Print post approved PP 665002/00062 June –August 2011$3 WESTERN AUSTRALIA’S INTERNATIONAL RESOURCESDEVELOPMENT MAGAZINE Galaxy Resources’ Mt Cattlin mineshines Shining star (inc GST) DEPARTMENT OF STATE DEVELOPMENT International Trade and Investment 1 Adelaide Terrace East Perth, Western Australia 6004 Tel: +61 8 9222 0566 • Fax: +61 8 9222 6151 Email: [email protected] www.dsd.wa.gov.au

INTERNATIONAL OFFICES Europe European Offi ce • 5th fl oor, 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]

Western Australia continues to cement its reputation as a global player India — Mumbai in the minerals and energy sectors. Western Australian Trade Offi ce 93 Jolly Maker Chambers No 2 9th fl oor, Nariman Point • Mumbai 400 021 • INDIA Growing numbers of energy, mining and related service companies Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 are locating in Perth, with two more global giants landing in Western Email: [email protected] Australia recently. Indonesia — Jakarta Western Australia Trade Offi ce The world’s second largest company, General Electric has announced Wisma Budi Building • fl oor 5 Suite 504 plans for an A$80 million technology and education centre based in JI HR Rasuna Said Kav C-6 Perth to help deliver the next generation of skilled workers in the oil, Kuningan, Jakarta 12940 • INDONESIA Tel: +62 21 5290 2860 • Fax: +62 21 5296 2722 gas, energy, mining, transportation and water industries. Email: [email protected]

GL Noble Denton has also arrived in Western Australia, opening an Japan — Tokyo offi ce in Perth to service the multi-billion dollar oil and gas projects Government of Western Australia, Tokyo Offi ce scheduled for Australia. 13th fl oor, Fukoku Seimei Building 2-2-2 Uchisaiwai-cho Chiyoda-ku • TOKYO 100-0011 • JAPAN Currently, the value of major resources and industrial projects, Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 committed or under active consideration in Western Australia, is more Email: [email protected] than A$170billion. Japan — Kobe Western Australian Government Offi ce In April, Civmec Construction & Engineering Pty Ltd opened a massive, 6th fl oor, Golden Sun Building • new heavy engineering and fabrication workshop in Henderson, south 4-3-6 Nakayamate-dori of Perth. Chuo-Ku • Kobe 650-0004 • JAPAN Tel: +81 78 242 7705 • Fax: +81 78 242 7707 The A$30 million facility, located on the waterfront at the Australian Email: [email protected] Marine Complex, will help boost Western Australian industry’s capacity Malaysia — Kuala Lumpur to compete for resources sector projects. Western Australian Trade Offi ce 4th fl oor, UBN Tower • 10 Jalan P Ramlee The Civmec facility will ensure that the state is positioned to win KUALA LUMPUR 50250 • MALAYSIA Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 signifi cant work generated by unprecedented levels of resources Email: [email protected] investment in Western Australia. Middle East — Dubai Western Australia can, and will, see enormous benefi ts from Western Australian Trade Offi ce • Emarat Atrium PO Box 58007 • Dubai • UNITED ARAB EMIRATES resources development and the growth of new industries in this state. Tel: +971 4 343 3226 • Fax: +971 4 343 3238 Email: [email protected] Colin Barnett PREMIER OF WESTERN AUSTRALIA & MINISTER FOR STATE DEVELOPMENT People’s Republic of China — Shanghai Western Australian Trade and Investment Promotion Norman Moore Room 2208 • CITIC Square MINISTER FOR MINES AND PETROLEUM 1168 Nanjing Road West SHANGHAI 20004 • PEOPLE’S REPUBLIC OF CHINA Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 Email: [email protected]

People’s Republic of China — Hangzhou Prospect Western Australian Trade and Investment Promotion Western Australian Prospect magazine is published quarterly by the Hangzhou Representative Offi ce Western Australian Government’s Department of Mines and Petroleum (DMP) Room 1705 • World Trade Offi ce Plaza and Department of State Development (DSD). Zhejiang World Trade Centre Editorial management: Rebecca Atkinson, DSD Communications and Marketing Division. 122 Shuguang Road • Hangzhou 310007 Tel: (08) 9222 0417 • Fax: (08) 9222 0505 PEOPLE’S REPUBLIC OF CHINA Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 Disclaimer Email: [email protected] Prospect has been compiled in good faith by the Department of Mines and Petroleum (DMP) and Department of State Development (DSD). Opinions expressed in Prospect are those of the authors and do not necessarily represent the views, or have the endorsement of DMP and DSD. DMP and DSD has used all reasonable endeavours to ensure the material contained in this publication is correct, but it is intended to be general in nature. No South Korea — Seoul representation is made with regard to the completeness or accuracy of the information contained herein. DMP and DSD disclaims any or all liability for loss or damage whatsoever suffered or incurred resulting from the use of or reliance on information contained herein. Readers of this publication Western Australian Trade and Investment Offi ce should make and rely on their own enquiries, research and judgements in making decisions affecting their own or any other persons interest. Unit 702 • 7th Floor • Kwanghwamoon Building 211 Sejongno, Jongno-gu Seoul • South Korea 110-730 • KOREA Cover photo: Emerging lithium producer Galaxy Resources’ Mt Cattlin mine. Story page 2. Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Email: [email protected] In this issue

02 04 08

16 20 24

02 A shining star 16 CCS expertise Galaxy Resources’ Mt Cattlin mine experiences WA developing as key state in carbon capture and storage. a momentous month. 20 Golden Geckos milestone 04 Major player Celebrating 20 years of environmental management. Chevron’s Wheatstone LNG project to emerge as WA’s fourth major gas export facility. 24 Managing risk 08 Global giants BHP Billiton leads the way in catastrophic risk management. WA continues to cement its reputation as a petroleum industry services hub.

Department of Mines and Petroleum Department of Mines and Petroleum Department of State Development Department of State Development www.dmp.wa.gov.au www.dsd.wa.gov.au GALAXY RESOURCES RACKS UP MILESTONES AT MT CATTLIN

2 March was a momentous month Galaxy has committed to a residential for emerging lithium producer workforce in the towns of Ravensthorpe Galaxy Resources and its Mt and Hopetoun, which were impacted Cattlin mine, which shipped its fi rst by the closure of BHP Billiton’s spodumene to China and sold its fi rst Ravensthorpe Nickel project in 2008. tantalum concentrate. The company is also in negotiations The 6500 tonne spodumene shipment with Esperance Port to export from the left from Bunbury Port on 28 March port in the longer term. bound for Zhangjiagang Port in China. Mr Tan said Galaxy was bullish about The 28 tonnes of tantalum concentrate the global outlook for lithium. was sold to Western Australian “The long-term prospect for the mine company Global Advanced Metals under looks good, with the demand for lithium a fi ve-year sales agreement. primarily coming from the lithium ion The company also announced it had battery industry—this industry is about lifted the total contained lithium oxide to signifi cantly grow due to the electric resource at Mt Cattlin by 14 per cent to vehicle revolution,” he said. 197,000 tonnes in March. “The project ramp up is still proceeding Galaxy Resources Managing Director with recent campaigns achieving 80 per Iggy Tan said these were important cent of design output.” milestones for the company. The second shipment from Mt Cattlin is “The Mt Cattlin project was expected to occur in June this year. constructed, commissioned and started Galaxy is also looking at building a up in less than 11 months,” he said. downstream project involving lithium “The project was on schedule and ion battery production in China in line on budget. with its plans to become a vertically integrated lithium company. “The fi rst shipment of spodumene was slightly delayed but still in line with guidance, due to slower than expected ramp up.”

Galaxy Resources made its fi rst shipments of spodumene and tantalum concentrate during March this year. 3 An artist’s impression of the Wheatstone LNG project. Image courtesy of Chevron. New gas giant looms

With a Final Investment Decision “The Wheatstone project will be Chevron estimates that over its life, imminent for the massive Chevron Australia’s fi rst-ever LNG hub to accept the Wheatstone project could generate Corporation led Wheatstone LNG project, gas from third party suppliers. This services and supply contracts worth more Western Australia could soon benefi t from concept takes a long-term approach than A$15billion for Australian business. a fourth major gas export facility on its to keeping the country’s LNG sector The company is currently working with Pilbara coast. producing for generations to come, while a State Government led Local Content Drawing on resources in the energy rich minimising the environmental footprint Steering Committee and industry Carnarvon Basin, Wheatstone is planned that would be needed for new projects,” organisations to identify opportunities for initially to produce about 9 million tonnes Mr Krzywosinski said. Australian participation in the project. of liquefi ed natural gas per annum (Mtpa) This will represent a signifi cant expansion Market analysts say the value of for export and associated natural gas for of Western Australia’s LNG export Wheatstone’s production over 20 years domestic use. capacity, which is currently 16.3Mtpa, but is estimated at more than A$100billion Liquefi ed natural gas (LNG) production construction of an additional 19.3Mtpa is and the project has a potential life of from its initial two processing units is underway and expected to be in operation 40-50 years. by 2016. expected to commence in 2016, and the The impact will be especially dramatic project has the potential to expand to up The project will have a sustained for the small coastal hamlet of Onslow, to 25Mtpa of LNG. positive impact on Western Australia’s 1400 kilometres north of Perth and Chevron Australia Mananging Director, economy, through direct employment 300 kilometres south of Karratha, which Roy Krzywosinski, said the Wheatstone and substantial Australian industry is likely to see its resident population Project would boost Australia’s position as participation. It will also contribute billions treble from 700 to 2,200 as a result a major LNG player on the world stage. of dollars to Australia’s national revenue. of the project.

4 “Front end engineering and design work Port construction will include is complete and we expect to reach a fi nal approximately 12 kilometres of shipping investment in the second half of 2011 channel and a turning basin, a product once environmental approvals and other loading facility and a materials associated agreements are fi nalised offl oading facility. with government.” The Wheatstone facility will join The three joint venture participants are BHP Billiton’s Macedon natural gas Apache Corp, Kufpec (Kuwait Foreign Petroleum Exploration Co) and Shell processing plant, which is under Development, with the former two construction, on the State Government’s also providing additional gas from planned 8,000 hectare Ashburton North offshore fi elds. Strategic Industrial Area, which is being developed specifi cally to accommodate Heads of Agreements that could hydrocarbon-based industry. account for sales of 80 per cent of initial production and further spread equity in Chevron is negotiating an agreement the project, have been negotiated with with the Western Australian Tokyo Electric Power Company (TEPCO), Government that will cover the rights Kyushu Electric Power Company, and and obligations of both parties, and the Korea Gas Corporation (KOGAS). terms and conditions for development The Wheatstone project team has made of the project. Issues covered by such signifi cant progress through agreements include, security of land and the statutory approvals requirements water access, for the life of the project, of the Australian and Western provision for multi-user access to Australian Governments. appropriate port infrastructure and In July 2010, a Native Title Heads of land corridors. Agreement was signed with the local Chevron is also working with the traditional land owners, the Thalanyji people, that will provide signifi cant Western Australian Government and benefi ts in terms of education, training, the Shire of Ashburton to ensure that employment, business development and Onslow is prepared for the project. fi nancial support. Residential commercial and industrial Chevron has also completed a review land will be developed, and energy of potential environmental and social and water supplies expanded, to risks and impacts and developed a accommodate rapid population However, before the project ships its management plan. These are being growth and increased business activity. fi rst LNG to customers in Japan, jointly assessed by the State and Education, health and recreation Federal Governments. Korea and China, Chevron will services and facilities will be undertake an enormous construction task In June 2011, the State’s Environmental similarly upgraded. to complement the design, engineering, Protection Authority recommended approval and marketing efforts that will conditional environmental approval of With up to 300 truck movements a day underpin the Wheatstone project. Chevron’s proposal for an LNG plant and at peak expected along the 80 kilometre road linking Onslow with the North The project includes developing gas fi elds associated facilities. West Coastal highway, signifi cant road 225 kilometres offshore and in water up Onshore, the site will need to be raised improvements will also be required. to 260 metres deep, building a subsea by eight metres to build a raised pad pipeline and construction of a port and for LNG, condensate and natural gas “We have been working closely with LNG production facilities at the Western processing and storage facilities, power the Onslow community to learn about Australian Government’s Ashburton North generation, and a water supply and waste their aspirations and expectations Strategic Industrial Area, 12 kilometres water disposal system. surrounding the Wheatstone Project,” from Onslow. The project includes constructing a Mr Smith said. Since Chevron announced its intention to 12 kilometre road to provide access from “This ongoing consultation has develop the onshore facility in March 2008, the Onslow road and an approximate allowed us to develop some valuable based on its Wheatstone gas fi elds, 70 kilometre pipeline connecting the the project team’s achievements have domestic gas facility to the Dampier to partnerships and programs that will been considerable. Bunbury Natural Gas Pipeline. have a direct impact on the community, including education, training and Wheatstone Project General Manager, During peak construction, Wheatstone health initiatives.” Brian Smith, said the project had been will generate about 6,500 direct and moving at a very fast pace. indirect jobs in Australia—the majority in The Department of State Development, Western Australia. “We have conducted the largest as the Western Australian Government’s geotechnical site investigation in Australia, Once operational, Wheatstone will lead agency for the Wheatstone project, welcomed new joint venture participants, employ hundreds of on-site workers who is responsible for co-ordinating and signed agreements with premier LNG are expected to be accommodated in managing Government interactions buyers and made signifi cant progress on Onslow, either as residents or on a fl y in and statutory approvals processes and environmental approvals,” Mr Smith said. fl y out basis. leading negotiations with Chevron.

5 Ranked second and third for Western Australian exports, Japan and South Korea are two of Western Australia’s most important economic partners with WA exports to the two countries totalling almost A$30billion in the past year. In March, Western Australian Premier and Minister for State Development, Colin Barnett travelled to Japan and STRONG South Korea for an offi cial eight- day visit, meeting with industry and government decision makers. PARTNERSHIPS Announcing his visit, Mr Barnett said that as well as reinforcing existing trade and investment relationships, he would encourage even greater involvement in the development of Western Australian resources and infrastructure. “Japan is the second largest market for WA working with Western Australia’s exports and Korea the third, so industry in both countries has a lot to gain from the continued expansion of our minerals and energy sectors and development of new export Japan & Korea infrastructure,” he said. “Last year, the combined value of the State’s exports to these markets was almost A$30billion and companies from both countries are involved in new resources and industrial projects in Western Australia. “Japanese and Korean investment is welcome in Western Australia and I’ll be encouraging companies to take a broad view of the opportunities to secure resources for the future. “These opportunities could also include developing more advanced processing and materials manufacture in Western Australia.” While in Japan, Mr Barnett discussed future investment plans and opportunities with senior executives of companies with interests in Western Australia, including: Mitsubishi Corporation – a diverse industrial company and a partner in the Oakajee project Japan Steel Mills – representing Japan’s fi ve largest steel producers; all important buyers of WA iron ore Mitsui & Co. – an investor in, and customer for, Australian minerals, energy, forestry, agriculture, food and infrastructure sectors Inpex – a global petroleum explorer and producer Premier Colin Barnett met with the Governor of Hyogo Prefecture, Toshizo Ido, in Japan.

6 Nisshin Flour Milling Association – Japan is undergoing a recovery process GS Construction – a global a customer for WA grains. and, although Western Australian engineering and construction exports to the country slowed following company, and the prime contractor The Premier met with senior Japanese the natural disasters, our iron ore and for building the Perdaman Collie coal Government offi cials including Mr LNG exports to the country will help to urea project. Banno, Japanese State Secretary Japan to rebuild, providing critical The Premier was invited to meet for Foreign Affairs and addressed an infrastructure and energy supplies. with the Korean Prime Minister Kim investment luncheon organised by the Following his visit to Japan, the Premier Hwang-sik where they discussed Australian Ambassador to Japan. travelled to Korea for his fi rst offi cial Korea’s heightened interest in Western Mr Barnett also attended a function visit to the country. His Korea visit also Australia both in buying iron ore and as a hosted by the Governor of Hyogo had a strong trade and investment focus. signifi cant investor and buyer in liquefi ed natural gas. Prefecture, Mr Toshizo Ido, to mark As well as meeting with Korean the 30th Anniversary of the Government offi cials and the Australian In recent years, major Korean Prefecture’s Sister State relationship Ambassador to Korea, Mr Barnett engineering companies have located with Western Australia. met with senior executives of major offi ces in Western Australia to participate in major projects, including Tragically, later in March, Japan resources, engineering and trading companies including: GS Construction. experienced the tsunami and earthquake disasters in coastal areas of Sendai, the KOGAS – the world’s biggest Korea is ranked as Western Australia’s largest market for crude oil exports and capital city of Miyagi Prefecture. LNG importer our third-largest market for iron ore, The magnitude 9 offshore earthquake POSCO – the world’s third largest beef and wheat exports. triggered the destructive tsunami, steel producer This year marks the 50th anniversary causing catastrophic damage. Hyundai and KIA Motor Group – of diplomatic relations between Australia Along with others around the world, a large conglomerate that includes and the Republic of Korea, with 2011 Western Australia reached out to Japan Hyundai Steel designated as the Australia-Korea Year of Friendship. to offer our condolences and assistance STX – a global shipping operator and to the people of Sendai. resources trader

Premier Colin Barnett with South Korean Prime Minister Kim Hwang-sik.

7 Global giants land in WA

Global companies seek out Perth to service petroleum industry

Western Australia is continuing to GE is collaborating with Western “Working with the Australian cement its reputation as a petroleum Australian tertiary and training Government to invest in a highly industry services hub, with two big institutions to establish an Australasian skilled labour force is going to create name companies recently establishing hub for regional training, including tremendous value for both the themselves in Perth. leadership expertise currently run out industries that are thriving here, of New York. and the local economy. In March, General Electric (GE) chairman, and world-renowned business A new A$80 million technology and “It’s about business leader, Jeffrey Immelt was in Perth for education centre will be located at aligning with government the offi cial launch of the company’s new Perth’s Jandakot airport and will help Jandakot facility. deliver the next generation of skilled plans to invest in the workers in the oil, gas, energy, mining, Mr Immelt has chaired GE since 2001. critical skills needed to transportation and water industries. In 2009, he was appointed to the United support growth.” States President’s Economic Recovery Steve Sargent, President and CEO, GE The Department of State Development, Advisory Board and, earlier this year, Australia and New Zealand said the through its Industry and Investment was appointed as President Obama’s company had a tradition of investing branch, has been working with GE chair of his outside panel of in people and top quality training and over 18 months on the proposed economic advisers. would work with government to help Jandakot facility. create a highly skilled labour force. With Forbes rating GE the world’s Initially planned to consolidate several second largest company in 2010, “Developing the right skills is essential GE groups in Western Australia, the Mr Immelt’s visit to Perth marked to fuelling Australia’s economic growth fast-tracked A$80 million investment the growing importance of Western and ensuring that the maximum value is will create an oil and gas training, Australia’s status in the global created from projects like Gorgon both technology and repair centre that will petroleum industry. locally and nationally,” he said. employ about 400 people.

8 An artist’s impression of the new A$80m centre General Electric will build at Jandakot.

The centre will also service and maintain “With a signifi cant number of large Providing technical services to the oil a range of sophisticated equipment, projects in the Australian North-West and gas industry, GL Nobel Denton including sub surface equipment Shelf region and Queensland, amounting was founded in 2010, formed through a that is currently sent as far away as to more than US$170billion of capital British-German company merger. expenditure for projects that are at front- Norway and Houston, as well as It currently has 10 Perth based end engineering stages and all aiming develop in-house research and employees, with plans to triple to start production in the next four or development capabilities. staff numbers. fi ve years, GL Noble Denton are opening GE’s Australian profi le has been the Perth offi ce to be best placed to add Globally, the company employs more than 3,000 engineers in 80 countries, constantly expanding and has value to these projects,” he said. offering marine assurance; warranty reached 200 people—a large step up “A number of the and casualty investigation; rig from 75 employees in 2009. moving; naval architectural services; development concepts GE Oil and Gas has been awarded over design verifi cation; risk and safety, A$1billion in contracts from the Gorgon are new to the operators transportation and installation consulting; due diligence; and project, including the supply of three and they are looking dynamic positioning. refrigerant compression trains, six compression trains and fi ve turbines of for the complete range The Department of State Development’s 130 megawatts each. of GL Noble Denton’s Industry and Investment branch worked closely with Austrade in Singapore and Another industry giant to land in Perth independent offerings the Agent General’s Offi ce in London recently was GL Nobel Denton, which from assurance, to to provide investor presentations and a customised itinerary for Mr Palmer. opened an offi ce to service the local oil advanced engineering and gas industry. Richard Palmer will The Industry and Investment branch head the Perth Offi ce. and consulting, to marine is available to assist companies interested in better understanding Mr Palmer said GL Nobel Denton saw operations and execution to the diverse opportunities available the opening of the Perth offi ce as the help make these projects in Western Australia. Contact David best way for the company to service the a reality both on – and McCulloch, General Manager, Industry multi-billion dollar oil and gas projects and Investment, Department of State scheduled for Australia. offshore.” Development +61 8 9222 0496.

9 State of opportunity Local participaton in resources sector

Their skills and expertise have been Western Australia’s relative isolation Opportunities on the scale of those forged in building a world class mining gave local businesses competitive available in Western Australia are and petroleum economy, but Western advantages in competing for contracts attracting growing interest from Australian businesses are now facing from design and engineering, to overseas providers and manufacturers, new challenges to their dominant role construction, fabrication of major especially when economic growth in servicing and supplying the State’s components and ongoing supply remains subdued in many of their resources projects. and maintenance. usual markets. A Local Content Report prepared by At the same time, advances in transport, These advantages also attracted the Western Australian Departments communications and construction leading global companies to locate of State Development and Commerce technologies, have eroded some of the operations, or establish partnerships and adopted by the State Government, “natural” advantages of locally documents signifi cant changes in Western Australia. based companies. underway in the resource project At the same time, the rigorous Additionally, the size of individual development market. requirements of global mining contracts issued for major new It also looks at responses by industry companies have ensured that projects may exceed the capacity and the Western Australian Government contractors providing locally of local suppliers. to maintain high levels of local sourced services and products met Also, the emergence of China as a major participation in the State’s major high standards of quality exporter of relatively low cost steel and economic sector. and competitiveness. steel products has dramatically changed The report shows that annual business As a result, a dynamic and diverse a market in which the volume of steel investment in Western Australia more Western Australian mining technology used is rising rapidly. than doubled (122%) to A$45billion in real and services sector has developed. This is especially so for gas processing terms between 2004-05 and 2009-10. A study by the Australian Bureau of projects either located offshore, or on The State’s resources sector, which Agricultural and Resources Economics the coastline, with massive specialist grew its output from A$33b to A$71b in and Science identifi ed 320 such yards in Asia able to offer signifi cant the same fi ve-year period, and in 2010 companies in Western Australia, almost economies of scale in constructing earned A$91b, is the undisputed driver a third of the national total. modular components. of investment growth. These include companies providing Local industry participation fell from Annual investment is forecast to rise a vast range of project management, a peak of 72 per cent for train 4 of to A$62b in 2013-14, with mineral and engineering scientifi c and IT services, Woodside’s North West Shelf project, petroleum projects worth more than subsea technologies, specialist commissioned in 2004, to an estimated A$170b currently committed, or manufacturing, fabrication, construction 45-55 per cent for the Pluto and under consideration. and operational services, logistics and Gorgon projects. While Western Australia doesn’t equipment suppliers. The report also identifi es the mandate local content in major procurement practices of major project However, while investment in the State’s resources projects, the Western proponents as another signifi cant mineral and petroleum resources Australian Government does require change for Western Australian that local industry has a full, fair and industries is ensuring a buoyant Western companies accustomed to competing reasonable opportunity to compete Australian economy, some sectors, for contracts through locally managed for contracts. particularly steel fabrication and tendering processes. engineering and design, are fi nding that Companies developing and operating their share of resources based contracts Current procurement practises include major projects under formal State the use of engineering, procurement is declining. Agreements with the Western Australian and construction management (EPCM) Government are required to report on The Local Content Report documents contractors based offshore, a variety of their contract expenditure identifying reasons for this, many of which relate supplier selection arrangements, their value, nature and percentage of to the massive scale of current projects, and reliance on established global State, Australian and overseas content. including the A$43b dollar Gorgon LNG supply chains. A wide range of Western Australian and gas project, the A$14b Pluto LNG Smaller and medium local fi rms may not businesses have developed in response project, the A$5b Sino Iron project, and have the profi le with EPCM contractors, to opportunities created by the multibillion dollar expenditure by major links to supply chains, or familiarity State’s diverse, export focussed iron ore producers on expanding their with procurement processes that would resources industries. production and export capacities. enable their participation.

10 Current factors such as the historically proximity offers in being able to This principle is supported by both the high value of the $A, and high provide highly responsive Western Australian and the Australian employment levels affecting life-of-project services. Government through policies that relative labour costs add to these are consistent with national and competitive challenges. Some have shifted their focus international obligations to ensure that to establishing a niche in global The increasing involvement of local, or national and international goods supply chains. Matrix Composites & and services are treated equally. international companies linked to Engineering Limited (Prospect suppliers of construction materials and Dec 2010) has transformed from a heavy Policy instruments currently used services, as equity partners in major engineering company, to a successful include commitments incorporated resources projects will present new exporter of advanced material in State Agreements and Industry challenges in the future. components to major suppliers to the Participation Plans negotiated with major project proponents. Despite this, the report documents global oil and gas industry. the continuing success of Western Industry Participation Plans document Others have built on their success in Australian industry. the actions and activities that will give the local resources sector to expand capable and competitive local suppliers Based on reports from 21 projects their operations into national and full, fair and reasonable opportunities to operating under State Agreements in international markets, supplying 2010, 86 per cent of total operational participate in their projects. specialised services and equipment to expenditure of A$4.6b, and 53 per cent projects across the globe. The Western Australian Government’s (A$6.8b) of total new construction Local Content Unit in the Department of spending of A$12.8b was awarded Lycopodium Limited (story p12), a Commerce manages the local content locally. Similar fi gures were achieved Perth based, globally successful EPCM provisions of Agreement Acts, over 35 projects in 2009. provider for the mining sector, aims develops Industry Participation Plans Local industry retains signifi cant to maintain a portfolio of projects and works with local suppliers to competitiveness in supporting mining roughly 50 per cent of which are identify opportunities and resolve projects including iron ore, gold and located overseas. contentious issues. other metals, where it can offer well- Inevitably too, the sheer magnitude Also, through the State’s peak business established track records in providing of projects underway and planned is body, the Chamber of Commerce and a diverse range of services, for every attracting international companies to Industry (WA) Inc, the Government phase of development. locate operations in Western Australia, funds an Industry Capability Network The report also shows that a large and creating signifi cant new opportunities (ICNWA) referral and advisory service diverse range of Western Australian for linkages. for proponents and suppliers, and a companies is successfully competing for Project Connect Web service, which contracts in the offshore petroleum and Global giant General Electric provide advance market intelligence for gas processing sectors. Corporation (story p8) is currently local industry, details of local supplier establishing a A$80 million technology Western Australian companies are capacity and capabilities, and contract and training centre in the metropolitan employing strategies including opportunities on current projects. area that includes a regional skills and investing in expanded capacity, development centre, and a workshop The Western Australian Government is new equipment and technology to increasingly taking a more direct role in to service and commission its products increase their competitiveness. engaging major resource proponents in and technology that will support its dialogue about procurement practices Established local engineering company operations in Western Australia’s and trends and and opportunities for Civmec (see story p12) has built LNG sector. Australia’s largest, most advanced local suppliers. fabrication workshop to enable it to Government response Other initiatives underway include compete for larger scale contracts. The Local Content Report also outlines a wider use of more detailed Civmec and many other companies government policy options to support Industry Participation Plans, better are actively building stronger links the objective of full, fair and information sharing between State and with project proponents and EPCM reasonable opportunities for local Commonwealth agencies, and a review providers to increase their opportunities participation in major resources and and revamping of ICNWA and Project and emphasise the advantages their infrastructure projects. connect services.

Mining Employee Count Criticaltical to 2011 Census

The 2011 Census will be held on Tuesday, 9 August and one off WWorkersorkers off shift at home on Census nightnight also need to record the biggest challenges will be to achieve an accurate count of ttheirheir camp as their usual place of residenceresidence.. mining and resource employees – especially FIFO. CContactontact [email protected] for brochuresbrochures/posters/posters WA’s mining regions and the State need everyone in the regionsns fforor youryour camcampsps or for more information. on Census night to complete a Census form AND workers need to record their usual place of residence as their mining camp - if they spend at least half their time there (six months or more of the year).

11 Tale of two local companies

The processing plant at Barrick Gold’s Buzwagi project in Tanzania is one of Lycopodium’s international projects. Image courtesy of Lycopodium.

Two successful, but very different, Since then we have worked on studies “Western Australia is one of a very few Western Australian businesses illustrate and projects in more than 50 countries minerals engineering hubs in the world,” the diversity of opportunities that and currently have projects in about a he said. Western Australia’s powerful resources dozen African countries, in South East sector generates for local industry. Asia and in North America. “Perth is a one stop centre Both Lycopodium Limited and Civmec “We have offi ces in four Australian for evaluating, design and Construction & Engineering Pty states and in Canada, Ghana and managing the development Ltd (Civmec) have developed their the Phillipines.” of mining projects. businesses through 20 years of changing economic conditions and both are “Now gold projects account for about “Clients come to Western Australia from looking forward with optimism. 35 per cent of our work, and we also as far away as North America and Africa have experience with iron ore, nickel, because they know they can get the full Lycopodium is an engineering and copper manganese and other minerals. range of high quality expertise from project management company that Australian engineers.” through fi ve subsidiaries provides a wide “Our real forte is the delivery of the range of services for mining and mineral process plant, but we provide a full He said the company’s target now is to have about 50 per cent of its work in processing projects, and for process range of process, engineering project Western Australian projects and 50 per industries, infrastructure, renewable and construction management cent in projects interstate or overseas. energy and asset management. services (EPCM) and subsequent asset management for the above ground “We are internationally recognised for Managing Director Rod Leonard said the operations of a mining project. our ability to deliver and our strong focus company was founded in 1992 by fi ve remains the quality of the service we “Increasingly also, establishing a mining partners and with a total staff of twelve. provide,” he said. operation is an infrastructure project, “Initially we worked in the gold so we have to have expertise in building “Lycopodium’s growth is the product of processing sector, predominantly on roads, power and water supplies, setting this approach, rather than the driver.” brownfi eld projects in Western Australia up workforce accommodation.” and then the Northern Territory,” Civmec Mr Leonard said. Mr Leonard said Lycopodium currently Civmec provides civil construction and employs about 750 staff, the majority structural/mechanical and process “Then in the mid 1990s, one of our located in Western Australia. piping (SMP) services to the mining, Australian clients took us with them oil & gas, infrastructure and utilities to manage the development of a gold He said Western Australia offered real sectors and for EPCM contractors project in Africa. advantages as the company’s base. across Australia.

12 The new Civmec workshop facility offi cially opened in April at the Australian Marine Complex, located south of Perth.

Recent work has included building steel “Not only can we fabricate Mr Macri said Civmec’s new and concrete structures for gold and iron workshop had attracted interest from ore projects, two 420 tonne seawater general steel work and representatives of major resources intake structures for a desalination companies, and their EPCM contractors, plant and 11 precast 450 tonne concrete piping, we can also who recently visited the facility. caissons for a wharf on Barrow Island fabricate and assemble and “Our facilities are also attracting for the Gorgon Project. commission large offshore interest from overseas supplier The company has set its sights on companies, which we hope will winning contracts in major Western or onshore structures and encourage them to look to Civmec for Australian mining and petroleum large reinforced precast assistance with offshore opportunities, projects, and in 2009 commenced especially in specialist markets such construction of Australia’s largest, concrete structures. as subsea fabrication.” most advanced fabrication hall. “Currently, we are constructing large Mr Macri said Civmec’s investment Civmec Business Development Manager precast concrete foundations for represented a signifi cant step towards Joe Macri said the A$30 million Gorgon’s major onshore civil works enhancing Western Australian capability 29,200 square metre facility is contractor, all inside our workshop. In in general and increasing Australian and specifi cally designed to handle very local participation in resources projects. large modular assembly projects. the past, these jobs were generally done outside and exposed to extreme weather He said the state of the art facilities and “Our facilities have been designed conditions, making them very costly. the working environment they offered to accommodate a whole range of would help attract the best trades modern specialist, technically advanced “The workshop is strategically located and supervisory personnel to work on fabrication equipment and will enable us on 70,000 square metres of land at the Civmec’s projects. to employ our own diverse capabilities, Australian Marine Complex, just The facility has the capacity to employ technology and resources, with minimal 500 metres from the common user heavy external interfaces. up to 600 trades employees and 15,000 tonne load out wharf and fl oating 100 management and administrative “The workshop’s large undercover bays dock, making waterfront access an staff in a single shift. range in size from 25 to 30 metres in additional advantage. width, it has 22 overhead cranes with 12 to 20 metres of clearance underneath “We can use the complex’s self propelled the hooks, and lifting capacities ranging modular transporters to carry loads of from 20 to 50 tonnes,” Mr Macri said. up to 4,600 tonnes.”

13 SHARED RAIL SEES NULLAGINE RAPID DEVELOPMENT

Western Australia’s latest iron ore mine “This preparedness to share The fi rst drill-hole into the deposit was offi cially opened on April 18, only four infrastructure has allowed this mine on 10 April, 2007. years after the fi rst holes were drilled to be brought into production quickly The maiden resource estimate for the into the deposit. and at a time of historically high iron Nullagine mineralisation was released ore prices.” The Nullagine iron ore mine, located in March 2008. By January 2009 the 140 kilometres north of Newman, is The Nullagine project is being operated resource estimate had nearly doubled. a joint venture between BC Iron and as a 50/50 joint venture between BC Iron The Board of BC Iron approved Fortescue Metals Group (FMG). and FMG. commencement of the feasibility study The opening of the mine was a Mr Baston said the mine had been of the project in July 2009 and trial signifi cant milestone. It was the fi rst developed at a rapid pace. mining commenced a few months later time a junior iron ore miner had been in September. able to use third party rail infrastructure “It has only been four years since the By December that year, the board had to transport iron ore in the Pilbara. fi rst drill hole into the deposit, three years since the maiden resource approved development of the project and Member of the Legislative Council, estimate and a little over one year by mid-2010, mining approvals had been the Honourable Ken Baston, offi cially since the board of BC Iron approved received and construction of mining opened the mine on behalf of the development of the project,” he said. infrastructure started. Western Australian Government. “This is an amazing achievement and The fi rst ore from the Nullagine project “Access to rail and port can be one in which BC Iron and FMG should was railed from FMG’s new Christmas signifi cant barriers for new producers,” feel extremely proud.” Creek facility on 31 January, 2011 and Mr Baston said. loaded onto a ship at Port Hedland on BC Iron saw the joint venture as a way of 24 February. unlocking the value of the Nullagine iron “Fortunately, FMG About 20,000 tonnes of Nullagine joint ore asset, which would have otherwise venture ore was loaded and exported to have also long believed been stranded. inaugural customer the Henghou Group, in the principle of The non-binding Memorandum of a major Chinese trading company. shared infrastructure Understanding between FMG and BC Iron was announced on 5 July, 2007 and in the Pilbara. the deal was fi nalised in June–July 2009.

14 BC Iron chairman Tony Kiernan and BC Iron Managing Director Mike Young at the Nullagine iron ore mine opening.

Western Australia’s latest iron ore mine, BC Iron and FMG’s Nullagine mine, was offi cially opened on April 18, only four years after the fi rst holes were drilled into the deposit.

15 WA EXPERTS IN CARBON CAPTURE

Western Australian expertise in carbon The council will bring together key capture and storage was offi cially stakeholders to advise the Federal recognised with the recent appointment Government on the accelerated of the Department of Mines and development and deployment of Petroleum’s Coordinator, Carbon CCS in Australia, including a portfolio Strategy, Dominique Van Gent to the of industrial-scale demonstration Australian Government’s projects in 2012-2020 and commercial National Carbon Capture and Storage deployment from 2020. Council (NCCS). The council will also oversee the Mr Van Gent was nominated to the implementation of the National NCCS, which supersedes the National Low Emissions Coal Strategy and Low Emissions Coal (NLEC) Council, the National Carbon Mapping and by Minister for Mines Norman Moore. Infrastructure Plan. The NCCS was formed in recognition Mr Van Gent contributed to the of the need to broaden the focus of development of the National Low the NLEC Council beyond coal-fi red Emissions Coal Strategy launched power stations and assist the Federal in November last year, together with Government to chart Australia’s the National Carbon Mapping and Dominique Van Gent. development and uptake of carbon Infrastructure Plan prepared by the capture and storage (CCS). Carbon Storage Taskforce.

Collie Hub Carbon Capture and Storage project.

16 Geological Survey of Western Australia sub-surface expertise located within the of the world’s largest integrated CCS

(GSWA) Assistant Director Jeff Haworth University of Western Australia, Curtin proposals, taking CO2 from gas and was another DMP member who University and the CSIRO. coal fi red, utilising CO2 for industrial contributed signifi cantly as a member purposes and testing the viability of The Gorgon project, currently under of the Carbon Storage Taskforce. sequestration two to three kilometres construction, will sequester 3.4 million Mr Van Gent has also been busy underground in the Lesueur formation. tonnes of CO2 per annum two kilometres coordinating the Collie South West CO2 below the surface of Barrow Island, in Mr Van Gent said his appointment to Geosequestration Hub, which has been the state’s north west. the NCCS Council, and that of other WA nominated as one of four national CCS industry and research representatives, The project is one of the largest CCS fl agship projects. recognised the strengths and expertise projects in the execute stage in the that Western Australian can bring to the Western Australia is rapidly developing world and, in order to receive approvals, national table. as Australia’s key state in the it satisfi ed some of the world’s most sequestration fi eld of CCS with critically stringent environmental impact Federal Resources Minister Martin important oil and gas expertise located assessment conditions. Ferguson offi cially appointed Mr Van in this state. Gent to the council and thanked him The project also includes integrated The Australian Resources Research for his previous contribution as a monitoring, reservoir management Centre in Bentley is also emerging as member of the NLEC Council, which and risk minimisation strategies. a signifi cant research centre with the was instrumental in the creation of the Western Australian Energy Research The Collie Hub project, located onshore Australian National Low Emissions Coal Alliance being able to harness the in the south west of the state is one Research and Development Ltd.

Carbon dioxide trapping beneath the earth.

17 Spotlight on

Department of Mines and Petroleum Minister Norman Moore spoke of emerging investment opportunities at the Prospectors and Developers Association of Canada (PDAC) WA in Canada convention in Toronto.

Western Australian investment “There have of course been ongoing why you should be involved in your own opportunities were squarely in the discoveries of iron ore during the same right or by joint venture with companies spotlight when Mines and Petroleum time, and not only in the renowned already active in the State.” Minister Norman Moore visited Canada Hamersley Basin,” he said. Mr Moore said the trip had been on a speaking tour in March. “Western Australia’s mineral diversity very successful. Mr Moore spoke at the Prospectors was also on show with the recent and Developers Association of Canada discovery of a new supply of rare earths “I spoke to a large number (PDAC) convention in Toronto, as well as at Mount Weld, which is an uncommon of potential investors in event outside China.” lead-up events in Vancouver. the State and informed Mr Moore outlined the State PDAC is one of the largest mining trade them of the huge range of shows in the world and attracted close Government’s commitments to the to 28,000 participants this year, with resources industry including approvals opportunities that exist here Australia providing the third largest reform, the Exploration Incentive and the support that the number of delegates after Canada and Scheme, infrastructure developments the United States. and allowing the mining of uranium. Government is willing Mr Moore represented Western Australia He also distanced the State from to offer,” he said. the Federal Government’s proposed but also spoke on behalf of Australia as “The response was very positive and Resources Rent Tax. a whole at several events. I expect there will be some follow-up inquiries to the Department of Mines and Speaking at PDAC’s Growth “Australia has a wealth of investment Petroleum as a result of my visit.” Opportunities in Western Australia opportunities but there is perhaps no better place to be than Western seminar, Mr Moore outlined recent Mr Moore was accompanied by Rick Australia,” the Minister said. exploration successes in the State such Rogerson, Executive Director of the as the Tropicana gold deposit, Cyclone “The high level of exploration activity and Geological Survey of Western Australia, mineral sands deposit and Doolgunna success highlights the State’s immense and Gaomai Trench, Manager of copper-gold deposit. potential and is a very good reason Mineral Promotion.

18 CHANGE OF LEADER FOR STATE DEVELOPMENT

The Department of State Development has undergone a change at the top but with Western Australia’s resources sector powering forward, the focus for the department remains on leading responsible development of the state. In April, the department farewelled Director General Anne Nolan. Previous Director General Department of State Development Anne Nolan. Director General Steve Wood. Ms Nolan headed up the department since it was established in January 2009, following on from her initial appointment “These projects include those in the Steve Wood is the new Acting Director in July 2008 as Director General of the Kimberley, Pilbara and the Mid West, General for the Department of State then Department of Industry which will stimulate major growth Development, having taken over from and Resources. opportunities for those regions and for Ms Nolan in early May. the state. With extensive experience in leading and Mr Wood joins the department with developing public sector agencies, she “Responsible growth requires balancing extensive experience both in the Federal was instrumental in establishing the economic, social and environmental and State public sectors—primarily in interests, and addressing long-term as new Department of State Development workplace relations, but with substantial well as short-term considerations—this as a lead agency in the public sector policy roles in the Department of the has been my key focus during my time as and positioning the department as the Premier and Cabinet as Chief Executive Director General.” Western Australian Government’s lead of the Policy Offi ce (1995-6) and Deputy agency for the development of the state. Ms Nolan also steered the department’s Director General (1997-99 and from focus towards encouraging global trade During her tenure, she facilitated the late 2009 until present). He was a and investment in the state. state’s role in some of Australia’s biggest Commissioner in the Western Australian resource projects, including the Gorgon She played a key role in securing Perth Industrial Relations Commission from and Browse gas developments, the as the host for the 18th International 2000 to 2009. Conference and Exhibition on Liquefi ed opening up and expansion of capacity of In his most recent role at DPC, Mr Wood Natural Gas (LNG18), to be held in 2016. iron ore projects in Western Australia, worked closely with State Development and oversaw infrastructure development LNG18 is one of the most signifi cant staff on several of our biggest projects, for the resources sector throughout conferences for the energy sector including enabling better integration the state. and Perth hosting the event is a clear of BHP Billiton-Rio Tinto iron ore Ms Nolan’s direction of the Department indication of Western Australia’s growing infrastructure and operations. of State Development coincided with a status in the world LNG industry. Mr Wood said he will be working with period of signifi cant growth in Western “As a relatively new department, we’ve industry stakeholders and project Australia’s resources sector. already achieved a lot,” Ms Nolan said. proponents, and across government to “Western Australia is experiencing “I strongly believe the department is well achieve benefi cial outcomes on behalf of a period of substantial growth positioned to ensure the success the state. underpinned by several major projects of complex major projects and of unprecedented scale and complexity,” contribute to responsible development “Western Australia will experience she said. for the benefi t of the whole Western signifi cant growth in the resources Australian community.” sector for the foreseeable future, with “The focus for the department is on the big projects in the pipeline,” he said. successful delivery of key resources and Ms Nolan will head-up the Western industry infrastructure projects in which Australian Government’s newly Mr Wood said he looked forward to the the Western Australian Government is in established Department of Finance, challenges facing State Development partnership with the private sector. as Director General. and the state.

19 New guidelines governing mine closure and rehabilitation released by Minister

Following extensive public consultation “The objective of the Mine closure plans are an essential the Department of Mines and Petroleum management tool for industry to ensure has released new guidelines to ensure guidelines is to ensure all stakeholders have their interests mining companies have adequate considered during the mine closure plans to rehabilitate mines on closure effective planning process, and that early risks are identifi ed. or relinquishment. throughout the life of The release of the joint guidelines Mines and Petroleum Minister mines and to ensure will assist in further streamlining Norman Moore said the Guidelines mine closure requirements in for Preparing Mine Closure Plans they are closed in an Western Australia. were jointly developed by DMP and the environmentally sustainable DMP and the EPA, in consultation with Environmental Protection Authority industry and other stakeholders, are (EPA) to help mining companies prepare manner with minimum currently developing an accompanying mine closure plans. liability to the State.” Mine Closure Plan Administration “Starting in October last year, extensive Information Package. The guidelines were developed to public comment periods in developing Following its release on 1 July 2011, these guidelines gave DMP and the support amendments to the Mining Act the package will further streamline the EPA an insight into the expectations of 1978 following the assent of the Approval administration of mine closure plans industry and the community regarding and Related Reforms (Mining) (No. 2) including the processes for assessing mine site closure,” Mr Moore said. Bill 2009 on 3 June, 2010. the plans.

The guidelines can be downloaded from www.dmp.wa.gov.au/mineclosure

20 DMP Director General Richard Sellers (left) and Petroleum Director Bill Tinapple watch as CSIRO’s Bruce Maney showcases the features of the Rock Mechanics Laboratory. DMP builds on CSIRO links

A partnership between the Department CSIRO’s Hydrates Flow Loop, where fl ow “CSIRO has a proven track record in of Mines and Petroleum (DMP) and assurance was discussed. providing tools and technologies that CSIRO will help foster improved research deliver signifi cant impact,” he said. results for the resources industry. “A key area of discussion was the development of strategic means Mr Sellers said collaboration delivered The department’s Director General of communicating the outcomes important results. Richard Sellers and other staff recently of research with industry and the “The multipliers for the Western toured the Australian Resources community,” Mr Sellers said. Research Centre (ARRC) at the invitation Australian community in terms of economic growth and employment of CSIRO, which operates the centre with “A possible model put support from Curtin University and the opportunities are immense,” he said. Western Australian Government. forward was CSIRO’s “The WA:ERA concept has proven a very ARRC is home to a network of research Energymark program, successful one in the petroleum sector centres and alliances focused on and it is one that DMP and the Chamber the resources industry and houses which brings people of Minerals and Energy would like to organisations including the Western together in small groups see in the minerals sector if we can get Australian Energy Research Alliance industry members to come onboard.” (WA:ERA) and iVEC, which manages the to learn about energy and Several members of DMP’s A$80 million Pawsey Centre Project. climate change issues.” Petroleum Branch also visited ARRC with Mr Sellers. Topics discussed focused on the DMP, CSIRO and industry members petroleum sector and included ways already work together in a number CSIRO representatives present at of increasing onshore petroleum of fi elds, including tight gas and the meeting included Energy Group exploration and engaging industry in geosequestration research Executive Beverley Ronalds, WA:ERA innovative research; the importance of and development. Chief Executive Mark Stickells, gas-to-liquids technology; opportunities Petroleum and Geothermal Research for shale and tight gas developments; CSIRO’s Director for Petroleum and Director Edson Nakagawa, and updates on carbon dioxide storage Geothermal Research, Dr Edson Gas and Geothermal Research Team and geothermal energy research. Nakagawa said the organisation had Leader Jim Underschultz, and Mr Sellers was escorted on a tour of a proud record of partnerships with Business Development Manager ARRC’s state of the art facilities and industry and government, and looked Konrad Drogemuller. technologies including a demonstration forward to working with DMP to explore of rock fracturing in CSIRO’s Rock further means of providing benefi ts to Mechanics Laboratory and witnessing local industry and the wider community.

21 Golden Geckos reaches milestone year

The Department of Mines and contributions to environmental Petroleum’s Golden Gecko Awards protection and management and the celebrate their 20th anniversary this innovative solutions that are becoming year and have attracted a typically large available to enhance rehabilitation. fi eld, with 11 nominations. DMP instigated the awards in 1992 in “This year is a particularly the hopes of raising industry standards special year as we of sustainable development and instilling community confi dence in the celebrate two decades resources industry. of the advancement Entries for this year’s awards closed in of environmental April and their eligibility has been assessed. management in our An assessment panel, through an resources sector.” inspection of each operation, will review “In the past 19 years, we have seen the the submissions and prepare a report achievements of winning entries become for the selection committee, which will standard industry practice, raising the select the recipients. sector’s environmental performance The recipients will be announced at a across the board,” Mr Moore said. ceremony in early September at the Pan Last year, Golden Geckos were awarded Pacifi c Hotel in Perth. to Crosslands Resources and Pluton Mines and Petroleum Minister Norman Resources, while Certifi cates of Merit Moore said it was exciting to see the went to Cliffs Asia Pacifi c Iron Ore and State’s resources sector displaying Rio Tinto Iron Ore.

22 Th e 2011 Golden Gecko Awards nominations

Apache Pluton Resources staff members with their 2010 Golden Gecko Award. Use of horizontal direction drilling with delayed breakout for shoreline crossing of a new gas pipeline at Devil Creek Development Project.

Argyle Diamond Mine (Biodiversity) Development of Biodiversity Action Plan (BAP) in line with Rio Tinto’s requirement for BAPs on all operations ranked as high biodiversity value.

Argyle Diamond Mine (Water) Focus on improved water management as a key environmental focus, with the end goal of self-suffi ciency.

BHP Billiton Iron Ore Long-term study at Goldsworthy to increase understanding of Pilbara leaf-nosed bat activity, with implications for bat conservation globally.

Crosslands Resources staff members with their 2010 Golden Gecko Award. Cliffs Asia Pacifi c Iron Ore Improving knowledge base and on-ground capacity for environmental management around northern Yilgarn operations.

Compass Group Centralised bulk production in Origin Foods program reduces onsite peeling, trimming and Crosslands was recognised for its cutting in catering, cutting landfi ll and research and innovative sampling transport emissions. technique for the endangered Schedule 1 Shield-back Trapdoor spider. Golder Associates Results provided a new low impact Implementation of integrated approach to technique for fauna surveys and Wheatstone Phase Three Geotechnical Investigation reduced the buffer zone required to minimise environmental disturbance. around the spiders. Searcher Seismic Pluton Resources was recognised for Vampire Two Dimensional Non Exclusive Seismic its limited impact exploration project on Survey within Browse Basin off Kimberley coast. environmentally sensitive Irvine Island. Pluton reduced ground disturbance from WA Gas Networks 30 square metres to just fi ve square Mandurah Gas Lateral Project executed with high metres for its drilling platforms, which level of environmental management, including also contains mud and hydrocarbons in a 20 per cent less native vegetation clearing closed system. than approved.

Since the awards began, the department Western Areas NL and ATMOS has recognised 52 Award and Assisting Western Areas to avoid or minimise 42 Certifi cate of Merit recipients. adverse dust impacts at an environmentally Entries are judged against strict criteria sensitive receptor near Spotted Quoll Pit. and not against other applicants, making it possible for multiple Golden Gecko WorleyParsons and Port Hedland Port Authority Awards to be won each year. Environmental Impact Assessment and conformance monitoring of port infrastructure More information is available at www.dmp.wa.gov.au/goldengecko/ expansion at South West Creek.

23 Managing risk – working with industry

Delegates visited BHP Billiton’s Mount Whaleback iron ore mine to gain an understanding of the company’s risk managment measures.

The Department of Mines and Petroleum The visit began with a detailed safety regulation for Western Australia’s is currently working with industry to presentation outlining the company’s resources sector, covering mining, support the implementation of a risk Catastrophic Risk Management petroleum and dangerous goods. management approach in the (CRM) process. The Minister established a Ministerial mining industry. The process involves identifying the risks Advisory Panel to provide advice on A delegation, including members of at a mining operation, assessing critical the implementation of best practice controls and reducing risk. the Ministerial Advisory Panel on Best safety regulation. Practice Safety Regulation, its Best BHP Billiton Iron Ore is aiming to embed The panel later created a Best Practice Practice Working Group, DMP’s Safety CRM in the way they do business. Reform Project Team and Director Safety Strategies Working Group to The group toured the mine’s iron ore pit General Richard Sellers, recently visited develop an agreed set of strategies and and processing facilities to view critical BHP Billiton’s Mount Whaleback iron tools to increase the safety capabilities controls and risk reduction measures in ore mine in Newman to gain a better of both industry and the regulator. the fi eld. understanding of the company’s risk The working group identifi ed Principal management measures. Outcomes from the site visit will be Hazard Management Plans (PHMPs) as used to assist the Principal Hazard the most appropriate risk management The visit, at the invitation of BHP Billiton Management Plans Working Group, approach. PHMPs are used to identify Iron Ore President Ian Ashby, coincided led by Safety Reform Consultant and principal hazards, associated controls with the company’s Mine Safety Week General Manager for Health and Safety and the delegates were able to discuss – Iron Ore at Rio Tinto, Bob Hirte, who and the adequacy of controls on a with site workers the improved safety is currently on a 12 month secondment mine site. measures that the company is adopting. with DMP’s Resources Safety Division. The working group recommended BHP Billiton staff have been involved Best practice framework that PHMPs should apply to all mining in the continual development of the In September 2009, Mines and operations in Western Australia and that company’s safety strategy, and they Petroleum Minister Norman Moore all mining companies should be required acknowledged the importance of cultural announced the State Government’s to develop PHMPs at a single fatality change in reducing the number of intention to introduce a framework level and submit them to Resources incidents on mine sites. of “best practice, risk management” Safety—not for approval, but for review.

24 Catastrophic risk management at BHP Billiton

Following signifi cant safety incidents at BHP Billiton’s Western Australian Iron Ore operations in Mount Whaleback iron ore mine in Newman. fi nancial year 2009, the company implemented a new safety program, Catastrophic Risk Management.

BHP Billiton Head of Health & Safety – WA Iron Ore, Mark Filtness described Catastrophic Risk Management as a site-specifi c program to identify and control all fatality risks.

“This has been achieved through identifi cation of ‘critical controls’, which are essential to prevent fatal accidents,” he said.

Mr Filtness said critical controls were now regularly monitored to assess how well they were implemented and how effective they were.

BHP Billiton has implemented risk reduction measures in the fi eld. “These controls are also continually improved through the implementation of Risk Reduction Measures to move them up the hierarchy of control,” he said. This also aligned with the proposed national harmonised mines safety Extensive communication and consultation has legislation, and the working group been a key to the success of Catastrophic Risk provided recommendations to the Management. committees coordinating the national legislation. “Dedicated teams of shop fl oor personnel have been The working group will next examine the foundation of the program—after all, they are the whether the proposed national true experts who live and breathe the risk every day,” legislation will deliver the required Mr Filtness said. safety outcomes.

Risk management processes are in To date, Catastrophic Risk Management has been use with many of the major mining highly successful, reducing the number of signifi cant companies in Western Australia, however, the intent is to ensure that incidents from over 30 per month, to less than four. smaller mining companies also have risk management processes in place. Despite this success, BHP Billiton Iron Ore continues The Safety Reform Project Team is its work to ensure all employees at all levels know currently gathering and reviewing risk and understand: management plans from several mining companies to gather industry- • what can kill them specifi c experience on the risk • what are the critical controls to keep them safe management process. • whether the critical controls are working. The implementation of PHMPs is expected by 1 January 2012, in line “BHP Billiton takes the health and safety of its with a national deadline. Guidance material will be developed to assist in employees and contractors very seriously,” the transition. Mr Filtness said.

25 ©Minara Resources Ltd Mining securities system review

The Department of Mines and Petroleum implications for industry, particularly It is important to note that contributing is conducting a major review of Western many junior and mid level miners. to the fund would not absolve companies Australia’s mining securities system. from being required to pay for the Efforts in developing an alternative rehabilitation and closure of their sites, The existing system is considered model have focussed on the possibility and strict compliance measures dated and unable to provide the of substantially replacing the would be put in place to ensure that Government with suffi cient fi nancial environmental bond system with a this occurs. security in the event of companies not being able to fulfi l their rehabilitation fi delity fund arrangement administered “The department considers that such and closure obligations. by the Government (the “Mining a fund has the potential to address the Rehabilitation Fund”), conducted through State’s fi nancial risk while providing a The department is committed to a comprehensive consultation process cost effective alternative for industry,” determining whether there is a suitable with industry associations and other DMP’s Executive Director Environment alternative model that could be used Dr Phil Gorey said. to replace the current system, which is key stakeholders. estimated to provide security for only Details of the proposed model are “It is important that the about 25 per cent of the environmental provided in a preferred option paper liability of mine sites. community can be assured released by the department in March. To bring the system into line with other The paper and associated documents that it will not have to bear Australian jurisdictions would result are available at www.dmp.wa.au/ the cost of rehabilitation in a securities system based on bank- preferredoptionpaper guaranteed unconditional performance and mine closure.” bonds being required for the full cost of The fund model would see operators It is expected that the Government will rehabilitation and mine closure. provide annual contributions to a make a decision on the State’s future While such a system would provide the fund set-up specifi cally for mine mining securities system by mid 2011. Government with an adequate level rehabilitation, with individual company of fi nancial security, it is recognised contribution rates based on their current that it would have signifi cant fi nancial environmental liability.

26 Minerals titles e-lodgement boosts reform

New electronic lodgement systems • Application for Exemption (Form 18) “This is a signifi cant step for minerals titles at the Department • Application for Mining Tenement of Mines and Petroleum have made (Form 21). in the approvals reform transacting business more effi cient and convenient for resource companies “This is the fi rst stage of introducing the process and is another operating in Western Australia. new system which will eventually include example of the State all mineral titles forms associated with Mines and Petroleum Minister Norman the Mining Act,” Mr Moore said. Government’s ongoing Moore said feedback from industry about the changes was positive. “The ability for companies to use this efforts to make WA one of “Prior to these changes, companies system will provide clear benefi ts for the world’s most attractive industry and the department.” were required to lodge their forms destinations for investment at the offi ce of the Mining Registrar Electronic lodgement can be done at any responsible for the mining district,” time, from any computer. The system in the resources sector,” Mr Moore said. also features data validation to ensure the Minister said. “For example, an application for a new accuracy of required information prior exploration licence in the east Pilbara to submission. Funding for the project came through the had to be submitted, either hand highly successful Exploration Incentive delivered or by courier/mail, to DMP’s “Online submissions require a defi ned Scheme (EIS), which is part of the offi ce in Marble Bar. quality standard and higher quality State Government’s Royalties for submissions result in signifi cantly less Regions program. “These changes mean forms can now be approval timelines,” Mr Moore said. submitted to any of DMP’s 10 minerals “Approvals reform is an important “WA resources industry activity occurs titles offi ces across the State.” component of the EIS program and will mostly in regional and remote areas - The Minister said e-lodgement for a help ensure the continued investment in so making lodgement processes more selection of tenement forms was regional WA,” Mr Moore said. accessible to those areas has also available. obviously made a big difference to Included in Stage 1 are: mining companies.” • Operations Report - Expenditure on a The latest data shows tenement Mining Tenement (Form 5) applications jumped from seven per cent • Objection (Form 16) to 26 per cent using online lodgement.

E-lodgement means that companies can lodge a range of applications, including tenement applications, from anywhere they have access to the internet.

27 Commenced Operations Committed Projects

AGRICULTURE and associated mine infrastructure. The mine is Pilbara – Port Hedland Inner Harbour Expansion expected to produce over 1Mt of heavy mineral BHP BILLITON IRON ORE PTY LTD East Kimberley – Ord – East Kimberley concentrate over its four to fi ve year life, which Expansion Project will be transported to Capel for further processing In March 2011 BHP Billiton announced approval of WA STATE GOVERNMENT to produce ilmenite for upgrading in the synthetic US$7.4 billion (BHP Billiton share US$6.6 billion) The State Government has committed $220 million rutile kiln. The small stream of non-magnetic of capital investment to continue production growth to increase the existing amount of irrigated land material (zircon, rutile and leucoxene) will be further in the company’s Western Australia Iron Ore in the Kununurra region by adding 8,000 hectares processed at Narngulu, near Geraldton. operations. It will deliver an integrated operation with capacity in excess of 220 million tonnes per at Weaber Plains. This funding will provide the Expenditure: $30m. construction of irrigation channels, roads and off- annum. The investment includes US$1.9 billion farm infrastructure to service the future needs of the Employment: Construction: 130; Operation: 30 (BHP Billiton share) to increase total inner harbour region’s growing population and sustain economic installed capacity to 220Mtpa with debottlenecking growth. The Commonwealth Government has IRON ORE opportunities to 240Mtpa. The announcement is committed $195 million of funding for social and further to that made in November 2010, of US$570 common use infrastructure in the East Kimberley Mid West Region – Extension Hill Hematite Mine million* (BHP Billiton share) and an earlier pre- region. Construction has commenced and the MOUNT GIBSON IRON LIMITED commitment of US$1.73 billion* (BHP Billiton share) package will be fully implemented by June 2013. Mount Gibson Iron has environmental approval for announced in January 2010. Expenditure: $415m. a 3Mtpa hematite mining operation at Extension Expenditure: US$1.9 billion* Employment: Construction: 483 Hill, 260km south east of Geraldton. The ore will be trucked to a rail head near Perenjori then railed Employment: Figures not currently available IRON ORE to the port of Geraldton for export. Construction of Pilbara – Port Blending and Rail Yard Facilities the project has commenced with fi rst shipments BHP BILLITON IRON ORE PTY LTD Pilbara – FMG Chichester – Iron Ore Mine, expected to be in June 2011. Rail and Port Development In March 2011 BHP Billiton announced approval of Expenditure: $73m. FORTESCUE METALS GROUP LTD US$7.4 billion (BHP Billiton share US$6.6 billion) Employment: Construction: 150; Operation: 100 FMG Chichester operates iron ore mines at of capital investment to continue production growth Cloudbreak and Christmas Creek in the Chichester in the company’s Western Australia Iron Ore Ranges of the eastern Pilbara, serviced by a multi- Mid West Region – Karara Iron Ore operations. It will deliver an integrated operation user railway and port facilities at Port Hedland. FMG KARARA MINING LTD (GINDALBIE METALS LTD / with capacity in excess of 220 million tonnes per Chichester is currently ramping production up to ANSTEEL JOINT VENTURE) annum. The investment includes US1.4 billion (BHP 45Mtpa and is investigating increasing its production The Karara Iron Ore Project is Karara Mining’s Billiton share) to optimise resource and enhance to 95Mtpa from the Chichester Ranges. cornerstone production project in the Mid West effi ciency across the BHP Billiton WA Iron ore Employment: Construction: 2500; Operation: 3200 region. Construction commenced in November operation supply chain. The announcement is further 2009. Karara will deliver some 10Mtpa of iron to that made in November 2010, of US$570 million* LITHIUM products before the end of 2011, comprising 8Mtpa (BHP Billiton share) and an earlier pre-commitment of high grade magnetite concentrate and blast of US$1.73 billion* (BHP Billiton share) announced Great Southern Region – Mount Cattlin Lithium furnace quality pellets and 2Mtpa of Direct Shipping in January 2010. Project, Ravensthorpe Ore hematite. The Project is underpinned by a Expenditure: US$1.4 billion* GALAXY RESOURCES LIMITED world-class JORC-Code compliant resource base Galaxy Resources Limited commenced comprising a 977 million tonne magnetite reserve, Employment: Figures not currently available commissioning of the Mt Cattlin lithium concentrate a 2.518 billion tonne magnetite resource, a 10.9Mt Pilbara – Solomon Hub Stage 1 processing plant in September 2010. The mine and hematite reserve and a 16.2Mt hematite resource. FORTESCUE METALS GROUP LTD the processing plant will produce approx. 137,000tpa Expenditure: $1.975b. of spodumene concentrate. Galaxy commenced Fortescue is progressing with approvals for its Employment: Construction: 1500; Operation: 500 exporting its product to China in the fi rst quarter proposed 60 million tonne per annum iron ore mine of 2011. In China, Galaxy will produce 17,000tpa of at Solomon and supporting infrastructure. The battery grade lithium carbonate. A large proportion Pilbara – BHPB Rapid Growth Project 5 Solomon Hub is planned to initially involve at least of this will make its way into the growing markets of BHP BILLITON IRON ORE PTY LTD two mining areas, two processing plants and a 130 China and Japan. BHP Billiton Iron Ore has obtained all relevant kilometre rail link to Fortescue’s existing Christmas Expenditure: $75m. Government approvals to further increase its Creek to Port Hedland rail line. The proposed mining Employment: Construction: 100; Operation: 75 installed production capacity of its Western areas and rail corridor for the Solomon Hub are Australian Iron Ore operations. Scope review of within Unallocated Crown Land and active pastoral BAUXITE the Project has been completed and it will be leases and approximately 70 kilometres north of integrated into subsequent expansion approvals Tom Price in the Hamersley Ranges. Subject to Worsley/Boddington – Alumina Refi nery – that will increase capacity of BHP Billiton’s Western Government approvals and fi nal sign off by the E & G Project Expansion to 4.7Mtpa Australia iron ore operations to 200Mtpa. The Project Fortescue Board, a two year construction period will BHP BILLITON WORSLEY ALUMINA PTY LTD is currently in schedule (overall Project is 95% begin in 2011 with fi rst production planned for BHP Billiton announced in May 2008 the go-ahead complete) and budget based on original scope. mid 2012. for the A$2.5 billion Effi ciency and Growth (E&G) Expenditure: US$4.8b. expansion project at its Worsley alumina refi nery. Expenditure: $4b. Employment: Figures not currently available. The expansion project will lift capacity of the refi nery Employment: Construction: 1000; Operation: 3000 from 3.5Mtpa to 4.7Mtpa through expanded mining Pilbara – BHPB Jimblebar Mine Expansion operations, additional refi ning capacity and upgraded Yilgarn – Koolyanobbing Iron Ore Upgrade BHP BILLITON IRON ORE PTY LTD port facilities. Construction has commenced and CLIFFS ASIA PACIFIC IRON ORE PTY LTD production capacity is expected to be expanded by In March 2011 BHP Billiton announced approval of In September 2010, Cliffs approved an upgrade 2012. An additional A$500 million will be spent on a US$7.4 billion (BHP Billiton share US$6.6 billion) new multi-fuel cogeneration power plant to be built of capital investment to continue production growth of its Koolyanobbing iron ore operations from at the refi nery. in the company’s Western Australia Iron Ore 8.5Mtpa to around 11Mtpa. Koolyanobbing is located 50km north east of Southern Cross and also Expenditure: $2.5b. operations. It will deliver an integrated operation with capacity in excess of 220 million tonnes per includes the Mt Jackson and Windarling mines. Employment: Construction: 1500; Operation: 200 annum. The investment includes US$3.3 billion The improvements are expected to consist of (BHP Billiton share) to increase installed mining and enhancements to the existing Kalgoorlie-Esperance HEAVY MINERAL SANDS processing capacity at Jimblebar mine to 35Mtpa rail infrastructure, an increase in rolling stock with incremental debottlenecking opportunities to and upgrades to various other existing operational Tutunup South – Heavy Mineral Sands Mine 240Mtpa. The announcement is further to that made constraints. Cliffs anticipates these improvements ILUKA RESOURCES LIMITED in November 2010, of US$570 million* (BHP Billiton to be fully implemented in the second half of 2012. The Tutunup South mineral sands mine, located share) and an earlier pre-commitment of US$1.73 The development of the Mt Jackson J1 deposit, approximately 15km south east of Busselton, is billion* (BHP Billiton share) announced in which contains 30Mt of iron ore reserves, is currently currently under construction and fi rst production January 2010. underway and is expected to contribute to the is planned to commence in the second half of 2011. Expenditure: US$3.3 billion* increased production. The project involves the construction of mine pits, screen plant, ore concentrator, solar drying dams Employment: Figures not currently available Expenditure: $320m.

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

IRON ORE PROCESSING 2009. The project is based on gas from both the RARE EARTHS offshore Gorgon and Jansz/Io gas fi elds. Pilbara – Cape Preston – Sino Iron Mt Weld – Rare Earths Mine Expenditure: $43b. CITIC PACIFIC LYNAS CORPORATION LTD Employment: Construction: 3500; Operation: 300 CITIC Pacifi c Mining is constructing the Sino Iron The Mt Weld deposit is located about 35km south project at Cape Preston, 100 kilometres south west Carnarvon Offshore Basin – Cossack/Wanaea – of Laverton and contains an estimated resource of of Karratha. The magnetite iron ore project will Cossack/Wanaea Redevelopment 17.4Mt at 8.1% grade for 1.41Mt rare earth oxides include a concentrator, 6Mtpa pellet plant, 25km WOODSIDE ENERGY (REO). The mine development includes an open pit slurry pipeline, combined cycle 450MW power mine and concentration plant at Mt Weld, which was station, new port and trans-shipment facilities, and In December 2008 the Cossack Wanaea Lambert completed in March 2011. The concentrate will be a 51GL desalination plant. At full production up to and Hermes oil venture participants (CWLH joint bagged and containerised on site, and trucked to the 27.6 million tonnes of magnetite concentrate and venture) approved funding of the A$1.8 billion CWLH Port of Fremantle for export. The ore will be shipped high grade pellets will be exported each year. First Redevelopment Project to support ongoing safe to a $300 million processing plant in Malaysia, which shipment of concentrate is expected in the second and reliable production from the Cossack, Wanaea, will have an initial production capacity of 11,000tpa half of 2011. Lambert and Hermes fi elds beyond 2020. The project REO scheduled to commence in Q3 2011, expanding scope of work includes the purchase and conversion to 22,000tpa by 2013. Expenditure: $5.2b. of the Okha fl oating storage and offl oading (FSO) Employment: Construction: 4000; Operation: 500 facility owned by Single Buoy Moorings into an Expenditure: $135m. FPSO facility to replace the Cossack Pioneer FPSO Employment: Construction: 135; Operation: 90 NICKEL in 2011, and the replacement of associated subsea infrastructure. SILICON METAL Ravensthorpe – Ravensthorpe Nickel Operation Expenditure: $1.8b. FIRST QUANTUM MINERALS AUSTRALIA Kemerton – Silicon Metal Plant Expansion NICKEL PTY LTD Carnarvon Offshore Basin – SIMCOA OPERATIONS PTY LTD North Rankin Redevelopment First Quantum Minerals (FQM) acquired the Simcoa announced in October 2009 its decision to WOODSIDE ENERGY Ravensthorpe Nickel Operation (RNO) from BHP expand the company’s 32,000tpa capacity silicon Billiton in February 2010. FQM plans to return RNO In March 2008 the North West Shelf Venture metal plant at Kemerton. The fi rst stage expansion, to sustainable production by late 2011. RNO is an participants approved funding of the $5 billion North involving installation of a third furnace, will increase open cut mine and hydrometallurgical process Rankin Redevelopment Project which will recover the plant capacity to 48,000tpa and commissioning plant that produces a mixed nickel cobalt hydroxide remaining low pressure gas from the North Rankin is scheduled for Q3 2011. Providing world demand intermediate product. The modifi cations are within and Perseus gas fi elds, and extend the fi eld life to for silicon continues to increase strongly, a second the plant’s existing footprint in the materials around 2040. The project involves the installation stage expansion, involving installation of a fourth handling area, including crushing, conveying and of a new second platform - North Rankin B - with furnace could take place by late 2013 and increase stockpiles. FQM aims to produce 39,000tpa nickel gas compression facilities, low pressure separators, plant capacity to 64,000tpa. utilities and accommodation. North Rankin B will metal for the fi rst fi ve years after recommencement Expenditure: $100m. and 28,000tpa nickel metal over the current be connected by a 100m bridge to the existing anticipated mine life of 32 years. North Rankin A platform and on completion both Employment: Construction: 120; Operation: 40 platforms will be operated as a single integrated Expenditure: $190m. facility known as the North Rankin hub. The North VANADIUM Employment: Construction: 200; Operation: 500 Rankin Redevelopment project also includes the necessary connections to North Rankin A and some Windimurra – Windimurra Vanadium Project OIL & GAS DEVELOPMENTS refurbishment of the North Rankin A platform. ATLANTIC LIMITED North Rankin B is scheduled for start-up in 2013 Atlantic has recently increased the global resource Carnarvon Basin – Pluto LNG and will support the North West Shelf inventory at its developing Windimurra vanadium Venture’s onshore gas requirements to supply WOODSIDE ENERGY project by 19% to nearly 210 million tonnes following future customer commitments. Approved for development in July 2007, the project positive results from resource defi ning drilling. The will process gas from the Pluto and Xena gas fi elds, Expenditure: $5b. increase in global mineral resources at its northern located about 190km north-west of Karratha in start-up area will allow the operation to continue to Pilbara – Devil Creek Development Project Western Australia, into LNG and condensate. The benefi t from short distance haulages to the plant for Pluto and Xena gas fi elds are estimated to contain APACHE ENERGY LIMITED several years more than in the current life of mine 4.8 trillion cubic feet (Tcf) of dry gas reserves and Apache Northwest and Santos Offshore are plan. The construction of the Windimurra Vanadium an additional 0.25Tcf of contingent resources. The continuing construction works for the Devil Creek Project is fully funded and its completion is well initial phase of the Pluto LNG Project comprises Development Project, a greenfi eld gas project underway. Plant commissioning and fi rst production fi ve subsea wells on the Pluto gas fi eld connected comprised of an unmanned offshore gas production are expected to start in Q3 of 2011. to an offshore processing platform in 85m of water. platform over the Reindeer gas fi eld located about Expenditure: $500m. Gas will be piped about 180km to the onshore plant 80km northwest of Dampier; offshore and onshore Employment: Construction: 350; Operation: 120 in a 36-inch pipeline. Onshore facilities at the Pluto gas pipelines; an onshore gas processing plant and a LNG Park include a single LNG processing train with sales gas export pipeline connected to the Dampier forecast production capacity of 4.3 million tonnes a to Bunbury Natural Gas Pipeline. The development year, in addition to storage facilities and an export site is located near Devil Creek, 65km south west of jetty. Pluto LNG Foundation Project has transitioned Karratha where the construction workforce is being to an ‘operating’ site with the introduction of accommodated within a purpose built facility. natural gas into the plant in early March. Start-up The project is designed to provide up to is targeted for August 2011 and LNG one month 200 terajoules per day of dry natural gas and later. The Pluto LNG Project is on track to become between 80kl to 160kl per day of gas condensate. the world’s fastest developed LNG project from All gas will service the domestic market in discovery of the gas fi eld in 2005 to fi rst LNG in Western Australia. Gas plant site civil works are Q3 2011. now complete, thus facilitating the installation of Expenditure: $14b. pipe rack and gas processing modules. Module pipework and electrical interconnection work is Employment: Construction: 4000; Operation: 300 now proceeding. Construction of the onshore gas Carnarvon Offshore Basin – Barrow Island – supply pipeline and the pipeline shore crossing is Gorgon Project now complete and the offshore installation works has commenced, with fi rst gas to be delivered in the GORGON JOINT VENTURE second half 2011. The Gorgon Joint Venture (GJV) made a fi nal Expenditure: $800m. investment decision on the $43 billion Gorgon Project on 14 September 2009. The GJV’s foundation Employment: Construction: 200; Operation: 20 project on Barrow Island includes a three train LNG development capable of exporting 15Mtpa Prospect Magazine is also and a domestic gas project capable of delivering at available to view online. least 300 terajoules per day of gas to the mainland. The development on Barrow Island also includes potentially the largest commercial geosequestration Visit project in the world. The project obtained State and www.dsd.wa.gov.au/Prospect Commonwealth environmental approval in August

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

AMMONIA/UREA HEAVY MINERAL SANDS Woodside led Browse Joint Venture is a potential foundation proponent for the Precinct. Joint Venture Shotts Industrial Park – Collie Coal to Urea Happy Valley – Heavy Mineral Sands Mine participants are expected to make a fi nal investment PERDAMAN CHEMICALS AND FERTILISERS BEMAX RESOURCES LTD decision in mid-2012. PTY LTD Located adjacent to the Bemax Gwindinup deposits Expenditure: $30b. Perdaman Chemical and Fertilisers Pty Ltd is south of Bunbury, the project will involve the mining Employment: Construction: 6000; Operation: 400 developing a $3.5 billion coal to urea plant at the of the Happy Valley North and South mineral sands new (to be developed) Shotts Industrial Park, near deposits situated on private land and in State Forest. Oakajee – Oakajee Midwest Development The two deposits contain over 750,000 tonnes of Collie. The plant will use proven “best in class” coal WA STATE GOVERNMENT gasifi cation and fertiliser production technologies. recoverable heavy mineral concentrate, with average Around 2.7Mtpa of coal will be used to produce production expected to be around 150,000tpa over a The Oakajee Port will include common user approximately 2Mtpa of urea, primarily for export. combined mine life of eight years. The concentrate infrastructure (channel, breakwater, turning basin, will be trucked to Bemax’s Bunbury Mineral The urea will be transported to Bunbury Port by rail. navigational aids, provision for tug and pilot boat Separation Plant for fi nal processing. In February The company has recently received environmental pens, port administration offi ces and roads and 2011, the EPA recommended that the Minister for approval from the WA Minister for Environment in utilities) funded by the State and Commonwealth Environment not approve the company’s proposal to accordance with the Environmental Protection Act. Governments and private use infrastructure (at develop the Happy Valley mine. Bemax has lodged an A 20-year off take agreement has been signed with least one Cape Class iron ore berth, as well as appeal against the EPA’s decision. Incitec Pivot. Construction is expected to commence associated materials handling equipment and rail in 2011 with the fi rst shipment of urea planned Expenditure: $35m. infrastructure) funded by Oakajee Port and Rail Pty for 2014. Employment: Construction: 100; Operation: 30 Ltd. The Port will also include provision for a non iron ore berth in the future to provide Expenditure: $3.5b. Keysbrook – Heavy Mineral Sands Mine import/export capability for value-adding industries Employment: Construction: 1500; Operation: 200 MATILDA ZIRCON LIMITED in the Oakajee Industrial Estate. A northern railway Matilda Zircon proposes to develop a mineral sands will link the port to mines to the north-east of AMMONIUM NITRATE mine located near the township of Keysbrook, Geraldton and a southern railway will link to the approximately 70km south of Perth. It has ore mines in the south-east. The northern rail line Pilbara – Burrup Industrial Estate Site D reserves of 41Mt, containing 1.2Mt of heavy mineral will be operated by Oakajee Port and Rail though – Burrup Nitrates concentrate. The project is expected to produce an open access regime. Oakajee Port and Rail has BURRUP NITRATES PTY LTD 40,000tpa of leucoxene and 47,000tpa of ilmenite, now identifi ed three foundation customers with an Burrup Nitrates Pty Ltd (BNPL), a joint venture high titanium ilmenite and zircon over its eight expected initial throughput of 45Mtpa and delivered between Burrup Holdings Ltd (BHL) of Australia and year mine life. Keysbrook received environmental its draft bankable feasibility study to the State Yara International ASA of Norway, is conducting a approval in October 2009. Matilda’s applications for for consideration. development approvals have been refused by the feasibility study into the construction of a 350,000tpa Murray and Serpentine-Jarrahdale Shires, and have Expenditure: $4b. Technical Ammonium Nitrate (TAN) plant to been referred to the State Administrative Tribunal. be located on the Burrup Peninsula. Ammonia Employment: Construction: 2000; Operation: 300 A determination from this process is expected in feedstock will be supplied from BHL’s subsidiary September 2011. Subject to obtaining development Pilbara – Anketell – Anketell Port and SIA company Burrup Fertilisers Pty Ltd, which operates approvals and completion of the Defi nitive Feasibility (Strategic Industrial Area) its facility directly adjacent to the proposed location Study, Matilda Zircon will be in a position to seek WA STATE GOVERNMENT for the new TAN plant. It is expected that all funding and start construction in 2012. manufactured product will be sold into the Pilbara The Anketell project includes establishment of region. Regulatory approvals are in progress. The Expenditure: $25m. a multi-user, multi-commodity deepwater port company is aiming for operations to commence by Employment: Construction: 35; Operation: 30 and associated strategic industrial area (SIA) at Q4 2013. Anketell, located 30km east of Karratha. The port Shark Bay – Coburn Zircon Project Expenditure: $600m. and corridor development will be proponent funded GUNSON RESOURCES LIMITED but will ultimately be managed and owned by the Employment: Construction: 600; Operation: 65 Gunson proposes to develop the Coburn Dampier Port Authority. The strategic industry land zircon project, located south of Shark Bay and will be managed by LandCorp. Three Companies ELECTRICITY approximately 250km north of Geraldton. It contains have expressed interest in developing facilities at total ore reserves of 308Mt at an average grade Anketell: Australia Premium Iron (API) for its Mid West Region – Centauri 1 Power of 1.2% heavy minerals, all of which lie within 30-40Mtpa West Pilbara Iron project, MCC Australia ENEABBA GAS LIMITED (EGL) the portion of the project area that has received Holding Pty Ltd (MCC) for its 15Mtpa Cape Lambert government environmental approvals for mining. Eneabba Gas Limited is planning to develop a Iron Ore project, and Fortescue Metals Group (FMG) The project is expected to produce 40,000tpa of 168MW Centauri 1 gas-fi red turbine power station for its 100Mtpa Solomon project. It is planned that zircon, 90,000tpa of ilmenite, 9,000tpa of rutile and near Dongara. Generation capacity can be increased the port construction period commence in early 2012 7,000tpa of leucoxene. At the proposed mining rate to 365MW. The project is focused on supplying to enable operations to commence 2014. of 17.5Mtpa, the Coburn mine life is estimated to be additional volumes of energy for the developing 17.5 years which could be extended by six years if Mid West iron ore industries. the northern area receives government approvals IRON ORE Expenditure: $200m. for mining. The Project Defi nitive Feasibility Study Great Southern Region – Southdown Magnetite Employment: Construction: 100; Operation: 4 and Defi nitive Design Study have been completed. Gunson is continuing to advance discussions with Mine potential strategic funding and offtake partners. GRANGE RESOURCES LTD GOLD Expenditure: $169m. The Southdown Magnetite deposit is situated 90km Kalgoorlie (330kms North East) – Tropicana Gold Employment: Construction: 170; Operation: 110 north east of Albany near Wellstead. The Southdown ANGLOGOLD ASHANTI/INDEPENDENCE GROUP Project is a joint venture between Grange Resources JOINT VENTURE INFRASTRUCTURE Ltd (70%) and Sojitz Resources & Technology Pty Ltd. AngloGold Ashanti, as Joint Venture Manager, has Grange Resources Ltd is targeting a 2014 start-up undertaken an intensive exploration and resource Kimberley – James Price Point – Browse LNG with production of 10Mtpa of magnetite concentrate. development program approximately 330kms Precinct The slurry concentrate will be transported via a north east of Kalgoorlie. Plans for the project WA STATE GOVERNMENT 100km underground pipeline from the mine to the are to develop an open-cut gold mine and nearby The State Government is developing a Liquefi ed Port of Albany for export and pelletising. The Albany processing plant. So far, a resource estimate of Natural Gas (LNG) Precinct on the Dampier Port Authority received environmental Ministerial 5 million oz of gold has been identifi ed with Peninsula, 60km north of Broome, to enable approval in November 2010 to expand the Port to a mine life of at least 10 years. The feasibility processing of natural gas from the offshore allow access by Cape size vessels and to increase study commenced in July 2009 and is ongoing. Browse Basin. The LNG Precinct will be capable berth, storage and loading facilities. Environmental Environmental approvals were fi nalised in of accommodating LNG processing and shipping approvals for a 6.6Mtpa mine and pipeline are in September 2010. Commonwealth environmental facilities for at least two proponents. By focussing place and an increase for the mine to produce approval received on 13 December 2010. development at a location where environmental 10Mtpa is currently being processed. Assuming the Construction start is planned for mid-2011. impacts are considered to be most manageable, the current prefeasibility study has positive results, a Gold production is planned for 2013. Precinct will minimise the environmental footprint defi nitive feasibility study is expected by late 2011. of gas processing in the region while maximising Expenditure: $1.7b. Expenditure: $700m. opportunities for the local area to benefi t from Employment: Construction: 700; Operation: 400 employment and business opportunities. The Employment: Construction: 2000; Operation: 600

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

Mid West Region – Extension Hill Magnetite Mine Pilbara – Outer Harbour Development, (Australia) Pty Ltd and Apache Energy Limited are ASIA IRON Port Hedland currently progressing the necessary approvals for a domestic gas project for Western Australia. Asia Iron has primary environmental approval to BHP BILLITON IRON ORE PTY LTD The development will involve a number of sub- produce up to 10Mtpa of magnetite concentrate, BHP Billiton Iron Ore released its Public sea gas wells connected to the gas fi eld, offshore which will be transported by slurry pipeline to Environmental Review (PER)/Draft Environmental and onshore wet gas pipelines, an onshore gas the port of Geraldton for export. The company is Impact Statement (Draft EIS) on 18 April 2011 to processing plant 15km southwest of Onslow, and currently seeking secondary approvals. seek State and Federal Government approvals for a sales gas pipeline connected to the Dampier-to- Expenditure: $2b. the proposed development of an Outer Harbour Bunbury Natural Gas Pipeline. Daily production is facility in Port Hedland. The PER/Draft EIS will be Employment: Construction: 1000; Operation: 350 expected to be in the order of 200TJ. Construction is available for public comment for a period of eight expected to start in early 2011, and gas production to Mid West Region – Jack Hills Expansion weeks. BHP Billiton Iron Ore’s investment in the commence in early 2013. development of the proposed Outer Harbour project CROSSLANDS RESOURCES remains subject to a number of external factors Expenditure: $1b. Crosslands commenced trucking 1.5Mtpa hematite which are outside BHP Billiton Iron Ore’s control, Employment: Construction: 300 from its Jack Hills operations to the port of such as market conditions. Geraldton in December 2006. Jack Hills Stage 2 Pilbara – Wheatstone LNG Development Expenditure: Not currently available. would involve an increase to 25-35Mtpa of hematite CHEVRON AUSTRALIA PTY LTD and benefi ciation feed ore. The ore would be Employment: Figures not currently available Chevron is investigating the feasibility of an LNG transported by a new railway to a new deepwater Pilbara – Roy Hill Iron Ore Mine & Infrastructure project based on its Wheatstone and Iago gas fi elds, port at Oakajee. A bankable feasibility study and to be located at Ashburton North, near Onslow. The exploration drilling program on the Stage 2 project HANCOCK PROSPECTING PTY LTD project will also process gas from sub-economic is progressing. Hancock Prospecting is developing the Roy Hill iron third party fi elds in the Carnarvon Basin. Chevron Expenditure: $2b. ore project located 105km north east of Newman. entered FEED (Front End Engineering Design) in This project is expected to come into production Employment: Construction: 450; Operation: 350 July 2009 with a Final Investment Decision planned in 2014 and will produce iron ore for over 20 years for mid 2011. Gas to market is scheduled for 2016. Mid West Region – Weld Range Iron Ore Mine after ramp-up at 55Mtpa. The project includes the The project will initially have two LNG trains with a development of the mine, a new railway and port SINOSTEEL MIDWEST CORPORATION LIMITED 10Mtpa capacity, expandable to fi ve, and a facilities at Port Hedland. Environmental approval 250 million cubic feet per day domestic gas plant. Sinosteel Midwest Corporation proposes to develop for Roy Hill mine Stage 1 was received in December a 15Mtpa iron ore mine at Weld Range 65km 2009 and environmental approval for Stage 2 was Expenditure: $23b. southwest of Meekatharra, producing a mix of received in March 2010. Employment: Construction: 5000; Operation: 400 hematite lump and fi nes. The project is expected Expenditure: $7b. to utilise a new rail line and a new deepwater port TIMBER facility at Oakajee. The company fi nalised a bankable Employment: Construction: 1500; Operation: 750 feasibility study in July 2010. Pilbara – West Pilbara Iron Ore Project Mirambeena Timber Processing Precinct - Expenditure: $1b. API MANAGEMENT PTY LTD Engineered Strand Lumber LIGNOR LTD Employment: Construction: 1000; Operation: 500 The Australian Premium Iron Joint Venture is Lignor proposes to develop an Engineered Strand Pilbara – Cape Lambert Iron Ore Project proposing to develop the West Pilbara Iron Ore Project. Stage 1 of the project is based on the Lumber ESL®/ Engineered Strand Board ESB® MCC AUSTRALIA HOLDING PTY LTD production of 30Mtpa of direct shipping iron ore plant located at Mirambeena, about 15km north MCC Australia Holding Pty Ltd is developing a from its Red Hill and Mt Stuart mine sites located west of Albany. The Commercial Plant will be 15Mtpa magnetite iron ore mine in the Pilbara 35-80km south west of Pannawonica. The ore preceded by the construction of a Demonstration and aims to ship its fi rst ore in 2015 via the new will be transported by a new heavy haul railway Plant/Global R&D Centre. This Plant will produce a multi-user 350Mtpa port at Anketell. The Project for export via the new multi-user 350Mtpa port at range of products for certifi cation to the Australian comprises a proven JORC compliant 1.9bt iron Anketell. Subject to the successful completion of Building Code and overseas equivalents. The Plants ore resource. The Project would consist of a feasibility and environmental studies, and receipt will source most of the timber from the extensive benefi ciation plant, 300MW power plant, port of government regulatory approvals, the company eucalypt plantations in the Albany region. Lignor facilities for exporting concentrate and other related anticipates that the fi rst shipment of ore will occur is fi nalising its design of the Demonstration Plant infrastructure. MCC has completed feasibility in 2014. and anticipates construction to commence by the studies for the port, power supply, water supply, fi rst quarter of 2012, with product coming into the Expenditure: $4b. accommodation and general site infrastructure. market by mid 2013. Following successful results The mine and processing studies are progressing. Employment: Construction: 2000; Operation: 700 from the Demonstration Plant, construction of the The company commenced native title negotiations Commercial Plant is expected to commence by with the Ngarluma Aboriginal people in March 2010. OIL AND GAS DEVELOPMENTS mid 2016. An environmental scoping document has been Expenditure: $273m. submitted to the EPA. Carnarvon Basin – Pluto LNG Project Expansion – Trains 2 & 3 Employment: Construction: 380; Operation: 125 Expenditure: $3.7b. WOODSIDE ENERGY Employment: Construction: 3000; Operation: 1000 URANIUM Pluto expansion is being progressing as a priority in Pilbara – FMG Central Pilbara Project (Solomon 2011. The Pluto LNG Park provides the opportunity Northern Goldfi elds – Yeelirrie – Yeelirrie Stage 2 and Western Hub) to consider both equity gas development and Uranium other resource owner gas supply at the fi ve train FORTESCUE METALS GROUP LTD BHP BILLITON YEELIRRIE DEVELOPMENT site. The foundation project investment in support FMG’s Central Pilbara project is located in the COMPANY PTY LTD infrastructure enables a signifi cantly lower cost and Solomon Stage 2 area (about 70km north of Tom de-risked expansion opportunity. As a brownfi eld BHP Billiton proposes to develop the Yeelirrie Price) and the Western Hub (west of Solomon) in development Pluto expansion will require a much Uranium Project in the North-eastern Goldfi elds, the Pilbara. To date, Solomon Stage 2 has identifi ed smaller workforce to construct compared to a near Wiluna. The proposal entails open cut mining resources of 1.1 billion tonnes, with a target of greenfi eld development. Woodside has completed of shallow deposits of uranium ore, treatment in a 2 billion tonnes, comprising channel iron, bedded front-end engineering and design (FEED) for the plant to be established at the site, and development Brockman and detritals iron deposits. Start-up next two onshore trains. Woodside plans to order of associated infrastructure. The project would production from Solomon Stage 2 of 20Mtpa is long-lead items (LLIs) in 2011 to maintain an earliest produce up to 3,500tpa uranium oxide concentrate scheduled for 2014, with aspirations to expand to ready for start up for an expansion train by end 2014. over about 30 years. The formal environmental around 200Mtpa by 2017 (100Mtpa from Solomon Discussions continue with third parties regarding the impact assessment process was initiated in 2009 and Stage 2 and 100Mtpa from Western Hub). The project potential to process Carnarvon Basin gas through the project Environmental Scoping Document was comprises mines, a new 250km railway linking additional trains at Pluto. approved in May 2010. The Company is reviewing the Solomon Stage 2 mines to berths and shiploading project as part of its Selection Phase Study prior to facilities in the new 350Mtpa multi-user port Carnarvon Offshore Basin – Macedon Domestic submission of a draft ERMP. The uranium oxide will at Anketell. Gas Project be transported to South Australia by road for export Expenditure: $7b. BHP BILLITON PETROLEUM (AUSTRALIA) to overseas markets. Employment: Construction: 4800; Operation: 2650 PTY LIMITED Employment: Construction: 700; Operation: 300 The Macedon gas fi eld, about 90km west of Onslow, was discovered in 1992 during drilling of the West Muiron-3 well and is estimated to contain a gas resource of up to 600bcf. BHP Billiton Petroleum

All conversions from foreign currencies were calculated at the latest available rate. 31 Visit us online Signifi cant resource projects in Western Australia

Prospect can be downloaded free of Western Australia continues to lead the way as Australia’s premier resources charge from the Internet by visiting the investment destination. There are currently more than A$150 billion worth of website of the Department of Mines and projects either committed or under consideration for the State during the next Petroleum at: www.dmp.wa.gov.au few years. These will create more than 45,000 construction jobs and 10,500 permanent jobs.

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

Project Value Employment Prospect (estimated A$m) Construction Permanent Alumina Subscription/Change of address BHP Billiton Worsley Alumina – Refi nery Expansion 2500 1500 200 ABN: 69 410 35 356 Sub Total 2500 1500 200 Iron and Steel Asia Iron – Extension Hill Magnetite Mine 2000 1000 350 Australian Premium Iron Joint Venture – Iron Ore Mine 4000 2000 700 Name: BHP Billiton Iron Ore Rapid Growth Project 5 4800 3500 n/a BHP Billiton Iron Ore Rapid Growth Project 6 n/a n/a n/a z CITIC Pacifi c – Cape Preston Mine and Processing Projects 5200 4000 500 Cliffs Asia Pacifi c Iron Ore – Koolyanobbing Iron Ore Upgrade 320 n/a n/a Crosslands Resources – Jack Hills Stage 2 Hematite Mine 2000 450 350 Position: Fortescue Metals Group – Central Pilbara Project (Solomon Stage 2 and Western Hub) 7000 4800 2650 Fortescue Metals Group – Mine, Rail and Port Project n/a 2500 3200 Organisation: Fortescue Metals Group – Solomon Project 4000 1000 3000 Grange Resources – Southdown Magnetite Mine 1700 2000 600 Hancock Prospecting – Iron Ore Mine – Roy Hill 7000 1500 750 Address: Karara Iron Ore Project 1975 1500 500 MCC Cape Lambert Iron Ore Project 3700 3000 1000 z Sinosteel Midwest Corporation – Weld Range Hematite Mine 1000 1000 500 Sub Total 44,695 24,750 14,100 Nickel/Cobalt Type of business: Ravensthorpe Nickel Operation 190 200 500 Sub Total 190 200 500 Oil, Gas and Condensate Phone number: Apache – Devil Creek Project 800 200 20 BHP – Macedon 1000 300 n/a Browse LNG Precinct 30,000 6000 400 Email Chevron – Wheatstone LNG 23,000 5000 400 Please tick the appropriate box Gorgon Joint Venture Gas Processing Project 43,000 3500 300 Please add me to your mailing list to receive my one year subscription of the Prospect magazine. North Rankin Redevelopment 5000 n/a n/a one year @ $12 (incl. GST) Woodside – Pluto LNG Plant 14,000 4000 300 My cheque, made out to the Department of Mines and Woodside Energy – Cossack Wanaea Lambert Hermes (CWLH) Petroleum, is enclosed OR please debit the amount to Redevelopment Project 1800 n/a n/a my credit card using the following details: Sub Total 118,600 19,000 1420 Type of card: Visa Bankcard Mastercard Other AngloGold Ashanti/Independence Group – Tropicana Gold Project 700 700 400 Expiry date BHP Billiton – Yeelirrie Uranium n/a 700 300 This form will become a tax invoice for GST purposes when payment is made. Burrup Nitrates ammonium nitrate 600 600 65 Change of address Oakajee Port, Rail and Industrial Estate 4000 2000 300 (please make changes required on one of your old labels). Please photocopy or cut coupon and mail to: Ord East Kimberley Expansion Project 415 483 n/a Prospect subscriptions Perdaman Chemicals & Fertilisers – Collie – Coal-to-Urea Plant 3500 1500 200 Information Centre Windimurra Vanadium Project – Vanadium Pentoxide Mine and Department of Mines and Petroleum Processing Plant 500 350 120 Mineral House, 100 Plain Street East Perth, Western Australia 6004 Sub Total 9715 6333 1385 TOTAL 175,700 51,783 17,605 MINERAL SYMBOLS PETROLEUM SYMBOLS COMMODITIES INSET C Precious metal Gas field Au...... Gold Major Resource Projects — June 2011 05km Au (or as shown) Cr...... Chromium Wonnich Oil field Cu...... Copper Wonnich Deep Bambra Ulidia Steel alloy metal Oil and gas field Northwest Shelf / Pilbara Region Ni (or as shown) Significant gas discovery Fe...... Iron Mutineer LNG...... Liquefied natural gas Fletcher Speciality metal Processing plant Exeter Bambra East Lee Ti–Zr (or as shown) Lst...... Limestone Oil / gas pipeline, operating INSET B Rose Base metal Mo...... Molybdenum Harriet Oil / gas pipeline, proposed Persephone Eaglehawk Hermes Lambert Deep North Alkimos Monty Iron Ni...... Nickel Athena Lambert Gudrun Pb...... Lead Egret Josephine Uranium INFRASTRUCTURE Larsen Noblige Searipple Montague Angel Baker Pd...... Palladium Larsen Deep Industrial mineral Capella Cossack Zephyrus Power plant Pt...... Platinum Forestier Simpson North Rankin Ajax Processing plant Ta...... Tantalum Perseus Wanaea South Plato Chandon Gaea Legendre North Irrigation / water / desalination Ti...... Titanium Echo/Yodel Goodwyn Hurricane Legendre South Pedirka Port V...... Vanadium Keast Goodwyn South/Pueblo Double Island Zn...... Zinc Yellowglen Rankin/Sculptor Tidepole Little Sandy Zr...... Zirconium Dockrell Victoria Urania Gorgon LNG West Cycad Wheatstone Dixon/West Dixon Jansz Io Pemberton Sage Barrow Island Pluto Saffron Narvik Eris Iago/North Tryal Rocks Barrow I Io South Geryon/Callirhoe Reindeer Xena Wilcox Caribou Gnu Chrysaor/Dionysus Brunello Corvus Wandoo Port Hedland Salt Maenad Orthrus Julimar Ridley Pardoo Tusk Port Hedland Achilles Acme West Tryal Rocks Clio Oryx Stag Chamois Poondano Gorgon John Brookes SEE INSET C Satyr Yarrie Rosella NWSV LNG Burrup Fertilisers Cape Lambert Maitland Pluto LNG Anketell Dampier New Desalination Spar Halyard Balla Balla Fe V Ti Sappho Ammonium Nitrate Cape Lambert Dampier Salt Salt Creek Zn Cu Pb Sherlock Bay Cape Preston Whim Creek Cu Zn Pb Spinifex Ridge Barrow I Sino Pellet Spinifex Ridge Mo Cu Devil Creek Gas Woollybutt Radio Hill Pasco Whundo Zn Cu Flinders Shoal Sino/Citic Abydos Panorama – Sulphur Springs Zn Cu Pb Balmoral South Munni Munni Pt Pd Wodgina Wodgina Ta North Star Glacier Valley

Mardie Nasutus South Chervil Coniston Cyrano Novara Nimrod Cadell Australind Daltons Eskdale Van Gogh Saladin Mt Webber Vincent Crest Enfield Ravensworth Stybarrow Corowa Cowle Stickle Outtrim Pyrenees Laverda Scafell Blencathra Skate Onslow Macedon Roller Warramboo Middle Robe Mesas Crosby Coaster Black Pearl Mesa A Leatherback Onslow Salt Mesa J Wheatstone LNG Ashburton North Macedon Gas Nullagine/Millennium Bungaroo Creek Nullagine CID Exmouth Investigator Cape Range Lst Rivoli Pilbara/Flinders Murrays Hill Solomon Solomon East West Pilbara Yannarie Salt Cloud Break Silvergrass Christmas Creek Nammuldi Brockman 2 Roy Hill 1 Manyingee Mt Stuart Rough Range Koodaideri Marillana/Brockman Brockman 4 Paulsens Marandoo Western Turner Syncline Yandi/BHPB Nyidinghu Project labels: Beasley River Western 4 Iron Valley Tom Price PROJECTS OPERATING OR CURRENTLY UNDER DEVELOPMENT WITH AN ACTUAL Mindy Mindy OR ANTICIPATED VALUE OF PRODUCTION GREATER THAN $A10 MILLION ARE SHOWN IN BLUE Railway PROPOSED OR POTENTIAL PROJECTS WITH A CAPITAL EXPENDITURE GREATER THAN Mining Area C Hope Downs 1 $A20 MILLION ARE SHOWN IN RED Rocklea–Hardey PROJECTS UNDER CARE AND MAINTENANCE ARE SHOWN IN PURPLE Rhodes Ridge Wonmunna Hope Downs 4 Turee Syncline Central West Angelas Paraburdoo Eastern Range Giles Mini 23–25 Channar 18 Hashimoto Mt Whaleback Wheelarra 010025 50 75

Kilometres Coobina Cr Sunrise Major Resource Projects — June 2011 Troubadour Kelp Deep Jahal Kuda Tasi Laminaria Corallina INSET A Hill 50 Project labels: Chudditch Balline Grt Laminaria East Krill Elang–Kakatua Tallering Peak Yogi PROJECTS OPERATING OR CURRENTLY UNDER DEVELOPMENT WITH AN ACTUAL Bluff 050kmPort Gregory Grt Buller Hingkip OR ANTICIPATED VALUE OF PRODUCTION GREATER THAN $A10 MILLION ARE SHOWN IN BLUE Bayu–Undan Bilberatha Hill Oakajee Gullewa Au Cu PROPOSED OR POTENTIAL PROJECTS WITH A CAPITAL EXPENDITURE GREATER THAN Golden Grove Cu Zn Pb Geraldton Eradu Pig Iron Minjar – $A20 MILLION ARE SHOWN IN RED Oliver Audacious Narngulu Synthetic Rutile Alinta Wind Farm Mt Mulgine Tenacious Katandra Geraldton Brick Mount Horner Koolanooka/Midwest PROJECTS UNDER CARE AND MAINTENANCE ARE SHOWN IN PURPLE Cash–Maple Jabiru Dongara Corybas Irwin River Challis–Cassini Eremia Mungada Swan Hovea Centauri 1 Karara Puffin Vesta Xyris Apium Koolanooka SouthMagnetite Range Skua Talbot Xyris South Dongara Swallow Tarantula Three Springs Tlc Mt Gibson Swift North Jingemia Extension Hill Padthaway Montara–Bilyara Cliff Head Beharra Springs Crux Prometheus/Rubicon Evandra Beharra Springs North Mt Gibson Tahbilk Petrel Redback South Eneabba Argus Woodada Central West Frigate Tern Coolimba Warro Echuca Shoals Kronos Mimia Cornea Cooljarloo North Badgingarra Wind Farm Ichthys West Moora Chert Emu Downs Wind Farm Torosa Ichthys Prelude Cape Bougainville Blacktip Burnside Cooljarloo Cataby Brecknock Kwinana–Rockingham Yerecoin Calliance Gwydion Alumina refinery Mitchell Plateau Turtle Gingin West Ammonium nitrate Wandoo Bindoon North BP oil refinery Neerabup/NewGen Cement and lime Wesbeam Timber Chandala Synthetic Rutile Chlor alkali Malaga Brick Middle Swan Brick Ord Irrigation Expansion Desalination Caversham Tile Midland Brick Wyndham Fused alumina PERTH Airport Brick Ord Irrigation Fused zirconia Fremantle Armadale Brick Cockatoo Island Sorby Hills Pb Zn Cu LNG Kwinana Bulk G Cardup Brick Irvine Island Koolan Island Lake Argyle Hydro LPG Terminal Keysbrook Pinjarra Al Speewah V Ti Fe Nickel refinery Wagerup Al Huntly Sparks Kln Speewah Fl Power station Binningup Desalination Boddington Au Cu Oobagooma Ridges Sodium cyanide Willowdale Chlor akali Saddleback Point Torment Argyle Titanium pigment Silicon smelter Kemerton Sisd Point Torment Smoke Creek / Venus Zirconia Titanium pigment Worsley Al Bluewaters 1–2 Derby Bunbury Collie Lloyd Browse LNG Precinct Boundary West Terrace Savannah Australind Titanium Pigment Muja Ewington Wespine Timber Collie–Shotts Urea Sundown Ellendale Wesfi Timber Dardanup Premier Blina Copernicus Gwindinup Muja Timber Panton Pt Pd Capel Synthetic Rutile Happy Valley Broome Vasse Tutunup Greenbushes Li Duchess–Paradise Tutunup South Whicher Range Koongie Park Zn Cu Pb Kapok West – Lennard Shelf Pb Zn Ag

SEE INSET B Admiral Bay Zn Pb (inside cover)

Scarborough Brederode Coyote Alaric

Nifty Cu Cookes Creek W Telfer Au Cu MINERAL SYMBOLS Woodie Woodie Mn O'Callaghans W Cu Mesa – Ant Hill Mn Precious mineral Maroochydore Cu Co Yeneena Cu Dmd Lake Auld K Precious metal Kintyre Au (or as shown) Lake Mackay K Nicholas Downs Mn Steel alloy metal Ni (or as shown) Speciality metal Davidson Creek Lake Disappointment K Ti–Zr (or as shown) Robertson Range Base metal Prairie Downs Zn Pb Ag Iron Alumina Bx (or as shown) Cape Cuvier Lake MacLeod Gp Coal and lignite Lake MacLeod Salt Abra Pb Cu Zn Uranium Beyondie Industrial mineral Construction material Fortnum Plutonic Processing plant Doolgunna Cu Au PETROLEUM SYMBOLS Gas field Jack Hills Oil field West Musgrave Wingellina Shark Bay Salt Magellan Pb Jundee–Nimary Oil and gas field Radio–astronomy Meekatharra Wiluna West Wiluna Significant gas discovery Observatory Gabanintha V Ti Fe Lake Way Coburn Hillview Honeymoon Well Processing plant Weld Range Hinkler Well Oil / gas pipeline, operating Burnakura Wilsons– Mt Keith Lake Maitland Gidgee Cliffs Oil / gas pipeline, proposed Big Bell Nowthanna Yeelirrie Bronzewing Great Fingall Barrambie V Ti Fe Cosmos Yakabindie Moolart Well – Duketon INFRASTRUCTURE Lawlers Leinster Agnew Darlot Garden Well Power plant Waterloo Thatcher Soak Radio astronomy SEE Lawlers MgCO3 Marshall Pool INSET A Windimurra V Fe Sinclair Bentley Zn Pb Cu Laverton/Crescent Irrigation / water / desalination Jaguar Zn Cu Pb Windarra Mt Weld Phos Port Mt Forrest King of the Hills Brightstar Cashmere Downs Laverton/Navigator Mikado COMMODITIES Sons of Gwalia Mt Weld REE Cyclone Mt Mason Murrin Murrin / MgCO3 Granny Smith – Wallaby Ag...... Silver Mt Ida GME Murrin Murrin Sunrise Dam Tropicana Al...... Alumina Red October Fortitude Au...... Gold Highway Bx...... Bauxite Lake Giles Jump Up Dam Goongarrie Mulga Rock CBM...... Coal bed methane Windarling Carnegie Scotia Co...... Cobalt Range Paddington South Laverton – Carosue Dam Canegrass Cawse Lindsays Find Cr...... Chromium Mt Jackson Siberia Ponton Carina Frogs Leg Black Swan Cu...... Copper Kundana – Kundana East Superpit Kanowna Belle Dmd...... Diamond White Foil Kalgoorlie Nickel Smelter Koolyanobbing Blair Mt Monger Fe...... Iron Navajo Chief Randalls Aldiss Fl...... Fluorite Coolgardie–Redemption Rawlinna Lst Nepean Carnilya Hill Gp...... Gypsum Edna May Long–Victor Mt Marion Li St Ives Kambalda Nickel Concentrator Grt...... Garnet Marvel Loch Nevoria South Kal Beta–Hunt K...... Potassium Otter–Juan Mt Caudan LanfranchiBald Hill Ta Kln...... Kaolin Collgar Windfarm Wattle Dam Li...... Lithium PERTH Spargoville Trident Bounty Mariners Mt Thirsty LNG...... Liquefied natural gas Central Norseman LPG...... Liquefied petroleum gas Flying Fox Maggie Hays Lst...... Limestone Spotted Quoll Lounge Lizard MgCO3...Magnesite Mn...... Manganese Salmon Gums Ni...... Nickel Pb...... Lead Scaddan Pd...... Palladium Phos...... Phosphate Mt Cattlin Li Ta Ravensthorpe 0400100 200 300 Pt...... Platinum Phillips River – Trilogy Au Cu REE...... Rare earth elements Esperance Sisd...... Silica sand Kilometres Ta...... Tantalum Jangardup South Manjimup Timber Ti...... Titanium Southdown Tlc...... Talc V...... Vanadium Mirambeena Timber W...... Tungsten Albany Wind Farm Albany Zn...... Zinc Zr...... Zirconium