploration Release Areas were and promotional materials as required. ! Ensuring that all corporate produced. A considerable amount of information is kept in an orderly Major publications produced during promotional and display material was manner and is readily retrievable. the year included: produced as required. Mineral Resources Tasmania Annual Review 2007/2008 28
1:25 000 SCALE
WICKHAM SISTER
NEW YEAR EGG LAGOON DIGITAL GEOLOGICAL MAP PROGRAM PALANA ARTHURS
REEKARA SALTWATER TANNER WINGAROO
PATRIARCHS LOORANA SEA ELEPHANT As at 1 July 2008 EMITA MEMANA SELLARS CURRIE NARACOOPA WYBALENNA LEVENTHORPE
PEARSHAPE GRASSY REEF WHITEMARK LOGAN
CHAPPELL LOCCOTA FISHER STOKES
BADGER ANDERSON PUNCHEON
KERAUDREN EAST BARRETTS KERFORD THIRSTY & WEST (2 MAPS)
CUVIER EAST PRESERVATION PASSAGE & WEST (2 MAPS)
BIRD EAST & WEST (2 MAPS) MORIARTY
GRIM ROBBINS
STANLEY LYME REGIS NORTH & SOUTH STUDLAND MONTAGU NORTH & SOUTH (2 MAPS) (2 MAPS) WATERHOUSE NORTH & SOUTH CAMERON MELLA SMITHTON ROCKY CAPE (2 MAPS) TOMAHAWK MUSSELROE NATURALISTE
TAM O’SHANTER MARRAWAH EAST TOGARI LILEAH MAWBANNA WYNYARD EAST & WEST BRIDPORT OXBERRY MONARCH GLADSTONE EDDYSTONE & WEST (2 maps) (2 MAPS)
BLUFF ROGER TAYATEA MILABENA CALDER BURNIE LOW HEAD WEYMOUTH BOWOOD PEARLY BROOK PIONEER LANKA ANSONS BAY
PORT SORELL NORTH & SOUTH SUNDOWN SUMAC HOLDER FOLLY YOLLA STOWPORT ULVERSTONE DEVONPORT (2 maps) BELL BAY RETREAT NABOWLA SCOTTSDALE DERBY SPURRS RIVULET THE GARDENS
TEMMA DEMPSTER BERYL KEITH TEWKESBURY RIANA KINDRED LATROBE HARFORD BEACONSFIELD LILYDALE LISLE SPRINGFIELD RINGAROOMA BLUE TIER BINALONG
ORDNANCE BALFOUR BERTHA BARETOP PARRAWE LOYETEA CASTRA RAILTON W FRANKFORD EXETER DILSTON PATERSONIA MAURICE VICTORIA PYENGANA ST HELENS
KENNETH LILY DONALDSON WARATAH GUILDFORD LOONGANA WILMOT SHEFFIELD PARKHAM BRIDGENORTH LAUNCESTON NUNAMARA BEN NEVIS SADDLEBACK BRILLIANT BEAUMARIS
JOHNSONS LAGOON SAVAGE RIVER LUINA PEARSE LEA CETHANA GOG DELORAINE WESTBURY PROSPECT BLESSINGTON GIBLIN MATHINNA DUBLIN TOWN FALMOUTH
INTERVIEW MEREDITH RAMSAY CHARTER PENCIL PINE LIENA MOLE CREEK MONTANA CLUAN LONGFORD EVANDALE STACKS MANGANA ST MARYS IRONHOUSE
HARDWICKE LIVINGSTONE PARSONS BLOCK CRADLE BORRADAILE LAKE MACKENZIE QUAMBY BLUFF LIFFEY CRESSY NILE STANHOPE ROSSARDEN FINGAL PICCANINNY
AHRBERG STRINGER ROSEBERY TULLAH WILL ROWALLAN PILLANS BREONA POATINA DELMONT CLEVELAND HANLETH ST PAULS DOME ST JOHN SEYMOUR
HEEMSKIRK BICHENO EAST & WEST DUNDAS SELINA ACHILLES CATHEDRAL ADA SPLIT ROCK BRADYS LO O'CONNORS CONARA DIAMOND ROYS HENRY (2 MAPS)
TYNDALL TRIAL OCEANA DOME DU CANE OLIVE MIENA ARTHURS LAKE MILLERS JACOBS CAMPBELL TOWN SNOW APSLAWN LODI
MALLANNA FRIENDLY PROFESSOR GORMANSTON GOULDS OLYMPUS INA MONPEELYATA WIHAREJA PENNY ELLINTHORP ROSS LEAKE CRANBROOK
STRAHAN EAST OWEN & WEST (2 maps) COLLINGWOOD RUFUS BRONTE WADDAMANA STEPPES INTERLAKEN TUNBRIDGE MORRISTON COLONELS SWANSEA COLES BAY
LISDILLON KELLY TEEPOOKANA DARWIN LODDON ARROWSMITH D?ARCYS ECHO HERMITAGE TABLE VINCENTS FADDENS TOOMS GRAHAM
MAYFIELD TABLE HEAD PHILIPS ENGINEER VERA MAJORS TARRALEAH DEE CLUNY DENNISTOUN OATLANDS LEMONT ROYALTY SCHOUTEN
GRINDSTONE ALBINA SARAH McCALL WARNES ALGONKIAN WAYATINAH STRICKLAND CAWOOD BOTHWELL STONOR WHITEFOORD RAVENSDALE
LIMEKILN BOUGANVILLE VARNA BIRCHS ABEL SPIRES WYLDS OUSE MONTACUTE KEMPTON COLEBROOK WOODSDALE TRIABUNNA
HIBBS EAST & D'AGUILAR WEST (2 maps) LANCELOT POKANA GORDONVALE ELLENDALE HAMILTON ELDERSLIE BAINS BUCKLAND ORFORD DARLINGTON
ENDEAVOUR EAST & WEST (2 maps) INNES OLEGAS WINGS TIGER DOBSON BUSHY PARK BROADMARSH TEA TREE RUNNYMEDE SANDSPIT RIEDLE
MONTGOMERY MOORES SERPENTINE STRATHGORDON ADAMSFIELD MAYDENA UXBRIDGE NEW NORFOLK RICHMOND SORELL KELLEVIE PERON
MAINWARING OSMUND VIEW McPARTLAN BOWES SKELETON LLOYD COLLINSVALE HOBART CARLTON DUNALLEY
VERIDIAN MURDUNNA NORTH & LEWIS ROOKERY SOLITARY ANNE NEVADA LONNAVALE LONGLEY TAROONA CREMORNE SOUTH (2 maps)
ELLIOTT PROPSTING MACONOCHIE SCOTTS WELD GLEN HUON HUONVILLE BLACKMANS BAY COMMUNICATION TARANNA
CYGNET PORT ARTHUR HIPPOLYTE MULCAHY DAVEY CROSSING RAZORBACK PICTON GEEVESTON BARNES
LYMINGTON GREAT BAY RAOUL TASMAN SETTLEMENT LEGGE GLOVERS BURGESS WATERLOO
BOBS RAMINEA DOVER ADVENTURE BAY BREAKSEA RUGBY FEDERATION
BISDEE HASTINGS PARTRIDGE FLUTED CAPE Map complete HILLIARD MEL RAY
COX LOUISA PRECIPITOUS LEPRENA CLOUDY
TOLOPEA DE WITT PRION RECHERCHE
MINERAL RESOURCES TASMANIA DEPARTMENT of INFRASTRUCTURE, ENERGY and RESOURCES
Mineral Resources Tasmania Annual Review 2007/2008 29
The following reports were issued in geoscientific information to staff, Collection the Tasmanian Geological Record series mineral exploration companies, Sixty-two engineering geology during the year: geotechnical consultants, local reports were retrieved from archived 2006/04 — Geology of the Maydena, authorities, researchers, students and files for inclusion in the collection and members of the public. Skeleton, Nevada, Weld and the DOMINFO database. Picton 1:25 000 scale map The library continues to be staffed All journal subscriptions were sheets, by C. R. Calver, by a full-time librarian, with assistance renewed except for one petroleum S. M. Forsyth and being provided two days per week. The subscription which is no longer J. L. Everard. Workplace Standards Tasmania 2007/03 — A late Oligocene basalt from collection, although co-located in the required and one engineering geology Keach Hill, near Campbell Rosny Park library, is managed title which was replaced by a more Town, and its stratigraphic separately by a permanent part-time relevant subscription. significance, by J. L. Everard, librarian. F. L. Sutherland and Electronic access S. M. Forsyth. Technical services The library intranet pages were 2007/04 — Lawrence Vale Landslide The Inmagic DB/Textworks library updated. Online access to journal Investigations: implications for management software was updated subscriptions has been provided to all landslide hazard assessment during the year to version 11.00. titles where full-text access is included in Launceston, by A. R. Ezzy in the cost of the print subscription and and C. Mazengarb. The first stage of the library project to a selection of titles only available to cross-check the DOMINFO 2007/05 — Petrology of the host rocks, electronically. including mineralisation and database with the card catalogue, and adjacent rock sequences, making amendments to the database as Investigations into using from the Savage River mine, required, was completed. A number of WebPublisher software to make the by R. S. Bottrill and deposit names were found to be library catalogue available on the J. Taheri. missing from the database. The next intranet/internet commenced. The Work continued on adding and stage of the project will involve the Department of Premier and Cabinet is upgrading entries on the DOMINFO inclusion of these deposits in the providing a service to agencies to host database. deposits authority list and further WebPublisher. This will allow amendments of records as required. DB-Textworks library management Library Service Work is continuing on software to be uploaded and the library The library supports the core DB-Textworks database maintenance catalogue to be published on the activities of MRT by providing and cleanup. intranet and/or internet.
Mineral Resources Tasmania Annual Review 2007/2008 30 — Tasmania — Major Mining and Mineral Processing Operations and Proposed Projects
144° 145° 146° 147° 148°
NORTH
40° DR ALLAN BOND & ASSOC. NARACOOPA heavy mineral sands WHITEMARK 40° CURRIE 0 50 100 km KING ISLAND SCHEELITE GRASSY DOLPHIN
tungsten (scheelite) d
i r RIO TINTO ALUMINIUM G
l
a TASMANIA MINES a i r BELL BAY n
o
o t
i
KARA t c i primary aluminium
a
V
N tungsten, magnetite alloys, paste, powder m o
t
o
r AUSTRALIAN BULK MINERALS r f
o
t
e
c PORT LATTA n i e l
INDEX MINERAL n e
n iron ore pellets p i
o
PROCESSORS, HEYBRIDGE p TEMCO, BELL BAY c
r
a
e
t silica flour e ferromanganese,
n s
I r
e k silicomanganese, sinter
d
n
TASMANIAN ADVANCED i n l
s
U MINERALS, WYNYARD s CIRCULAR HEAD a silica flour B VAN DIEMAN MINES DOLOMITE, SMITHTON MINEMAKERS dolomite SCOTIA D MOINA tin, sapphire, gold AR fluorite, Sn, W NY Y Y BA W L TASMANIAN ADVANCED L 41° 41° RT BE BEACONSFIELD GOLD MINERALS, BLACKWATER ARTHUR RIVER IE O RIVER silica RN NP BEACONSFIELD magnesite BU VO gold KANGAROO METALS DE RIVERSIDE tin
METALS X PROTO RESOURCES BASS METALS CORNWALL COAL MT BISCHOFF BARNES HILL FOSSEY ZONE BLACKWOOD tin nickel-cobalt zinc, lead, gold, silver, copper CEMENT AUSTRALIA coal RAILTON cement LAUNCESTON AUSTRALIAN BULK MINERALS SAVAGE RIVER CORNWALL COAL iron ore DUNCAN coal TASMANIAN ADVANCED UNIMIN AUSTRALIA MINERALS, CORINNA MOLE CREEK silica flour limestone BASS METALS CORNWALL COAL STONEHENGE METALS QUE RIVER zinc, lead, gold, silver, copper FRONTIER RESOURCES CULLENSWOOD EAST GRANVILLE STORMONT coal tin Au-Bi 42° NARRAWA CREEK 42° Au-Ag-Zn-Pb OZ MINERALS OZ MINERALS AVEBURY ROSEBERY nickel STRAHAN zinc, lead, gold, silver, copper
OZ MINERALS CORNWALL COAL MELBA FLATS COPPER MINES OF TASMANIA Ni-Cu-Pt-Pd-Au KIMBOLTON MT LYELL coal copper, gold METALS X RENISON BELL tin, copper MAYDENA SANDS TRIABUNNA MAYDENA silica BARRICK HENTY gold
NYRSTAR HOBART SMELTER, zinc metal, alloys, cadmium, sulphuric acid HOBART 43° KEY
Mineral processor
Mine Exploration prospect or proposed project Major road
Railway
Transmission line MINERAL RESOURCES TASMANIA Gas pipeline DEPARTMENT of INFRASTRUCTURE, ENERGY and RESOURCES Sea port, airport 146° 147° October 2008 148°
Mineral Resources Tasmania Annual Review 2007/2008 31 Mineral Sector Overview
Growth in mineral exploration Exploration to further extend year’s end was waiting on approval activity is essential for the future resources continued at the Zinifex from the Chinese government, the final development of the mineral sector and Limited (OZ Minerals) Rosebery mine, condition to be satisfied before for the economic well-being of with feasibility studies into potential development can commence. Tasmania. expansion of surface infrastructure and Van Dieman Mines plc has According to the Australian Bureau construction of a new tailings dam announced that it was investigating a of Statistics (ABS), expenditure on commencing. The objective is to change to the proposed processing mineral exploration in Tasmania for the extend the life of the mine beyond plant and mining methods at the Scotia 2007/2008 year was $32.4 million, up 2030 at current mining rates. alluvial tin and sapphire mine, near 37% on the $23.7 million recorded in Bass Metals Ltd delivered the first Gladstone. This would result in a delay 2006/2007. Tasmania’s share of ore from the Que River mine to to commissioning the operation, but expenditure was down marginally from Rosebery in August 2007 and at year’s would likely result in a decrease in 1.38% to 1.32%. end had established a profitable capital costs. Tasmania experienced the fourth operation, with over 37 500 tonnes of Proto Resources and Investments highest rate of increase, after Western ore delivered during the year. Limited has successfully completed a Australia (50%), Queensland (46%) and Bluestone Mines Tasmania Pty Ltd scoping study into operating a the Northern Territory (44%), but commenced mining tin ore at Mount nickel-cobalt laterite mine and ahead of New South Wales (32%), Bischoff and reopened the Renison Bell processing plant at the Barnes Hill South Australia (30%) and Victoria mine in July 2008. A feasibility study deposit, near Beaconsfield. The (14%). into recovering tin and copper from company will continue to conduct Mineral Resources Tasmania data the Renison Bell tailings dam continued metallurgical testing and drilling as record a higher expenditure of $41.54 to yield positive results and work has precursors to completing a full million, of which $20.47 million or 49% progressed to detailed design stage. feasibility study into commencing the was spent on exploration licences. This Stemcor has sold 90% of Australian operation. high figure is gratifying in that it shows Bulk Minerals to a consortium of Maydena Sands Pty Ltd has been a strong commitment by the private Chinese companies, headed by the actively seeking markets for the sector to discover the new deposits Shagang Group. The open-cut mine at production of high quality silica flours needed to sustain the future mining Savage River is being expanded with a from Pine Hill, to the west of Maydena. industry. view to extending mine life by at least Plans are well advanced for a quarrying Buoyant conditions continued in the 25 years. operation with a dedicated treatment mining sector in 2007/2008, driven by Production resumed in the high plant on the proposed mining lease. strong metal prices, including renewed grade Western Zone of the Mineral exploration highlights interest in iron ore. The mineral Beaconsfield gold mine following lifting extraction and processing sector is of the final government restriction The high level of expenditure on Tasmania’s largest export industry, limiting underground mining. A new exploration resulted in significant new accounting for $2.8 billion worth of remotely operated mining method has drill intersections and announcements production and 53% of mercantile been implemented that enables ore to of resources that reflect the diversity exports, up from 49.4% the previous be extracted without personnel of metallic minerals in Tasmania. year. entering active stopes in this part of Venture Minerals Ltd has announced MRT, by providing information on the mine. an inferred resource of 20 million areas of high mineral resource potential Active exploration programs tonnes at 33% iron at the No. 2 zone in Tasmania, encourages private sector continued at the Mount Lyell and of the Mount Lindsay mine, northwest exploration which will lead to new Henty mines. of Renison Bell. The company also operations coming on stream as the Cominex Pty Ltd and Sumitomo announced a significant drill economic life of existing operations intersection of iron-tin-tungsten declines. By ensuring an adequate Australia Ltd have transferred their silica flour tenements in northwest mineralisation at its first hole into the return from our mineral resources, all Stanley River prospect further west. Tasmanians can share the benefits of Tasmania to Tasmanian Advanced our mineral wealth. Minerals Pty Ltd. Silica flour is used to Among other iron ore explorers, make LCD screens. The new company Iron Mountain Mining Limited Producing mines has recently received Level II permits announced shallow drill intersections of Allegiance Mining NL further to allow for the extraction of 50 000 magnetite in the Hampshire district. developed the Avebury nickel mine, cubic metres a year at the Corinna Bass Metals Limited has several with the first production of mine and the new Blackwater mine. significant drill intersections of concentrate in July 2008 and the first Tasmanian Advanced Minerals Pty Ltd zinc-lead-gold-silver-copper ore in the shipment expected during the following completed the construction of a silica Fossey Zone, the southern extension month. During the year, Allegiance was flour treatment plant near Wynyard. of the Hellyer mine, including 12.75 the subject of a successful takeover by metres of 18.5% zinc, 8.8% lead, 0.6% Zinifex Limited (now OZ Minerals Ltd) New developments copper, 273 g/t silver and 2.83 g/t gold. which was finalised on 18 July 2008. King Island Scheelite Limited has Bass has announced a resource of Recent drill intersections in the East completed negotiations with the Hunan remnant ore at Hellyer of 748 000 Avebury area indicate that further Nonferrous Metals Corporation to tonnes of 7% zinc, 4% lead, 0.3% growth in the Avebury resource is commence the redevelopment of the copper, 87 g/t silver and 1.3 g/t gold. likely. Grassy scheelite (tungsten) mine and at Preliminary studies into mining the Mineral Resources Tasmania Annual Review 2007/2008 32
Fossey Zone along with the Hellyer nickel and 0.94% copper at the and 36.4 g/t silver at the Sweeney remnants have commenced and Devereaux prospect. prospect near Trial Harbour and an preliminary metallurgical testing has Intensive exploration continued at Inferred Resource of 287 600 tonnes of yielded promising results. the Avebury mine and environs, with 2.8% zinc, 1.5% lead and 31 g/t silver at the Sunshine prospect near Zeehan. Zinifex Limited reported a 23 metre new total resources for the Avebury massive sulphide intersection grading deposit announced at 18.18 million Greatland Gold plc has announced tonnes of 0.95% nickel. There were a 5.6% zinc, 1.1% lead, 38 g/t silver and results from a twelve-hole shallow number of promising intersections drilling program at the Warrentinna 0.8 g/t gold at the Jupiter prospect, five outside the mine area, including eight kilometres south of Rosebery. goldfield in northeast Tasmania. Best metres of 1.5% nickel at the results were three metres of 2.9 g/t Zinifex also announced Foundation Stone prospect, 1.5 gold within intersections of nine nickel-copper intersections at Melba kilometres to the north of the deposit. metres of 2.06 g/t gold, and 51 m of Flats, east of Zeehan, including 1.9 Zeehan Zinc Limited announced an 0.51 g/t gold at the Derby mine and metres of 1% nickel and 0.8% copper Inferred Resource of 1.392 million three metres of 2.1 g/t gold at the and six metres of 0.8% nickel and 0.7% tonnes of 2.8% zinc, 3.4% lead and 69 Golden Dyke prospect. copper at the North Cuni–Genets g/t silver at the Boss mine near Zeehan. Metals X Ltd has announced a prospect; 0.7 metres of 10.8% nickel Stonehenge Metals Limited has resource of copper within the tin ore and 3.81% copper at the Nickel announced an Inferred Resource of bodies at Renison Bell of 1.189 million Reward prospect; and 4.7 m of 1.3% 562 000 tonnes of 0.5% tin, 1.4% zinc tonnes of 0.81% copper.
Mineral Resources Tasmania Annual Review 2007/2008 33 Value of the Tasmanian Mineral Industry
Year ended 30 June 2007† 30 June 2008 Commodity Unit Total Quantity Total Quantity Metallic Minerals Copper (assayed) ...... (tonne) 29 322 30 483 Gold (assayed) ...... (kilogram) 3 780 5 532 Iron ore pellets ...... (tonne) 1 837 985 2 423 240 Iron (in magnetite) ...... (tonne) 98 507 135 629 Lead (assayed) ...... (tonne) 28 833 29 285 Scheelite ...... (tonne) 30 11 Silver (assayed) ...... (kilogram) 98 881 98 663 Tin (assayed) ...... (tonne) 5 0 Zinc (assayed) ...... (tonne) 96 447 95 541
Value of Metallic Minerals ...... $922 133 500 $803 316 729
Non-metallic, Industrial and Fuel Minerals Clay – Brick ...... (tonne) 22 846 29 323 Other ...... (tonne) 1 200 5 600 Kaolin ...... (tonne) 9 373 6 905 Dolomite ...... (tonne) 5 645 7 696 Limestone – Agricultural ...... (tonne) 112 310 132 825 Cement ...... (tonne) 1 701 075 1 856 125 Chemical and metallurgical ...... (tonne) 49 469 57 101 Other ...... (tonne) 54 966 62 693 Silica (glass and other) ...... (tonne) 185 036 205 190 Coal (run of mine) ...... (tonne) 639 784 725 228 Coal (washed) ...... (tonne) 409 716 468 895 Peat ...... (m3) * 0 Gemstones ...... (kg) ‡ 0
Value of Non-metallic, Industrial and Fuel Minerals ...... $48 960 674 $55 429 254
Construction Materials Building stone – Freestone...... (tonne) 167 192 Other ...... (tonne) 14 984 193 501 Sandstone...... (tonne) 827 927 Crushed and broken stone – Basalt ...... (tonne) 1 160 407 904 250 Dolerite ...... (tonne) 1 277 517 1 271 318 Limestone ...... (tonne) 49 526 62 002 Sandstone...... (tonne) nil 45 Other ...... (tonne) 172 800 178 917 Gravel (aggregate) ...... (tonne) 38 210 36 420 Sand ...... (tonne) 601 467 626 899 Other road materials ...... (tonne) 2 625 109 2 219 886
Value of Construction Materials...... $51 683 067 $71 889 846
Total value with Australian metal prices ...... $1 022 777 241 $930 635 829
Value added production from Tasmanian and other ores ...... $1 800 882 479 $1 726 904 160 (aluminium, cadmium, cement, lead-copper, ferromanganese, silicomanganese, sinter, sulphuric acid, superphosphate, zinc)
Total value of mining and metallurgical production ...... $2 823 659 720 $2 657 539 989
† Figures for 2007 may vary from previously published results because of late or amended returns * Peat — production less than one tonne ‡ Gemstones — value only recorded
Mineral Resources Tasmania Annual Review 2007/2008 34 Value of Production, 2006/2007 and 2007/2008
2006/2007 2007/2008 % Change
Tonnes A$’000 Tonnes A$’000
Copper 29 322 - 30 483 - 4.0
Gold 3.8 - 5.5 - 44.7
Iron ore pellets 1 837 985 - 2 423 240 - 31.8
Lead 28 833 - 29 285 - 1.6
Silver 98.9 - 98.6 - -0.3
Tin 5 - 0 - -100
Zinc 96 447 - 95 541 - -0.9
Total metallic minerals - 922 134 - 803 317 -12.9
Non-metallic and fuel minerals - 48 961 - 55 429 13.2
Construction materials - 51 683 - 71 890 39.1
Value added production from - 1 800 882 - 1 726 904 -4.1 Tasmanian and foreign ores
Value of mining and mineral - 2 823 660 - 2 657 540 -5.9 processing production
3,000,000
Metallurgical production Construction materials 2,500,000 Non-metallic and fuel minerals Metallic minerals ) 0 0 0 '
$ 2,000,000 (
N O I T C U D
O 1,500,000 R P
F O
E U L 1,000,000 A V
500,000
0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 YEAR ENDED 30 JUNE
Mineral Resources Tasmania Annual Review 2007/2008 35 Mineral Exploration Expenditure
Year Australian Tasmanian Tasmania as Expenditure Expenditure % of Australian ($ million) ($ million) Expenditure 1994/1995 893.4 14.9 1.67 1995/1996 960.2 18.8 1.96 1996/1997 1148.6 26.0 2.26 1997/1998 1066.8 20.7 1.94 1998/1999 837.8 11.9 1.42 1999/2000 676.4 8.7 1.29 2000/2001 721.3 9.1 1.26 2001/2002 640.6 4.0 0.62 2002/2003 732.5 4.3 0.59 2003/2004 786.7 7.6 0.97 2004/2005 1028.4 8.3 0.81 2005/2006 1240.7 22.6 1.82 2006/2007 1714.6 23.7 1.39 2007/2008 2461.4 32.4 1.32
Source: Australian Bureau of Statistics — Actual and Expected Private Mineral Exploration, Australia. )
3000 %
) 2.5 ( n
o E i
l Total Australian expenditure l R i U m 2500
Tasmanian share T
2 I $ ( D
N E E R
2000 P U X T
1.5 E I
D F N
1500 O E
P E X
1 R E A 1000 H N S A I
L N
A 0.5 A I
R 500 N T A S Data: Australian Bureau of Statistics M U S A 0 0 A T 1 7 8 6 2 3 8 4 5 7 9 0 0 0 0 0 0 0 9 0 0 9 9 0 0 0 0 0 0 0 9 0 0 9 9 0 2 2 2 2 2 2 1 2 2 1 1 2 / / / / / / / / / / / / 0 6 7 5 1 2 7 3 4 6 8 9 0 0 0 0 0 0 9 0 0 9 9 9 0 0 0 0 0 0 9 0 0 9 9 9 2 2 2 2 2 2 1 2 2 1 1 1 YEAR
Mineral Resources Tasmania Annual Review 2007/2008 36 Commodity prices and the Australian dollar
Gold Copper 1,200 12,000
Au$/ounce 1,000 10,000 ) ) e
e Au$/tonne c n n n u o o t / / $ 800 $ 8,000 ( (
e US$/ounce e c c i i r r US$/tonne P P 600 6,000
400 4,000 7 7 7 7 7 8 7 8 8 8 8 8 7 7 7 8 7 7 7 8 8 8 8 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
...... y y y y t t r r e t t r e r v l v l c c n g b g n b c a c a p a p n p p n a o u o u e e a u e u a e e u e u J A J A O O J M J M M N M F N F D A D A J J S S Lead Zinc 5,000 5,000
Au$/tonne 4,000 4,000 ) ) e e n n n n
o Au$/tonne o t t / /
$ 3,000 3,000 $ ( (
US$/tonne e e c i c i r r P
P US$/tonne 2,000 2,000
1,000 1,000 8 7 7 7 7 7 7 8 8 8 8 8 8 7 7 7 7 7 7 8 8 8 8 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
...... y y y y t t r r e t t r r e v v l l c c n g b n g b c a c a p p a n p p a n o o u u e e a u e a u e e u e u J A J A O O J M J M M M N N F F D A D A J J S S Nickel Tin 50,000 30,000
25,000
) 40,000 Au$/tonne e Au$/tonne ) n e n n o n 20,000 t / o t $ / ( $ 30,000 ( e
US$/tonne c
US$/tonne e i
r 15,000 c i r P P 20,000 10,000
10,000 5,000 6 6 6 6 6 6 7 7 8 7 7 7 7 7 7 7 7 7 7 8 8 8 8 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
...... y y y y t t t t r r e r r e v v l l c c g n n g b b c c a a p p p a n p a n o o u u e e u a a u e e e e u u J J A A O O J J M M M M N N F F D A D A J J S S Australian Dollar : American Dollar 1.20
1.00 ) $ (
e
u 0.80 l a V
0.60
0.40 7 7 7 7 7 8 7 8 8 8 8 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2
...... y y t t r e r v l c g n b c a p p n a o u e u a e e u J A O J M M N F D A J S
Mineral Resources Tasmania Annual Review 2007/2008 37 — Review of Mineral Sector Operations —
Metallic Minerals
Base Metals ! 499 kilograms of doré at 35.8% Ag inclusive of the reported ore reserves and 60.26% Au. and show an overall increase of 3.60 The zinc flotation concentrate million tonnes compared with 2007. OZ Minerals production of 142 900 tonnes for the The main reasons for the increase in Rosebery Mine year reflected a decline in Zn feed the measured, indicated and inferred grades partially offset by an increase in resource are the addition of 2.708 OZ Minerals Limited operates an milled tonnes. Concentrate grade was million tonnes from W lens and 2.381 underground lead-zinc mine and adversely affected by fluctuations in million tonnes from P lens. concentrator at Rosebery on feed, a period where the addition of The significant increase to the Tasmania’s west coast, employing 196 reagent to modify pH became resource at Rosebery was largely due people in the operation. unreliable, and mill equipment to resource infill and extension drilling reliability. Restrictions in circuit in P, K and W lenses, and to a lesser Mine production capacity proved a bottleneck during degree B North and V lenses. months where higher feed grades were Total underground ore production Total ore reserves at Rosebery have experienced. was 739 000 tonnes at 10.48% Zn. increased by 1.14 million tonnes. This Production from the lower levels was Lead concentrate production fell is mainly due to resource upgrades 630 700 tonnes and came mainly from below that of the previous year, from resource to reserve in P and W K lens and P lens, with a smaller primarily as a consequence of the lens of 1.194 million tonnes. Changes contribution from V lens ore. reduced feed grade. Reagent addition to the reserve were due to depletions Production from the upper levels strategies were extensively modified of 0.737 million tonnes by mining. totalled 108 300 tonnes, with during the year to address previously production coming from remnant identified issues. The decreases in reserves were offset by conversion of resources to mining in B South, F and D lenses. Copper concentrate production was Mine development advance was sustained but doré production fell to reserves in W Lens (0.934 million 6500 metres, with 830 metres driven in 500 kilograms. tonnes) and revision of reserves in P Lens (0.26 million tonnes). the upper levels and 5700 metres Que River ore was toll-treated advanced in the lower mine. It is through the concentrator during the Rosebery Mine Lease exploration estimated that 151 000 tonnes of ore year following a successful trial in A total of 60 900 metres of drilling and 109 000 tonnes of waste were August 2007. produced. Capital development totalled was undertaken from both surface and 3200 metres. Resources and Reserves underground locations on the Rosebery deposit to 31 March 2008. Most of the capital development was Resources and Reserves for the required to extend the K and W Rosebery mine at March 2008 have The main target areas for declines to access future ore zones and been compiled for end of year underground exploration were provide drilling platforms for resource requirements and are reported using extensions to W Lens, Lower P Lens, infill and exploration drilling. the Australasian Code for Reporting of the K-W Corridor, X Lens and V Lens. Development was also undertaken at Identified Mineral Resources and Ore In each focus area the mineralisation 17K for the ventilation upgrade to Reserves. Mineral resources quoted are remains open at depth. increase the volume of air into the mine. Identified Mineral Resources as at March 2008 The operating development was in a number of areas including K Lens, P Reserves Tonnes Pb Zn Cu Ag Au Fe lens, V lens, Lower B and F lens. ('000) (%) (%) (%) (g/t) (g/t) (%) Rosebery: Mill Measured: 2 938 4.32 15.4 0.54 156 2.4 10.5 Ore treated totalled 726 800 tonnes Indicated: 3 921 3.36 11.3 0.37 132 1.8 9.4 from Rosebery and 34 700 tonnes from Inferred: 8 479 3.29 10.3 0.30 114 1.4 7.2 Que River. The overall grade was Sub total: 15 332 3.51 11.6 0.36 126 1.7 8.4 11.43% Zn, 3.65% Pb, 0.34% Cu, South Hercules: 136 g/t Ag and 1.63 g/t Au. Production Measured: 977 1.5 3.1 0.1 133 2.44 4.3 totalled: Total Resource: 16 336 3.38 11 0.34 126 1.74 8.1 ! 142 900 tonnes of zinc concentrate @ 54.52% Zn. Ore Reserves, Rosebery mine ! 34 000 tonnes of lead concentrate at Reserves Tonnes Pb Zn Cu Ag Au Fe a grade of 63.64% Pb and 1262 g/t ('000) (%) (%) (%) (g/t) (g/t) (%) Ag. Proved 3650 3.1 11.0 0.3 111.2 1.5 6.8 ! 7380 tonnes of copper concentrate Probable 1309 2.2 7.6 0.2 88.7 0.9 7.4 at a grade of 19.3% Cu, 8.72% Pb, Total 4959 2.9 10.1 0.3 102.3 1.4 7.0 5026 g/t Ag and 49.3 g/t Au. Mineral Resources Tasmania Annual Review 2007/2008 38
The underground drilling succeeded Capital expenditure sessions. Compulsory fatigue in increasing the measured indicated A total of $44.7 million was management training also commenced and inferred resources of the P, PK and expended during 2007/2008, with on-site in May 2008, with the view of W lenses. Drilling was also successful in further expenditure of $133.3 million developing a sustainable fatigue extending the inferred resource of X planned during 2008/2009. management plan upon completion of Lens. the training sessions. The surface exploration drilling was Personnel conducted to the north of current A total of 196 people were Environment known mineralisation. Three northings employed at 30 June 2008. No OZ Rosebery reported four were drilled targeting along strike of production hours were lost due to non-compliance events to the the prospective host position and industrial action during the year. One Tasmanian Government during Rosebery ore lenses. The extents of lost time accident was recorded. 2007/2008, which is a 30% decrease Y Lens were delineated with a possible Oz Rosebery Mine obtained AS4801 from the previous year. Capital works merge with X Lens, to be defined in certification which was achieved in that commenced in 2006/2007 for an the coming year. Follow-up drilling September 2007 and has been emergency retention system at the from the ‘Southern Near Surface’ maintained throughout 2008. The filter plant to prevent future project consisted of delineation of Safety Management System has uncontrolled discharges from the site U Lens. undergone continuous improvement have been completed. These works Whole-rock geochemistry was since this time with the strengthening have since been modified to enable the completed for drill holes BH348, JE350 of contractor management, increased capture of materials emanating from and BH351. Down-hole EM studies training and awareness on hazard the weighbridge. Site drainage were completed for holes BH348, identification, revised job safety management has also become a main 341R, and LB349. observation program, and additional focus following high rainfall events in ‘Project Horizons’ is an OZ communication and consultation August and October 2007. Rosebery internal project with the aim processes. The site has continued to maintain of increasing the mine life of Rosebery The Wellness Program has ISO 14001 certification to the 2004 beyond twenty years. The project continued to align with site safety, standard. A triennial audit for involves an increase in exploration health and environment initiatives recertification is to be held in February expenditure of $19 million over three including fatigue management, early 2009. years, and was approved in May 2006. intervention, stress management and The drilling was conducted working in heat, with increased Significant progress was made in concurrently with the surface participation from site personnel. The addressing environmental legacies, with exploration and took place in the north program has also continued to engage rehabilitation works continuing at the of the known resources. employees, contractors and their Hercules mine site. The stormwater The Horizons project also entails families to promote a healthier lifestyle. upgrade project has been completed, with studies continuing on appropriate conducting deep drilling from The Medical Referral Injury numerous underground locations, methods of acid drainage treatment. Frequency Rate was an improvement Rehabilitation works have continued including the Northern Exploration over the previous year and is Decline. The underground Horizons during 2007/2008 through the supported by implementation of continuation of the revegetation plan drilling was centred on extensions to measures over 2007/2008, including the Y lens, X Lens, and W Lens. (Hercules Assessment Index for manual handling training, first aid Rehabilitation), which involved targeted Exploration planning for 2008/2009 training, pre- and post- shift hydration application of lime and fertiliser to anticipates considerable further drilling. testing and mental health awareness promote re-growth. OZ Rosebery has continued to Capital expenditure, major projects implement the annual weed spraying campaign, with a significant focus on Project Approved Amount spent Status pampas, English broom, gorse, budget 2007/08 montbretia and cotoneaster. ($ million) ($ million) Bobadil Tailings Dam works 4.4 3.9 Continuing Significant works have been completed at No. 2 and 5 dams to Pre-feasibility study — Optimisation ROM 4.0 1.752 Continuing improve water quality and commence Rosebery ventilation upgrade 30.0 0.37 Continuing direct discharge of water into the Stitt Mine development 19.6 19.6 Continuing River. Work has also commenced on Mobile heavy equipment 3.9 2.31 Continuing the rehabilitation and revegetation of Power reticulation upgrade 2.4 1.37 Continuing the wetlands ponds associated with PCS electrical upgrade 1.299 1.152 Continuing No. 2 and 5 dams. Zinc surge tank replacement & upgrade 1.539 1.2 Continuing Toxicological testing of Lake Pieman Mine gem co pilot system 1.0 0.93 Continuing water has continued, with the use of Underground HV cable replacement 1.502 1.424 Completed local water flea to accurately determine Underground pump stations 1.714 1.040 Continuing the impacts of discharges from mine Rock breaker upgrade 0.660 0.536 Completed operations to water on the West Crusher building refurbishment 0.505 0.494 Completed Coast. Different testing methods will Retention ponds 0.587 0.487 Completed continue during FY09 with the view Acid mine drainage, Hercules 0.602 0.586 Completed that other mine sites on the West Coast may benefit from the results. Mineral Resources Tasmania Annual Review 2007/2008 39
Final stages of the toxicity There is a registered nurse available at mine near Waratah in western investigations are envisaged to initiate all times and a doctor on call. Tasmania. An average of twenty-seven the development of appropriate Water In August 2007 western Tasmania people are employed. Quality Objectives for the Pieman experienced heavy rainfall that lasted River in the form of a mixing zone in several days. This resulted in the Mining operation liaison with the Tasmanian government. wetlands at the No. 2 and 5 dam Que River is an open-cut mine, A mixing zone criteria provides overflowing into the Stitt River. Pumps recovering remnant ore left by the opportunities to measure potential were operational to pump water back previous underground operation impacts on the receiving environment to the effluent treatment plant (ETP) conducted by Aberfoyle Resources in and provides a realistic measurement and continual monitoring was of water quality. the 1980s. Production for the year undertaken. A crisis management team comprised 43 800 tonnes of ore mined Biological monitoring completed on was formed and agreed to deploy at 11.2% Zn, 6.1% Pb, 0.3% Cu, 163 g/t the site’s discharge points receiving people to monitor the ETP and Ag and 2.9 g/t Au. Waste moved environments showed an improving Bobadil, organise shutting down of totalled 553 000 bank cubic metres. picture, similar to last year’s results. underground pumps to minimise water Monitoring indicated that there were: going to the ETP, notify the A total of 37 960 tonnes of ore was Department of Tourism, Arts and the delivered to the OZ Minerals Rosebery ! No significant impacts on the Pieman Environment, and continually monitor mine for processing at 11.9% Zn, River ecology from the discharge of the online weather radar. 6.7% Pb, 0.3% Cu, 161 g/t Ag and the main tailings dam. 3.0 g/t Au. ! The company was notified that the The Stitt River continues to reap the stormwater drains were bubbling and In addition to the remnant benefits of a joint venture with the blocked and that concentrate was resources that are currently being West Coast Council to operate the laying in the carport and yard of a mined, three areas (S Lens, QR32 and rehabilitated tailings dam as a sewage house in Howard Street. The occupant Nico) contain virgin resources not treatment facility. Studies showed of the residence was encouraged to previously mined. These areas are sustained aquatic invertebrate life in have a blood lead test as she was being assessed with a view to future the river. pregnant, and it was requested that the mining. ! The Ring River continues to children also be tested for experience impacts due to historical precautionary purposes at the Resources mining operations in the region. company’s cost. The family relocated to another residence until the cleanup Total mineral resources are 701 000 Additional spigot points have been was completed. A letter drop in the tonnes at 5.4% Zn, 2.7% Pb, 1.2% Cu, installed at the Bobadil tailings dam. As area advised residents of the recent 83 g/t Ag and 0.88 g/t Au. These Bobadil is nearing the end of its events whereby historical lead and zinc comprise: operational life, studies have concentrate was eroded by runoff ! commenced into the location and Measured: 56 000 tonnes at 2.1% Zn, water and washed into adjacent construction of a new tailings storage 0.7% Pb, 1.7% Cu, 69 g/t Ag, 0.34 g/t residences. Blood lead test results facility at South Marionoak, located Au; indicated that two children had across the Pieman River from Bobadil. ! Indicated: 458 000 tonnes at 6.0% elevated blood lead. Further results This project has gained Board approval Zn, 3.0% Pb, 1.2% Cu, 88 g/t Ag, indicated that levels had not improved and is seeking various stakeholder 1.0 g/t Au; with removal of the source exposure. approvals. ! A community open forum, held in Inferred: 187 000 tonnes at 5.0% Zn, Increased focus has been placed on December 2007, advised that blood 2.8% Pb, 1.0% Cu, 74 g/t Ag, 0.78 g/t dust monitoring of the site and lead testing would be available for any Au. Rosebery township. GHD has been interested people during the month. Total mining reserves are 78 400 employed to undertake a dust Company representatives met with characterisation survey. Continual high tonnes at 9.0% Zn, 4.6% Pb, 0.8% Cu, government delegates on the issue of 121 g/t Ag and 2.6 g/t Au. volume atmospheric sampling elevated lead levels in a Rosebery monitoring was undertaken during family and remained in regular contact Exploration 2008. with the Tasmanian government to ensure that they were informed of A review of the company’s Mineral Community relations company activities. A lead fact sheet Resource and Reserves base at Que OZ Minerals, in conjunction with was developed for distribution to the River was undertaken in July 2008 the Australian Workers Union, made community. Results of recent blood following mine depletion at PQ and representation to government lead tests were presented at a second S-Lens deposits as part of the initial ministers and the Premier in a bid to forum. Aardvark Cleaning and mining operation. Whilst some minor amicably reach a resolution to Restoration was employed to additional drilling was undertaken in concerns over the operation of the extensively clean family items, linen, the project area no other modifications Rosebery Community Hospital. curtains etc., and the house and yard to the Mineral Resources have been finalised. It was agreed by all parties to were extensively cleaned. The company continue to work towards resolving continues to work with the family. Further drilling is planned in the the issue for the community. As a 2009 financial year aimed at testing result, and in partnership with OZ Bass Metals Ltd targets prospective for new lenses, Minerals, the hospital is now open 24 such as south of S-Lens, and to hours a day, 7 days a week following a Bass Metals Ltd, through the Que delineate potentially mineable financial commitment from the River Mining Alliance with Mancala resources in close proximity to the company for $500,000 over two years. Mining Pty Ltd, operates the Que River existing underground workings. Mineral Resources Tasmania Annual Review 2007/2008 40
Human resources milled, producing 100 800 tonnes of significant hazard. The vegetation The operation employs an average concentrate containing 28 tonnes of survey was designed to assist with of 27 people, and works an average of copper, 16 000 ounces of gold and planning fire management on site. CMT 5000 man hours per month. Employees 135 000 ounces of silver. Waste mined has active programs for increasing are sourced from local communities at totalled 39 600 tonnes. community and site personnel’s Waratah, Tullah and Rosebery, with a A total of 2400 metres of awareness of environmental issues and large proportion travelling from the development was advanced, environmental management at Mount north coast areas of Burnie and 2100 metres in ore and 300 metres in Lyell. Ulverstone on a daily basis. Some waste. Drilling totalled 1000 metres. During the year CMT provided contractors travel from the greater informative tours to tourism operators Launceston region and stay at Resources and Reserves in Queenstown and Strahan to improve Rosebery while on shift. The Prince Lyell estimated mineral their understanding of the legacy Zero lost time and medical resource at 31 March 2008, at 1% Cu environmental issues and the efforts treatment injuries were recorded cut-off grade, was: being made by CMT and the State to during the year. rectify the impacts from past mining Prince Lyell below 1390 RL 5.99 Mt practices. Environmental management Prince Lyell cave 2092–1465 2.45 Mt Copper Mines of Tasmania has The operation reported no Western Tharsis 11.77 Mt continued to assist the State with its environmental incidents during the King Lyell copper clays 1.2 Mt program to treat acid drainage from year. The greatest environmental Crown 3 crown pillar 0.61 Mt historic Mount Lyell mining activities. challenge facing the project is Total resource 22.020 Mt treatment of acidic water generated Capital expenditure from both the old underground The Prince Lyell estimated ore operation and the current waste rock reserve at 31 March 2008, at 1% Cu A total of $2.747 million was dumps. Since commencement of mining cut off grade, was: provided for capital expenditure. Major items were $1.798 million for decline there has been a significant In situ ore 4.21 Mt at 1.506% Cu improvement in the legacy issues development, $172,000 for a Secondary ore 5.42 Mt at 1.16% Cu surrounding the mine with a major fire-fighting vehicle, $165,000 for a reduction in heavy metals entering the Surface stockpile 50 000 t at 1.27% Cu refuge chamber, and $107,000 for new Southwell River. Total reserve 9.68 Mt at 1.31% Cu pumps to upgrade the 1615 pump station. Employment Intec Ltd The company employed a total of This company employs 48 people in 101 people in management, Gold its tailings retreatment operation at the maintenance and administration. A Hellyer mine. further 187 contractors were employed in production, transport, Beaconsfield Mine A total of 1.129 million tonnes of treatment and maintenance. tailings was mined from the tailings dam Joint Venture using a suction dredge. Lead-zinc Environmental programs concentrate production was 52 600 Production at the Beaconsfield gold tonnes containing 19 200 tonnes of Copper Mines of Tasmania has mine was suspended after a rock fall in zinc, 6600 tonnes of lead and ten continued with its environmental April 2006. Limited production had kilograms of silver. improvement program. The legacy of recommenced by 30 June 2007, with an old site designed to drain direct to the staged recommencement of Reserves at November 2006 were the river has been a challenge. underground mining operations 10.8 million tonnes at 2.8% Zn, 3.0% Additional sediment retention ponds, continuing during 2007/2008. Pb, 0.16% Cu, 88 g/t Ag and 2.6 g/t Au. drainage diversions, installation of an Development production and stope Capital expenditure comprised $2 automated truck wash facility, production from the Eastern Zone of million on a new transformer. flocculent dosing of critical stormwater the mine provided 12,843 ounces of A tailings bank impoundment was drains, pumping of stormwater to gold production in the December 2007 constructed within the tailings dam. treatment areas and improved half year, with stope production from management of ore spillage have the Western Zone of the mine contributed to an improvement in recommencing in December 2007 stormwater quality. Ongoing strategic utilising a new remote mining method Copper planning included a comprehensive in which no personnel enter the review of the site closure plan, a production stopes. Copper Mines of Tasmania strategic vegetation survey, Pty Ltd, Mount Lyell development of a new heritage Production management plan, and studies to assess By year end the mine had returned This company operates the Mount opportunities to improve the site’s to normal production levels and ore Lyell underground copper mine and water and energy efficiency. processed in June exceeded a rate of concentrator at Queenstown, The natural revegetation of much of 240 000 tonnes per annum for the first employing 288 people in operations. the historic disturbance of the Mount time since mining recommenced. Lyell mining field is progressing well, A rate of 300 000 tonnes per annum is Production although the potential for bushfire being targeted by increased Ore mined totalled 2.565 million impact on infrastructure, heritage tele-remote loading and backfilling tonnes, with 2.512 million tonnes being features and revegetation has become a capacity. Orders have been confirmed Mineral Resources Tasmania Annual Review 2007/2008 41
Identified Mineral Resource, Tasmania Reef favourable re-evaluation with new as at 30 November 2007 drill-hole data. Measured Resource 307 000 tonnes @ 17.8 g/t Au (175,000 ounces contained gold) Total resources outside reserves Indicated Resource 503 000 tonnes @ 15.1 g/t Au (244,000 ounces contained gold) were 84 000 tonnes at 7.055 g/t Au Inferred Resource 63 000 tonnes @ 12.2 g/t Au (25,000 ounces contained gold) (containing 19,000 ounces of gold). This comprised an indicated resource Total Resource 873 000 tonnes @ 15.8 g/t Au (446,000 ounces contained gold) of 56 000 tonnes at 6.688 g/t Au Estimated Ore Reserve, Tasmania Reef (containing 12,200 ounces) and an Proved Reserve 392 000 tonnes @ 12.0 g/t Au (151,000 ounces contained gold) inferred resource of 27 000 tonnes at 7.819 g/t Au (containing 6,800 ounces). Probable Reserve 703 000 tonnes @ 8.60 g/t Au (194,000 ounces contained gold) Total Reserve 1 095 000 tonnes @ 9.80 g/t Au (346,000 ounces contained gold) Employment Total employment of staff and for two new, larger Elphinstone R1600 program was completed in an area contractors was 167, with 19 employed loaders. immediately north of the mine. Further in administration, 76 employed on surface in the concentrator, Mine production during the first six drilling will be undertaken after months of the year was restricted to encouraging results were obtained. maintenance and geology, and 72 sill driving (development in ore) and Beaconsfield Gold acquired the employed underground. stoping production from the Eastern Lefroy Resources Limited exploration Zone. Following acceptance of the tenements covering much of the Environment and major projects Western Zone Case for Safety by the northeast Tasmanian gold province, There has been continued focus on Chief Inspector of Mines on with the company planning to energy and water management at the 28 September 2007, necessary systematically drill targets at Lefroy Henty gold mine during 2007/2008. rehabilitation work and the with the aim of developing several open A number of initiatives implemented establishment of footwall drives pits from which ore would be trucked during the year have resulted in required for the new mining method to Beaconsfield for processing, utilising improvements in the efficiency of the delayed firing of the first stoping panel spare capacity in the ore treatment water supply infrastructure around the in the Western Zone until late plant. The company also acquired two site. These initiatives included: December 2007. tenements in the historic Mathinna goldfield. ! Modifications to the pumping system The newly introduced remote supplying water to underground to footwall-driving mining method, in reduce reliance on water sourced which no personnel enter the Barrick (Henty) Limited from the Henty River, and make production stopes, was successfully Henty gold mine maximum use of recycled water introduced throughout the second half pumped from the mine. of the year, providing access to high This company operates an ! Installation of a larger diameter grade ore on multiple levels in the underground gold mine and treatment pipeline between the mine water Western Zone of the mine. plant near Queenstown. settling pond and the plant raw A total of 141 205 tonnes of ore Gold production for the year was water tank to make better use of was mined for the year. The ore 2078 kilograms, with 1468 kilograms of recycled water and reduce reliance treatment plant operated normally silver also being produced. Waste on water drawn from surface throughout the year, although at less mined totalled 83 000 tonnes. impoundments. than full capacity as mine production ramped up. Ore treated totalled Resources and reserves The potential underground settling process, which was identified last year, 141 139 tonnes at an average grade of Reserves at 30 June 2008 were is still under consideration, but the 7.71 g/t Au, producing 33,570 ounces 595 000 tonnes at 7.983 g/t Au, of gold. containing 152,900 ounces of gold. The stope which is to be used did not reserves are based on a gold price of become available until recently due to Exploration US$750 and the resources are based changes in the mining schedule. This A diamond drilling program has on a gold price of US$900 according to project is due to be implemented in the commenced with the objective of the direction of Barrick Corporate. second half of 2008. Once further increasing gold reserves by implemented, this project should yield The reserves increased by 5386 a significant energy saving due to lower testing the Tasmania Reef below the ounces in 2008. This figure accounts pumping requirements in dewatering F21 Zone (the bottom of the current for the 8028 ounces that were the mine and pumping the treated resource) over an interval of 300 sterilised from reserves without vertical metres between 1200 and 1500 mining. Sterilisations arose from water back underground. metres vertical depth from surface. The changed understanding and subsequent Other areas in which energy program will take up to a year to attain downgrading of ore zones through consumption savings have been realised the drill density necessary to estimate a increased knowledge from flat-backing are: JORC compliant measured reserve. and sludge-hole information in relation ! Installation of a new compressor for Exploration around the Beaconsfield to Mount Julia ore blocks. Cost the Inco cyanide destruction circuit, mine focussed on two long evaluations and subsequent replacing two older, less efficient diamond-drill holes targeting the North downgrading of Darwin Mid and units. Tasmania Reef and testing prospective Darwin North ore blocks also took mine series host beds that have never place. The Tyndall Zone has been ! Installing timers on heaters in the before been drilled. A small RC drilling added to reserves following a site change house. Mineral Resources Tasmania Annual Review 2007/2008 42
! Further adjustments to the pitch of destruction of the main eastern river Sales comprised 2.346 million tonnes the blades in the main underground crossing and badly damaged the of pellets, 42 150 tonnes of ventilation fan. western crossing. The eastern crossing concentrate and 171 700 tonnes of The annual bio-monitoring survey of was replaced with a roller-compacted iron ore chips. the Henty River upstream and concrete structure that can overtop Mineral Resources and downstream of operations again during major flow events and has been confirmed that the mine is having no designed for a 1 in 80 year event. This Ore Reserves impact on stream fauna. This was the structure is capable of handling the old Mineral Resources and Ore fifteenth year that the mine has carried fleet but there is inadequate room for Reserves have been estimated for the out this survey, which is a good the Cat 789 trucks to pass the adjacent Savage River magnetite deposit, at the indicator of the mine’s performance crusher/conveyor. end of March 2008. with respect to managing pollutant The western crossing therefore The increase in overall reserve is levels in discharge water. required the capacity to pass the new due to the completion of updated shovel and truck fleets, which were designs and schedules for an expansion Capital expenditure assembled on the south side of the in North Pit. Capital expenditure was $2.2 river, as well as the highway fuel trucks. million. Major items included a mobile The old crossing was rebuilt with a Drilling triple box culvert and a jaw crusher ($792,000), R100 used Since 1 July 2006 ABM has roller-compacted concrete structure. LDH ($288,000), and $340,000 spent completed a total of 2510 metres of This crossing is design for a 1 in 100 on the exploration program. HQ diamond drilling and 397 metres of year event and can also be overtopped. reverse circulation percussion (RC) All of the runoff from the mill area, drilling to update the North Pit Iron ore the Emergency Tailings Dam, parts of Resource model. The diamond drilling B Dump and all of Centre Pit are comprised eleven holes with the transferred across this structure in a objective of upgrading areas of inferred Australian Bulk Minerals small box culvert arrangement for resource within the North Pit (Savage River mine) treatment in South Lens. A new Extension 4 design to increase the hydrocarbon separator and weir reserve. All holes produced orientated Australian Bulk Minerals operates an arrangement has been constructed at core using triple tube methods, with open-cut iron ore mine at Savage River the South Lens outfall. three holes subjected to detailed and a pelletising plant and ship loading geotechnical logging. The objective of facility at Port Latta. Operations the RC holes was to test the With the implementation of the Mine production at Savage River was distribution of Tertiary basalt on the Mine Life Extension Plan, ABM took 0.649 million cubic metres of ore and ridge top to the north and northeast of delivery of a new fleet of three Hitachi 11.644 million cubic metres of waste. the current North Pit. 3600 shovels, an Hitachi 1900 The total volume mined was 12.294 excavator, and thirteen Cat 789 haul million cubic metres. Employment trucks. The concentrator crushed 5.821 A total of 522 people were Mining has been concentrated in million tonnes of ore and milled 5.501 employed in the operation including moving old waste material of North million (wet) tonnes, for the contractors. At Savage River 385 West Dump and stripping old waste production of 2.535 million tonnes of people were employed in the mine, and intact rock along the west and concentrate. concentrator and in the township. At southeastern walls of North Pit. Ore Production at Port Latta totalled Port Latta and Burnie 137 people were continues to be mined from the 2.423 million tonnes of pellets, with employed in operations and Extension 3 pit floor and is being 33 220 tonnes of concentrate and administration. blended with low grade stockpiles. 264 760 tonnes of pellets being The main capital works in the mine stockpiled. were associated with the new In-Pit Workshop Facility and the effects of a Savage River major flood event that occurred in Total mineral resources, measured, indicated and inferred early August 2007. North pit 174.3 million tonnes @ 52.9 (% DTR) Construction of the new workshop South Deposit 29.11 million tonnes @ 42.9 (% DTR) was nearing completion by the end of Centre Pit South 54.93 million tonnes @ 46.6 (% DTR) June 2008. The Reliability Centre with Centre Pit North 57.34 million tonnes @ 52.6 (% DTR) its fuelling services was fully operational Centre Pit South Extension 3.67 million tonnes @ 45.5 (% DTR) and the workshop was being fitted out. Total 323.23 million tonnes @ 50.5 (% DTR) ABM Conveyor Crossing 1 was expanded to allow highway fuel trucks Total ore reserves proven and probable and the new Cat 789 truck fleet access North Pit 107.73 million tonnes @ 50.5 (% DTR) to and from the pit. As the highway fuel Centre Pit South 10.97 million tonnes @ 43.4 (% DTR) trucks could not negotiate the original South Deposit 8.45 million tonnes @ 43.9 (% DTR) mine access route, which snakes down Total (including stocks) 131.02 million tonnes @ 48.9 (% DTR) under the conveyor, a new workshop access road was constructed. DTR (Davis Tube Recovery) is a measure of the percentage of magnetite mineral that In August 2007 a major three-day will be recovered into concentrate from magnetite ore. rainstorm caused the overtopping and Mineral Resources Tasmania Annual Review 2007/2008 43
Environmental and Capital expenditure concentrate and 14 700 kilograms of rehabilitation activities Capital expenditure for the year was scheelite concentrate was produced. Weed management continued $28 million. Major items included the A total of 289 000 tonnes of waste material was mined in the open cut. around the mine and town site, with development of the in-pit workshops ($14.6 million), fire system upgrade, The majority of the waste mined was broom growth reduced considerably and extensions to accommodation in moved to the south end of the open compared to the previous year. the town. cut for permanent storage, with small Mine waste management continued quantities used on roads or for with in situ classification and rehabilitation around the site. segregation of waste rock. Waste from Tasmania Mines NL, North Pit is stockpiled at the Broderick Kara mine Exploration Creek Dump. The ‘flow through’ has A drill program incorporating in been extended further north and the This company operates the Kara excess of 2000 metres of diamond dump extended to the west. No. 1 and smaller Eastern Ridge drilling to define resources north of the open-cut mines and a processing plant current Kara No. 1 open cut has been Remediation at Port Latta has southeast of Hampshire in northwest completed and assay, resource and continued, with ABM funding a Tasmania. reserve evaluation for the program Coastcare program from Rocky Cape continue. A further program of The operation produces up to to East Stanley. A joint project was resource drilling of the northern Kara 200 000 tonnes of magnetite ore from completed with the Circular Head No. 1 area will take place next year, a northerly-plunging synclinal Council, Parks and Wildlife Service and together with a definition drilling skarn-style mineralised deposit, with the Cradle Coast Authority at The Nut program for the Kara magnetic mining operations proceeding from at Stanley. anomaly. south to north and becoming gradually Dust deposition at Cowrie Point and deeper. Scheelite concentrate is Resources/Reserves Crayfish Creek is measured by high produced as a by-product of the Ore reserve estimates for Kara volume air sampling with selective PM10 magnetite mining and processing No. 1 are based upon depletion of an inlets. The annual averages were operations. ore reserve estimate made in 33.8 mg/m3 at Cowrie Point and Mining operations consist of the December 2006. Total proven reserves m 3 22.16 g/m at Crayfish Creek. mechanised excavation of weathered at 1 July 2008 are: (oxidised) ore and overburden, and ABM operates under the Goldamere ! Fresh magnetite-bearing ore: blasting of fresh ore and waste with Pty Ltd (Agreement) Act 1996 which 1.883 million tonnes >30% Fe, production blast holes. The mine requires the company to operate to including 141 000 tonnes of utilises uniform ten metre bench best practice environmental >30% Fe, 0.55% WO3; management. The Savage River heights with 70 degree bench faces and ! an operating bench slope angle of Oxidised magnetite-bearing ore: Remediation Program is a joint between 42 and 45 degrees. In a major 393 900 tonnes >30% Fe, program between the Department of change all ore mined is now crushed including 38 000 tonnes of >30% Fe, Environment, Parks, Heritage and the within the open pit by a mobile crusher 0.55% WO3. Arts (DEHPA) and ABM with the and subsequently moved by truck from Total probable reserves comprise: objective of capturing and treating 65% the open cut to a stockpile area ! Fresh magnetite-bearing ore: of the site’s copper load and adjacent to the processing plant. Waste consequently not provide an acutely 516 000 tonnes >30% Fe, material mined is excavated from the including 5000 tonnes of >30% Fe, toxic aquatic environment. The western wall cut-back program and 0.55% WO3; company sets internal water quality from the active benches at the ! objectives for emissions to the Savage northern end of the open cut and is Oxidised magnetite-bearing ore: River to achieve the objective by: stacked as permanent dump material in 92 000 tonnes >30% Fe, ! the mined-out southern end of the including 8000 tonnes of >30% Fe, Providing a centralised water 0.55% WO3. management system so that as much open cut. The indicated resource estimated for mine water as possible is discharged The Kara No. 1 open cut contains Kara North 266 comprised: from a central settlement pit. fourteen years of proven and probable ! Total fresh magnetite-bearing ore: ! Managing tailings decant water to reserves at a production rate of 200 000 tonnes of magnetite ore per 425 000 tonnes >30% Fe, including keep it above pH 6.5 with alkalinity 175 000 tonnes >30% Fe, greater than 15 mg/L. year. Additional potential resources have been indicated by previous and 1.1% WO3. ! Increasing the alkalinity in the Savage ongoing exploration drilling programs ! Total oxidised magnetite-bearing ore: River through innovative immediately to the north of the 275 000 tonnes >30% Fe, including engineering, mine planning and current reserves. Tasmania Mines is in 55 000 tonnes >30% Fe, 0.9% WO3. water management as much as the process of re-evaluation of the The probable reserve at Eastern Ridge practicable with the goal of keeping resources at Kara No. 1 which will add is 43 300 tonnes >30% Fe, 0.45% WO3. the river’s alkalinity above 15 mg/L significantly to current reserve and therefore decreasing the legacy estimates. Employment copper toxicity. Seventeen people are employed Production Appropriate management and full-time directly in operations, monitoring systems are in place and A total of 191 400 tonnes of together with three full-time and two ABM is in current compliance with the magnetite ore was mined from which part-time staff employed in requirements. 93 400 tonnes of magnetite administration. Contractors are Mineral Resources Tasmania Annual Review 2007/2008 44 employed in drilling, blasting, production ramp-up was reported to storage facility, wetlands and water earthmoving and maintenance, the be ahead of schedule. Mining continued, storage dam. During the reporting number depending on the varying with 120 100 tonnes of ore and 78 500 period, a flocculent addition system demands of the operation. tonnes of waste being produced. was designed and installed to increase the effectiveness of the settling pond in Environment Mine development removing suspended particulate matter All rehabilitation, environment and A total of 4700 metres was (SPM) from the discharge water. Prior pollution control objectives are advanced in mine development, 820 to the commissioning of the flocculent currently achieved by adherence to the metres of which was advancing the system, SPM levels ranged from 7 to 2006 EMP. A Mine Closure Plan has decline. Level development occurred in 35 mg/L in the discharge water, with been produced for Tasmania Mines by the Avebury, Central and Viking ore levels dropping to 1 to 4 mg/L after Pitt and Sherry who are also currently zones. An additional 300 metres was commissioning. reviewing the environmental impact of raise bored for ventilation. Structural work was undertaken in any potential future production the wetlands in November to increase increments. Mineral resources the residence time of the water, which The total mineral resource should further improve the water Major projects estimated at December 2007, at 0.7% quality, particularly nitrogen and An application for a 44 hectare Ni cut-off grade, was 14 million tonnes soluble metal levels. The northwest cell mining lease has been made to permit at 1.04% Ni, containing 145 000 tonnes of the wetlands was excavated to the planning and construction of a of nickel. This comprised: increase the flow path, as that area future tailings storage facility to ! Inferred resource: 6.88 million formed a backwater when the water commence. tonnes at 0.99% Ni; levels were low. The first cell on the ! eastern side of the wetlands was also Capital expenditure Indicated resource: 4.9 million expanded and baffles were constructed tonnes at 1.09% Ni; A $5 million capital equipment to slow down the water. ! Measured resources: 2.22 million program continues to be implemented Further monitoring is being tonnes at 1.06% Ni. to improve capacity and reliability of undertaken to determine the the current crushing, milling and The total mineral resource effectiveness of these measures. treatment process. Major items are a estimated until December 2007, at mobile crusher ($1.6 million) and the 0.4% Ni cut-off boundary, was 18.180 Capital development construction of a ball mill ($519,000). million tonnes at 0.95% Ni, containing 172 000 tonnes of nickel. This Development of the mine and New developments comprised: infrastructure required the expenditure The acquisition and implementation ! of $256.8 million during the year. Some Inferred resource: 9.76 million major items included underground of equipment to upgrade the tonnes at 0.88% Ni; processing plant and support planned ! development ($32 million), tailings dam production levels with improved Indicated resource: 6.05 million wall ($16 million), grinding and capacity — allowing campaign tonnes at 1.01% Ni; floatation structure ($17 million), ball processing or higher rates of ! Measured resources: 2.37 million mill ($9 million), crusher structure production — continues and is planned tonnes at 1.03% Ni. ($4 million) and fine ore bin to be incorporated into the operations ($4 million). within the next 6 to 12 months. Plans Exploration for the open cut, incorporating new A total of 14 600 metres of diamond reserve additions, will be completed drilling was carried out underground, Tin during 2008, allowing effective with 16 900 metres being drilled on long-term life of mine planning to surface. Exploration concentrated on proceed. the Viking Extended and East Avebury Bluestone Mines Tasmania prospects. Minor drilling was Pty Ltd — Renison Bell and completed at the Pontiac prospect. Mount Bischoff Nickel Employment In March 2006, a Tasmanian Tin At year’s end the company Projects review was conducted and Allegiance Mining NL/ employed 56 people and 210 planning commenced for the restart of OZ Minerals Limited, contractors. The largest sections were the Renison Bell operations and the Avebury mine mining, which employed 95 people, and commencement of operations at construction which employed 92. Mount Bischoff. The planned Mount Allegiance Mining NL continued to Bischoff operation was recognised as develop the Avebury nickel mine west Environmental protection critical to achieving short-term of Zeehan. Allegiance was the subject Avebury has a positive water economies of scale in ore processing of a successful takeover by Zinifex balance, requiring excess water to be due to the lack of development in the Limited (now OZ Minerals Ltd) which discharged to Comstock Creek. Renison underground operations. was finalised on 18 July 2008. Extensive work has been done over the Approval for the Mount Bischoff There was no concentrate reporting period to further improve Development Proposal and production during the year as the the quality of the water being Environmental Management Plan was beneficiation plant was still undergoing discharged to the creek. obtained on 24 October 2007, with minor commissioning in some areas, The water treatment system site activity commencing immediately in such as the regrind circuit. The comprises the settling pond, tailings accordance with permit conditions. Mineral Resources Tasmania Annual Review 2007/2008 45
Development activities at Renison commenced on 7 May 2008, with the Identified Mineral Resource estimate, consolidated as at 30 June 2008 purchase of two Atlas Copco M2D jumbos, four Atlas Copco loaders, and Measured four Hitachi 30 tonne trucks. Renison Bell 645 000 tonnes at 1.87% Sn, 224 000 tonnes at 0.47% Cu The Mount Bischoff crusher for run Mount Bischoff 2 900 tonnes at 0.82% Sn of mine ore is situated at Renison Rentails 18 176 000 tonnes at 0.42% Sn adjacent to the concentrator. Surface Sub-total 18 823 900 tonnes at 0.47% Sn plant commissioning was underway on 224 000 tonnes at 0.47% Cu 30 June. Indicated Production Renison Bell 1 400 600 tonnes at 2.01% Sn, 767 300 tonnes at 0.32% Cu A total of 16 000 tonnes of ore at Mount Bischoff 1 405 300 tonnes at 1.103% Sn 0.88% Sn was won from the Mount Sub-total 2 806 000 tonnes at 1.56% Sn Bischoff Project open pit during the 767 300 tonnes at 0.32% Cu year. Inferred No ore was produced from Renison Renison Bell 2 351 000 tonnes at 2.04% Sn, 386 000 tonnes at 0.66% Cu mining operations during the year, and Mount Bischoff 1 071 600 tonnes at 0.7% Sn no tin-in-concentrates were produced Sub-total 3 422 600 tonnes at 1.63% Sn for sale. 386 000 tonnes at 0.66% Cu Waste mined from Mount Bischoff totalled 281 000 bench cubic metres, Totals with HC and potentially acid-forming Renison Bell 4 396 600 tonnes at 2.01% Sn, 1 377 200 tonnes at 0.44% Cu waste dumped in the Browns Face Mount Bischoff 2 479 800 tonnes at 0.94% Sn historic workings after completion of Rentails 18 176 000 tonnes at 0.42% Sn dump preparation. Neutral waste was Total 25 052 500 tonnes at 0.75% Sn utilised for formation of the Happy 1 377 300 tonnes at 0.44% Cu Valley waste dump keel drain and miscellaneous sheeting in accordance with permit and management plan conditions. Renison mining lease and in Renison dump construction, run-of-mine pad Bell township over summer 2007/2008, construction, tourist area construction, At Renison, 14 000 tonnes of waste specifically targeting gorse, montpellier fuel bay installation, and workshop was mined from capital development in broom and blackberry. A dam construction. Upgrade and the South Renison and Radio-Romulus- surveillance report was completed at improvement of the MRT carbonate King Billy ore zones. A total of 126 Renison by GHD Engineers in October drain for site water management and metres of decline development was 2007, in expectation of completion of north-side old workings water completed in the South Renison the final two metre lift on tailings dam neutralisation was mainly completed. Decline (SRD), with 103 metres of C over the 2007/2008 summer period. capital waste development in the SRD Underground operations completed 1540 level and 1054 m3 of capital waste The Mount Bischoff carbonate at Renison included South Renison stripping completed in the 1840 Radio North Valley drain was nearing decline development, services level. completion at the end of June 2008, extension, installation of a second with extension of the old MRT egress ladder-way in South Renison Employees limestone drain across to a final from the 1551 metre level to 1669 polishing pond adjacent to the Waratah metre level, and development As at 30 June 154 employees and gun club via an aqueduct embankment. flat-backing in the Radio ore body on 125 contractors were employed on The drain was upgraded with new the 1840 metre level. Tasmanian Tin Operations sites, with limestone. 31 employed at Mount Bischoff, 57 Commissioning of the Renison employed in mining at Renison, 44 Pollution control initiatives were concentrator after significant capital employed in processing, 125 employed implemented as part of plant upgrade and addition of new equipment in maintenance and 22 employed in refurbishment activities, with improved to enhance metallurgical performance services and administration. Total capability for separate layered was in progress. budgeted Bluestone Mines Tasmania deposition of sulphidic reactive tailings Dewatering of the North Renison Pty Ltd employees will be 206 upon full and acid-neutralising or inert tailings to (Rendeep) areas down to the 1475 employment. allow progressive capping. Control and metre level was also in progress. The neutralisation of plant water initiatives water level is on hold while the North Environmental and pollution were also in progress. Renison decline rehabilitation control initiatives proceeds. Major projects Monitoring programs and frequency A 100 room West Coast Village, were maintained throughout the year The Tasmanian operations located in Zeehan, was also completed. to ensure continuity of data for point (comprising the Mount Bischoff and source and ambient water quality Renison projects) commenced re-start Capital expenditure monitoring. A Closure Plan for the activities in December 2007. A total of $18.5 million was Renison lease was completed during At Mount Bischoff completed work expended on capital at the Tasmanian the year. Weed and pathogen control included site preparation and roads, operations to June 2008. This measures were continued across the infrastructure development, waste comprised: Mineral Resources Tasmania Annual Review 2007/2008 46
! Plant and equipment at Renison. filtered concentrate product. The A comprehensive review of all ! Infrastructure at Renison and Mount copper is present mainly in association aspects of the Scotia project was Bischoff. with cassiterite in the fault, allowing a instituted in March 2008. The main free carry of the copper through to ! Rentails project work. findings were that the proposed mining ! flotation and hence attractive economic methods and significant components of Renison mine development. conditions. Silver values of up to the original process plant design for ! Mount Bischoff mine development. 400 ppm have also been recorded in Scotia (and also planned for Endurance) the copper concentrate. ! West Coast Village construction. were inappropriate, given the degree of Expectations for commissioning of water-saturated material encountered New developments the copper circuit at Renison Bell are in initial pre-stripping of the for early in the last quarter of 2008. Rentails Project overburden. The Rentails project is based upon Subsequently the company the re-treatment of 18.2 million tonnes Van Dieman Mines announced the findings and key of historical tailings, averaging 0.43% Sn, recommendations of the review which produced from the Renison mine over Over the past year the company’s resulted in the formation of a Revised the past 40 years. Work undertaken focus has been on operations at the Mine Development Plan. The plan included: Scotia and Endurance mines near incorporated significant changes to ! Gladstone in northeast Tasmania, aspects of mining and processing, Rentails feasibility study advanced, although exploration and resource including: with pilot plant testing of both development has also been carried out mineral dressing and across all of the company’s seventeen ! investigations to reduce further risk pyro-metallurgical processes tenements. There was no production by dewatering, trial mining and bulk completed. ! during the year. sampling; Pyro-metallurgical test work was Highlights of the year include: ! examination and trials of potentially conducted using Ausmelt ! Scotia mine development approval. simpler methods to deliver wet ore technology, with results indicating from the mine to the plant; high quality tin fume and copper ! Central clean-up facility ! matte products were attainable from development approval. modifications to the primary the process at expected metal processing plant and tin shed ! Erection of gravity treatment plant. recoveries. ! concentrating facility. ! Drilling of A and B tailings dams was Formation and adoption of a Implementation of the Revised Mine conducted in March 2008 to obtain ‘Revised Mine Development Plan’ at Development Plan has resulted in samples for variability test work, Scotia. significant capital savings and will result with sulphur grade critical in sizing ! Endurance DPEMP lodged. in lower operating costs, but will of flotation plant and particle size further delay commissioning of the critical in sizing of grinding plant. Scotia mine plant, now estimated to occur in Bluestone intends to continue to The Scotia Development Proposal November 2008. advance Rentails towards completing a and Environmental Management Plan detailed design in the last quarter 2008, (DPEMP) was approved by the Endurance mine as well as continuing to refine and Tasmanian Government in May 2007 The Endurance project will be a optimise test work and opportunities and the Dorset Council in June 2007. major beneficiary of the modifications for the project. GR Engineering Follow-on permits relating to being implemented at Scotia, being able Services were retained in February environment and construction activities to take full advantage of these benefits. 2008 to complete the detailed design were issued by various authorities precedent to accurate project during the following three months. The Endurance DPEMP was lodged economic analysis and board On receipt of approvals the in March 2008 and is currently under presentation in the last quarter of the company immediately commenced the consideration by the regulatory 2008 calendar year. scheduled pre-mining site works. These authorities, but on the understanding Renison Copper Project activities included the upgrade of that there are likely to be variations in existing access tracks, freshwater and the final mining method adopted. The Federal-Bassett fault contains tailings dam-site geotechnical and Subject to permit approvals and increasing copper values with depth, construction works, mains power changes to the mine plan, it is now particularly as chalcopyrite. An connection, and treatment plant and expected that the Endurance project identified mineral resource estimate site office infrastructure construction. was completed for copper for Renison will commence production in around Bell in 2007. Development approval for mid 2009. commissioning of the central Laboratory test work confirmed that Employment a saleable chalcopyrite concentrate concentrate clean-up plant was could be produced from the sulphide received in August 2007. At year end the total number of full flotation circuit at Renison Bell, and a The gravity treatment plant arrived time and contract employees was 28, capital project was initiated to install from the USA in November 2007 in with nineteen employed in operations additional equipment for maximising sixteen containers. Construction began and nine employed in administration copper recovery and grade into a dried immediately on the prepared site. and management.
Mineral Resources Tasmania Annual Review 2007/2008 47
Reserves and Resources determined JORC reserves. The Scotia were plant, equipment and A further conclusion from the Scotia proposed drilling program will initially infrastructure ($4.4 million), dam project review was that the basis upon focus on the Scotia Project resource works and road construction. A total which the previous management team and is scheduled to commence in of $108,000 was spent on the tin had determined the JORC reserves and mid-September 2008. cleaning facility. resources was not consistent with current best practice. The company has Capital expenditure embarked on a limited (approximately At year end, total capital 1000 metres) confirmatory drilling expenditure on major projects was program to validate the previously nearly $5.4 million. Major items at
Industrial Minerals
Limestone and Unimin Australia Limited new 60 tonne excavator was acquired, and work commenced on a new 30 Total production from the Mole dolomite metre weighbridge. Creek quarry included 19 054 tonnes of stone, 36 651 tonnes of aglime and Beams Bros Pty Ltd 49 661 tonnes of lime. Overburden Beams Brothers operates a waste removed to the dump site Silica limestone quarry at Flowery Gully and totalled 363 707 tonnes. The equivalent a dolomite quarry at Cressy, employing of 30 staff was employed throughout Index Mineral Processors the financial year. Twenty of these a total of 21 people. Production of This company employs 27 people in limestone and dolomite during the year were in the quarry and lime plant operation, one in maintenance, three in its fine-grained silica sand processing totalled 150 000 tonnes, comprising plant near Burnie. Production for the 57 000 tonnes of metallurgical grade administration and six in management and sales. year was 10 400 tonnes of fine and limestone, 14 000 tonnes of lime and 24 000 tonnes of coarse product. limestone for water treatment/ Environmental neutralisation, 66 000 tonnes of fine Reserves/Resources limestone and dolomite for the A Forest Practices Plan was The Index Group purchases raw Beaconsfield Gold mine, 4600 tonnes approved for the removal of trees material silica sand from Tasmanian of dolomite by-product and 8400 around the dump area on the eastern Advanced Minerals. A number of tonnes of limestone mixing stone. side of the site. An additional 77 ha of potential silica deposits have been land was purchased on the eastern side Extensive reserves exist at the Flowery investigated by the company during the of the site to facilitate the construction Gully site, while the Cressy lease has a year, but no sites have been selected. medium reserve level. of a new discharge settling pond and to increase the boundary distance from During the year 18 000 m3 of waste Major projects and new neighbours. material was removed from the developments Flowery Gully and Cressy quarries. Kiln environmental performance There was no progress on a Dump pads at both the sites were remains within limits due to the new development application to sell a third levelled for rehabilitation works. baghouse. Some modifications have product, presently deemed a waste been made to the baghouse to increase material. Research and development Major capital expenditure during the efficiency. reporting period included equipping all work has demonstrated the potential crushing plants with computer No land has been rehabilitated at to enhance the business viability controls, which has enabled operators this time. The total area disturbed by significantly. It is anticipated that the to be reassigned to jobs with less safety the operation remains approximately utilisation of this product will allow hazards. 470 000 m2. sales from the site to match the full 60 000 tonnes nominated in the Reserves/Resources Development Proposal and Circular Head Dolomite Kilnstone was a blend of medium Environmental Management Plan. and Trading Co. Pty Ltd and low quality to maximise resources There are no major projects in life and meet production quality progress or planned. The Circular Head Dolomite and targets. Whole-of-life stripping ratio Trading Company employs 15 people and reserves of high, medium and low Capital expenditure in its dolomite quarry at Smithton. quality continue to place the life of the Capital expenditure was utilised in Total production consisted of over mine at greater than twenty years. An sustaining projects and for minor 90 000 tonnes of materials, including Exploration Licence was granted along improvements. 52 000 tonnes of screenings, 37 000 the western side of the site and tonnes of dolomite powder and 9000 exploratory drilling will commence Environmental cubic metres of ready-mix concrete. next year. The Burnie operation site Major capital expenditure during environmental management system was 2007/2008 included a new cement Major projects and new accredited to AS/NZS ISO 14001:2004 mixer and a new spreader. An upgrade developments in April 2008. There were no of the existing powder plant is One of the three forty-tonne dump environmental breaches or community currently being investigated. trucks was replaced during the year, a complaints during the year. Mineral Resources Tasmania Annual Review 2007/2008 48
Safety 2007/2008 financial year totalled over refurbishment of the kiln and The company recorded one lost 26 000 tonnes of bricks and pavers, associated infrastructure is due to be time injury, with an absence of two which included the export of completed prior to February 2009. days. approximately 7000 tonnes of product Ample reserves of material are to New Zealand, Japan and Korea. available at all sites. Minor rehabilitation has been Ceramics undertaken at both the Longford and Relbia pits. More substantial works K&D Bricks & Pavers were performed at the Greenhill This company continues to Austral Bricks Tasmania Forest site. The annual environmental manufacture clay bricks and pavers in Twenty-one individuals and one audit was successfully completed. the Hobart suburb of New Town. contractor are employed by Austral An automated packaging line was Bricks Tasmania. Production for the completed in February 2008. Significant
Fuel Minerals
Cornwall Coal Company NL driving of the roadway continued. The Washery throughput of raw coal belt road was driven 140 metres totalled 712 463 tonnes to produce The Cornwall Coal Company through the same set of faults and 436 544 tonnes of saleable coal at a employs 88 people in coal mining, connected to the fan roadway. Work washery yield of 61.3%. Coal sales washing and transport in the Fingal stopped in June and the workforce was totalled 453 600 tonnes. Valley and at Hamilton. sent to Duncan to try to access the Approximately 275 900 tonnes of Production continued throughout northern reserves. the year using a combination of both reject materials were deposited at the While the mine was shut down in Duncan reject dump. bord and pillar and Miniwall techniques. late July there was an unplanned Almost all underground production by movement of ground at the high wall. Employment Cornwall Coal from the Fingal Valley Work will restart in late 2008. was concentrated within the Duncan The company employed 88 people Colliery, with a negligible amount from Huntsman No. 2 open cut (including contractors) in the Blackwood 4. The rehabilitation has been operation. This comprised 68 people monitored throughout the year and is employed in underground mining, Duncan Colliery progressing favourably. processing and administration, with a The new widehead continuous further twelve contractors employed in miner with onboard bolting rigs Cullenswood open cut coal transport and eight in open-cut suffered serious problems with its Cullenswood produced coal operations. performance and has been parked since throughout the period using January 2008. The Miniwall system was contractors to remove overburden and Capital expenditure installed for only one block at Duncan stockpile the coal on site prior to A total of $1.5 million was spent to Colliery but had mixed fortunes, with transport to the Fingal washery. The start Blackwood No. 4 mine, with a poor roof control being the main Cullenswood reserve is being used to further $1.0 million being spent up until problem. The machine was removed to augment the supply from Duncan and is the end of June 2008 developing the surface and its future is uncertain. blended to satisfy customer quality portals. An attempt was made to access requirements. reserves to the north of the old Rehabilitation workings but failed due to an Kimbolton Coal Rehabilitation at the Huntsman and impassable dyke. Duncan is nearing the The difficulties associated with the Blackwood 2 and 3 areas continued to end of its economic life but due to the raw product from Kimbolton have delays in starting Blackwood 4 the mine precluded its use at any of our be monitored throughout the year. will be producing from areas of low customers without the need for Other yield to extend its life until the end of benefaction of the raw coal at the 2010. Fingal washery. The distance between The instability in regard to transport the Fingal and Kimbolton sites renders distribution from the Fingal Washery Blackwood Colliery No. 3 the transport of the raw product, site is still a cause for serious concern The rehabilitation has been together with the cost of production, to the company. monitored throughout the year and is uneconomic unless combined with a The Department of Justice progressing. backloading arrangement. conducted an audit of the underground Blackwood Colliery No. 4 entry Production and washery operations. Electrical distribution services were Production of raw coal for Cornwall Coal was host to the installed and commissioned together 2007/2008 totalled 725 490 tonnes. annual Tasmanian Mines Rescue with air and water supplies. Mining This coal was sourced from the Competition. Seven teams competed in started in December 2007 and Duncan (430 100 tonnes), this years event. Cornwall Coal was immediately hit problems, with the fan Cullenswood (200 500 tonnes), the overall winner and Leigh Spilsbury drift striking a fault after some twenty Blackwood 4 (4600 tonnes) and was awarded Best Captain for the fifth metres and other faults being found as Kimbolton (90 200 tonnes) mines. year in a row.
Mineral Resources Tasmania Annual Review 2007/2008 49 Construction Materials
BIS Industrial Logistics Boral Resources (Tasmania) The business has been experiencing Limited difficulties complying with the new During the 2007/2008 financial year DIER specification for Polished BIS Industrial Logistics operated five Boral Resources operates hard-rock Aggregate Friction Values (PAFV). DIER mining leases at Launceston, Ridgley, quarries at Bridgewater, Launceston, has increased the specification for East Devonport and St Helens. In late Flowery Gully and Nook, and a sand PAFV from 45 in 2006, to 48 in 2007, June 2008 BIS acquired an additional operation at South Arm. The company and 53 in 2008. eleven mining leases associated with employs a total of 25 personnel. Fieldwicks Pty Ltd. Environmental Management Plans During the 2007/2008 financial year (EMP) were completed for two of the The Launceston BIS operation Boral experienced strong demand for four operations, with revisions to the incorporates four open-cut quarries, concrete sand and aggregates, with the remaining EMPs currently in progress. which have been operational since the road base market improving in Rehabilitation is underway at a number late 1970s. The main office and quarry northern Tasmania over previous years of redundant operations around are located at Western Junction, with a number of road projects under Tasmania. approximately twelve kilometres south construction. The market in southern of Launceston. The Ridgley quarry, Tasmania remained slow. located approximately fifteen Production for the year exceeded Dennis Fieldwicks Pty Ltd kilometres south of Burnie, has been one million tonnes of material, one Dennis Fieldwicks Pty Ltd operates a operating since 1988. BIS utilises fixed third of which was concrete aggregates, variety of quarries across the and portable crushing equipment to asphalt and spray seal markets, 8% northwest and east coast of Tasmania, produce pavement, screened sealing sand, and the remainder road base employing 20 people within the and drainage materials from basalt, products. operations. During the 2007/2008 dolerite and quartzite. All quarries have extensive reserves reporting period, 25 000 tonnes of A total of eighteen employees and based on current demand levels. The concrete products and 57 500 tonnes contractors were employed by BIS construction of a haul road at the of road gravel were produced. Industrial Logistics during the past year, Launceston quarry to enable access to Approximately 100 m3 of material was including administration staff, full and additional reserves has commenced, stripped as waste across the leases. part-time operators and with extraction of the additional Rehabilitation works have been sub-contractors. With the addition of reserves expected to commence in completed within three mining leases. the new operations, employee numbers 2009. Realignment of the haul road at Compacted ground has been ripped, have increased to 43. Nook is also being undertaken. pre-stripped top/subsoil re-spread, Crushing production figures for all The Tasmanian Government has water runoff controls installed and five sites during the 2007/2008 financial expressed interest in acquiring land at weed control undertaken. It is year totalled 585 000 tonnes, the Bridgewater quarry (currently used anticipated the formal surrender of comprising 561 000 tonnes of basalt, as buffer) for the construction of the these mining leases will be undertaken 15 000 tonnes of dolerite and 9000 Brighton Transport Hub. While a final shortly. tonnes of quartzite. A combined total decision is yet to be reached, of 40 000 m3 was removed as encroachment of any type within the Duggans Pty Ltd overburden at the two basalt buffer area represents a significant risk operations. to the security of the quarry reserve. Duggans Pty Ltd operates six mining leases and precast concrete production Ongoing progressive rehabilitation During the year the Launceston primary crusher was upgraded to factories at Cradoc in the Huon Valley continued across all BIS sites, with and at Launceston. Approximately sixty major improvements in reducing accommodate hard dolerite stone. The new crusher has reduced the staff are employed across the airborne dust from fixed plant from operations. Production of raw changes to operational procedures and downtime and maintenance associated with the old crusher. A new tertiary materials totalled 93 500 tonnes, updated dust suppression equipment consisting of 64 000 tonnes of road and practices. crusher was installed at the Bridgewater quarry to enable better materials, 27 000 tonnes of BIS Industrial Logistics maintained management of fines production for construction materials and 2500 tonnes tri-certification to AS9001, AS4801 and concrete, asphalt and road base of construction sand. ISO14001 during the year. This products. A new 966 loader was Major projects completed or certification incorporates compliance acquired for the Flowery Gully quarry progressed during the reporting period to Department of Infrastructure, during the year, and the purchase of a included the Barretta waste transfer Energy and Resources specifications similar loader for Launceston is station at Kingston, various subdivision and Australian Standards for pavement proposed in the coming year. developments at Huonville, Cygnet and materials and aggregates, and Australian The dust suppression measures at Franklin, precast projects for Standards for occupational health and the Bridgewater quarry are being Centrelink, the Mt St Canice safety and environmental compliance. upgraded, with a dust extraction unit development, Kingston Plaza and the At the end of June 2008 the BIS being being installed on the quarry Tasmanian Hockey Centre. Industrial Logistics quarry operations screen house in an effort to reduce the A new J35 Jaques Gyracone crusher exceeded 13 years since the last Lost amount of dust being emitted to the has been purchased for the Cradoc Time Injury (LTI), with the Ridgley atmosphere. Dust captured by this unit quarry at an estimated cost of quarry operation achieving 14 years will be recycled back into the silos for $450,000. The new crusher is expected since the last LTI. use in road base products. to be fully operational by December Mineral Resources Tasmania Annual Review 2007/2008 50
2008. Transition points have also been reclaimed from the settlement dam, road activities) and forest management installed in crushing plants. enabling the dam to be re-used. system is certified compliant with the An application was lodged for the Future sources of dune sand will Australian Forestry Standard. All transfer of an existing mining lease include re-working of old areas. forestry activities, including quarrying from a local council to Duggans. This Because of lower processing rates this and road works, are subject to annual sand lease was successfully transferred resource is expected to last for five to independent third party audits. in July 2008. seven years. Coarse sand reserves are expected to maintain supply for the No waste materials were stripped Hanson Construction next ten to twenty years. or extracted during the year. Recycling Materials Pty Ltd of concrete waste has continued and The road transport fleet was maintenance has been undertaken on updated during the year, with the Hanson Construction Materials has site sediment ponds. purchase of one new and one fifteen full-time and one part-time second-hand loader. A new screening employees at their operations in plant is currently being sourced. Hobart, Calder and Potato Hill (George Town). During the 2007/2008 Fieldwicks Pty Ltd Rehabilitation works at the South reporting period 150 000 tonnes of Arm lease are continuing in line with During late June 2008 eleven of the aggregates, 152 000 tonnes of road the site’s Environmental Management twelve mining leases held by Fieldwicks materials and 73 000 tonnes of sand Plan. The dunes on the southeastern Pty Ltd were acquired by BIS Industrial were produced across the three side of the property have been Logistics. Twenty personnel were operations. employed by Fieldwicks Pty Ltd at the re-contoured and seeded with Acacia end of June. sophorae, Acacia floribunda and A Development Proposal and Myoporum insulare. Transplanting to the Environmental Management Plan has Production for the year totalled foot of the dune is also continuing. been drafted for the proposed 25 000 tonnes of concrete products extension to the Hobart quarry. This and 58 000 tonnes of road gravel. plan has been a high priority as access Rehabilitation works were Gunns Forest Products P/L to quarry reserves has become limited. completed within three mining leases, Gunns Forest Products Pty Ltd The Shoreline Drive project is nearing with the intention to surrender these manages and operates around 50 completion. Demand for high PAFV leases in the near future. Rehabilitation licensed quarries across Tasmania, values at the Hobart quarry has lead to works have included ripping compacted providing road construction and an internal capital application for a ground, re-spreading stripped maintenance materials for crusher upgrade. materials, weed control and installing approximately 6000 kilometres of Rehabilitation works have continued runoff controls. forest road. New construction of in all areas of the Hobart quarry, with gravelled forest roads in 2007/2008 contractors engaged to eliminate FR & CM Lazenby and Son totalled 121 kilometres. The total pampas grass. Overburden stripping direct cost of the road construction has been stockpiled for future The FR & CM Lazenby and Son sand and maintenance programs for the year rehabilitation work within the Hobart extraction operation at South Arm was over $10 million. quarry, while the Calder rehabilitation employed the equivalent of four Quarrying and road construction plan has also been completed with full-time and one part-time personnel were performed by contractors under southwestern pits one and two 80% during the 2007/2008 financial year. the supervision of company staff. In the rehabilitated, while the west central pit Production during this period totalled peak of the construction period, rehabilitation is complete. 12 600 tonnes. Considerable reserves approximately 60 people were engaged are estimated within the two mining in quarrying and road work, reducing leases. to approximately 20 people during the HBMI Pty Ltd No waste materials were produced winter months when most activity was Hobart Blue Metal Industries (HBMI) during the reporting period, with 0.5 road maintenance. operates a dolerite quarry at Leslie hectare of rehabilitation works being Eight full-time staff are currently Vale, fourteen kilometres south of undertaken. employed in quarrying works. During Hobart. The company has fourteen the 2007/2008 financial year permanent employees in production, approximately 107 000 tonnes of two with the mobile equipment, and GL & DH Males Pty Ltd material was mined and removed from three in the weighbridge and support GL & DH Males operates a sand pit licensed quarries. staff. A further 30 people are employed as subcontractors for material at South Arm and a retail operation in All licensed quarries are subject to deliveries, drill and blast activities, and South Hobart, employing three the provisions of a management plan maintenance as required. full-time and seven casual staff. which includes a requirement to Production from the South Arm progressively rehabilitate and restore Production for the year totalled mining lease consisted of 88 000 mined-out sections of quarries, 740 000 tonnes, comprising 680 000 tonnes of concrete sand, 15 000 tonnes including ongoing remodelling of tonnes of road base material, 50 000 of coarse (washed) sand, 3000 tonnes benches and housekeeping to clean tonnes of concrete and asphalt of horticultural sand, 2000 tonnes of sumps and drains. aggregate, and 10 000 tonnes for bedding sand and 1000 tonnes of sandy Gunns Forest Products Pty Ltd has a landscaping. loam. Approximately 500 tonnes of top certified Environmental Management Stripping has been prioritised over sandy soil were stripped from the System compliant with ISO 14001. In the past twelve months, with coarse sand pit during extraction, with addition the company’s forestry approximately 10 000 cubic metres about 500 tonnes of silt being operations (including quarrying and extracted. This will provide enough Mineral Resources Tasmania Annual Review 2007/2008 51 open area for the next fifteen years of Management Plan review has been at their sand extraction sites at South extraction. submitted and approved by the Arm, George Town and Llanherne. Major projects supplied over this Environment Division, while Production from these sites consisted period were the Harvey Norman compliance with the Environmental of 125 000 tonnes of building sand and Home Makers Centre at Cambridge, Protection Notice (EPN) was 150 tonnes of bedding sand. maintained. Esperance Road, Holyman Drive and Extraction activities at the Hope numerous subdivisions. Production at Kimberleys Road Beach sand pit at South Arm were Over $2.5 million dollars have been consisted of 65 000 tonnes of aggregate completed, with operations transferred invested in upgrading the secondary and 28 000 tonnes of base course to the Llanherne site from May 2008. crushing operation. An MVP 450 cone material. Compliance with the Capital expenditure on the new Environment Division’s EPN also crusher, 20 ´ 8 three-deck screen, bag Llanherne operation exceeded continued. Plant safety upgrades and house and overhead gantry crane have $580,000. been installed. These have all been process improvements continued into installed in one building with the aim of 2008. A level two application, under the minimising dust and noise emissions, as Environmental Management and Pollution well as providing for ease of Norske Skog Boyer Control Act 1994, was granted for the maintenance. Potato Hill operation at George Town. Norske Skog operates quarries This resource was purchased by primarily to maintain State forest and Hanson Construction Materials in April Industrial Sands & private roads used for timber 2008. Silica Pty Ltd harvesting and transport to supply its Boyer paper mill. During the year This company operates quarries at approximately twelve kilometres of Stornoway Quarries Pty Ltd Marshalls Creek (Port Sorell) and new forestry roads were built, with Stornoway operates two quarries at Northdown in northern Tasmania. upgrades and maintenance undertaken Two people are employed. Production on existing roads. Raeburn and Birralee, in northern from the quarries totalled 6100 cubic Tasmania. The operations produced Production for the year consisted of metres of road gravel, 6300 tonnes of 230 000 tonnes of structural fill and 36 000 tonnes of raw, crushed and silica, and 1180 tonnes of shingle sand. road and pavement materials, mainly screened material. The majority of for council and forestry operations. material is won by dozer/excavator, There were three full-time and one with only one drill blast being Island Resources Pty Ltd part-time employees during the year. undertaken during the past year. Island Resources employs four Minimal drill/blast is expected in the full-time individuals and two to three future. Norske Skog out-source labour contractors at four quarries in Treloar Transport and machinery in the operation of their northeast Tasmania. Employees carry quarries, with one full time Norske Treloar Transport Company out tasks such as screening, washing Skog employee supervising contractors. operates the Shackley Hill quarry at and blending of sands, and operating Sheffield, employing four full-time staff the drying plant. Contractors are Due to the variation in demand for quarried material (based on the and a contract driller and shot-firer. employed to cart products back to the Production for the twelve month main lease for processing. location of new roads required for harvesting operations and road period totalled 155 000 tonnes of Production from all four operations maintenance, a function of the location material, with sales comprising 60 000 included 47 000 tonnes of general sand, of harvesting operations and transport tonnes of sub-base material, 60 000 26 000 tonnes of concrete sand, routes and weather) it is anticipated tonnes of base course, 10 000 tonnes 21 000 tonnes of dried sand and that demand in future years will be of pit-run gravel and 20 000 tonnes of 19 000 tonnes of road gravel. similar to current levels, but will other products. Resource investigations across Island reduce slightly over time. Reserves in Major projects completed or in Resources leases have conservatively the existing quarries are unknown but progress during the year have included estimated reserves of raw materials to should be sufficient for the next decade production of base course and be in excess of 30 million tonnes. of operations. sub-base gravel for the Bass Highway Approximately one hectare of duplication at Ulverstone. Main capital Lloyds North topsoil and waste materials has been expenditure included an upgrade of the stripped and stockpiled during routine crusher, including improvements to the Lloyds North employs ten people at extraction during the year. the Kimberleys Road and Riggs Road secondary crusher to increase Rehabilitation works on one quarry site throughput. quarries near Ulverstone. have been completed and are awaiting Production from the Riggs Road clearance by Mineral Resources A safety audit was completed for the quarry totalled 909 000 tonnes of Tasmania. quarry operations and the basalt. The oversize rock reduction recommendations are now being program and excavator replacement implemented. Acidic drainage produced continued into 2008. Revision of the RNB Trading Pty Ltd through the oxidation of pyrite existing mining plan is currently being During the 2007/2008 financial year continues to be treated with crushed undertaken. The Environmental RNB Trading employed eight personnel limestone and settling ponds.
Mineral Resources Tasmania Annual Review 2007/2008 52 Mineral Processing Operations
Cement Australia Holdings advanced stage of completion. Stage 3 roaster shutdown ($2.8 million), Pty Ltd discharge water treatment is in design automated skimming on the casting stages and is expected to be completed lines ($2.2 million), and a stormwater A total of 150 people are employed in late 2009. retention pond ($2.1 million). Capital full time at the mine and cement plant Annual weed control programs investments during 2008 have included at Railton. Production of cement included slashing and spraying declared the successful planned shutdown of the clinker from the plant kiln totalled weeds. Monthly groundwater bore roaster and acid plant, the design of a 1.115 million tonnes. This clinker was checks and water quality testing were precipitator to eliminate the visible tail used to produce 1.26 million tonnes of ongoing throughout the year. gas stack plume, and automated cement, 1.1 million tonnes of which skimming on casting lines. was shipped to Victoria and New South Wales via the Port of Devonport. Nyrstar Hobart Pty Ltd Safety Of the remaining production, 132 579 tonnes was utilised in the local Nyrstar Hobart has a workforce of At the end of 2007 the 12-month Tasmanian bulk and bag markets. Total 506 employees and 91 contractors in rolling average Lost Time Injury dispatches from the Railton factory its zinc smelter on the western bank of Frequency Rate (LTIFR) was 4.1. were 1 242 744 tonnes. the River Derwent at Risdon. Production for the year consisted of Environmental Major projects and new 247 000 tonnes of zinc and 399 647 developments tonnes of sulphuric acid. Key environmental initiatives Further expansion of the Northern completed in 2007 included installation Reserves/Resources Cutback and the Western Cutback is of additional stormwater retention planned for the 2008/2009 financial Nyrstar source the majority of its capacity and finalising arrangements for year. Completion of stage two and concentrate requirements from within the treatment and disposal of mercury further progress on stage three of the Australia, predominantly from the OZ contaminated wastes. Significant Site Water Management Plan is Minerals Century and Rosebery mines. progress has also been made with expected during 2008/2009. Nyrstar Hobart is also focussed on planned environmental projects sourcing a higher percentage of addressing historical groundwater and Capital expenditure secondary zinc oxides to increase by-product stockpiles and Capital expenditure for the flexibility of feed to the site. contaminated waste issues. 2007/2008 period totalled $15.183 million. Projects underway or Major projects and new commissioned during the period developments Rio Tinto Alcan — include: Measures are being pursued to Bell Bay ! The high viscosity fuel plant, increase production volumes during the commissioned in February 2008 at a remainder of 2008. Knowledge sharing The Bell Bay aluminium smelter cost of $3.5 million. across Nyrstar has allowed a targeted directly employs a total of 574 ! technical and engineering focus on the individuals and 56 contractors. Kiln precipitator replacement with a production process. Implementation of bag filter, to be commissioned in the Production during the 2007/2008 new equipment and process financial year totalled 179 207 tonnes. first quarter 2009 at a cost of modifications developed in-house have $19.2 million. resulted in a substantial improvement Environmental ! Advanced mine dewatering, at a cost of the recovery rate from 91.4% in the of $1.3 million. second half of 2007 to 94.5% in the Numerous pollution control ! Spent Cell Liner project, at a cost of first six months of 2008, without the initiatives were introduced, including $3.13 million, to burn waste need for substantial investment, eliminating the use of chlorine from the refractory lining from the Bell Bay allowing for increased zinc production site, utilisation of real-time fugitive aluminum refinery. from the same level of concentrate hydrogen fluoride monitoring, input. This was achieved at a capital undertaking an energy efficiency Environmental cost of less than $0.5 million, a opportunity assessment, and water Rehabilitation of the new mine substantial saving on the previously management plan and site water continued, with the batters on the indicated capital cost of $35 million balance. southeast waste dump pushed down to allocated to implement the goethite 55–70 mRL. A total of 3305 cubic process and improve the recovery rate Major projects and new metres of topsoil derived from the to 96%. developments North Cutback and Magazine Buttress Total capital expenditure for the areas was stripped and stockpiled for Capital expenditure future rehabilitation. Work on the Site Operating costs in the first half of year totalled $20.85 million. Induction Water Management Plan continued 2008 reduced by 6% compared to the furnace upgrades were made during the during the 2007/2008 period. Stage one second half of 2007, predominantly as a year. The use of spent cell lining, a of the plan involved lining over two result of a new ten-year electricity waste product from the smelting kilometres of Browns Creek drain to contract which came into effect on process, has been successfully trialed as improve water quality and was 1 January 2008. Major capital an input material in the manufacture of completed in late 2007. expenditure in 2007 included the cement at the Cement Australia site at Stage 2 groundwater bores are at an deferred expenditure for the No. 5 Railton. Mineral Resources Tasmania Annual Review 2007/2008 53 Tasmanian Electro sinter. Nominal capacity based on the financial year totalled 216 000 tonnes, 2007 product mix is 128 000 tonnes of of which 120 000 tonnes was Metallurgical Co. Pty Ltd high-carbon ferromanganese, 126 000 phosphate rock. (TEMCO) tonnes of silicomanganese and 336 000 tonnes of manganese sinter per annum. A review is currently being This company operates an undertaken on grinding and process electro-metallurgical smelter making change to an ‘In Line’ production ferro-alloys at Bell Bay, the only Impact Fertilisers Pty Ltd system. Rehabilitation initiatives manganese ferro-alloy plant in This company employs 151 full-time included removal and recycling of pond Australia. Four electric-arc furnaces employees and 20 part-time sludge, improving drainage, and and a sinter plant produce high-carbon contractors. Production of fertilisers at improving storage and covering of rock ferromanganese, silicomanganese and the Risdon plant for the 2007/2008 heaps.
ANNUAL REPORT Rehabilitation of Mining Lands Trust Fund
Mineral Resources Tasmania to restrict public access. ! Weed control and repairs to an administers the Rehabilitation of Expenditure totalled $21,300. erosion gully were carried out at the Abandoned Mining Lands Trust Fund Other minor safety work Endurance mine at Gladstone. which is used to carry out encompassed: Expenditure totalled $2,000. rehabilitation of abandoned mining ! ! lands in Tasmania. The Trust was A safety barrier was constructed Stage one of a site clean-up was established following the proclamation between a vehicle track and high undertaken at an abandoned gold of the Mineral Resources Development quarry face within the Cameron mine camp within the Den Reserve Act 1995. The State agreed with the Reserve at Gladstone. near Pipers River. Expenditure mining and quarrying industries to use ! A collapsed mine shaft was backfilled totalled $2,700. part of mining royalty raised by the Act at Royal George. ! Groundwater monitoring wells were for the rehabilitation of Crown land Expenditure totalled $1,800. installed into a tailings dam at the affected by historic mining disturbance. Cleveland mine at Luina. Mine site rehabilitation Approximately $170,050 was spent Expenditure totalled $2,900. from the fund during the past year, ! Revegetation work was carried out ! with the major program being mine on area of approximately three A damaged diversion drain was shaft capping at Pipers River in hectares at Storys Creek. This area repaired at the Oonah mine at northeast Tasmania. comprised a former precipitate dam Zeehan. Expenditure totalled site and obsolete haul road. The $1,200. Shaft safety program incorporated test plots for ! ! Water quality monitoring was A program to address safety risks varying revegetation treatment undertaken at Websters Creek near methods and rare species trial plots posed by abandoned mine shafts on Waratah. Expenditure totalled $500. a section of the Den Goldfield at set up by the Royal Tasmanian Pipers River was undertaken during Botanical Gardens. Expenditure the year. Fifteen open mine shafts totalled $25,500. Quarry rehabilitation were capped with concrete panels. ! Improvements were made to an Revegetation maintenance, Expenditure totalled $59,600. existing anoxic limestone drain encompassing weed control and ! A three-year program of shaft system designed to improve water revegetation monitoring, continued at capping and fencing was completed quality at Storys Creek. Expenditure Punchs Terror quarry at Dunorlan and at Lefroy. Expenditure totalled totalled $3,200. The Badgers quarries near Sheffield. $5,000. ! Revegetation work was carried out Expenditure totalled $1,600. ! Grating was constructed to cover an on approximately three hectares at historic water race shaft at Waratah. the Argonaut mine at St Helens. Queensberry Track gorse Expenditure totalled $10,000. Expenditure totalled $20,550. control ! Grating was fitted to an adit adjacent ! Site investigations continued on An on-going program of weed to Warrentinna Road near historic tailings at Royal George, control at the abandoned Queensberry Branxholm. A locked boom gate was including land survey and drainage mine, managed by the Parks and installed on the access track to the design. Expenditure totalled Wildlife Service, again received funding. nearby Golden Mara mine workings $10,200. Expenditure totalled $2,000.
Mineral Resources Tasmania Annual Review 2007/2008