WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE December 2006–February 2007 $3 (inc GST)

LIQUEFIED NATURAL GAS French company Total in LNG push for Browse Basin

TITANIUM Scope for a major titanium metals industry for the State

INNOVATION AND TECHNOLOGY Exciting opportunities for the resources sector in Western Australia Print post approved PP 665002/00062 approved Print post DEPARTMENT OF INDUSTRY AND RESOURCES Investment Services 1 Adelaide Terrace East Perth, Western Australia 6004 Tel: +61 8 9222 3333 • Fax: +61 8 9222 3862 Email: [email protected] www.doir.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 Western Australian Trade Office From the Director General 93 Jolly Maker Chambers No 2 9th floor, Nariman Point • Mumbai 400 021 INDIA Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 Email: [email protected]

India — Chennai Innovative talent spurs the WA resources sector Western Australian Trade Office - Advisory Office 1 Doshi Regency • 876 Poonamallee High Road Kilpauk • Chennai 600 084 • INDIA to new heights Tel: +91 44 2640 0407 • Fax: +91 44 2643 0064 Email: [email protected] For the record, the value of mineral and petroleum sales in Western Australia soared Indonesia — Jakarta to an all-time record figure of $43.2 billion during 2005-06. That’s a staggering Western Australia Trade Office $118 million per day, or nearly $5 million an hour, representing a 29 per cent JI H R Rasuna Said Kav - Kuningan Jakarta 12940 • INDONESIA increase in the value of output over the previous year. Tel: +62 21 5290 2860 • Fax: +62 21 5296 2722 Email: [email protected] The exponential growth of the resources sector in recent years is due to a number of Japan — Tokyo factors, not least of all the inventiveness of Western Australians and the clever use of Government of Western Australia, Tokyo Office technology to maximise output and efficiency within the industry. 13th floor, Fukoku Seimei Building 2-2-2 Uchisaiwai-cho Chyoda-ku • TOKYO 100-0011 JAPAN Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 The common perception of “dig it up and ship it out” ignores some very serious Email: [email protected] brain power that goes into keeping the State’s rich mining and petroleum resources Japan — Kobe internationally competitive. Western Australian Government Office 6th floor, Golden Sun Building • 3-6 Nakayamak-dori 4-Chome Chuo-Ku • Kobe 650-0004 JAPAN So innovation and technology in the Western Australian resources sector is the feature Tel: +81 78 242 7705 • Fax: +81 78 242 7707 of this edition of Prospect. Email: [email protected] Malaysia — Kuala Lumpur The iron ore industry is a good example, where technology and innovation is embedded Western Australian Trade Office 4th floor, UBN Tower • 10 Jalan P Ramlee in every facet of operations. For example, the Pilbara rail management systems are KUALA LUMPUR 50250 MALAYSIA regarded as amongst the most advanced in the world; the HIsmelt plant at Kwinana Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 features breakthrough technology in iron making; and on the environmental front, BHB Email: [email protected] Billiton and CSIRO have teamed up to use spectral scanning to remotely measure the Middle East — Dubai Western Australian Trade Office • Emarat Atrium impact of iron ore dust on mangroves in Port Hedland harbour. PO Box 58007 • Dubai • UNITED ARAB EMIRATES Tel: +971 4 343 3226 • Fax: +971 4 343 3238 And there are many other examples in the past, such as the efforts of Dr Bob Becher, E-mail: [email protected] the Western Australian mineral research scientist, who pioneered the technology by People’s Republic of China — Shanghai which synthetic rutile is now produced from ilmenite. Western Australian Trade & Investment Promotion Shanghai Representative Office • Room 2208, CITIC Square 1168 Nanjing Road West • Shanghai 200041 The innovation and technology feature in the current edition of Prospect provides an PEOPLE’S REPUBLIC OF CHINA Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 insight into some of the many new and exciting inventions and R&D initiatives that are Email: [email protected] now unfolding and will have a positive impact on the Western Australian resources People’s Republic of China — Hangzhou sector. The feature begins on page 7. Western Australian Trade & Investment Promotion Hangzhou Representative Office Finally, I would like to pay tribute to the late Sir Laurence Brodie-Hall for the huge Room 910 • World Trade Office Plaza Zhejiang World Trade Centre contribution he made to resources development in Western Australia during a long and 15 Shuguang Road • Hangzhou 310007 distinguished career. To his wife Jean and other members of the Brodie-Hall family, PEOPLES REPUBLIC OF CHINA Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 may I offer my sincere condolences on the loss of a great man. Email: [email protected]

South Korea — Seoul Dr Jim Limerick Western Australian Trade & Investment Office 11th floor, Kyobo Building 1 Jongro 1-Ga, Jongro-Gu Seoul, SOUTH KOREA Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Prospect Cover photo: Western Australian inventor Derek Hall with a Email: [email protected] Western Australian Prospect magazine is published quarterly sample of his multi-functional Test Pup jumper spools, with by the Western Australian Government’s Department of Burrup Fertilisers’ ammonia plant near Karratha in the Taiwan — Taipei Industry and Resources (DoIR). background. Turn to page 9 for more details. WA Business Development Manager Australian Commerce & Industry Office Editorial management: John Terrell, DoIR Communications and Suite 2606, International Trade Building Marketing Division. Tel: (08) 9222 3804 • Fax: (08) 9222 3069 #333 Keelung Road Section 1 • Taipei 110 TAIWAN Tel: +886 2 8780 9118 ext 216 • Fax: +886 2 2757 6707 Email: [email protected] Disclaimer Prospect has been compiled in good faith by the Department Thailand — Bangkok of Industry and Resources. Opinions expressed in Prospect are those WA Business Development Manager of the authors and do not necessarily represent the views, or have Australian Trade Commission • Australian Embassy the endorsement of the Department of Industry and Resources. The Department of Industry and Resources has used all reasonable endeavours 37 South Sathorn Road • Bangkok 10120 • THAILAND to ensure the material contained in this publication is correct, but it is Tel: +662 344 6337 • Fax: +662 344 6306 intended to be general in nature. No representation is made with regard Email: [email protected] to the completeness or accuracy of the information contained herein. The Department of Department of Industry and Resources disclaims any or all liability for United States — Los Angeles loss or damage whatsoever suffered or incurred resulting from the use of or reliance on information contained herein. Readers of this publication Industry and Resources Western Australian Trade and & Investment Office should make and rely on their own enquiries, research and judgements in Howard Hughes Centre, 6080 Centre Drive, 6th Floor making decisions affecting their own or any other persons interest. www.doir.wa.gov.au Los Angeles, CA 90045 USA Tel: +1 310 216 2827 / Fax: +1 310 216 5632 Email: [email protected] DEPARTMENT OF INDUSTRY AND RESOURCES Investment Services 1 Adelaide Terrace East Perth, Western Australia 6004 Tel: +61 8 9222 3333 • Fax: +61 8 9222 3862 Email: [email protected] www.doir.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 Western Australian Trade Office 93 Jolly Maker Chambers No 2 9th floor, Nariman Point • Mumbai 400 021 INDIA Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 Email: [email protected]

India — Chennai Western Australian Trade Office - Advisory Office 1 Doshi Regency • 876 Poonamallee High Road Kilpauk • Chennai 600 084 • INDIA 2 LNG — Big French petroleum company Total buys into Tel: +91 44 2640 0407 • Fax: +91 44 2643 0064 Email: [email protected] Ichthys gas field and may process the gas onshore and Indonesia — Jakarta export the resource as LNG. Western Australia Trade Office JI H R Rasuna Said Kav - Kuningan Jakarta 12940 • INDONESIA Tel: +62 21 5290 2860 • Fax: +62 21 5296 2722 3 Nickel — Experts predict a long sustained run for nickel Email: [email protected] in Western Australia. Japan — Tokyo Government of Western Australia, Tokyo Office 13th floor, Fukoku Seimei Building 4 Titanium metal — Western Australia has all the 2-2-2 Uchisaiwai-cho Chyoda-ku • TOKYO 100-0011 JAPAN Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 ingredients to support the development of a titanium Email: [email protected] metal plant. Japan — Kobe Western Australian Government Office 6th floor, Golden Sun Building • 3-6 Nakayamak-dori 4-Chome Chuo-Ku • Kobe 650-0004 JAPAN 7 - 15 INNOVATION AND TECHNOLOGY FEATURE Tel: +81 78 242 7705 • Fax: +81 78 242 7707 Email: [email protected] 16 Industry and Export Awards — Australian Gold Malaysia — Kuala Lumpur Western Australian Trade Office Reagents, Rio Tinto Iron Ore and Genalysis Laboratory 4th floor, UBN Tower • 10 Jalan P Ramlee KUALA LUMPUR 50250 MALAYSIA Services are all major winners in the 2006 WA Industry Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 Email: [email protected] and Export Awards. Middle East — Dubai Western Australian Trade Office • Emarat Atrium PO Box 58007 • Dubai • UNITED ARAB EMIRATES 17 Obituary — The passing of Sir Laurence Brodie-Hall Tel: +971 4 343 3226 • Fax: +971 4 343 3238 E-mail: [email protected] who was a major contributor of resources development

People’s Republic of China — Shanghai and education in Western Australia. Western Australian Trade & Investment Promotion Shanghai Representative Office • Room 2208, CITIC Square 1168 Nanjing Road West • Shanghai 200041 18 APEC on its way — In association with APEC, Perth PEOPLE’S REPUBLIC OF CHINA Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 will host a meeting of mining and resources ministers Email: [email protected]

People’s Republic of China — Hangzhou in February. Western Australian Trade & Investment Promotion Hangzhou Representative Office Room 910 • World Trade Office Plaza 19 Education — The WA Chamber of Minerals and Energy Zhejiang World Trade Centre 15 Shuguang Road • Hangzhou 310007 sponsors a highly successful visit to resource projects in PEOPLES REPUBLIC OF CHINA Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 the Pilbara by 14 secondary teachers from other parts of Email: [email protected] the State. South Korea — Seoul Western Australian Trade & Investment Office 11th floor, Kyobo Building 1 Jongro 1-Ga, Jongro-Gu Seoul, SOUTH KOREA Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Email: [email protected] INNOVATION AND TECHNOLOGY Taiwan — Taipei WA Business Development Manager Australian Commerce & Industry Office Suite 2606, International Trade Building Innovation and technology have traditionally #333 Keelung Road Section 1 • Taipei 110 TAIWAN Tel: +886 2 8780 9118 ext 216 • Fax: +886 2 2757 6707 been integral parts of Western Australia’s Email: [email protected] multi-faceted resources sector. This edition Thailand — Bangkok WA Business Development Manager Australian Trade Commission • Australian Embassy of Prospect provides many interesting 37 South Sathorn Road • Bangkok 10120 • THAILAND Tel: +662 344 6337 • Fax: +662 344 6306 examples from platform-free fields for Email: [email protected]

United States — Los Angeles the offshore petroleum industry to new- Western Australian Trade and & Investment Office Howard Hughes Centre, 6080 Centre Drive, 6th Floor generation digging equipment for mining. Los Angeles, CA 90045 USA Tel: +1 310 216 2827 / Fax: +1 310 216 5632 Email: [email protected] French dressing for promising Scott Reef Echuca Shoals (Torosa) Ichthys Brecknock Brecknock South

(Calliance) Scott Reef Echuca Shoals (Torosa) Ichthys Brecknock Ichthys LNG project Brecknock South (Calliance) Derby Derby Broome Broome

The involvement of giant French gave every indication that Total’s petroleum company Total in the involvement with Inpex in the project Ichthys gas field in the offshore would be good for Western Australia. Browse Basin is a positive for “They certainly have the operating Western Australia, raising hopes experience which is vital for a project of that gas won from the field will this magnitude,” Mr Tinapple said. be processed in the State’s far northwest corner. “We are talking about a sophisticated project that could cost as much as $8

Total, the world’s fourth largest publicly- billion to develop, and Total’s immense Total involvement: The involvement of Total in the Ichthys traded integrated oil and gas company operating experience in other parts of the project is likely to accelerate development of gas resources world is likely to accelerate development in the Browse Basin. The company has extensive worldwide with operations in 130 countries, recently LNG and other gas processing interests in 130 countries, announced an agreement with Japanese of the Ichthys project.” such as these in Qatar and Nigeria (as depicted above energy explorer Inpex to acquire a 24 per and below). cent interest in the Ichthys gas field. Mr Tinapple said the State would very Inpex is currently proposing that the much like to see the gas come ashore Ichthys project will involve offshore Inpex currently owns 100 per cent and feed into the domestic market or semi-submersible facilities and a subsea interest in Block WA 285-P, which lies provide local opportunities for LNG and pipeline to a land-based 6 Mt/a liquefied over the Ichthys gas field. Since its other downstream processing projects. natural gas plant and export facility. discovery in 2000, six appraisal wells A potential outcome is the establishment have been drilled, confirming the find’s of a LNG/gas processing hub that New technologies for gas-to-liquids rich gas and condensate potential. could incorporate undeveloped and as (GTLs) and di-methyl ether (DME), as well yet undiscovered gas fields within the as possibilities for domestic gas supplies, The Ichthys development plan consists offshore Browse Basin. are also being investigated. of an integrated field/liquefaction facility, and is scheduled to come on-stream Overall recoverable gas resources in As a global LNG operator, Total about 2012. the Browse Basin are estimated to be in has worldwide sales amounting to excess of 50 Tcf. 7.7 Mt/a, which is more than three The partnership between Inpex and times greater than Woodside, operator Total goes back to 1970 when they of Western Australia’s North West Shelf began developing the Mahakam block in (NWS) project. Indonesia, which supplies more than 70 per cent of feed gas for the Bontang plant, one Woodside is Australia’s largest of the world’s largest LNG facilities. publicly traded oil and gas exploration and production company with a market Bill Tinapple, the Director of the capitalisation of about $29 billion. Petroleum and Royalties for the As a one-sixth owner of the NWS Department of Industry and Resources, project, Woodside’s sales amount to 2 Mt of LNG annually.

 Prospect Experts predict a strong future for WA nickel

While nickel prices may Mr Hurley told delegates that even if the and construction, automotive recede below October’s “over the nickel price dropped back to US$18,000 and transport, and consumer goods top” levels of above US$32,000 a to US$20,000 a tonne it was still a “damn would be huge compared with Japan. tonne, there are still many good price” and about four times what it good years ahead for the nickel was in October 2001. Mr Barnett said 60 per cent of world industry in Western Australia. nickel production now came from Mr Barnett said there had been a sulphide mines. However, new laterite This view was shared by two experts at 26 per cent annual growth in nickel mines such as Ravensthorpe and consumption in China since 2000 — the Australian Nickel Conference in Goongarrie in Western Australia would and the country would continue to Perth in October — Brian Hurley, a man progressively alter this ratio. with 38 years in the sector, and Steve be a huge net importer of the Barnett, who is President of the commodity out to 2010, and most likely He said nickel demand would outstrip Toronto-based Nickel Institute. well beyond then. supply by 2010, which spells good news for Western Australian nickel Both see the increasing per capita use He said the per capita use of stainless of stainless steel from nation-building steel in China was mirroring that of mining companies. Many are countries like China and India as a Japan, but the population of China accelerating exploration and production catalyst for pushing the demand for was far greater. Hence the amount programs as fast as resources permit nickel to even higher levels over the of nickel to be consumed in China to take advantage of such buoyant next few years and beyond. in future for engineering, building times for the sector.

Nation building: As China continues to grow, so too will the demand for Western Australian nickel, which is used to make stainless steel for buildings, infrastructure and consumer goods.

 Prospect Titanium: a metal of the future WA a prime location for a future titanium metal plant

Under its Light Metals Flagship in the production of titanium dioxide titanium sheet in the manufacture of program, the Commonwealth pigment. This effectively eliminates corrosion-resistant equipment. Scientific and Industrial Research product wastage and recycling using CSIRO has also successfully used cold Organisation (CSIRO) is aiming to the Kroll process. Titanium powder is also a much higher valued product than spray technology to directly fabricate create a world-scale titanium metal titanium components such as ball industry in Australia by 2012. titanium sponge produced from the Kroll process. valves and pipes. Cold spray requires no intermediate processing of hazardous Western Australia is a logical location for such an industry given its vast natural To create a fully integrated titanium chemicals, and uses less energy and endowment of titanium minerals, industry CSIRO is also developing novel water than current fabrication processes. its strong manufacturing capability manufacturing processes using powder In parallel with the TiRO™ program, and synergies with local consuming metallurgy technologies. These have the CSIRO is developing an innovative industries. potential to give small to medium size enterprises a competitive edge in the technology for the more efficient and Western Australia produces nearly a manufacture of products. They also make cost-effective production of titanium quarter of the world’s titanium minerals traditional large-scale, energy-intensive alloys, the market for which is about 50 — 18 and 26 per cent of the world’s milled product plants an unnecessary per cent of the total titanium market. ilmenite and rutile respectively — and step in the manufacturing process. Interestingly, titanium alloys have a operations established in WA are already higher value than pure titanium, because involved in several parts of the value- Project leader Nigel Stone from CSIRO of the extra handling involved. adding chain. described the making of thin titanium sheet directly from power as the “holy The next steps Titanium is one of the most versatile grail” of titanium manufacture. light metals known, with ever- The TiRO™ technology has been increasing quantities being used in “A number of companies make sheet demonstrated to work satisfactorily aircraft, chemical and petrochemical by direct powder rolling, followed by through laboratory-scale testing. processing, offshore oil and gas, marine conventional and costly batch sintering, and desalination, as well as commercial but CSIRO technology is the only The next stage of the project is to build uses ranging from golf clubs to medical continuous process that I’m aware of,” a pilot-scale plant that is capable of implants and architecture. Dr Stone said. producing 50 kg of titanium daily.

The proposal to establish a cornerstone Industry experts estimate that a It is anticipated the cost may be in the titanium metal industry in Australia reduction of around $3/kg in the cost of region of $10 million to $12 million, and is based on new process technology titanium metal could double the market consequently CSIRO is seeking a suitable developed by CSIRO researchers. for non-aerospace applications. For industry partner with the capability to Known as TiRO™ the technology has the example, marine industries would progress the technology through to potential to halve titanium production have a high demand for low-cost thin commercialisation. costs and greatly streamline current processing methods.

TiRO™ is based on the same chemistry as the Kroll process — the traditional method for producing titanium metal — but is continuous, faster and eliminates many intermediate steps.

A key attribute of the TiRO™ process is its continuous production of titanium metal powder from titanium tetrachloride, the intermediary product The beat goes on: A newly installed titanium heart assist pump.

 Prospect Titanium: a metal of the future CSIRO scientists are developing a novel, low-cost process for titanium metal production based on a continuous process. Their vision is to further develop this breakthrough with the aim of halving production costs and paving the way for a revolution in titanium metal production WA a prime location for a future and fabrication. titanium metal plant Prospect Editor John Terrell reports …

Should the commercialisation of this The demand for titanium is greatly technology occur in Western Australia, a influenced by one of the largest broad range of industries could leverage consumers of titanium, the aerospace from the low-cost titanium and the industry. Since 2004 this industry has The CSIRO Light novel manufacturing technologies being experienced significant growth through Metals Flagship and developed by the CSIRO. These include the increase of orders of large aircraft Department of Industry WA industries already globally recognised such as the Airbus 380. Growth has and Resources are planning an for their capabilities, such as offshore been forecast to continue with Airbus information session on the TiRO™ petroleum, shipbuilding and other marine predicting passenger traffic to grow by technology and joint venture participation and general industries. Further, the skills 5.3 per cent per annum in the period in commercialisation proposals. and competencies in these industries 2004–2023. Boeing has also made similar Enquiries about this workshop should could transfer into the development predictions suggesting in the next be directed to: of new industry opportunities for the 20 years the world fleet of commercial State, such as the direct manufacturing aircraft will double and the amount of Steve Arnott — General Manager, of titanium parts for aero space and titanium used in each aircraft will also Investment Attraction, Department automotive applications. increase substantially. The emerging of Industry and Resources economies of China and India are +61 8 9222 3333 or The availability of titanium tetrachloride adding to the demand for titanium [email protected] from Western Australian titanium including new aircraft. dioxide producers Tiwest and Lyondell Raj Rajakumar — Director CSIRO make both Kemerton and Kwinana the Other markets for titanium metal Light Metals Flagship most favourable locations in Australia include industrial and military for the development and applications, both of which are also +61 3 9545 8625 or commercialisation of TiRO™. showing increasing demand. [email protected] Properties WA Applications Gas turbine engines of titanium synergies Airframes Excellent strength to weight ratio Large natural resources of titanium Space structures minerals Low density Thick section titanium Strong manufacturing capability Excellent natural corrosion resistance Heat exchanges Superior erosion resistance Multiple downstream processing Power generation possibilities High operational thermal conductivity Chemical processing Low modulus of elasticity Strong local markets for titanium Offshore oil and gas products Low coefficient of expansion Marine applications Non-magnetic Armor/Armament Biocompatible Medicine – prosthetics Automotive Sporting goods

Light and strong: The Airbus A380 weighs 276 tonnes when empty, with about 25 tonnes of its parts made of titanium. Boeing has sold more than 130 of the aircraft so far.

 Prospect Proposed rail route Jack Hills The long haul as Murchison Proposed rail route Jack Hills Oakajee Port Oakajee Port Metals hits the road Trucking route Trucking route Perth Road trains aplenty: Some of the heavy haulage vehicles that have been lined up to take high-grade hematite iron ore from Murchison Perth Metals’ Jack Hills deposit to Geraldton.

Murchison Metals, expects to have a railway Western Australia’s latest developed to deliver ore to iron ore producer, has a new deepwater port at assembled an impressive Oakajee, about 20 km north fleet of trucks to despatch of Geraldton. newly won ore from its Jack There are now seven iron ore Hills iron ore mine to the producers currently operating coast at Geraldton. in Western Australia, the others being BHP Billiton, The company has entered into Hamersley Iron, Robe River an agreement with Mitchell Mining, Portman Mining, Logistics to put 30 triple Channar Mining and Mt roadtrains on the road to haul Gibson Mining. the high-grade hematite iron ore 580 km from the mine to Behind them is Fortescue the port of Geraldton. port. Further, the trays and walls of Metals Group, which is currently engaged in a trial mining operation in the Murchison Metals Chairman the roadtrains are lined with a special material to minimising noise. Pilbara region’s Chichester Ranges, while Paul Kopejkta said his company had numerous other companies have various outlaid $10 million to purchase 30 triple He said the company had spent $12 plans in hand ranging from exploration to roadtrain trailers, while Mitchells would million sealing the Jack Hills–Cue road detailed feasibility studies. manage the road haul operation for a fee. to ensure higher levels of safety for truck The sourcing of Kenworthy prime movers drivers and others visiting the mine site. The iron ore deposits defined by and a workforce of drivers is being Murchison Metals exist along a line of undertaken by Mitchells. Initial shipments of iron ore from the rolling hills stretching about 63 km in Jack Hills resource are going to China, the north-eastern part of the Mid West Mr Kopejkta proudly declared: “These although Murchison Metals has lined up region, approximately 380 km inland from are not your normal roadtrains; they additional customers in South Korea and Geraldton. are specially designed for the unique Japan, while steel mills in Europe have requirements of this project.” also expressed interest in buying Jack For example, Mr Kopejkta explained Hills hematite. that the low centre-of-gravity of the rigs Under Stage 1 of the Jack Hills project, would minimise the sway of the long Murchison Metals aims to produce 1.5 vehicles along the newly sealed 180 km Mt of iron ore annually, with production of road from the mine to Cue, and for expected to rise to 2 Mt/a in 2008. the remaining 400 km section along the Great Northern Highway to Geraldton. The company is well advanced with The trailers also feature “belly dumper” feasibility studies to expand mining to discharge chutes to minimise dust at the 25 Mt/a. By the second half of 2010 it

 Murchison Metals Chairman: Paul Kopejkta Prospect INNOVATION AND TECHNOLOGY

An abundance of natural resources, a good sprinkling of local talent and sheer flair are combining to drive Western Australia’s resources sector to record new heights.

The following feature provides many examples of innovation and technology within the nation’s leading resources State, providing hope for a productive and sustainable resources industry in the years ahead.

 Prospect Platform-free fields could yield $1 trillion worth of gas

An ambitious Perth-based research The cost of platforms currently absorbs Subsea technology could carry benefits and development project being about 30 per cent of production costs in other areas besides delivering a undertaken by CSIRO’s Wealth from over the life of a field. Traditional considerable economic impact — notably Oceans National Research Flagship platforms can cost up to $1 billion to in areas of the environment and is aiming to revolutionise Australia’s construct, and Australia has had about occupational health and safety. Scientists on the project have been working on the oil and gas industry. 70 of them built in the past 35 years. It is likely that the availability of this seabed concept of remote systems contained The Platform-Free Fields Program is technology would bring reductions of within subsea or down-hole units that assessing the feasibility of developing a between 50 per cent and 75 per cent in would immediately alert operators suite of sea-bed technologies which, if capital investment for the development to any malfunction that posed an successful, would provide the industry of an offshore gas field. environmental threat. with access to large deep-sea gas Dr Edson Nakagawa, a colleague of The Platform Free Fields program is resources, and resources in remote part of the Oceans Flagship’s Blue GDP offshore locations that can not be Dr Rivero at CSIRO Petroleum Resources theme, which aims to develop and grow recovered economically using current and leader of the Drilling and Production ocean-based industries. technologies. Group, said: “If the processing of the hydrocarbons and other associated fluids Director Craig Roy, said the vast The Oceans Flagship Director, Craig could be made totally subsea and down- petroleum resources, particularly those Roy, said the project’s focus is on hole, then platforms and surface facilities that can not be reached by existing delivering technologies that will enable could become structures of the past”. extraction technologies, had the potential Australia to access more cheaply and to provide enormous and sustained efficiently around $1 trillion worth One of the most exciting aspects of the benefits to Australia. of gas. The successful innovation project for Dr Beverley Ronalds, the Chief of CSIRO Petroleum Resources, and implementation of this subsea “This project has the potential to position is the potential — particularly for technology could have a radical impact Australia as a world leader in cost- Western Australia — for new on the energy scenario in Australia, effective and environmentally secure gas technologies to unlock the enormous accelerating opportunities for industry and oil extraction,” Mr Roy said. and ultimately reducing the cost of oil and deepwater resources. While Australia gas production. has 10 gas production platforms in “The project is engaging the world’s operation, she said none of them best research and development and Scientists from CSIRO Petroleum operated in waters deeper than has attracted significant industry Resources have been working with the 300 metres. involvement. It is an enterprising initiative Flagship and other partners to with substantial challenges, and success “Worldwide gas demand is poised for investigate ways of dispensing with would lead to a big pay-off for Australia.” conventional platforms which could rapid growth and Australia has significant open up exploration and resource deepwater gas resources, but it is not The Platform-Free Fields Program has development in waters too deep for accessible with present technology,” attracted national and international existing technologies. Dr Ronalds said. investment. Already it has established a research partnership with the Western “It is estimated that in Australia According to project leader Mayela Australian Energy Research Alliance there are up to 40 billion boe (barrels Rivero, the key to the successful (WAERA), between CSIRO, Curtin of oil equivalent) worth in the order of development of new technologies will be University of Technology, the University $1 trillion. their capacity to significantly increase of Western Australia and international oil recovery, and cut running costs and and gas corporations. capital investment in the development “At the moment, Western Australia, the and operation of offshore gas fields. major gas producer in the nation, The overall program is further has an annual production worth over strengthened by industry partnerships “During the development of this project $5 billion. So, Australia should take a with Chevron, Woodside, and the we expect to engender many advances lead in developing these new integration of science capability from in equipment, software, processes technologies, because we can look the Institut Francais du Petrole, the and chemical products that should forward to a much more extensive University of NSW, the University of help to improve production and reduce gas production future than any other Campinas in Brazil and Venezuela’s production costs,” Dr Rivero said. OECD country.” University Simon Bolivar.

 Prospect Test Pup adds bite to process pipeline methodology

A device recently featured on the the environmental impact of disposing of ABC’s Inventors program is shaping the temporary spools. up to be a boon for project managers The Test Pups come in a variety of associated with pipe installations horizontal and right-angle configurations, in mining, petroleum and other and are easily fitted with adjustable processing plants. flange ends. They are made available to projects on a hire basis. The so-called Test Pup is a reusable pipe insert device that is designed Inventor Derek Hall said the Test Pup could be deployed in a variety of piping to simulate control equipment such situations — for mineral processing, plus as valves and flow meters during the oil, gas, petrochemical and subsea crucial plant pre-commissioning and industries. maintenance periods. He said Western Australia alone had The Western Australian invention, by scope for the utilisation of around 20,000 Perth-based company Testlok, is being Test Pups. A large processing plant like hailed as a breakthrough that saves Burrup Fertilisers’ recently completed money and improves process pipeline ammonia plant on the Burrup Peninsula methodology. could typically require at least 200 Test Pups. Larger ones like the proposed A major virtue of the Test Pup is that it Gorgon (natural gas and LNG) project eliminates the need for “valve hopping”, could use as many as 1000 of the pipe offering piping installers the freedom insert devices. to install and test piping systems prior The interstate and global market to the arrival of permanent inline potential of the Test Pup Jumper Spool equipment. Series is in excess of 400,000, not just for the resources industry, but for the food Normally during the first phase of plant and hydro industries and a variety of plant construction, permanent valves are Proud inventor: The man who created the Test Pup device, maintenance applications. Derek Hall. removed to allow for line flushing and testing to international standards and code requirements.

In order to avoid damage to costly inline equipment during the flushing and testing procedure, valves are substituted with temporary jumper spools and hoses. This valve-hopping procedure can involve five separate steps.

Temporary jumper spools are custom fabricated, often at short notice, on site and in an ad-hoc fashion. This procedure requires engineering sign-offs and material traceability, resulting in further delays to projects. The Test Pup eliminates the use of temporary pipe spools, and can be re-used repeatedly as required, thus reducing overall construction time and The pipes are calling: The range of Testlok Test Pup products now being marketed in the jumper spool series.

 Prospect BHP Billiton opens global technology centre in Perth

Ever keen to stay at the leading edge With more than 20 per cent of BHP regions, with plenty of room for of its industry, the world’s largest Billiton’s total assets now in Western further expansion. diversified resources company, Australia, the decision to locate a major technology centre in Perth underlines He said the Perth Technology Centre BHP Billiton, has chosen Perth as was now a key part of BHP Billiton’s the location of one of three global the company’s long-term commitment to the State. global innovation network that includes technology centres. activities in Melbourne, Santiago, Beijing BHP Billiton’s footprint in and Moscow, as well as partnerships Combined, the technology centres Western Australia includes vast iron with the Academy of Science, Monash in Perth, Johannesburg and Newcastle ore, bauxite and nickel mines, several University, the Indian Institute of (New South Wales) represent an downstream processing sites and Technology and St Petersburg and investment of more than $100 million considerable petroleum interests Moscow state universities. per year. such as the giant North West Shelf Western Australia has now become a project. About 40 BHP Billiton technology crucial part of this network. innovation roles have been relocated from It employs more than 12,000 people across Australia to the Perth Technology Mr Goodyear congratulated the Western directly and indirectly through Centre, which is part of the Australian Australia Government for providing contractors across the State. Resources Research Centre at Bentley. excellent intellectual property rights and The number of BHP Billiton technology Since 2001, BHP Billiton has approved research-and-development regimes, staff in Perth is expected to swell to 10 projects in Western Australia worth as well as an environment that was more than 100 within the next two or $6.7 billion, with several more on the conducive for his company’s economic three years. drawing board. prosperity.

The centre was officially opened by Company Chief Executive Officer, Chip Backroom brainstrust: Forward-looking technical Western Australian Premier Alan specialists from BHP Billiton are among about 40 people Goodyear, described Western Australia to be based at the company’s new technology centre at Carpenter in August 2006. as one of the company’s most important the Perth Technology Centre, Bentley.

10 Prospect New Bunbury ship loader is a quiet, dust-free success

Innovation is very much a part of a The loader resembles a giant tube, with S&J Excavations prepared the new alumina shiploading facility now a conveyor belt picking up alumina from site earthworks. operating at the Port of Bunbury for storage bins at Worsley Alumina’s new The ship loader is capable of loading Worsley Alumina. Berth 6 at Bunbury’s inner harbour and running the white powdery alumina 3000 tonnes of alumina per hour, with Designed and built by ThyssenKrupp through the enclosed tube to the the capacity to load vessels up to Engineering Australia, it is one of the shiploading chute. 80,000 tonnes. It is also capable of most modern, high-tech bulk commodity unloading caustic soda (used in the shiploading devices in the world. The ship loader, officially opened in alumina refining process) at a rate of July, is the centrepiece of work valued 3000 tonnes per hour. Featuring a fully enclosed conveyor at $60 million around Worsley’s new system and Cleveland cascade loading berth and shore side facilities at Bunbury. Alumina from Worsley is exported around chute to minimise the potential for dust the world, with the bulk of it going to and noise, it is especially suitable for The project had considerable local aluminium smelters in South Africa near-urban areas. content with Clough Engineering and Mozambique. completing the berth works, John Holland the steelwork (much of which was prepared in Bunbury at its Picton site), while local company

Quietly efficient: This innovative tube loading device for the export of alumina from the Port of Bunbury has won praise for its quiet, dust-free operation.

11 Prospect Composite alloys cut wear rates for mining equipment

A Midland businessman has teeth of mechanical front-end loaders, as much as tenfold that of some scooped $20,300 worth of prizes for using mainly composite laminates existing products. developing a new process that gives that are applied by conventional weld deposition techniques. With the wear parts segment of the a longer life for wear parts in the Australian mining industry worth tens of mining/excavation industry. The process developed by Mr Huggett millions of dollars annually, he is keen to permits the casting of wear-resistant capture a slice of the market. The Technical Manager of Composite white iron directly onto the mild steel Alloy Products Pty Ltd, Paul Huggett, backbone of bucket teeth and other However, Mr Huggett must secure was adjudged second runner up in the digging equipment. A full metallurgic more credible trial results “at the mine Industry Group of the inaugural Western bonding is achieved in a controlled face” before his invention can be fully Australian Inventor of the Year Awards. low-oxygen environment. commercialised. His $20,300 prize money includes His invention allows composite materials Wear is a major cost item for mining $12,000 in cash, $800 worth of to be manufactured at a relatively companies. However, lamentably, mentoring support and a sponsored low cost, while providing maximum product development for wear parts place within the University of Western wear resistance and excellent impact has reached a plateau, with composite Australia’s Innovation Excellence toughness for rigorous mining and other materials now a major focus for wear Program worth $7500. excavation applications. performance improvement. Reward for inventive prowess: Technical Manager of Current technology sees the recycling of Mr Huggett says his invention has Composite Alloy Products Pty Ltd, Paul Huggett, who was adjudged second runner up in the Industry Group of the old worn components, such as the bucket the potential to reduce wear rates by inaugural Western Australian Inventor of the Year Awards.

12 Prospect Hyperspectral imaging of Ningaloo Marine Park

Marine scientists have dived on and examined the Great Barrier Reef like nothing else in Australia, to a point where it is the most documented stretch of submerged land in the country.

But the level of aerial imagery of this iconic world heritage area won’t nearly be as great — or precise — as that planned for Ningaloo Reef on the other side of the country in Western Australia’s North West region.

This has been made possible through a Spectacle from above and below: An aerial view of Ningaloo Reef and a sample of some of the spectacular hyperspectral images derived from a state-of-the-art photographic program sponsored by BHP Billiton. The photo at the top shows a diver $600,000 funding agreement between checking the brilliant coral formations of Ningaloo Reef. BHP Billiton and the Australian Institute of Marine Science (AIMS) to allow to the management of tropical reef identify other areas with similar habitats Ningaloo Reef to be photographed in systems,” Dr Heyward said. that haven’t been physically surveyed,” very fine detail using the most advanced Dr Heyward said. Hyperspectral technology is commonly hyperspectral imaging available. used in the search for minerals, enabling “For example, one image may depict The state-of-the-art airborne imaging geoscientists to probe (in a remote sort substantial areas displayed as pink and program captured a broadband spectral of way) beneath the earth’s surface and purple, which we know is an area dense signature of the entire Ningaloo Marine identify features that may lead them to a with table corals. Where we see these Park, covering about 3400 square hidden mineral deposit. shades elsewhere along the vast tract kilometres. of the reef, we can assume there are Hyperspectral data contains far table corals. The survey will enable marine scientists more information than normal colour to tease out about 120 different layers photographs and is fully digital, “The broad-scale of data available sets of spectral information which they can permitting various combinations of the stage for exciting science projects. use to build maps, measure features and spectral signal to be combined or From this we will be able to separate out classify different habitats in near-shore contrasted. This enables researchers habitats and monitor change. environments in the Ningaloo Reef and to distinguish features not apparent “The hyperspectral data will be provided Exmouth areas. to the naked eye, using computer processing. All the images have at no cost to other science agencies to AIMS lead scientist in Western Australia, precise GPS coordinates, facilitating facilitate collaboration to enable further Dr Andrew Heyward, said surveys of the production of accurate maps that original and value-adding studies that this calibre were expensive and beyond can integrate with existing information will grow the understanding of the the fiscal capacity of current research and permitting rapid, computer-based Ningaloo marine region considerably and programs, so the financial support from estimates of different seabed types in provide WA with opportunities to lead this BHP Billiton was most welcome. any part of the reef system. field of research application.”

He said the BHP Billiton-AIMS effort has Dr Heyward said the images would In launching the cooperative research led to the biggest hyperspectral survey be cross referenced with information program in Perth, the Federal Minister of a coral reef anywhere in the world, gathered from AIMS underwater for Education, Science and Training, providing collaborative scientists in biological surveys which include dive Julie Bishop, said such programs Western Australia with an opportunity to expeditions and deep water investigations demonstrated how effective industry, become world leaders in using this type using video, sled sampling and acoustic the research sector and the general of data for coral reef understanding and echo sounders. community can work together, capturing management. new knowledge to secure our natural “We take a geographic position and heritage into the future. “Over the three years of the project we match the spectral response to the hope to help build local capability and information gathered on underwater In total, BHP Billiton Petroleum is capacity, making Western Australian surveys to establish the meaning of that currently supporting six marine science scientists world experts in the application spectral response. This will enable the projects throughout Australia with an of this science and contributing greatly use of a rapid assessment strategy to investment of more than $400,000 a year.

13 Prospect CSIRO joins the cut and thrust of hard rock mining

As mines go deeper and rocks cutting pieces to simple carbon when become harder, so too do the heated to about 800 degrees Celsius. challenges associated with winning The new-generation thermally stable the precious “pay dirt”. diamond composite has a silicon carbide binder which is not a catalyst for the However, smart technology being decomposition of the diamond to carbon. developed by the CSIRO’s Exploration and Hence, the TSDC can sustain high Mining Division promises to make things temperatures of around 1350ºC that are a little easier for deep miners of the generated at the cutting interface, and modern age. remain stable.

It is having considerable success trialling Cutting tool geometry and pick head size diamond composite cutting heads to for mechanical mining equipment such penetrate both soft and hard rocks. as continuous miners, longwall shearers The cutting heads are part of a system and roadheaders are also very important. called SMART*CUT Technology, and scientists are reporting wear rates about CSIRO geoscientist and research team one thousandth of those experienced leader Dr Jim Boland is excited about with conventional tungsten carbide progress with trials carried out so far. (mechanical) picks. He said field trials done collaboratively The objective is to provide rock cutting with Placer Dome (now Barrick Mining) tools that can excavate and extract ore in recent years had produced excellent using existing mining machines, and results. effectively reduce levels of costly blasting. “We will be doing more field trials, Secrets of the new technology are the possibly in Western Australia, so that Smart cut: New technology being developed by the binder used to attach the thermally the technology can be proved to a point CSIRO is likely to allow new-age miners to dig deeper stable diamond composite (TSDC) where it is fully embraced by both mine and more efficiently. materials to the pick heads, plus cutting machinery manufacturers and mining geometry and pick head size. companies alike,” Dr Boland said. narrow-vein mining. Target sectors are metalliferous mining operations such Older style binders tend to act as The main target applications for the as gold, nickel, lead, copper, zinc and a catalyst, transforming diamond technology are tunnel development and platinum (the latter in South Africa).

14 Prospect Perth chosen for Chevron’s new Asia–Pacific energy technology centre

Perth will be the home of a new Asia–Pacific energy technology centre to support the business activities of Chevron Corporation, one of the world’s leading energy companies.

The facility will complement two other major technology centres — in the United States and Scotland — that are operated by Chevron’s Energy Technology Company (ETC). These centres provide research, development and technical support to Chevron’s upstream, downstream, global gas and emerging energy businesses around the world.

“We are excited about technology’s role High tech: Perth will be home to about 100 technical specialists at Chevron’s Global Technology Centre to be opened in the in adding new oil and gas supplies and Western Australian capital city in early 2007. It will be able to deploy solutions for the company’s growing presence in the region, including the proposed $15 billion Gorgon gas project. new energy sources to meet the world’s growing energy demand,” said ETC operations for the oil and gas industry 11 wells, one of which was responsible President Mark Puckett. in Australia and the wider region.” for the Chandon gas discovery off Barrow Island. “From the new Global Technology Centre From Chevron Australia’s headquarters in Perth, we will be able to in Perth, Mr Johnson and his team “Basing the centre in Perth will also deploy technology solutions to our is busily focused on the company’s help us capitalise on Chevron’s existing regional interests faster, gain access various interests which include the research and development relationship to new technology development Gorgon gas development, the North with the Western Australian Energy opportunities, and better leverage West Shelf Venture, the Barrow Island Research Alliance, where we have our technical talent globally.” and Thevenard Island oil fields, the committed up to $5 million annually Malampaya deep water gas project in the on collaborative work for petroleum Chevron is active throughout the Asia Philippines and significant exploration research, technology development and Pacific with about 25 per cent of the acreage offshore Western Australia. education and training projects,” company’s worldwide production coming Mr Johnson said. Expected to open in early 2007, the new from the region. The new centre will centre will add to Chevron’s expanding All up, it is expected that the Global support Chevron’s business interests in presence in Perth. In 2000, about 30 Technology Centre will eventually more than 30 Asia-Pacific countries such people relocated from Melbourne to have a workforce of about 100 technical as China, Australia, Indonesia, Thailand, Perth when Chevron’s Australian office professionals including geologists, the Philippines, Cambodia, Vietnam moved to WA. Today that number peaks geophysicists, and reservoir and and Bangladesh. at around 900 as work on the various production engineers with an emphasis Chevron Australia’s managing director, planning and operating stages for the on candidates who have Masters company’s interests are progressed. and PhD degrees. Jay Johnson, welcomed the move saying that “Western Australia appealed to For example, Chevron Australia holds Recruitment efforts and confirmation of Chevron because of its proximity to the an operator and non-operator interest the office location are expected in late company’s interests in the region, its in about 66,000 square kilometres of 2006. Local recruitment efforts will build rich pool of talented technology experts, acreage — a size similar to that of on an already effective graduate and and growth opportunities to further build Tasmania. During 2006, the company apprenticeship intake. Following Chevron research and development alliances with invested US$190 million on exploration Australia’s participation in the annual universities and industry partners. Perth activities in these interests including University Campus Employer Roadshow, also makes sense as this city is building a a massive 8500 square kilometres of applications for graduate positions lifted well deserved reputation as a centre of seismic survey work and the drilling of from 600 in 2005 to 900 in 2006.

15 Prospect ERN AUS ST TR E A W L I 6 A 0 N 0

2

I N AGR triumphs at WA Industry S D D U R S A T R W Y A and Export Awards & EXPORT

Kwinana-based Australian Gold Reagents (AGR) has taken out the prestigious Premier’s Award at the 2006 Western Australian Industry and Export Awards.

It was in recognition of the company’s strong growth as an international supplier of sodium cyanide, a key ingredient for gold treatment.

AGR has progressed from an emerging export category winner two years ago to Large Advanced Export winner in the latest judging of the awards, with earnings of more than $20 million per year involving exports to several countries in Africa and South America.

The Premier’s Award acknowledged AGR’s nomination as the best of 60 overall in 15 difference categories.

For the second year in a row, Rio Tinto Iron Ore (RTIO) took out the Minerals and Energy Export category of the industry and exports awards.

The giant enterprise successfully demonstrated the breadth of its exports and the fact that it had contributed significantly to the company’s overall global earnings.

Rio Tinto is the world’s second largest producer of iron ore, and the globe’s most widespread supplier, with exports going to China, Japan, Korea, Taiwan, Pakistan, India, Europe, North America Spoils of victory: AGR Manager Steve Edgar (left) and head of the company’s sodium cyanide production Michael Rodriguez and South America. with the trophies won at the 2006 WA Industry and Export Awards. A joint venture between CSBP Limited (75%) and Coogee Chemicals (25%), AGR is a growing exporter of sodium cyanide to international markets including Africa and South America. It was a double reason to celebrate th because 2006 marks the 40 anniversary The Services Industry Export Other resources-related finalists of RTIO subsidiary Hamersley Iron. award went to Maddington-based Genalysis included GMA Garnet in the Minerals Last year RTIO’s Pilbara operations Laboratory Services for its ability to source and Energy Export category, and Risktec employed 3850 people and produced substantial business from mining and Australasia in the Services Industry 143 million tonnes of iron ore. exploration companies outside Australia. Export category.

16 Prospect Vale: Sir Laurence Brodie-Hall

Western Australia’s mining industry Perhaps Sir Laurence’s greatest honorary lost one of its most revered achievement was saving the WA School statesmen with the recent passing of Mines from being re-located from of Sir Laurence Brodie-Hall at the Kalgoorlie to Perth during his tenure as WASM chairman in the 1980s. age of 96. Former WMC colleague Roy Woodall A mature-age graduate of the WA AO recalled: “Brodie chipped in more School of Mines, Sir Laurence was in than $1 million out of his own pocket, charge of Western Mining Corporation’s and raised many millions more from operations in Kalgoorlie during the mining companies to finance all the early famous 1960’s nickel boom, which led to residential accommodation for the School the development of the State’s first nickel of Mines. There’s an army of people out mine at Kambalda in 1966, the opening of there who benefited from his generosity the Kwinana nickel refinery in 1970 and over the years. the Kalgoorlie nickel smelter in 1972. “Brodie was an amazing man, who During the same decade, he oversaw reached the pinnacle of the mining the export of the State’s first major iron industry after being sent out from ore shipments (from Koolanooka Hills) England as a teenager by his policeman to Japan in 1966, and the large-scale father to learn farming. development of the Three Springs talc “After lumping wheat at Fremantle wharf deposit in 1968. during the Depression, he hitched a At the time, Sir Laurence held positions ride to a gold mine at Nabberu north of of executive director of WMC and director Meekatharra where he got his first taste Revered: The late Sir Laurence Brodie-Hall. of Alcoa. of mining.”

He also served as president of both Among the many awards Sir Laurence the City of Kalgoorlie–Boulder in 1989. the WA Chamber of Mines and the received were the WA Citizen of the Sir Laurence was awarded an Order of Year Award in 1974, a Companion of St. Australia in 1993 in recognition of his Australasian Institute of Mining and Michael and St. George (CMG) in 1976, significant contribution to the mining Metallurgy. a knighthood in 1982 and Freeman of industry and education in Australia. Through thick and thin, Sir Laurence was a staunch advocate of gold mining in Western Australia, working tirelessly in the 1970s to keep mines viable at Mt Charlotte, the Golden Mile and Norseman.

Many people, worldwide, are indebted to Sir Laurence for the guidance and encouragement he gave to them.

One of his protégés, Sir Arvi Parbo said of him: “Brodie took a very personal interest in the people he was responsible for. He rode with a loose rein, but had the happy knack of inspiring people and bringing out the best in them because they would be fired by his enthusiasm and strive very Agricola college: The residential wing of the Kalgoorlie School of Mines which Mr Brodie-Hall (later Sir Laurence) helped hard not to let him down.” to fund and establish.

17 Prospect APEC Ministers coming to Perth

Western Australia’s dominant events associated with APEC and the APEC meeting for Perth: The Perth Convention Centre, pictured in the foreground, will be the venue for the position in the resources sector AustMine Conference and Exhibition upcoming meeting of mining and resources ministers from and its booming economy have between 12–16 February. APEC countries. been recognised internationally, The APEC forum will have a strong the most senior political and industry with organisers of the Asia Pacific sustainability flavour, with sessions leaders in the world, highlighting Economic Cooperation forum being dedicated to investments and the pivotal role of Western Australia, choosing Perth as a venue for one trade, mining regulations, care of the and indeed Perth as the base of the of APEC’s important ministerial environment and social impacts from Australian resources industry. meetings in February 2007. resources development. The Perth forum will be one of a series The meeting will bring together mining Both the Minerals Council of Australia of APEC meetings from January through and resources ministers from up to and the Western Australian Chamber of to September 2007. These will culminate 21 APEC member economies, plus Minerals and Energy (CME) have had an with the APEC Economic Leaders Meeting entourages of support staff, international input in the agenda through the APEC in Sydney on 8–9 September which will media and company representatives. The meeting steering committee. bring together the leaders of all major number of international visitors coming regional economies in the Asia–Pacific to Perth will run into several hundred. According to the CME’s David Parker, region. These leaders represent about the APEC mining minister’s meeting is 40 per cent of the world’s population, Both the Perth Convention Centre and a unique opportunity to showcase the 56 per cent of the world’s GDP and Burswood Resort have been booked for State’s resources sector to some of 48 per cent of world trade.

WESTERN AUSTRALIA EXCITING PETROLEUM BID FOR ACREAGE EXPLORATION (Bids close 8 March 2007) OPPORTUNITIES Acreage release CD packages are available from the Department of Industry and Resources and a web version is also available.

The acreage release package contains information about the release areas, land access and how to make a valid application for an exploration permit.

EASTERN CANNING BASIN There are three release areas in the essentially Paleozoic Canning Basin. The sizes of the release blocks are 8217 sq km, 7042 sq km and 8676 sq km. Three exploration wells have been drilled in the release areas. White Hills 1 had promising oil and gas shows.

Stratigraphic, structural and combined stratigraphic/structural plays have been identified DoIR06_850 in the area. Troy-Ikoda prepared a prospectivity report, and a number of leads have had risked reserves calculated. CSIRO Petroleum performed a Sedsim simulation study of sedimentary deposition in the eastern Canning Basin. For further information contact: Richard Bruce, NoRThERN CARNARvoN BASIN Petroleum and Royalties Division, One of the two Northern Carnarvon Basin release areas lies in the Barrow Sub-basin, DoIR an area noted for its Cretaceous oil production. The release area lies 5 km northwest of the depleted South Pepper oil field. The block is 85 sq km in size. Water depths are Telephone: +618 9222 3273 less than 50m. Email: [email protected] Web: www.doir.wa.gov.au/mineral- The other release area lies on the Peedamullah Shelf and contains a number of small oil sandpetroleum/acreage_releases.asp and gas discoveries. Block size is 1356 sq km. It lies partly on low lying land and partly in shallow marine. Oil was sourced from the pre-Jurassic section whereas the gas, which is of biogenic origin, was from the Cretaceous section.

www.doir.wa.gov.au

18 Prospect Educating the educators

The Chamber of Minerals and ahead for students if they head down a Teacher tour: Secondary school teachers gather outside Woodside’s LNG plant on the Burrup Peninsula during their Energy of Western Australia is science-based career path. recent resources familiarisation visit to the Pilbara. to be congratulated for taking The three-day tour included the North workers such as engineers, geologists 14 secondary school teachers West Shelf project, Dampier Salt’s and environmentalists. on a tour of the Pilbara region to operation, and Pilbara Iron’s Dampier enlighten them about industries port and Yandi mining operations. They were also given a feel of what fly-in, that are delivering double digit fly-out life is like, as well as a taste of For many of the teachers, who came from a typical Spring day in the Pilbara. The economic growth for the State, government, independent and Catholic temperature the day they dropped into and driving unemployment to school systems, both metropolitan and Yandi was a testing 37 degrees C. historically low levels. country areas, it was their first visit to the State’s north. All were impressed at Tour leader Peter Terlick said he hoped Another reason for the tour was the size of the resources operations they to organise another teacher tour in 2007, to acquaint the teachers with the visited, the range of careers available and inviting a few TAFE lecturers to come tremendous career opportunities that lay the earning potential of professional along as well.

WA pumps out $118 million worth of resources daily

The value of mineral and petroleum $12.9 billion (up 30 per cent) and alumina Value of Minerals and Petroleum in sales in Western Australia soared to worth $4.1 billion (up 9.5 per cent). Western Australia 2005-06 an all-time record figure of A$ billions (rounded off figures) The base metals (copper, lead and zinc) $43.2 billion during 2005-06. sector also performed strongly, with Petroleum 15.21 That’s a staggering $118 million several new projects coming on-stream Iron ore 12.96 per day, or nearly $5 million an and collectively generating a 187 per cent Alumina 4.11 hour, representing a 29 per cent increase in the value of sales to be worth Nickel 3.79 increase in the value of output over $821 million. Gold 3.57 the previous year. Base metals 0.82 The overall value of mineral and Heavy mineral sands 0.8 The dominant commodities were petroleum production in Western Salt 0.23 petroleum with sales of $15.2 billion (up Australia has nearly trebled over the past Other 2.39 35 per cent), followed by iron ore worth decade, from $15.3 billion in 1995-96. Total 43.16

19 Prospect THE BIG PICTURE Economic trends

In its latest World Economic Outlook, the IMF below). Previous US downturns have usually 12 raised its global forecasts for 2006 to 5.1 per resulted in a slowdown in the world economy 10 cent and 4.9 per cent for 2007 (both one- too. However, the world economy presently may not be as dependent on the US economy quarter of a percentage point higher than its 8 April 2006 forecast). Global economic growth as in the past. Asia, including China and is expected to broaden with economic growth India, has increasingly accounted for a larger 6 projections for Germany, France, Italy, Spain share of the world’s GDP, rising from 30 per 4

and the UK upgraded. Economic growth for cent in 1995 to 35 per cent in 2005 (based on cent Per

Japan in 2006 was downgraded slightly to purchasing power parity). By comparison, 2 2.7 per cent and upgraded to 2.1 per cent the US has accounted for about 20 per cent for 2007. The 2006 growth forecast for the in the 10 years to 2005. On this basis, it can 0 US remains unchanged at 3.4 per cent while be argued that growing prosperity in Asia is -2 the 2007 forecast has been downgraded helping to stabilise world economic growth. * * 1998 2000 2002 2004 2006 2007 0.4 percentage points to 2.9 per cent. The This bodes well for Western Australia’s US Euro area Japan China broadening growth base among mature resources sector. Growth in the major economies Source: IMF and World Bank. *Figures are forecasts economies is confidence boosting for global Economic prospects in key economies economic growth prospects. The forecast 40

for continued growth in the US, though at 35 a slower rate, is particularly reassuring for US emerging markets. The world’s largest economy has slowed 30 considerably since the beginning of the 25 The favourable outlook, however, is year, and is likely to continue to decelerate dependent on three areas. Firstly, that modestly. In the September quarter of 2006, 20

inflationary pressures stemming from the US grew at an annual rate of 1.6 per cent, cent Per 15 tight labour and commodity markets are compared with 2.6 per cent and 5.6 per cent successfully contained with only modest in the June and March quarters respectively. 10 increases in official interest rates. Secondly, According to the BEA (2006), the slowdown in 5 the US housing market does not slow to economic activity was due to an increase in the extent that consumption and economic imports and reductions in consumer spending 0 1995 1997 1999 2001 2003 2005 growth are so adversely affected with similar for services, state and local government US Euro area Rest of world Asia negative effects on world trade. Thirdly, that spending, inventory investment and Share of world GDP Source: IMF *GDP is based on purchasing price parity the global account imbalances are adjusted in residential investment. an orderly manner. 5 The housing sector was a key driver of the US With respect to inflation risk, the fall in the economy for a number of years until recently. 4 price of West Texas Intermediate oil by about In the September quarter, the sector recorded 3 21 per cent in October 2006 against a July a decline for the fourth consecutive quarter,

peak in the average monthly price of US$74 detracting more than 1 percentage point from 2 per barrel is encouraging. Volatility in the the September growth. This occurred as a price of oil, however, remains a significant result of the cumulative and lagged impact 1 Per cent Per challenge in an economic environment prone of 17 consecutive increases in interest rates 0 to geopolitical tensions and uncertainty. since June 2004. This in turn, affects business confidence, -1 investment and production. While lowering consumer spending (in line with decreases in the value of the family -2 Thus far, the sharp slowdown in the US homes from which expenditure income * * 1998 2000 2002 2004 2006 2007 housing market has yet to significantly affect was borrowed against), the decline has yet US Euro area Japan China Inflation in major economies consumption and economic activity (see to affect the economy significantly. Rising Source:Australian IMF 2006. *Figures Dollar are forecasts exchange rate against major currencies

20 21 Prospect Prospect Abbreviations: ANZ Bank: Australian and New Zealand Bank IQNA: Insee Quarterly National Accounts ABARE: Australian Bureau of Agricultural and Resource Economics FSOG: Federal Statistical Office Germany AFR: Australian Financial Review NS UK: National Statistics United Kingdom BEA: Bureau of Economic Analysis IMF: International Monetary Fund NBS China: National Bureau of Statistics of China

wages and strong employment suggest that loans in the future. It now appears that the and increased the likelihood that the Bank US consumption may not fall as much as range of measures (such as raising interest of Japan would delay further interest rate previously feared. rates and bank reserve requirements) is increases (ANZ Bank, 2006). slowing investment growth in the property Nonetheless, the Federal Reserve appears and construction sector. India recorded 8.9 per cent GDP growth in the to be achieving what it wants – a slowdown year to the end of June 2006, down slightly in economic activity to moderate inflationary Nonetheless, some concerns about the future from the annual increase of 9.3 per cent pressures. Thus, the central bank maintained of the Chinese economy remain. Firstly, in March quarter. As in the March quarter, its interest rate at 5.25 per cent on 25 investment may well rise again in the next services were the main drivers of economic October 2006. In its October statement, the six to nine months as provincial officials seek activity in June. The industry sector also central bank noted that “some inflation risks to win leadership positions for the upcoming recorded strong growth, with manufacturing remain” and that it would continue to monitor National People’s Congress in March 2008 and construction being particularly robust economic data. by funding investment projects and creating as a result of private sector investment and employment. Secondly, the Chinese banking There are concerns that the housing public infrastructure projects. system remains immature and fragile. In slowdown could result in a recession in the particular, it lacks a national credit rating US with material impacts on economic activity Significant challenges to its future growth system, and does not know the credit history in other countries. A rise in non‑residential path include: a large government debt to of new clients. For example, about 80 per cent building activity, a relatively optimistic GDP ratio where interest payments absorb of more than 100 billion yuan in bad debts business sector outlook and corporate profit about a third of general government revenue; are incurred by China’s four major banks as a growth (by about 20 per cent in 2005-06), and setbacks in pursuing economic reforms; result of car buyers failing to strong growth in sales suggests that this is increasing inflationary pressures from strong repay their loans. Also, an estimated 86 per unlikely (ANZ, 2006). demand; and thus, potentially higher interest cent of personal lending among the major banks is in housing mortgages, which make rates (ANZ Bank, 2006). China them vulnerable to any significant downturns In contrast, the Chinese economy has in the housing market, particularly property European continued to grow at exceptionally high rates ‘bubbles’ (ANZ Bank 2006 and AFR 27 In nominal terms, Germany grew by throughout 2006. It expanded by 10.7 per October 2006). 1 per cent in the year to the end of June cent in the year to the end of September 2006. However, adjusting for the number 2006, following annual increases of 10.9 per Japan and India of working days reveals that Germany’s cent and 10.2 per cent in the June and March Compared with a year earlier, the Japanese GDP actually expanded by 2.4 per cent. quarters. economy grew by 2.5 per cent in the second The growth was due largely to a recovery in Over a number of years, the Chinese quarter of 2006, down from a year-on-year business investment in plant and equipment, economy has largely been driven by exports rise of 3.4 per cent in the March quarter. and construction; while household and fixed-asset investment. Again, in the The slower growth was largely due to a consumption was slightly negative. With the September quarter China’s secondary drawdown in inventories. But private demand, value added tax rising from 16 per cent to 19 industry, comprising manufacturing, particularly business investment continued to per cent in January 2007, household spending utilities (electricity, water and gas) and expand, rising by 9.5 per cent year-on-year. is likely to be volatile for a period of time as construction recorded the largest annual consumption may well rise prior to the tax growth of 13 per cent (NBS China 2006). Latest partial indicators suggest that there are some risks to the country’s economic increase and decline thereafter (FSOG August As noted in the previous issue of Prospect, the recovery because of the slower pickup in 2006 and ANZ Bank October 2006). The Chinese government has been addressing private consumption compared to business French economy also continued to expand the concerns associated with the effects activity. In August the Bank of Japan in the June quarter to year-on-year growth of an overheating economy, namely, the completed its five-year revision of its CPI of 2.6 per cent (IQNA, 22 September 2006). Chinese banks’ risks of being exposed to an index. This showed that Japan recorded a Likewise, the UK economy expanded by 0.7 unacceptably high level of nonperforming much lower inflation rate than expected, per cent in the third quarter of 2006.

20 21 Prospect Prospect THE BIG PICTURE Commodity Outlook

80.00 Against a backdrop of massive mergers as gold prices to increase for the remainder of mining houses consolidate their market power 2006 and 2007 due to increased investment world resource demand continues to escalate. demand. 70.00 Most resource prices appear to have peaked and settled to trade horizontally, with notable Reasons cited by ABARE for the increased 60.00 exceptions such as lead, zinc and uranium. investment include most of the usual The latter still experience market balances suspects, such as a hedge against potential favouring suppliers such that their prices devaluation of the US dollar, speculation 50.00 continue to soar. about slowing growth of the US economy, geopolitical instability and the possibility of 40.00

While forecasters agree that a price peak US$/bbl (WTI) terrorist activity. has been reached for most resource commodities, there is much disagreement A number of global projects are set to 30.00 regarding its duration and how far prices expand capacity or come into production in will subside in the next few years. Factors 2007. Barrick’s Lagunas Norte and Veladero 20.00 such as the continued rate and duration projects should reach their design capacity Feb-03 Feb-04 Feb-05 Feb-06 Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 of growth in China and India, the US of 800,000 ounces per year. Newmont May-03 May-04 May-05 May-06 economy and deficit, escalating project commenced production at three major development costs, and geopolitical stability projects, namely Ahafo in Ghana which is Crude Oil prices are amongst the many factors cited in price Source: EIA (Official Energy Statistics from the US Government) expected to reach an output in excess of prognostications. 750 500,000 ounces per year and the Leeville Crude Oil and Phoenix projects in Nevada (400,000 and 700 300,000 ounces per year respectively). The Oil prices, as represented by the West 650 Boddington mine in Western Australia does Texas Intermediate (WTI) quoted price, not appear likely to add to world production have continued their volatile path of recent 600 until late in 2008 (estimated 600,000 ounce months. Price changes have reflected 550 per year capacity). the geopolitical tensions in the Korean Peninsula and Middle East, coupled with US$/oz 500 Copper minimal excess supply capacity and strong 450 demand growth in non-OECD countries. Since peaking at US$8788 per tonne on 12 May copper prices have settled to a gentle 400 After peaking close to US$80 per barrel fluctuation around the US$7500 per tonne in July, the WTI price plunged to US$57 350 mark. A softening in demand in the US market per barrel by September. In response to has been off-set by increases in the EU and 300 this and increasing oil inventories OPEC announced a 1.2 million barrel per day cut in Japan. As with most mined commodities, Feb-03 Feb-04 Feb-04 Feb-06 Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 May-03 May-04 May-05 May-06 production effective from 1 November. There China’s growth fuels the demand for copper, ABARE predicting its growth in consumption to appears, however, to be some uncertainty Gold prices over the benchmark that was to be used for be 10 per cent in 2007. Source: London PM Fix the production cut. In the week since the Numerous disruptions in Chile such 9000 deadline the WTI has traded between US$58 as the strike at Escondida in July, loss 8500 and US$60 per barrel. 8000 of production at Chuquicamata due to 7500 The Energy Information Administration (EIA) a damaged conveyor belt, and labour 7000 predicts that consumption will continue contract negotiations at several large 6500 to grow despite the current high price, mining operations have reduced the copper 6000 leading to a firming of the oil price to an concentrate supply in 2006 and potentially 5500 5000 average of US$65 per barrel (WTI) in 2007. into the future. These factors continue to US$/t The Australian Bureau of Agricultural and 4500 pressure smelters and refiners to reduce 4000 Resource Economics (ABARE) forecasts a their charges. 3500 softer oil market with a WTI average price of 3000 US$56 per barrel for the same year. It is unlikely that copper prices will increase 2500 further in 2007, already five times those of 2000 Gold four years ago, as it is expected the Chinese 1500 Since spiking on 12 May at US$725 per State Reserve Bureau (SRB) will release 1000 ounce, gold prices have continued to stocks to ease pressures in the market. Feb-03 Feb-04 Feb-05 Feb-06 Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 fluctuate strongly in a band between US$560 ABARE predicts that copper prices will May-03 May-04 May-05 May-06 and US$660 per ounce. Despite the decrease settle somewhat in 2007 to average US$6250 Copper prices in fabrication demand, ABARE predicts per tonne. Source: LME Cash Official 22 23 Prospect Prospect 3400

3200 Aluminium Lead and Zinc

3000 Demand for primary aluminium continues Spot zinc prices which were languishing to grow to record levels. This pressure, below US$1000 per tonne just three years 2800 largely driven by China, has seen the ago have now pushed through the US$4500 2600 aluminium price rally for the second time per tonne mark on the London Metal 2400 this year, from around US$2400 per tonne in Exchange (LME). World zinc consumption 2200 September to US$2800 late in October.

US$/t has exceeded production in the first half of 2006, leading to a predicted annual shortfall 2000 Despite this increase, growth in the supply of 250 kilotonnes. 1800 of alumina has outstripped its demand, to 1600 the point that alumina prices have fallen Approximately half of the zinc produced 1400 from a high of US$650 per tonne to US$300 is consumed in galvanised steels. As a per tonne in mid August. Given the large 1200 consequence of the elevated zinc price, capacity expansions set to come on-stream galvanized steel offers less of a substitution 1000 in 2006 and 2007, ABARE predicts the prospect for high priced nickel stainless alumina price to soften further to an average steels. Galvanised steel use will continue Feb-03 Feb-04 Feb-04 Feb-06 Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 May-03 May-04 May-05 May-06 of US$225 per tonne for 2007. to grow, however, pushed upwards by the Aluminium prices The big news in October was that RUSAL, usage in public infrastructure projects in Source: LME Cash Official SUAL and Glencore announced an agreement China and India. 35,000 to merge their alumina and aluminium Several mines are set to start production operations into a single corporation. The deal, in the next two years. San Cristobal in 30,000 which is set to be complete by 1 April 2007, southwestern Bolivia is due to be completed will create both the world’s largest alumina in late 2007, bringing a much-needed 180kt refining and aluminium smelting corporation. 25,000 per annum zinc capacity to the market. In The merged entity will produce approximately addition Teck Cominco plans to reopen the 4 Mt of aluminium and 11 Mt of alumina 70-80kt zinc capacity Lennard Shelf project in 20,000 US$/t annually. the Kimberley early in 2007. The MacArthur River mine in the Northern Territory also Nickel 15,000 received the green light to convert from an Having peaked at US$34,750 per tonne underground mine to an open pit operation, on 24 August, nickel prices have since 10,000 thereby extending the life of the operation. vacillated between US$27,500 and US$34,500 per tonne. Despite the elevated Lead has also performed strongly on the 5000 price the International Stainless Steel LME in the last few years, rising from under Forum (ISSF) revised its stainless steel US$500 per tonne in 2003 to recent spot Feb-03 Feb-04 Feb-04 Feb-05 Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 May-03 May-04 May-05 May-06 production forecast for 2006 upwards, prices over US$1700 per tonne. The most given a stronger than expected demand. dramatic increase has been the recent rally Nickel prices from a minimum price of US$915 in June Source: LME Cash Official The forecast report did note, however, that the fastest growing stainless steel variants 2006 to the current highs. 5000 were those that do not contain nickel, Disruptions in supply due to stope 4500 indicating that steel makers are starting rehabilitation at Cannington Mine in to substitute away from the metal. 4000 northwest Queensland are set to reduce ore

3500 On the merger and acquisition front Xstrata production until early in 2007. In addition completed their takeover of Falconbridge China recently removed a 13 per cent rebate 3000 on 2 November, while CVRD is mopping up on exported lead metal, which coupled with 2500 the remaining INCO shares to complete its a growing domestic demand, is likely to takeover. As of 3 November CVRD owned in reduce their exports from current levels.

US$/t 2000 excess of 85 per cent of the world’s second Taking into account the reports from its 1500 biggest nickel miner and refiner. member countries, the International Lead 1000 ABARE forecasts relatively high prices to and Zinc Study Group (ILZSG) forecasts the continue into 2007 (US$18,900 average for lead market balance to remain in slight 500 the year) driven by increased demand from surplus, while the zinc market will remain 0 Chinese steelmakers. Demand may also in deficit both in 2006 and 2007. Markets be bolstered in the long run should nickel for both metals will thus remain sensitive Feb-03 Feb-04 Feb-05 Feb-06 Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Aug-03 Aug-04 Aug-05 Aug-06 May-03 May-04 May-05 May-06 metal hydride (NiMH) battery consumption to unexpected supply disruptions. ABARE Zinc Lead increase as a result of increased hybrid forecasts the 2007 average zinc price to be Lead and Zinc prices Source: LME Cash Official vehicle adoption. US$3500 per tonne. 22 23 Prospect Prospect Commissioned Projects Committed Projects (as at 07/11/2006) (for financial year 2006/2007)

Copper Gold Yandicoogina - Mine Expansion HAMERSLEY IRON PTY LIMITED Nifty (Throssell Range) - Nifty Copper Boddington - Gold Mine (Wandoo Expansion) Hamersley Iron has committed to expand operations Underground Mine BGM MANAGEMENT COMPANY PTY LTD at its Yandicoogina mine to increase production from BIRLA (NIFTY) PTY LTD BGM Management Company Pty Ltd, on behalf of 36 Mt/a to 52 Mt/a. Hamersley recently expanded the current operation by establishing a new wet Birla is currently expanding the Nifty copper Newmont and AngloGold Ashanti, is developing the $2 billion Wandoo project, based on mining processing plant (to process low grade ore), an operation in the East Pilbara to include an overland conveyor and tertiary crushing/screening underground mining operation from the base of the the extensive bedrock resource that underlies the mined-out oxide resource. Production will be up to facilities. The latest expansion involves a new pit at existing open cut. The underground mine will have an Junction South East, new crushing and screening 600,000 oz/a of gold and about 20,000 t/a copper annual throughput of 2.5 Mt with an extension to the plant and a new overland conveyor. life of mine of 10-12 years. in concentrates over a 15-year mine life. Initial production is expected by late 2008. The Wandoo Expenditure: $700m. Expenditure: $200m. project will result in significant growth in and around Employment: Construction: 330; Operation: 650 Employment: Construction: 160; Operation: 90 the small rural community of Boddington 120 km south-east of Perth. Nickel Oil & Gas Developments Expenditure: $2b. Ravensthorpe - Lateritic Nickel Mine and Hydro- Employment: Construction: 1000; Operation: 650 Enfield (Carnarvon Offshore Basin) - Oil Field metallurgical Processing Plant WOODSIDE ENERGY LTD Heavy Mineral Sands BHP BILLITON - RAVENSTHORPE NICKEL The Enfield oil field, located 50 km north-west of OPERATIONS PTY LTD Exmouth, started production in July 2006. Oil is Waroona - Heavy Mineral Sands Mine On 23 March 2004, BHP Billiton approved the development of the Ravensthorpe Nickel Project produced via five subsea wellheads connected by ILUKA RESOURCES LIMITED flowlines to a disconnectable, double-hull FPSO that will produce up to 220,000 t/a of mixed nickel/ Iluka approved the development of its Waroona cobalt hydroxide, to be processed at BHP Billiton’s vessel. The Nganhurra FPSO has a maximum design mineral sands mining operation in March 2006. Yabulu refinery in Queensland. Plant construction production rate of about 100,000 bbl/d and a storage Located approximately 120 km south of Perth, is underway and the first shipment of product of capacity of about 900,000 barrels of oil. The facilities Waroona will supply feedstock into Iluka’s Capel hydroxide from Ravensthorpe is expected in mid 2007 are designed to operate for 20 years. Enfield has operations. Construction has commenced and with full production from the second half of 2008. estimated oil reserves of about 127 million barrels. production is expected to start in Q1 2007. The Expenditure: $1.8b. Expenditure: $1.48b. deposit contains a proven reserve of 8.4 Mt of ore at a Employment: Construction: 2000; Operation: 380 Employment: Construction: 100; Operation: 80 heavy mineral grade of 10.2%. Waroona is estimated to have a three-year life. Oil & Gas Developments Expenditure: $39m. Employment: Operation: 60 Angel (Carnarvon Offshore Basin) - Gas and Ammonium Nitrate Condensate Field Iron Ore WOODSIDE ENERGY LTD Kwinana - Ammonium Nitrate Plant & Expansions The Angel gas and condensate field, operated by CSBP CHEMICALS Hope Downs - Iron Ore Mine Woodside as part of the North West Shelf Venture CSBP Limited has environmental approval to double HOPE DOWNS LIMITED (“NWSV”), includes the NWSV’s third fixed production the capacity of its existing ammonium nitrate Development proposals were approved by the platform, which will be remotely operated, three facility at its Kwinana operations. Construction government on 31 March 2006. Hope Downs Iron Ore subsea production wells and a 50 km subsea pipeline has commenced and the objective is to achieve assigned a 50% interest in the project to Hamersley which will link the new platform to the existing North commissioning by mid-2007. Iron. Construction work has commenced. Rankin production facility. Angel is expected to be Expenditure: $1.5b. fully operational by Q4 2008. The platform will be Expenditure: $200m. capable of processing 800 million standard cubic feet Employment: Construction: 1000; Operation: 300 of gas a day and 50,000 bbl/d of condensate. Char Kimberley - Koolan Island Iron Ore Mine Expenditure: $1.6b. Collie - Char Plant (Coal) AZTEC RESOURCES LIMITED North West Shelf - Project Expansion - WESFARMERS PREMIER COAL Aztec Resources has obtained environmental 5th LNG Train approval to develop a mining operation based on At its Premier coal mine near Collie, Wesfarmers WOODSIDE ENERGY LTD the ex-BHP Koolan Island iron ore deposits in A final investment decision for the 4.4 Mt/a Train 5 Energy is finalising the construction of a Yampi Sound, 130 km north of Derby. Aztec aims to expansion, with an associated second LNG loading jetty demonstration scale Char Plant with a target produce premium grade iron ore at a production rate production capacity at full operation of 50,000 t/a. The and extra processing facility support, was announced in of approximately 4 Mt/a over 9-10 years, with the June 2005. Site work started in Q3 2005. plant will provide sufficient volume to allow potential possibility of an extended mine life dependent on the customers to fully assess the product. Char has identification of additional resources. Construction The project is expected to take about three years to complete, with commissioning due to start around applications in steelmaking, ferro-alloy production, commenced in June 2006 and Aztec anticipates that mineral sands processing, smelting applications and mid-2008 and first LNG export cargoes planned for mining will commence in December 2006, with the Q4 2008. some chemical plant processes. first ore shipment due in early 2007. Expenditure: $2.425b. Expenditure: $8m. Expenditure: $133m. Employment: Construction: 1500; Operation: 20 Employment: Operation: 10 Employment: Construction: 130; Operation: 220 Stybarrow (Carnarvon Offshore Basin) - Oil Field Mid West Region - Koolanooka/Blue Hills Hematite Coal BHP BILLITON PETROLEUM PTY LTD Iron Ore Mine BHP Billiton is proceeding with the development of Collie - Coal Mine (Ewington I) MIDWEST CORPORATION LIMITED the Stybarrow oil field, approximately 65 km north- THE GRIFFIN COAL MINING COMPANY PTY LIMITED Midwest Corporation commenced transporting the west of Exmouth, in 825 metres of water. It will be Griffin Coal plans to develop its Ewington I iron ore fines stockpiles at Koolanooka, about 160 km the deepest oil field development ever undertaken in deposit, approximately 2 km east of Collie, which south-east of Geraldton, early in January 2006, and Australia. Stybarrow will involve a subsea development has estimated recoverable reserves of 75 Mt. the first export shipment occurred in late February and an FPSO vessel which will be able to process Environmental approval has been given, subject to 2006. Midwest further proposes to re-open the approximately 80,000 bbl/d of liquids. A nine well acceptance of a final environmental management Koolanooka and Blue Hills hematite iron ore mines at drilling program commenced in September 2006 and plan. The mine will produce about 2 Mt/a coal for an initial rate of 1 Mt/a, commencing in mid-2007 and is scheduled to take 12 months to complete. Stybarrow and the adjacent small oil rim of the Eskdale field have private sector customers, including Griffin Energy’s 2008, respectively. Expenditure: $26.4m. estimated recoverable oil reserves of 60-90 million nearby Bluewaters 1 power station, presently under barrels. First production is expected in Q1 2008, with an construction. Employment: Construction: 40; Operation: 60 estimated economic field life of 10 years. Expenditure: $20m. Pilbara - Rapid Growth Project 3 Expenditure: $815m. Electricity BHP BILLITON IRON ORE PTY LTD Vincent (Carnarvon Offshore Basin) - Oil Field In October 2005, BHP Billiton announced Board WOODSIDE ENERGY LTD approval for the US$1.5 billion Rapid Growth Project Collie - Bluewaters Coal-Fired Power Station Approval of the first phase of the Vincent oil 3 (“RGP3”) expansion, which will increase capacity of GRIFFIN ENERGY development was given in March 2006. The field its Pilbara iron ore operations to 129 Mt/a. The key is located approximately 50 km north-west of Griffin Energy has commenced construction of the elements of RGP3 comprise the expansion of Area C, first of two 208 MW coal-fired power stations at the Exmouth in a water depth of about 350 metres. Oil additional sidings on the Newman railway and port will be produced through a subsea development proposed Coolangatta industrial estate, 10 km north- works at Nelson Point and Finucane Island. Initial and processed and stored in a FPSO vessel. Drilling east of Collie. Commissioning of Bluewaters 1 Base production is forecast to begin in Q4 2007, with actual activities are scheduled to commence in Q1 2007. Load Power Station is expected by late 2008. production of 129 Mt/a anticipated by 2008/09. First oil is planned for 2008 with initial production at Expenditure: $400m. Expenditure: $2b. about 100,000 bbl/d. Employment: Construction: 600; Operation: 50 Employment: Construction: 900; Operation: 150 Expenditure: $1b.

24 25 Prospect Prospect Projects Under Consideration (as at 07/11/2006)

Rare Earths Bauxite/Alumina in the vicinity of previously defined reserves. The first underground gold was produced in Q4 2004. The Mt Weld - Rare Earths Operations Wagerup/Willowdale - Alumina Refinery Train 3 company expects to make a decision on whether to LYNAS CORPORATION LTD Expansion proceed to full-scale underground mining in early 2007. A positive decision is expected to increase the Lynas has recently secured $75 million funding ALCOA WORLD ALUMINA AUSTRALIA life of the project to at least 2012. to develop an open pit mining operation at Mt Alcoa is investigating the feasibility of a third Expenditure: $87m. Weld, located about 35 km south of Laverton, and production train expansion at its Wagerup a rare earths processing plant in Malaysia. Lynas alumina refinery to increase capacity up to 4.7 has given the formal go-ahead for the project. Mt/a. Conditional approval of the project was Heavy Mineral Sands The mine has full environmental approval and pit recommended by the Environmental Protection development is expected to commence in early 2007 Authority in January 2006 and final environmental Cataby - Heavy Mineral Sands Mine following approval of the mining proposal. First approval is anticipated in 2006. ILUKA RESOURCES LIMITED production is scheduled in the second half of 2008. Expenditure: $1.5b. Iluka Resources proposes to develop a heavy The development at Mt Weld will involve mining Employment: Construction: 1000; Operation: 150 mineral sands mine near Cataby, 200 km north of and trucking ore to Leonora and then railing it to Perth, to produce up to 780,000 t/a of heavy mineral Esperance Port for export. The Mt Weld deposit Worsley/Boddington - Alumina Refinery Expansion concentrates over a 5-year period. The EPA has contains an estimated resource of 7.7 Mt at 11.9% to 4.4Mt/a released its report and recommendations on the grade for 917,000 tonnes of rare earth oxides (“REO”). WORSLEY ALUMINA PTY LTD proposal. Production is expected to commence Lynas is planning to mine up to 0.2 Mt/a of ore, in Q1 2008. BHP Billiton has environmental approval to expand producing 10,500 t/a of REO. A Heads of Agreement Gwindinup - Heavy Mineral Sands Mine for supply to a global consumer of rare earths was its Worsley alumina refinery from 3.7 Mt/a to 4.4 signed in February 2006. Mt/a. A final investment decision is dependent on BEMAX CABLE SANDS (WA) PTY LTD Expenditure: $80m. market conditions, including construction costs. The Gwindinup mineral sands project is located approximately 30 km south of Bemax’s Bunbury Employment: Construction: 12; Operation: 40 Expenditure: $900m. Employment: Construction: 500; Operation: 150 Mineral Separation Plant (“MSP”) and comprises the Gwindinup North and South deposits. Environmental Zinc/Copper approval for the project has been granted and Diamonds final environmental management plans have been North Eastern Goldfields - Jaguar - Argyle - Underground Diamond Mine approved. Development of the Gwindinup project is Base Metals Mine scheduled to commence in Q1 2007. The six-year plus JABIRU METALS LTD ARGYLE DIAMOND MINES PTY LIMITED project is expected to come online when operations Jabiru Metals Limited has commenced construction Argyle Diamonds has committed to an underground are completed at Ludlow at the end of 2007. An of the $56 million Jaguar copper-zinc mine 60 km mine at Argyle after a $100 million feasibility study existing wet plant will be used for the project north of Leonora. The mine is expected to have a was completed in late 2005. Argyle is progressing the and material will be treated in the Bunbury MSP. 5-year life, with concentrate production commencing main decline and full production for the first stage, Gwindinup contains a reserve of 5 Mt of ore at a heavy in Q2 2007. involving 7-8 Mt/a ore extraction, is expected to be mineral grade of 12.6%. reached in 2011, with average production of about Expenditure: $88m. Expenditure: $69m. 17 Mcts/a of diamonds until 2018. A second stage Employment: Operation: 100 project will extend mine life to 2024. Employment: Construction: 120; Operation: 35 Expenditure: $1.2b. Happy Valley - Heavy Mineral Sands Mine - Happy Zinc/Lead Employment: Construction: 250; Operation: 500 Valley Lennard Shelf (Pillara) - (Plant Expansion) BEMAX CABLE SANDS (WA) PTY LTD Zinc/Lead Mine Electricity Located adjacent to the Bemax’s Gwindinup deposits, TECK COMINCO the project will involve the mining of mineral sands Gnangara - Bioenergy from two deposits (Happy Valley North and South) Progress towards a restart of the mothballed Pillara BEACONS CONSULTING mine and concentrator has commenced. Annual located on private land and in a State Forest. The production is estimated to be 70,000 to 80,000 tonnes Beacons is planning the development of its Perth level of assessment for the project has been set at of zinc in concentrate during a mine life of four to five Bioenergy Project, involving a 45 MW base load power Environmental Review and Management Program. years. Mill start-up is anticipated in January 2007, station at Neerabup, 50 km north of Perth. The power Bemax is currently preparing a scoping document with full production by the end of Q1 2007. station will burn timber waste from pine plantations that will be open for public comment for a two week and municipal green waste. Financial closure is period. Happy Valley contains a reserve of around expected by 2006/07, with construction commencing 6 Mt of ore at a heavy mineral grade of 11.3%. Agriculture shortly after. Development of the north deposit is expected to Expenditure: $90m. commence in 2007 and on the south deposit in 2008. Mantinea Flats - Ord River Irrigation Scheme (Stage Employment: Construction: 250; Operation: 45 Expenditure: $69m. Employment: Construction: 100; Operation: 30 2 Development) - Mantinea Flats Mirambeena - Bioenergy Project The conceptual project consists of developing and BEACONS CONSULTING Jangardup South - Heavy Mineral Sands Mine servicing approximately 80 farms (about 4200 ha total) at Mantinea Flats for irrigated intensive Great Southern Bioenergy Holdings Ltd is planning a BEMAX CABLE SANDS (WA) PTY LTD horticulture which will then be offered for sale. staged 2 x 45 MW base load bioenergy power station The Jangardup South minerals deposit is situated at Mirambeena, near Albany. The plant will burn 54 km south of the Nannup township and adjacent Ord River - Ord River Irrigation Scheme residues from the harvesting of bluegums for export to the D’Entrecasteaux National Park. Cable Sands ORD STAGE 2 M2 AREA chips. Financial closure is expected in 2007 with the estimates that the deposit would provide 1.8 Mt of The potential exists for a 30,000 ha irrigated first 45 MW plant due to be operating by 2009. The minerals. Feasibility and environmental studies are agricultural development immediately to the north- second stage expansion is anticipated about two well advanced. An environmental impact statement east of the existing Ord Stage 1 development in years later. The company is also planning a wood for the project is being prepared. the far north of Western Australia. Environmental pelletising project based on processing plantation Expenditure: $70m. wastes as a feedstock for bio-energy plants. approval has been given for an irrigated agricultural Employment: Construction: 100; Operation: 50 project, and a native title agreement has been signed. Expenditure: $94m. The State is currently considering development Employment: Construction: 250; Operation: 45 Kemerton - Titanium Dioxide Pigment Plant options. Expansion Expenditure: $500m. Gold LYONDELL CHEMICAL COMPANY Employment: Construction: 650 Lyondell has environmental approval for a major Kalgoorlie - Super Pit - Golden Pike Cutback expansion of its Kemerton titanium dioxide pigment Ammonia/Urea KALGOORLIE CONSOLIDATED GOLD MINES PTY LTD plant near Bunbury to a capacity of 190,000 t/a. A KCGM is planning to extend the life of its open-cut decision to proceed is dependent on market factors. Burrup Peninsula - Ammonia Urea Plant mine by five years to 2017, with the Golden Pike Expenditure: $470m. DAMPIER NITROGEN Cutback. This involves the mine pit moving closer Employment: Construction: 500; Operation: 200 Dyno Nobel has purchased the interests of Plenty to residential areas of the town. Additional tailings River (Plentex) and Thiess in a large scale ammonia/ storage facilities and waste rock dumps will also be Keysbrook - Heavy Mineral Sands Mine urea project to be located on the Burrup Peninsula. required. KCGM’s Public Environmental Review has OLYMPIA RESOURCES LIMITED Dyno Nobel has put plans for this project on hold due completed its public review period. Olympia commenced the environmental approval to current economic conditions. Employment: Operation: 1043 process for its proposed mine near Keysbrook, 70 km Dyno Nobel is also conducting a feasibility study south of Perth, in June 2005. A Public Environmental Sunrise Dam - Gold Mine - Underground into developing a 230,000 t/a ammonium nitrate Review document was released, with the eight week production facility, which could be located adjacent Development public review period ending in late August 2006. to the ammonia/urea plant. The alternative (to a ANGLOGOLD AUSTRALIA LTD Olympia plans to start mining in early 2007, subject large scale ammonia plant) of building a small scale AngloGold Ashanti commenced underground to government environmental approvals. Olympia ammonia plant to supply the ammonium nitrate plant development in October 2003 at the Sunrise Dam has identified proven and probable reserves of 41 is being investigated as part of the feasibility study. gold mine to test the feasibility of expanding to Mt of ore containing 1.2 Mt of zircon, ilmenite and Expenditure: $900m. underground operations. The study involves the leucoxene. The products will be trucked to Picton, Employment: Construction: 1000; Operation: 130 development of two declines, totalling 9 km in length, near Bunbury, for separation and export.

24 25 Prospect Prospect Projects Under Consideration (as at 07/11/2006)

The estimated mine life is 8 years. Mid West Region - Extension Hill Hematite Mine Pilbara - Rapid Growth Projects 4+ Expenditure: $31m. MT GIBSON IRON BHP BILLITON IRON ORE PTY LTD Employment: Operation: 30 Mount Gibson has commenced a definitive feasibility Further to Rapid Growth Projects (“RGP”) 1, 2 and study to examine the viability of mining 2-3 Mt/a 3, BHP Billiton proposes to expand the production Kwinana - Titanium Dioxide Pigment Plant capacity of its Pilbara iron ore operations to nominally Expansion hematite to be exported from the Geraldton Port. The project has been set a level of environmental 152 Mt/a, subject to board and government approvals. TIWEST JOINT VENTURE assessment of PER and the company anticipates RGP4, which is focussed on expanding the Newman operations, is currently in the feasibility stage. Tiwest has environmental approval for the staged that mining will commence in late 2007 subject to expansion of its Kwinana pigment plant to 180,000 t/a. Expenditure: $1.8b. A decision to proceed with further stages within this government regulatory approval. approved expansion is dependent on market conditions. Expenditure: $67m. Pilbara - West Angelas Mine Expansion to 25 Mt/a Employment: Construction: 108; Operation: 98 Employment: Construction: 150; Operation: 100 ROBE RIVER MINING CO PTY LTD Robe River is considering expanding operations at its Shark Bay - Coburn - Heavy Mineral Sands Mine Mid West Region - Extension Hill Magnetite Mine West Angelas mine to increase production from 25 GUNSON RESOURCES LIMITED ASIA IRON/SINOM Mt/a to 35 Mt/a. Gunson proposes to develop the Coburn mineral sands A feasibility study has been completed on the Expenditure: $217m. project, located south of Shark Bay, about 650 km north production of up to 5 Mt/a of magnetite concentrate, Employment: Construction: 200; Operation: 300 of Perth. The project consists of the Amy Zone deposit which will be transported by slurry pipeline to which has a total indicated and inferred resource of 710 Geraldton for export. A PER level of environmental Mt, averaging 1.4% heavy minerals. The project has Iron Ore Processing received Federal and State government environmental approval is currently progressing, with site approvals for mine development. Environmental construction anticipated to commence in mid-2007 Fortescue (Cape Preston) - Mine and Pellet Plant management plans are expected to be approved in late subject to government regulatory approval. MINERALOGY PTY LTD January 2007. Gunson is working towards finalising Expenditure: $715m. Mineralogy Pty Ltd’s Fortescue magnetite deposits its Definitive Feasibility Study and a final investment Employment: Construction: 400; Operation: 300 lie over three discrete blocks (North, Central and decision is likely in early 2007. Southern), some 20 km from deep water at Cape Expenditure: $85m. Mid West Region - Karara Hematite Mine Preston, south-west of Dampier. Mineralogy has now Employment: Construction: 200; Operation: 20 GINDALBIE METALS LIMITED finalised an agreement with the Chinese company CITIC Pacific Ltd on development of the Central ore Gindalbie Metals proposes to develop a direct Iron Ore block. Mineralogy will retain rights to the Southern shipping hematite ore project of 1.5-3 Mt/a at Mt and Northern blocks. The CITIC agreement will Karara, 220 km south-east of Geraldton, with mining Brockman - Brockman 4 Iron Ore Mine involve mining, concentrating, pelletising and to commence in Q3 2007 and shipping in Q1 2008. The HAMERSLEY IRON PTY LIMITED export through new port facilities at Cape Preston. company is currently completing a drilling program This could lead to a number of projects, exploiting Hamersley Iron is currently undertaking pre- to define a JORC-compliant resource. Gindalbie Mineralogy’s magnetite deposits, producing feasibility studies on developing a new mine at proposes to truck the ore to Morawa, then rail it concentrate, pellets and DRI. Environmental approval its Brockman 4 deposit. Construction is likely to has been granted. commence in 2007, with commissioning in 2009. from Morawa to Geraldton for export. The project is currently undergoing environmental assessment at a Expenditure: $2b. Cape Lambert - Cape Lambert Port Expansion Public Environmental Review level. Employment: Construction: 2000; Operation: 400 ROBE RIVER MINING COMPANY PTY LIMITED Expenditure: $75m. Robe River Mining is considering expansion of the Employment: Construction: 100; Operation: 130 Molybdenum capacity of its port facilities at Cape Lambert, east of Karratha. The expansion would lift the design Mid West Region - Karara Magnetite Mine Pilbara - Spinifex Ridge Mo/Cu mine iron ore export capacity of the facilities to 85 Mt/a. GINDALBIE METALS LIMITED MOLY MINES LIMITED The expansion is currently being environmentally The Spinifex Ridge Project is located 50 km north- assessed at an EPS level. Gindalbie Metals is currently completing a definitive feasibility study for the development of a east of Marble Bar in the Pilbara region of Western Expenditure: $302m. magnetite mine at its Mt Karara deposit, 220 km Australia. Moly Mines completed its pre feasibility Employment: Construction: 450; Operation: 70 study in February 2006 and has progressed south-east of Geraldton. A JORC inferred resource immediately into a bankable feasibility study, which Great Southern Region - Southdown Magnetite Mine of 737 Mt at 37.1% iron has been delineated and is due for completion by mid 2007. Once operational, GRANGE RESOURCES LIMITED exploration drilling is continuing to support a 7.7- the 15 Mt/a operation will be Australia’s first world- Grange is finalising a bankable feasibility study on 10 Mt/a concentrate project for at least 40 years. It class molybdenum and copper project. the 479 Mt Southdown magnetite iron ore project, is proposed that the magnetite concentrate will be Expenditure: $622m. transported by slurry pipeline to the Geraldton Port located approximately 90 km north-east of Albany. Employment: Construction: 400; Operation: 375 The company proposes to produce 6.6 Mt/a of for export and pelletising overseas. The company magnetite concentrate, which will be transported anticipates that first shipment will occur in late 2009. Nickel via a slurry pipeline to the Port of Albany for export Expenditure: $1b. and pelletising overseas. The study is expected to be Goongarrie - Kalgoorlie Nickel Project - Mine (laterite completed in late 2006 and, subject to government Employment: Construction: 400; Operation: 240 ore) and Hydrometallurgical Processing Plant approval, construction is anticipated in Q3 2007, with Mid West Region - Weld Range Iron Ore Mine commissioning Q4 2009. Environmental approval is HERON RESOURCES LTD progressing through a PER process. MIDWEST CORPORATION LIMITED A detailed pre-feasibility study is continuing Expenditure: $560m. Midwest Corporation proposes to develop a 15-20 for the development of a 50,000 t/a mine and Employment: Construction: 600; Operation: 200 Mt/a iron ore mine at Weld Range 65 km south- hydrometallurgical processing plant at Goongarrie, west of Meekatharra, producing a mix of hematite about 85 km north of Kalgoorlie. The project will be Jack Hills - Jack Hills Hematite Mine Stage 1 lump and fines. The project is expected to utilise based on the company’s laterite nickel resources of MURCHISON METALS LIMITED a new standard gauge 390 km rail line and a new 903 Mt grading 0.74% Ni and 0.05% Co. Heron and Inco Murchison Metals proposes to develop an initial 1.5-2 deep water port facility at Oakajee. The company signed a formal agreement in July 2005 under which Mt/a direct shipping hematite iron ore mine at Jack commenced an extensive drilling program in June they will complete the feasibility assessment and, if Hills, 380 km north-east of Geraldton. The company 2006, with a pre-feasibility study to be completed warranted, develop the project. Inco is completing intends to crush and screen the ore on site prior to a confirmatory diamond drilling program, aimed at during 2006. Subject to completion of successful confirming leach feed grade estimates derived from trucking the ore to the port of Geraldton for export. studies and government regulatory approvals, the Environmental approval for the project was received Heron’s previous RC drilling. Inco proceeded to Step 2 company anticipates that first shipment will occur Q3 2006 and the company has commenced pre-strip of the pre-feasibility Study on 25 September 2006 and operations. Murchison Metals anticipates that first late 2010. has until 30 September 2007 to complete the Step 2 ore shipment will occur in December 2006. Expenditure: $800m. leaching and beneficiation test-work and determine the Expenditure: $41m. Employment: Construction: 900; Operation: 220 appropriate drilling methods and spacings to complete the Step 3 resource drill-out. Employment: Construction: 30; Operation: 90 Pilbara - Iron Ore Mine Rail and Port Development Expenditure: $1.4b. Jack Hills - Jack Hills Hematite Mine Stage 2 (and FORTESCUE METALS GROUP (FMG) Employment: Construction: 1000; Operation: 300 Mid West Infrastructure) FMG is proposing to develop new iron ore mines at North Eastern Goldfields - Yakabindie Nickel Mine MURCHISON METALS LIMITED Christmas Creek and Cloud Break in the Chichester BHP BILLITON NICKEL Murchison Metals is progressing a definitive Ranges of the eastern Pilbara. The mines will be feasibility study and exploration drilling on its serviced by a multi-user railway and new port The Yakabindie project is based on a large nickel proposed Jack Hills Stage 2 project. The company facilities at Port Hedland. Preliminary earthworks deposit situated near BHP Billiton’s existing Mt Keith nickel project and is estimated to contain a resource of anticipates that 10-25 Mt/a direct shipping hematite and dredging have commenced at Port Hedland. would be transported by a new railway to a new 289 Mt @ 0.58% nickel. BHPB is considering developing Construction of the railway is planned to start in Q3 deepwater port at Oakajee, north of Geraldton. Yakabindie as an integrated part of the Mt Keith project, Construction of Stage 2 is predicted to commence in 2006 to supply the Chinese market from early 2008. and is conducting a pre-feasibility study, including infill mid-2008 with first ore shipments in late 2010. Expenditure: $2.5b. drilling of the ore body and metallurgical testing. Expenditure: $1.7b. Employment: Construction: 1500; Operation: 300 Expenditure: $20m.

26 27 Prospect Prospect Projects Under Consideration (as at 07/11/2006)

Pilbara - Nickel Mine and the Minister for the Environment hopes to Platinum Group Metals SHERLOCK BAY NICKEL COMPANY release his decision late 2006. The Gorgon joint Sherlock Bay Nickel Corporation is currently venturers have market commitments for 75% of Halls Creek - Panton Sill-Platinum Project investigating the feasibility of the Sherlock Bay nickel the LNG product. The joint venture is anticipating PLATINUM AUSTRALIA LIMITED project, 100 km east of Karratha. The company environmental approvals so as to be in a position to The Panton platinum-palladium deposit is located intends to develop an approximately 9000 t/a nickel start construction in 2007. 60 km north of Halls Creek in the State’s Kimberley project based on the Bioheap ore treatment process. Expenditure: $11b. region, and contains the highest grade of PGMs A major review of the project is underway, taking into Employment: Construction: 3000; Operation: 600 account current resource estimates and to confirm known in Australia. A feasability study has found that while the project is technically sound, it is not the results of prior metallurgical testing. The key Macedon (Carnarvon Offshore Basin) - Gas Field focus in the coming year is to complete the necessary commercially viable at current metal prices and BHP BILLITON PETROLEUM PTY LTD metallurgical test programs, which remain on the exchange rates. Further optimisation study work will critical path for project development. In January 2006 The Macedon gas field, located about 50 km north continue so that the project is in the best possible the company announced the commencement of test of Exmouth, was discovered in 1992 by the West position to move forward when more favourable work to explore options for cost effective methods of Muiron-3 well, with a follow-up appraisal campaign conditions prevail. acid supply. All other feasibility work is on hold until in 1994. BHP Billiton is continuing to investigate Pilbara - Platinum Deposit the acid generation test work is complete. domestic market opportunities for Macedon, which Expenditure: $30m. is estimated to contain a gas resource of up to 1.2 HELIX RESOURCES NL Tcf. Gas recovered to date is dry, containing no Helix Resources NL has established an indicated Oil & Gas Developments condensate or LPG. resource of 9.2 Mt at 2.9 g/t combined platinum, palladium, rhodium, and gold, 0.2% nickel, and 0.3% Browse Basin - Ichthys (Browse Offshore Basin) Onslow - LNG Plant copper at its project site near Karratha. Preliminary INPEX BHP BILLITON PETROLEUM mining studies suggested a mining rate of combined The Ichthys gas and condensate field was discovered BHP Billiton Petroleum and ExxonMobil are open cut and underground production of 1.5 Mt/a. in 1980 and is located in 250 metres of water, conducting a pre-feasibility study into the Further activity was postponed in early 2003, as a approximately 440 km north of Broome and 250 km development of their jointly owned Scarborough result of poor exploration results and a decreased from the mainland. The permit is 100% owned by gas field located offshore in about 900 metres of palladium price. The project is under review. Inpex, which has drilled 6 discovery and appraisal water and 280 km north-west of Onslow. The project wells since 1998. The P50 estimated recoverable proposal includes development of an associated 6 Salt resource in place is approximately 10 Tcf of gas and Mt/a LNG plant at a site approximately 4.5 km south- 312 mmbbl of condensate and LPGs. Development west of Onslow. The bulk of the LNG produced is to Exmouth Gulf - Yannarie Solar Salt Project of the field is planned to include offshore semi- STRAITS SALT PTY LTD submersible facilities and a subsea pipeline to an be sold to the United States west coast and Asian offshore location, where approximately 6 Mt/a of energy markets. The Pilbara LNG Project sanction is Straits Salt is currently investigating the feasibility LNG will be produced for export to the Asia-Pacific expected by Q4 2007 and construction is scheduled to of producing up to 10 Mt/a of salt in the eastern market, with the first LNG shipment scheduled commence soon after. LNG production is anticipated Exmouth Gulf area, 1100 km north of Perth. It for 2012. The company is also looking at new by late 2011. has exploration licences over the area of interest technologies associated with GTL and DME, as well Expenditure: $5b. while it undertakes its feasibility studies. Straits as possibilities for domestic supply. has submitted its Environmental Review and Employment: Construction: 2400; Operation: 125 Expenditure: $8b. Management Program to the EPA and is in Employment: Construction: 2500; Operation: 500 Pyrenees Development (Carnarvon Offshore Basin) discussions with government regarding appropriate - Oil Fields tenure and associated matters. Browse LNG Development - Torosa/Brecknock/ Expenditure: $200m. Calliance (Browse Offshore Basin) BHP BILLITON PETROLEUM PTY LTD Employment: Operation: 120 WOODSIDE ENERGY LTD. The proposed Pyrenees development is located 45 km north of Exmouth in approximately 200 metres Woodside discovered gas and condensate at Torosa Timber (Scott Reef) in 1971, Brecknock in 1979 and Calliance of water. The project is in the feasibility stage. The preferred development concept is an FPSO vessel (Brecknock South) in 2000. The fields are located Mirambeena - Engineered Strand Lumber connected to subsea wells and flowlines. The FPSO in water depths of 30 to 800 metres, about 425 LIGNOR LTD km north-west of Broome and 250 km from the will have a design capacity of 80,000 bbl/d of liquids. mainland. The reserves in these fields are currently The field life is estimated to be 20 years. Lignor Ltd is proposing the development of held as a contingent resource and are estimated to an engineered strand lumber plant located at be in excess of 20 Tcf of gas and 300 million barrels Scarborough (Carnarvon Offshore Basin) - Gas Field Mirambeena, near Albany. The plant will source most of condensate. During 2007 Woodside (Operator EXXON MOBIL of its timber from the extensive eucalypt plantations and ~50% interest holder) is planning to drill one The gas field is located in around 900 metres of water growing in the Albany region and will use technology exploration well and a further four appraisal wells and about 280 km offshore, in the Carnarvon Basin developed by the German engineering company, as well as acquire additional 3D seismic data and with probable reserves of approximately 8 Tcf of gas. Siempelkamp. The company has completed its conclude engineering evaluation studies to finalise BHP Billiton Petroleum completed 3D seismic survey feasibility study, with construction planned for 2007 a development concept for a LNG production facility work and drilling of Scarborough-3, 4 and 5 wells and operations by late 2008. capable of supporting up to 15 Mt/a of LNG. Start-up Expenditure: $300m. of LNG production is expected within the window of during 2004 and early 2005. Evaluation of the data 2012 to 2014. is complete and ExxonMobil announced in May 2006 Employment: Construction: 400; Operation: 140 that it is now interested in assessing the potential Expenditure: $12-14b. development. BHPB is also conducting a pre- Employment: Construction: 2000; Operation: n/a Vanadium feasibility study to assess the viability of providing Carnarvon Basin - Pluto LNG Scarborough gas to its proposed Pilbara LNG plant Pilbara - Balla Balla Vanadium/Ferroalloys Project WOODSIDE near Onslow. AUROX RESOURCES LIMITED The Pluto gas field was discovered in April 2005. It Expenditure: $100m. Aurox is nearing completion of its bankable is approximately 180 km from the Burrup Peninsula. feasibility study on the Balla Balla vanadium/ The field contains an estimated resource of at least Tern/Petrel (Bonaparte Offshore Basin) - Gas Fields titanomagnetite iron ore project located mid-way 3.5 Tcf of relatively dry gas, with small amounts SANTOS LIMITED between Karratha and Port Hedland. Granted of condensate and low levels of carbon dioxide. The offshore Petrel gas field, discovered in 1969, is mining leases contain a 306 Mt resource grading Woodside plans to develop LNG facilities on the located about 250 km west of Darwin on the WA/NT 0.66% V2O5, 43% Fe and 13% Ti, including an Burrup Industrial Estate to produce 5-7 Mt/a of seabed border in the Bonaparte Basin. The offshore initial ore reserve of 54 Mt at 0.73% V2O5. Figures LNG from this field. A final investment decision is Tern gas field, discovered in 1971, is located about confirm a likely 30-year mine life. anticipated shortly. 300 km west of Darwin in WA waters in the Bonaparte Windimurra - Vanadium Pentoxide mine and Expenditure: $5b. Basin. Field development options include installation Employment: Construction: 1500; Operation: 150 of unmanned offshore production platforms with a processing plant PRECIOUS METALS AUSTRALIA LIMITED Gorgon (Carnarvon Offshore Basin) - Gas and pipeline to a gas treatment plant south of Darwin. Condensate Field The development possibilities for these fields have Windimurra, located approximately 80 km east of been enhanced by recent significant discoveries Mount Magnet, has JORC-compliant resources of CHEVRON AUSTRALIA PTY LTD by other parties nearby, which may provide tie-in 147.75 Mt @ 0.46% vanadium, including a proven The Gorgon Joint Venture is considering an LNG potential for Petrel and Tern to service domestic reserve of 50.4 Mt @ 0.49% vanadium. PMA has and domestic gas development (up to 10 Mt/a) at gas customers. A conceptual plan involves initial completed a feasibility study and construction is Barrow Island, based on gas from the Gorgon and scheduled to commence in 2007, with production Jansz fields. The EPA released its environmental development of Petrel with a pipeline to an onshore in 2008. assessment Bulletin on 6 June 2006 recommending gas plant and a subsequent phase that completes that the project not proceed. The independent Petrel and develops Tern. Expenditure: $149m. appeals convenor is currently reviewing this advice Expenditure: $1b. Employment: Construction: 400; Operation: 120

26 27 Prospect Prospect Kelly Line stands the test of time

Between five and eight cyclones are likely to impact on the northwest of Australia this summer, two of which are likely to cross the WA coast, causing inconvenience to some coastal communities. But, a potentially greater threat exists in the form of a storm surge, with authorities warning that people should never become complacent when evacuation warnings are issued.

Despite three cyclones and record A spokesman for the WA Severe Weather rainfall of 742 mm in the first three Section of the Bureau of Meteorology said months of 2006, the town of Karratha lessons from Hurricane Katrina, which held up well after an extremely hit New Orleans in August 2005, are a rough start to the year. great reminder of what an extreme storm surge can do. While Bulgarra Oval on the eastern He said that while the Kelly Line was outskirts of Karratha became flooded, an acceptable risk assessment for town the direct result of heavy rain, there were planning purposes, it is important that no storm surge problems in the town. Karratha residents know what to do Once again the good reputation of the during an emergency. In other words: “Kelly Line” remained intact. take notice and act on evacuation warnings when they are given by the local It was back in the 1960s that Public State Emergency Service. Works Department engineer, Dr Des Kelly, drew a line on a map that defined Karratha, which was gazetted as a the expected extent of any storm surge town on 8 August 1969 to initially impact, and declared that it would be accommodate iron ore workers in the safe to build the town of Karratha Hamersley Ranges and later for the beyond this point. North West Shelf project, has never been threatened by a storm surge. However, in The Kelly Line follows approximately the early years of the town’s development the same path as Balmoral and a few local sceptics emerged, to a point Now retired: Des Kelly at home in his City Beach garden. Searipple Roads on the north side where Dr Kelly’s calculations were later of the Karratha townsite. verified by experts at Queensland’s James Cook University. Dr Kelly, later the Director-General of Mines and Chief Executive Officer of the Dr Kelly, who retired from the WA Public Department of Resources Development, Service on 4 February 1999 on his 65th made a series of calculations based on birthday, was involved in numerous the history of local tides. important infrastructure projects in Western Australia, including construction In simple terms, the Kelly Line is about of the Broome jetty and numerous major three metres above the highest-recorded works associated with the development astronomical tide for the Dampier/ of the State’s iron ore, bauxite, alumina, Karratha area. nickel and petroleum industries. His last act of public service was to oversee the The Bureau of Meteorology says although sale of the Dampier-to-Bunbury natural there is only a small risk of a significant gas pipeline. storm surge occurring at Karratha in Making a splash: Children frolic in a flooded section of Bulgarra Oval on the eastern outskirts of Karratha last any given year, it is only a matter of time Dr Kelly received an Order of Australia February. Luckily the excess water was caused by torrential before one does happen. award for his services to mining in 1992. rain from cyclone Emma, and not a storm surge.

5m storm surge Normal high tide Mean sea level Normal low tide

28 Prospect Significant resource projects underway Visit us online or planned in Western Australia

Western Australia continues to lead the way as Australia’s No.1 Prospect can be downloaded free of resources investment destination, with more than $81 billion worth charge from the Internet by visiting the of projects either underway or planned for the State over the next few website of the Department of Industry years. This will bring tremendous benefits to the State including more and Resources at: www.doir.wa.gov.au than 32,000 additional construction and 8000 full-time jobs.

Project value Employment (estimated A$m) Construction Permanent Alumina Prospect Alcoa’s Wagerup/Willowdale refinery Train-3 1500 1000 150 Subscription/Change of address expansion ABN: 69 410 35 356 Worsley Alumina’s refinery expansion 900 500 150 Sub total 2400 1500 300

Iron and steel Name: BHP Billiton’s future growth strategy 3800 900 150 Fortescue Metals Group’s mine, rail and port proposal 2500 1500 300 Gindalbie Metals’ Karara magnetite mine and pellet 1000 400 240 plant Grange Resources’ Southdown magnetite mine 560 600 200 Hope Downs Limited’s iron ore mine 1500 1000 300 Position: Murchison Metals’ Jack Hills 1&2 mine & 1700 30 90 infrastructure Asia Iron/Sinom’s Extension Hill mine 715 400 300 Organisation: Midwest Corp’s Weld Range mine 800 900 220 Mineralogy’s Cape Preston mine and pellet plant 2000 2000 400 Address: Robe River’s mine, rail and port upgrades 302 450 70 Robe River’s West Angelas mine expansion 217 200 300 Hamersley Iron’s Yandicoogina expansion 700 330 650 Sub total 15794 8710 3220 Nickel/cobalt Type of business: Heron Resources’ Goongarrie mine and plant 1400 1000 300 BHP Billiton’s Ravensthorpe mine 1800 2000 380 Sub total 3200 3000 680 Phone number: Petrochemicals CSBP Chemical’s Kwinana ammonia nitrate plant 200 n/a n/a Email Dampier Nitrogen’s ammonia-urea plant 900 1000 130

Sub total 1100 1000 130 Please tick the appropriate box Oil, gas and condensate Please add me to your mailing list to receive Prospect magazine. I would like a subscription for Woodside’s Browse Basin LNG project 14000 2000 n/a one year @ $12 (incl. GST) Chevron’s Gorgon gas/condensate project 11000 3000 600 two years @ $22 (incl. GST) Woodside’s Vincent oil project 1000 n/a n/a three years @ $32 (incl. GST) Inpex’s Ichthys LNG project 8000 2500 500 Woodside’s Angel gas/condensate project 1600 n/a n/a My cheque made out to the Department of Industry and North West Shelf JV’s LNG Train-5 2425 1500 20 Resources, is enclosed OR please debit the amount to BHP Billiton’s Onslow LNG plant 5000 2400 125 my credit card using the following details: Santos’ Tern–Petrel gasfield project 1000 n/a n/a Type of card: Visa Bankcard Mastercard Woodside’s Pluto LNG plant 5000 1500 150 BHP Billiton’s Stybarrow oil project 815 n/a n/a Sub total 49840 12900 1395 Expiry date Other This form will become a tax invoice for GST purposes when payment is made. Argyle Diamonds’ underground mine 1200 250 500 Change of address (please make changes required on one of your old labels). BGM’s Boddington Wandoo gold mine expansion 2000 1000 650

Griffin Energy’s Bluewaters coal-fired power station 400 600 50 Please photocopy or cut coupon and mail to: Lyondell’s titanium dioxide pigment plant expansion 470 500 200 Prospect subscriptions Ord irrigation (Stage 2) project 500 650 550 Information Centre Department of Industry and Resources Lignor’s engineered strand lumber project 300 400 140 Mineral House, 100 Plain Street Moly Mines’ Spinifex molybdenum/copper mine 622 400 375 East Perth, Western Australia 6004 Straits Resources’ Yannarie salt project 200 n/a 120 Sundry projects — at least another 3000 2000 300 Sub total 8692 5800 2885 TOTAL 81026 32910 8610 From September 2006 Major Resource Development Projects: Western Australia

INSET B Mutineer/ INSET C Sunrise. Exeter/ CampbellP Troubador . EaglehawkEgretHermes Endymion Searipple  Lambert Wonnich P . Kelp Deep Capella PP / / P Angel  /Sinbad .Doric/Ulidia  Cossack Bambra. .Linda Perseus P PNorth  /Jahal Gaea/ Wanaea Harriet/Gudrun BLee. Laminaria East Chudditch. Dockrell IshmaelP Rankin  Legendre North /RoseC PPMonty / Buffalo Varanus Island A Keast PP Goodwyn Legendre South North Alkimos Echo/Yodel P P P Io/JanszP Goodwyn South/Pueblo Tidepole Agincourt   Gipsy Josephine  Urania. . Rankin/P Burrup Peninsula Monet/Simpson / S.Plato Bayu-Undan Jansz. Wheatstone Sculptor Dixon/West Dixon P . Ammonia /Tanami / Little Sandy/Pedirka/North Pedirka/ Eurytion . Geryon . Iago/N Tryal Rocks . . Hoover Victoria Pluto Reindeer Ammonia-urea / Double island P Wilcox CaribouP Gorgon Corvus. Ammonium Nitrate Barrow / Jabiru . Island Maenad. Orthrus Wandoo   Desalination Barrow Island / Challis/Cassini PChrysaor/Dionysus Puffin/ PWest Tryal Rocks LNG / / Stag Skua /Montara SEE INSET C . Petrel John Brookes . Cape Lambert . Crux Gorgon P Parker Point L L Spar . Dampier . Dampier salt N Tern East Spar . Cape Preston L Karratha . Torosa Blacktip. Woollybutt / PIchthys I Radio Hill . Brecknock ) Balmoral :Whundo Cu Zn + Munni Munni . Calliance ) Balmoral South Turtle / = Chinook/Scindian Mitchell Plateau Coniston/  Griffin / /Novara  Eskdale/ Taunton South Chervil Ord Stage 2-M2 SkiddawEnfield WyndhamL  / / Vincent Yammaderry Crest Ord Stage 2-Mantinea Flats  Stybarrow / / Ravensworth/Crosby  Saladin Koolan Island   ./  ) Laverda . Pyrenees Cowle  Skate Cockatoo Island ) ) Ord Stage 1 . L al Gas Pipeline ) Scafell  Roller r Robe Middle Robe Mesas Lake Argyle Hydro  Macedon Coaster / NOnslow ) Robe Mesa J Mesa A Stickle . Pilbara LNG ) Bungaroo Creek Tubridgi KIMBERLEY ? erth-Dampier Natu Argyle P . Point Torment DerbyL Lloyd N Boundary Exmouth Gulf West Terrace // Sally MalayI Homestead ) / ? Ellendale Silvergrass ) Sundown ICopernicus L Blina Panton Sill + Nammuldi ) Broome Manyingee Brockman 2 ) / Rough Range Brockman 4 ) :Pillara Zn Pb 0 100 E Paulsens 200 km

RESOURCE SYMBOLS Bauxite-Alumina <Alumina refineries = SEE INSET B Mines and deposits Chemicals / Petrochemicals / Petroleum Coyote E Processing plants / refineries Port Hedland .Natural gas field Scarborough . ) Pardoo L NPort Hedland Salt /Oil field  Salt Creek6Balla Balla ) Nimingarra Natural gas / oil field Zn Pb : Yarrie) PNatural gas / condensate field I Sherlock Bay Natural gas / oil / condensate field : Whim Creek Cu : Chromite EIndee Spinifex Ridge Mo Cu > Wodgina O Mines and deposits : Sulphur Springs Zn Cu Clays Brick / tile procesing plants Woodie Woodie M : Coal E Telfer Au Cu C Nifty Cu Coal/coal bed methane (CBM) mines and deposits PILBARA Golden EagleE Lignite mines and deposits MAnt Hill : Copper-Lead-Zinc Cloud Break) Maroochydore Cu Co :Mines and deposits )Christmas Creek Western 4 ) Roy Hill Kintyre Diamonds Marandoo ) )Yandi/BHPB ?Mines and deposits Tom Price ) ) Yandicoogina/HI Beasley River ) ) ) Mindy Mindy Gold Mining Area C ) )  E Hope Downs ) Rhodes Ridge Mines and deposits Paraburdoo) ) )East Angelas Gypsum West Angelas ) Eastern Range ) Giles Mini ) ) Orebody 23, 25 & 18 SMines and deposits Channar ) )Jimblebar NLake Mt Whaleback > Heavy mineral sands Coobina Disappointment HMines and deposits — titanium-bearing sands Potash 'Mines and deposits — garnet-bearing sands *Ti02 pigment and synthetic rutile plants Iron ore L S Lake MacLeod )Mines and deposits N Lake MacLeod 9Downstream processing plants Limestone-Limesand Mines and Deposits Carnarvon #Cement plants Plutonic E Magnesite Fortnum E M KMines and Deposits Horseshoe South Manganese ore MMines and deposits TDownstream processing plants Wingellina Jack Hills) Nickel I IMines and deposits Shark BayLN EJundee/Nimary I Magellan Pb: QSmelters and refineries West Musgrave Bluebird–Meekatharra H Gabanintha WilunaE Phosphate Coburn E E Weld Range ) 6Wiluna West ) Williamson 0Mines and deposits I Honeymoon WellI Lake Way E Yeelirrie Lake Maitland Platinoids Burnakura Nowthanna + EGidgee IMt Keith Mines and deposits YakabindieI E Bronzewing/Mt McClure Rare earth elements Barrambie 6 I 2Mines and deposits Cosmos Waterloo LeinsterI EMoolart Well Salt/Potash EDarlot NProduction facilities / pans INSET A Sandstone PlantAgnew E I Thatcher Kwinana/Rockingham Port Gregory Hill 50 E E E Thunderbox Silica - Silica Sand ) Tallering Peak Lawlers E Soak ' E K Marshall Pool RMines and deposits L AIS Jetty 0 50km 6 Lords Henry & Nelson IK Sickle 8 < Windimurra Jaguar Zn Cu: E Silicon smelters Alumina Refinery H Gullewa Au Cu E Whisper E Brightstar Talc Gingin OakajeeL E Kirkalocka Plant Tarmoola E E E Mikado BP Oil Refinery Narngulu Synthetic : Golden Grove Zn Cu KI 4Mines and deposits L E 0 # Cement and Lime Chandala Geraldton * Rutile Minjar E Gossan Hill Ag Au Sons of GwaliaEMurrin E 2Mt Weld Tantalum Alinta Wind farm Mt Karara ))EMt Mulgine Murrin ESunrise Dam OMines and deposits Chlor Alkali * Synthetic Yardarino .PMount Horner Blue Hills Granny Smith–Wallaby Rutile Hovea–Eremia)Koolanooka E Uranium Chemicals Neerabup Dongara /// Xyris )Koolanooka South Red October / HP E Mines and deposits  Desalination  Cliff Head / DongaraApium4 HM Tropicana Jingemia ./P Three Springs ) Mt Gibson Vanadium-Titanium Fertilizers Malaga Brick Mulga Rock Middle Swan Brick Beharra Springs/ E Davyhurst E ESand George 6Mines and deposits Midland Brick P H Eneabba Fused Alumina North Beharra Woodada Mt GibsonWindarling Range) I Goongarrie •PERTH Springs C E Carosue Dam NON-MINERAL PROJECTS Fused Zirconia Airport Brick Tarantula Central West Paddington E  Caversham Tile Mt Jackson) CawseI Lindsays Find Irrigation/water schemes 9 HIsmelt T IBlack Swan L L  EMD/HiTec Major port handling facilities Fremantle Emu Downs Wind Farm EE E Kanowna Belle – Red Hill  LPG Mt Pleasant E QIBulong Major power stations Armadale Brick Cooljarloo H Koolyanobbing ) KundanaE Avalon Plant  Q Nickel Refinery HCataby ESuper Pit Downstream timber processsing plant  Cardup Brick QKalgoorlie Ni Smelter Gas pipeline Proposed gas pipeline Power Station Coolgardie-Redemption E IBlair-Area57 Sodium Cyanide SEE INSET A Westonia Mt MarionE CarnilyaIEAldiss–Randalls OPERATING PROJECTS ARE SHOWN IN BLUE E Long–Victor IIKambalda Concentrator * Titanium Pigment HKeysbrook Marvel LochE Nepean I I I Beta-Hunt POTENTIAL PROJECTS ARE SHOWN IN RED E Spargoville ESt Ives PROJECTS ON CARE AND MAINTENANCE ARE Zirconia Yilgarn Star I O Pinjarra Armstrong I I Bald Hill SHOWN IN PURPLE < Miitel–Redross E Lanfranchi PERTH• Trident <=Huntly Pinjarra Gallium E Boddington Au Cu Emily Ann – Maggie Hays I E Central Norseman WaroonaH < I Forrestania Wagerup = Kemerton H Saddleback O'Sullivans Chlor Alkali Kemerton 8 R Silicon Smelter  Scaddan