Print post approved PP 665002/00062 December –February 2011$3 WESTERN AUSTRALIA’S INTERNATIONAL RESOURCESDEVELOPMENT MAGAZINE Western Australia’s resources sectorsurgesahead demand Extraordinary (inc GST) DEPARTMENT OF STATE DEVELOPMENT International Trade and Investment 1 Adelaide Terrace East Perth, Western Australia 6004 Tel: +61 8 9222 0566 • Fax: +61 8 9222 6151 Email: [email protected] www.dsd.wa.gov.au

INTERNATIONAL OFFICES Europe European Office • 5th floor, Australia Centre Corner of Strand and Melbourne Place London WC2B 4LG • UNITED KINGDOM Tel: +44 20 7240 2881 • Fax: +44 20 7240 6637 Email: [email protected]

India — Mumbai An optimistic future Western Australian Trade Office This year has seen huge investment in Western Australia’s resources 93 Jolly Maker Chambers No 2 9th floor, Nariman Point • Mumbai 400 021 • INDIA sector with new capital growth in the State totalling more than Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 A$30billion in the 2009-10 financial year. During the same period, Email: [email protected] Western Australia’s exports exceeded A$83billion. Indonesia — Jakarta Western Australia Trade Office Currently, private investment in LNG and natural gas projects, Wisma Budi Building • floor 5 Suite 504 underway, committed or close to commitment, totals more than JI H R Rasuna Said Kav C-6 Kuningan, Jakarta 12940 • INDONESIA A$140billion. Across the whole resources sector, the figure totals Tel: +62 21 5290 2860 • Fax: +62 21 5296 2722 A$176billion. Email: [email protected]

Japan — Tokyo With an A$170billion pipeline of projects underway or likely to get Government of Western Australia, Tokyo Office underway in this State over the next five years, Western Australia is 13th floor, Fukoku Seimei Building establishing itself as a significant investment destination. 2-2-2 Uchisaiwai-cho Chiyoda-ku • TOKYO 100-0011 • JAPAN Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 Massive investment in our resources sector is generating powerful Email: [email protected] economic and employment growth in our State while underpinning our growing importance to the national economy. Japan — Kobe Western Australian Government Office 6th floor, Golden Sun Building • It’s also creating exciting new opportunities for Western Australian 4-3-6 Nakayamate-dori businesses and industries. Chuo-Ku • Kobe 650-0004 • JAPAN Tel: +81 78 242 7705 • Fax: +81 78 242 7707 Email: [email protected] The Western Australian Government welcomes investment in our State and is working to ensure that appropriate industrial Malaysia — Kuala Lumpur infrastructure is available to attract and support investment in WA. Western Australian Trade Office 4th floor, UBN Tower • 10 Jalan P Ramlee KUALA LUMPUR 50250 • MALAYSIA There is currently an enormous amount of activity taking place across Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 the state and, as we sit on the cusp of a multi-billion dollar investment Email: [email protected] cycle in our resources sector, 2011 promises strong future growth for Middle East — Dubai the resources industry in Western Australia. Western Australian Trade Office • Emarat Atrium PO Box 58007 • Dubai • UNITED ARAB EMIRATES Colin Barnett Tel: +971 4 343 3226 • Fax: +971 4 343 3238 Email: [email protected] PREMIER OF WESTERN AUSTRALIA & MINISTER FOR STATE DEVELOPMENT People’s Republic of China — Shanghai Norman Moore Western Australian Trade and Investment Promotion MINISTER FOR MINES AND PETROLEUM Room 2208 • CITIC Square 1168 Nanjing Road West SHANGHAI 20004 • PEOPLES REPUBLIC OF CHINA Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 Email: [email protected]

Prospect People’s Republic of China — Hangzhou Western Australian Prospect magazine is published quarterly by the Western Australian Trade and Investment Promotion Western Australian Government’s Department of Mines and Petroleum (DMP) Hangzhou Representative Office and Department of State Development (DSD). Room 1705 • World Trade Office Plaza Editorial management: Rebecca Atkinson, DSD Communications and Marketing Division. Zhejiang World Trade Centre Tel: (08) 9222 0417 • Fax: (08) 9222 0505 122 Shuguang Road • Hangzhou 310007 PEOPLES REPUBLIC OF CHINA Disclaimer Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 Prospect has been compiled in good faith by the Department of Mines and Petroleum (DMP) and Department of State Development (DSD). Opinions @ expressed in Prospect are those of the authors and do not necessarily represent the views, or have the endorsement of DMP and DSD. DMP and Email: china dsd.wa.gov.au DSD has used all reasonable endeavours to ensure the material contained in this publication is correct, but it is intended to be general in nature. No representation is made with regard to the completeness or accuracy of the information contained herein. DMP and DSD disclaims any or all liability South Korea — Seoul for loss or damage whatsoever suffered or incurred resulting from the use of or reliance on information contained herein. Readers of this publication should make and rely on their own enquiries, research and judgements in making decisions affecting their own or any other persons interest. Western Australian Trade and Investment Office Unit 702 • 7th Floor • Kwanghwamoon Building 211 Sejongno, Jongno-gu Cover photo: Hydrogeology Superintendant Damon Greenhalgh monitoring flow and water Seoul • South Korea 110-730 • KOREA levels into an injection bore at Fortescue Metals Group’s Cloudbreak iron ore mine in Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Western Australia’s Pilbara region. Photo courtesy of Fortescue Metals Group. Email: [email protected] In this issue

02 06 10 © Perth Mint © Perth

14 18 23

02 King Solomon 14 Biggest game in town Forstescue looks to expand mining operations in the Pilbara Western Australia’s growing status in the world LNG industry

06 Vision for the future 18 And the award goes to... WA company Matrix Composites and Engineering Ltd has a Dual recipients in this year’s Golden Gecko awards for clear vision for Australian industry environmental excellence

10 Rising dragon 23 Well positioned Western Australian exports to China set to grow significantly Western Australia’s resources sector surges ahead

Department of Mines and Petroleum Department of Mines and Petroleum Department of State Development Department of State Development www.dmp.wa.gov.au www.dsd.wa.gov.au King Solomon big plans for Fortescue Metals Group

To the west of Fortescue Metal Groups’ Firetail will launch the company’s Ore from the two mines will be loaded Chichester Hub, north of the Karijini operations at Solomon, with the deposit onto the heavy haul rail network direct National Park border and about consisting of high grade bedded ore. to market. Fortescue’s current rail lines 70 kilometres from Tom Price, sits Overall, the Solomon ore body is comprise the fastest, heaviest haul rail the company’s Solomon project – more than 65 kilometres long, making network in the world. a planned 60 million tonnes per it one of the longest iron ore deposits The Solomon Hub is the company’s key annum iron ore project consisting of in the world. to ongoing expansion plans, with the two large open-pit mines and The project will have a big impact on project initially providing 60Mtpa to supporting infrastructure. the Pilbara region, with infrastructure Asian markets. expansions to open access to Solomon Fortescue is looking to expand the The Firetail and Kings mines form Stage and the greater Western Pilbara. company’s mining operations in the One of the project, with a second stage Pilbara through the development “The decision to go ahead with the planned which has identified resources of Solomon’s two mines – Firetail Solomon Hub will enable Fortescue of 1.1billion tonnes of iron ore to date. and Kings. to leverage its existing infrastructure and its massive land holding across Start up production from the second The Firetail and Kings deposits are the Pilbara to exponentially increase stage of Solomon of 20Mtpa is scheduled expected to produce a combined total product sales within key markets of Asia, for 2014, with aspirations to expand the of up to 60 million tonnes per annum Europe and Australia,” Fortescue Chief entire Solomon Hub, stages one and two (Mtpa) of iron ore. Executive Officer Andrew Forrest said. to approximately 160Mtpa by 2017.

2 Ore from Solomon’s two mines will be loaded onto the heavy haul rail network direct to market - Fortescue’s current rail lines comprise the fastest, heaviest haul rail network in the world. Image courtesy of Fortescue.

The second stage of the Solomon project will include a new 250 kilometre railway linking the mines to berths and ship loading facilities at the multi-user deepwater port to be built at Anketell. The Fortescue Board approved plans for the development of the initial stage of the Solomon Hub in late November and, subject to Government approvals, a two year construction period will commence in 2011. “After years of planning for the next phase of development, the depth of management experience and breadth of construction and operational expertise will enable Fortescue to rapidly achieve its growth ambitions within a sector that is underpinned by an extraordinary demand profile,” Mr Forrest said. Fortescue Metals Groups’ three hub strategy.

3 Award winning water project sees FMG treading lightly

In a NASA image showing the top half management is integral to the success yields are very high and far exceed of Western Australia from outer space, of the Cloudbreak operation and to site requirements. a green area can clearly be seen ensuring that the equilibrium of the “We’re using the MAR scheme as reaching out across the central surrounding eco-system is maintained our primary water management tool Pilbara region in stark contrast to well into the future. to bank fresher waters for future use the surrounding landscape. The award-winning water team for the and to maintain ecological This is the Fortescue Marshes, Cloudbreak project are working to do water requirements.” a 100,000 hectare wetland system just that. Mr Youngs said that the scale and stretching 200 kilometres in length complexity of the Cloudbreak MAR and up to 10 kilometres wide. The FMG water team have implemented a Managed Aquifer Recharge (MAR) scheme meant that there are unique The extensive wetlands are considered approach, designed to mitigate the operational requirements, including nationally significant – the area is an an extensive ‘trigger level system’ to environmental impacts of dewatering important breeding site for native bird ensure ecological values are maintained; and process water supply, while populations and is on the National separate water management systems conserving water resources for Wetland Register. for different water types; and future use. long-term design features for On the northern edge of the Fortescue The system has been running future water conveyance. Marsh sits Fortescue Metals Group’s Cloudbreak iron ore mine, one of the successfully for the past two years and, “Mining progress requires substantial largest single iron ore mines in at its current capacity of 25 gigalitres dewatering, greater than the Cloudbreak the world. per year, it is one of the largest and most site requirements of seven gigalitres complex MAR schemes in Australia. per year for ore processing and dust Cloudbreak is part of FMG’s Chichester suppression,” Mr Youngs said. Hub, an A$3.2billion iron ore mine, rail “The scale of the current operation and port development with a 20 year life establishes the Cloudbreak MAR “Currently, our dewatering abstraction span that will include a 90 million tonnes scheme as one of the largest is about 25 gigalitres per year. The per annum iron ore mining project successfully operating schemes of remaining 18 gigalitres is returned at Cloudbreak and Christmas Creek, its kind in Australia, and certainly through injection bores. located in the Chichester Ranges. the largest MAR project for a “Brackish water is injected laterally mining operation,” FMG Principal The Chichester project is serviced by a along the ore body into future mining Hydrogeologist Jed Youngs said. multi-user railway and port facilities at areas, and saline water is injected Port Hedland and is fully contracted to “The system is a first of its kind in a south of the operations into a highly supply to China. variable density groundwater setting permeable calcrete aquifer. Currently operating at 40Mtpa, and it’s located within a complex and “There are a number of drivers for the Cloudbreak mining area will sensitive groundwater environment. injection of the excess dewatering eventually extend over a strike “The Marra Mamba Formation aquifer draw – firstly, the preservation of length of 40 kilometres. contains a lens of fresh to brackish the brackish water resource for ore processing over the life of the mine and, The Cloudbreak mine is hosted by groundwater underlain by a hypersaline secondly, to minimise the drawdown the Marra Mamba Formation aquifer, groundwater system that extends footprint of the dewatering operation, a groundwater system that extends beneath the Fortescue Marsh – particularly toward the Fortescue Marsh beneath the Fortescue Marshes. an internally-draining wetland. where ecological functioning is poorly With 90 per cent of the ore body located “While ninety per cent of the ore body is understood but ecological values are below the water table, effective water below the water table, the dewatering known to be high.

4 A Simplified Schematic of The Cloudbreak Managed Aquifer Recharge (MAR) Scheme

Future open pit Lateral injection of excess Fortescue mining operations Marsh fresh/brackish groundwater along Marsh strike to conserve resource Boundary

CHICHESTER RANGE

Site process/dust Down dip injection of saline suppression groundwater into compatible water usage aquifer to minimise impact Current open pit mining/dewatering operations

RL(m)� 450

400

350

300 SW NE Legend

Alluvium/Colluvium Quaternary Clays Scale Oakover Formation Pumping/ Wittenoom Formation Injection Bores 450m 1km 2km Mineralised Marra Mamba Fresh/Brackish Water Water Table Management Infrastructure Marra Mamba Formation Fresh/Brackish Groundwater System Saline Water 400m Jeerinah Formation Management Infrastructure Saline Groundwater System

Simplified Schematic of the Cloudbreak Managed Aquifer Recharge (MAR) Scheme – Copyright Fortescue Metals Group.

“An important third driver is to address three aquifer injection schemes in size environmental and cultural concerns in the world - with the expected growth associated with the surface discharge in the scheme it may become the largest FMG’s Cloudbreak Managed of excess water – prolonged discharge such project in the world within a Aquifer Recharge (MAR) Scheme in an area which is dry most of the year few years. is large and complex. The may lead to local vegetation and fauna scheme currently includes: becoming dependent, and surface The project has garnered the attention • over 200 abstraction bores discharge is also discouraged by the of the water industry and was recently (60 operational at any time) traditional owners of the project area, recognised as a significant and the Nyiyaparli people. innovative infrastructure project by the • ten in-pit sumps industry when it received the prestigious “Most of the water Cloudbreak pumps ‘Infrastructure Innovation Award’ • 200 kilometres of pipeline out goes back into the aquifer and the at this year’s WA Water Awards. • six major transfer or system works to keep salty water away settlement ponds from other water.” The awards are supported by the Department of Water and the Water • 100 brackish injection bores Mr Youngs said dewatering for the Corporation and category award (50 operational, others for Cloudbreak project would increase and winners automatically progress as future use) is expected to reach about 50 gigalitres national finalists in the Australian per year, 80 per cent of which will • 20 saline injection bores. Water Association (AWA) Awards. be reinjected. The current scheme represents The AWA awards have been running “The Cloudbreak scheme showcases the initial stage of an expanded for almost 50 years and it’s not often how MAR can be used to meet a range Chichester wide scheme that of objectives in a complex environment,” a mining company has landed among will expand water management Mr Youngs said. the finalists. capacity to greater than 50 gigalitres per year. “The MAR scheme is an ideal water For Fortescue Metals Group, it’s an management tool for the Pilbara region, achievement to be proud of. The scheme is based on a which is characterised by high-yielding “Under the MAR scheme, we inject successful approach of and often fresh aquifers, low rainfall, saline water to look after Fortescue injection, storage, impact and a proliferation of major mining Marsh, inject fresher water for future minimisation and multi-water developments below the water table. use, and in general return the water quality stream management. “However, the system has application for to where it came from to keep the The MAR scheme is a temporary many environments and is likely to be environmental footprint of the project water management system used increasingly at mine sites around as small as possible,” Mr Youngs said. which will be dismantled and the world facing varied and difficult rehabilitated on completion “The project is about looking after the water management challenges.” of mining. environment up there while we keep Mr Youngs said the Cloudbreak MAR the pits dry, and making sure we’re scheme was now one of the top two or unchanging the landscape.”

5 Matrix: a clear vision for Australian industry

The success of the company selected technologies and products for the Mr Begley said the advanced testing as the winner of Western Australia’s petroleum sector. capacity is a strong advantage and 2010 Large Advanced Manufacturer quality accreditation is essential, Export Award - Matrix Composites As well as the modules, Matrix produces for success in an industry, where and Engineering Ltd – is built on a a wide range of standard and custom built equipment failure can have clear vision of future opportunities products to support marine drilling, and disastrous consequences in for Australian industry in the floating and subsea oil and gas production. human and environmental terms, petroleum sector. as well as financially. The company employs more than At the company facility in Malaga, a 400 people across seven facilities The Matrix Composite and Engineering metropolitan industrial area, Chief throughout the metropolitan area group includes three operating Executive Officer Aaron Begley examines and generates a steady stream of subsidiaries: Matrix, Begley a newly produced marine riser buoyancy truck movements, most destined for International which has extensive heavy module, a pale blue, foam half cylinder, Fremantle Port with nearly 80 per cent oilfield engineering capabilities and 1.4 metres wide and 4.5 meters long. Torque Engineering which specialises in of its production being exported. offshore winch and reeler construction. “These are the best in the market,” Mr Begley says the company has built its he says. Mr Begley said the growing dominance reputation for innovation and reliability of advanced materials manufacturing in His confidence is justified, not only by in the deepwater buoyancy market over the group’s operations, is a reflection of Matrix’s growing share of the market more than a decade since its foundation a changing market. for buoyancy equipment for deep sea in 1999. petroleum exploration and production, “Our heavy engineering operations, but also by the results of the company’s However, over the past three years, which began in 1980, have to transform rigorous testing that ensures the demand for Matrix equipment has from manufacturing and fabrication, to reliability of its products against seen the company’s export earnings highly skilled and mobile engineering high industry standards. more than quadruple, and Mr Begley service providers,” he said. The modules are made of syntactic foam estimates the company now supplies “They still produce high quality with a composite shell; the materials, about 40 per cent of a global market for equipment and components for the the design and the production process new build buoyancy equipment worth petroleum and mining sectors, but have been developed by the company’s A$400- $500 million annually. increasingly we can’t compete on engineers and industrial chemists. price with suppliers in Asia.” Matrix-produced equipment is used They will be shipped globally, to encase throughout Asia and Oceania, in the Gulf “On the other hand, our buoyancy the steel risers that contain drill strings of Mexico and increasingly in waters off modules are shipped to Asian through the kilometres of seawater Brazil and West Africa. engineering yards and included as between vessels on the surface to a part of equipment destined for use drill site on the sea bed. He said a major investment in testing around the world.” equipment, building the largest “At these depths, kilometres below the “This is the challenge facing Australian hydrostatic testing facility in the surface, the pressure is enormous and engineering firms – having high standard Asia Pacific region, which included a that length of risers can weigh up to production processes is not enough, we 4000 tonnes,” Mr Begley said. chamber 6.5 metres long and capable need to use our skills and experience of duplicating pressures experienced differently, either developing unique “To support this massive weight and in water three kilometres deep, was and better products, or providing mobile withstand extreme conditions, our critical to this growth. repair and maintenance services to modules have to be light, but strong.” operators throughout the region.” One in every 20 buoyancy modules The company’s computer-controlled, Matrix produces is tested against the Mr Begley is confident about the future automated facilities operate 24 hours, for Matrix. The company is close seven days per week, each month conditions in which it will operate. to completing construction of, and generating production worth more In addition, the company’s systems opening a new A$60 million first stage than A$13 million. and processes have Quality Assurance of a purpose built, 20,000 square metre A substantial investment in research accreditation ISO 9001:2008 (SAI Global) manufacturing facility at the Australian and development has produced a wide and Matrix is seeking Q1 accreditation Marine Complex at Henderson, south range of new and better materials, from the American Petroleum Institute. of Perth.

6 “The new facility will allow us to double our output and consolidate five operating sites into one, it will also include a testing facility with an even bigger pressure chamber,” he said. “The AMC is a fantastic location, we’ll be the only deepwater buoyancy manufacturer with a dockside facility and there is a substantial cluster of subsea technology and petroleum logistics operations, so we’ll get great exposure.” “From here, we will be well placed to service the increase we expect to see in local activity and markets in Asia, Oceania and West Africa which we expect to become increasingly significant.” “In the longer term, as sales to customers in the strongly expanding deepwater activity off Brazil grow, we may need to develop some offshore production facilities.” Equipping Matrix’s new facilities has also given Mr Begley stronger confidence about the future of Australian industry. “We looked for the best technology available from the automotive, aerospace and chemical processing sectors and I’m pleased that between 80 and 90 per cent of the equipment we chose was made in Australia,” he said.

Western Australian company Matrix Composites and Engineering Ltd specialise in buoyancy equipment for deep sea petroleum exploration and production.

7 Building links with the Lion City

With Western Australia sitting on the of Singaporean professionals and particularly active role in the Western cusp of a multi-billion dollar investment business leaders have studied in WA Australian hotel industry, owning the cycle, particularly in iron ore and and our universities maintain strong Ibis, Mercure, Somerset, Sheraton and increasingly in natural gas, now is the education and research links. Duxton Hotels in Perth. time to be spruiking our wares and “Singapore is also our second largest In turn, Western Australian businesses ensuring win-win scenarios for source of international visitors and are active in Singapore and Western the future. an important investor in tourist Australian companies operating there In close proximity to each other and accommodation. include Strategic Marine Pty Ltd, ICON Engineering, Phosphate Resources Ltd, sharing the same time zone, Singapore “We have opportunities to strengthen Crossecom Pty Ltd and Wellard Group. and Western Australia have always these relationships and develop new enjoyed a strong bond and both states partnerships,” he said. Annual trade between Western Australia have enjoyed strong economic growth and Singapore is worth more than Western Australia’s relationship with in recent years. A$5billion. Singapore is based on trade, investment, In October, Western Australian Premier and Minister for State Development, Colin Barnett, travelled “Singapore and Western Australia are naturally to the island nation at the invitation of Singaporean Minister for Foreign Affairs complementary. Western Australia is a world-scale George Yeo, to encourage investment resources economy with enormous potential for growth, in Western Australia. while Singapore, one of Asia’s best performing economies The Premier said his focus for the trip and a major global trading centre, is rapidly expanding its was to transform the bond Western Australia shares with the Lion City into role as an investment centre,” the Premier said. a “new and special relationship”. “Singapore and Western Australia are naturally complementary. Western education and personal connections – While in Singapore, Mr Barnett visited Australia is a world-scale resources more Singapore residents of Australia Singapore’s President Sellapan economy with enormous potential for are based in Western Australia than Ramanathan, Deputy Prime Minister growth, while Singapore, one of Asia’s any other State. Teo Chee Hean, and other key government ministers. best performing economies and a Singaporean companies make a major global trading centre, is rapidly substantial contribution to the Western He also addressed investment and expanding its role as an investment Australian business community. industry leaders at functions hosted by centre,” the Premier said. the Australian Trade Commission and Prominent companies include Kim Heng the Singapore Business federation, and “Western Australia is home to Group, Quaff Ltd, and Stamford Land inspected Singapore’s new waterfront 30 per cent of Singapore born Corporation, and Singaporeans have a Australian residents, many thousands development ‘Gardens by the Bay’, which

8 Premier Colin Barnett travelled to Singapore to encourage investment in Western Australia and transform the bond between the two states into a “new and special relationship”.

provided an opportunity to discuss urban the production of urea and there’s the planning initiatives with senior officials. possibility of Chinese steel mills setting up steel-making plants at Oakajee. Raising investor awareness of opportunities to participate in Western “A growing number of international Australia’s strong economic future, investment brokerage companies are particularly in the resources sector, establishing a presence in Singapore,

“Western Australia is home to 30 per cent of Singapore born Australian residents, many thousands of Singaporean professionals and business leaders have studied in WA and our universities maintain strong education and research links.” remained the key focus of the while in their own right, Singaporean Premier’s Singapore visit and he businesses and government bodies hold took the opportunity to promote the overseas investments with a net worth of creation of industrial precincts in WA. almost A$500billion,” the Premier said. “We have been striving to create world- “As a small island city state, Singapore class industrial precincts in Western is strategically linked in terms of land Australia to encourage international and sea hubs. customers to set up manufacturing and “There is a fantastic opportunity here While in Singapore, Premier Colin Barnett processing plants in the state,” he said. for both our economies to benefit from appeared on the CNBC program “Squawk Box”. “There are signs that this is starting to closer economic ties.” happen – we’re seeing it from India in

9 Rising dragon Chinese demand for WA resources

While China’s rapid economic “China is very conscious of the need to over incredibly rugged country, to development will continue to drive improve air quality in its cities,” he said. source natural gas from Turkmenistan, demand for energy and minerals Uzbekistan, Kazakhstan and Russia.” “This means LNG import volumes will at unprecedented levels, Western increase as existing receival terminals Ms Fitzgerald said that this Australian resource industries will face in Shenzhen, Fujian and Shanghai are diversification of supply also increasing competition for their share expanded, and joined by another five included participating in new of this growth. currently under construction, with five Australian production. Recent visits to China by Department of more planned, further into the future. “Almost a third of the LNG produced by State Development staff reinforced their the massive Gorgon Project will be sold understanding both of the scale and to China and there are other agreements excitement of China’s development and In 2010, China is expected in place for projects which are yet to be of the challenges for Western Australian developed,” she said. exporters in this vast market. to import a total of nine “The Chinese Government is also During September, Executive Director million tonnes of LNG actively promoting exploration for, Joe Ostojich and Gorgon Project from Australia, Malaysia and development of domestic resources, Manager Lorna Fitzgerald from the including by seeking foreign investment Department’s Strategic Projects division, and Qatar. and technology to help develop along with representatives from the unconventional gas resources such North West Shelf Venture, visited as coal seam methane, shale gas liquefied natural gas (LNG) receival “This expansion creates vast and tight gas. facilities and an industry training centre opportunities for Australian producers. and met with senior industry and “This visit brought home to us, that as “However, it was clear from our government officials. China builds and develops additional observations and conversations, that capacity to store and use the gas, the In 2010, China is expected to import a although China values its relationship field of suppliers will also broaden and total of nine million tonnes of LNG from with Australia, in particular our political Australian producers will have to remain Australia, Malaysia and Qatar. and economic stability, they place a highly competitive.” premium on security of supply based on Currently, natural gas accounts for diversity of suppliers rather than specific The visit was conducted through less than three per cent of China’s levels of stability in any one place. the Australia-China Natural Gas electricity generation. Technology Partnership Fund’s “For this reason, they are also entering Mr Ostojich said gas usage will increase, Technical Visit Program. into major LNG supply contracts providing a cleaner alternative to coal with Qatar and Malaysia and building The fund is a joint initiative of the North which is used for about 70 per cent of thousands of kilometres of pipelines, West Shelf Venture and the Western electricity generation.

10 Inaugural Technical Visit to China. Participants from the funder organisations.

Australian and Australian Governments they visited explained the double digit “Even if steel growth is limited, Western that supports training, research and growth in China’s steel usage over the Australian iron ore exports to China are knowledge transfer between China past decade. likely to double to 550-620 Mtpa over the and Australia in the natural gas and next five years,” he said. This construction has underpinned the LNG industry. rapid growth of Western Australia’s iron The visitors were accompanied by ore exports from 155 million tonnes Tracey Lim, the fund’s secretariat (Mt) in 2000 – 01 to more than 390 Mt “China’s next five year director, who is also based at the in 2009 – 10. plan, beginning in 2011, Department of State Development. “Industry and government officials made will focus on technology Iron Ore it clear, however, that these growth rates Acting Executive Director Mike James are unlikely to be maintained,” he said. and industry efficiency and Senior Adviser Bill Preston, from the “China’s next five year plan, beginning by replacing inefficient, Department’s Resources and Industry in 2011, will focus on technology Development Division, were also in and industry efficiency by replacing polluting and high energy China at the same time. inefficient, polluting and high energy use plants. They spoke at the China Iron and use plants. Steel Association’s (CISA) 10th China “They aim to bring new steel growth International Steel and Raw Materials rates closer to annual GDP growth, “However, in a more constrained steel Conference and visited steel mills, that is less than 10 per cent, rather growth market, unless we significantly infrastructure developments and than the more than 20 per cent growth increase our market share from the government organisations to gauge that China’s steel production achieved current 42 per cent level, demand will longer term potential for further trade through the first half of the decade.” and investment in Western Australia’s fall well short of the 1.2 billion tonnes iron ore industry. Mr Preston explained that this per annum production that new and development, along with other changes expanding projects in Western Australia Mr James said the massive scale of road, in the iron ore market, would present aspire to. rail and port infrastructure construction challenges for more optimistic forecasts “To do this, producers will have and residential developments, newly of Western Australian producers and to respond to new iron ore pricing completed or underway, in the six cities project proponents. arrangements, which are more closely

11 Iron ore off-loading and steel products load-out facilities, Chongqing Iron and Steel Works, on the Yangzi River, China.

The new container, bulk materials (including iron ore) and petroleum products port at Qingdao on the Yellow Sea coast, China. The ship is loaded with WA iron ore ready for unloading.

aligned to the delivered market price of The iron ore and steel visit was The Departmental staff who visited ore, rather than supply contracts based supported by the Western Australian China concluded that while Western on a FOB negotiated price. Government’s Trade Office in Shanghai, Australia’s exports to China will grow which Mike James said provided significantly, increased demand cannot “Also, the expansion of Western effective access to industry and be taken for granted. Australian iron ore production means government decision makers, and that resources currently being mined, is clearly well respected by Chinese or which are identified for future government officials and influential production, include ore that is of lower industry leaders. “However, the Western quality in terms of its iron, alumina and phosphorus content, than Western BJ Zhuang, Regional Director at Western Australian iron ore industry Australian exports earlier in the decade. Australian Trade Office in Shanghai has proved itself as the remains confident that Western “This ore either has to be upgraded to Australian producers can increase their most competitive and higher quality before sale, or priced market share. competitively to reflect the additional reliable supplier to the cost to the steel producers, who may “Our industry is in competition with local Northeast Asian steel need to purchase relatively smaller Chinese production and exports from quantities and blend it with higher India which both have also benefited industry over the years. grade ores. from high spot market prices in recent years,” he said. “Finally, as part of its “going abroad’ strategy for securing future iron ore “However, the Western Australian iron The visit also underscored the supplies, China is investing in new mines ore industry has proved itself as the significance of the Department’s role and infrastructure in Asia, Africa and most competitive and reliable supplier to in providing policy advice, negotiating South America as well as in Australia, the Northeast Asian steel industry over agreements between the Government leading to increased competition for the years. and proponents, co-ordinating approvals market share. processes and delivering government “When spot prices decline, along with initiated infrastructure projects on “The extent to which Western Australia the growth rate for steel production, time and within budget, to maximise benefits from this investment will these other producers will again have the State’s competitiveness, and its depend on the success of existing more difficulty competing with Western attractiveness to investors. Chinese investment in greenfields iron Australian ore.” ore projects.”

12 Major Indian explorer in WA Shale Gas deal

Norwest Energy and major Indian Mr Tinapple said the agreement was Bharat Petroleum Corporation Limited petroleum explorer, Bharat particularly important for Western (BPCL) is quoted on the Bombay Stock PetroResources Ltd (BPRL) recently Australia’s shale gas industry. Exchange and, with a turnover of over agreed to a farm-in (exploration A$25billion, was listed at number 307 “It is promising that Western Australia’s investment agreement) of two of in the 2009 Global Fortune 500. shale gas potential is now recognised Norwest’s Perth Basin permits worldwide,” he said. The company has extensive experience (EP413 and TP/15). as well as success in numerous “This highly successful overseas With permit EP413 having good shale overseas exploration ventures. company is not only investing money gas potential, the day marked a into this exploration venture, but will Norwest plans to drill at both EP413 significant milestone for the burgeoning also bring a wealth of international and TP/15 by late 2010 or early 2011. Western Australian unconventional knowledge to the Western Australian gas industry. unconventional gas industry.” Up to A$10 million will be invested by BPRL towards drilling and testing programs to evaluate the shale gas “It is promising that potential of EP413, earning the company 50 per cent of Norwest’s interest. Western Australia’s Permit EP413 is close to the Parmelia shale gas potential and Dampier to Bunbury Pipelines and is now recognised could satisfy future domestic gas demand. worldwide.” Documents were formally signed during a recent visit to Western Australia by India has a growing interest in shale a delegation including the Managing gas and this venture will assist BPRL Director of BPRL. in becoming a leader in the shale gas The ceremony was attended by a industry in their home country. number of key stakeholders including BPRL is already a leading marketing Department of Mines and Petroleum and refining petroleum company based (DMP) Executive Director Petroleum in India. The parent company of BPRL, Location map of Norwest’s Perth Basin permits. Division, Bill Tinapple.

13 BriGHT future ahead for LNG in WA

When he visited the United States earlier “Western Australia is already the world’s Ms Nolan was the first presenter at the in 2010, Western Australian Premier and sixth largest LNG exporter, and with conference and spoke about Western Minister for State Development, Colin more than A$140billion worth of LNG Australia’s place in the LNG world. Barnett, described the growth of the and gas projects, either under way or “Globally, demand for LNG is forecast to petroleum industry, both oil and gas, as close to a Final Investment Decision, is triple by 2030 and when we look at global the most important economic change for set to become one of the top two.” demand and supply, location matters,” Western Australia since the Pilbara iron Perth was announced as the host city Ms Nolan said. ore projects of the 1960s. for LNG18 in Houston, Texas following “There are a significant number of LNG “In every sense, the biggest game presentations to the organisers on projects planned for Western Australia in town is the development of mega behalf of Perth, and the city of Doha in and at least A$60billion is being spent projects for the export of LNG. These the Middle Eastern emirate Qatar. on LNG projects currently under projects, both existing and proposed, Director General of the Department construction in this State. dwarf any other industrial projects in of State Development, Anne Nolan, Australia,” he said. “Global demand for LNG is currently represented the Western Australian driven by strong economic growth Western Australia has a significant Government, with WA’s bid for the in Asia. number of liquefied natural gas (LNG) conference led by the Australian Gas projects in the pipeline and, with Industry Trust and strongly supported “Asian markets were forecast to high growth in global LNG demand by the Federal Government and the consume about 123 million tonnes of anticipated, the State is positioning itself Australian Petroleum Production & LNG (58 per cent of global LNG demand) as a world leader in the supply of clean, Exploration Association Ltd, Chevron, in 2010. By 2030, that figure will more high-quality natural gas. Woodside and Conoco Phillips. than double for Asia alone, to about 338 million tonnes per annum. Thanks to Western Australia’s growing The International Conference and status in the world LNG industry, Perth Exhibition on LNG is held every three “When we look at the current Asian LNG was chosen to host the recent 5th years under the auspices of the market, it’s clearly dominated by Japan Annual LNG World conference, which International Gas Union (IGU), the at about 55 per cent of the market. attracted nearly 300 delegates from Gas Technology Institute of America Korea makes up 22 per cent while India, around the world. (GTI) and the International Institute of China and Taiwan are each around Refrigeration (IIR). eight per cent. On an even bigger scale, in November it was announced that Perth is set to Being chosen to host the conference is “In 2030, Japan is likely to still have a host the18th International Conference a major coup for Perth and underlines large share, at 35 per cent but demand and Exhibition on Liquefied Natural Gas Western Australia’s growing importance from China, India and Korea will have (LNG18) in April 2016, which is expected as a world leader in energy supply. grown to be closer to a 20 per cent to attract more than 5,000 delegates WA’s place in the LNG world stake each.” and exhibitors. The 5th Annual LNG World conference Ms Nolan referred to the ‘Northern “LNG18 will bring the heads of major was held at the Burswood Convention Energy Arc’, above the north-west global gas producing and energy Centre in Perth in late August and coast of WA and reaching towards the companies, and a lot of attention to featured experts in the field delivering a Northern Territory, in outlining the Perth,” the Premier said. wide range of presentations. discovered gas reserves off the

14 Northern BONAPARTE Energy Arc BASIN

BROWSE BASIN CARNARVON 27.3 Tcf Darwin BASIN 35.2 Tcf

94.4 Tcf Broome Northern Territory COAL SEAM GAS Queensland 49.5 Tcf COOPER- Karratha AMADEUS EROMANGA SURAT- 0.2 Tcf BASIN BOWEN-DENISON 7.7 Tcf BASIN Western Australia 0.2 Tcf Brisbane South Australia

PERTH BASIN 0.21 Tcf Perth New South Wales Adelaide Sydney

Victoria

Melbourne GIPPSLAND BASIN 8.2 Tcf OTWAY BASIN 1.3 Tcf BASS Hobart Tasmania BASIN Australian Natural Gas Resources Source: DMP. Current as at end 2009. 0.5 Tcf

Western Australian coast where development of natural gas projects Several existing LNG developments are the largest Australian gas reserves and associated industries in the State’s also looking to expand production in the are located. North West. future, with Australia’s largest oil and gas resource development – and one of “The top three discovered gas reserves Ashburton North will feature a the largest in the world - the North West are located in the Carnarvon, Browse multi-user port facility, land areas Shelf Venture among them. and Bonaparte Basins,” she said. for proponents and infrastructure for LNG and other hydrocarbon-based “When we look at the overall potential of “Together, these three finds dwarf processing, as well as natural gas for LNG developments in WA over the next any other discovered gas reserves off WA’s domestic gas supply. decade, we see huge capacity in Western Australian shores.” Australia for LNG,” Ms Nolan said. The State Government is also planning The Carnarvon Basin has over 90 trillion an LNG precinct at James Price Point, “By 2020, Western Australia’s overall cubic feet of gas (Tcf), Browse Basin north of Broome, for the processing of LNG capacity is potentially about about 35Tcf and Bonaparte Basin just natural gas from the Browse Basin. 80 million tonnes per annum. over 27Tcf. The Browse LNG Precinct will be capable “The Department of State Development Projects operating or planned for the of accommodating LNG processing on behalf of the Western Australian Carnarvon Basin include the world-class and shipping facilities for at least two Government is working to facilitate North West Shelf Venture, Woodside’s proponents. Planning for the precinct is responsible development of the state’s Pluto Project and the A$43billion resources and Western Australia is aimed at minimising the environmental Gorgon gas project. well placed to take advantage of LNG footprint of gas processing in the region, developments. The Western Australian Government is as well as heritage and cultural impacts, creating a new strategic industrial area while maximising opportunities for local “There’s a bright future ahead for LNG at Ashburton North near Onslow for the people and businesses. in this State.”

15 One person’s trash is another’s treasure

Global aluminium company Alcoa, which exciting possibilities,” Alcoa’s Residue Testing has demonstrated that the sand has several major operations in Western Technical Manager Dr David Cooling said. is suitable for general fill material used Australia, has developed a method to in construction backfill or as a material Alcoa’s residue sand and mud both have simultaneously turn its by-products for road base construction. a range of potential uses including as into a usable material and mitigate a soil amendment for broad use acre Commercialisation of Red Sand has greenhouse gases. farming and horticultural uses; as sand other potential benefits including being a Residue from Alcoa of Australia’s for cement manufacture; and for effluent viable substitute for increasingly scarce operations is comprised of two primary treatment of ponds and septic systems. supply of quarry sand; reducing the components of roughly equal quantity – clearing of natural bushland for sand Other potential uses for the residue quarries; and reducing the requirement sand and mud. include using it for trace metal retention for residue storage facilities. Alcoa’s Kwinana alumina refinery uses from road runoff, rubbish tips and a carbonation and wash system process acid mine drainage; in ceramics and “Just as Alcoa’s actual product, to turn its bauxite residue into a safe and plastics manufacturing; and as a road aluminium, is endlessly recyclable, commercially viable product. base material. we’ve found ways that our by-products can be useful to the community,” “While 20 years ago our research was What is Red Sand? Dr Cooling said. driven by a desire to reduce the size of Red Sand™ is literally crushed rock that our residue areas, a goal shared by our is red in colour. The product is residue “Research spanning over 20 years local communities, the opportunities from bauxite refining that is prepared has identified a number of possible coming from residue reuse research through the carbonation and sustainable uses for bauxite residue, have become much broader with several wash system. one of which is Red Sand.”

16 Alcoa’s Residue Technical Manager Dr David Cooling.

As the residue product with the Alkaloam can achieve improved pH Alcoa has a full scale carbonation plant most potential marketable uses, the levels almost immediately whereas (known as ‘Carbon Capture’) operating at commercialisation of Red Sand is traditional lime can take a number of its Kwinana refinery which is treating the currently a prime focus for Alcoa. years to achieve the same results. red mud fraction of the residue, locking What is Alkaloam/Red Mud? This multifaceted residue can also up about 70,000 tonnes of CO2 per year. Alkaloam™, the registered trademark prevent phosphorous from being washed for Alcoa’s red mud, is a fine-grained from farmland into waterways, helping “That’s equivalent to the emissions given residue which is carbonated through a to stop dangerous algal blooms. off by 17,500 cars, so this technology is reaction with carbon dioxide (CO ). 2 The technology associated with residue delivering a considerable greenhouse Trials have demonstrated that reuse is cutting edge and was developed gas emission saving,” Dr Cooling said. Alkaloam produces a range of through Alcoa’s global refining research benefits when added to sandy soils and development team, the Technology Alcoa is a member of Western common to coastal Western Australia. Delivery Group. Australia’s Kwinana Industries Council Adding Alkaloam has proved successful This innovation has not only opened and contributes to research into how in achieving improved pH levels in the door for bauxite residue by-product Kwinana industries can achieve acidic agricultural soils much quicker use, but also has further environmental ‘waste’ synergies by using each compared to the traditional soil benefits including capturing CO 2 others’ by-products. amendment, lime. emissions from nearby operations. More information on Alcoa’s Red Sand The greatest benefit of this residue is Through ‘carbonation’ Alcoa mixes CO2 the speed at which the product can with the bauxite residue which reduces and Alkaloam can be found at improve the pH of soil. the alkalinity of the material. www.alcoa.com.au/residue.

17 Golden Gecko recipients fly the green flag

Two Western Australian companies were the challenges of an island-based the area of ground disturbance. An intact awarded for their work to reduce the exploration operation, which meant soil and seed profile enables natural impact of mining and exploration on engaging key contractors and staff regeneration of vegetation,” he said. the natural environment at the to advise management on the It also included a restriction on 19th Golden Gecko Awards. unique environment, heritage and transport, to foot and helicopter, terrain considerations. Iron ore exporter Crosslands Resources on the island. and mineral exploration company “The difficult terrain on Irvine “Pluton is proud of its environmental Pluton Resources were both Island required a smart solution,” credentials, however, the thing we are recognised for their commitment Mr Schoer said. to environmental excellence. most proud of is the relationship our Pluton’s low impact approach to staff have with traditional owners. Research by Crosslands into the exploration included the development The Pluton workforce is made up of Shield-back Trapdoor Spider at its of a universal drilling platform for more than 40 per cent of Malaya Jack Hills Iron Ore Project in the Mid-West diamond core drilling to avoid the need and Bardi community members. has led to innovations in conducting for earthworks on slopes and limit We consider the Malaya a key partner low impact fauna surveys, while Pluton ground disturbance. and proud supporter of the project,” was recognised for its approach to low Mr Schoer said. impact exploration on rugged terrain “The portable platform is able to be at its Irvine Island Project. set up on slopes of around 25 degrees. The company also demonstrated a The supporting frame is raised on commitment to managing the risk Mines and Petroleum Minister Norman adjustable legs, which avoids the need of contamination from drilling muds Moore, who presented the awards, for earthworks on slopes and reduces and hydrocarbons. praised the two companies for being leaders in environmental excellence and 2010 AWARD RECIPIENT for making significant contributions to balancing environmental responsibility with the development of Western Australia’s resources. “All of the eleven submissions demonstrated exceptional environmental management over a range of different projects,” he said. “Leading innovation in environmental management within the industry, as all the submissions demonstrate they are doing, is what we need to ensure we have a sustainable mining future for WA.” Managing Director and Chief Executive of Pluton, Tony Schoer, identified access Pluton Resources staff members with their Golden Gecko award. as the key issue when considering

18 Crosslands Manager of Approvals and The innovative design of the study has 2010 CERTIFICATE OF MERIT Environment, Lara Jefferson, said the provided new techniques for low impact company had gone beyond its legal fauna surveys. requirements in terms of development. “As a result of the research we “The main driver on going beyond survey conducted, the buffer zone has been requirements to undertake scientific reduced for Crosslands and other research on drilling vibrations was the Mid West miners. Large populations fact that there was no knowledge or data were also discovered and thus the on exploration drilling impact on the conservations status of these spiders is spiders and their burrows,” she said. now being reviewed,” she said. Crossland’s research, which was “We have now taken the initiative to conducted by Phoenix Environmental utilise the Geraldton Iron Ore Alliance’s Services, used two key innovations. sub-committee to share our research The first was the use of fibre-optic findings with other companies through technology to allow the observation press releases, the website and open of spiders without digging them up. and transparent communication between environmental managers.” The second was the design and development of a ‘vibration simulation Certificates of Merit were awarded device’ which matched drilling vibrations to Cliffs Asia Pacific Iron Ore for and eliminated the need for any management of Malleefowl at Mt new clearing. Minister Norman Moore with representatives Jackson and Rio Tinto Iron Ore for from Cliffs Asia Pacific Iron Ore. “From Phoenix’s research we discovered developing comprehensive and that there were no short term impacts integrated systems to minimise 2010 CERTIFICATE OF MERIT on the spiders or the burrows due to environmental impacts in the Pilbara. exploration drilling impacts,” Entries for the 20th Golden Gecko Ms Jefferson said. Awards in 2011 open in February. The buffer distances were therefore For further information visit reduced from 200 metres to 25 metres. www.dmp.wa.gov.au/goldengecko/

2010 AWARD RECIPIENT

Minister Norman Moore with representatives Crosslands Resources staff members with their Golden Gecko award. from Rio Tinto Iron Ore.

19 WA’s underwater oil and gas technology in the spotlight Professors David White and Mark Randolph with the geotechnical beam centrifuge used to simulate offshore geostructures at small scale.

The world-class research and industry seabed off Australia’s coast are COFS is now involved in all of the major collaboration being used to help pave rarely found in other regions of oil projects currently under development in the way for Australia's largest resource and gas development. WA, having performed studies to support projects was in the spotlight in Perth in the Pluto, Wheatstone, Browse, Ichthys, early November. Calcareous sediments have uniquely Sunrise and Scarborough projects. challenging engineering properties that The Centre for Offshore Foundation prevent many conventional engineering But the Centre’s expertise extends much Systems (COFS) at the University design practices from being utilised further. Since it was established in 1997, of Western Australia staged an offshore Australia. COFS has worked on major industry international symposium – The projects in virtually every corner of the International Symposium Frontiers in "The designers of the Gorgon pipelines world. These include the Euripides piles Offshore Geotechnics – to highlight utilised some of the latest research (UK), Tai Po LNG pipeline (Asia), Gwang latest developments in the field. techniques, many of which have been Yang bridge (South Korea), Hong Kong developed at UWA, to predict the LNG pipeline (Hong Kong), BP’s Angolan The event attracted some of the behaviour of the pipelines through the fields (Africa) and the Maari platform world's leading experts in offshore life of the project," Professor David (New Zealand). geotechnics and shed light on the White, Centre for Offshore Foundation innovative engineering techniques used Much of the centre’s key research Systems, said. in numerous oil and gas developments involves the use of centrifuge modelling in Western Australian such as the Professor White's keynote lecture at the to test how geotechnical structures and A$43billion Gorgon Project being built symposium focused on the geotechnical seabed sediments respond. off the State’s northwest coast. engineering of sub-sea pipelines. Full scale testing of offshore structures The COFS is part of UWA’s Oceans The Chair of the ISFOG symposium, is impractical and expensive, so UWA’s Institute, and is an international leader Professor Susan Gourvenec, said centrifuge technology is used to provide in offshore geotechnical engineering the symposium had attracted expert accurate simulations of geotechnical research. The centre is home to speakers from around the world. behaviour at small scale in a safe and about 40 staff and world-leading efficient experimental environment. experimental facilities. "We are very pleased to have attracted key industry figures from Houston, UWA is recognised as a global leader Building Australia’s offshore oil and gas in geotechnical centrifuge modelling London and Norway to speak at our facilities presents unique challenges technology, and is currently hosting event, and we are also proud of the for geotechnical engineers, who assess researchers from the US, Europe and state-of-the-art contributions coming seabed conditions and determine China who are visiting Perth to use the from our own group at UWA and the local how best to support or anchor centrifuge facilities. geotechnical industry in Perth," she said. offshore structures and how to COFS is the only place in the southern safely route pipelines. COFS Director Professor Mark Cassidy hemisphere to have both a beam and The Gorgon Project, for instance, will said the Centre played a key role in drum centrifuge and also has the added be Australia's largest single resources providing research to support the State's benefit of having its own electronics project. The project’s offshore gas wells resources sector. laboratory and workshop to custom will be built up to 1300 metres under "COFS is one of WA’s research design and build equipment as needed. water and will be entirely subsea. success stories, hosting world-leading The Western Australian Government The pipeline carrying gas back to experimental facilities and engaging supports the centre as a designated Barrow Island to be processed will have closely with local industry to support State Centre of Excellence and COFS to negotiate the steep terrain at the resource developments, such as Gorgon, is also supported by the Australian margins of the continental shelf. The that underpin the Western Australian Research Council and the Lloyds calcareous sediments that form the economy," he said. Register Educational Trust.

20 New mine closure guidelines for WA

New mine closure guidelines developed The Mine Closure Plan is an essential All public comments will be taken into by the Department of Mines and management tool for industry to: consideration and incorporated into Petroleum (DMP) and the Environmental the final document. • ensure all stakeholders have their Protection Authority (EPA) offer a new interests considered during the mine tool for industry in planning for land For more information on the rehabilitation following the cessation closure process guidelines please contact DMP’s of mining. • identify early the risks associated Senior Environment Advisor Xuan Nguyen on +61 8 9222 3237 or Environmental management of mine with mine closure [email protected] sites in Western Australia including mine • facilitate progressive rehabilitation closure is closely regulated by DMP. and planning toward mine closure The new guidelines will assist industry in • ensure the cost of closure is planning more efficiently and effectively adequately represented in for the rehabilitation of land on cessation company accounts of mining. • ensure there is clear accountability The guidelines were developed in and adequate resources for the response to amendments made to the implementation of the closure plan Mining Act 1978 following the assent of the Approval and Related Reforms • monitor and review all aspects of (Mining) (No. 2) Bill 2009 in June. mine closure The new guidelines, a joint document • establish a set of indicators which between DMP and the EPA, are will demonstrate the successful consistent with existing national and completion of the closure process international standards and provide • establish a point where the company greater clarity about the content of mine has met agreed completion criteria closure plans. required for relinquishment Formal guidelines will ensure an of tenure. effective planning process is in place throughout the life of the mine, in order As part of their new mining proposals, to achieve successful closure of mines in companies will be required to submit Western Australia. a mine closure plan following standardised instructions set out For new mining proposals, mine closure in the new guidelines. plans must be submitted alongside the initial application. The mine closure plan will be required to be updated and resubmitted every Planning at this very early stage three years, unless specified by DMP. allows companies to better prepare for mine closure to ensure the mine Submitted plans will be assessed by is decommissioned and rehabilitated DMP and/or the EPA to ensure the in a cost effective and ecologically proposed closure strategy, process, sustainable manner. methods and outcomes are acceptable and achievable. Mine closure has to be consistent with agreed post-mining outcomes and land The draft guidelines were put up uses, and without unacceptable liability for public comment for four weeks Successful rehabilitation at a mine site in the South-West of Western Australia. to the State. in October.

21 Aurora sees bright future in WA

California-based Aurora Algae has busily expanded its Western Australian operations since committing to build a commercial scale production facility in the north west of the State. The company has opened new regional headquarters in Perth and was recently awarded A$2 million from the State Government’s Low Emissions Energy Development (LEED) fund. Aurora’s Australian Managing Director Matthew Caspari will oversee the construction and operation of the company’s Western Australian facility, which will create products such as renewable fuels, Omega-3 fatty acids and fish feed. “As we searched for the ideal location of our first commercial production facility, we identified a number of key factors that were critical to delivering maximum value from our high-tech farming process,” Mr Caspari said. “The combination of a perfect climate and the right blend of resources including abundant seawater, industrial carbon dioxide and skilled labour, made north-western Western Australia an ideal location for our initial high-yield commercial facility. “These elements combined with the outstanding support of the Australian government at all levels, makes Perth a perfect launching point for commercialising our technology.” The A$30 million LEED fund supports technological development required to cut greenhouse gas emissions from the energy sector and contributes to the national target of 20 per cent renewable energy by 2020. It targets technologies where Western Australia has clear natural and competitive advantages. “The grant is acknowledgement of support from the Australian government for the work we are doing to bring new clean technology business and local jobs to the country,” Mr Caspari said. “For us, it is an offset to a large investment that we are making in building our commercial-scale facility.” Aurora has optimised saltwater algae strains that thrive in open ponds, utilising seawater rather than fresh water to conserve resources. The company has also pioneered a unique, energy- efficient method to harvesting that uses technology commonly used in the wastewater treatment industry rather than the traditional centrifuge approach. “These process improvements over traditional algae production, harvesting and extraction methods, combined with the company’s ability to take excess carbon dioxide from third-party industrial plants, will result in premium, cost competitive, and carbon-neutral to carbon-negative products,” Mr Caspari said. Aurora currently employs 13 people in Australia and intends Aurora Algae will use algae from the north-west to create products to more than double that figure by the end of 2010. such as renewable fuels, Omega-3 fatty acids and fish feed.

22 State’s resources sector performs strongly amid fragile global economy

Despite a challenging economic period, the value of The improving global economy during 2009-10 saw the Western Australia’s mineral and petroleum industry majority of commodity prices rebound from the lows reached A$70.9billion in 2009-10, close to its previous reached early last year. record of A$71.3billion in 2008-09. WA is well positioned to build on its strengths as a The latest mineral and petroleum statistics released by reliable supplier of quality resources at world the Department of Mines and Petroleum (DMP) revealed cost-competitive prices. that record results from the iron ore and gold sectors contributed to the industry’s strong performance. Mineral and petroleum exports contributed an impressive Iron ore, petroleum, and gold, together accounted 89 per cent towards the State’s total merchandise exports, for 83 per cent or A$59billion of all mineral and with China continuing its lead as the major market for petroleum sales. our resources. Iron ore remained WA’s biggest sector in terms of value WA also maintained its status as the nation’s biggest accounting for A$33.7billion or 48 per cent of total sales. exporter, contributing 42 per cent (A$83billion) towards The sector achieved another milestone with shipments Australia’s total merchandise exports. Mining investment of iron ore increasing by 25 per cent to a record reached A$21.7billion, representing 71 per cent of the 396 million tonnes. State’s total (A$30.4billion) new capital expenditure. Petroleum sales accounted for 27 per cent (A$19billion) The future of the industry is very bright given the high of total sales. levels of investment in expansions and new projects The gold sector reached A$6.6billion, an increase of being undertaken in the State. 26 per cent on the previous year, which can be attributed to continued interest from investors and continued The latest mineral and petroleum statistics are available strength in the gold price. on the DMP website www.dmp.wa.gov.au/1518.aspx

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Thank you for your input. 23 Online lodgement helps streamline approvals process

Senior DMP staff members met with AMEC in October to discuss approvals reforms.

Dramatic decreases in the time it requests for additional information At a separate environmental forum takes to process approvals for industry in a shorter timeframe for information was provided on the are being achieved, thanks to the online applications.” progress of Minister Moore’s Department of Mines and Petroleum’s Industry Working Group (IWG) Report The approvals report revealed the (DMP) online lodgement systems. recommendations, the Lead Agency department had achieved further Framework, approvals tracking, and the The department’s third quarter 2010 reduction in the pre 2009 approvals approvals performance report showed backlog and continued its high proposed new mining securities policy that online applications requiring performance in meeting and mine closure guidelines. environmental assessment for mineral established timelines. Dr Griffin said the department was exploration Program of Works took an DMP has recently been cooperating pleased to collaborate with AMEC and average of 16.8 days to process. This with the Association of Mining and other industry organisations. compared to 21.7 days for traditional Exploration Companies (AMEC) in its paper applications. “As a result of the interaction the push for approvals reform. department is now much better Deputy Director General Approvals Tim Recently DMP participated in AMEC informed about issues raised by AMEC Griffin said a reduction in time of almost approval reform meetings that focused on behalf of its members, and is working one week was considerable for industry. on native title, Aboriginal heritage and with AMEC and other government “DMP has been focusing considerable environmental matters. agencies to find resolutions,” he said. energy and resources on developing its One roundtable forum, attended by “It’s important that DMP and information technology capabilities for senior Government and industry officials government more generally remain open approvals lodgement and tracking,” focused on key recommendations and accessible for industry and that Dr Griffin said. relating to Aboriginal heritage and native there is transparency in our processes “As well as saving time and effort title approval issues. and decisions.” for industry, it makes the process of The recommendations propose options Many of the recommendations from assessment much more transparent for improving the efficiency and the IWG report have been supported and accountable. effectiveness of regulation and further by government and significant progress “The third quarter data also showed streamlining approvals processes for the has been made on resolving issues that that proponents responded to DMP’s mining and exploration industry. were raised.

24 Resourcing safety reform

With Western Australia’s resources “It is now recognised that although “While extra safety resources and industry expanding at a rapid pace, the this is undoubtedly a significant part of legislation help, significant reductions Department of Mines and Petroleum is success, it also requires that shop floor in incidents can only be achieved if a ensuring its Resources Safety Division personnel, and particularly safety and positive cultural change is encouraged has the resources to regulate the health representatives, are empowered and maintained,” Mr Russell said. industry well into the future with one of to drive key safety programs.” “The significant improvements we are the largest recruitment campaigns in seeking in industry safety performance recent history. Mr Ridge said that safety must become a habit throughout the resources sector. will only occur when every person Since the campaign began in April working in the industry accepts 2010, more than 50 positions have been “Only when we all adopt this habit can it personal responsibility for working advertised across local, national and be said that a resilient safety culture has safely, at all times.” international media. The campaign taken over our workplaces,” he said. A Mines Safety Roadshow, presented even garnered Australia-wide attention “Habits are only developed when in October by Resources Safety in the in October after a national newspaper associated behaviours are rewarded. Pilbara, South West, Goldfields and featured an article on the recruitment In the case of safety, we need to reward Perth, provided a unique opportunity drive in its weekend edition. the bearers of “bad news” so that, with to consult with workers about how Resources Safety Executive Director the strength of awareness, we can the regulator and industry might work Malcolm Russell said that the drive pro-actively treat the symptoms together to achieve the next step change aimed to recruit the best possible people before they develop into a chronic towards resilient safety cultures being for the range of positions available. and devastating illness. commonplace in mining workplaces. “These are technically and intellectually “Unless we harvest the knowledge of our Industry input was sought into a challenging positions and it is vital we employees and workmates so we really strategic program to understand how have skilled, passionate people to fill understand the issues in the workplace, widely accepted “tough” behaviours and communication styles affect safety in them,” Mr Russell said. it is unlikely that our safety performance the workplace, how toughness might will improve, and highly likely that “I think the nature of this campaign be redefined, and what resources and serious incidents will continue to occur. ensures we are doing all we can to training are required to support this attract the right people.” “Managers and supervisors should cultural change. be seeking out the “bad news” and The campaign is a key part of reforms Dr Dean Laplonge was engaged to lead to safety regulation in WA. engaging shop floor employees and their the roadshow workshops, including safety and health representatives in “In the mining sector, as for other the 2010 Exploration Safety Roadshow meaningful dialogue to develop effective industry sectors, safety performance has in early December, and will report to and targeted programs, driven by the been sitting on a plateau for some time,” Resources Safety on how the safety employees, that address the problems.” State Mining Engineer Simon Ridge said. regulator might support industry as Mr Russell said that in order to save it seeks to make these positive “Our particular industry has struggled in lives and reduce injuries, industry, the cultural changes. recent times to maintain an acceptable rate of improvement and, in fact, has regulator and employees must work Further information on the safety started to slide backwards in the fatal together to make the necessary reform process is available at incidence rate.” cultural changes. www.dmp.wa.gov.au/safetyreform Mr Ridge said that this was a concern for everyone involved in the resources industry in the State. “Only a significant change in the approach to safety is going to arrest the back sliding and provide mechanisms to achieve a new step change,” he said. Commentators in the oil and gas sector, where there are similar issues with a plateau in safety performance, suggest that the key lies in developing a new safety culture where employees have real ownership of — and drive — safety improvements. “Traditionally, it has been held that safety performance relies upon Department of Mines and Petroleum Director General Richard Sellers and Mines and leadership from the top,” Mr Ridge said. Petroleum Minister Norman Moore attended the Mines Safety Roadshow in October.

25 Going underground in Northbridge

A simulated underground mine The mine was opened in November It is not just the visual elements that underneath Northbridge is giving 2009 and is the first of its kind in replicate the underground environment. students a taste of what life is like Western Australia. There is also a soundtrack that gets as an underground mine worker. played throughout the mine, though it Some of the visual effects of the mine certainly won’t be appearing on any of The Central Institute of Technology were created by a design company that the music charts. The sound of jumbos, recently opened The Cut mine usually specialises in film sets. This trucks and other machinery saturate underneath its Northbridge campus included creating simulated ore bodies the darkness. and Centre for Mining Lecturer Rod for students to conduct geological Ebrall said the simulated mine gave mapping exercises. This offers “We can turn it up pretty loud, so they students a good idea of what it is like hands-on experience for future get a good idea of the kind of sounds to work underground. geological assistants. they will experience when working underground,” Mr Ebrall said. “We want our students to really be “It is considerably more difficult when it thinking about safety,” Mr Ebrall said. is in three dimensions,” Mr Ebrall said. Mr Ebrall said it was important to ensure students were aware of the “In the classroom, students are used to “It is all nice and easy when it is on the type of working environment they seeing things in two-dimensions - this whiteboard in your classroom. You get could be entering. facility offers them a perspective much down here and it can be a real challenge closer to the real thing.” in this environment.” “This mine gives them a good idea of what to expect and whether it is Mr Ebrall said safety is a key element One of the formations confronting something that they genuinely want of the course. students is based on a typical to pursue,” he said. “We go through a lot of safety Kambalda-style nickel ore body. Mr Ebrall said the course was components,” he said. “For students who haven’t seen it in 3D quickly gaining an excellent reputation “The one subject that is vital the they begin to get an idea of how to put all in industry. students demonstrate competence in is their theoretical knowledge together,” “We have had a number of people saying safety. If you haven’t got that we won’t Mr Ebrall said. that they have had graduates coming let you go out there (into the industry).” The mining industry supported the to their companies and they have been One of the scenarios puts students project and provided vital input into excellent,” he said. “at risk” from a rock fall if they wander its design. “The name of this course is pretty well underneath a section of unsupported “A number of companies came in and known and regarded. We maintain a ground. If students venture out donated their ideas, equipment and high standard and won’t give a person underneath the section they are time to help establish this mine,” a qualification unless they have proved “fired” on the spot. Mr Ebrall said. they will be able to work in their field.” “It teaches students to be constantly One company provided the mine with its Mr Ebrall said the institute runs four aware of their surroundings and take own simulated refuge chamber. six-month courses a year. notice of their environment beyond what is immediately in front of them,” “It looks like a real refuge chamber that “We accept up to 18 students for the Mr Ebrall said. you would find in an underground mine,” course and have a wide range of people Mr Ebrall said. applying,” he said. “This kind of scenario just helps them prepare for the environment they will “We bring the students in here, run “Some are just out of high school, while end up working in. They also quickly through the procedures and give them others are looking for a career change. learn that you are not supposed to work an experience similar to what it would be But they all want to be here and they all under unsupported ground.” like in real life.” want to learn.”

A simulated underground mine in Northbridge is giving Central Institute of Technology Students from the Central Institute of Technology students a taste of what life is like as an underground mine worker. gather in a refuge chamber in the simulated mine.

26 Women welcomed to the world of engineering

Eleven women have been given a “Women obviously play a major role field can only serve to change the unique opportunity to gain rewarding in society and Chevron believes it is profession for the better.” careers in engineering through new imperative that our workforce accurately industry-sponsored scholarships at reflects the greater community,” ACEPT is a leading provider of process Challenger Institute of Technology. Ms Butler said. operations training in Australia, offering The women were presented with “Women make wonderful engineers recognised qualifications for the oil inaugural Women in Engineering and anything we can do to help alleviate and gas, mineral and chemical Scholarships at Challenger’s Australian the present imbalance in this important processing industries. Centre for Energy and Process Training (ACEPT) in Perth in November. Sponsored by BHP Billiton and Chevron, the scholarships have been designed to encourage more women to enter careers in the largely male-dominated field of engineering. The Certificate III in Civil and Structural Engineering course will provide foundation skills for employment in construction industries associated with Western Australia’s expanding resources industry or serve as a pathway to higher-level engineering qualifications. “The program has been specifically designed to provide women with a supportive, applied learning environment,” Challenger Institute managing director Liz Harris said. “Delivered in collaboration with our industry partners, it will provide work placement and access to female role models. The course has also been designed with flexibility to cater for women with children and family commitments.” A key focus of the course was to provide the participants with an insight into engineering from a female perspective and to address barriers that might discourage women from entering an engineering career. Chevron’s Human Resources Managing Director Kay Butler said there were plenty of opportunities for women with engineering qualifications, particularly Toni-Marie Smith was awarded a commendation prize to support her progression into the Diploma of Civil and Structural Engineering. within the resources sector.

27 Commenced Operations Committed Projects

Agriculture Oil & Gas Developments Site works commenced early in Q4 2010 and first production is expected in mid-2011. The project East Kimberley - Ord - East Kimberley Expansion Carnarvon Offshore Basin - Pyrenees Oil Fields involves the construction of mine pits, screen plant, Project BHP Billiton Petroleum (Australia) Pty ore concentrator, solar drying dams and associated WA State Government Limited mine infrastructure. The mine is expected to produce The State Government has committed $220 million In July 2007, BHPB Petroleum announced approval over 1.2Mt of heavy mineral concentrate over its four to increase the existing amount of irrigated land of the Pyrenees oil development located 45km to five year life, which will be transported to Capel in the Kununurra region by adding 8,000 hectares north of Exmouth. The development comprises the for further processing. at Weaber Plains. This funding will provide the Crosby, Ravensworth and Stickle oil fields which Expenditure: $30m. construction of irrigation channels, roads and have estimated recoverable oil reserves in the Employment: Construction: 130; Operation: 30 off-farm infrastructure to service the future needs range of 80-120 million barrels. The project involves of the region’s growing population and sustain the development of 13 subsea wells connected economic growth. The Commonwealth Government via flowlines to a Floating Production Storage Iron Ore and Offloading vessel, which will be capable of has committed $195 million of funding for social and producing about 96,000 bbl/d of oil. First production Mid West Region - Extension Hill Hematite Mine common use infrastructure in the East Kimberley commenced March 2010. As planned, the wells Mount Gibson Iron Limited region. Construction has commenced and the will be drilled and brought on in phases, with Mount Gibson Iron has environmental approval for package will be fully implemented by June 2013. approximately half the field ramping up from first a 3Mtpa hematite mining operation at Extension Expenditure: $415m. oil and the other half over the next six months. Hill, 260km south east of Geraldton. The ore will Employment: Construction: 218 Expenditure: $2b. be trucked to a rail head near Perenjori then railed to the port of Geraldton for export. Construction of Carnarvon Offshore Basin - Van Gogh Oil Field the project has commenced with first shipments Iron Ore Apache Energy Limited expected to be in June 2011. The Van Gogh oil development, located around Expenditure: $73m. Pilbara - FMG Chichester - Iron Ore Mine, 50km northwest of Exmouth, will utilise a Floating Employment: Construction: 150; Operation: 100 Rail and Port Development Production Storage and Offloading (FPSO) vessel Fortescue Metals Group Ltd (the Ningaloo Vision) with a processing capacity Mid West Region - Karara Iron Ore FMG Chichester operates iron ore mines at of 63,000bbl/d of oil and storage capacity of Karara Mining Ltd (Gindalbie Metals Ltd / Cloudbreak and Christmas Creek in the Chichester 540,000 barrels. It will be linked to two subsea drill Ansteel Joint Venture) Ranges of the eastern Pilbara, serviced by a centres with 10 production wells. Development The Karara Iron Ore Project is Karara Mining’s multi-user railway and port facilities at Port drilling and sub-sea production equipment cornerstone production project in the Mid West Hedland. FMG Chichester is currently ramping installation is completed awaiting the arrival in the region. Construction commenced in November production up to 45Mtpa and is investigating field of the FPSO. Production commenced Feb 2010. 2009. Karara will deliver some 10Mtpa of iron increasing its production to 95Mtpa from the Expenditure: $700m. products before the end of 2011, comprising 8Mtpa Chichester Ranges. Employment: Operation: 80 of high grade magnetite concentrate and blast Employment: Operation: 3200 furnace quality pellets and 2Mtpa of Direct Shipping Ore hematite. The Project is underpinned by a Pilbara - Mesa A Bauxite world-class JORC-Code compliant resource base Robe River Mining Co Pty Ltd comprising a 522 million tonne magnetite reserve, Construction of the mine and rail extension started Worsley/Boddington - Alumina Refinery - E & G a 1.85 billion tonne magnetite resource, a 10.9Mt in November 2007 and was completed in Q1 2010. Project Expansion to 4.7Mtpa hematite reserve and a 16.2Mt hematite resource. First production commenced in February 2010. Initial BHP Billiton Worsley Alumina Pty Ltd Expenditure: $1.975b. production is planned to be approximately 20Mtpa, BHP Billiton announced in May 2008 the go-ahead Employment: Construction: 1500; Operation: 500 increasing to 25Mtpa by 2011. The project involves for the A$2.5 billion Efficiency and Growth (E&G) Pilbara - BHPB Rapid Growth Project 5 an open cut mine located south of the Pannawonica expansion project at its Worsley alumina refinery. road off the North West Coastal Highway. Mesa A will The expansion project will lift capacity of the refinery BHP Billiton Iron Ore Pty Ltd sustain production of the sought-after Robe Valley from 3.5Mtpa to 4.7Mtpa through expanded mining BHP Billiton Iron Ore has obtained all relevant pisolite ore as production from Mesa J decreases. operations, additional refining capacity and upgraded Government approvals to further increase its port facilities. Construction has commenced and installed production capacity of its Western Expenditure: $1b. production capacity is expected to be expanded by Australian Iron Ore operations. The project includes Employment: Operation: 220 2012. An additional A$500 million will be spent on a mine expansions, dual tracking of sections of the Pilbara - Brockman Syncline 4 - new multi-fuel cogeneration power plant to be built railways and additional berths at Port Hedland inner Brockman Syncline 4 Iron Ore Mine at the refinery. harbour, for which engineering is 98% complete, construction is 77% complete and the overall Hamersley Iron Pty Limited Expenditure: $2.5b. Employment: Construction: 1500; Operation: 200 project is 79% complete. The Company is in the In mid 2008 Hamersley Iron commenced study phases for future potential expansions. construction of the mine with a production target Expenditure: $4.8b. of 22Mtpa for the Brockman Syncline 4 iron ore Electricity Employment: Construction: 3500 deposit, located approximately 60km north west of Tom Price. First ore was stockpiled in June 2010. Pilbara - Karratha 7 Mile - 7 Mile Power Station Solomon - Pilbara - Solomon Hub Stage 1 A further expansion is under consideration. Hamersley Iron Pty Limited Fortescue Metals Group Ltd Expenditure: $2b. Rio Tinto has proposed a power infrastructure Fortescue has completed a definitive feasibility Employment: Construction: 1500 rationalisation program and upgrade for its mining study for a 60 million tonne per annum iron ore and port operations in the Pilbara region. Hamersley mine and supporting infrastructure. The Solomon Pilbara - Port Hedland - Atlas Iron Turner River Iron Pty Limited is constructing a new power Hub is planned to initially involve at least two mining Hub generating facility at 7 Mile near Karratha. Robe areas, two processing plants and a 130 kilometre Atlas Iron Ltd River Mining Company Pty Limited is constructing a rail link to Fortescue’s existing Christmas Creek to Atlas Iron Ltd is an active explorer and developer, 220kV transmission line and a sub-station at Cape Port Hedland rail line. The proposed mining areas focused on iron ore projects within Western Lambert. The Cape Lambert sub-station will be and rail corridor for the Solomon Hub are within Australia. With a growing number of projects and linked to the 7 Mile main power generator via the unallocated Crown Land and active pastoral leases a large landholding in the Pilbara (15,000km2) new transmission line. Hamersley and Robe will and approximately 70 kilometres north of Tom Price located close to existing infrastructure, the company share the generation capacity created by the new in the Hamersley Ranges. Subject to Government is effectively defining resources and reserves power station. This new single station will replace approvals and final sign off by the Fortescue Board, a capable of being mined with relatively low capital the two aging plants at Dampier and Cape Lambert. two year construction period will begin in 2011. expenditure. Exports commenced in December 2008 Construction of the power station commenced in Expenditure: $4b. starting with its Pardoo Project located some 75km late 2008. Employment: Construction: 1000; Operation: 1000 Expenditure: $700m. east of Port Hedland, and has continued with the Yilgarn - Koolyanobbing Iron Ore Upgrade commencement of production from the Wodgina Cliffs Asia Pacific Iron Ore Pty Ltd DSO (Direct Shipping Ore) Project. The company In September 2010, Cliffs approved an upgrade has now reached a 6Mtpa mining and export rate Heavy Mineral Sands of its Koolyanobbing iron ore operations from and is targeting 12Mtpa by 2012 with the proposed Tutunup South - Heavy Mineral Sands Mine 8.5Mtpa to around 11Mtpa. Koolyanobbing is centralised Turner River Hub crushing and Iluka Resources Limited located 50km north east of Southern Cross and also screening plant. The Tutunup South mineral sands mine, located includes the Mt Jackson and Windarling mines. Expenditure: $28m. approximately 15km south east of Busselton, The improvements are expected to consist of Employment: Operation: 200 received environmental approval in August 2009. enhancements to the existing Kalgoorlie-Esperance

28 This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. Committed Projects rail infrastructure, an increase in rolling stock 4.3 million tonnes a year. Storage and loading complete and civil works progressed sufficiently to and upgrades to various other existing operational facilities include LNG and condensate storage tanks allow for the sequential installation of pipe rack and constraints. Cliffs anticipates these improvements and export jetty. The Pluto LNG Project is on track to gas processing modules. The onshore gas supply to be fully implemented in the second half of 2012. become the world’s fastest developed LNG project pipeline is nearing completion and the pipeline Expenditure: $320m. from discovery of the gas field in 2005 to first LNG shore crossing, installed by horizontal directional in early 2011. drilling methods, is well advanced. The development Expenditure: $12b. Iron Ore Processing site is located near Devil Creek, 65km south west of Employment: Construction: 4000; Operation: 300 Karratha where the construction workforce is being Pilbara - Cape Preston - Sino Iron Carnarvon Offshore Basin - Barrow Island - accommodated within a purpose built facility. The CITIC Pacific Gorgon Project DCDP is designed to provide up to 200 terajoules CITIC Pacific Mining is constructing the Sino Iron Gorgon Joint Venture per day of dry natural gas and between 80kl to 160kl project at Cape Preston, 100 kilometres south west The Gorgon Joint Venture (GJV) made a final per day of gas condensate. All gas from the DCDP of Karratha. The magnetite iron ore project will investment decision on the $43 billion Gorgon will service the domestic gas market in Western include a concentrator, 6Mtpa pellet plant, 25km Project on 14 September 2009. The GJV’s foundation Australia, with first gas delivered into the DBNGP slurry pipeline, combined cycle 450MW power project on Barrow Island includes a three train second half 2011. station, new port and trans-shipment facilities, and LNG development capable of exporting 15Mtpa Expenditure: $800m. 51GL desalination plant. At full production up to and a domestic gas project capable of delivering at 27.6 million tonnes of magnetite concentrate and least 300 terajoules per day of gas to the mainland. Employment: Construction: 200; Operation: 20 high grade pellets will be exported each year. First The development on Barrow Island also includes shipment of concentrate is expected in the first half potentially the largest commercial geosequestration of 2011. project in the world. The project obtained State and Rare Earths Expenditure: $5.2b. Commonwealth environmental approval in August Mt Weld - Rare Earths Mine Employment: Construction: 4000; Operation: 500 2009. The project is based on gas from both the offshore Gorgon and Jansz/Io gas fields. On-island Lynas Corporation Ltd activity commenced in late 2009 and will ramp up The Mt Weld deposit is located about 35km south Lithium through 2010 with the processing plant construction of Laverton. Its resources were recently updated scheduled to commence in 2011. from an estimated 12.2Mt at 9.7% grade for 1.18Mt Great Southern Region - Mount Cattlin Lithium Expenditure: $43b. rare earth oxides (REO) to 17.4Mt at 8.1% for 1.41Mt Project, Ravensthorpe REO, an increase of some 19% contained REO. The Galaxy Resources Limited Employment: Construction: 3500; Operation: 300 mine development includes an open pit mine and Galaxy Resources Limited commenced Carnarvon Offshore Basin - Cossack/Wanaea - concentration plant at Mt Weld. The concentrate commissioning of the Mt Cattlin lithium concentrate Cossack/Wanaea Redevelopment processing plant in September 2010. The mine and Woodside Energy will be bagged and containerised on site, and trucked to the Port of Fremantle for export. The ore the processing plant will produce approx. 137,000tpa The Cossack Wanaea Lambert Hermes (CWLH) will be shipped to a $300 million processing plant of spodumene concentrate. Galaxy is preparing fields, 135km northwest of Karratha, have produced for the first shipment of its product through the 395 million barrels of oil since production began in Malaysia, which will have an initial production Esperance Port to China, in November 2010. In in 1995. The redevelopment work includes the capacity of 11,000tpa REO in 2011, expanding to China, Galaxy will produce 17,000tpa of battery purchase and conversion of the Okha floating 22,000tpa by 2013. Lynas raised $450 million in grade lithium carbonate. A large proportion of this storage and offloading facility into a floating equity to enable suspension of the project to be will make its way into the growing markets of Japan, production storage and offloading facility to replace lifted in November 2009. Construction work Korea and Europe. the Cossack Pioneer in late 2010, as well as the recommenced at Mt Weld in April 2010 and the Expenditure: $75m. replacement of associated subsea infrastructure. first ore feed to the concentration plant is Employment: Construction: 100; Operation: 75 At a total investment of about A$1.8 billion, the scheduled to occur in December 2010. CWLH Redevelopment Project will support ongoing Expenditure: $135m. safe and reliable production from the CWLH fields Nickel beyond 2020. Employment: Construction: 135; Operation: 90 Expenditure: $1.8b. Ravensthorpe - Ravensthorpe Nickel Operation First Quantum Minerals Australia Nickel Carnarvon Offshore Basin - North Rankin - Silicon Metal Pty Ltd North Rankin Redevelopment First Quantum Minerals (FQM) acquired the Woodside Energy Kemerton - Silicon Metal Plant Expansion Ravensthorpe Nickel Operation (RNO) from BHP In March 2008 the North West Shelf Venture Simcoa Operations Pty Ltd Billiton (BHPB) in February 2010. FQM plans to participants approved funding of the $5 billion North Simcoa announced in October 2009 its decision to return RNO to sustainable production by late 2011. Rankin Redevelopment Project which will recover expand the company’s 32,000tpa capacity silicon RNO is an open cut mine and hydrometallurgical remaining low pressure gas from the North Rankin metal plant at Kemerton. The first stage expansion, process plant that produces a mixed nickel cobalt and Perseus gas fields, and extend the field life to involving installation of a third furnace, will increase hydroxide intermediate product. The modifications around 2040. The project involves the installation the plant capacity to 48,000tpa and commissioning are within the plant’s existing footprint in the of a new second platform - North Rankin B - with is scheduled for Q3 2011. Providing world demand materials handling area, including crushing, gas compression facilities, low pressure separators, conveying and stockpiles. FQM aims to produce utilities and accommodation. North Rankin B will for silicon continues to increase strongly, a second 39,000tpa nickel metal for the first five years after be connected by a 100m bridge to the existing stage expansion, involving installation of a fourth recommencement and 28,000tpa nickel metal over North Rankin A platform and on completion both furnace could take place by late 2013 and increase the current anticipated mine life of 32 years. platforms will be operated as a single integrated plant capacity to 64,000tpa. Expenditure: $150m. facility known as the North Rankin hub. The North Expenditure: $100m. Employment: Construction: 200; Operation: 600 Rankin Redevelopment project also includes the Employment: Construction: 120; Operation: 40 necessary connections to North Rankin A and some refurbishment of the North Rankin A platform. Oil & Gas Developments North Rankin B is scheduled for start-up in 2013 Vanadium and will support the North West Shelf Venture’s Carnarvon Basin - Pluto LNG onshore gas requirements to supply future Windimurra - Windimurra Vanadium Project Woodside Energy customer commitments. Atlantic Limited Approved for development in July 2007, the Pluto Expenditure: $5b. LNG Project will process gas from the Pluto and In September 2010, Atlantic Limited announced in Xena gas fields, located in the Carnarvon Basin Pilbara - Devil Creek Development Project its Prospectus the execution of the final definitive about 190km north-west of Karratha, Western Apache Energy Limited agreement to acquire the Windimurra Vanadium Australia. The Pluto and Xena gas fields are Apache Northwest and Santos Offshore are Project. Atlantic is now working towards completion estimated to contain 4.6 trillion cubic feet (Tcf) of dry continuing construction works for the Devil Creek and commissioning of the project. The company gas reserves and an additional 0.5Tcf of contingent Development Project (DCDP), a greenfield gas is at an advanced stage of appointing construction resources. The initial phase of the project comprises project comprised of an unmanned offshore contractors to begin work on the project, and is an offshore platform, connected to five subsea gas production platform over the Reindeer gas finalising arrangements for the sale of the existing wells on the Pluto gas field. Gas will be piped in a field located about 80km northwest of Dampier; haematite ore stockpile at Windimurra. Full 180km trunk line to the Pluto LNG Park onshore offshore and onshore gas pipelines; an onshore gas production is scheduled to commence by mid 2011. facility located on the Burrup Peninsula. Onshore processing plant and a sales gas export pipeline infrastructure comprises a single LNG processing connected to the Dampier to Bunbury Natural Gas Expenditure: $500m. train with a forecast production capacity of Pipeline (DBNGP). Gas plant site earthworks are Employment: Construction: 350; Operation: 120

All conversions from foreign currencies were calculated at the latest available rate. 29 Projects Under Consideration

Ammonia/Urea Gold Shark Bay - Coburn Zircon Project Gunson Resources Limited Shotts Industrial Park - Collie Coal to Urea Kalgoorlie (330kms North East) - Tropicana Gold Gunson proposes to develop the Coburn mineral Perdaman Chemicals and Fertilisers AngloGold Ashanti/Independence Group sands project, located south of Shark Bay. It Pty Ltd Joint Venture contains total ore reserves of 308Mt at an average AngloGold Ashanti, as Joint Venture Manager, has grade of 1.2% heavy minerals, all of which lie Perdaman Chemical and Fertilisers Pty Ltd is undertaken an intensive exploration and resource within the portion of the project area that has developing a $3.5 billion coal to urea plant at the development program approximately 330kms received government environmental approvals for new (to be developed) Shotts Industrial Park, near north east of Kalgoorlie. Plans for the project mining. At the proposed mining rate of 17.5Mtpa, Collie. The plant will use proven “best in class” coal are to develop an open-cut gold mine and nearby the Coburn mine life is estimated to be 17.5 years which could be extended by six years if the northern gasification and fertiliser production technologies. processing plant. So far, a resource estimate of area receives government approvals for mining. Around 2.7Mtpa of coal will be used to produce 5 million oz of gold has been identified with a The Definitive Feasibility Study was completed in approximately 2Mtpa of urea, primarily for export. mine life of at least 10 years. The feasibility study December 2009 and Gunson is continuing to advance The urea will be transported to Bunbury Port by rail. commenced in July 2009 and is ongoing. The 8 week discussions with potential strategic funding and The company has recently received environmental Public Environmental Review period closed on offtake partners. approval from the WA Minister for Environment in 24 November 2009. Construction is anticipated to Expenditure: $169m. commence in late 2010. Commissioning is expected accordance with the Environmental Protection Act. Employment: Construction: 170; Operation: 110 to be around the first quarter in 2013 with production A 20-year off take agreement has been signed with of up to 410,000 oz per annum. The recently released Incitec Pivot. Construction is expected to commence Infrastructure (19 July) 2010 EPA report has recommended project in 2011 with the first shipment of urea planned approval to the Minister for Environment. State Kimberley - James Price Point - for 2014. Environmental Approval granted on 24 September Browse LNG Precinct Expenditure: $3.5b. 2010. Awaiting Federal approval expected before the WA State Government Employment: Construction: 1500; Operation: 200 end of 2010. The State Government is developing a Liquefied Expenditure: $700m. Natural Gas (LNG) Precinct in the Kimberley to Employment: Construction: 700; Operation: 400 enable processing of natural gas from the offshore Ammonium Nitrate Browse Basin. The LNG Precinct will be capable of accommodating LNG processing and shipping Pilbara - Burrup Industrial Estate Site D - Heavy Mineral Sands facilities for at least two proponents currently Burrup Nitrates Happy Valley - Heavy Mineral Sands Mine exploring for and developing these resources. This Burrup Nitrates Pty Ltd approach will minimise the environmental footprint Bemax Cable Sands (WA) Pty Ltd Burrup Nitrates Pty Ltd (BNPL), a joint venture of gas processing in the region while maximising Located adjacent to the Bemax Gwindinup deposits, opportunities for local people and businesses to between Burrup Holdings Ltd (BHL) of Australia and the project will involve the mining of the Happy participate in, and benefit from, employment and Yara International ASA of Norway, is conducting a Valley North and South mineral sands deposits business opportunities. Woodside’s final investment feasibility study into the construction of a 350,000tpa situated on private land and in State Forest. The two decision for the precinct is expected to be made in Technical Ammonium Nitrate (TAN) plant to deposits contain over 750,000 tonnes of recoverable mid-2012. be located on the Burrup Peninsula. Ammonia heavy mineral concentrate, with average production Expenditure: $30b. feedstock will be supplied from BHL’s subsidiary expected to be around 150,000tpa over a combined Employment: Construction: 6000; Operation: 400 mine life of eight years. The Environmental Review company Burrup Fertilisers Pty Ltd, which operates Oakajee - Oakajee Midwest Development and Management Program document was released its facility directly adjacent to the proposed location WA State Government for public review and closed in November 2009. for the new TAN plant. It is expected that all The Oakajee Port will include common user Subject to obtaining all relevant approvals, Bemax manufactured product will be sold into the Pilbara infrastructure (channel, breakwater, turning basin, expects to commence mining of the North deposit in navigational aids, provision for tug and pilot boat region. Regulatory approvals are in progress. The early to mid-2011 and then plan to transfer mining company is aiming for operations to commence by pens, port administration offices and roads and to the South deposit in 2013. The concentrate will utilities) funded by the State and Commonwealth Q4 2013. be trucked to Bemax’s Bunbury Mineral Separation Governments and private use infrastructure (at Expenditure: $600m. Plant for final processing. least one Cape Class iron ore berth, as well as Employment: Construction: 600; Operation: 65 Expenditure: $35m. associated materials handling equipment and rail Employment: Construction: 100; Operation: 30 infrastructure) funded by Oakajee Port and Rail Pty Ltd. The Port will also include provision for a Electricity Jangardup South - Heavy Mineral Sands Mine non iron ore berth in the future to provide import / Bemax Cable Sands (WA) Pty Ltd export capability for value-adding industries in the Collie - Bluewaters III and IV, The Jangardup South minerals deposit is situated Oakajee Industrial Estate. A northern railway will Coal Fired Power Stations 54km south of the Nannup township and adjacent link the port to mining tenements north-east of Griffin Energy Pty Ltd to the D’Entrecasteaux National Park. Cable Sands Geraldton and a southern railway will link the mining Griffin Energy is planning to expand the Bluewaters estimates that the deposit would provide 2Mt of tenements to the south-east. The northern rail line will be operated by Oakajee Port and Rail though Power Station Project with two additional 208MW minerals. Feasibility and environmental studies are an open access regime. Oakajee Port and Rail has well advanced. An environmental impact statement coal-fired power stations at the Coolongatta now identified three foundation customers with an Industrial Estate, near Collie. Commissioning of the for the project is being prepared. expected initial throughput of 45Mtpa and delivered Bluewaters III base-load power station is expected Expenditure: $60m. its draft bankable feasibility study to the State for by late 2013 and commissioning of Bluewaters IV Employment: Construction: 100; Operation: 50 consideration. Expenditure: $4b. by late 2015. Keysbrook - Heavy Mineral Sands Mine Employment: Construction: 2000; Operation: 300 Expenditure: $800m. Matilda Zircon Limited Employment: Construction: 600; Operation: 50 Matilda Zircon proposes to develop a mineral sands Iron Ore mine located near the township of Keysbrook, Mid West Region - Centauri 1 Power approximately 70km south of Perth. It has ore Great Southern Region - Southdown Eneabba Gas Limited (EGL) reserves of 41Mt, containing 1.2Mt of heavy mineral Magnetite Mine Eneabba Gas Limited is planning to develop a concentrate. The project is expected to produce Grange Resources Ltd 168MW Centauri 1 gas-fired turbine power station 40,000tpa of leucoxene and 47,000tpa of ilmenite, The Southdown Magnetite Mine is situated 90km near Dongara. Generation capacity can be increased high titanium ilmenite and zircon over its eight north east of Albany near Wellstead. Grange Resources Ltd is targeting a 2014 start up with to 365MW. The project is focused on supplying year mine life. Keysbrook received environmental approval in October 2009. Matilda’s applications for a revised production from 6.6Mtpa to 10Mtpa of additional volumes of energy for the developing development approvals have been refused by the magnetite concentrate. The slurry concentrate will Mid West iron ore industries. Besides sourcing gas Murray and Serpentine-Jarrahdale Shires, and have be transported via a 100km pipeline from Southdown from the Dampier to Bunbury Natural Gas Pipeline, been referred to the State Administrative Tribunal. to the Port of Albany for export and pelletising. The merger of Grange with Australian Bulk Minerals the company is working to develop an underground A determination from this process is now likely to brings significant magnetite mining and pelletising coal gasification gas supply for the facility. occur in early 2011. experience to the Southdown project. Albany Port Expenditure: $200m. Expenditure: $18m. Authority (APA) is expanding the Port to allow Employment: Construction: 100; Operation: 4 Employment: Construction: 35; Operation: 30 access by Cape size vessels and to increase berth,

30 This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. Projects Under Consideration storage and loading facilities to ship the Southdown Pilbara - FMG Central Pilbara (Solomon 2 and onshore wet gas pipelines, an onshore gas concentrate. The APA is waiting on the final and Western Hub) Project processing plant 15km southwest of Onslow, and appeals process and the Minister for Environment’s Fortescue Metals Group Ltd a sales gas pipeline connected to the Dampier-to- Statement. The current 6.6Mtpa mine and pipeline FMG’s Central Pilbara project is located in the Bunbury Natural Gas Pipeline. Daily production is environmental approvals were received by Grange Solomon 2 area (about 70km north of Tom Price) expected to be on the order of 200TJ. Construction in November 2009. Grange is aiming for an updated and the Western Hub (west Solomon) in the Pilbara. is expected to start in late 2010, and gas production prefeasibility study to be completed by late 2010 To date, Solomon 2 has identified resources of to commence in early 2013. and bank feasibility studies by late 2011 to allow 1.1 billion tonnes, with a target of 2 billion tonnes, Expenditure: $1b. the expansion to 10Mtpa. comprising channel iron, bedded Brockman and Employment: Construction: 300 Expenditure: $1.7b. detritals iron deposits. Start up production from Solomon 2 of 20Mtpa is scheduled for 2014, with Pilbara - Wheatstone LNG Development Employment: Construction: 2000; Operation: 600 aspirations to expand to around 200Mtpa by 2017 Chevron Australia Pty Ltd Mid West Region - Extension Hill Magnetite Mine (100 Mtpa from Solomon 2 and 100 Mtpa from Chevron is investigating the feasibility of an LNG Asia Iron Western Hub). The project comprises mines, a project based on its Wheatstone and Iago gas fields, new 250km railway linking the Solomon 2 mines to be located at Ashburton North, near Onslow. The Asia Iron has primary environmental approval to to berths and ship loading facilities in the 350Mtpa project will also process gas from sub-economic produce up to 10Mtpa of magnetite concentrate, multi-user Port Anketell. Capital expenditure is third party fields in the Carnarvon Basin. Chevron which will be transported by slurry pipeline to estimated at $7 billion. Transportation of ore from entered FEED (Front End Engineering Design) in the port of Geraldton for export. The company is the future Western Hub mines can be either on July 2009 with a Final Investment Decision planned currently seeking secondary approvals. FMG’s central rail or on the API rail. Western Hub for mid 2011. Gas to market is scheduled for Expenditure: $2b. mines are 250-300km via API rail and 280-320km 2015/16. The project will initially have two LNG Employment: Construction: 1000; Operation: 350 via FMG central rail. trains with a 10Mtpa capacity, expandable to five, Expenditure: $7b. and a 250 million cubic feet per day domestic Mid West Region - Jack Hills Expansion gas plant. Crosslands Resources Pilbara - Roy Hill Iron Ore Mine & Infrastructure Expenditure: $23b. Hancock Prospecting Pty Ltd Crosslands commenced trucking 1.5Mtpa hematite Employment: Construction: 5000; Operation: 400 from its Jack Hills operations to the port of Hancock Prospecting is developing the Roy Hill iron ore project located 105km north east of Newman. Geraldton in December 2006. Jack Hills Stage 2 Timber would involve an increase to 25-35Mtpa of hematite This project is expected to come into production and beneficiation feed ore. The ore would be in 2014 and will produce iron ore for over 20 years Mirambeena Timber Processing Precinct - transported by a new railway to a new deepwater after ramp up at 55Mtpa. The project includes the Engineered Strand Lumber development of the mine, a new railway and port port at Oakajee. A bankable feasibility study and Lignor Ltd facilities at Port Hedland. Environmental approval exploration drilling program on the Stage 2 project Lignor Ltd Lignor is proposing to develop an for Roy Hill mine Stage 1 was received in December is progressing. Engineered Strand Lumber ESL®/ Engineered 2009 and environmental approval for Stage 2 was Strand Board ESB® plant located at Mirambeena, Expenditure: $2b. received in March 2010. Roy Hill’s mining leases have about 15km north west from Albany. Further Employment: Construction: 450; Operation: 350 been approved. The Railway (Roy Hill Infrastructure tests are scheduled to improve the product and Pty Ltd) Agreement Bill 2010 was passed by both Mid West Region - Weld Range Iron Ore Mine production. A new strand mat forming head will houses of Parliament in October 2010. Sinosteel Midwest Corporation Limited be designed prior to the development of the press Expenditure: $7b. Sinosteel Midwest Corporation proposes to develop proper. Lignor is finalising its design of the new Employment: Construction: 1500; Operation: 750 a 15Mtpa iron ore mine at Weld Range 65km forming head which may obviate the need for a Demonstration Plant. If testing of the new strand southwest of Meekatharra, producing a mix of Pilbara - West Pilbara Iron Ore Project mat head is not successful, then a Demonstration hematite lump and fines. The project is expected API Management Pty Ltd Plant would need to be built before the construction to utilise a new rail line and a new deepwater port The Australian Premium Iron Joint Venture is of the Commercial Plant is undertaken. If this is the proposing to develop the West Pilbara Iron Ore facility at Oakajee. The company finalised a bankable case then Lignor will propose to delay the building Project. Stage 1 of the project is based on the feasibility study in July 2010. plans for the Demonstration Plant until early 2011. production of 30Mtpa of direct shipping iron ore Expenditure: $1b. Lignor’s Plants will use technology developed in from its Red Hill and Mt Stuart mine sites located Employment: Construction: 1000; Operation: 500 conjunction with the German engineering companies 35-80km south west of Pannawonica. The ore Siempelkamp or Dieffenbacher. Either Plant will will be exported via a new heavy haul railway to a Pilbara - BHPB Rapid Growth Project 6 produce a range of products for certification to the new multi-user port facility at Anketell. Subject BHP Billiton Iron Ore Pty Ltd Australian Building Code and overseas equivalents to the successful completion of feasibility and BHP Billiton Iron Ore announced on 29 January 2010 to allow firm off-take contracts to be finalised. Both environmental studies, and receipt of government early expenditure of US$1.73 billion (BHP Billiton the Demonstration Plant and Commercial Plant regulatory approvals, the company anticipates that share) to facilitate further growth. The funding will will source most of the timber from the extensive the first shipment will occur in 2014. allow early procurement of long lead time items and eucalypt plantations growing in the Albany region. Expenditure: $4b. detailed engineering to continue for infrastructure Following the anticipated successful testing of the items such as the expansion of the inner harbour at Employment: Construction: 2000; Operation: 700 new forming head will allow construction of the Port Hedland and to progress rail track dual tracking Commercial Plant to commence in the first quarter work. Studies are continuing for the Company’s Oil & Gas Developments of 2013. Expenditure: $276m. future growth plans. Carnarvon Basin - Pluto LNG Project Expansion Expenditure: $2.144b. - Trains 2 & 3 Employment: Construction: 350; Operation: 125 Woodside Energy Pilbara - Cape Lambert Iron Ore Project Uranium MCC Australia Holding Pty Ltd Woodside’s master planning studies have confirmed that the Pluto LNG Park can accommodate an MCC Australia Holding Pty Ltd (MCCAH) is Mid West Region - Yeelirrie - Yeelirrie Uranium expansion of up to five LNG trains. This gives developing a 15Mtpa iron ore (magnetite) BHP Billiton Yeelirrie Development Woodside the opportunity to consider both equity gas Company Pty Ltd concentrate project at Cape Lambert and aims to development and other resource owner (ORO) gas BHP Billiton proposes to develop the Yeelirrie ship its first ore by 2015. The Project comprises a supply at the Pluto LNG Park. Onshore FEED studies Uranium Project in the North-eastern Goldfields, proven JORC compliant 1.9bt iron ore resource and for Pluto Train 2 and Train 3 are now complete and near Wiluna. The proposal entails open cut mining exploration licences covering 369 square kilometres. contractor selection processes are underway. The Project would consist of a beneficiation plant of shallow deposits of uranium ore, treatment in a (A$1b), 300MW power plant, a port for exporting Carnarvon Offshore Basin - Macedon plant to be established at the site, and development concentrate (A$1b) and other related infrastructure. Domestic Gas Project of associated infrastructure. The project would MCC has completed feasibility studies for the BHP Billiton Petroleum (Australia) produce up to 5,000tpa uranium oxide concentrate over about 30 years. The formal environmental port, power supply, water supply, accommodation Pty Limited impact assessment process was initiated in 2009 and general site infrastructure. The mine and The Macedon gas field, about 90km west of Onslow, and the project Environmental Scoping Document processing studies are progressing. The company was discovered in 1992 during drilling of the West was approved in May 2010. The Company plans to commenced native title negotiations with the Muiron-3 well and is estimated to contain a gas resource of up to 600bcf. BHP Billiton Petroleum submit its draft ERMP in March 2011 and to achieve Ngarluma Aboriginal people in March 2010. A draft (Australia) Pty Ltd and Apache Energy Limited are all government approvals by end 2012. Construction environmental scoping document was submitted in currently progressing the necessary approvals is expected to commence in early 2013 and mining in June 2010 to the EPA. for a domestic gas project for Western Australia. 2014. The uranium oxide will be transported to South Expenditure: $3.7b. The development will involve a number of sub- Australia by road for export to overseas markets. Employment: Construction: 1000; Operation: 800 sea gas wells connected to the gas field, offshore Employment: Construction: 700; Operation: 300

All conversions from foreign currencies were calculated at the latest available rate. 31 Yarrie Hashimoto

Significant resource projects in Western Australia CoobinaCr Roy Hill 1 18 exRidge Mo Cu

Visit us online Wheelarra Christmas Creek 23/24/25 Spinif

Western Australia continues to lead the way as Australia’s premier resources NullagineCID Molybdenum Nickel Lead Palladium Platinum Tantalum Silver Gold Limestone Titanium Vanadium Zinc Zirconium Chromium Copper Iron natural gas Liquefied

Prospect can be downloaded free of investment destination. There are currently more than A$150 billion worth of SpinifexRidge Nullagine/Millennium COMMODITIES Ag...... Au...... Cr...... Cu...... Fe...... LNG...... Lst...... Mo...... Ni...... Pb...... Pd...... Pt...... Ta...... Ti...... V...... Zn...... charge from the Internet by visiting the projects either committed or under consideration for the State during the next Zr...... website of the Department of Mines and few years. These will create more than 45,000 construction jobs and 10,500 HopeDowns 4 Petroleum at: www.dmp.wa.gov.au permanent jobs. MindyMindy CloudBreak Mt Whaleback

All conversions from foreign currencies were calculated at the latest available rate. Iron Valley Mt Webber Marillana / Brockman Panorama –Sulphur Springs ZnCu Pb HopeDowns 1 as pipeline / g Pardoo Rhodes Ridge Proposed /oil gas pipeline Oil GlacierValley Yandi / BHPBYandi Wonmunna Processing plant Significant gas fielddiscovery Gas Oil Oil and gas Port Irrigation/ water/ desalination Giles Mini

Project Value Employment Ridley NON-MINERAL SYMBOLS NON-MINERAL PETROLEUM SYMBOLS PETROLEUM Yandicoogina HI / Abydos

(estimated A$m) Construction Permanent Salt Poondano Western 4 PortHedland Prospect Alumina Koodaideri MiningArea C Subscription/Change of address BHP Billiton Worsley Alumina - Refinery Expansion 2500 1500 200 WodginaTa Sub Total 2500 1500 200

ABN: 69 410 35 356 MurraysHill West AngelasWest Railway Au (orasshown) Au Ni (or Ni as shown) Ti–Zr (or asshown) Ti–Zr Power plant Processing plant Steel Steel alloy metal Iron andCoal lignite Industrial mineral Iron and Steel Precious metal Speciality metal Base metal Uranium Wodgina MINERAL SYMBOLS MINERAL Asia Iron - Extension Hill Magnetite Mine 2000 1000 350 Australian Premium Iron Joint Venture - Iron Ore Mine 4000 2000 700 Port Port Hedland

BHP Billiton Iron Ore Rapid Growth Project 5 4800 3500 - Marandoo Investigator Narvik Baker Monty Name: BHP Billiton Iron Ore Rapid Growth Project 6 2144 - - Josephine Lee Ulidia CITIC Pacific - Cape Preston Mine and Processing Rose

5200 4000 500 Firetail TureeSyncline Central Projects Channar WhimCreek Cu ZnPb z Cliffs Asia Pacific Iron Ore - Koolyanobbing Iron Ore Price Tom Gudrun

320 - - Harriet Kings Upgrade Eastern Range Balla BallaFe VTi West West Cycad LittleSandy WesternTurner Syncline

Crosslands Resources - Jack Hills Stage 2 Hematite Bambra 2000 450 350

Mine BambraEast

Position: Simpson Pedirka Fortescue Metals Group - Mine, Rail and Port Project - - 3200 Victoria Paraburdoo SouthPlato Brockman 2 Serenity North AlkimosNorth Fortescue Metals Group - Solomon Project 4000 1000 1000 Rocklea–Hardey Silvergrass Zephyrus Salt Creek ZnCu Pb Wonnich Barrow Island Brockman 4 WonnichDeep Organisation: Grange Resources - Southdown Magnetite Mine 1700 2000 600 Sherlock Bay Western Range DoubleIsland

Hamersley Iron Pty Limited - Brockman 4 2000 1500 - CapeLambert Nammuldi GorgonGas Pilbara/ Flinders CapeLambert Hancock Prospecting - Iron Ore Mine - Roy Hill 7000 1500 750 I Barrow BeasleyRiver Address: C INSET 0 5 km

Karara Iron Ore Project 1975 1500 500 Anketell–Dixon Island WhundoZn Cu

MCC Cape Lambert Iron Ore Project 3700 1000 800 RadioHill Ammonium Nitrate NWSVLNG Robe River Mining Co Pty Ltd - Mesa A 1000 - 220 Forestier NewDesalination

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Sinosteel Midwest Corporation - Weld Range LegendreNorth 1000 1000 500 LegendreSouth Hematite Mine Angel Ajax BungarooCreek rker Point

Sub Total 42839 20450 9470 Pluto LNG LambertDeep Type of business: Pa Munni Munni Pt Pd Middle RobeMesas Lambert DampierSalt Cossack Dampier ea Devil Creek Gas

Nickel/Cobalt Hurricane Mutineer Sage Exeter Wana Hermes Montague Ravensthorpe Nickel Operation 150 200 600 Paulsens MesaJ Gnu Egret Phone number: Sub Total 150 200 600 Wandoo ou Stag Saffron WestPilbara Perseus 100 Eaglehawk

Oil, Gas and Condensate Carib Reindeer Chamois

Apache - Devil Creek Project 800 200 20 Gaea Tusk Persephone

Email Oryx wynSouth / Pueblo Athena Sino/ Citic CapePreston

Apache - Van Gogh Oil 700 - 80 A Mesa Corvus Tidepole Goodwyn Good Balmoral South CapePreston Pellet

BHP - Macedon 1000 300 - Capella Please tick the appropriate box Searipple Dixon/ West Dixon Dockrell Please add me to your mailing list to receive BHP Billiton - Pyrenees Oil Project 2000 - - NorthRankin Browse LNG Precinct 30000 6000 400 Mardie Pemberton Prospect magazine. I would like a subscription for Warramboo Kilometres

one year @ $12 (incl. GST) Chevron - Wheatstone LNG 23000 5000 400 Keast Wilcox Echo Yodel / two years @ $22 (incl. GST) Gorgon Joint Venture Gas Processing Project 43000 3500 300 25 50 75 Nasutus

North Rankin Redevelopment 5000 - - Rankin/ Sculptor Cyrano Iago/ North Tryal Rocks three years @ $32 (incl. GST) C SEE INSET Flinders Shoal Wheatstone Woodside - Pluto LNG Plant 12000 4000 300 Cadell Onslow Salt 0 Pasco Onslow My cheque, made out to the Department of Mines and Brunello

Woodside Energy - Cossack Wanaea Lambert Hermes I Barrow Eris Petroleum, is enclosed OR please debit the amount to 1800 - - Saladin Xena

(CWLH) Redevelopment Project Ashburton North Crest Manyingee WestRocksTryal Skate Julimar my credit card using the following details: Macedon Gas John Brookes Maitland Sub Total 119300 19000 1500 Pluto SouthChervil Halyard Australind Type of card: Visa Bankcard Mastercard Other Cowle Roller Urania Rosella

AngloGold Ashanti/Independence Group - Spar 700 700 400 Coaster Woollybutt

Tropicana Gold Project Gorgon Orthrus EXPORT PDF IN CMYK AND AT 600DPI AT AND EXPORT PDF IN CMYK WheatstoneLNG Corowa Expiry date BHP Billiton - Yeelirrie Uranium - 700 300 Clio

This form will become a tax invoice for GST purposes when payment is made. Nimrod Outtrim Chrysaor / Dionysus Sappho 1 Burrup Nitrates ammonium nitrate 600 600 65 Geryon / Callirhoe Blencathra

Change of address Griffin Energy - Bluewaters III and IV Coal Fired Maenad 800 600 50 Satyr (please make changes required on one of your old labels). Power Stations Achilles Martell Rivoli Hamersley Iron 7 Mile Power Station 700 - - JanszIo

Please photocopy or cut coupon and mail to: Macedon Larsen Exmouth Io SouthIo Stickle Leatherback Van Gogh Van Prospect subscriptions Oakajee Port, Rail and Industrial Estate 4000 2000 300 Novara Ravensworth Vincent Pyrenees Information Centre Ord East Kimberley Expansion Project 415 218 - Chandon Department of Mines and Petroleum Perdaman Chemicals & Fertilisers - Collie - Scafell LarsenDeep Enfield Coniston 3500 1500 200 Rough Range Mineral House, 100 Plain Street Coal-to-Urea Plant Yellowglen East Perth, Western Australia 6004 CapeRange Lst Windimurra Vanadium Project - Vanadium Pentoxide

500 350 120 Laverda Mine and Processing Plant Eskdale Stybarrow Sub Total 11215 6668 1435 TOTAL 176004 47818 13205 $A20 MILLION ARE ARE SHOWN RED IN MILLION $A20 ARESHOWN IN PURPLE AND MAINTENANCE ONPROJECTSCARE PROPOSED OR POTENTIAL PROJECTS WITH A CAPITAL EXPENDITURE GREATER THAN EXPENDITURE GREATER CAPITAL A PROJECTS WITHPROPOSED OR POTENTIAL OR ANTICIPATED VALUE OF PRODUCTION GREATER THAN $A10 MILLION ARE ARE SHOWN BLUE IN MILLIONTHAN $A10 PRODUCTIONOF GREATER VALUE ANTICIPATED OR Project labels: Project ACTUAL AN DEVELOPMENTUNDER WITH OR CURRENTLY OPERATING PROJECTS INSETB Northwest Shelf / Pilbara Region Major Resource Projects — December December 2010 Projects — Resource Major Scarborough Thebe EXPORT PDF IN CMYK AND AT 600DPI

MINERAL SYMBOLS PETROLEUM SYMBOLS COMMODITIES INSET C Precious metal Gas Ag...... Silver Major Resource Projects — December 2010 0 5 km Au (or as shown) Oil Au...... Gold Wonnich Steel alloy metal Cr...... Chromium Wonnich Deep Bambra Ulidia Oil and gas Northwest Shelf / Pilbara Region Ni (or as shown) Significant gas field discovery Cu...... Copper Mutineer Fe...... Iron Fletcher Speciality metal Processing plant Exeter Bambra East Lee Ti–Zr (or as shown) LNG...... Liquefied natural gas Rose Oil / gas pipeline INSET B Harriet Base metal Lst...... Limestone Hermes North Alkimos Monty Proposed oil / gas pipeline Eaglehawk Lambert Deep Iron Mo...... Molybdenum Persephone Lambert Gudrun Josephine Ni...... Nickel Martell Athena Egret Coal and lignite NON-MINERAL SYMBOLS Larsen Deep Montague Angel Baker Pb...... Lead Thebe Larsen Capella Uranium Cossack Zephyrus Irrigation / water / desalination Pd...... Palladium Searipple Forestier Simpson Industrial mineral North Rankin Ajax Port Pt...... Platinum Perseus Wanaea South Plato Power plant Chandon Gaea Legendre North Ta...... Tantalum Echo / Yodel Hurricane Pedirka Processing plant Goodwyn Legendre South Ti...... Titanium Keast Goodwyn South / Pueblo Double Island V...... Vanadium Yellowglen Rankin / Sculptor Tidepole Little Sandy Zn...... Zinc Dockrell Victoria Urania Gorgon Gas West Cycad Zr...... Zirconium Wheatstone Dixon / West Dixon Jansz Io Pluto Pemberton Sage Barrow Island Saffron Barrow I Narvik Geryon / Callirhoe Eris Iago / North Tryal Rocks Scarborough Io South Reindeer Xena Wilcox Gnu Caribou Chrysaor / Dionysus Brunello Corvus Wandoo Maenad Orthrus Pardoo Julimar Ridley Tusk Port Hedland Port Hedland Achilles West Tryal Rocks Salt Clio Oryx Stag Chamois Poondano Gorgon John Brookes SEE INSET C Yarrie Satyr Rosella Anketell – Dixon Island Pluto LNG NWSV LNG Cape Lambert Maitland Parker Point Dampier Ammonium Nitrate Spar Halyard Balla Balla Fe V Ti Sappho 1 New Desalination Cape Lambert Dampier Salt Salt Creek Zn Cu Pb Sherlock Bay Whim Creek Cu Zn Pb Spinifex Ridge Barrow I Cape Preston Cape Preston Pellet Spinifex Ridge Mo Cu Devil Creek Gas Woollybutt Radio Hill Pasco Whundo Zn Cu Flinders Shoal Sino / Citic Abydos Panorama – Sulphur Springs Zn Cu Pb Balmoral South Munni Munni Pt Pd Wodgina Wodgina Ta Glacier Valley

Mardie Nasutus South Chervil Coniston Nimrod Cyrano Novara Australind Cadell Eskdale Van Gogh Saladin Mt Webber Vincent Enfield Corowa Crest Stybarrow Ravensworth Cowle Stickle Outtrim Laverda Macedon Blencathra Skate Scafell Roller Onslow Warramboo Middle Robe Mesas Pyrenees Coaster Onslow Salt Mesa A Mesa J Leatherback Wheatstone LNG Ashburton North Macedon Gas Nullagine/Millennium Bungaroo Creek Exmouth West Pilbara Investigator Nullagine CID Cape Range Lst Rivoli Pilbara / Flinders Firetail Murrays Hill Serenity Kings

Cloud Break Silvergrass Christmas Creek Nammuldi Brockman 2 Roy Hill 1 Manyingee Rough Range Koodaideri Marillana / Brockman Brockman 4 Paulsens Marandoo Western Turner Syncline Yandi / BHPB Project labels: Beasley River Western 4 Iron Valley Tom Price PROJECTS OPERATING OR CURRENTLY UNDER DEVELOPMENT WITH AN ACTUAL Yandicoogina / HI Mindy Mindy OR ANTICIPATED VALUE OF PRODUCTION GREATER THAN $A10 MILLION ARE SHOWN IN BLUE Railway PROPOSED OR POTENTIAL PROJECTS WITH A CAPITAL EXPENDITURE GREATER THAN Mining Area C Hope Downs 1 $A20 MILLION ARE SHOWN IN RED Rocklea–Hardey PROJECTS ON CARE AND MAINTENANCE ARE SHOWN IN PURPLE Rhodes Ridge Wonmunna Hope Downs 4 Turee Syncline Central West Angelas Western Range Paraburdoo Eastern Range Giles Mini 23/24/25 Channar 18 Hashimoto Mt Whaleback Wheelarra 0 25 50 75 100

Kilometres Coobina Cr Sunrise Major Resource Projects — December 2010 Troubadour Kelp Deep Jahal Kuda Tasi Laminaria Corallina Project labels: Chudditch INSET A Balline Grt Hill 50 Laminaria East Krill ElangKakatua 0 50 km Tallering Peak Yogi PROJECTS OPERATING OR CURRENTLY UNDER DEVELOPMENT WITH AN ACTUAL Bluff Port Gregory Grt Buller Hingkip OR ANTICIPATED VALUE OF PRODUCTION GREATER THAN $A10 MILLION ARE SHOWN IN BLUE BayuUndan Gullewa Au Cu PROPOSED OR POTENTIAL PROJECTS WITH A CAPITAL EXPENDITURE GREATER THAN Oakajee Golden Grove Cu Zn Pb Geraldton Eradu Pig Iron $A20 MILLION ARE SHOWN IN RED Oliver Audacious Narngulu Synthetic Rutile Alinta Wind Farm Minjar – Mt Mulgine Tenacious Katandra Geraldton Brick Mount Horner PROJECTS ON CARE AND MAINTENANCE ARE SHOWN IN PURPLE CashMaple Jabiru DongaraCorybas Irwin River Mungada Swan ChallisCassini Eremia Yardarino Centauri Vesta Hovea Mondarra Karara Puffin Xyris Apium Koolanooka South Skua Talbot Xyris South Dongara Swallow Swift North Jingemia Tarantula Three Springs Tlc Mt Gibson Beharra Springs Padthaway MontaraBilyara Cliff Head Beharra Springs North Mt Gibson Crux Tahbilk Prometheus / Rubicon Petrel Evandra North Yardanogo Redback South Eneabba Argus Woodada Frigate Coolimba Central West Tern Warro Echuca Shoals THE RESOURCES MAP IS STILL BEING UPDATED.Kronos Mimia Cornea Cooljarloo North Badgingarra Wind Farm Ichthys West Moora Chert Prelude Emu Downs Wind Farm Torosa Ichthys Cape Bougainville Burnside Cooljarloo Cataby Blacktip Kwinana–Rockingham Brecknock Alumina refinery Yerecoin Calliance Gwydion Mitchell Plateau Turtle Ammonium nitrate Gingin West Wandoo BP oil refinery Bindoon North Cement and lime Neerabup / NewGen Chandala Synthetic Rutile Chlor alkali Wesbeam Timber Ord Irrigation Expansion Desalination Malaga Brick Middle Swan Brick Fused alumina Caversham Tile Midland Brick Wyndham Fused zirconia PERTH Airport Brick Ord Irrigation Fremantle Cockatoo Island HIsmelt Fe Armadale Brick Irvine Island Sorby Hills Pb Zn Cu LNG Cardup Brick Koolan Island Kwinana Bulk Lake Argyle Hydro LPG Terminal Keysbrook Pinjarra Al Speewah V Ti Fe Nickel refinery Huntly Sparks Kln Speewah Fl Power station Wagerup Al Boddington Au Cu Oobagooma Binningup Desalination Willowdale Argyle Sodium cyanide Saddleback Point Torment Chlor alkali Point Torment Titanium pigment Silicon smelter Kemerton Sisd Worsley Al Bluewaters 1-2 Derby Zirconia Titanium pigment Collie Lloyd Bunbury Ewington Browse LNG Precinct Boundary West Terrace Savannah Australind Titanium Pigment Collie–Shotts Urea Ellendale Wespine Timber Muja Sundown Dardanup Premier Blina Copernicus Wesfi Timber Gwindinup Muja Timber Panton Pt Pd Capel Synthetic Rutile Happy Valley Broome Vasse CBM Greenbushes Li Vasse Duchess–Paradise Whicher RangeTutunup South Koongie Park Zn Cu Pb

Manjimup Timber Kapok West – Lennard Shelf Pb Zn Ag

SEE INSET B Admiral Bay Zn Pb (inside cover)

Scarborough Brederode Coyote Alaric

Nifty Cu Big Hill Tungsten Telfer Au Cu MINERAL SYMBOLS Woodie Woodie Mn O'Callaghans W Cu Precious mineral Mesa Ant Hill Mn Maroochydore Cu Co Dmd Kintyre Lake Auld K Precious metal Au (or as shown) Lake Mackay K Steel alloy metal Nicholas Downs Mn Ni (or as shown) Speciality metal Lake Disappointment K Ti–Zr (or as shown) Davidson Creek Robertson Range Base metal Prairie Downs Zn Pb Ag Iron Alumina Bx (or as shown) Cape Cuvier Lake MacLeod Gp Coal and lignite Lake MacLeod Salt Uranium Abra Pb Cu Zn Industrial mineral Beyondie Construction material Plutonic Processing plant Fortnum Doolgunna Cu Au PETROLEUM SYMBOLS Gas Jack Hills Oil Shark Bay Salt West Musgrave Wingellina Oil and gas Magellan Pb Jundee–Nimary Wiluna Significant gas field discovery Radio astronomy Meekatharra Wiluna West observatory Gabanintha V Ti Fe Lake Way Processing plant Coburn Hillview Honeymoon Well Weld Range Wilsons– Hinkler Well Mt Keith Oil / gas pipeline Burnakura Lake Maitland NowthannaGidgee Proposed oil / gas pipeline Yeelirrie Cliffs Bronzewing Barrambie V Ti Fe Yakabindie Moolart Well Duketon NON-MINERAL SYMBOLS Cosmos Leinster Lawlers Power plant Agnew Darlot SEE Waterloo Thatcher Soak Radio astronomy Lawlers MgCO3 Marshall Pool Irrigation / water / desalination INSET A Windimurra V Fe Sinclair Bentley Zn Pb Cu Mt Windarra Laverton–Sickle Port Jaguar Zn Cu Pb Mt Weld Phos King of the Hills Brightstar Cashmere Downs Leonora / Navigator Mikado Sons of Gwalia COMMODITIES MgCO3 Mt Weld REE Cyclone Ag...... Silver Mt Mason Murrin Murrin / Granny Smith – Wallaby GME Murrin Sunrise Fortitude Tropicana Al...... Alumina Murrin Dam Au...... Gold Bx...... Bauxite Lake Giles Highway Jump Up Dam CBM...... Coal Bed Methane Windarling Goongarrie Scotia Mulga Rock Co...... Cobalt Range Carnegie Paddington South Laverton – Carosue Dam Cr...... Chromium Mt Jackson Canegrass Cawse Lindsays Find Ponton Cu...... Copper Carina Siberia Black Swan Frogs Leg Navajo Chief Kanowna Belle Dmd...... Diamond Kundana – Kundana East Kalgoorlie Nickel Smelter Mt Monger / Silver Lake Fe...... Iron Koolyanobbing White Foil Randalls Fl...... Fluorite Superpit Aldiss Coolgardie–Redemption Blair Carnilya Hill Rawlinna Lst Gp...... Gypsum Edna May Nepean Long–Victor Grt...... Garnet South Kal St Ives Kambalda Nickel Concentrator K...... Potassium Marvel Loch Nevoria Otter–Juan Beta–Hunt Mt Caudan Wattle Dam Bald Hill Ta Kln...... Kaolin Spargoville Lanfranchi Collgar Windfarm Trident Li...... Lithium PERTH Mariners LNG...... Liquefied natural gas Bounty Mt Thirsty LPG...... Liquefied petroleum gas Maggie Hays Central Norseman Flying Fox Lst...... Limestone Lounge Lizard Spotted Quoll MgCO3..Magnesite Mn...... Manganese Salmon Gums Mo...... Molybdenum Ni...... Lead Pb...... Nickel Scaddan Mt Cattlin Li Ta Pd...... Palladium Ravensthorpe 0 100 200 300 400 Phos...... Phosphate Phillips River – Trilogy Au Cu Pt...... Platinum Esperance REE...... Rare earth elements Kilometres Sisd...... Silica sand Jangardup South Manjimup Timber Ta...... Tantalum Southdown Ti...... Titanium Tlc...... Talc Mirambeena Timber V...... Vanadium Albany W...... Tungsten Albany Wind Farm Zn...... Zinc Zr...... Zirconium