Chapter 4 Project Alternatives
4 PROJECT ALTERNATIVES 4.1 MininG Issue: The Draft EIS states that mining at the proposed scale is the preferred option and maximises the return on investment. Submissions have questioned the quantity of uranium to be extracted and processed on the basis that the uranium market is not predictable or stable. Submissions: 50, 136, 302 and 391 Response: The Olympic Dam ore body contains multiple metals, of which copper, uranium, gold and silver are currently extracted. These metals are distributed throughout the ore body (i.e. mixed together within the ore), therefore the quantity of uranium extracted is related to the quantity of copper, gold and silver extracted. In other words, it is not possible to just mine copper, gold and silver because uranium is contained within the same ore and is therefore mined at the same time. The assessment of the cost of mining (which includes the financial capital and operating cost but also the environmental and social offsets) and the predicted return from the sale of the metals, receives considerable effort and attention during all phases of a mining operation, but none more so than the selection phase in which the Olympic Dam expansion currently sits. Many factors are taken into consideration during the exhaustive assessments undertaken to determine the viability of a new or expanding mine. These include the immediate conditions of market spot prices, the medium-term (generally three to seven years) contract prices, current primary and secondary production supplies, existing demand, and utilities projects under construction. However, and most importantly for a massive ore body and long-life mine such as Olympic Dam, long-term trends in supply and demand are studied in detail.
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