MINERALS and ENERGY Major Development Projects

development projects

MINERALS AND ENERGY major development projects

Ian Haine and commodity analysts, Energy and Minerals Economics Branch • The record number of minerals and energy Total Australian minerals exploration expen- projects that are currently committed to or diture is estimated to have risen by 5 per cent in under construction in Australia will add sig- 2003-04 to $1.82 billion. This increase follows a nifi cantly to the sector’s production and ex- rise of 13 per cent in 2002-03. Among the major port capacity in the short to medium term. commodity categories, petroleum exploration expenditure is estimated to have increased in • In addition, the signifi cant number of large 2003-04, but expenditure for both gold and base scale projects at less advanced planning metals is estimated to have fallen. stages that are under active consideration Petroleum exploration expenditure is esti- is expected to provide the platform for mated to have risen by 6 per cent in 2003-04, to future sectoral growth in the medium term around $1057 million. In real (2003-04 dollar) and beyond. terms, this is higher than the annual average expenditure over the past decade ($981 million) but remains below the high expenditure years of Exploration expenditure 1997-98 and 2000-01 ($1148 million and $1121 It is important to recognise that the ability of million respectively). Australia’s minerals and energy sector to sustain Increases in petroleum exploration expen- its strong recent growth and expand its contribu- diture in the past two years are likely to have tion to national economic performance in the been encouraged, to some extent, by relatively medium and longer terms depends critically on the amount of investment in minerals exploration. Most of the strong growth in the minerals Australian private minerals exploration expenditure In 2003-04 dollars and energy sector of recent years, and most of A the expected growth implicit in ABARE’s list 3.5 Other of planned projects, is underpinned by minerals Base metals 3.0 Gold exploration expenditure of the past decade. Other energy Australian minerals exploration expenditure, 2.5 Petroleum in real terms (2003-04 dollars), for the period 2.0 1980-81 to 2003-04 is shown in fi gure A. The 1.5 2003-04 data are estimates based on actual data from the Australian Bureau of Statistics 1.0 for July–December 2003, combined with data 0.5 from the ABS survey of expected expenditure $b for January–June 2004. 1983 1988 1993 1998 2003 Contact: Ian Haine +61 2 6272 2031; [email protected] -84 -89 -94 -99 -04

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high oil prices since mid-2002. However, the 2003-04. At around $367 million in 2003-04, oil price rise in this period is unlikely to have gold exploration expenditure is less than half been the sole reason for the rise in exploration the level, in real terms, of six years ago. For expenditure. Infrastructure requirements for off- much of the 1990s, gold dominated nonenergy shore petroleum exploration require long term exploration expenditure and in 2002-03 gold planning, and other factors, such as Australia’s still accounted for 56 per cent of the total. relative prospectivity, some recent (but rela- Base metals exploration expenditure is esti- tively small scale) exploration successes and a mated to have fallen by 3 per cent to $138 million longer term view of oil prices, are also expected in 2003-04. This expected decrease is caused by to have had a signifi cant bearing on exploration falls in expenditure on copper and zinc–lead–sil- expenditure decisions. ver more than offsetting a strong rise in expen- Expenditure on gold exploration is estimated diture on nickel. The increase in expenditure on to have fallen by 3 per cent in 2003-04, follow- nickel exploration refl ects the dramatic rise in ing a rise of 14 per cent in 2002-03. A decline global nickel prices, particularly in the fi rst half in Australian dollar denominated gold prices is of 2003-04 and, importantly, a reasonably posi- likely to have been a contributing factor to the tive outlook for Australian dollar denominated expected fall in gold exploration expenditure in nickel prices in the next year or so.

ABARE’s list of major minerals and energy development projects

The full list the gold industry, which typically has a relatively ABARE’s listings of major minerals and energy large number of smaller projects. For gold, the projects expected to be developed over the medium expenditure threshold for inclusion in the table is term are compiled every six months. Information $15 million. contained in the lists spans the mineral resources In general, projects identifi ed are at relatively sector and includes energy and minerals commodi- advanced stages of planning. That is, for new ties projects and minerals processing projects. The projects, stage of planning categories range from information comes predominantly from publicly ‘feasibility study underway’ through to ‘under available sources but, in some cases, is supple- construction’. mented by information direct from companies. Projects are listed by the principal mineral The lists are fully updated to refl ect developments commodity to be produced, under the broad head- in the previous six months. ings: ‘Mining projects – energy’, ‘Mining projects – minerals’ and ‘Minerals processing facilities’. What’s in the list The table includes new greenfi elds projects as well The latest projects list contains information on as expansions of existing projects. 192 projects. Details listed against each project include: Where to get the list • project name Up to December 2001, the lists were released in • proponent company or joint venture conjunction with each June and December issue • location of Australian Commodities. Since June 2002, the • project status complete lists (around 12–14 pages) have been • expected startup date released separately. Commencing in 2003, the lists • additional output capacity have been released around May and October each • capital cost of the project year. The lists are available only as an electronic • additional employment, where available. product on subscription. With one industry exception, ABARE’s listing The list can be purchased from ABARE at: provides details of announced projects for which www.abareonlineshop.com total capital expenditure is expected to exceed enquiries: [email protected] $40 million (in 2002-03 dollars). The exception is or phone +61 2 6272 2010.

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Expenditure on base metals exploration in erals and energy sector, both historically and in 2003-04 was the lowest, in real terms, since the short term. 1987-88 and the third lowest on record. Based on ABS survey data, new capital expen- Apart from the main exploration sectors diture in the mining industry is estimated to have referred to above, two other commodities — coal been around $10.5 billion in 2003-04, signifi - and iron ore — are expected to show signifi cant cantly higher (by 17 per cent) than in 2002-03. In expenditure increases in 2003-04. Spending on real (2003-04 dollar) terms, new capital expen- iron ore exploration is estimated to have risen diture in 2003-04 is estimated to have been the by 39 per cent to $62 million and coal expendi- highest since the record expenditure in 1997-98 ture by 13 per cent to around $88 million. These (fi gure B) and around 43 per cent above the aver- expected increases refl ect a positive outlook for age annual expenditure for the past 23 years. Chinese demand for these commodities. There are strong indications that capital Over the medium term, exploration expendi- expenditure on mining will remain strong next ture in each of the main exploration sectors is year. Based on industry intentions canvassed expected to be infl uenced by a different set of in the March quarter 2004, ABS data indicate factors. that capital expenditure on mining in 2004-05 In the petroleum sector, oil prices over the may again be around $10.5 billion. The scale medium term will be a key factor in determining of this expenditure and its order of increase is future exploration activity and expenditure. For consistent with the development trends shown in gold, factors such as the US dollar/Australian ABARE’s April 2004 list of major minerals and dollar exchange rate and movements in global energy projects (see fi gure H). equities markets and their infl uence on the out- Capital expenditure in the metal products look for gold prices will be important. sector, which includes the minerals processing In the base metals sector, the price outlook activities covered in ABARE’s projects list, is will clearly be important, as demonstrated by estimated to be around $2.56 billion in 2003- the recent rise in nickel exploration expenditure. 04, 18 per cent above 2002-03 expenditure. Apart from nickel, a relatively positive outlook Surveyed industry intentions suggest that metal for copper, lead and zinc prices over the next products expenditure could rise by 7 per cent in couple of years may provide some impetus for 2004-05 to around $2.74 billion. In real terms, exploration expenditure increases, although estimated expenditure in 2004-05 would be expenditure decisions may also be affected by about 29 per cent above the 23 year annual aver- movements in the US dollar/Australian dol- age of $2.07 billion (in 2003-04 dollars). lar exchange rate. Other important factors are expected to be: the apparent trend toward company rationalisation of exploration capacities New capital expenditure (not only in Australia but also globally); expec- B In 2003-04 dollars tations of the future strength (or otherwise) of Chinese demand for base metals; assessments 14 Metal products Mining of the development potential of several known 12 (but as yet undeveloped) base metals deposits in Australia; and Australia’s relative attractiveness 10 for exploration. 8

6 Capital expenditure 4 Data from the ABS surveys of new capital 2 expenditure in the mining and metal products $b industries give an indication, in aggregate terms, 1980 1984 1988 1992 1996 2000 2004 of the pace and scale of development in the min- -81 -85 -89 -93 -97 -01 -05

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If the expenditure intentions for both the min- Completed projects ing and metal products sectors are realised, total C capital expenditure in the mineral resources sec- Total capital tor could rise by around 1 per cent in real terms cost of projects Average capital cost of projects in 2004-05. 6 300 Looking beyond the short term, there is some evidence to suggest that there is potential for further growth in resource sector capital investment. 4 200 This assessment is based on the observation that there are a signiﬁ cant number of advanced proj- 2 100 ects in ABARE’s project list (particularly a number of high cost petroleum developments), and that there now exists a number of large scale, but $b $m less advanced projects, that may be developed in JDJDJDJDJDAprilOct April a longer timeframe. 1998 1999 2000 2001 2002 2003 2004

Recently commissioned projects in any other similar period since the six months In the six months ended April 2004, thirteen to December 1999 when there were sixteen major minerals and energy projects, with a com- completions (table 2 and ﬁ gure C). Furthermore, bined capital expenditure of $4.96 billion, were the average value of projects completed in the completed. Summary details of these are shown period to April 2004 ($381 million, in nominal in table 1. terms) exceeds that of any other period in the The project completion rate in the six month past six years. Looking ahead, ABARE’s project period to the end of April 2004 is higher than list indicates that the rate of project completions

Major mineral resource developments – projects completed, November 2003 to 1 April 2004

Capital Commodity Project Location Company expenditure

$m Mining – energy projects Black coal Mount Arthur North New South Wales BHP Billiton 645 Moorvale Queensland Macarthur Coal 67

Petroleum Bayu/Undan Gas Recycle Timor Sea ConocoPhillips 2 500 Kambalda/Esperance pipeline Western Australia Esperance Pipeline Co 45 SEA gas pipeline Victoria to TXU/Origin/Int’al Power 500 South Australia Mining – minerals projects Gold Siberia Western Australia Siberia Mining na Iron ore Eastern Ranges Western Australia Rio Tinto/Baosteel 105 Koolyanobbing Western Australia Portman 20 PACE project Western Australia BHP Billiton 647 Yandi expansion Western Australia BHP Billiton 42 Yandicoogina expansion Western Australia Rio Tinto 200

Lead/zinc Endeavour mine upgrade New South Wales CBH Resources 10

Minerals processing facilities Alumina QAL reﬁ nery upgrade Queensland Queensland Alumina 175 Total capital expenditure 4 956

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Completed projects, June 1998 to the gas shortages caused by an explosion at 2 April 2004 the Moomba gas processing facility in South Australia on New Year’s Day. The Kambalda to Capital cost of projects Esperance pipeline — an extension of the Pil- Number bara to Goldfi elds pipeline — was completed at of projects Total Average a capital cost of $45 million. no. $m $m Refl ecting strong demand for iron ore from Six months ended China, fi ve Western Australian iron ore and June 1998 3 415 138 December 1998 18 3 500 194 infrastructure projects were completed in the six June 1999 19 6 500 342 months to April. The largest of these was BHP December 1999 16 4 300 269 Billiton’s $647 million PACE (products and June 2000 9 1 800 200 capacity expansion) project involving expan- December 2000 9 1 700 189 sions to port and rail facilities. The development June 2001 5 282 56 December 2001 5 262 52 will lift shipping capacity at Port Hedland to 100 June 2002 10 1 082 108 million tonnes a year from mid-2004. BHP Bil- December 2002 10 2 110 211 liton also commissioned a $42 million, 3 million Four months ended tonnes a year expansion of its Yandi mine. In the April 2003 4 400 100 same region of the Pilbara, Rio Tinto completed Six months ended its $200 million Yandicoogina mine and infra- October 2003 6 937 156 structure expansion, lifting production capacity April 2004 13 4 956 381 by 4 million tonnes a year. One new mine, Rio Total 127 28 244 222 Tinto/Baosteel’s $105 million Eastern Ranges development, was completed in April. This operation will increase production capacity by is likely to accelerate, with another 27 major 10 million tonnes a year. Further south, Port- projects scheduled for completion in the remain- man Mining completed a $20 million, 2 million der of 2004. tonne, expansion of its Koolyanobbing mine. Of the major projects completed in the six Two new coal mines were brought into pro- months ended April 2004, the largest in terms duction late in 2003. BHP Billiton’s Mount of capital cost was the ConocoPhillips’ led Arthur North mine near Muswellbrook was Bayu/Undan Gas Recycle project in the Timor developed at a capital cost of $645 million and Gap Zone of Cooperation. The project was will produce around 12 million tonnes a year of developed at a capital cost of $2.5 billion and, thermal coal by 2006. In Queensland, Macarthur at full capacity, will produce 115 000 barrels a Coal’s $67 million Moorvale mine, near Coppa- day of condensate and LPG for export. The fi rst bella, is expected to produce around 1.6 million shipment of condensate was made on 31 March. tonnes a year of PCI coal. The operation involves the stripping of natural In Gladstone, Queensland Alumina com- gas liquids from the fi eld’s gas stream and rein- pleted its $175 million QAL refi nery upgrade. jecting the residual gas via dedicated wells for This development will improve the plant’s effi - future use in Bayu/Undan’s second stage devel- ciency and environmental performance but will opment (LNG production in Darwin) scheduled provide no increase in output capacity. to commence in 2006. Two smaller developments — Siberia Min- Two other petroleum projects, both pipeline ing’s Siberia gold mine and CBH Resources’ developments, were completed in the six months Endeavor zinc and lead mine upgrade — were to April. The $500 million, 690 kilometre, SEA also commissioned in the six months to April. Gas pipeline from Victoria to South Australia (Having come on stream, the above projects was commissioned just in time to alleviate no longer appear in ABARE’s project list.)

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Minerals and energy projects billion) of the estimated capital cost of $21.4 billion for all advanced projects (table 3). Three large petroleum developments account for over Advanced projects 60 per cent of the total value of energy projects. At the end of April 2004, there were 62 projects The largest of these is ConocoPhillips’ $3 bil- at advanced stages of development included in lion, 3.5 million tonnes capacity Darwin LNG ABARE’s project list — that is, projects that plant, scheduled to be completed in 2006 and were either committed or under construction. The which will use ‘recycled’ Bayu/Undan gas as location of these projects is shown in fi gure D. feed. The recycled gas is natural gas that has The announced capital expenditure of these ad- been stripped of its liquids (condensate and vanced projects sums to $21.4 billion (table 3). LPG) during the fi rst phase of the Bayu/Undan However, it should be borne in mind that even project (the recently completed ‘gas recycle’ projects that have reached the committed stage project) and reinjected into the reservoir. The may be deferred, modifi ed or even cancelled, if two other major petroleum projects are both economic or competitive circumstances change Woodside operated: the $2.5 billion North West suffi ciently. Shelf fourth LNG train, aiming for completion The 62 advanced projects as at April 2004 in mid-2004; and the Enfi eld oilfi eld scheduled indicate continued expansion across most of to be developed by 2006 at a capital cost of $1.48 the minerals and energy industry spectrum. billion. The twelve coal projects listed have a However, in terms of capital expenditure, there combined capital cost of $2.4 billion. is a signifi cant weighting toward petroleum and In the past six months there has been a con- coal projects. siderable increase in the number and value of Proposed energy developments account for minerals mining projects currently committed. just under 40 per cent (24) of the 62 advanced At the end of April 2004, there were 29 advanced projects but account for more than half (or $11.1 minerals mining projects valued at $6.9 billion,

Advanced minerals and energy projects D April 2004 Capital expenditure $0 –100m $101–500m Darwin LNG plant Weipa $501–1000m (bauxite) Darwin >$1000m Processing Mine/ facility platform Mutineer/Exeter (petroleum) Whim Creek (copper) Sally Malay (nickel) Mt Garnet (zinc) North West Shelf Telfer Ellendale (diamonds) Yabulu refinery (nickel) 4th train (LNG) gas Charters Towers (gold) Moranbah (gas) Zinc ferrite plant (zinc) Burrup Fertilisers pipeline (ammonia plant) Telfer (gold) Cannington North Queensland gas pipeline (lead/zinc) Broadmeadow (coal) Nifty (copper) Enfield (oil) Eaglefield (coal) Blackwater (coal handling Yandicoogina (iron ore) Grasstrees (coal) and processing) Paulsens (gold) Mining Area C (iron ore) Curragh North (coal) Comalco refinery (alumina) West Angelas (iron ore) Rolleston (coal) Magellan (lead) Perseverence (nickel) Cracow Lytton refinery (petroleum) (gold) Brisbane Sunrise Dam (gold) Mt Gibson (iron ore) Frog’s Leg x2 (gold) Dartbrook extension (coal) St Ives (gold) Ashton (coal) Kurri Kurri (aluminium) Perth Tritton (copper) Kwinana refinery (diesel) Maggie Hays (nickel) Tomago (aluminium) HIsmelt (pig iron) Northparkes (copper) Mandalong (coal) Pinjarra refinery (alumina) Adelaide Cowal (gold) Sydney Kurnell refinery (petroleum) Worsley refinery (alumina) Ravensthorpe Canberra (nickel) Stawell (gold) Dendrobium (coal) Melbourne Tahmoor North (coal) Bendigo (gold) Camden (gas) Fosterville (gold) Yallourn (coal) Minerva (petroleum) BassGas (petroleum) Hobart

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compared with 22 projects valued at $3.8 billion Such projects include a capacity expansion at at the end of October 2003. In terms of project MPI Mines’ Black/Silver Swan mining com- numbers, the largest increase is in gold, where plex and new operations by Mincor resources there are now twelve projects either committed at North Miitel, Mariners and Redross, all cur- or under construction, double the number of six rently under construction in Western Australia. months ago. Each of these projects, together with several oth- Three ‘billion dollar’ projects, all in Western ers that are less advanced, will make a relatively Australia, make up over 50 per cent of the total small contribution to nickel output as most plan value of advanced minerals mining projects to have annual capacity of less than 5000 tonnes — Newcrest’s $1.2 billion Telfer gold mine and some currently expect an operating life of redevelopment, expected to be completed soon less than fi ve years. However, if they proceed to (around mid-2004); Rio Tinto’s $1.25 billion commissioning, their small scale should allow Yandicoogina iron ore mine expansion, sched- them all to commence operations in 2004 or uled for completion in 2005; and BHP Billiton’s 2005 and in combination they will make a sig- $1.4 billion greenfi elds Ravensthorpe nickel nifi cant contribution to Australian nickel pro- mine, expected to be commissioned in 2007. In duction and exports. the case of iron ore and nickel, the impetus for At the end of April 2004, there were eight development has come mainly from China’s bur- advanced minerals processing projects, a signifi - geoning demand for materials to meet its steel cant increase on the fi ve committed at the end of making requirements. October 2003. The largest of these — Comalco’s However, nickel is one commodity where the $1.5 billion alumina refi nery project at Glad- April 2004 list of advanced projects does not stone — is expected to be commissioned toward fully refl ect the degree of development activ- the end of this year. Additional processing proj- ity currently taking place. The strong gains in ects committed since October 2003 include two nickel prices over the past year have encour- more alumina projects: Alcoa’s $440 million aged a number of expansions, reopenings and Pinjarra refi nery upgrade; and BHP Billiton’s new nickel mining projects that are not covered $265 million Worsley refi nery expansion. by the major projects list. They are not covered Together, these three alumina projects will add because, in almost all cases, the capital cost around 2.25 million tonnes of additional alu- of individual nickel projects falls well below mina production capacity, principally to meet ABARE’s minimum capital expenditure cutoff strong Chinese demand. value of $40 million for inclusion in the list.

Committed projects, April 2004 — number and estimated capital cost, by state 3

Minerals Energy projects Mining projects processing Total number cost number cost number cost number cost

no. $m no. $m no. $m no. $m New South Wales 7 1 244 3 464 2 240 12 1 948 Victoria 2 380 3 342 0 0 5 722 Queensland 8 1 374 5 629 3 2 110 16 4 113 Western Australia 5 4 634 19 5 472 3 1 105 27 11 211 South Australia 0 0 0 0 0 0 0 0 Tasmania 1 450 0 0 0 0 1 450 Northern Territory 1 3 000 0 0 0 0 1 3 000 Australia 24 11 082 30 6 907 8 3 455 62 21 444

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Australian minerals and energy projects Number of committed projects E Committed capital expenditure over the medium term G

$21.4 billion 60 Minerals processing Other 12% Minerals 50 Iron ore 7% Petroleum 42% Energy 40

Nickel 8% 30 20

Gold 11% 10

0 Alumina 10% Coal 10% 19951996 1997 1998 1999 2000 2001 2002 2002 2003 2003 2004 June Dec Apr Oct Apr

Another notable processing project recently (62) is a record, being one more than the num- committed to is BHP Billiton’s $560 million ber recorded in 1998 (fi gure G). However, the Yabulu nickel refi nery expansion, near Towns- total value of advanced projects in April 2004 ville. This project is linked to BHP Billiton’s (in 2004 dollars) is slightly less than the record Ravensthorpe nickel mine project in Western value in 1998 (fi gure H). Australia, referred to above. When completed, The real average value of advanced projects the expanded refi nery will process an intermedi- at the end of April 2004 ($351 million) is just a ate combined nickel and cobalt product produced little below the average for all years since 1995 at Raventhorpe and shipped out of Esperance. ($354 million) (fi gure I). Figure E shows a breakdown of proposed capital expenditure on advanced projects, by major Less advanced projects commodity grouping. Figure F shows the esti- Projects in the less advanced planning category mated total capital expenditure on a state basis. are either still undergoing feasibility study (in The number of advanced projects now sched- some selected cases, prefeasibility study), or no uled to be completed within the next fi ve years defi nite decision has been taken on development

Value of committed projects Value of committed projects F by state, April 2004 H In 2004 dollars $21.4 billion Minerals processing 20 Minerals Northern New South Wales 9% Territory 14% Energy Victoria 3% 15 Tasmania 2% Queensland 19% 10

$b Western Australia 53% 19951996 1997 1998 1999 2000 2001 2002 2003 2004

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Average value of committed projects following the completion of a feasibility study. I In 2004 dollars Some of these projects cannot proceed for several years and may face changed economic or competitive conditions, or may be targeting the 400 same emerging market opportunity, necessitat- ing rescheduling. In addition, securing ﬁ nance 300 for project development — even for high quality projects that have a high probability of success 200 — can present problems, particularly in periods when there is perceived to be excess global sup- 100 ply and/or an uncertain demand outlook. However, despite the uncertainty that attaches $m to projects at these earlier stages of consideration, 19951996 1997 1998 1999 2000 2001 2002 2003 2004 they provide a useful indication of the nature and

Number of less advanced projects, April 2004 4

Potential capital NSW Vic Qld WA SA Tas NT Aust expend no. no. no. no. no. no. no. no. $m Mining – energy projects Black coal 9 0 15 0 0 0 0 24 3 784 Petroleum 0 4 2 8 1 0 3 18 34 980 Uranium 0 0 0 0 1 0 0 1 30 Subtotal 9 4 17 8 2 0 3 43 38 794

Mining – minerals projects Cobalt 0 0 0 0 0 0 1 1 192 Copper 0 0 4 1 1 0 0 6 2 595 Gold 2 1 0 5 1 0 2 11 1 019 Iron ore 0 0 0 6 0 0 0 6 7 015 Lead-zinc-silver 3 0 3 1 0 1 1 9 1 202 Mineral sands 4 2 1 3 1 0 0 11 832 Nickel 0 0 1 5 0 1 0 7 1 275 Rare earths 0 0 0 2 0 0 0 2 115 Tantalum 0 0 0 2 0 0 0 2 na Other commodities 1 0 3 8 0 0 0 12 2 159 Subtotal 10 3 12 33 3 2 4 67 16 404

Minerals processing Alumina 0 0 2 1 0 0 1 4 3 000 Aluminium 3 0 2 0 0 0 0 5 4 800 Crude iron and steel 3 0 0 0 0 0 0 3 1 200 Ferrochrome 0 0 0 1 0 0 0 1 50 Magnesium 1 1 0 0 1 1 0 4 3 148 Titanium minerals 1 0 0 2 0 0 0 3 720 Subtotal 8 1 4 4 1 1 1 20 12 918 Total 27 8 33 45 6 3 8 130 68 116

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extent of the platform for future development of Projects added to list the Australian minerals and energy sector. J Six months to April 2004 Total = 33 Of the 192 projects in total in ABARE’s April 2004 project list, around 68 per cent (130 Coal projects), remain uncommitted. Table 4 contains Petroleum a summary of the numbers and commodity distribution of the 130 uncommitted projects Gold together with their potential capital expenditure. Iron ore The potential capital expenditure data should be used as a rough guide only. This is for two main Nickel reasons: fi rst, many of the projects included Alumina under the one commodity heading are effec- tively competing with one another and in most Other cases market conditions will preclude some 0246810 from proceeding, at least in the timeframe speci- fi ed; second, capital expenditure data for many early stage projects are either not yet available or, if available, will change signifi cantly if they Projects new to ABARE’s list do proceed to development. There are 33 signifi cant projects at less advanced However, most of the projects that will ulti- planning stages that are new to ABARE’s list mately proceed to development in the medium since October 2003. This is a relatively high term are included in ABARE’s current list of 130 number compared with earlier periods and is less advanced projects. one indication of renewed investment interest in Some of the more notable large scale projects the mineral resources sector. Figure J provides a in ABARE’s April 2004 list that are still undergo- summary of numbers of newly listed projects by ing feasibility studies include: Chevron Texaco’s commodity category. proposed $11 billion Gorgon LNG development One of the more signifi cant projects new on Barrow Island; WMC Resources’ proposal to to the list is BHP Billiton’s proposed iron ore further expand its Olympic Dam mine, to more capacity expansion project in the Pilbara, which than double its current output capacity, at a capi- could increase the company’s overall iron ore tal cost of $2–3 billion; and Alcan’s $1.5 billion output capacity by 35–40 million tonnes a year proposal to expand its Gove alumina refi nery in by 2005-06. This project, together with several the Northern Territory. A commitment to expand other proposed iron ore developments that are the Gove refi nery is expected to also trigger a also new to the list, refl ects the increased interest commitment to develop the Blacktip natural gas in meeting China’s burgeoning demand for iron discovery and to build a 1000 kilometre pipe- ore as its steel industry expands rapidly. line to supply Blacktip gas to Gove — projects expected to involve additional capital expenditure of around $1 billion.

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Note: Projects that are under construction or committed are shown in the blue shaded areas. Less advanced projects are shown in the yellow shaded areas.

Mining projects – energy a Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Black coal New South Wales mines Ashton White 12 km NW New project, mid-2004 4 Mt $200m 200 C underground and Industries/ of Singleton under construction coking and 140 O opencut Itochu thermal

Dartbrook Anglo Coal 10 km NW Expansion, mid-2004 5 Mt $55m 100 C extension Australia of Muswell- under construction thermal (Kayuga project) brook

Dendrobium BHP Billiton Kemira New project, mid-2005 3.6 Mt salable US$170m 170 O underground Valley, W of under construction coking (A$235m) Wollongong

Mandalong Centennial 35 km SW Expansion early 2005 4.5 Mt $219m 180 C underground Coal of Newcastle under construction thermal 150 O longwall

Tahmoor North Austral Coal near Expansion, mid-2004 1.6 Mt $135m 90 C underground Wollongong under construction longwall

Airly Centennial 42 km NW New project, na 1.0 Mt $12m 80–100 C Mountain Coal of Lithgow feasibility study thermal 40 O underground completed

Anvil Hill Centennial 20 km SW of New project, 2008 9 Mt na 199 O opencut Coal Muswell- feasibility study thermal brook under way

Glendell Xstrata 17 km NW New project, na 4 Mt $123m 85 O opencut of Singleton feasibility study coking and completed. thermal On hold

Maules Coal and 20 km NE New project, na 6.5 Mt $450m 300 O Creek Allied of Boggabri mining lease thermal opencut (Rio Tinto) granted. On hold over medium term

Mt Pleasant Coal and 5 km W of New project, 2005-06 7 Mt $310m 250 C opencut Allied Muswell- development thermal 330 O (Rio Tinto) brook consent and granted coking

Saddler's Creek Anglo Coal 15 km SW of New project, na 4 Mt $128m 205 O underground and Australia Muswell- prefeasibility thermal opencut brook study and under way coking

Wambo Excel Coal/ 16 km W of Expansion, late 2004 8 Mt $280m 370 O opencut and Sumitomo Singleton development (phase 1) thermal underground consent and granted coking

Wilpinjong Excel Coal 40 km NE of New project, 2007 5 Mt $156m na opencout Mudgee feasibility study thermal under way

Wyong BHP Billiton NW of Wyong New project, na 3.5 Mt $300m 250 O underground feasibility study thermal longwall under way Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Black coal Queensland mines Blackwater coal BHP Billiton Blackwater, W New project, late 2005 Nil (efficiency $234m 200 C handling and Mitsubishi of Rockhampton committed measure) processing facility Alliance (BMA)

Broadmeadow BHP Billiton near New project, late 2005 3.6 Mt $102m 90 O underground Mitsubishi Moranbah under construction hard coking longwall Alliance (BMA)

Curragh Wesfarmers 200 km W of Expansion, 2005 1.5 Mt $160m na North Rockhampton committed coking and thermal

Eaglefield Peabody 30 km N of New project, na 1 Mt $100–150m na opencut Energy Moranbah committed hard coking

Grasstree Anglo Coal German New project, 2006 5 Mt $250m 200 O underground Australia Creek under construction hard coking longwall area

Rolleston Xstrata/ 100 km S of New project, 2005 8 Mt by $291m 200 C opencut Sumitomo/ Emerald committed 2008 143 O Itochu thermal

BMA coal BHP Billiton (several Expansion 2005 5 Mt na na expansion Mitsubishi locations) (debottlenecking) coking project Alliance (BMA) feasibility study under way

Clermont Rio Tinto/ 11 km N of New project, 2008 10 Mt $400m 300 O opencut Mitsubishi Clermont prefeasibility study completed

Dawson Anglo Coal 160 km SW New project, na 5 Mt $300m 200 O opencut Australia of Rock- mining lease hampton granted. On hold over medium term

Grosvenor Anglo Coal N of New project, na 5 Mt $500m 250 O underground Australia Moranbah prefeasibility study hard coking completed

Hail Creek Rio Tinto/ 80 km WSW of Expansion, na 2.5 Mt na na Nippon Steel/ Mackay feasibility study coking Marubeni/ under way Sumisho

Kogan Creek C S Energy 40 km NW of New project, 2006 2.5 Mt na 60 O opencut Dalby feasibility study thermal completed

Lake Lyndsay Anglo Coal near German New project, 2006 na na na opencut Australia Creek, feasibility study (coking and PCI) central Qld under way

Minerva Felix Resources/ 40 km S of New project, mid-2005 2.5 Mt PCI $60m na opencut Nissho Iwai Emerald feasibility study and thermal under way

Monto coal Macarthur 120 km S of New project, na 1 Mt $35m na mine (stage 1) Coal Gladstone under review thermal

Moura mine Anglo Coal 120 km SW of Expansion, na 2 Mt $140m nil expansion Australia Rockhampton feasibility study under way Suttor Creek Xstrata 13 km W of New project, 2007 3 Mt na na (replacement for Glenden mothballed Newlands)

Theodore Anglo Coal 140 km SW of New project, na 5 Mt $240m 280 O opencut Australia Rockhampton mining lease granted

Togarah Xstrata 45 km SW of New project, na 4.0–5.0 Mt $350m 200 O North Blackwater feasibility study longwall under way

Vermont Bowen Basin 15 km NE of New project, na 2.5 Mt na na opencut Coal Dysart environmental coking and PCI impact study under way

Wandoan Xstrata 60 km N New project, 2006 3 Mt initially, na na opencut of Miles prefeasibility up to 10 Mt stage by 2011

For further information contact: Gerard Burg + 61 2 6272 2052 Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Brown coal Victoria Yallourn Coalfield Yallourn Latrobe New project,2005 na $150m 150 C Development Energy Valley under construction 250 O Project

For further information contact: Gerard Burg + 61 2 6272 2052

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Petroleum BassGas project Origin/Australia Bass Strait, New project, late 2004 20 PJ pa natural $450m 200 C (Yolla gas/LPG/ Worldwide Tas under construction gas; 20 O condensate Exploration/ 67 ktpa LPG; field) CalEnergy/ 2.5 kbd Santos condensate

Camden Gas Sydney Gas Camden, NSW New project, 2005-06 14.5 PJ pa $150m 65 C Project (coal seam committed methane) Stages 2&3

Darwin LNG plant ConocoPhillips/ Point Wickham, New project, 2006 3.5 Mt LNG $3b 1200 C (based on ENI/Inpex/ near Darwin, NT under construction (includes 100 O Bayu/Undan gas) Santos/Tokyo pipeline) Gas/TEPCO

Enfield Woodside 50 km N of New project, late 2006 100 kbd $1.48b 100–150 O oil project Energy/Mitsui Exmouth, committed WA

Kurnell and Caltex Sydney and Redevelopment, 2005 nil $250m 600 C Lytton refinery Brisbane committed upgrades

Kwinana refinery BP Kwinana, Redevelopment, 2005 nil $60m na clean diesel WA committed project

Minerva BHP Otway New project, late 2004 150 TJ per day US$167m 220 C offshore gas Petroleum/ Basin, Vic under construction gas; 600 bd (A$230m) 20 O field Santos condensate

Moranbah CH4/ Moranbah, Qld New project, early 2005 13 PJ pa $62m na gas project (coal BHP Billiton under construction seam methane)

Mutineer/Exeter Santos/ Carnarvon New project, early 2005 100 kbd $480m 80 O oilfield Kufpec/Nippon Basin, WA committed Oil/Woodside Energy

North Queensland Enertrade Moranbah to New project, mid-2004 20 PJ pa $150m na Gas Pipeline Townsville, Qld under construction (of coal seam Project methane)

North West Woodside North West Expansion, LNG by 4.2 Mt LNG $2.5b 2000 C Shelf project Energy Shelf, WA under construction mid-2004 (incl second 70 O extension trunkline) (fourth train)

Telfer gas GasNet Port Hedland New project, mid-2004 na $114m na pipeline Australia to Telfer, WA under construction Blacktip Woodside/ Offshore New project, 2007 40 PJ pa gas $1b na gas discovery ENI Bonaparte Basin, feasibility study 1.7 mmbbl (incl pipeline) WA under way. condensate

Casino Santos/AWE/ Offshore New project, early 2006 na $200m na gas discovery Mitsui Otway Basin, FEED studies (293 PJ over Vic under way 12 years)

Cliff Head Roc Oil/AWE/ Offshore New project, late 2005 10–20 kbd $140m na oil project Wandoo/ Perth Basin, feasibility Voyager Energy/ WA study completed. Itochu FEED under way

Dimethyl Ether Japan DME Burrup New project, late 2006 1.7 Mt DME $1.1b 1000 C Project Peninsula, feasibility study 150 O WA under way. Location under review

Gas to liquid SASOL/ Barrow New project, na 45 kbd diesel $2.0b 2500 C fuels plant Chevron JV Island, feasibility study 7.3 kbd naptha (stage 1) 200 O WA under way and LPG

Geographe/ Woodside Otway Basin, New project, mid-2006 60 PJ pa $1b na Thylacine gas Energy/Origin/ Vic feasibility study 950 kbpa discoveries Benaris/ nearing condensate CalEnergy completion 125 ktpa LPG

Gorgon Chevron Barrow New project, 2008 10 Mt LNG $11b 2900 C LNG Texaco/Shell/ Island, feasibility study 300 TJ/day 600 O ExxonMobil WA under way natural gas

Hazelwood GTL Energy/ Latrobe New project, 2008 10 kbd diesel $500m na brown coal to International Valley, Vic feasibility study and naptha diesel project Power under way

Hot Fractured Geodynamics Cooper Basin, New project, 2006-07 na na na Rock geothermal SA feasibility study project under way

John Brookes Apache Energy/ Offshore New project, mid-2005 20 mcfpd $170m na gas discovery Santos Carnarvon feasibility study Basin, WA nearing completion

Liquigaz GTL Resources Burrup New project, 2006 1 Mt $770m 600 C methanol Peninsula, feasibility study 85 O plant WA completed North West Woodside North West Expansion, 2008 4.2 Mt LNG $1.6b na Shelf project Energy Shelf, WA feasibility study extension under way (fifth train)

PNG–Qld Exxon Mobil/ PNG to Qld New project, 2007-08 300 PJ pa $1.9b 5100 C gas pipeline Oil Search feasibility study (Australian 40 O completed component)

Stuart oil Queensland Gladstone, New project, na 14.8 kbd $600m 2300 C shale plant Energy Qld on hold. 130 O (stage 2) Resources

Sunrise Gas Woodside Timor Sea, New project, 2010 5.3 Mt LNG $5b 1000 C Project Energy/ 500 km feasibility study 100 O ConocoPhillips/ NW of under way Shell/Osaka Gas Darwin, NT

Tassie Shoal Gastech Systems Timor Sea, New project, 2010 2.5 Mt LNG na na LNG (Methanol 275 km feasibility study project Australia) NW of under way Darwin, NT

Tassie Shoal Methanol Timor Sea, New project, 2008 3.5 Mt $2b na methanol Australia/ 275 km FEED to methanol project Air Products NW of commence and Chemicals Darwin, NT late 2004

Victorian power Australian Latrobe Valley, New project, 2008 52.6 kbd $6b na and liquids Power and Vic feasibility study clean diesel; project Energy Ltd under way 1060 MW electricity

For further information contact: Gerard Burg + 61 2 6272 2052

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Uranium Honeymoon Southern 420 km NE New project, 2004 0.75–1.0 kt $30m na C Cross of feasibility study U3O8 40 O Resources Adelaide, completed. Mining SA lease granted

For further information contact: Ian Haine + 61 2 6272 2031

Mining projects – minerals a Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Cobalt Browns Compass near New project, na 1.2 kt Co US$140m na base metal Resources/ Batchelor, feasibility cathode (A$192m) project Guardian NT study 40 kt Pb bullion Resources suspended 4.5 kt Cu cathode 0.85 kt Ni hydroxide

For further information contact: Ian Haine + 61 2 6272 2031

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Copper Nifty Aditya Birla Pilbara Expansion, 2005 60 kt Cu $70m 160 C sulphide Group region, under construction in concen- 90 O resource WA trates or SX/EW Cu cathode

Northparkes Rio Tinto near Parkes, Expansion, 2004 no increase – $155m na expansion NSW under construction replacement (lift 2) for lift 1

Tritton Tritton 17 km W of New project, late 2004 24 kt Cu $39m na C Resources Girilambone, under construction in concen- 120 O (Straits) NSW trates

Whim Creek Straits 150 km E of New project, late 2004 16 kt Cu $23m na Resources Karratha, WA under construction cathode Cloncurry Exco Resources near Cloncurry, New project, mid-2005 11 kt Cu na na copper projects Qld feasibility study in concen- under way trates

Lady Annie Buka 140 km NNW of New project, na 13 kt Cu $30m na Minerals Mt isa, Qld prefeasibility cathode study completed

Maroochy- Aditya Birla 60 km S of New project, na 30 kt Cu na na dore Group Telfer, WA feasibility study cathode under way

Olympic WMC Roxby Expansion, 2009 365 kt Cu $2–$3 billion na Dam Downs, prefeasibility expansion SA study under way

Roseby copper Universal/ 60 km NW of New project, 2005 25 kt Cu $40m na project Bolnisi Cloncurry, Qld feasibility study in concen- nearing trates, or completion cathode

White Range Matrix 35 km S of New project, mid-2005 15 kt Cu $25m na Metals Cloncurry, Qld feasibility study cathode nearing completion

For further information contact: Will Mollard + 61 2 6272 2087

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Gold Bendigo Bendigo near Bendigo, New project, 2005 77 000 – $215m 70 C Mining Vic committed 185 000 oz initially; 200 O 570 000 oz ultimately

Charters Towers Citigold Charters Towers, New project, late 2004 250 000 oz $150m 286 O Corporation Qld under construction

Cowal Barrick Gold near West New project, early 2006 220 000 – $270m 350 C Wyalong, under construction 235 000 oz 200 O NSW

Cracow Newcrest/ near Cracow, New project, late 2004 120 000 oz Au $89m na Sedimentary Qld under construction 60 000 oz Ag Holdings

Fosterville Perseverance near New project, early 2005 110 000 oz $117m na Fosterville, under construction Vic

Frog's Leg Dioro Exploration near Kalgoorlie, New project, mid-2004 60 000 oz $13m na opencut WA under construction

Frog's Leg Dioro Exploration WA New project, 2006 60 000 oz na na underground committed

Paulsens NuStar Mining WA New project, late 2004 100 000 oz $33m na (Taipan) committed

Stawell MPI Mines near Stawell, Expansion, late 2004 30 000 oz $10m na expansion Vic committed (Golden Gift)

St Ives Gold Fields Lake Lefroy Expansion, na 50 000 oz $125m na Australasia region, WA committed

Sunrise Dam AngloGold WA Underground Progress- na $87m na underground development, ively to development committed (part of 2006 study into feas of full scale underground dev)

Telfer Newcrest 400 km ESE of Redevelopment, mid-2004 770 000 oz Au $1.2b 1200 (peak) C redevelopment Port Hedland, under construction 27.8 kt Cu 620 O WA Ballarat Ballarat Ballarat, New project, 2006 200 000 oz $65m 180 O Goldfields Vic feasibility study under way

Boddington Newmont/ SE of Pinjarra, Redevelopment, 2007 600 000 oz Au $735m 500 C (Wandoo) Newcrest/ WA feasibility study 22.5 kt Cu 350 O Anglogold being updated

Coyote Tanami Gold NT New project, early 2005 75 000– na na feasibility study 90 000 oz under way

Gossan Hill Gindalbie Gold/ 500 km NE of New project, 2005 na na na Newmont Perth, WA feasibility study completed

Gwalia Sons of WA Expansion na 150 000– $150m na Deeps Gwalia underground, 200 000 oz feasibility study ongoing

Peak Hill Alkane 40 km N of New project, na na na na sulphide Parkes, NSW feasibility study project under way

Sunrise Dam AngloGold WA Expansion, na na na na underground underground expansion feasibility study under way

Tomingley Alkane 52 km N of New project, na 60 000– $23m 100 C (Wyoming) Parkes, NSW prefeasibility 70 000 oz 45 O gold project study nearing completion

Tom's Gully Renison near Darwin, New project, na 35 000– na na Consolidated NT feasibility study 40 000 oz Mines under way

Tunkillia Helix Gawler Craton, New project, 2005 70 000 oz na na Resources SA feasibility study nearing completion

Westonia Westonia Mines Westonia, Reopening, mid-2005 90 000 oz $46m na WA feasibility study completed

For further information contact: Will Mollard + 61 2 6272 2087 Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Iron ore Mining Area C BHP Billiton Pilbara, WA Expansion, end 2004 8 Mt $152m na expansion under construction (incl port and rail)

Mt Gibson Mt Gibson Iron 324 km SE of New project, 2005 1.5 Mt $22m na Hematite Geraldton, WA committed

West Rio Tinto/ Pilbara, Expansion, mid-2005 5 Mt $142m na Angelas Robe River WA under construction

Yandicoogina Rio Tinto Pilbara, WA Expansion, 2005 12 Mt $1.25b na mine and under construction (incl port) Dampier port expansion

BHP Billiton BHP Billiton Pilbara, Expansion, 2005-06 35–40 Mt na na capacity expansion WA feasibility study project under way

Fortescue Austeel Fortescue New project, na 21 Mt $3.2b 5000 C 80 km SW feasibility study iron ore 1050 O of Karratha, completed 6.7 Mt pellets WA 4.6 Mt HBI

Hope Hancock Pilbara, New project, 2007-08 5 Mt (Stage 1) $1.5b 500 C Downs Prospecting/ WA feasibility study (25 Mt year 5) 300 O Kumba completed

Pilbara Fortescue Pilbara, New project, 2006-07 na $1.2b na Infrastructure Metals Group WA prefeasibility project study under way

Pilbara Fortescue Pilbara, New project, 2006-07 40 Mt $575m na Iron Ore Metals Group WA prefeasibility project study under way

Koolanooka Midwest 55 km N of New project, na 4.5 Mt $540m na pellet project Corporation Mullewa, WA feasibility study iron ore pellets completed

For further information contact: Simon Richmond + 61 2 6272 2271 Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Lead–zinc–silver Cannington BHP Billiton 135 km SE of Expansion, 2004 no increase – $150m na growth Cloncurry, Qld under construction current output project maintained

Magellan Magellan 30 km W of New project, early 2005 Stage 1: 70 kt Pb $36m 120 C lead Metals Wiluna, committed in concentrates 100 O project (Ivernia West/ WA Sentient Global Resources)

Mount Kagara 105 km SW Expansion, late 2004 70–80 kt Zn cons $10m na Garnet Zinc of committed 17 kt Pb cons Stage 1 expansion Cairns, Qld 6 kt Cu cons

Bowden’s Silver 20 km ESE New project, na 4.5 moz Ag $50m 120 C silver Standard of Mudgee, feasibility study 4.75 kt Pb 80 O project Australia NSW ongoing 4.5 kt Zn

Broken Hill CBH Resources Broken Hill, New project, na 58 kt Zn $69m na Base Metal NSW feasibility study 36 kt Pb project under way 1 moz Ag

Dugald Pasminco 85 km NE New project, na na $250m na River of Mount on hold Isa, Qld

Hellyer Intec/Ivanhoe 90 km S of New project, na 24 kt Zn $90m na metals Mines Burnie, Tas on hold 93 t Ag project 100 000 oz Au

Jaguar Pilbara Mines 260 km N of New project, late 2005 34 kt Zn $43m na base metals Kalgoorlie, feasibility study 10 kt Cu WA nearing 1m oz Ag completion

Lady Lady Loretta 140 km NW New project, na 125 kt Zn $200m na Loretta JV of Mt Isa, feasibility 50 kt Pb (Noranda Qld study 850 000 oz Pacific/Buka completed. Ag Minerals) On hold

McArthur River Xstrata Boroloola, NT New project, 2008 450 kt Zn $500m na direct leaching feasibility study project under way

Mt Isa Xstrata Mt Isa, Qld New project, late 2004 80 kt Zn na na open pit feasibility study 80 kt Pb under way

Potosi Perilya Broken Hill, New project, na na na na underground NSW feasibility study under way

For further information contact: Simon Richmond + 61 2 6272 2271 Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Mineral sands Coburn Gunson 250 km N of New project, late 2005 na $60m na Resources Geraldton, feasibility study WA under way

Dongara Ticor Eneabba, WA New project, 2005 200 kt ilmenite $15–71m na feasibility study 30 kt rutile under way 30 kt zircon

Douglas Iluka 40 km SW of New project, 2005 120 kt rutile and $190m 185 C Resources Horsham, Vic feasibility study zircon; 145 O nearing 200 kt ilmenite completion 10 kt leucoxene

Gingko BeMaX NSW (120 km New project, EIS 2005 59 kt rutile $200m 145 C (stage 1 of Resources N of Mildura) and feasibility 41 kt zircon 70 O Pooncarie study completed. 136 kt ilmenite mineral sands Mining lease 110 kt leucoxene project) granted

Goondicum Monto 30 km E of New project, 2005 220 kt ilmenite $55m 220 C Minerals Monto, Qld feasibility 70–250 kt feldspar 55 O study continuing. 85 kt apatite Pilot plant commissioned.

Jangardup BeMaX Jangardup New project, 2005-06 250 kt $40m 100 C South Resources South, WA EIS and mineral sands 50 O feasibility study concentrates under way

Mindarie Southern near Loxton, New project, 2005 17 kt rutile $68m na Titanium SA feasibility study 44 kt zircon completed 77 kt ilmenite 15 kt leucoxene

Ouyen Murray Basin 15 km NE of New project, 2005-06 150–200 kt of $40m na Titanium Ouyen, Vic EIS and heavy mineral feasibility study concentrates under way

Prungle Murray Basin NSW (90 km New project, 2006 45 kt rutile na na Titanium E of Mildura) feasibility and EIS 30 kt zircon study under way 120 kt ilmenite

Snapper BeMaX NSW (110 km New project, 2009 na $56m na (stage 2 of Resources N of Mildura) feasibility Pooncarie study completed. mineral sands ML applic pending project)

Twelve Mile Murray Basin 210 km SE of New project, na 250 kt of $80m na Titanium Broken Hill, scoping study heavy mineral NSW completed; EIS concentrates under way

For further information contact: Gerard Burg + 61 2 6272 2052 Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Nickel Maggie Hays LionOre 130 km W of New project, late 2004 4 kt Ni $28m 167 C Norseman, WA under construction 25 O

Perseverence WMC Leinster, WA Expansion, late 2005 na $200m na underground Resources under construction extension

Ravens- QNI 35 km E of New project, 2007 220 kt mixed $1.36b 1000 C thorpe (BHP Billiton) Ravens- committed Ni/Co hydroxide 300 O thorpe, intermediate WA product (feed for Yabulu refinery)

Sally Malay Sally Malay East Kimberley New project, mid-2004 8 kt Ni $60m 150 C Mining region, WA under construction 3.5 kt Cu 120 O 0.35 kt Co

Avebury Allegiance near Zeehan, New project, 2005 6–7kt Ni $37m na Mining Tas feasibility study in concentrates under way

Forrestania Western Areas/ 130 km S of New project, 2005 12 kt Ni $70m na Outokumpu Southern Cross, feasibility study WA nearing completion

Honeymoon Well MPI Mines 37 km SSE of New project, late 2005 10 kt Ni $55m na Wiluna, WA feasibility study nearing completion

Marlborough Preston 70 km NW New project, na 25 kt Ni $690m 1000 C Resources of Rock- feasibility study 2 kt Co 300 O hampton, completed. Qld Seeking JV partner

Mt Keith WMC S of Wiluna, Expansion, 2005 22 kt Ni $150m na WA feasibility study completed. Development options being considered

Murrin Murrin Minara 53 km ENE of Expansion, 2007 10 kt Ni $250m na Resources Leonora, WA feasibility study under way

Sherlock Bay Sherlock Bay near Karratha, New project, 2005 8 kt Ni $23m na Nickel Corp WA feasibility study 1.6 kt Cu nearing completion

For further information contact: Simon Richmond + 61 2 6272 2271

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Rare earths Mt Weld Lynas Corp Meenaar and New project, 2004 33 kt concen- $40m 100 C Mt Weld, feasibility study trates containing 35 O WA completed 40–45% rare earth oxides

Pinjarra Geo Specialty Pinjarra, New project, na 100 t of '4N' $75m 150 C gallium extraction Chemicals WA on hold gallium metal 50 O plant

For further information contact: Gerard Burg + 61 2 6272 2052 Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Tantalum Binneringie Tantalum 80 km N of New project, mid-2004 100 000 lb $5m 30 C project Australia Norseman, feasibility study tantalum 15 O WA under way

Mt Deans Tantalum 6 km SW of New project, 2005 100 000 lb $5m 30 C project Australia Norseman, feasibility study tantalum 15 O WA under way

For further information contact: Ian Haine + 61 2 6272 2031

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Other commodities Ammonia plant Burrup Burrup New project, late 2005 760 kt ammonia $645m 500 C Fertilisers Peninsula, under construction 60 O WA

Ellendale Kimberley 140 km ESE of Expansion, 2004 na $26m na diamond mine Diamond Derby, WA committed (stage 2A) expansion Company 2005 (stage 2B)

Weipa bauxite Rio Tinto Weipa, Expansion late 2004 4.5 Mt $230m 250 C mine expansion Qld and upgrade, 100 O (NeWeipa project) under construction

Argyle Rio Tinto 130 km SSW of New project, 2007 na na na underground Kununurra, WA feasibility study study under way (diamonds)

Calcined petroleum Astral Near Gladstone, New project, na 415 kt calcined $340m 350 C coke plant Calcining Qld on hold carbon 80 O

Dampier Nitrogen Dampier Burrup New project, 2005 1.2 Mt urea $900m 1000 C project Nitrogen JV Peninsula, feasibility study 100 kt ammonia 130 O (ammonia/urea) (Plenty River/ WA under way Thiess)

Dubbo Alkane Toongi, New project, 2005 3.0 kt $91m 300 C zirconia Exploration/ 20 km S of feasibility study zirconia 60 O project Astron Dubbo, completed 1.2 kt rare NSW earths 0.6 kt Nb/Ta

Ely bauxite Alcan near Weipa, New project, 2009 na na na mining Qld feasibility study project under way

Exmouth Cockburn Cape Range, New project, na 1 Mt $25m 100 C (limestone/ Cement near on hold limestone 20 O quicklime) Exmouth, WA

Exmouth Straits near Exmouth, New project, na 3 Mt na na salt project Resources WA pre-feasibility study completed Manganese HiTec 50 km N of New project, 2005 12.5 kt $52m na dioxide Energy Kalgoorlie, feasibility electrolytic project WA study nearing Mn dioxide completion

Pickanjinnie Queensland Pickanjinnie New project, na 360 kt ammonia $600m 500 C fertiliser Fertiliser Assets near Roma, on hold 350 kt urea 150 O plant Qld 150 kt ammonium nitrate 130 kt nitric acid

Panton Platinum 60 km N of New project, na 69–95 000 oz $57–64m na platinum Australia Halls Creek, WA feasibility study PGM’s palladium completed. project Under review

Swan River Minerals near Tammin, New project, na 250 kt processed na na (Kerrigan) Corporation WA technical kaolin kaolin project feasibility study completed

Eaglehawk Mansfield 100 km SSE of New project, na 700 kt kaolin $90m 50 C kaolin project Mining Broome, WA feasibility study and byproduct 130 O under way minerals

For further information contact: Ian Haine + 61 2 6272 2031 Minerals processing facilities Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Alumina Comalco Comalco Yarwun, near New project, late 2004 1400 kt $1.5b 2300 C alumina refinery Gladstone, under construction alumina 400 O project Qld

Pinjarra refinery Alcoa/Alumina Pinjarra, Expansion, late 2005 600 kt $440m 1000 C efficiency upgrade WA under construction 65 O

Worsley refinery BHP Billiton/ near Bunbury, Expansion, early 2006 250 kt $265m na expansion (Worsley Nissho Iwai/ WA committed Alumina Development Japan Alumina Capital Projects)

Comalco Comalco Yarwun, near Expansion, na 2600 kt na na alumina refinery Gladstone, under alumina expansion Qld consideration

Alcan Alcan Gove, NT Expansion and 2007 1500 kt $1.5b 1200 C refinery plant optimisation, 100 O expansion EIS submitted, feasibility study nearing completion

QAL Queensland Gladstone, Expansion, na 1300 kt na na refinery Alumina Qld prefeasibility alumina expansion study completed

Wagerup Alcoa/Alumina Darling Expansion, na 2000 kt $1.5b 1500 C refinery Ranges, WA feasibility study alumina 250 O expansion and public – Unit 3 consultations under way

For further information contact: Will Mollard + 61 2 6272 2087

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Aluminium Kurri Kurri Hydro Kurri Kurri, Efficiency 2004 7 kt $30m na aluminium Aluminium NSW improvements, smelter under construction (Surf project St. 1)

Tomago smelter Pechiney Tomago, NSW Efficiency 2007 70 kt $210m 300 C upgrade Pacific improvements, 50 O under construction

Aldoga Aldoga Aldoga, near New project, 2006 420 kt $2b 2200 C smelter Aluminium Gladstone, feasibility study 950 O Qld completed. Env'tal approval granted

Boyne Island Comalco Gladstone, Expansion, na 218 kt $700–800m 650 C smelter Qld deferred 100 O expansion indefinitely

Kurri Kurri Hydro Kurri Kurri, Efficiency 2006 8 kt $50m na aluminium Aluminium NSW improvements, smelter EIS and feasibility (Surf project St. 2) study completed

Kurri Kurri Hydro Kurri Kurri, Expansion, na 200 kt $800m 250 C aluminium Aluminium NSW under review 230 O smelter (fourth potline)

Tomago smelter Pechiney Tomago, NSW Expansion, na 200 kt $1.2b na expansion Pacific on hold (fourth potline)

For further information contact: Will Mollard + 61 2 6272 2087 Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Crude iron and steel HIsmelt iron Rio Tinto/Nucor/ Kwinana, New project, late 2004 820 kt pig $400m 320 C plant Mitsubishi/ WA under construction iron 80 O Shougang

Coating plant Bluescope Sydney, New project, 2005-06 90 kt coated $100m na Steel NSW feasibility study steel under way

Cold rolling Protech Newcastle, New project, 2007 520 kt steel $600m 700 C mill NSW feasibility study 365 O completed

Hunter Boulder Muswellbrook, New project, 2006-07 240 kt $500m 500 C specialty Group NSW feasibility study specialty 340 O steel nearing steel mini mill completion

For further information contact: Simon Richmond + 61 2 6272 2271

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Ferrochrome Ferrochrome Consolidated Pilbara region, New project, na 50–110 kt $50m na smelter Minerals WA under review ferrochrome alloy

For further information contact: Simon Richmond + 61 2 6272 2271

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Magnesium Latrobe Latrobe 150 km E of New project, 2008 100 kt $984m 800 O magnesium Magnesium Melbourne, alternative magnesium 450 C project Vic technologies and metal sites being examined

South Magnesium Port Pirie, New project, 2006 71 kt $683m 700 C Australia International SA; or location study magnesium 350 O magnesium Rockhampton, under way metal/alloy project Qld

TasMag Indcor Bell Bay, New project, na 90 kt $800m na project Tas on hold magnesium metal

Woodsreef Pacific Woodsreef, New project, na 80 kt $681m na magnesium Magnesium NSW on hold magnesium project Corporation metal/alloy

For further information contact: Ian Haine + 61 2 6272 2031

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Nickel Yabulu QNI Townsville, Expansion, 2007 44.5 kt Ni $560m na refinery (BHP Billiton) Qld committed 1.4 kt Co expansion (linked to Ravensthorpe mining project)

For further information contact: Simon Richmond + 61 2 6272 2271 Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Titanium minerals ERMS synthetic Austpac Eastern seabord New project, 2005 30 kt synthetic $50m na rutile plant Resources (exact location feasibility study rutile under under way consideration)

Kemerton Millennium Kemerton, Expansion, na 110 kt TiO2 $470m 500 C TiO2 pigment Inorganic WA on hold pigment 200 O plant Chemicals

Kwinana Tiwest JV Kwinana, Three stage na 100 kt TiO2 $200m 108 C TiO2 pigment WA expansion, pigment 98 O plant on hold

For further information contact: Gerard Burg + 61 2 6272 2052

Expected New Capital Employ- Project Company b Location Status c startup capacity d expend. e ment f Zinc Zinc ferrite Sun Metals Townsville, New project, by 2006 na $50m na reprocessing Qld committed plant

For further information contact: Simon Richmond + 61 2 6272 2271

a Includes projects expected to commence production over the medium term and for which capital expenditure is expected to exceed $40 million (except for gold projects, for which the expenditure threshold is $15 million). b Principal operating companies. c Type of project and stage of development – categories of the former include: 'new project' and 'expansion'; categories of the latter include: 'feasibility study under way', 'feasibility study completed', 'committed' and 'under construction'. d Annual incremental capacity expected in terms of contained metal or product; for example, zinc content in zinc concentrates production or salable coal in coal produced. For oil and condensate kbd ('000 barrels a day) and gas (terajoules a day) and liquid petroleum gas LPG (Mt). e Total capital expenditure as reported by the company in current dollars. Includes cost of development, plant and equipment. f Reported employment. Where possible, project employment has been shown at both the construction phase (shown as 'C' against the employment numbers below) and in the operational phase (shown as 'O'). na Not available.