WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE

June – August 2016 $3 (inc GST) Print post approved PP 665002/00062 approved Print post IRON STATE

Western Australia marks 50 years of iron ore exports DEPARTMENT OF STATE DEVELOPMENT International Trade and Investment Level 6, 1 Adelaide Terrace East Perth, Western Australia 6004 • AUSTRALIA Tel: +61 8 9222 0555 • Fax: +61 8 9222 0505 Email: [email protected] • www.dsd.wa.gov.au INTERNATIONAL OFFICES Europe — London Government of Western Australian – European Office 5th floor, The 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] • www.wago.co.uk twitter.com/@wagoEU India — Mumbai Western Australian Trade Office This edition of Prospect marks a significant milestone in Western Australia’s resources 93 Jolly Maker Chambers No 2 sector – 50 years of iron ore exports from the State. 9th floor, Nariman Point • Mumbai 400 021 • INDIA Tel: +91 22 6630 3973 • Fax: +91 22 6630 3977 Three first shipments of iron ore exports commenced in 1966, with a start-up tonnage of Email: [email protected] • www.watoindia.in 2.2 million tonnes per annum (story page 2). Indonesia — Jakarta Our industry has grown over the past 50 years to a total of 9 billion tonnes of iron ore exports Western Australia Trade Office Level 48, Wisma 46, Jalan Jenderal Sudirman Kavling 1 and Western Australia is now the world’s largest iron ore exporter. Jakarta Pusat 10220 • INDONESIA Tel: +62 21 574 8834 • Fax: +62 21 574 8888 Western Australian company Roy Hill shipped its first ore in December and the company is Email: [email protected] continuing to ramp up production this year (story page 7). Japan — Tokyo Iron ore has played a hugely significant role in the growth and development of WA and the Western Australian Government Office State Government will continue to work together with industry and the Western Australian 14th floor, Imperial Tower 1-1-1 Uchisaiwai-cho Chiyoda-ku community to ensure another 50 years for WA as a major global player. Tokyo 100-0011 • JAPAN Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 This edition of Prospect sees a change in ministerial responsibilities for the State Development Email: [email protected] • www.wajapan.net and Mines and Petroleum portfolios (stories page 8 and 10) and renewed focus on the Japan — Kobe growth of other key export markets for the State, including agribusiness (story page 12). Western Australian Government Office As history has shown, Western Australia has a dynamic and innovative resources sector with 6th floor, Golden Sun Building 4-3-6 Nakayamate-dori Chuo-Ku • Kobe 650-0004 • JAPAN world-class commodities coupled with experience and expertise to propel future growth. Tel: +81 78 242 7705 • Fax: +81 78 242 7707 Email: [email protected] • www.wajapan.net Middle East — Dubai Bill Marmion Western Australian Trade Office 106, Emarat Atrium MINISTER FOR STATE DEVELOPMENT PO Box 58007 • Dubai • UNITED ARAB EMIRATES Tel: +971 4 343 3226 • Fax: +971 4 343 3238 Sean L’Estrange Email: [email protected] • www.wato.ae MINISTER FOR MINES AND PETROLEUM Kenya — Nairobi Western Australian Trade Office Kenya Representative Office PO Box 25567 Nairobi 00603 · KENYA People’s Republic of China — Shanghai Western Australian Trade and Investment Office Level 22 • CITIC Square ISSN 1037-4590 1168 Nanjing Road West Prospect Shanghai 200041 • PEOPLE’S REPUBLIC OF CHINA Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 Western Australian Prospect magazine is published quarterly by the Western Australian Government’s Email: [email protected] • www.westernaustralia.cn Department of Mines and Petroleum (DMP) and Department of State Development (DSD). People’s Republic of China — Hangzhou DSD Editorial management: Rebecca Atkinson, DSD Communications and Marketing Division. Western Australian Trade and Investment Promotion Tel: +61 08 9222 0417 • Fax: +61 08 9222 0505 Hangzhou Representative Office DMP Editorial management: Beau Pearson, DMP Communications and Marketing Division. Room 1705 • World Trade Centre Plaza Zhejiang World Trade Centre Tel: +61 08 9222 3736 • Fax: +61 08 9222 3862 122 Shuguang Road Subscriptions: www.dmp.wa.gov.au/prospect. Tel: +61 08 9222 3333 Hangzhou 310007 • PEOPLE’S REPUBLIC OF CHINA Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 Disclaimer Email: [email protected] • www.westernaustralia.cn 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 Singapore and do not necessarily represent the views, or have the endorsement of DMP and DSD. DMP Western Australian Trade and Investment Office and DSD has used all reasonable endeavours to ensure the material contained in this publication 6 Temasek Boulevard #20-02 is correct, but it is intended to be general in nature. No representation is made with regard to the completeness or accuracy of the information contained herein. DMP and DSD disclaims any or all Suntec Tower Four liability for loss or damage whatsoever suffered or incurred resulting from the use of or reliance on Singapore 038986 • SINGAPORE information contained herein. Readers of this publication should make and rely on their own enquiries, Tel: +65 6836 5626 • Fax: +65 6836 5698 research and judgements in making decisions affecting their own or any other persons interest. Email: [email protected] South Korea — Seoul Cover photo: Rio Tinto Cape Lambert iron ore stockpile area with stacker reclaimer equipment Western Australian Trade and Investment Office and using water for dust suppression. Photo: Department of State Development Unit 702, 7th floor, Kwanghwamoon Building (story page 2). 149 Sejong-daero, Jongno-gu, Seoul, 110-730, KOREA Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Scan this QR code to view links to all the department’s publications Email: [email protected] • www.westernaustralia.or.kr In this issue

02 07 11

14 20 22

02 Iron state 14 LNG success for WA Western Australia reaches 50 years of iron ore exports and is LNG 18 brings in the crowds, provides opportunities and sees now the world’s largest iron ore exporter. the gas industry make plans for future growth.

07 Roy Hill 20 Gas giant WA’s newest and the nation’s biggest single-pit iron ore mine Commemoration event puts spotlight on Australia’s largest showcases local technology. single resource project – the Gorgon Project.

11  Keysbrook Mineral Sands 22 WA’s technology talents MZI Resources opens its flagship project as the State’s first, With about sixty per cent of the world’s mining software and the world’s largest, primary producer of leucoxene. originating in WA, the Unearthed Hackathon event looks to build on WA’s technological talents.

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 FIFTY YEARS OF WA IRON ORE EXPORTS

Reclaimer equipment used to load stockpiles of iron ore at Rio Tinto’s Cape Lambert project. Photo: DSD

THIS YEAR SEES WESTERN AUSTRALIA REACH 50 YEARS OF IRON ORE EXPORTS – A MOMENTOUS MILESTONE FOR OUR EXPORT-BASED STATE WITH A HISTORY AND IDENTITY INTRINSICALLY LINKED TO THIS VALUABLE RESOURCE. PROSPECT REFLECTS ON THE INDUSTRY OVER THE PAST HALF CENTURY.

Nine billion tonnes and These four groups have persisted through Mineral Resources had identified significant to the current time, but have been increases, with one important exception still expanding incorporated under the management relevant to the export history, the Ellarine Iron ore exports from Western and majority ownership of the two major Hills (Mount Goldsworthy) deposit initially Australia commenced in 1966 with first company groups of BHP Billiton Iron Ore evaluated by the Geological Survey. shipments recorded from Koolanooka and Rio Tinto Iron Ore. Out of a total 9 (March), Mount Goldsworthy (June) and billion tonnes of exports over the 50 years In November 1960, a partial lifting of the Mount Tom Price (August). to March 2016, the four groups have embargo was given for small deposits for contributed nearly 8 billion tonnes and were exports up to 1 million tonnes per annum An export iron ore industry from the responsible for the initial development of (Mtpa) and for total export sales of no more State began to crystallise as a result of the ports, towns, power and much of the than half of the total defined deposit size. the redevelopment of the Japanese steel overall social and industrial infrastructure of industry and the two industries have been the State’s Pilbara region. The State called for tenders for the export of closely interdependent over many years. iron ore from Mount Goldsworthy. On Four companies, or joint venture groups, Lifting of the iron ore 15 May 1961, after reserving areas for future established with the State Government export embargo Ministerial allocation, the State Government the framework for the long term future of a allocated rights to 164 temporary reserves. In April 1938, the Commonwealth major industry in the Pilbara region – Mount Government placed a ban on the export The State proceeded with the tender Goldsworthy Mining Associates (MGMA), of iron ore from Australia. Ostensibly this process for Mount Goldsworthy and a Mount Newman Mining Joint Venture was because of the shortage of defined State Agreement, negotiated with the joint (MNJV), Hamersley Iron and Robe River resources to support the long-term future of Iron Associates. Through the mutually venture, set the terms on which an export a domestic steel industry in Australia. beneficial instrument of State Agreements, industry would be developed. The joint the State Government formulated and The scarcity argument persisted well into venture later became known as Mount facilitated the form in which the industry the 1950s. Neither the State’s Geological Goldsworthy Mining Associates (MGMA), and region developed. Survey or the Commonwealth’s Bureau of operated by Goldsworthy Mining Ltd (GML). 2 FIFTY YEARS OF WA IRON ORE EXPORTS50

In 1961, Lang Hancock persuaded Rio Commitments by the State through State GML in 1972 and HamersleyYEARS Iron in 1973 Tinto to inspect his Hamersley Range Agreements, and by consumers through made their first shipments to China, but findings, which introduced the State's long-term contracts, eventually convinced it was 25 years later that the focus of second players in the export industry. In overseas companies and their lending the producers moved from a Japanese- 1963, the Iron Ore (Hamersley Range) institutions to invest in the untried and dominated market towards China. Agreement was entered into for the untested region of Western Australia. development of Mount Tom Price. There were various changes in ownership A period of consolidation Stan Hilditch had identified the Mount and project definition as operations were – the hard times Whaleback deposit (at Newman) in 1957 developed and grew in scale. Japanese and, together with backer Charles Warman, mills and trading houses became parties to Through the 1970s and 1980s there was a was later granted rights to iron ore over some of the changes in ownership, as well global economic slowdown which resulted the Ophthalmia Ranges. In 1963 AMAX as parties to the supply contracts. in most iron ore producers operating became involved and created subsidiary below capacity. Exports stagnated in the Mount Newman Iron Ore Sales. CSR took Ports at Dampier, Cape Lambert and two in 70-80Mtpa range. In 1983 the billionth tonne equity in 1964 and the MNJV was formed. Port Hedland rapidly expanded to eventually of iron ore was exported from the State, accept Cape-size vessels to compete in a 18 years after commencement of exports. The Robe River titles were acquired by growing seaborne market. Cleveland Cliffs in 1962 and a State Annually negotiated benchmark prices Agreement was entered into in 1964 with In the early 1960s, the State entered into continued to rise during the latter half Cliffs’ subsidiary Basic Materials Pty Ltd the Tallering Peak Agreement with Western of the 1970s when Pilbara operators for development of the Middle Robe Mining Corporation, allowing the first export were committed to growth to establish River mesas. development State's from the Koolanooka themselves with a solid production base deposit through Geraldton port. The project in the market place. Having peaked at the Establishment of an was operated under joint venture between equivalent of $US21/tonne free-on-board export industry Western Mining, Hanna Mining and for 62 per cent iron ore fines in 1982, the Homestake. The first shipment sailed on next 20 years saw fluctuating prices and The following years of exploration, 16 March 1966 based on a more modest overall difficult economic conditions for development of project concepts and development, compared to other projects, miners and steel mills. feasibility studies of these four joint ventures of a 5.1Mt contract with six Japanese mills To add to the stagnating demand, industrial led to the establishment of a long-term over eight years at 500 to 700,000 tpa. disputes were becoming prevalent in the export based iron ore industry in the Pilbara. From the start up combined tonnage in Pilbara, with companies often needing to The joint ventures had firmly established 1966 of 2.2Mt, export levels had achieved use force majeure clauses in their contracts. the need not only to develop the iron ore over 50Mtpa by 1972 and peaked at nearly Reliability of supply became an issue for project, but also to develop greenfields 86Mt of exports in 1974. This supported the Japanese customers. As a result, after sites with competitive deepwater shipping growth in Japanese steel industry demand, import reliance on the State had exceeded facilities, railways and the extensive social as well as supply into Europe. Between 50 per cent in the mid-1970s, the Japanese infrastructure required to support the 1966 and 1973 the Japanese steel output steel mills’ reliance on Western Australia as workforce and general project needs. had grown from 48Mtpa to 119Mtpa. a supplier dropped to the mid- to low- 40s from the late 1970s and throughout the 1980s and even went as low as 39 percent in 1987. Industrial issues significantly improved by 1,000 the 1990s. There was a high demand for direct charge quality lump ore produced by 800 Mount Tom Price and Mount Whaleback, but lower demand for higher alumina fines. 600 The companies, with royalty incentives from the State Government, realised that the 400 economy and longevity of the operations

Million tonnes required maximisation of product output. A 200 market strategy was developed that required consumers to take lump aswell as fine ore 0 under their contracts in proportion to the 2007 2009 2011 2013 2015 2017 2019 2021 natural split from production. Australia Brazil Rest of world Additionally there was a need to diversify from producing solely premium ores and develop other ore bodies for blending. Iron ore exports – Australia, Brazil and the rest of the world. Source: Resources and Energy Quarterly, March 2016, Department of Industry, Innovation and Science. Continued next page.

3 FIFTY YEARS OF WA IRON ORE EXPORTS

The Japanese steel mills had come A new millennium of delivered to Chinese ports) in 2008. India to expect consistent product from the was exporting more than100Mtpa on a spot Australian producers. There was a push riches – tapping China’s market price base and a number of new back initially when the Newman output economic growth players for Western Australia had entered moved from 3 per cent up to 15 per cent the spot market. This price was generally Marra Mamba in the blend, but eventually The steady growth in supply availability higher than the benchmark price. The it was realised that to exploit the resource and diversity, quality control and reliability majors, led by BHP, campaigned for more base fully, Marra Mamba had to be brought as a shipper increased the Japanese steel of a market-based pricing system than the into the mix. mills’ dependency on Western Australia to annually negotiated benchmark. From early around 55 per cent in the latter half of the 2008 market index pricing commenced, 1990s and then to around 60 per cent A move to diversity and based on Indian product qualities delivered early in the 2000s. However there was to China. The annual benchmark persisted export expansion still limited movement in prices to reflect into 2009, but then disappeared in better demand. From a period of stagnation of exports in preference to the market indexed pricing for the 70 to 80Mtpa range, the late 1980s It looked as though growth might take product delivered to Chinese ports. off from 1997 as China and Japan both saw exports exceed 100Mtpa (1989) and Western Australian and Indian showed strong demand to support almost cumulative exports pass two billion tonnes in developments took more advantage of 150Mt of State exports, but the figures 1993, ten years after the first billion tonnes. the growth than other key market players, dropped back in line with the overall trend such as Brazil and South Africa. In Western One of the most iconic partnerships entered the following year. into in 1987 was Hamersley’s joint venture Australia there was almost exponential with the Chinese Government’s China 1999 was the first suggestion of a Rio Tinto- growth. Export levels of 200Mtpa were Metallurgical Import and Export Corporation BHP merger of their Pilbara operations. reached in 2003 and 300Mtpa in 2008. Milestones of total exports of four billion (CMIEC) in the Channar Joint Venture. At Europe as a market for Western Australian tonnes and five billion tonnes were achieved the time, it was the largest overseas mining iron ore was declining, while China was in 2005 and 2009 respectively. investment by China. running at around 20 per cent of the State’s The 1990s saw a slight lessening of reliance exports up to the turn of the century. It Underpinning the boom were a number on the Japanese steelmakers, as China’s was from then on that growth took off of expansion and replacement ore and South Korea’s demands increased and on the back of Chinese steel demand. developments by Rio Tinto and BHP. A Taiwan appeared as a consumer. However, Growth averaged around 20 per cent per number of greenfields developments were market dominance in seaborne trade was annum over the next seven years up to initiated during this period, including joint still controlled by Japan and quality control the global financial crisis. By 2004, China ventures with other Western Australian and consistency of product continued to had overtaken Japan as the State’s major companies and consumers from China and play a big part in the market place. market outlet and has continued to increase South Korea. its dominance since then. Improvements in export demand and The price hikes in iron ore began to attract At the outset of the massive China diversity of product coming from the mines a number of junior companies throughout growth phase, there was a degree of required upgrades of the handling and the State, which had previously been largely hesitation from the majors to commit to blending facilities at the ports of Dampier focussed on gold. They already held tenure major expansion expenditure. However, it and Port Hedland. BHP expanded rail which also had iron ore potential in the Mid was soon realised that the Chinese steel and export capacity first to 64Mtpa then West, central Yilgarn, Eastern Goldfields demand and therefore iron ore production to 80Mtpa and in 1997 an under harbour and north Pilbara regions. These included needs was not going to be short-lived. tunnel linked Nelson Point with the Finucane Mount Gibson, Murchison Metals, Atlas World seaborne iron ore growth was never Island facilities completing flexibility and Gold and Gindalbie Gold. going to catch up with the rampant growing integration of MNJV and MGMA port demand from China. Prices for 62 per Some operations were initially planned for handling operations. By 2000, Dampier port cent Fe fines free on board (FOB) almost short-term quick return on spot market had a handling capacity of 67Mtpa, exports prices during a boom cycle, others had doubled to around $US 40/tonne. from the State had exceeded 150Mtpa and plans for more longevity progressively a cumulative milestone of 3 billion tonnes Price growth was rapid, reaching around moving to a series of relatively small was reached. $US90/tonne FOB (nearly $US140/tonne deposits or to different, perhaps more 4 FIFTY YEARS OF WA IRON ORE EXPORTS50 YEARS

Aerial view of the Rio Tinto iron ore operations at Hope Downs, Western Australia. Photo: Rio Tinto

costly, ores with more substantial resources, Western Australian producers fared better In 2009 Rio Tinto and BHP again proposed as time progressed. on the back of a much lower Chinese the idea of an operations joint venture in the Pilbara with a reported saving of The mid-2000s saw China wrest control of steel growth (2.3 per cent) than it previously the market from the Japanese steelmakers. experienced, but not negative like almost $US10 billion through the synergies of It resulted in an easing of quality constraints all other significant steelmaking regions. the two companies. This was resisted by strong opposition from consuming regions in volume and price control. China had such The GFC caused a temporary deferral of and competition laws made it difficult for a diverse and large iron and steelmaking commitments to expansion, a reining in of sector and was building up an overcapacity the proposal to proceed. Although the capital expenditure and implementation of at many mills, that the impact of lower companies could not reach agreement various cost saving measures, including quality ores was less obvious. Many of on their original proposal, negotiations the new developers introduced low quality reductions in employment. with the State Government eventually ores into the market and initially without The post GFC period showed a rapid rise allowed integration of infrastructure to be commensurate penalties. The high demand undertaken across the companies’ State in iron ore price, equal to the declined in also meant that the majors were going for Agreement projects. volumes of ore rather than the strict quality late 2008–early 2009. Prices peaked in late control of the Japanese dominated period. 2011 at the equivalent of $US160/tonne Growth in WA resumed as before the GFC As well as lower iron, higher alumina and (FOB), before fluctuating quite intensely to with Rio Tinto and BHP both announcing phosphorus ores started to be added to around $US120/tonne at the end of 2013. ambitious plans to expand production to blends and tolerance levels were widened, The Pilbara fines product prices eventually 330 and 240Mtpa respectively. particularly in levels of undersize material replaced that of India. Continued next page. in delivered lump ore. The period provided a bonus for a fuller utilisation of Western Australia’s resource base. Through the first decade of this century China had assumed a dominant position for Western Australian iron ore supply, taking 70 per cent of its production. On the reverse side, Western Australian ore was struggling to maintain 40 per cent share of China’s imports, compared to 70-80 per cent penetration of the other main East Asian consumers. The global financial crisis and beyond The peak prices of early 2008 were hit by the Global Financial Crisis (GFC) of 2008–2009 and plummeted to a low of $US60/tonne FOB for the benchmark and the equivalent $US50/tonne in the new indexed market. A number of high cost producers disappeared from the market, including most of India’s export tonnage. Iron ore carriages, Rio Tinto Cape Lambert operations. Photo: DSD

5 FIFTY YEARS OF WA IRON ORE EXPORTS50 YEARS

Ship berthed at Cape Lambert jetty. Photo: DSD

Fortescue Metals Group (FMG), which had China slowdown All companies have cut capital budgets and emerged as a new producer just before the the majors, having got the infrastructure onset of the GFC, was on a planned growth – 2014 onwards framework in place for expanded path to 155 Mtpa, including its development operations, have placed emphasis on China’s strong economic growth post the of Solomon ore bodies and a five berth brownfield expansions at the present time. GFC eventually receded in 2014. Growth capacity at Anderson point in Port Hedland. in steel output was less than 1 per cent Western Australia is now 80 per cent Atlas Iron (formerly Gold) continued to pick in 2014 and then receded in 2015 (-2 per dependent on the China market, and most up other companies with iron ore portfolios cent) and is currently showing a further significantly over the past four years, it has and other new producers appeared in the 4.5 per cent decline in the first quarter of grown its market penetration into China to State, such as Moly Mines, BC Iron and this year. greater than 60 per cent, a 20 per cent rise Mineral Resources in the Pilbara, Gindalbie for the period. With Japan, South Korea and Mineral Resources in the Mid West Prices went into ‘free-fall’ through 2014 and Taiwan steelmakers taking 60-70 per and central Yilgarn, as well as Kimberley and into 2015, then fluctuated extensively in cent from Western Australia, the State’s Metals Group and Pluton Resources in the the $US40 to $US65/tonne range (FOB) 62 export future looks bright. Kimberley region. per cent iron ore fines in the last year. This What the structure is will depend on many has put a toll on some Western Australian A series of port developments and port factors, but it is suggested that the portfolio planning took place for many of these producers, particularly when realised values of, and resources defined by, the four developments and also for new projects in can be significantly less than this index on 1960s-70s players, within in a different the pipeline. account of quality adjustments. ownership structure, will continue to be a major influence in the Western Australian There were 16 producers at the peak of Seven Western Australian operations export scene for many years. If a current operations allowing exports to successively have closed over the past year, based export level of 800Mtpa is sustained, then achieve the six, seven and eight billion on economics, depletion of resources high and medium grade measured and tonnes cumulative export milestone in 2011, or technical issues and others have had indicated resource estimates of nearly 24 2012 and 2014 respectively. Annual export to take other measures to stay afloat. A billion tonnes would last around 30 years. levels had reached 600Mtpa by late 2013. major feature of all operations has been With further exploration, and assuming After long periods of construction, the first cost saving to achieve productivity gains. magnetite becomes established in the two magnetite operations started exporting Innovative technologies and practices have production mix, then the State could expect from the State in 2013 at Karara (Gindalbie come into the production cycle. This has to be a major player in the global seaborne – Ansteel JV) in the Mid West and Cape kept Western Australian producers in the trade for at least another 50 years. Preston (CITIC Pacific) in the west Pilbara, forefront of new operating technologies and Article provided by Bill Preston, Department of with both projects fully underwritten by in the lowest quartile of costs among the State Development. All tonnages are reflected Chinese entities. global seaborne market producers. as wet metric tons. 6 The $10 billion Roy Hill project during construction. Photo: Roy Hill

ROY HILL IRON ORE MINE SHOWCASES WA’S MINING TECHNOLOGY

State Development Minister Bill cent each year to 2018-19, bolstered by Located 115km north of Newman in the Marmion last month toured the Roy projects such as Roy Hill. State’s Pilbara region, Roy Hill comprises Hill project, the State’s newest – and an open pit mine, processing plant, 344km “The State Government has been the nation’s biggest – single-pit iron of heavy-haul railway, export facilities at Port a strong supporter of this project, ore mine, and the latest showcase of Hedland and a remote operations centre working closely with the proponents to Western Australia’s global leadership in in Redcliffe. facilitate all necessary approvals and automation and mining technology. negotiating a State Agreement for the The mine is majority owned by Hancock “At full capacity, five ore trains per day will railway,” Mr Marmion said. Prospecting Pty Ltd, in a consortium run between the mine and port facilities at of international investors including “Roy Hill is another example of WA’s Port Hedland, all controlled by Roy Hill’s Marubeni Corporation, POSCO and outstanding capacity to attract international state-of-the-art remote operations centre China Steel Corporation. investment that benefits a wide range in Perth,” Minister Marmion said. of West Australians, especially from key The A$10 billion project will make Roy Hill “Roy Hill celebrated its first shipment trading partners such as China, Japan Australia’s fourth-biggest iron ore producer in December 2015, and is now in the and Korea.” after BHP Billiton, Rio Tinto and Fortescue process of ramping up to its full production Metals Group (FMG). capacity of 55 million tonnes per annum,” he said. Mr Marmion said the Roy Hill project would yield significant royalties, and was expected to operate for more than two decades. “It has already generated extensive economic benefits for the State, with the construction workforce peaking at 6300 and ongoing operations employing almost 2000 people,” he said. Roy Hill has an outstanding local content record, with 72 per cent of all project expenditure, A$6.6 billion, spent or committed within WA during construction. Western Australia is the world’s largest producer of iron ore, accounting for 37 per cent of global production in 2014. Annual The Roy Hill project celebrated its first shipment in December 2015. Photo: Roy Hill production is forecast to grow by three per

7 MARMION HEADS STATE DEVELOPMENT

State Development Minister Bill Marmion.

The Department of State Development A civil engineer by profession (he also holds Since his election as Member for Nedlands has welcomed a new Minister, following a Masters in Business Administration), he has served in a range of roles including Western Australian Premier Colin Mr Marmion spent many years working for Parliamentary Secretary to the Premier Barnett’s announcement in late March of the State Government agency responsible and Minister for Commerce; Science and a change to ministerial portfolios. for Western Australian roads, with much of Innovation; Housing, Minister Assisting the Treasurer, Minister for Water and the The Hon Bill Marmion, MLA was sworn his time spent in regional WA, including the Environment; and Minister for Mines in as Minister for State Development on Goldfields and the Kimberley. and Petroleum. 31 March, 2016 and will be well-known to After leaving the public service, he Prospect readers, having previously held co-founded consultancy firm As Minister for State Development, the Mines and Petroleum portfolio. Syme-Marmion, which specialised in Mr Marmion is committed to attracting investment to Western Australia and On 16 May, 2016, he was also made strategic planning and financial analysis assisting the development of major projects Minister for Innovation, charged with driving work for the Government and the based on the State’s natural advantages in the Government’s innovation strategy private sector. mining, petroleum and agriculture. and the $20 million innovation package Before entering Parliament in 2008, Mr announced in the State Budget. Along with State Development, Mr Marmion Marmion served as President of the WA holds the Finance portfolio. Mr Marmion was born in Kalgoorlie and has Division of Engineers Australia for three a long record of service to the people and years and chaired the State’s Engineering Sean L’Estrange is the new Minister for the State of Western Australia. Excellence Awards. Mines and Petroleum (see page 10).

AFRICA DOWN UNDER COMING TO WA

The 14th Africa Down Under Conference Petroleum will provide high level briefings Libya, Madagascar, Malawi, Mauritius, and Exhibition (ADU 2016) will be held in and a display highlighting the State’s Rwanda, Seychelles, Sudan, Swaziland, Perth in September. strengths and capabilities in mining Uganda, Zambia and Zimbabwe. equipment, technology and services The annual event offers the opportunity for In 2015 Western Australia’s bilateral trade with (METS). Australian companies to gain knowledge COMESA was valued at $213 million, and about the African market and industries ADU is also an ideal platform to build on $1.73 billion with Africa as a whole. the State Government’s Memorandum and for African mining states to promote ADU 2016 will run from 7-9 September at the of Understanding with the 19 countries investment in their resources sectors. Pan Pacific Perth. For more information visit forming the Common Market for Eastern www.africadownunderconference.com. African mining states are expected to and Southern Africa (COMESA). Signed by promote their mining policies and good Premier Colin Barnett in Lusaka, Zambia For more information on trade and investment governance to counterparts in Australia in 2014, the MOU aims to promote in Africa contact the Department of State and, specifically, Western Australia. Last co-operation in mineral and petroleum Development or visit www.dsd.wa.gov.au year’s ADU featured more than 90 exhibitor resources, agriculture, vocational education booths and attracted over 1,000 attendees. and capacity building. This year, the Western Australian COMESA countries include Burundi, Government through the Departments Comoros, Democratic Republic of Congo, of State Development and Mines and Djibouti, Egypt, Eritrea, Ethiopia, Kenya, 8 The new Onslow ring road, funded by the Chevron-operated Wheatstone LNG project, located near the town. Photo: Main Roads WA NEW RING ROAD IMPROVES ACCESS FOR ONSLOW

The town of Onslow in Western The Wheatstone Project has committed administration centre and library, Australia’s Pilbara region saw the more than $250m to social and critical wastewater treatment plant improvements opening in late May of a new ring road, infrastructure in Onslow including health, and housing for regional government a key project in the development of the recreation and utilities. officers,” Minister Marmion said. town’s infrastructure. The State Government has also committed A list and map of planned projects for Officially opening the $14.1 million project about $70m to local facilities. Onslow is available on the Department in late May, State Development Minister of State Development website, “After extensive planning, new and Bill Marmion said the road would benefit visit www.dsd.wa.gov.au/onslow. upgraded facilities are being constructed, residents, industry and tourists and including the Onslow Shire Council guarantee access to the town, even in cyclonic conditions. “This is important infrastructure for the growing Onslow community, giving certainty to locals and visitors to the area,” Mr Marmion said. Construction began on the project in November 2015 and included 3.5 kilometres of new highway, new intersections and remedial works on the existing Onslow Road. The new Onslow Ring Road provides direct all-weather access from the upgraded airport to the town centre. Mr Marmion said the works were funded by the Chevron-operated Wheatstone Project, L-R: Main Roads Regional Manager, Andrew Pyke; former Agriculture and Food Minister a major liquefied natural gas venture located Ken Baston; State Development Minister Bill Marmion; Thalanyji representative, Anne 12 kilometres west of the town. Hayes; and Shire of Ashburton President, Kerry White. Photo: Main Roads WA

9 NEW MINISTER DETERMINED TO BUILD ON WA’S GLOBAL DOMINANCE

New Mines and Petroleum Minister The Minister is firmly behind the becoming more complex, so MRIWA’s fostering Sean L’Estrange MLA is committed to development of a Western Australian of research, technological innovation and new taking advantage of Western Australia’s uranium industry and is keen to see WA’s talent is essential,” he said. success in being ranked as the first mine begin exporting. “That is why we have committed A$6 million in world’s leading resources investment “I will do everything possible to encourage funding for this crucial organisation over the destination by the highly respected the responsible development of what is next three financial years until 2019.” Fraser Institute. potentially a billion-dollar per annum export “I am determined to build on our leading industry,” he said. status to continue attracting investment,” Mr L’Estrange is also highly enthusiastic he said. about Western Australia’s growing Mr L’Estrange identified what he sees as lithium industry. two main achievements responsible for the “With a new lithium mine due to be opened State’s top ranking. mid-year at Mt Marion in Coolgardie, I am “The State Government’s rolling red tape keen to work with industry to examine reduction program which has sped up options for downstream processing of approvals processing and cut millions of lithium ore to service the burgeoning global dollars in mining industry costs and the battery market,” he said. investment confidence inspired by our Mr L’Estrange said the State Government transparent regulation and stable, proven had shown through Budget commitments royalties system are the successes that that it would continue to foster have propelled Western Australia to the top strategies aimed at encouraging of the ladder,” he said. exploration and assisting the discovery Mines and Petroleum Minister “I know that in the competitive world of of the mines of tomorrow. Sean L’Estrange. global resources, certainty is one of our “One such program, the Exploration most precious commodities – and that Incentive Scheme (EIS), has had more than gives Western Australia the leading edge. Mines and Petroleum Minister Sean A$130 million committed to it since 2009 L’Estrange is a highly qualified “With the cost curve low and efficiencies and has been instrumental in discovering management professional and a soldier high, this is the best possible time to several new deposits,” he said. with a distinguished career that includes be building a mine in WA and the State “I’ve been pushing hard to ensure continued active service in Afghanistan. He continues Government will be doing everything it can funding of the EIS, so I was extremely to serve as a Colonel in the Army Reserve. to encourage new mines.” pleased we have been able to provide Born in Perth in 1967, Mr L’Estrange Mr L’Estrange said that he was determined A$30 million to continue the scheme for holds a Masters Degree in Educational to grow the State as a global centre for the next three years.” Leadership, a Graduate Diploma of mining and petroleum excellence, Mr L’Estrange said that other initiatives Management, a Graduate Diploma of building on automation, computing and such as expansion of the Perth Core Resource Management, a Bachelors geophysics leadership. Library, funding of the Mineral Research Degree of Education and a Diploma of “For instance, WA already produces the Institute of Western Australia (MRIWA), Teaching. He is also a graduate of the lion’s share of global mining software and and the continuing work of DMP to reduce Australian Army Command and Staff hosts key centres for major operators approval times were all aimed at ensuring College in Canberra. such as Chevron, BHP Billiton, RioTinto, the State Government provided the optimal For six years before entering State Oceaneering and Cisco,” he said. environment to encourage responsible Parliament in 2013 as the Member for minerals and petroleum exploration. “I want to continue our engagement with Churchlands, Mr L’Estrange established the IT and start-up sector, to commercialise “Exploration targets are now deeper and operated a leadership and new mining industry products and services.” and harder to reach, and processing is management consultancy.

10 Keysbrook Heavy Mineral Sands, first leucoxene shipment. Photo: MZI Resources TITANIUM TITAN

Western Australian mineral sands The Keysbrook deposit is about 1,406 “Ore processing is chemical-free and involves company MZI Resources officially hectares in area and MZI Resources sluicing, screening and gravity separation of opened its flagship Keysbrook Mineral aims to produce over 95,000 dry tonnes naturally occurring sands to produce heavy Sands Project in April. of leucoxene products and zircon mineral concentrate,” he said. concentrate annually. The project is Western Australia’s first “It then undergoes simple electrostatic and primary producer of leucoxene, a naturally Managing Director Trevor Matthews said magnetic separation at a facility near Bunbury to occurring alternative to rutile as a source of with total ore reserves equivalent to more produce the final zircon and leucoxene products. titanium dioxide. than 15 years’ of production, the company “There is no waste, with more than 85 per cent of Leucoxene is used in pigments for paints expected a long life for the project. all process water recycled, and more than 97 per and paper, and in the production of “Keysbrook represents one of the largest cent of extracted material returned to the mined lightweight titanium metal. new project developments in the Peel area, following which the land is progressively rehabilitated to its pre-mining state.” The Keysbrook Project is also a major region in recent years, and is designed to producer of zircon concentrate used produce over 95,000 tonnes of high value Heavy mineral sands produced in Western in ceramics, refractories and specialty mineral sands products annually for export Australia include ilmenite, leucoxene, upgraded industrial applications. to global customers,” Mr Matthews said. ilmenite, rutile, zircon and monazite, with the State producing an estimated A$379 million The opening of Keysbrook, located 70 “(The) official opening of the Keysbrook of Australia’s total A$1,243 million production kilometres south of Perth, followed the Project is a tremendous milestone not just in 2014. commencement of operations at the for MZI…but also for the broader Peel A$75 million project in October last year, region and WA.” The United States and China are Western and the first sales of mineral sands product The company cited 90 per cent of Australia’s largest major export markets for in December 2015. Keysbrook’s 60 workers lived within a heavy mineral sands (USA: 33 per cent and China: 21 per cent in 2014-15). The first shipment of zircon concentrate 30 minute radius of the site, and the was sent to Xiamen Port in China and was operation is anticipated to spend on sold under the company’s long-term offtake average around A$40 million annually for agreement with Tricoastal/Wensheng, labour, supplies and services, predominantly China’s largest zircon processor. within Western Australia, using locally based contractors and suppliers, including local In March 2016, the first shipment of steel fabrication. leucoxene product was exported from the Port of Bunbury to major customer Mr Matthews said the Keysbrook Project Chemours in the United States. had a “light environmental footprint.”

11 AGRIBUSINESS ON THE RISE

Department of State Development, Special Adviser, Rob Delane – Agribusiness Expansion.

Western Australia is already a In 2014-15, the gross value of Western Mr Delane has joined the Department of significant exporter of many agriculture Australia’s agriculture production rose State Development in the role of Special and aquaculture products and, with 0.2 per cent to A$11.6 billion. Adviser – Agribusiness Expansion, the value of the State’s exports rising in which he will lead strategies to The State’s agriculture and food exports were during the past year, the time is ripe for enhance international market and trade valued at A$7.8 billion in 2014-15, mainly the export-focused expansion of the growth and inward investment for the comprising wheat (38 per cent), barley agribusiness sector. agribusiness sector in Western Australia. (13 per cent), canola (10 per cent), wool Expanding agribusiness in Western (6 per cent) and rock lobster (6 per cent). Mr Delane said he was a strong Australia and better positioning producers supporter of partnerships between The value of wheat exports alone rose six and processors to meet growing government and industry, as well per cent to A$3 billion in 2014-15, in line with overseas consumer demand is the as innovation in the public sector, to average annual growth of six per cent over the motivation behind a range of special deliver positive outcomes for the State’s past ten years. measures recently introduced by the agricultural sector. Western Australian Government. Western Australia’s major agricultural and food “I’m a keen promoter of regional, State, export markets in 2014-15 included China A new agribusiness unit within the national and international cooperative (23 per cent), Indonesia (14 per cent), Japan Department of State Development (DSD) initiatives and government-industry (9 per cent), Korea (6 per cent) and Vietnam was announced in March, as well as the partnerships to deliver innovative (4 per cent). earlier appointment of dedicated trade outcomes that effectively deliver value to officers to Western Australia’s Trade Last financial year the value of the State’s the agrifood sector and community of and Investment Offices in three key agricultural and food exports to China rose Western Australia,” he said. regional growth markets: Indonesia, 30 per cent to A$1.8 billion. “There is growing global demand for Singapore and India. The Western Australian Trade and Investment agrifood products and Western Australia Western Australian Premier Colin Barnett Office in Indonesia was expanded in 2015 to is in a strong position to build on its well- announced the appointment of Rob Delane, include a tourism officer and an agriculture established reputation internationally as the Director General of the Department of business development officer. Dedicated a reliable, clean and disease-free State Agriculture and Food (DAFWA), to lead agriculture business development officers with strong credentials in resources and the new Agribusiness Expansion Unit were also appointed in the India and major project development, as well as within DSD. Singapore trade offices, supplementing those an attractive investment destination.” already working in the China, Japan and “This unit will enhance the Government’s Mr Delane brings to the position Middle East trade offices. efforts in export market development and extensive experience and a broad foreign investment attraction, as well as The Premier said dedicated agriculture knowledge of the agrifood sector with offering support to major agriculture and officers, as well as tourism officers, would more than 30 years in the industry in associated infrastructure projects,” assist the State to focus resources and WA, including more than six years as Mr Barnett said. efforts where there is real potential for growth, the Director General of the Department particularly with our nearest trading partners. of Food and Agriculture. “(The) prospect for expansion of trade and investments looks promising (and) has The Department of State Development is He also spent a year undertaking a better chance of being realised if the the Western Australian Government’s the joint roles of Deputy Secretary, Government redoubles its efforts both to lead agency for international engagement Biosecurity Services Group and market – especially Asia and the Middle strategies for the State. For more information Executive Director, Australian East – and at home.” on trade and investment in Western Australia Quarantine Inspection Service with the visit www.dsd.wa.gov.au Federal Government’s Department of The Premier said he wanted to use Mr Agriculture, Fisheries and Forestry. Delane’s expertise to “push harder into overseas markets and support local Mr Delane was awarded a Public industry to capitalise on the growth.” Service Medal in 2007 for outstanding service to the agricultural industries and the Western Australian community.

12 PRAWN EXPORT PROJECT FOR WA

A black tiger prawn. Photo: CSIRO

The first stage of a billion dollar animal meat protein meant large The Department of State Development is aquaculture project to export prawns scale aquaculture would play an the Western Australian Government’s to Asian markets is planned for increasingly important role in meeting lead agency for the project and is Western Australia. rising global demand. working with Seafarms to facilitate the project’s land, transport, infrastructure and Australia’s largest aquaculture prawn farm “Project Sea Dragon is a unique and world- other requirements. operator – Seafarms – is looking to develop class aquaculture opportunity designed a large-scale export project based in to meet the growing global demand for Australia currently produces about 5,000 Western Australia and the Northern seafood, particularly in Asia,” Dr Mitchell said. tonnes of prawns each year – Project Sea Territory which represents a significant Dragon aims to increase that production “The project will be at a scale that enables opportunity for economic development substantially, with the project set to produce us to leverage Australia’s comparative in northern Australia. 100,000 tonnes of black tiger prawns per advantages in biosecurity, marine year when fully operational. Seafarms’ Project Sea Dragon requires an science, access to key raw materials investment of about US $1.45 billion during and expertise in large scale resource The Food and Agriculture Organization the next eight years, to develop the staged, and agricultural development. of the United Nations forecasts that fully integrated, land-based aquaculture aquaculture production will grow by 60 per “A project of such large scale means project, which will produce black tiger cent or around 30 million tonnes per annum Australia can be a low-cost producer, and prawns for export markets in Asia. from 2010 to 2020. Australia’s strong bio-security credentials The project will be a staged development, and the project’s relative remoteness will Dr Mitchell said the growing consumption of with Stage 1 consisting of a founder stock assist in mitigating bio-security risks.” seafood in China, and Asia more generally, and quarantine centre, located in Exmouth and the rise in aquaculture production, Western Australian Premier Colin Barnett in Western Australia, breeding facilities near were leading indicators of the significant acknowledged the potential of large Darwin, a hatchery and 1,000 hectares of role aquaculture would play in global food scale production and export of prawns production ponds, located in the Northern production over the next 40 years. to generate local employment and Territory, and processing facilities based in business opportunities and contribute “China currently accounts for two-thirds Kununurra, Western Australia. to the diversification of the Kimberley’s of world aquaculture production but has Wyndham Port in Western Australia’s economy, while also making use of regional recently switched from being a net seafood Kimberley region is the preferred port for infrastructure that has been provided exporter to a net importer,” he said. export of product. through significant State investment. “Project Sea Dragon will significantly Project Sea Dragon was given major Stage 1 of Project Sea Dragon is expected improve the value of Australia’s prawn project status by the Western Australian to create about 120 direct jobs in Western exports with the project set to produce Government in 2015 in recognition of the Australia, increasing to about 700 positions A$1.7 billion per year in export revenues project’s strategic importance to the at full operation, as well as providing within 10 years.” State – this followed similar recognition contracting and local business opportunities by the Federal and Northern within the State. Territory Governments. Seafarms expects to reach a final Seafarms’ Dr Chris Mitchell said that investment decision on Stage 1 of the the cost competitiveness of aquaculture project by the end of 2016, with financial compared to producing other sources of close shortly thereafter. 13 OIL AND GAS

“Every Western Australian knows how oil, gas and resource LNG SUCCESS companies have made enormous contributions to this nation.” Malcolm Turnbull FOR WA Prime Minister of Australia

“As the number of producers has increased, so has the range of resources and technology. Australia is now a ‘test lab’ of conventional gas, coal seam gas, shale gas and floating LNG.” Colin Barnett Premier of Western Australia

“For us and the LNG industry as a whole, these are interesting times. Market conditions in general are challenging. At the same time, new markets are opening up – markets like The Western Australian Government LNG 18 display booth. Thailand, Pakistan and Poland.” Ben van Beurden The 18th International Conference & years, rising from 20.6 million tonnes in Chief Executive Officer, Exhibition on Liquefied Natural Gas, or 2015 to nearly 50 million tonnes by 2018. Royal Dutch Shell LNG 18, has been hailed a success with This increase is driven by the construction more than 6000 people taking part over of major LNG projects including Gorgon, five days in Perth in April. Wheatstone and Prelude. “Experts project global LNG LNG 18 was the latest event in the LNG Speakers at the conference included the demand will increase nearly X series – a triennial LNG conference and global heads of Chevron, Shell, Woodside, 130 per cent by 2035. To put exhibition that alternates between exporting Petronas, CNOOC and ConocoPhillips, that in perspective, the world will and importing countries. among others. Conference sessions need more than a Gorgon-sized Perth is the only city to host the series more focussed on topics as diverse as floating project every year for nearly 20 than once, following LNG 12 in 1998. LNG technology, modular construction, gas years to meet projected demand.” pricing, shipping and market trends. For the Western Australian Government, John Watson LNG 18 provided an unparalleled Grant King, chairman of the LNG 18 opportunity to promote the State’s National Organising Committee, said Chief Executive Officer, LNG capabilities to a global audience Australia was very proud to have hosted the Chevron of industry leaders. LNG X series for the second time. Opening the conference, Western “It was a truly amazing and wonderful “I expect that the LNG projects Australian Premier Colin Barnett said the week filled with insightful discussions in the of the future will be smarter, Australian LNG industry was in a period of program sessions and ample opportunities greener but not necessarily bigger. rapid expansion. to network with thousands of industry Many of them could well be a colleagues,” he said. “Australia’s LNG production capacity will series of phased projects, with increase fourfold over this decade, likely “LNG 18 was an amazing display of staged developments.” taking the country to the status of the Australia’s ingenuity.” world’s leading producer,” Mr Barnett said. The next LNG X event will be held in Peter Coleman Western Australia’s LNG production is Shanghai, China, in 2019, with Russia’s St Chief Executive Officer, expected to more than double in coming Petersburg to play host in 2022. Woodside Energy 14 OIL AND GAS OIL AND GAS

FUTURE OPPORTUNITIES: INVESTOR FORUM FOCUS ON WA

The Department of State Development Department of Mines and Petroleum The investor forum event was coordinated kicked off the week of LNG 18 Director General Richard Sellers highlighted by the Department’s International Trade by hosting an investor forum for Western Australia’s stable and transparent and Investment division, and promoted international visitors, with more than regulatory regime for the resources sector through the State Government’s network 200 participants registering to attend. – which is one of the key factors behind of overseas offices. The event was timed Western Australia’s recent rating as the to take advantage of the large number The State’s most senior government world’s number one destination for mining of dignitaries and oil and gas executives representatives for the oil and gas sector investment by the Fraser Institute. visiting Perth for LNG 18. were on hand to provide attendees with an overview of the State’s industry and Finally, attendees heard from Western Reg Howard-Smith, Managing Director of economy, with a focus on opportunities for Australia’s Chief Scientist Peter Klinken, the Chamber of Minerals and Energy WA, future investment. who outlined the State’s strength in was the Master of Ceremonies. oil and gas-focussed research and State Development Minister Bill Marmion technical innovation. opened the event, and told attendees that now was the ideal time to invest in “The remote locations of Western Australia’s Western Australia. LNG projects have brought significant challenges for producers, but these have “With export potential up, the State led to innovative solutions,” Professor Government understands the most Klinken said. important resources here at LNG 18 – after people and petroleum – are certainty, security and confidence, and these are among our State’s greatest assets,” Mr Marmion said. “WA is open for business and we’re the best place to do business so invest now while costs are moderating.” The event was one of the Minister’s first engagements as State Development Minister, following changes to the Ministry announced on March 29, 2016. Presenters at the event included the Department of State Development’s Director General Steve Wood and Deputy Director General Nicky Cusworth. Ms Cusworth echoed the Minister’s comments regarding costs, noting that while lower commodity prices and the transition between construction and production were creating some challenges, this was also helping to improve competitiveness in other parts of the economy, particularly through the lower exchange rate. Mr Wood highlighted investment opportunities in the oil and gas sector, fuelled by the rapid expansion of Western Australia’s LNG production capacity.

State Development Minister Bill Marmion trials virtual reality technology at the ExxonMobil stand.

15 OIL AND GAS

Western Australian Premier Colin Barnett and media tour the Western Australian Government LNG 18 display booth.

REGIONAL FOCUS AT LNG 18

Opportunities for Western Australian Mr Marmion said Western Australia’s The AIBC event followed an LNG 18 and Indonesian collaboration in the oil capacity for innovation and dependable investor forum led by Mr Marmion earlier and gas sector were in the spotlight service were increasingly valuable assets in the week. th across the region. during the 18 International Conference “I am pleased by the strong attendance at and Exhibition on Liquefied Natural Gas “Although Indonesia and WA are both both events,” he said. (LNG 18). significant exporters of LNG, there are “The investor forum was promoted through great benefits in working together,” An Australia Indonesia Business Council the State Government’s network of Mr Marmion said. (AIBC) breakfast, held to coincide with the overseas offices – including in Jakarta – and conference, included key presentations by “There are more than 800 global and was oversubscribed. Pertamina President Commissioner, Tanri local energy companies and related “With export potential up, the State Abeng and Indonesia’s Director-General equipment, technology and service Government understands the most of Oil and Gas Ministry of Energy and providers based in Perth, many of which important resources here at LNG 18 Mineral Resources, Wiratmaja Puja, as could provide expertise and technical – after people and petroleum – are certainty, well as newly appointed Western know-how to help improve the efficiency security and confidence, and these are Australian Minister for State Development, of Indonesia’s gas sector to meet among our State’s greatest assets. So, as Bill Marmion. increasing domestic demand.” we continue to say across the region and 16 OIL AND GAS

Mines and Petroleum Minister Sean L’Estrange speaking at the Woodside and Siem signing ceremony at LNG 18.

The WA Government booth at the LNG 18 conference and exhibition.

around the world: ‘Now is the best time to “We are very much focussed on invest here in the West’.” broadening ties between Western Australia and Indonesia and the oil and Regional Director of the Western Australian gas sector holds future growth that will Trade and Investment Office in Jakarta, benefit both regions.” Chris Barnes moderated a panel session as part of the AIBC event and said holding the Department of State Development event during LNG 18 had provided an International Trade and Investment Director, ideal opportunity for discussion between Stuart Crockett, and staff at LNG 18 are the two regions. pictured on page 1, “In this issue.” “Indonesia is Western Australia’s sixth largest export market – valued at A$1.7 billion – and eighth largest import market – at A$20 million – and there is great potential between the two partners to further promote and facilitate trade and investment,” Mr Barnes said. 17 OIL AND GAS

DELEGATIONS HEAD TO DMP DURING LNG 18

The Petroleum Division of the Department of Mines and Petroleum (DMP) was kept busy hosting delegations from around the world during LNG 18 held in Perth recently. “An international event like LNG 18 provides a perfect opportunity to meet with government and industry representatives from around the world as Western Australia is well regarded globally for its petroleum expertise,” DMP Petroleum Executive Director Jeff Haworth said. The event attracted more than 5000 participants including delegates, exhibitors, and trade visitors, with more than 250 exhibitors from over 60 countries. Mr Haworth and senior staff held a The Kenyan delegation with senior staff from DMP and DSD. number of high level meetings with trade commissioners from India, Malaysia, Indonesia, Mexico, Canada and Korea. “Discussions during the meetings covered the state of the industry and markets in the various countries and where Western Australian companies are involved in mining or petroleum in those countries,” Mr Haworth said. Meetings were also held with Pakistan’s Minister for Petroleum and Natural Resources, the Indonesian Director General of Oil and Gas, and the president of the Australia Indonesia Business Council. DMP staff made presentations to delegations from Kenya and Ghana and met with leading petroleum companies. The Mexican delegation with Tim Griffin (second left) and Jeff Haworth (right) from DMP. “The delegates described the current situation for resources in Kenya and Ghana, particularly around petroleum exploration and their domestic markets,” Mr Haworth said. Perth is home to major oil and gas producers, mining companies and service companies, and is rapidly becoming a global centre for research, innovation and technology. “LNG 18 gave us an opportunity to promote our research skills and innovation as Western Australia already produces the lion’s share of global mining software and hosts key centres for major operators,” Mr Haworth said. “The event helps to grow the State’s reputation as a global centre for mining and petroleum excellence, and builds on our automation, computing and DMP’s Richard Bruce, Jeff Haworth and Richard Sellers at LNG 18. geophysics leadership.”

18 OIL AND GAS

L-R: Mines and Petroleum Minister Sean L’Estrange; Woodside Chief Operating Officer Mike Utsler; and Siem Chief Executive Officer Idar Hillersoy at the Woodside and Siem signing ceremony.

LNG-POWERED SUPPORT VESSEL ON ITS WAY TO WA

Australian waters will welcome its Woodside Chief Operations Officer Mike Woodside’s new vessel will be greener first LNG-powered marine support Utsler said the announcement positioned – reducing vessel greenhouse gas and vessel after Woodside signed a five- the company as an early adopter of LNG as pollutant emissions and the reliance on year charter contract with Norwegian a marine fuel in the region. imported diesel – while providing safe, company Siem Offshore Australia Pty reliable support to Woodside’s assets in the “We’re thrilled to be the first company to Ltd early this year. Exmouth and Pilbara regions. bring one of these vessels to the southern The announcement was made at a signing hemisphere,” he said. The company said it will continue to seek ceremony in Perth attended by Mines and to expand the application of LNG-fuelling in “Australia is on track to become the world’s Petroleum Minister Sean L’Estrange. transportation in WA. largest producer of LNG, so it makes “This decision by Woodside will increase the perfect sense to build dual-fuel capabilities potential for the LNG marine fuel market to for our marine fleets here. grow, especially given Australia’s abundant “Our LNG tankers use their cargo to power LNG resources,” Mr L’Estrange said. their engines, making them cleaner vessels “There are also real benefits for the that use less diesel. It’s natural that we environment. This vessel will be progress this capability through to our environmentally responsible – reducing support vessels,” he said. greenhouse gas and pollutant emission, as well as the reliance on imported diesel. “It also provides new business opportunities for the State.”

19 Aerial view of the Gorgon Project. Photo: Chevron Australia NEW MINES AND PETROLEUM MINISTER GETS FIRST-HAND LOOK AT GORGON

The commemoration of Barrow Island’s it more economical to transport to global “Future demand for LNG is also looking Gorgon Project in April provided an markets,” Mr L’Estrange said. bright with the recent BP Energy Outlook excellent opportunity for newly appointed forecasting natural gas to be the world’s “One of the advantages for Western Mines and Petroleum Minister Sean fastest growing traditional fuel,” the Australia is our close proximity and L’Estrange to take a first-hand look at Minister said. economic links to key export markets in Australia’s largest single resource project. Asia, as well as sharing a similar time Gas consumption is expected to grow by The significance of the event was zone with 60 per cent of the world’s 1.8 per cent a year to 2035, and global gas highlighted by the attendance of Australian population, including China, Japan, demand to increase by around 50 per cent Prime Minister Malcolm Turnbull, Western South Korea and Indonesia.” to 2040. Australian Premier Colin Barnett, and US He said the Gorgon project was expected “There is no doubt that the long-term Ambassador to Australia John Berry, who to have a life span of 30 to 40 years outlook for Australia’s gas exports is positive joined the Minister on site. and represented the future of reducing with growing demand for more cleaner- Also in attendance were the joint venture greenhouse gas emissions. burning energy from Asia’s emerging partners, customers and Chevron economies,” Mr L’Estrange said. “Part of the reason Chevron built the management, including Chevron project on Barrow Island was the ability to He said Western Australia provided a secure Corporation Chairman and Chief Executive drill down and actually reinject the carbon place for resources sector investment Officer John Watson. dioxide that they extract from the gas back through its supportive government, strong Minister L’Estrange said at full capacity the into reservoirs deep below the surface, economy, mature financial and support Gorgon Project’s three-train liquefied natural reducing greenhouse gas emissions by service sectors, and skilled workforce. gas (LNG) plant, which cools the natural about 40 per cent,” Mr L’Estrange said. “Western Australia’s capital city of Perth is gas to the point at which it condenses to a Gorgon is the latest project in a wave of home to major oil and gas producers and liquid, would supply 15.6 Mtpa of LNG for unprecedented LNG investment and is service companies, and is rapidly becoming export to customers in Asia. backed by another three projects still a global centre for research, innovation “The liquefaction process reduces the under construction – Prelude, Wheatstone and technology in the LNG sphere,” volume approximately 600 times, making and Ichthys. Mr L’Estrange said. 20 “Not only are we a global energy supplier, L-R: Chevron Corporation Chairman and CEO John Watson, Western Australian Premier Colin Barnett, Perth is also a major centre for expertise Mines and Petroleum Minister Sean L’Estrange and Australian Prime Minister Malcolm Turnbull at and services to the petroleum industry in the official opening of Chevron’s Gorgon Project. Photo: Chevron Australia Australia and Asia.” During the commemoration, Chevron Australia managing director Roy Krzywosinski thanked successive governments for their support over the past decade and said the event formally recognised the support from all of Chevron’s partners and the efforts of thousands of people involved. “To engineer, build and operate this legacy project, we have brought together the best and brightest from Chevron, our partners and industry from all around the world,” Mr Krzywosinski said. “The Greater Gorgon area is estimated to contain around 40 trillion cubic feet of natural gas resources, positioning it well to be a reliable long-term supplier of cleaner- burning natural gas for our customers in the Asia-Pacific region and Western Australia.” The Asia Excellence with the first cargo of LNG from Gorgon. Photo: Chevron Australia

Gorgon Facts ·· The project is supplied from the Gorgon and Jansz-Io gas fields located within the Greater Gorgon area, between 130 km (80 miles) and 220 km (136 miles) off the northwest coast of Western Australia. ·· It includes an LNG plant on Barrow Island, a carbon dioxide injection project and a domestic gas plant with the capacity to supply 300 terajoules of gas per day to Western Australia. ·· The Chevron-operated project is a joint venture between the Australian subsidiaries of Chevron (47.3 per cent), ExxonMobil (25 per cent), Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (1 per cent) and Chubu Electric Power (0.417 per cent). ·· Chevron Australia leads the development of the Gorgon and Wheatstone natural gas projects and manages its equal one-sixth interest in the North West Shelf Venture. ·· As one of the world’s largest carbon dioxide injection projects, Gorgon will reduce overall greenhouse gas emissions by 3.6 million tonnes per year. 21 One of the teams competing in the Perth event. Photo: Unearthed Solutions

UNEARTHING WA’S TECH TALENT

Did you know that about sixty per cent Your time starts … now “It is fundamentally different to how a of the world’s mining software has its company would normally procure a The company is best known for holding a origins in the small Western Australian technological solution to a problem. series of “Hackathons” around Australia inner city suburb of West Perth? and internationally. “Previously you would spec out exactly what What’s less well known is that much of this you would like, start a tendering process, For the uninitiated, hackathons bring software was created 15 to 20 years ago. nominate three or so preferred providers, together software developers, designers “We have a history in Western Australia of and industry to develop prototype solutions and eventually commit to the solution. doing very well in this field, but we can’t to real world problems in the resources “You then end up spending significant rest on our laurels,” Unearthed Solutions sector. Teams have 54 hours to come up money on building something that is likely Director Justin Strharsky said. with their prototype and present it to judges, to take longer than expected and cost more industry and their peers. Building Western Australia’s technological than expected, and may not do exactly environment is what drives the work of Mr The problems are created using real what you had hoped.” Strharsky and Unearthed Solutions. world data. This is particularly appealing Mr Strharsky said the hackathons had the to participants. “We exist in a unique moment of potential to turn the traditional procurement opportunity,” Mr Strharsky said. “They really enjoy the opportunity to work model on its head. on live data,” Mr Strharsky said. “Australia, particularly Perth, is one of the “What we do, at very low cost, is expose best places in the world to build and scale “If you are a university student studying resources companies to multiple solutions,” technology companies focused on the computer science or data science, it is rare he said. resources sector. to get a chance to work on both large and The first hackathon was held in Perth as a significant sets of real world data. “The one thing that we lack is a single event in 2014. singular vision and a plan for making “One of the things we’ve managed to do “Since then we have run nine events around the most of our potential to build those with the hackathon is to give opportunities Australia and one in Cape Town, South technology companies. for Australian entrepreneurs to build things Africa,” Mr Strharsky said. on the back of real-world problems. They get “Part of what has been missing is pretty excited about having that opportunity.” “We are also looking at rolling out an recognition of the tech start-up as a international events program to connect vehicle for building that capacity.” It is not just the participants that are resources sector challenges to the best enthusiastic. This is where the work of Unearthed innovators around the world.” is focused. “Industry is very excited to see multiple This includes plans for events in North and potential solutions being developed in South America. response to the challenges set during a hackathon,” Mr Strharsky said. 22 Challenge accepted “The resources industry and the innovation community have really taken up the challenge,” Mr Strharsky said. The success of the event is a testament to the work of Mr Strharsky and Unearthed co-founders Zane Prickett and Paul Lucey. All three had experience in the resources industry. Mr Strharsky and Mr Prickett were Participants gather for the opening. Photo: Unearthed Solutions running tech businesses focused on the industry, while Mr Lucey was the head of innovation and projects at a Next level mining company. With the growth of the hackathon events, the “Zane and I got talking about how hard it team at Unearthed Solutions want to build was convincing large resources companies on that success. to adopt new technologies – it was a common problem,” Mr Strharsky said. “One of the things we have been successful at to date is teaching the industry what the “When we met Paul, he told us that he had hackathon is,” Mr Strharsky said. found the same challenges even working within a resources company. He said it “We have an established reputation for was difficult to motivate his organisation delivering value with these events. to trial new products and employ them in “Now we want to teach people about operational environments.” our accelerator.” In talking, the trio realised there was a significant opportunity to help others Mr Strharsky said the accelerator overcome some of the hurdles they program was the next logical step in had experienced. the start-up process. “We’re interested in creating opportunities “When the prototype solutions emerge from for the next generation of Australian our hackathon events they are fantastic, technologists,” Mr Strharsky said. but they only represent potential. The next step is converting the potential into realised It is an opportunity the State Government State Development Minister Bill Marmion opportunity,” he said. is keen to support. opening the 2016 Perth Hackathon. Photo: Unearthed Solutions The six-month mentor-driven accelerator State Development, Finance and Innovation program helps the best of these teams and Minister Bill Marmion officially opened the The outsiders most recent hackathon in Perth and praised prototypes develop further. the event’s success. The work of Newton Labs and other “It gives them access to mentors, site trials, participants is attracting a lot of interest “There is a perception the resources sector industry membership. All of the things they from industry. is just about digging up minerals and need to build a growing global business,” exporting,” Mr Marmion said. “One of the things we hear consistently Mr Strharsky said. from our industry supporters is how “What people don’t realise is that the mining One of the program’s alumni is impressed they are that people with very and petroleum industry is successful due Newton Labs. little exposure to the resources industry to technology, including sophisticated Mr Strharsky said Unearthed Solutions was software, the majority of which originates can offer so much insight regarding a expecting 8-10 businesses to be a part of right here in Australia.” challenge, in such a short period of time,” Mr Strharsky said. this year’s accelerator program. Mr Marmion also highlighted one of the “The continued development of the event’s success stories – Newton Labs. “Industry really values seeing what people outside their normal reach can offer. program is something we’re really excited “Newton Labs won the event in 2014 with about,” he said. a boulder detection system set to save “These are people who would not the mining industry hundreds of millions of necessarily make it through their hiring “Where we can excel better than any place dollars, which is already being rolled out practices, or have skills that may not be in the world is in developing technology for across several mines,” Mr Marmion said. suited to some of their core businesses, the resources sector. but they have a diversity of approaches and Late last year the company was named “We’ve done it before and have everything insights that are extremely valuable. winner in the Emerging Innovation we need here. We just need to articulate category at the 2015 WA Innovator of “They find ways of doing things that our advantages and encourage and nurture the Year awards. increase efficiencies.” local talent and attract international talent.” 23 Department of Mines and Petroleum Director General Richard Sellers at the Guangdong Daya Bay Nuclear Power Station.

DMP ON THE MONEY WITH GOLD AND LITHIUM

Gold and lithium watchers at this year’s Former Mines and Petroleum Minister “Luckily, the trip to Hong Kong came hard Mines and Money Conference in Hong Bill Marmion was scheduled to give the on the heels of the Fraser Institute report Kong could be excused for thinking address but was unable to attend due to saying that even at the bottom of the Western Australia’s Department of Mines parliamentary commitments. downturn, Western Australia is still the best and Petroleum (DMP) has a working destination for mining investment, ranking “The keynote address is normally reserved crystal ball. number one in the list. for heads of big industrialised miners or “Armed with that fantastic message, we The classic precious metal and the Ministers in other jurisdictions, so it was too went over there and focused heavily on two new gold of energy storage were hot good an opportunity to pass up,” sectors – gold and lithium.” favourites for investor interest, and DMP Mr Sellers said. was right on the money in focusing on Mr Sellers said that the message he “The plan was always to promote Western Western Australia’s growing strength in delivered on gold to the conference was both commodities. Australia as part of our investment attraction a reminder that there had been some activities to get capital investment during very large discoveries of high-grade gold DMP Director General Richard Sellers the down cycle because it’s particularly prospects in Western Australia’s new placed WA centre stage when he delivered important to do this sort of work when mineral provinces. the keynote address at the highly influential industry isn’t at a peak. conference which attracted a crowd of The Tropicana Joint Venture and Gold about 2000, including investors, financiers “We want people to remember why they Road Resources’ Gruyere deposit in the far and mining company representatives, from invested in Western Australia and to bring Eastern Goldfields, Doray Resources’ Andy more than 30 countries. us new opportunities through that process. Well mine in the Murchison region, and a 24 new find at East Kundana near Kalgoorlie “The company is very keen and looking The Sinosteel meeting covered a number were among the highlights of the gold to invest in gas and oil in the Perth and of issues including magnetite supply and boom promoted at the conference. Canning Basins.” demand issues and the extension of one of the largest and most successful joint venture “Western Australia’s lithium story really drew The meeting with CITIC Pacific brought projects in Western Australia “the 30-year some interest because of the recognised news that all six of the crushing circuits Channar Joint Venture between Sinosteel upside in the market,” he said. at Cape Preston would be in production and Rio Tinto” that will enable sales of up later this year. Mr Sellers said increased demand had to 70 million tonnes of iron ore to Sinosteel created a powerful opportunity for Western Corporation over the next five years. Australia’s lithium players to come into the market or increase their exports. “We’ve got Greenbushes (Talison Lithium) doubling its production and it still has a significant mine life, and there’s Mt Caitlin in Ravensthorpe (General Mining/Galaxy Resources) coming back into production,” he said. “We’ve also got Mt Marion in the Goldfields (Neometals/Mineral Resources) coming into production and there are two big projects in the Pilbara (Lithium Australia/ Pilbara Minerals) that are going through their approval phases to be investment-ready early next year.” Mr Sellers said that to make sure DMP’s message got maximum exposure, all of the slides he presented were in English and Mandarin. “We actually got better social media feedback to our talk from the Mandarin Department of Mines and Petroleum Director General Richard Sellers presented at the Mines slides. In fact, there were people in our and Money Conference in Hong Kong. audience while I was presenting who were using their tablets and mobile phones to photograph our entire slide sets and they put those on their blogs and social media Going nuclear Looks aside, the plant produces enough sites, almost at the same time.” power from its six reactors to provide all of The Hong Kong trip gave the Director During his three days in Hong Kong, Mr Hong Kong’s power with a large amount General the chance to make his first visit to Sellers attended a number of high-level left over for Shenzeng province. a nuclear power station, the Guangdong talks with CITIC Pacific and Sinosteel Daya Bay Nuclear Power Station in nearby “It was the first civil power station to International, as well as a major potential Shenzeng Province on the mainland. be built on the mainland and the China investor, GOGC Petroleum. General Nuclear Power Group which “There was no government agenda,” “We spent a very significant amount of time controls it has improved on the original Mr Sellers said. “It was a fact-finding with GOGC Petroleum and their financier, French technology to the point where it’s tour that has resulted in me being better the China Minsheng Bank,” he said. now the preferred builder for some of the informed about nuclear power generation.” new stations in Europe,” Mr Sellers said. “Important items of discussion included Mr Sellers was amazed by the plant’s the due diligence needed to make sure The International Energy Agency has presentation. investors minimise their investment risk predicted that nuclear demand will here in Western Australia and the fact that “Everywhere is so clean,” he said. “It’s increase 86 per cent from 2478 to 4606 DMP’s excellent geoscience information more like walking through manicured terawatt hours between 2013 and 2040. was freely available. botanical gardens. I’ve walked around “Western Australia is highly prospective for lots of industrial plants and never seen “We spoke to a range of investors in Hong uranium, so a great economic opportunity anything like it.” Kong, but this was an important follow-up exists here,” Mr Sellers said. meeting to a visit by GOGC to Western Australia earlier this year.

25 10-year milestone marks growth of Western Australia’s uranium industry

The Wiluna landscape. Photo: Toro Energy

A decade ago Paul McCartney finally As Western Australia’s Environment Minister “WA’s four uranium projects promise turned 64, Twitter was launched, and the in October 2012, Mr Marmion granted to employ 1300 people and create a West Coast Eagles beat the Swans by environmental approval for mining the A$1 billion export industry, so uranium is a solitary point to take out their third Centipede and Lake Way deposits, and a good news for local communities and the AFL Premiership. processing facility based at Centipede. State as a whole,” he said. Also in 2006, Western Australia’s fledgling The Environmental Protection Authority is New Mines and Petroleum Minister Sean uranium industry registered its first major now reviewing public submissions on Toro’s L’Estrange is also a strong supporter of a milestone on 24 March, when Toro expansion plans to include the Millipede Western Australian uranium industry and is Energy Ltd listed on the ASX and raised and Lake Maitland deposits. keen to see WA’s first mine begin exporting. A$18 million dollars. Mr Marmion said Western Australia was “I will do everything possible to encourage Back then, Wiluna wasn’t even on the well-placed to capitalise on this expansion, the responsible development of what is company’s radar, but Toro’s project in the with world-leading regulation ensuring safe potentially a billion-dollar per annum export Mid West region of Western Australia is now and responsible development. industry,” he said. poised to deliver exports from the State’s first working uranium mine. In March this year, the company held a celebration at Wiluna to mark its 10-year journey. Then Mines and Petroleum Minister Bill Marmion told the gathering that the project highlighted the importance of the State Government’s long-term support for Western Australian uranium mining and the business and job opportunities it would generate. “The State Government’s determination to back this industry has already seen more than A$300 million invested in uranium exploration and development,” Mr Marmion said. “Toro’s Wiluna project is expected to employ up to 350 people during construction and then support 170 full-time jobs, with a production life of at least 25 years.” Mr Marmion said it was also good for the global environment, with Toro aiming for annual uranium concentrate exports of 900 tonnes a year from four mine sites in the Wiluna area. A map of Western Australia’s proposed uranium mines and areas of prospectivity. “That translates into a potential saving of 33 million tonnes a year of carbon dioxide ·· WA’s four potential uranium projects are Yeelirrie, Wiluna, Mulga Rock and Kintyre emissions, compared to coal-fired power ·· Yeelirrie is the largest resource (127.3 million pounds), followed by Wiluna (80.5 generation,” he said. million pounds), Mulga Rock (75.03 million pounds) and Kintyre (55 million pounds)

26 Department of Mines and Petroleum Geological Survey of Western Australia Assistant Director Don Flint at the Western Australian booth at PDAC. Fraser Institute fame helps sell Western Australia’s message in Canada

Will Western Australia attract “A lot of people came up to us to “All of the States have run incentive investment as a result of its strong congratulate Western Australia on getting schemes but ours has been the biggest presence at the recent Prospectors the top gong for investment attractiveness,” and has certainly had the most impact.” and Developers Association of he said. Mr Flint said that the most popular attraction Canada (PDAC) Conference? “I made a point of explaining that Western at the Western Australian booth was the You could say it’s on the cards. Australia was also actually equal top with ‘Hot Spots’ map. The first thing Geological Survey of Western Finland and Sweden in the geosciences “It’s such a colourful map that the ‘wow’ Australia (GSWA) Assistant Director Don databases index and that our score was factor is enormous,” he said. “It just draws Flint and Land Use Geoscience Manager 100 per cent, but we had been relegated to people to the booth and they’re always Warren Ormsby did when they sat down third on a ‘countback’ basis.” impressed by the sheer size of Western at their desks after attending PDAC 2016 Australia and the huge number of mines Mr Flint said he delivered the message in Toronto was to start going through the and deposits,” he said. dozens of business cards they were given during his talks with people and during “They’ll come up and goggle at all the during four days working on the DMP his presentation said that the Exploration gold deposits in the Eastern Goldfields or booth and networking during the Incentive Scheme (EIS) was a key reason the huge clusters of iron ore deposits and conference in March. for Western Australia’s success. mines in the Pilbara and just shake their As he has done every year, Mr Flint has “When the EIS started in 2009, we were heads in wonder and awe. replied to each and every person who averaging about 20th in the major Fraser “And there are always the people who expressed interest in Western Australia’s Institute indices and now we’ve gone to the worked in WA somewhere and they’re resources sector and sought further top of the world,” he said. trying to find the dot showing where they information on investment opportunities at “EIS funding has enabled us to improve used to work so they can reminisce about the conference. dramatically in the geosciences area the old days.” “You never know which lead might convert by acquiring a huge amount of data, to additional investment in Western plus we’ve also improved our data Australia,” Mr Flint said. delivery systems. “People came up to me and said they “But it’s not just data. There’s a lot of were impressed that in previous years knowledge and knowledge-based products DMP staff had followed through by being provided to industry in addition to the sending information. data-driven products.” “The number of people at PDAC is Mr Flint said he stressed the point that mindblowing – about 22,000 this year.” GSWA had gathered as much information Mr Flint said that people at PDAC were over the past six or seven years as it well aware of Western Australia’s strong probably would have done in 30 or 40 years performance in the recent Fraser Institute under normal budget scenarios. rankings, scoring first in the world for investment attractiveness and best practice “The boost to Western Australia through mineral potential, third for geoscience our EIS-driven geoscience efforts will add databases, and eighth on the policy benefits to the Western Australian economy Don Flint with some of the business perception index. for decades to come,” he said. cards he brought back from PDAC.

27 TURNING BLACK DIAMOND INTO A COMMUNITY JEWEL

When the sun glistens through the jarrah “A number of environmental issues have “The creation of the new Black Diamond trees onto the lake at Collie’s Black also been highlighted, including poor Working Group, and the subsequent Diamond pit, locals in this coal mining water quality in the pit, illegal dumping and success of its first meeting is terrific news town in Western Australia’s South West unauthorised camping. and a huge step forward towards achieving are used to seeing people turn up to a long-term solution for this legacy site,” “The introduction of the award-winning take in the unique scenery. Dr Gorey said. MRF has now given us the opportunity However, a group of visitors that arrived to address the environmental and safety “The planning group members will form in April heralded a milestone – the first problems associated with the site.” an invaluable part of ongoing rehabilitation step towards the rehabilitation of this plans and will be in a position to provide The primary focus of DMP’s proposed unmanaged recreation site about five valuable advice which will greatly assist the rehabilitation plans centres on managing kilometres west of the townsite. department throughout the coming months. the safety risks associated with the steep The Black Diamond Working Group – pit wall on the southern side of the Black “Extensive consultation with stakeholders, made up of representatives of the Shire of Diamond site, as well as revegetation works including members of the local community, Collie, the Black Diamond Action Group, to improve water quality. will be absolutely crucial to ensuring this landowners, the Collie Visitor Centre, project is a success. Other work may be undertaken and the Department of Mines and Petroleum would be based on the outcomes from “That is why it has been so encouraging (DMP), the Department of Lands and the the site assessment and ongoing to see the creation of the working group Department of Parks and Wildlife – had stakeholder consultation. and the eagerness of so many local only been formed the day before and was residents to attend the first forum and have making its first official site visit. A successful community forum was held at their voices heard. Allanson Primary School last month to give Black Diamond became a popular tourist local residents the chance to have their say spot in the 50s after coal mining ceased on the proposed rehabilitation plans. and the pit was filled with water. But despite its beauty, locals have raised concerns about the safety of the pit wall, illegal dumping, unauthorised camping and anti-social behaviour for many years. As a result, DMP selected Black Diamond as the first of four pilot sites to benefit from the Abandoned Mines Program – using funds from the pioneering Mining Rehabilitation Fund (MRF). DMP Executive Director Environment Dr Phil Gorey said the aim was to address the site’s environmental and safety issues to establish a platform which the community could build on to develop future uses for the land. “Over the years the Black Diamond site has become an unmanaged recreation area and the local community has understandably raised a number of concerns about the potential safety hazards this brings,” An aerial view of Black Diamond. Dr Gorey said. A picturesque view of the Black Diamond site.

“By liaising with all interested parties we “The MRF has overwhelmingly won the “In addition, for the first time, the State will also be able to assist local people to support of government, the community and Government is now in a position to access develop a long-term site solution that meets the mining industry since it was introduced,” a dedicated funding source which can be their needs.” Dr Gorey said. used to rehabilitate historical abandoned mines throughout Western Australia.” The proposed works scheduled to be “This pioneering initiative has enhanced undertaken at the Black Diamond site have the State’s ability to reduce the contingent Consultation over the proposed been made possible by the introduction liability to the State and manage and rehabilitation at Black Diamond will of the MRF – a world-first mining security rehabilitate abandoned mine sites, leading continue over the coming months with policy contributed to by industry. to better environmental and community work expected to start in the middle of safety outcomes. the year. Interest generated from the fund can be used to rehabilitate legacy abandoned mine “The MRF was developed through sites throughout Western Australia. extensive stakeholder consultation and is continuing to have a positive impact throughout Western Australia.

STAGE 1 Legend 1 Form the working group and commence Free hold land consultation by end of March 2016 State forest STAGE 2 Site assessment and possible temporary Reserves 2 road closure by end of June 2016

STAGE 3 3 Groundworks and likely temporary road closure by end of December 2016 ALLANSON

STAGE 4 STEEP, UNSTABLE 4 Ongoing monitoring and PIT WALL possible further works D PIT LAKE AMON K DI LAC 3 2 B

RGUSON R FE OAD 4

LIE RIVER COL

SEASONAL WATERWAY

A map of proposed works for Black Diamond. * This site map is indicative of site layout and proposed works. It is not to scale.

29 Commenced Operations Committed Projects

AGRICULTURE IRON ORE PROCESSING AMMONIUM NITRATE

East Kimberley – Ord – Ord/East Kimberley Pilbara – Cape Preston – Sino Iron Pilbara – Burrup Industrial Estate Site D – Yara Expansion Project CITIC PACIFIC Pilbara Nitrates WA STATE GOVERNMENT The Sino Iron project is located at Cape Preston, YARA INTERNATIONAL ASA The State Government has invested $322m to 100km south west of Karratha. When completed, Yara Pilbara Nitrates Pty Ltd (YPN) is an construct irrigation channels, roads and off-farm it will be the largest magnetite mining and incorporated joint venture between Yara International infrastructure to encourage private investment in processing development in Australia, with a mine ASA (Yara) and Orica Limited (Orica). YPN has irrigated agriculture on the Ord lands in the East life of more than 25 years. The first shipment of executed an Engineering, Procurement and Kimberley Region. Kimberley Agricultural Investment magnetite concentrate to China occurred in late Construction contract for the construction of a world 2013. Since then, optimization of the first two class circa 330,000tpa Technical Ammonium Nitrate (KAI) a subsidiary of China’s Shanghai Zhongfu production lines has occurred. Line 3 is currently (TAN) plant to be located on the Burrup Peninsula. Group is developing 13,400ha of irrigation land in in load commissioning, with Line 4 to follow Ammonia feedstock will be supplied from Yara the Goomig and Knox Plain areas. KAI is seeking to shortly. Commissioning of the final two lines will Pilbara Fertilisers Pty Ltd which owns and operates establish a sugar industry in the Kununurra region, commence in 2016. On completion, the project will its facility directly adjacent to the proposed location subject to future land availability, and in the short comprise in-pit crushers, a 29km slurry pipeline, for the new TAN plant. Yara will be the operator of term is producing chia and sorghum. The State a pellet plant and annual capacity to produce up the TAN plant and Orica will manage the product has recently released a further 5,000ha of Ord to 24 million tonnes of magnetite concentrate. sales and distribution of the TAN product. It is West Bank and Mantinea lands to KAI and TFS, The downstream processing facility has required intended that all manufactured product will be sold established producers of sandalwood. significant investment in dedicated supporting into the Pilbara region. Work on the project has Expenditure: $322m. infrastructure including a new port facility, a 51 commenced and it is expected that the new plant gigalitre desalination plant and a 450 megawatt will be commissioned in 2016. combined cycle gas fired power station. HEAVY MINERAL SANDS Expenditure: $800m. Expenditure: $11.1b. Employment: Construction: 500; Operation: 65 Keysbrook – Heavy Mineral Sands Mine Employment: Construction: 4000; Operation: 1000 MZI RESOURCES LTD OIL & GAS DEVELOPMENTS The Keysbrook Mineral Sands Project, located OIL & GAS DEVELOPMENTS near the township of Keysbrook approximately Carnarvon Basin – Greater Western Flank 70km south of Perth, commenced heavy mineral Carnarvon Basin – Greater Western Flank Phase 2 Phase 1 concentrate (HMC) production on 29 October WOODSIDE ENERGY 2015, three weeks ahead of schedule. The project WOODSIDE ENERGY The Greater Western Flank Phase 2 Project will involved the construction of a new mine and wet The Greater Western Flank Phase 1 Project will develop 1.6 trillion cubic feet of raw gas from the concentration plant, and upgrades to the existing develop the Goodwyn GH and Tidepole fields, combined Keast, Dockrell, Sculptor, Rankin, Lady mineral separation (MSP) plant owned by Doral via a subsea tie-back to the existing Goodwyn Nora and Pemberton fields via a 35km subsea Mineral Sands in Picton, near Bunbury. Secondary A Platform. First gas was produced from the tie-back to the existing Goodwyn A platform. processing of approximately 110,000tpa of Goodwyn GH field in late 2015 with further Initial project start-up is expected in the second Keysbrook HMC commenced at the Picton MSP production from the Tidepole field expected from half of 2019. plant in November 2015. The project is expected early 2017. Expenditure: $2.8b. to produce 67,500tpa of leucoxene products and Expenditure: $2.5b. 28,700tpa of zircon concentrate, exported from the Bunbury Port. In late December 2015, the first Carnarvon Basin – Persephone Project shipment of zircon concentrate was exported to Kalgoorlie – Tropicana Gas Pipeline Project WOODSIDE ENERGY Tricoastal/Wensheng of China under a long-term ANGLOGOLD ASHANTI/APA GROUP JOINT VENTURE Woodside Energy Ltd, as operator of the North offtake agreement. The first shipment of leucoxene West Shelf Joint Venture is developing the product was exported to US customer Chemours The 293km Eastern Goldfields Pipeline (EGP) was successfully commissioned in January 2016. The Persephone gas field. The development involves in early March 2016. The total ore reserves at two subsea wells and an 8km subsea tieback to the Keysbrook were recently increased from 26Mt to Minister for Mines and Petroleum officially opened the $140million pipeline on 10 February 2016. The EGP existing North Rankin Complex. Fabrication activities 72Mt at an average grade of 2.2 per cent total and offshore brownfield work has commenced, with heavy minerals. Based on current production rates, is a significant piece of infrastructure for the State and delivers gas from fields off Western Australia’s Pilbara start-up expected in early 2018. the expected mine life has increased from 5.5 years coast to mining projects in the Goldfields region, Expenditure: $1.2b. to 16 years. reducing the reliance on diesel fuel, and provides the Expenditure: $75m. potential to bolster the development of new projects Carnarvon Offshore Basin – Barrow Island – Employment: Construction: 100; Operation: 60 in one of the State’s most productive resource regions. Despite tight approval timelines all key Gorgon Project approvals were provided within project timelines. GORGON JOINT VENTURE IRON ORE The project was completed 1 month ahead of The Gorgon Foundation Project on Barrow Island, Pilbara – Roy Hill Iron Ore Mine & Infrastructure schedule and within budget. now in its seventh year of construction, is a three train LNG development with a nameplate capacity ROY HILL HOLDINGS PTY LTD Expenditure: $140m. of 15.6Mtpa and includes a domestic gas plant Employment: Construction: 250 The Roy Hill Iron Ore Project is located 115km capable of delivering at least 300TJ/d of gas north of Newman and owned by Roy Hill Holdings to the mainland. Cost estimates for the project Pty Ltd, a private company majority owned by construction are expected to total more than Hancock Prospecting Pty Ltd, with key international A$55b. The project involves the processing of gas investment partners. Capital expenditure for the from both the Gorgon and Jansz/Io gas fields and project was $10b. Roy Hill took operational control includes potentially the largest commercial CO2 of the Mine, Rail and Port infrastructure from EPC geosequestration project in the world. Train one Contractor Samsung C&T on 4 February 2016, and start up and first shipment of LNG commenced is in the process of ramping up to full name plate in March 2016 with trains two and three being production capacity of 55mtpa, which is anticipated commissioned later in the year. by the end of 2016. The project is planned to Expenditure: $55b. produce high grade ore for 20 years following ramp- Employment: Construction: 8000; Operation: 300 up. The project consists of a multiple pit mining operation, mine processing infrastructure, a 344km heavy haul railway, and significant new port facilities at the Port Hedland inner harbour. Expenditure: $10b. Employment: Construction: 5300; Operation: 2000

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

Pilbara – Wheatstone LNG Development HEAVY MINERAL SANDS Pilbara – West Pilbara Iron Ore Project CHEVRON AUSTRALIA PTY LTD API MANAGEMENT PTY LTD Shark Bay – Coburn Zircon Project CommittedChevron Australia ProjectsPty Ltd as Operator of the The Australian Premium Iron Joint Venture is Wheatstone Project is currently working towards STRANDLINE RESOURCES LIMITED proposing to develop the West Pilbara Iron Ore the construction of two LNG trains, a domestic Strandline proposes to develop the Coburn Project. Stage 1 of the project is based on the gas plant and port facilities at the Ashburton North zircon project, located south of Shark Bay and production of 40Mtpa of direct shipping iron ore Strategic Industrial Area near Onslow. The Project approximately 250km north of Geraldton. It contains from deposits, including Red Hill and Mt Stuart will initially produce 8.9Mtpa of LNG and have a total ore reserves of 308Mt at an average grade of deposits, located 35-80km south west of 200TJ per day domestic gas plant connected to 1.2 per cent heavy minerals, all of which lie within Pannawonica. The ore is to be transported by the Dampier-to-Bunbury Natural Gas Pipeline. The the portion of the project area that has received a 282km heavy haul railway for export via the Project is targeting first LNG by mid-year 2017. government environmental approvals for mining. At proposed multi-user port at Anketell. Both facilities Expenditure: $29b. a mining rate of 23.4Mtpa, the project is expected to are proposed to be constructed and operated produce 49,500tpa of zircon, 109,000tpa of chloride by Aurizon Holdings Ltd. State and Federal Employment: Construction: 7200; Operation: 400 ilmenite and 23,500tpa of a mixed rutile-leucoxene environmental approvals for the mine, rail and port over its 19 year mine life. The company has secured elements of the project are in place. Subject to the POWER STATIONS all of the approvals required to commence mining and successful completion of feasibility studies, and processing operations at Coburn, and is continuing receipt of final regulatory approvals, the company Boodarie Industrial Estate – South Hedland to pursue discussions with parties interested in anticipates construction to commence following Power Station becoming a strategic partner in the project. a decision to proceed by the joint venturers and TRANSALTA Expenditure: $173m. completion of funding arrangements. In July 2014, TransAlta Energy (Australia) Pty Employment: Construction: 170; Operation: 110 Expenditure: $6.8b Ltd announced it will build, own and operate a Employment: Construction: 3500; Operation: 900 150 megawatt power station in South Hedland’s INFRASTRUCTURE Boodarie Industrial Estate. The plant will consist NICKEL of a combined cycle gas plant, featuring both Bunbury – Multi-User Bulk Terminal Facility – natural gas and steam turbines. The A$570 million Port of Bunbury Mt Windarra – Windarra Nickel investment will help meet the future energy needs POSEIDON NICKEL NL of the region through a 25-year agreement with LANCO RESOURCES AUSTRALIA PTY LTD both Horizon Power and Fortescue Metals Group. Lanco Resources Australia Pty Ltd proposes to Poseidon Nickel Ltd has submitted a project The plant is being designed to allow for expansion construct a 15Mtpa Multi-user bulk terminal facility development proposal for the redevelopment of and there is a possibility that other customers may located at the Berth 14A site within the Inner harbour the Mt Windarra underground nickel mine and be added in the future. Construction commenced of the Port of Bunbury. The facility will include ship associated project infrastructure at Mt Windarra. in February 2015 and is expected to create up to loading for up to 85,000 tonnes, fully covered and 250 jobs. Full commissioning is expected to be dust suppressed conveyor galleries, a storage shed, OIL & GAS DEVELOPMENTS complete mid 2017. with internal stacker reclaimer, up to 750m LOA, 140m Expenditure: $570m. wide and 40m high. The train unloading and rail loop Canning Basin – Buru Canning Basin Tight Gas load in facility will be able to accommodate Coal, BURU ENERGY Employment: Construction: 250; Operation: 20 Iron Ore, Bauxite and other bulk ore materials. The Terminal will have capacity to expand. Environmental The Buru Energy/Mitsubishi joint venture (JV) approvals have been obtained with construction is appraising the commercial potential of the AGRICULTURE expected to commence by early 2017 ready for Laurel Formation, a large onshore natural gas operation in 2020. resource located in the Canning Basin. Following East Kimberley – Project Sea Dragon the successful completion of the 2015 tight gas SEAFARMS GROUP LIMITED Expenditure: $400m. stimulation program on and near Noonkanbah Employment: Construction: 750; Operation: 100 Station, Buru commissioned DeGolyer and Seafarms Group is a Queensland based producer MacNaughton, a specialist tight gas and of farmed prawns. Seafarms proposes to invest unconventional resource assessment consulting up to US$1.45b over the next eight years in Dampier Peninsula – Browse LNG Precinct group to undertake an independent assessment of Project Sea Dragon, a large scale, integrated, land WA STATE GOVERNMENT the gas and liquids potential of the Laurel Formation based aquaculture project to produce black tiger in the Valhalla area. This independent assessment prawns for export markets in Asia. The aquaculture The State Government is developing the Browse has confirmed that the region contains a nationally component of the project will be located in the Liquefied Natural Gas (LNG) Precinct approximately significant multi TCF wet gas accumulation. Future Northern Territory and is planned as a staged 60km north of Broome. By focussing development on ground works will provide additional contracting, development commencing with Stage 1, 1,000 at a suitable location, the Precinct will minimise employment and training benefits to Noonkanbah hectares of ponds and supporting infrastructure the environmental footprint of gas processing and Community who have been heavily involved in on- with an estimated capex of $150million. In Western any social impacts in the region while maximising ground works to date. Australia a founder stock and quarantine centre opportunities for the local community to benefit from is proposed for Exmouth, a processing plant is development of the Browse Basin gas fields. The Expenditure: $40m. proposed for Kununurra with Wyndham port being Precinct will have the capacity to accommodate Employment: Operation: 30 utilised for export and import. The project will create at least two LNG processing operations, with a approximately 300 jobs during construction and combined capacity of up to 50Mtpa. The State Stage 1, 700 direct jobs when fully operational. A Government has acquired the land for the Precinct URANIUM and will secure all relevant approvals to ensure the Final Investment Decision on Stage 1 of the project Northern Goldfields – Yeelirrie – Yeelirrie Uranium is expected in mid-2016 and financial close by the Precinct is ’project ready’. end of 2016. CAMECO AUSTRALIA PTY LTD IRON ORE Cameco Australia proposes to develop the Yeelirrie project in the North-eastern Goldfields, near Wiluna. Pilbara – Balla Balla Infrastructure Project The project entails open cut mining of shallow BALLA BALLA JOINT VENTURE deposits of uranium ore, treatment in a plant to be established at the site, and development of The Balla Balla Infrastructure (BBI) project proposes to associated infrastructure. The project will process construct and operate a multi-user transhipment and up to 2.4mtpa of uranium ore over about 17 years. stockyard facility at Balla Balla Harbour and approx The resultant uranium oxide will be transported 160 km railway traversing from Balla Balla Harbour to South Australia by road for export to overseas between the Milstream Chichester and Mungaroona markets. The environmental assessment process Range National parks towards the central Pilbara. has commenced. Cameco will advance the project The BBI project is currently designed to service at a pace aligned with market conditions. the Flinders Mines, Pilbara Iron Ore Project as its foundation customer. Employment: Construction: 500; Operation: 225 Expenditure: $2.8b.

This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australian resources industry. 31 Significant resource projects in Western Australia

Western Australia continues to lead the way as Australia’s premier resources investment destination. There are more than A$120 billion worth of projects either committed or under consideration for the State during the next few years. These would create more than 30000 construction jobs and more than 5000 permanent jobs.

This section is intended as an overview and does not constitute an exhaustive list of projects within the Western Australia resources industry. Based on company announcements.

Significant Projects as at May 2016

Project Value Employment (estimated A$m) Construction Permanent

Iron and Steel

API Management Pty Ltd – West Pilbara Iron Ore Project 6800 3500 900

CITIC Pacific – Cape Preston Mine & Processing Projects 11100 4000 1000

Roy Hill Holdings Pty Ltd – Roy Hill Iron Ore Mine & 10000 5300 2000 Infrastructure

Sub Total 27900 12800 3900

Oil, Gas and Condensate Pay and subscribe Browse LNG Precinct n/a n/a n/a Buru Energy – Buru Canning Basin Tight Gas 40 100 30

to Prospect Chevron – Wheatstone LNG 29000 7200 400

Gorgon Joint Venture Gas Processing Project 55000 8000 300

ONLINE Woodside Energy – Greater Western Flank Phase 1 2500 n/a n/a Did you know you can register for the Woodside Energy – Greater Western Flank Phase 2 2800 n/a n/a digital edition of Prospect for free by Woodside Energy – Persephone 1200 n/a n/a

signing up to the RSS feed on the Sub Total 90540 15300 730

Prospect page of DMP’s website? Other Once registered, you will receive Cameco Australia – Yeelirrie Uranium n/a 500 225 notification as soon as a new edition of Lanco Resources Australia Pty Ltd – Multi-User Bulk 400 750 100 Prospect is available to view online. Terminal Facility – Port of Bunbury

Just go to: Ord East Kimberley Expansion Project 322 n/a n/a www.dmp.wa.gov.au/prospect TransAlta – South Hedland Power Station 570 250 20

to sign up. Yara International ASA – Yara Pilbara Nitrates 800 500 65

You can also register and pay for Yara International ASA – Yara Pilbara Nitrates 800 500 65

hard copy subscriptions on the Sub Total 2092 2000 410

Prospect webpage. TOTAL 120532 30100 5040

All currency figures are in Australian dollars unless otherwise specified. Are your contact Abbreviations Key b billion m million details up-to-date? EPC Engineering, Procurement and Construction Mt million tonnes GL gigalitres Mtpa million tonnes per annum If your contact details are changing ha hectares MW megawatts or have changed you can now JV joint venture t tonnes update them online. km kilometres THM total heavy mineral LNG liquefied natural gas TJ terajoules www.dmp.wa.gov.au/prospect LOA length overall tpa tonnes per annum 32 Major Resource Projects

Reindeer Gnu Caribou June 2016 Corvus Wandoo Port Hedland Salt Ridley Tusk Port Hedland |n Oryx Stag Chamois Yara Pilbara NWSV LNG Fertilisers Pluto LNG |n Cape Lambert Mineral symbols Commodities |n |n Balla Balla Monty Dampier |n Anketell Tabba Tabba Ta Precious metal Ag...... Silver JosephineBaker Cape Lambert Salt Creek Zn Cu Pb Au (or as shown) Dampier Salt Balla Balla Fe V Ti Au...... Gold Cape Preston Sherlock Bay Steel alloy metal |n|n Cape Preston East Whim Creek Cu Spinifex Ridge Mo Cu Chert..... Chert Ni (or as shown) Cu...... Copper Maitland River Devil Creek Gas Miralga Creek Radio Hill Pilgangoora Li Ta Speciality metal Fe...... Iron Abydos Ti–Zr (or as shown) Sino Iron Whundo Zn Cu Hem...... Hematite Wodgina Sulphur Springs Zn Cu Pb Base metal Munni Munni Pt Pd Wodgina Ta Balmoral South Iron Bridge Mag K...... Potassium Iron Kln...... Koolinite, Kaolin Alumina Li...... Lithium All sites are bauxite Corunna Downs LNG...... Liquefied natural gas Mt Webber McPhee Creek Coal and lignite LPG...... Liquefied petroleum gas Mesa A – Warramboo Cookes Creek W Industrial mineral Mag...... Magnetite Middle Robe Mesas Processing plant Mica...... Mica Mesa J Mn...... Manganese Nullagine/Millennium Petroleum symbols Mo...... Molybdenum Bungaroo Creek Caliwingina Nullagine CID Gas field Ni...... Nickel Bungaroo South Firetail Investigator Mesa – Ant Hill Mn PIOP/Flinders Mulga Downs Oil field Pb...... Lead Pd...... Palladium West Pilbara Serenity Kings Oil and gas field Homestead Phos..... Phosphate Silvergrass Cloud Break Significant gas discovery Christmas Creek Pt...... Platinum Nammuldi Processing plant Mt Stuart JV Marillana/Brockman Roy Hill REE...... Rare earth elements Koodaideri Marillana Oil / gas pipeline, operating Sisd...... Silica sand Paulsens Brockman 4 Western Turner Extension Nyidinghu Syncline Marandoo Oil / gas pipeline, proposed Ta...... Tantalum Beasley River Yandi/BHPB Iron Valley Ti...... Titanium Tom Price Yandicoogina/HI Rocklea CID Hope Downs 1 Infrastructure Tlc...... Talc Jinidi Power plant V...... Vandium Hardey Mining Area C South Flank Rhodes Ridge Irrigation / water / desalination W...... Tungsten West Angelas Ophthalmia Zn...... Zinc Western Range Port Turee Syncline Wonmunna Hope Downs 4 Zr...... Zirconium Eastern Range 24–25 31 Wheelarra JV Paraburdoo Giles Mini Pilbara Channar Mt Whaleback Davidson Creek 0 50 100 35 17–18 Jimblebar Robertson Range Data for offshore Commonwealth controlled waters is up-to-date as of February 2016. Kilometres Enquiries for latest information for Commonwealth controlled waters is available from Prairie Downs Zn Pb Ag the National Offshore Petroleum Titles Administrator (NOPTA) at

Project labels: South West / Midwest Coastal Bilberatha Hill Projects operating or currently under development with an actual or anticipated value of production greater than A$10 Million are shown in blue Golden Grove Oakajee |n Deflector Au Cu Ag Cu Zn Pb Proposed or potential projects with a capital expenditure greater than A$20 Million are shown in red Mineral separation Au Cu Ag |n Projects under care and maintenance are shown in purple Geraldton Geraldton brick Shine Narngulu synthetic rutile Greenough River solar Alinta wind Mumbida wind Irwin River Kathleen Valley Mount Horner Moolart Well Karara Mag Hem Mt Mulgine W Odysseus–Cosmos Rosie Corybas Goldfields See Dongara Leinster enlargement 0 50 100 Darlot Garden Well, Rosemont Magnetite Range Vivien Cliff Head Three Springs Tlc Extension Hill Mag Lawlers Iron Hill Kilometres Agnew–Emu Extension HillCorybas Hem Eneabba/Sheffield Mummaloo Thunderbox Ben Hur – Epsilon Eneabba/Iluka Dongara Waitsia Centauri 1 Bentley Zn Pb Cu Hovea Xyris Windarra Eremia Warro Apium Mt Forrest King of the Hills Jingemia Mt Morgans Evandra Cashmere Downs Burtville Dandaragan NiWest Mt Weld Phos Badgingarra wind K Phos Dongara Granny Smith – Mt Weld REE Emu Downs wind Dongara Sons of Gwalia Wallaby Atlas Tarantula Sunrise Dam Moora Mt Bevan Murrin Murrin Cooljarloo/Tronox Chert 0 5 Beharra Springs N Mt Mason Beharra Springs Ulysses Cataby km Mt Ida Red October Redback Fortitude Second Fortune Yerecoin

Deep South Boonanarring Red Gully Gingin West Wandoo Jump Up Dam Lake Giles Deception Highway Chandala mineral separation and synthetic rutile Windarling Goongarrie Scotia Kwinana–Rockingham Neerabup/Newgen Felicitas Fortuna Meckering Kln Karari Wesbeam timber Canegrass Aphrodite Alumina refinery Caversham tile Marda Ammonium nitrate Mt Jackson J4 Bungalbin Siberia Cawse Pinnacles Malaga brick Middle Swan brick Lindsays |n Bulk terminal J5 East Sandy Ridge Kln Ora Banda Midland brick Black Swan Cement and lime PERTH Airport brick Carina Kalgoorlie North Chlor alkali Fremantle |n Paddington Desalination Castle Hill Frogs Leg Kanowna Belle Fused alumina |n Armadale brick Fused zirconia G Cardup brick Kundana Superpit LNG White Foil Nimbus–Boorara Ag Au Zn LPG Koolyanobbing Nickel smelter Coolgardie Nickel refinery Keysbrook Blair Athena Bullabulling South Kal Mt Monger Oil refinery Huntly Aldiss Power plant Burbanks Randalls Pinjarra Alumina Mt Marion Carnilya Hill Sodium cyanide Nepean Long–Victor Boddington Au Cu Li Ta Mica Titanium pigment Nickel concentrator Zirconia Marradong Marvel Loch Willowdale St Ives and Toll treatment plant Wagerup Alumina Saddleback Lanfranchi Kemerton Sisd Nevoria Bald Hill Ta Titanium pigment Miitel Southern Seawater desalination Mt Caudan Chlor alkali Worsley Alumina Mariners Silicon smelter Bluewaters 1–2 Trident Bunbury |n Collie Dardanup Premier Polar Bear Cristal mineral separation Ewington Wesfi timber Collie–Shotts urea Wespine timber Muja South Capel North synthetic rutile Muja Wonnerup Wonnerup North Mt Thirsty Wonnerup South Tutunup 0 50 100 Yoongarillup Tutunup South Lake Johnston Whicher Range Ta Greenbushes Li Flat Rock wind Mt Henry Kilometres Flying Fox New Morning Spotted Quoll Eaglehawk Mutineer Fletcher Persephone Exeter Finucane North West Shelf Athena Hermes Lambert Deep Searipple Egret Lambert Major Resource Projects Capella Angel Thebe Perseus Cossack North Rankin Wanaea Forester Laminaria East Montague Chandon Gaea Ajax Keast Goodwyn Hurricane June 2016 Yellowglen Rankin/Sculptor Tidepole Urania Pemberton Goodwyn/S.Pueblo Project labels: Jansz Wheatstone Dixon/W.Dixon Sage Geryon Pluto Iago Dockrell Saffron Toporoa Io South Reindeer Projects operating or currently under development with an actual or anticipated Scarborough Eurytion Xena Winchester Gnu Chrysaor/Dionysus Brunello Corvus value of production greater than A$10 Million are shown in blue Balnaves Wilcox Caribou Bravo Briseis Maenad Julimar Orthrus See Wandoo Proposed or potential projects with a capital expenditure greater than A$20 Million Glencoe Acme Tusk Nimblefoot Achilles West Tryal Rocks Barrow Island Oryx are shown in red The Grafter Clio South Clio John Brookes enlargement Stag Clio North Gorgon Chamois Yara Pilbara Projects under care and maintenance are shown in purple Satyr NWSV LNG Fertilisers Prometheus Petrel Mentorc Rosella Pluto LNG |n Chester Rosella North |n Frigate Dampier |n Anketell Tern Spar Concerto/Ichthys Maitland Dampier Salt Mimia Cape Preston East Pharos Cornea Bianchi Halyard Cape |n|n Cape Lambert Ichthys West Echuca Shoals Zola Preston Torosa Blacktip Antiope Devil Creek Radio Ichthys Prelude Cape Bougainville Tallaganda Maitland River Gas Hill Pasco Brecknock Sino Iron Munni Munni Pt Pd Bunyip Flinders Shoal Gwydion Whundo Calliance Turtle Balmoral South Zn Cu

Novara South Chervil Nasutus Coniston Tanglehead Cadell Mardie Sorby Hills Pb Zn Cu Van Gogh Stickle Nimrod Cyrano Ord Stage 2 Vincent Moondyne Australind Wyndham |n Toro Stybarrow Pyrenees Corowa Barrow Island Ord Stage 1 Laverda Outtrim Coaster John Brookes Cockatoo Island Blencathra |n Onslow Enfield Macedon 0 10 Wonnich |n Onslow Salt Bambra Ulidia Irvine Island Koolan Island Scafell Crosby Leatherback Linda Ord River Hydro Energy Wildbull Ashburton North km Wonnich Deep Lee Ravensworth Wheatstone LNG Bambra East Rose Speewah V Ti Fe Speewah Fl Macedon Gas North Alkimos Monty Smoke Josephine Oobagooma Ridges Creek Exmouth Harriet |n Baker Matsu Argyle Cape Range Lst Rivoli Agincourt Simpson South Plato Point Torment Little Sandy |n Pedirka Derby Lloyd Double Island West Terrace Victoria Browse LNG Precinct Boundary Savannah North Savannah Gorgon LNG Thunderbird 0 50 100 West Cycad Sundown Blina McIntosh Gr Barrow Island Narvik Copernicus |n Panton Pt Pd Manyingee Barrow I Broome Ungani Kilometres Rough Range Valhalla Duchess–Paradise Yanrey Paulsens Koongie Park Zn Cu Pb Hastings REE Nb Zr Pasco Lamboo Phoenix South Kapok West Pb Zn Ag Browns Range REE Admiral Bay Zn Pb Commodities Cummins Range REE Ag...... Silver Au...... Gold Kentish Knock Co...... Cobalt Brederode Cu...... Copper Eendracht |n Dmd...... Diamond |n |n |n |n Fe...... Iron Citadel Au Cu |n Fl...... Fluorite Gp...... Gypsum Woodie Gr...... Graphite Woodie Grt...... Garnet Mn Telfer Au Cu |n|n K...... Potassium Nifty Cu O'Callaghans W Cu Zn Pb Kln...... Kaolin |n Yeneena Cu Maroochydore Cu Co Li...... Lithum Kintyre LNG...... Liquefied natural gas Mackay K Lst...... Limestone Nicholas Downs Mn See North West Shelf Mag...... Magnetite enlargement Mn...... Manganese Lake Disappointment K Nb...... Niobium Ni...... Nickel Carley Bore Pb...... Lead Yangibana REE See Pilbara enlargement Pd...... Palladium (inside cover) PGE...... Platinum group elements Cape Cuvier |n Lake MacLeod Gp Ilgarari Cu Butcherbird Mn Pt...... Platinum Lake MacLeod Salt Abra Pb Cu Zn REE...... Rare earth elements Beyondie Ta...... Tantalum Horseshoe Lights Cu Au Ag Plutonic Dome Ti...... Titanium Grosvenor Plutonic V...... Vandium Glenburgh Thaduna Cu Ag Yalbra Gr Telecom Hill W...... Tungsten Monty Cu Peak Hill DeGrussa Zn...... Zinc Cu Au Succoth Cu Ni PGE Jack Hills Zr...... Zirconium Wiluna |n Andy Well Matilda West Musgrave Wingellina Shark Bay Salt Jundee–Nimary Mineral symbols Central Murchison Paroo Station Pb Lake Way Precious mineral Gabanintha V Ti Fe Wiluna West Centipede–Millipede Dmd Coburn Weld Range Hillview Honeymoon Well Lake Wells K Nowthanna Hinkler Well Yeelirrie Mt Keith Precious metal Cue JV – Hollandaire Cu Au Ag Gidgee Lake Maitland Au (or as shown) Barrambie Cliffs Big Bell Yakabindie Bronzewing Steel alloy metal Great Fingall V Ti Fe Ni (or as shown) Murchison / Silver Lake Dalgaranga Speciality metal Gruyere–Yamarna Ti–Zr (or as shown) Balline Grt Mt Magnet Port Gregory Grt Base metal Thatcher Soak Windimurra V Fe Iron |n Kirkalocka Alumina |n All sites are bauxite Cyclone Coal and lignite Tropicana Uranium Industrial mineral Mulga Rock Processing plant Ponton Petroleum symbols Gas field Oil field Oil and gas field Edna May Significant gas discovery Collgar wind Significant oil and gas discovery Nova–Bollinger Processing plant |n PERTH |n Eucla West Oil / gas pipeline, operating

Oil / gas pipeline, proposed See Goldfields Cosmic Boy Concentrator Wickepin Kln enlargement Salmon Gums Infrastructure (inside cover) Power plant |n Katanning Scaddan Irrigation / water / desalination Mt Cattlin Li Ta Ravensthorpe 0 100 200 300 400 Great Southern Au Cu Port |n Esperance Kilometres See South West / Midwest Coastal Data for offshore Commonwealth controlled enlargement (inside cover) waters is up-to-date as of February 2016. Southdown Enquiries for latest information for Commonwealth controlled waters is available from the National |n Albany Offshore Petroleum Titles Administrator (NOPTA) Albany wind at