WESTERN AUSTRALIA’S INTERNATIONAL RESOURCES DEVELOPMENT MAGAZINE March 2008 - May 2008 $3 (inc GST)

Fortescue Metals Group Innovation moves production closer

Geothermal energy Western Australia taps Print post approved PP 665002/00062 approved Print post renewable potential DEPARTMENT OF INDUSTRY AND RESOURCES Investment Services 1 Adelaide Terrace East Perth, Western Australia 6004 Tel: +61 8 9222 3333 • Fax: +61 8 9222 3862 Email: [email protected] www.doir.wa.gov.au

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Welcome to the March - May 2008 edition of Prospect Japan — Tokyo Government of Western Australia, Tokyo Office 13th floor, Fukoku Seimei Building Since our last edition, there has been turmoil on financial markets and questions 2-2-2 Uchisaiwai-cho Chiyoda-ku • TOKYO 100-0011 • JAPAN Tel: +81 3 5157 8281 • Fax: +81 3 5157 8286 over world economic growth during 2008. Many commentators, including the Email: [email protected] Governor of the Reserve Bank, believe that Australia will continue to grow at a Japan — Kobe healthy pace, on the assumption that the Chinese and other Asian economies Western Australian Government Office will not be significantly impacted by events in the USA. 6th floor, Golden Sun Building • 4-3-6 Nakayamate-dori Chuo-Ku • Kobe 650-0004 • JAPAN Tel: +81 78 242 7705 • Fax: +81 78 242 7707 Within this context, I am looking forward to 2008 being a year of continued strong Email: [email protected] performance in the Western Australian economy. In addition, there will Malaysia — Kuala Lumpur be significant decisions taken in regard to expanding the iron ore industry and Western Australian Trade Office 4th floor, UBN Tower • 10 Jalan P Ramlee the development of the Browse Basin and Carnarvon Basin gas resources. KUALA LUMPUR 50250 • MALAYSIA Tel: +60 3 2031 8175/6 • Fax: +60 3 2031 8177 Email: [email protected] The State will continue to face challenges in regard to the provision of infrastructure Middle East — Dubai and a skilled workforce – issues which I expect will be dealt with cooperatively Western Australian Trade Office • Emarat Atrium between State and Federal Governments in consultation with industry and PO Box 58007 • Dubai • UNITED ARAB EMIRATES Tel: +971 4 343 3226 • Fax: +971 4 343 3238 community. How we address climate change, both in terms of carbon pricing Email: [email protected] policies and adaptation, will have long-term implications and sound decisions will People’s Republic of China — Shanghai need to be made over the coming months and years. Western Australian Trade & Investment Promotion Room 2208 • CITIC Square 1168 Nanjing Road West I stepped down from the position of Director General of the Department of Industry SHANGHAI 20004 • PEOPLES REPUBLIC OF CHINA Tel: +86 21 5292 5899 • Fax: +86 21 5292 5889 and Resources (DoIR) on 20 March and therefore this is my last contribution to Email: [email protected] Prospect. I would like to thank you for your interest and support of both Prospect People’s Republic of China — Hangzhou and DoIR during my term as Director General. Western Australian Trade & Investment Promotion Hangzhou Representative Office Room 1705 • World Trade Office Plaza While the challenges are many, I wish all Prospect readers and the people of Zhejiang World Trade Centre Western Australia continued prosperity, long into the future. 122 Shuguang Road • Hangzhou 310007 PEOPLES REPUBLIC OF CHINA Tel: +86 571 8795 0296 • Fax: +86 571 8795 0295 Jim Limerick Email: [email protected] South Korea — Seoul DIRECTOR GENERAL Western Australian Trade & Investment Office 11th floor, Kyobo Building 1 Jongro 1-Ga, Jongro-Gu Seoul 110-714 • SOUTH KOREA Tel: +82 2 722 1217 • Fax: +82 2 722 1218 Email: [email protected]

Taiwan — Taipei Australian Commerce & Industry Office 27th floor, No 9 Song Gao Road, Taipei, 11073 • TAIWAN Tel: +886 2 8780 9118 ext 216 • Fax: +886 2 2757 6707 Prospect Cover photo: Fortescue Metals Group is gearing up for its first Email: [email protected] Western Australian Prospect magazine is published iron ore shipment. quarterly by the Western Australian Government’s Hong Kong Department of Industry and Resources (DoIR). Australian Trade Commission Hong Kong Office Rm. 2404, 24/F., Harbour Centre Editorial management: James Bowen, DoIR Communications 25 Harbour Road, Wan Chai • HONG KONG and Marketing Division. Tel: (08) 9222 3804 • Fax: (08) 9222 3069 Tel: +852 2588 5300 • Fax: +852 2827 4145 Email: [email protected] Disclaimer Prospect has been compiled in good faith by the Department Thailand — Bangkok of Industry and Resources. Opinions expressed in Prospect are those WA Business Development Manager of the authors and do not necessarily represent the views, or have Australian Trade Commission • Australian Embassy the endorsement of the Department of Industry and Resources. The 37 South Sathorn Road • Bangkok 10120 • THAILAND Department of Industry and Resources has used all reasonable endeavours Tel: +662 344 6337 • Fax: +662 344 6306 to ensure the material contained in this publication is correct, but it is Email: [email protected] intended to be general in nature. No representation is made with regard to the completeness or accuracy of the information contained herein. The United States — Los Angeles Department of Industry and Resources disclaims any or all liability for loss Western Australian Trade and & Investment Office or damage whatsoever suffered or incurred resulting from the use of or reliance on information contained herein. Readers of this publication should Howard Hughes Centre, 6080 Centre Drive, 6th Floor make and rely on their own enquiries, research and judgements in making Los Angeles, CA 90045 • USA decisions affecting their own or any other persons interest. Tel: +1 5625924342 www.doir.wa.gov.au Email: [email protected] 2 & 3 Geothermal Energy – 17 Kemerton Industrial renewable energy source Park – planning stage for has the potential to proposed extension of produce large amounts industrial estate of energy for Western Australia

7 Coolimba Coal – 18 Australian Marine 400 megawatt coal Complex – new fired power station infrastructure and uses leading emissions proposed development technology and a low of subsea cluster will cost power solution service industry

12 - 15 Fortescue Metals Group– 28 Indigenous employment technological innovation – at least 300 jobs takes company closer to created in joint approach production phase by Rio Tinto Iron Ore and Western Australia’s State Government

Minister Logan and Ramelius Ramelius Resources Managing Director Resources Joe Houldsworth at Wattle Dam mine. High grade gold specimens discovered in Western Australia

For more information turn to page 8 Western Australia’s renewable legislation provides a legal framework areas of up to 320 km² across almost half energy sector is heating up with for explorers and producers. Wide of the State. close to 500 geothermal acreage interest is expected from industry.” blocks recently released for Mr Tinapple said this was a unique exploration. The first release of geothermal acreage opportunity for geothermal explorers to is a special release, giving explorers the secure prime exploration acreage in the It is the first time geothermal acreage chance to select and apply for application State’s populated areas. has been released in Western Australia. This first release contains 495 acreage blocks and it comes after the Western Australian Parliament passed industry is continuing to grow. It is amendments to the Petroleum Act 1967, expected that these known hot spots, under which geothermal energy is now which are close to existing infrastructure, governed. will be hotly contested by industry. Perth is built Professor Regenauer-Lieb said there are about 40 companies with geothermal on sedimentary interests in Australia. Many have operations in overseas areas such as basins which Europe, where geothermal energy is a provide common power source. “Western Australia has a unique exploitable heat opportunity to stake its claim in the international geothermal energy boom right where it and to fill a niche in the renewable energy industry,” Professor Regenauer-Lieb can be used, said. Professor Klaus Regenauer-Lieb providing an “Perth is built on sedimentary basins Professor Klaus Regenauer-Lieb is a which provide exploitable heat right ideal source geothermal expert and says within three where it can be used, providing an ideal years geothermal explorers should have source of clean power for Western of clean power made good progress in harnessing the Australia. energy to power Western Australia. for Western “We are fortunate that the sediments “Within three years, explorers could have in this State are very soft and easy for Australia. wells drilled to about 3000 metres, and explorers to drill through.” Department of Industry and Resources be producing energy for supply into the Director of Petroleum and Royalties, Bill power grid,” Professor Regenauer-Lieb Applications for the geothermal acreage Tinapple, said this was a significant step said. close on 24 April 2008 at 5 pm Western in the State’s resources industry. Australian time. “The power could be supplied directly to “There is an increasing demand for clean big industrial operations and make a big Successful bidders will need to drill energy and geothermal energy is one of impact on the power load capability of at least one shallow well (about 400 the cleanest forms of energy available,” Western Australia. metres) during the first two years of the Mr Tinapple said. geothermal title. However, title to areas “Geothermal energy could provide 30 per will be awarded based on proposed work “Additionally, the State needs to diversify cent of the energy needed to power a city programs. energy sources to increase security of the size of Perth.” supply. The size of each application area is four Some of the known geothermal “hot 5’ by 5’ graticular blocks (ie 10’x10’ per “We don’t know the ultimate potential of spots” (see map) are located around the application area). Multiple application geothermal energy however the Mid West region where the resources areas are allowed – 50 per cent

2 Prospect “Following this special release, we will growing demand from coordinate a systematic release of all the green energy. It also has the remaining onshore acreage of Western potential to supply remote Australia,” he said. rural communities and remote operations, such as mining and Geothermal energy has the potential to petroleum companies, with safe, produce large amounts of renewable distributed base load energy. energy to meet Western Australia’s Western Australia’s geothermal “hot spots” (estimated at 5 km)

GEOTHERMAL ACREAGE RELEASE ONSHORE PERTH BASIN & ADJACENT REGION 113°0'0"E 114°0'0"E relinquishment provisions will be waived 115°0'0"E 116°0'0"E for these multiple areas. 117°0'0"E 118°0'0"E Full application details for the acreage

can be found at the Department of 28°0'0"S 5002 5003 5004 5005 5006 Shoal Point 5007 5008 5009 5010 5011 5012 5074 5075 5013 5014 5015 5076 5077 5078 5016 5017 5018 Industry and Resource’s website 5079 5080 5081 5019 5020 5021 5082 5083 5084 5022 5023 5024 5147 5085 5086 5087 5025 5026 5148 5149 5150 5088 5089 5027 5028 5029 5151 5152 5090 5091 5092 5030 5031 5032 5153 5154 5155 5093 5094 5095 5033 5034 5156 5157 5158 5096 5097 5035 5036 5037 5220 5221 5159 5160 5098 5099 5100 5038 5039 5040 5222 5223 5161 5162 5163 5101 5102 5103 5041 5042 5224 5225 5226 5164 5165 5166 5104 5105 MOUNT MAGNET 5227 5228 5229 5167 5168 5106 5107 5108 5230 5231 5169 5170 5171 5109 5110 5111 ! 5293 5294 5232 5233 5234 5172 5173 5174 5112 5113 www.doir.wa.gov.au/mineralsandpetroleum/ 5295 5235 5114 28°0'0"S 5296 5297 5236 5237 5175 5176 5298 5299 5300 5238 5239 5177 5178 5179 5301 5302 5240 5241 5242 5180 5181 5182 Houtman 5303 5304 5305 5243 5244 5245 5183 5184 5366 5367 5368 5306 5307 5308 5246 5247 5185 5186 5369 5370 5371 5309 5310 5248 5249 5250 5372 5373 5311 5312 5313 5251 5252 5253 5374 5375 5376 5314 5315 5316 5254 5255 acreage_releases.asp 5439 5377 5378 5379 5317 5318 5256 5257 5258 5440 5441 5442 5380 5381 5319 5320 5321 5443 5444 5382 5383 5384 5322 5323 5324 5445 5446 5447 MULLEWA 5385 5386 5387 5325 5326 5448 5449 5450 ! 5388 5389 5327 5328 5329 5511 5512 5513 54515452 5390 5391 5392 5330 5514 5515 5453 5454 5455 5393 5394 5395 Abrolhos 5516 5517 5518 5456 5457 5458 5396 5397 5519 5520 5521 5459 5460 5398 5399 5400 5584 5522 5523 5461 5462 5463 5401 5402 5585 5586 5524 5525 5526 5464 5465 5466 5587 5588 5589 5527 5528 5529 5467 5468 GERALDTON 5590 5591 5592 5530 5531 5469 5470 5471 5655 ! 5593 5594 5532 5533 5534 5472 5473 5474 5657 5595 5596 5597 5535 5536 5537 5658 5659 5660 5598 5599 5600 5538 5539 5656 5661 5662 5663 5601 5602 5540 5541 5542 5664 5665 5603 5604 5605 5543 5544 5545 5728 5666 5667 5668 5606 5607 5608 5546 Islands 5729 5730 5731 5669 5670 5671 5609 5610 5611 5732 5733 5734 5672 5673 5674 5612 5613 29°0'0"S 5735 5736 5675 5676 5614 5615 5616 5737 5738 5739 5677 5678 5679 5617 5618 5800 5801 5802 5740 5741 5742 5680 5681 5803 5804 5805 5743 5744 5682 5683 5684 5806 5807 5745 5746 5747 5685 5686 5687 5808 5809 5810 5748 5749 5750 5688 5689 5811 5812 5813 5751 5752 5690 5874 5875 5876 5814 5815 5753 5754 5755 5877 5878 5816 5817 5818 5756 5757 5758 Steam into 5879 5880 5881 5819 5820 5821 5759 5760 5761 5882 5883 5884 5822 5823 5824 5762 5947 5885 5886 5887 5825 5826 5948 5949 5950 5888 5889 5827 5828 5829 5951 5952 5890 5891 5892 5830 5831 5832 5953 5954 5955 5893 5894 5895 5833 5834 5956 5957 5958 5896 5897 5898 6019 6020 6021 5959 5960 5961 5899 5900 DONGARA6022 6023 6024 5962 5963 5901 5902 5903 ! 6025 6026 5964 5965 5966 5904 5905 5906 power source 6027 6028 6029 5967 5968 5969 6091 6092 6030 6031 6032 5970 5971 5972 6093 6094 6095 6033 6034 6035 5973 5974 5975 6096 6097 6098 6036 6037 6038 5976 5977 6099 6039 5978 29°0'0"S 6100 6101 6102 6040 6041 6042 6164 6165 6103 6104 6105 6043 6044 6166 6167 6168 6106 6107 6045 6046 6047 6169 6170 6108 6109 6110 6048 6049 6050 6171 6172 6173 6111 6112 6113 6236 6174 6175 6176 6114 6115 6237 6238 6239 6177 6178 6116 6117 6118 6240 6241 6179 6180 6181 6119 6120 6121 6242 6243 6244 6182 6183 6184 6122 6245 6246 6247 6185 6186 6308 6309 6310 6248 6249 6187 6188 6189 6311 6312 6250 6251 6252 6190 6191 6192 6313 6314 6315 6253 6254 6255 6193 6194 6316 6317 6318 6256 6257 6258 6380 6381 6319 6320 6321 6259 6260 6382 6383 6384 6322 6323 6261 6262 6263 6385 6386 6324 6325 6326 6264 6265 6266 6387 6388 6389 6327 6328 6329 6452 6390 6391 6392 6330 6331 6453 6454 6455 6393 6394 6332 6333 6334 6456 6457 6395 6396 6397 6335 6336 6337 6458 6459 6460 6398 6399 6400 6338 6461 6462 6463 6401 6402 6403 6524 6525 6526 6464 6465 6466 6404 6405 6406 6527 6528 6529 6467 6468 6469 6407 6408 6409 6530 6531 6532 6470 6471 6472 6410 6533 6534 6535 6473 6474 6475 6596 6597 6598 6536 6537 6538 6476 6477 30°0'0"S 6599 6600 6539 6540 6478 6479 6480 6601 6602 6603 6541 6542 6543 6481 6482 6604 6605 6606 6544 6545 6546 6668 6669 6607 6608 6609 6547 6548 6670 6671 6672 6610 6611 6549 6550 6551 6673 6674 6612 6613 6614 6552 6553 6554 6675 6676 6677 6615 6616 6617 6740 6678 6679 6680 6618 6619 6741 6742 6743 6681 6682 6620 6621 6622 6744 6745 6683 6684 6685 6623 6624 6625 6746 6747 6748 6686 6687 6688 6626 6749 6750 6751 6689 6690 6812 6813 6814 6752 6753 6691 6692 6693 6815 6816 6754 6755 6756 6694 6695 6696 6817 6818 6819 6757 6758 6759 6697 6698 6820 6821 6822 6760 6761 6762 6884 6885 6823 6824 6825 6763 6764 6765 6886 6887 6888 6826 6827 6828 6766 6767 6768 6889 6890 6891 6829 6830 6831 6769 6770 I N D I A N 6892 6893 6894 6832 6833 6957 6895 6896 6834 6835 6836 6958 6959 6897 6898 6899 6837 6838 6839 6960 6961 6962 6900 6901 6902 6840 6841 6963 6964 6903 6904 6842 30°0'0"S 6965 6966 6967 6905 6906 7029 7030 6968 6969 6907 6908 6909 7031 7032 6970 6971 6972 6910 6911 6912 7033 7034 7035 6973 6974 6975 6913 6914 Impermeable 7036 7037 7038 6976 6977 6978 7101 7039 7040 7041 7042 6979 6980 6981 7102 7103 7104 7043 7044 6982 6983 6984 7105 7106 7107 7045 7046 7047 6985 6986 7108 7109 7110 7048 7049 7050 7173 7111 7112 7113 7114 7051 7052 7174 7175 7176 7115 7053 7054 7055 7177 7178 7116 7117 7118 7056 7057 7058 7179 7180 7181 7119 7120 7121 Water 7182 7183 7184 7122 7123 7124 sediments 7246 7247 7185 7186 7187 7125 7126 7127 7248 7188 7128 7249 7250 7251 7189 7190 7191 7129 7130 7252 7253 7254 7192 7193 7194 7255 7256 7257MOORA 7195 7196 7318 7319 7320 ! 7258 7259 7197 7198 7199 7321 7322 7260 7261 7262 7200 7201 7202 7323 7324 7325 7263 7264 7265 7326 7327 7328 7266 7267 7391 7329 7330 7268 7269 7270 O C E A N 7392 7393 7331 7332 7333 7271 7272 7273 7394 7395 7396 7334 7335 7336 7274 7397 7398 7399 7337 7338 7339 7400 7401 7402 7340 7341 31°0'0"S 7463 7464 7403 7404 7342 7343 7344 7465 7466 7467 7405 7406 7407 7345 7346 7468 7469 7470 7408 7409 7410 7471 7472 7473 7411 7412 7413 7536 7474 7475 7476 7414 7415 7416 7537 7538 7539 7477 7478 7479 7417 7418 LANCELIN 7540 7541 7542 7480 7481 7482 ! 7543 7544 7545 7483 7484 7608 7546 7547 7485 7486 7487 7610 7548 7549 7550 7488 7489 7490 7609 7611 7612 7613 7551 7552 7553 7614 7615 7616 7554 7555 7556 7617 7618 7619 7557 7558 7559 7681 7682 7620 7621 7622 7560 7561 7562 7683 7684 7685 7623 7624 7625 7686 7687 7688 7626 7627 7628 7689 7690 7691 7629 7630 7631 7753 7754 7692 7693 7694 7632 7633 7634 7755 7756 7757 7695 7696 7697 7758 7759 7760 7698 7699 7700 7761 7762 7763 7701 7702 7703 7826 7764 7765 7766 7704 7705 7827 7828 7767 7768 7706 31°0'0"S 7829 7830 7831 7769 7770 7771 7832 7833 7834 7772 7773 7774 Legend GINGIN 7835 7836 7837 7775 7776 7777 7898 7899 7900 ! 7838 7839 7840 7778 7901 7902 7841 7842 7843 7903 7904 7905 7906 7844 7845 7846 7907 7908 7909 7847 7848 7849 7971 7972 7910 7911 7912 7850 Geothermal Special Release boundary 7973 7974 7975 7913 7914 7915 7976 7977 7978 7916 7917 7918 7979 7980 7981 7919 7920 7921 8043 8044 7982 7983 7984 7922 Geothermal 10'x10' application area 8045 8046 8047 7985 7986 7987 8048 8049 8050 7988 7989 7990 8051 8052 8053 7991 7992 7993 8116 8054 8055 8056 7994 8117 8118 8119 8057 8058 8059 5'x5' AGD66 graticular block 8120 8121 8122 8060 8061 8062 8123 8124 8125 8063 8064 8065 8126 8127 8128 8129NORTHAM 8066 8189 8190 8191 ! 8130 8131 8192 8193 8194 8132 8133 8134 8135 8195 8196 8197 CUNDERDIN8136 8137 8198 8199 8200 ! 8138 8261 8262 8263 8201 8202 8203 8264 8265 8266 8204 8205 32°0'0"S 8267 8206 8207 Part of SH50 - Perth mapsheet 8268 8269 8270 8208 8209 8210 Geothermal Special Release Area 8333 8271 8272 8273 8334 8335 8336 8274 8275 8276 8337 8338 8339 8277 8278 8279 comprises 495 10' by 10' blocks 8407 8340 8341 8342 8280 8281 8282 8405 PERTH 8343 8344 8345 Part of SI50 - Albany mapsheet 8406 ! 8408 8346 8347 8348 8409 8410 8411 8349 8350 8351 8412 8413 8414 8352 8353 8354 APPLICATION AREA SIZE 5021 8415 8416 8417 5022 5023 5024 8418 8419 8420 5025 5026 5027 8421 8422 8423 Four 5'x5' AGD66 graticular blocks 5028 5029 5030 8424 8425 8426 5093 5031 5032 5033 5094 5095 5096 5034 5035 5036 (10'x10' application area) 5097 5098 5099 5037 5038 5039 5100 5101 5102 5040 5041 5042 5165 5166KWINANA 5103 5104 5105 ! 5167 5168 5106 5107 5108 5169 5170 5171 5109 5110 5111 5172 5173 5174 5112 5113 5175 5114 32°0'0"S 5237 5238 5176 5177 5178 5239 5240 5241 5179 5180 5181 5242 5243 5244 5182 5183 5184 5245 5246 5247 5185 5186 5309 5310 5248 5249 5250 5311 5312 5313 5251 5252 5253 5314 5315 5316 5254 5255 5256 5317 5318 5319 5257 5258 5381 5382 5320 5321 5322 5383 5384 5385 5323 5324 5325 5386 5387 5388 5326 5327 5328 5389 5390 5391 5329 5330 5452 5453 5454 5392 5393 5394 5455 5456 5457 5395 5396 5397 5458 5459 5460 5398 5399 5400 5461 5462 5463 5401 5402 5524 5525 5526 5464 5465 5466 5527 5528 5529 5467 5468 5469 5530 5531 5532 5470 5471 5472 5533 5534 5535 5473 5474 5596 5597 5598 5536 5537 5538 5599 5600 5601 5539 5540 5541 Water passes through hot rocks 5602 5603 5604 5542 5543 5605 5544 5545 5668 5606 5607 5608 5546 5669 5670 5671 5609 5610 5611 5672 5673 5674 5612 5613 33°0'0"S 5675 5614 5615 5676 5677 5678 5616 5617 5618 5740 5741 5679 5680 5681 5742 5743 5744 5682 5683 5684 5745 5746 5747 5685 5686 5687 5748 5749 5750 5688 5689 5690 5812 5813 5751 5752 5753 5814 5815 5816 5754 5755 5756 5817 5818 5819 5757 5758 5759 5820 5821 5822 5760 5761 5762 5885 5823 5824 5825 NARROGIN 5886 5887 5888 5826 5827 5828 ! 5889 5890 5891 5829 5830 5892 5893 5894 5831 5832 5833 5834 5957 5895 5896 5897 5958 5959 5960 5898 5899 5900 5961 5962 5963 5901 5902 5903 5964 5965 5966 5904 5905 5906 6029 5967 5968 5969 6030 6031 6032 5970 5971 5972 6033 6034 6035 5973 5974 5975 6100 6036 6037 6038 5976 5977 6039 6040 5978 33°0'0"S BUNBURY 6101 6102 6103 6041 6042 6043 ! 6104 6105 6106 6044 6045 6046 6107 6108 6109 6047 6048 6049 6172 COLLIE 6110 6111 6112 6050 Cape Naturaliste 6173 6174 6175 6113 6114 6115 6176 61776178! 6116 6117 6118 6119 6179 6180 6181 6120 6121WAGIN 6243 6244 6182 6183 6184 ! 6122 6245 6246 6247 6185 6186 6309 6310 6248 6249 6187 6188 6189 6250 6251 6252 6190 6191 6192 6314 6315 6253 6254 62566255 6193 6194 DUNSBOROUGH 6316 6317 6318 6257 6258 Simplified diagram of hot rock heat 6381 ! 6319 6320 6321 6259 6260 6383 6384 6385 6322 6323 6261 6262 6263 0 25 50 75 100 Km 6382 6386 6324 6325 6326 6264 6265 6266 ! 6387 6388 6389 6327 6328 6329 Simplified diagram of hot rock heat extraction system 6390 6391 6392 6330 6331 BUSSELTON 6332 6393 6394 6395 6333 6334 6335 6396 6397 6398 6336 6337 6338 extraction system 6399 6400 6401 6402 6403 6404 6405 6406 6407 6408 6409 6410

34°0'0"S

Geothermal_Release_Areas_revised.mxd XB 12/07 113°0'0"E 114°0'0"E 115°0'0"E 34°0'0"S 116°0'0"E 117°0'0"E Western Australia has released 118°0'0"E nearly 500 geothermal acreage blocks 3 Prospect Renewable energy fires up in the US

Western Australian specialists Professor Reynoldson said the in the renewable energy sector symposium was a great opportunity collaborated with world leaders to debate in the area of renewable energy. in the sector as part of the annual “The symposium dealt with a degree G’DAY USA Australia Week of global warming and approaches to celebrations. dealing with global warming through a range of altered energy uses from The renewable energy experts came biofuels through energy reduction to together for a series of events at which alternative fuels such as wind, solar issues related to renewable energy were and nuclear,” he said. (L-R): Greg Egan from Western Australian-based discussed, and emerging technologies company Hythane, Department of Industry and were showcased. “There was opportunity for debate in Resources US Office Regional Director David renewable energy and although it may Doepel and John Nadeau also of Hythane at the Regional Director of the Western have not been a turning point, there were renewable energy seminar held in Houston. some very effective exchange of views.” Australian Trade and Investment Office companies WA Solar Supplies, AnaeCo, in Los Angles David Doepel said the Professor Reynoldson said that although Orbital Corporation Limited, Australian series of energy and climate change the symposium was very effective, he Sustainable Energy Corp and Hythane events had a significant impact on believed there needed to be a wider also attended the event. the participants and guests, as well realisation of the impact of climate In addition to the symposium, renewable as stakeholders involved with climate change and something of a shock to the energy and climate change were change policy. community before a turning point to the highlighted during G’DAY USA at the renewable energy debate was reached. “These events were uniquely situated to Western Australian Alternative and Clean take advantage of the outcomes of these “There are still those who doubt the Energy Round-table at Caltech. It focused meetings and serve as a springboard into reality of climate change and see the on the collaboration between Western 2008,” he said. current conditions as being simply part Australia and California to develop of a longer cycle,” he said. and deploy climate change mitigation “The G’DAY USA partners, participants technologies. and guests are now well placed to help Professor Reynoldson said the The event was hosted by LA Tech Week effect change worldwide.” symposium was a great opportunity for Murdoch University to showcase and the Western Australian Trade and One of the highlights was a Road to its facilities and expertise. In particular, Investment Office. Renewables Symposium which was the university promoted its Centres of The series of events concluded with a Research in Science and Technology, opened by the Australian Consul General renewable energy seminar in Houston. and Infrastructure of Science and in Los Angeles, Innes Willox and included The seminar included an interactive Engineering. four panels of experts in various fields workshop which brought together leading related to climate change and energy Other Western Australian exhibitors experts and industry stakeholders to policy. who attended the Road to Renewables explore the challenges and solutions Symposium included Satis Arnold and for the transition from a traditional A panel of economic development Professor Steve Halls also from Murdoch hydrocarbon economy to an increasingly experts explored the interaction between University. Western Australian based renewable energy economy. climate change policy and economic policy whilst an energy generation panel • Renewable energy plays a strong discussed the transition from a fossil Renewable Energy explained role in reducing greenhouse gas fuel based economy to a more stable • Renewable energy is the term used to emissions. renewable source of energy which would describe any source of energy that can require the collaboration of government, be used without depleting its reserves. • The Commonwealth Government's science, business and consumers. • Western Australia is generously mandatory renewable energy Many of Western Australia’s leading endowed with renewable energy target places a legal liability on academics and companies contributed resources. Sunshine and wind are wholesale purchasers of electricity to the symposium including Murdoch’s plentiful and there are a number of to proportionately contribute towards Deputy Vice Chancellor for Research locations throughout the State where the generation of an additional 9,500 Professor Jim Reynoldson. hydro, tidal and biomass energy gigawatt hours of renewable energy resources are potentially available. per year by 2010.

4 Prospect Historic agreement sets strategic assessment of the Kimberley

The future development of the Kimberley region was discussed at a public forum in Broome on 4 February.

Future industrial development of NDT Chair Jim Limerick welcomed Western Australia’s Kimberley the signing of the agreement saying it region will be considered in a formalised the process. strategic approach under a joint “The Kimberley region contains massive agreement between the State and reserves of oil and natural gas, of huge Federal Governments. economic value to the nation and offering financial benefits to local Indigenous The ‘big picture’ strategic assessment communities,” he said. under the Environment Protection and Biodiversity Conservation Act will ensure “This agreement will provide greater the growing number of development certainty to industry, governments proposals are not processed in an “ad and the community because we will have a detailed picture of the region’s hoc” way and the area’s rich natural and environmental assets, including national cultural heritage will be better protected. and international heritage values, before choosing a site for future industrial “This will streamline development. the approvals process “This will streamline the approvals process for future industrial development for future industrial because the designated areas will have Chair Jim Limerick said the agreement on community and government support.” developing the Kimberley region provided greater development because certainty. The area to be studied as part of the the designated areas assessment stretches from south of from the parties we have met,” will have community and Broome to Cape Londonderry on the Mr Limerick said. Timor Sea. government support.” The State Government has also entered The first stage of the NDT assessment into an agreement with the Kimberley began in Broome on 4 February with Land Council to represent all traditional The strategic assessment will be a public forum, which was followed owners in the region. undertaken in tandem with a broader by a community forum engaging local assessment process by the Northern government, conservation groups, Mr Limerick said this would ensure that Development Taskforce (NDT) to identify industry and Indigenous landholders. any potential hub site would proceed with suitable sites for a single, common-user the informed consent of the Indigenous gas processing hub for the Browse Basin “The meetings so far have been very community and that benefits were gas fields. positive and we have had excellent input secured for the Indigenous community.

5 Prospect Garnet recycling set to expand in 2008

GMA Managing Director Torsten Ketelesen (far left) with the Deputy Governor of Jubail Industrial City (centre) and the GMA Garnet General Manager Australian Ambassador to Saudi Arabia, Ian Biggs (far right). Martin Taylor.

GMA Garnet (GMA) is the world’s markets, where the product is extensively GMA to go to the expense of recycling the largest producer of natural garnet used in abrasive blasting and high garnet once it has arrived overseas. abrasive, which the company mines pressure water jet cutting applications. GMA Garnet General Manager for Mining in Port Gregory, 47 km west of GMA’s Managing Director Torsten & Processing Operations (Western Northhampton in Western Australia. Ketelsen, who developed the recycling Australia) Martin Taylor, was recently concept, said the hard and tough GMA The product is shipped to destinations announced as the new head of GMA Garnet grain was very resistant to impact throughout the world for use in water jet Garnet’s Global Recycling Drive. cutting and abrasive blasting industries. fracture and could be reused many times. “The limiting factor has been the Mr Taylor, who will continue to be based availability of suitable recycling systems in Geraldton in Western Australia, is a • Garnet is a natural mineral abrasive used that can re-process the used garnet Geologist and has worked for GMA Garnet in abrasive blasting and high-pressure grains by separating all contaminations, (GMA) for 36 years. He will be assisted by water jet cutting applications. ineffective fines and dust,” he said. a team of experienced managers in the • Garnet is very tough and hard and there is The company’s industrial recycling plants field of quality control, health and safety very little breakdown of the grains during comprise Western Australian designed and plant design & maintenance. blasting (approximately 10 -15%). and built equipment which have the “Martin has been the key person in ability to perfectly clean the used garnet • Recycling garnet after it has been and re-grade and package the re- the original development of GMA’s used addresses disposal problems processed garnet. The product can then Port Gregory mineral resource and and optimises use of a non-renewable be immediately re-used in the water jet the development of the mining and resource cutting and abrasive blasting industries. processing operation in the Mid West,” “The immediate benefits are a great Mr Ketelsen said. The recycling component of the company reduction in waste disposal volume and “Martin’s technical knowledge and has been developed in the last five years costs. specific expertise in garnet mineral to help clients’ demand for disposal “Recycling garnet also optimises the use processing technology has been a major options after the garnet has been used. of a non-renewable resource, which has factor in the development of a garnet Currently GMA has recycling operations important environmental benefits,” recycling and re-processing operation in Italy, Saudi Arabia and Dubai. The Mr Ketelsen said. that is being successfully applied in a recycling concept for GMA will be In addition, an increase in ocean freight growing number of countries around implemented in the company’s global rates has made it more economical for the world.”

6 Prospect Coolimba pioneers technology to power the Mid West

Chief Executive Officer of Aviva Corporation Mr Lindsay Reed explains the Coolimba Power Project to Eneabba Primary School students.

The construction of an AUD$1 “We believe the recent deregulation of the Technologies (CO2CRC) to identify billion project that could unlock the electricity market and the development appropriate geosequestration sites. potential of Western Australia’s Mid of significant resource projects in the Mid West region is scheduled to start in West gives us the opportunity to develop Mr Harris said the Mid West region the middle of next year. the Coolimba Power Project using the offered the best prospects for carbon lowest cost fuel for power generation dioxide storage because of its geology The Coolimba Power Project, an in Western Australia. and depleted gas fields, such as the old investment by South Perth company Aviva Woodada field. Corporation Ltd, is a 400 megawatt coal- “It is estimated that there are AUD$6.5 fired power station located in the Mid West billion worth of projects under “Due to the use of leading-edge low near Eneabba, which is south of Geraldton development in the Mid West region emission technology, the project will and these projects all need power.” in Western Australia. enable Western Australia to be a leader in reducing greenhouse emissions from The project will play a key role in powering Mr Harris said Coolimba would be the the development of the Mid West region first power station in Western Australia to thermal power stations,” he said. by supplying electricity sources directly deploy leading edge technology for carbon “There will be a reduction of 90 per cent into the South West Interconnected capture, desulfurisation and air cooling. System (SWIS). It will also potentially in carbon dioxide emissions when the be Australia’s first commercial carbon “Coolimba will be pioneering oxy-ready carbon capture and storage option is capture-ready power station, depending technology in Western Australia, which implemented. on trials in other States. enables the carbon dioxide emissions to be readily captured and then sequestrated “The project will also have minimal local General Manager Development for and stored,” he said. environmental impacts as the mine and Aviva Corporation Richard Harris said power station will be located on private “The technology is well-proven and the project would incorporate leading farming land and an existing mining lease, there are a number of small scale emissions technology and provide a low most of which has been cleared cost power solution for Western Australia. demonstration projects being built but Coolimba will be the next scale up based for farming or mining.” “Its location means it is ideally placed on two 200 megawatt oxy-ready units, Once environmental approvals are to become a major energy hub at the which are ideally suited in size for the obtained, Aviva expects to begin heart of the Mid West, unlocking the SWIS.” region’s enormous potential, by providing construction in the first half of 2009, energy and diversity into the SWIS power Aviva is working with the Cooperative enabling the power station to be in grid,” he said. Research Centre for Greenhouse Gas operation in 2012.

7 Prospect “Mined out area” hits golden milestone For more information see information more For www.doir.wa.gov.au/GSWA

A relatively new gold mine in the “This is an exciting time for the company heavily mined Eastern Goldfields as each new hole has the prospect of region of Western Australia has locating new high grade zones at Wattle pushed its production past 32,151 Dam, similar to those discovered in 2007,” Mr Houldsworth said. ounces – the equivalent of one tonne of pure gold. “I have no doubt the Spargoville Belt is highly prospective for gold, not to Ramelius Resources achieved the mention nickel – and Wattle Dam sought-after milestone at its Wattle represents the premier opportunity to Dam mine, 25 kilometres southwest of discover a world-class high grade gold Kambalda. The mine is located in the deposit in Australia.” Spargoville Belt and has produced some of the highest grade gold intersections Department of Industry and Resources and specimens discovered to date in Geological Survey Division Executive Phase one of open pit mining is nearing Western Australia. Director, Tim Griffin, congratulated completion at Wattle Dam. Ramelius on its achievement and said The company said the one tonne it clearly showed the on-going mining prospects for the discovery of new ore milestone was significant, as the initial potential of Western Australia. bodies.” mine reserve was just 13,250 ounces. “The Wattle Dam mine began open-pit He said the substantial size of Western “The gold mineralisation at Wattle Dam mining in March 2006 in the Eastern Australia, compared to many other is spectacular and we are extremely Goldfields area – an area that has been mining provinces, meant we had a very confident of a significant grade overall mined for more than a century,” Dr Griffin long way to go to even get to ‘first-base’ from the currently reported resource said. in our knowledge about the mineral estimate,” Ramelius Managing Director potential of many areas in the State. Joe Houldsworth said. “There is still plenty of potential for new gold mines in Western Australia. “The fact that Western Australia is With planning well underway for such a large State, means that unlike Ramelius’ proposed underground mine at “Exploration work by industry and other Australian States, we are yet Wattle Dam, it is now working on a major mapping programs by government are to completely survey the entire State drilling initiative to expand the project’s showing that there are extensive areas using modern airborne geophysical resource base. that remain under-explored with great techniques,” Dr Griffin said.

8 Prospect Industry joins government to strengthen oil and gas sector

Minister Logan and the honourable members of the Western Australian Oil and Gas Industry Coordinating Council.

The past year has seen the total “One of the Council’s main goals will “A road map will identify opportunities value of Western Australia’s be to ensure our local industry has the and challenges for the industry and petroleum sector increase by 11 opportunity to work on some of the look at ways to maximise infrastructure exciting projects that are currently taking per cent, a record high of AUD$16.4 investment and capitalise on the State’s place in the State,” Minister Logan said. service capabilities.” billion, which shows that it is driving the Western Australian economy “Western Australia has world-leading As well as local content, the Council’s along with the mining sector. infrastructure and an experienced other four other distinct priorities are to industry that consistently shows they can promote the establishment of an Asia- These exceptional figures and the compete with the best in the world on Pacific subsea engineering and service AUD$53 billion worth of oil and gas and quality, service and, most importantly, industry in Western Australia, address condensate projects currently under whole-of-life cycle costs.” skills shortages, communicate with industry locally and globally and research development, has raised the question of The Australian oil and gas industry will how the State’s local oil and gas services see unprecedented growth in the next 15 and development. industry can play a significant role in the to 20 years, due to major projects off the Western Australian: Energy Research sector. North West coast including Pluto, Pilbara Alliance (WA:ERA) CEO Dr Ian Finnie, said LNG, Gorgon/Janszlo, Ichthys, Browse research and technology development One of the answers is the re-formation Basin and Sunrise. of the Western Australian Oil and Gas was vital for the oil and gas industry. Industry Coordinating Council. The Council plans to develop a strategic “Projects such as Chevron’s Gorgon plan to assess the technology and and Woodside’s Browse developments The Council brings together leaders infrastructure requirements of the major are situated in remote deep water, with from the petroleum sector, unions, projects, with a view to possible cost- natural gas with high carbon dioxide government, research and services, to savings from the sharing of resources. contents,” Dr Finnie said. help steer the development of the State’s The Australian Petroleum Production oil and gas sector. and Exploration Association’s (APPEA) “Technological advancements are taking place in this State all the time and the The re-convened Council has met Western Australian Chair, Colin Beckett, Council will undoubtedly support our twice in the past few months to discuss said the Council would set a plan for the sustainable future of the industry and growing research and development the Council’s direction in developing complementary services. capacity, promoting it locally and globally. opportunities for the State’s local industry. “Currently, operators are working on oil “Western Australia has never known a and gas projects independently and there more exciting time for the petroleum Chairman Minister Francis Logan said is no clear picture of their combined industry and the research that WA:ERA Western Australia had the potential to infrastructure requirements or the and other fellow collaborators are become a world-leading centre for oil and service capabilities that will be needed to undertaking is already reinforcing Perth’s gas engineering, production, fabrication construct and maintain these projects,” position as a technology hub for the and research capability. Mr Beckett said. Australasian region.”

9 Prospect Opening trade options for service sector

Small to medium sized companies She said taking those first steps into to make their first export sales, or to in the resources industry, that are overseas markets could sometimes feel existing exporters that are looking to looking to grow their business like a leap into the dark. expand into an existing market or develop new ones. overseas, will benefit from a new “My job is to make each step as painless TradeStart position that has been as possible with information, coaching The program will assess a company’s established at the Department and advice along the way,” she said. export capability, prepare it for the of Industry and Resources, in selected markets, identify customers and partnership with Austrade. “I am thrilled to have been appointed distribution channels, and plan visits to to this role and I am looking forward those markets, as well as provide follow- Christine Schultz has been employed as to working with a cross section of up assistance. the dedicated TradeStart Export Adviser clients from the small business service for the resource services sector to deliver companies to the larger equipment the program to Western Australia’s companies. If they service the resources mining, oil and gas equipment and industry then I can help with their services sector. international trade ambitions. “I have the advantage of being part of two Establishing the role recognises the large networks - the Western Australian importance of this sector to the Western Government Office Network (WAGON) and Australian economy and the resources Austrade - both of which offer assistance industry’s global capability and potential. to existing and new exporters. Ms Schultz said services offered through “This is a very exciting time to be working TradeStart would help small and within this industry and the possibilities medium-sized companies have more for companies with commitment and Companies wanting more information confidence, by knowing that they had vision are endless.” well researched, planned approach to can contact Christine Schultz on (08) 9222 0583 or email on exporting, which would be sustainable for The TradeStart program is available [email protected] the company’s future. to new or first time exporters looking

BID FOR ACREAGE (Bids close 2 October 2008) Acreage release CD packages are available from the Department of Industry and Resources and a web version will be available in mid-April: Western Australia www.doir.wa.gov.au/mineralsandpetroleum/acreage_releases.asp The acreage release package contains information about the release areas, land access OPPORTUNITIES TO EXPLORE and how to make a valid application for an exploration permit.

Across the world there are more than 130 giant numerous hydrocarbon shows and gas production CANNING BASIN and super-giant oil and gas fields with Paleozoic at Tubridgi. One area is entirely shallow marine There has been increased interest in the Canning sources and reservoirs that are similar to those in (less than 20 m water depth) and the other Basin in recent times with farmin activity and the Canning Basin. The Canning Basin may be the area straddles the coast. The main targets are companies such as Arc Energy becoming active least explored of the known Paleozoic basins with Mesozoic sandstones. Block sizes are 560 sq km in the basin. There are six Canning Basin release proven petroleum systems. Current production and 717 sq km. areas as follows: is limited but proves the existence of petroleum systems. ™ HiViZLViZgh·ildgZ"gZaZVhZYWadX`hd[h^oZ PERTH BASIN ('&hf`bVcY)&%hf`b#I]ZhZVgZVhaVg\Zan Post-salt targets in this basin include The two central Perth Basin release areas lie in a^Z^ci]Z;^iogdnIgdj\]# Carboniferous and Devonian sandstones, close proximity to the Kwinana oil refinery. The Devonian reef carbonates, as well as Permian ™ Dch]dgZZVhiZgc8Vcc^c\7Vh^c·i]gZZ Dampier to Bunbury sandstones. The pre-salt play is characterised WadX`hd[h^oZ+'),hf`b!*,'+hf`bVcY natural gas pipeline by a thick salt or equivalent shale section passes through the ''*'hf`b#I]ZhZWadX`hVgZ[djcY^cV overlying Ordovician reservoirs with frequent oil kVg^Zind[iZXidc^XZaZbZcihgVc\^c\[gdbi]Z release areas. Block occurrences, which in turn overlie an excellent sizes are 1160 sq AZccVgYH]Za[!;^iogdnIgdj\]VcY

;dg[jgi]Zg^c[dgbVi^dcXdciVXi/ Telephone: +618 9222 3273 www.doir.wa.gov.au Richard Bruce Email: [email protected] www.doir.wa.gov.au/mineralsandpetroleum/acreage_releases.asp Petroleum and Royalties Division, DoIR DoIR_081493_Prospect Opening trade International marketing options for service sector takes West to the world

With a reach that spans all DoIR’s Director for four corners of the globe, the International the Department of Industry Marketing and Resources (DoIR) Development Division Steve Arnott has International Marketing a global focus for Development Division (IMDD) Western Australia is well-positioned to introduce Western Australian companies to the markets of the world.

The responsibilities of the Division are management of the Western Australian Government Overseas Network (WAGON), international niche areas within biotechnology, digital content/software coordination and market development activities, sister state engineering, marine/defence and renewable energy have agreements/relationships and Western Australia’s participation proven themselves as world class and add to these platforms. in Free Trade Agreements. “The mining industry services and the marine/subsea/defence The WAGON component is comprehensive and covers trade and industry clusters alone represent exports in excess of AUD$1 investment offices in Europe, Hong Kong, Malaysia/Singapore, billion a year and illustrate the opportunities that exist. China, the United Arab Emirates, Japan, India, South Korea, Taiwan, Thailand, Indonesia and the United States of America. “I am proud to say that the hallmarks of Western Australia’s intellectual property are both creativity and innovation. Our The international offices are staffed by business experts who challenge is to achieve greater diversification to export high speak several languages and offer trade and export advice value-added product and services that contain Western to Western Australian companies. Of course, the service is Australian intellectual property. This can either be into existing complimentary and offers the international community, as well markets or markets with newly sourced opportunities that as Western Australian industries, a portal to reach one another complement products that we can deliver.” and do business. The Square Kilometre Array (SKA) project is an example of Recently appointed Director for the IMDD, Steve Arnott, is how the merging of intellectual property and geographical certainly well-equipped to handle his new role. location could provide another extraordinary opportunity in In the past 12 years he has been dealing extensively with the development and diversification of Western Australian overseas markets as the Department’s former General industry (for further information go to: www.ska.gov.au). Manager for Investment Attraction. Mr Arnott credits his In his new capacity, Mr Arnott is spearheading a campaign team with investments in areas of mining services, enabling to increase the international business networks of IMDD’s technologies, software development, sub-sea marine and head office in Perth, Western Australia, as well as WAGON’s defence and agribusiness. Previous to this, Mr Arnott managed international offices. the development of the then embryonic Bentley Technology Park for four years, working closely with research organisations, “The managers of the international offices need to be very universities and the venture capital market. proactive at developing networks in the country in which they are based,” he said. Mr Arnott said it was an exciting time to represent Western Australia on the world stage. “In addition, by creating strategic alliances with complementary organisations in tourism, the arts, investment, foreign affairs “The world trading environment has changed significantly over and trade, DoIR is able to provide comprehensive advice and recent times. Globalisation, the restructuring of the global trade support to Western Australian companies.” balance and the greater use of communication technologies, such as the internet, have provided great opportunities However, Mr Arnott offers a note of caution. Companies must for Western Australian industry to now compete in foreign have the resources to meet the increase in demand which is markets,” he said. created by new contracts. “Western Australia is more than resources and agriculture,” Mr Arnott said. For more information on the International Marketing Development Division email: ”While these cornerstone industries will provide the platforms [email protected] for the Western Australian economy for the foreseeable future,

11 Prospect Continuous miner breaks new ground for WA’s iron ore industry Jean Stewart, Department of Industry and Resources

With May this year firmly fixed in its Ore will then be transported to purpose- “It took a great part of the imagination sights for the historic first shipment built shipping facilities at Port Hedland and initiative to then go and seek those of iron ore, the Fortescue Metals along a specially engineered, highly borrowings.” efficient open-access rail system that will Group (FMG) is forging ahead on the FMG’s initiative to replace the traditional carry up to 135 tonnes of ore per car. final stages of development of its blasting, excavating and trucking involved Cloudbreak operations in the Pilbara FMG Executive Director of Operations with extracting iron ore, took them on an extensive search for the right region of Western Australia. Graeme Rowley said reaching that point continuous miner machine. While surface in the three-and-a-half year timeframe With a project team of 3000 on the task, miners are not a new concept and have had been an enormous challenge, with FMG is confident it will make its May 15 traditionally been used in coal mining and deadline for the first shipment to China. the company taking some knocks along road binding, they are new to Western the way. Australia’s iron ore industry. The Cloudbreak development will represent one of the largest ‘single iron “Some people have been very dubious Mr Rowley said FMG travelled the world ore’ mines in the world. FMG’s project is of FMG’s ability to succeed because to see continuous miners in action, among the largest mineral projects to be we brought about broader views and breaking through ores that were harder developed in Australia for some time and supported different concepts,” he said. than Western Australia’s iron ore. will also represent significant earnings “We have had to think outside the box Back in Australia the team worked with potential for the State and Australia as a from the beginning because if you are metallurgists to design better rollers with whole. confined in your own paradigm you won’t tungsten picks. Tungsten metal extended the life of the picks by three or four times, shape the future. It’s been great to be a That reputation is now riding on the which will reduce shut-down time for part of it. success of innovative mining techniques. repairs and maintenance.

Unlike conventional iron ore mining, the “We have also been amazed at the The company purchased 14 machines FMG operations will not drill and blast challenges that confront entrepreneurs. with plans for each to extract 750 tonnes to extract the ore. Instead, continuous Financing AUD$2.4 billion for of ore an hour. However, exciting test mining techniques will carve the ore infrastructure requires significant results indicate each machine will be from the earth with massive tungsten- borrowings against the ore reserves, so churning out about 1000 tonnes per hour, 12 tipped rollers. we had to be confident of the potential. or more. Prospect Mr Rowley said the continuous miners Rehabilitation of the large open-cut were more efficient and resulted in mines will be undertaken continuously less down time than was experienced as mining progresses across the ore with traditional blasting, excavating and body. trucking operations. Once the top soil is removed and set “This technique will enable us to extract aside, the overburden that is removed the ore in layers and minimise the with the mining of the ore, is transported amount of unwanted materials, such as along massive mobile conveyors and clay which contains alumina. This, in turn, dumped behind the extractors into the improves the quality of ore extracted,” previously mined pit. he said. FMG’s reputation is The company believes the aerated overburden will have a similar volume riding on the success so the soil level will not be lowered of innovative mining significantly. The previously mined area can then be top-dressed to the original techniques. level and replanted as the operations “Blasting mixes the ore with those move along. impurities and complicates the extraction process.” Mr Rowley is quick to point out that, despite earlier criticisms FMG faced Mr Rowley confirmed that drill and blast for daring to think outside the square, techniques would still be used to break other iron ore giants, BHP Billiton and through the overburden to expose the ore Rio Tinto Iron Ore, are now trialling the to the continuous mining machines. same continuous mining techniques. World’s heaviest haul railway on track When it came to developing the infrastructure to “We are very proud that we are achieving this success,” transport ore to Fortescue Metals Group’s port he said. facilities, the company once again challenged engineers “The system was designed with a project base of 45 million to think differently to create the world’s heaviest haul tonnes a year, but is already capable of transporting 100 railway. million tonnes a year. We have plans to expand that to 200 Designers were commissioned to develop rail cars and a track million with minimal impact on operations.” which could withstand a 40 tonne axle loading, enabling each FMG was faced with a race against time after Western car to take more than 135 tonnes of ore, plus the 23 tonne weight of the ore cart itself, up to a total of 160 tonnes over the Australia’s 2006-07 cyclone season hampered the rail four axles. construction program.

This is three to five tonnes more per car than similar rail As a result, the company implemented measures to fast track systems operating in the mining industry that have a 35 to rail works to ensure it could meet its original March/April 37 tonne axle loading. deadline.

The company calculates the difference will mean that about an Mr Rowley said rail construction had made up the lost time extra three million tonnes of ore are transported to port each and was back on target. year by the same number of cars than standard operations. “Measures we implemented included the addition of two Executive Director of Operations Graeme Rowley said the construction contractors to build the framework for the rail, as innovative design meant the entire rail system had to be built well as the creation of two extra manual track laying teams to to support the heavier axle loading. complement the automated track layer,” he said. 13 Prospect World’s heaviest haul

railway on track (continued)

The company’s plans for the innovative new rail system won strong State and Federal Government support when FMG proposed an open access system that could be used by other fledgling companies.

“Our belief was that you can’t go ahead with building an extensive rail system like this that is closed to other users, our thinking was to get government support and then use brains rather than dollars to build a cheaper, but better quality system,” Mr Rowley said.

Historically, small isolated ore deposits have not been viable because the transport infrastructure to get the ore to the coast for export was too costly.

FMG believes that its 260 kilometres of open access rail will have the potential to open up stranded deposits.

“With opportunity to get them to market without the infrastructure development costs, there is huge potential for them to be more viable,” Mr Rowley said.

“As part of its expansion plans, the company is considering spur lines to other deposits, such as Christmas Creek and Solomon.”

In a bid to ensure the commissioning of the company’s rail and port system is not delayed, FMG are trucking lower grade ore to the 185km point of the railway.

From there the ore will be loaded onto the rail wagons to wet commission the rolling stock, and then railed to the port facility area. The ore will then be used to establish the port stockpile sheeting and to wet commission the train unloader, stacker, reclaimer and ship loader ready for the first shipment in May.

14 Prospect Fortescue seeking to develop local communities

Graeme Rowley

As Fortescue Metals Group (FMG) Construction of the first of the homes leased back to FMG to be made available progresses towards start-up of its is expected to be completed during May to its port and rail employees. Cloudbreak Mine, the company is this year. The homes have been designed taking steps to integrate more of to enhance the existing streetscape The company will also encourage and facilitate the outright sale of the houses its staff and operations within local and the living comfort of the company’s to employees in a move to foster the communities and move away from employees and families. sense of permanency in the community. the fly-in fly-out practices. Mr Rowley said that while the Mr Rowley said FMG was working hard FMG Executive Director of Operations objective was to improve community to establish a reputation as an employer Graeme Rowley said Fortescue had a sustainability, the homes were also of choice while Western Australia is strong culture of seeking to work with, designed to advance environmental and become a part of, the communities facing a tight labour market. sustainability. in which it operates. “The company has worked hard to create “This has been achieved through the “We do not view communities as service family-friendly rosters and has devoted providers to our operations, they are the adoption and installation of energy considerable time and resources to backbone of them,” he said. and water efficient designs and creating a housing program that will systems,” he said. enable staff to live in the same location “We are now working to extend they work,” he said. our ‘build local communities first’ “The housing design and construction commitment where ever we have major also recognises that employees will As the company progresses towards Pilbara operations. be involved in shift-work, so special start-up, the size of the company’s acoustic designs for wall construction “While our projects in Port Hedland workforce is steadily growing. and sound locks and special door seals are underway, we are also looking to The company currently employs 3000 include the communities of Newman are being used. and Tom Price as beneficiaries of our staff, including contractors, project staff “Black-out window shutters will also ‘communities first’ initiative.” and partners, 600 of which make up the simulate complete darkness for sound company’s directly employed workforce. The company is working on construction sleeping during shift work.” of a total of 250 houses in the Hedland FMG figures show that its directly area, 25 at Pretty Pool in Port Hedland Under agreements with several employed workforce has grown by 150 and 225 in South Hedland. developers, the homes will be built and people in the last quarter of 2007. 15 Prospect Computer system maximises cargo carrying capacity

Shipping companies, importers and exporters are saving millions of dollars thanks to the Australian- designed draft enhancing system known as Dynamic Under Keel Clearance (DUKC).

The sophisticated DUKC system uses computer modelling to analyse wave and tide conditions and accurately measure the clearance between ships and the ocean floor. It is used to guide large bulk carriers and container ships safely in and out of ports with minimum clearance below the keel.

Developed by Melbourne-based OMC International, the technology was Perfect timing: The DUKC system can help Straight and narrow: A port authority pilot guides an introduced to Western Australia in 1994 ships’ captains, as well as port authority iron ore carrier through a tight shipping channel at Port when it was used on BP tankers at the staff, choose optimum departure times for Hedland using the DUKC technology. Port of Fremantle. The following year it heavily laden iron ore carriers and other large ships. was introduced to Port Hedland and the Port of Dampier in the northwest of the berths at present and will have 10 by 2009 through its assistance to the safe state. when Fortescue Metals Group’s (FMG) navigation of large crude oil tankers in new export facilities are fully operational. the outer harbour and larger container Among the biggest beneficiaries in ships accessing the inner harbour. Australia of the technology are those The DUKC technology will deliver greater Fremantle Ports had significant input into associated with iron ore and coal exports. port efficiency for the port authority and modification of the technology for use potentially greater export income for BHP The use of more and larger vessels at with container shipping. Billiton and FMG. Port Hedland for example, has increased In a recent development, a mobile DUKC the port’s export capacity by about 15 Port Hedland is already Australia’s system has been taken aboard ships, million tonnes of iron ore per annum, largest tonnage port and despatched allowing captains to monitor under-keel with further increases expected in the 111 million tonnes of iron ore in 2006/07 next few years. alone. This figure will rise to about 130 clearance in real-time during transit. In million tonnes in 2007-08 and is expected such situations, the captain can react The Port Hedland Port Authority has to continue to rise. to unforeseen events such as departure committed to spend AUD$4 million delays or ship mechanical failures, and over the next five years on the DUKC Shippers using the Port of Fremantle plan and adjust ship speeds to ensure technology. The port has seven iron ore have already benefited from DUKC navigational safety is maintained.

2007 Western2008 AustralianWestern Australian Industry and Export Awards Celebrating 20 years of Industry and Export Awards stellar achievement

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a wideAgribusiness range Export of industries; Award from exporters to from small developingfirms firmswith to solely large established local markets corporations; in 15from Award 5
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Minerals and Energy Export Award ™ >c[dgbVi^dcVcY8dbbjc^XVi^dcIZX]cdad\n:medgi6lVgY and service providersIndustry in a wide Awards range of industries; from exporters to 5
Services Export Award 9d>GB6G%-T&).(TEgdheZXi firms with solely local markets in 15 Award categories including: 5
Education Export Award ™ B^cZgVahVcY:cZg\n:medgi6lVgY ™ 8#N#D¼8dccdg6lVgY[dg:mXZaaZcXZ^c:c\^cZZg^c\VcYIZX]cdad\n Industry Awards 5
Arts, Entertainment and Design Export Award ™ HZgk^XZh:medgi6lVgY 5
Sports, Events and Tourism Export Award 5
C.Y.O’Connor™ Award BVg`Zi^c\VcY9Zh^\c:mXZaaZcXZ6lVgY for Excellence in Engineering ™ :YjXVi^dcIgV^c^c\:medgi6lVgY 5
Regional Exporter Award and Technology™ >ccdkVi^dc:mXZaaZcXZ6lVgY ™ 6gihVcY:ciZgiV^cbZci:medgi6lVgY 5
Marketing and Design Excellence Award Closing Date for Applications is Wednesday 11th July 2007 5
Innovation Excellence Award For more information, or to obtain an application kit, visit DoIRMAR07_1051_BP ™ Hedgih!:kZcihVcYIdjg^hb:medgi6lVgY www.doir.wa.gov.au/awards or contact June Phillips at the Department ™ GZ\^dcVa:medgiZg6lVgY The Awards are proudly sponsored by: of Industry and Resources on 9222 3846 or email [email protected] The Awards are proudly sponsored by: Applications open Wednesday 16th April and close on Wednesday 16th July 2008 For more information, or to obtain an application kit, visit www.doir.wa.gov.au/awards or contact June Phillips at the Department of Industry

and Resources on 9222 3846 or email [email protected] www.doir.wa.gov.au/awards www.doir.wa.gov.au/awards Paving the way for more industrial land

Industry and residents will have greater security around future development of industrial land through a new Draft Strategic Plan for the Kemerton Industrial Park (KIP) in the South West of Western Australia. Kemerton Industrial Park, located 160 kilometres south of Perth near Bunbury, has been established since the 1980s but was reviewed through a detailed planning process.

The draft strategy plan, which was open for public comment until the end of March 2008, is yet to go through the Ready for business: statutory processes. If approved, the A wave of new tenants is expected at Western Australia’s Kemerton Industrial Park. industrial estate could be ready to receive The plan outlines the park’s planned “Access to quality industrial land is industry investment by 2009. expansion in a sustainable manner, critical to the continuing development including a subdivision of 10 blocks being of the Western Australian economy,” The long-planned expansion of the estate prepared to meet current industrial Mr Grigson said. will link into major planning strategies demand. for the area, such as the greater Bunbury The Department of Industry and Plan and Shire planning schemes. Under the proposed plans, park will be Resources and LandCorp are working expanded to a total area of 7543 hectares together to try and make industrial land Western Australia’s Minister for Industry incorporating 2110 ha of Industrial Core, “project ready” to help streamline the and Enterprise Francis Logan said KIP 293 ha for a Support Industry Area and establishment of suitable industries at could become the next major industrial 5140 ha reserved as environmental buffer Kemerton. estate for Western Australia. areas. Prospective investors will still be required “This proposed development is a During the past 15 years, the Western to obtain individual environmental significant and crucial component Australia Government has sought to approvals for proposed industries for the of the State Government’s industrial develop a series of strategic industrial site. development strategy for the next areas across the State. 20 years,” he said. In addition the KIP, Western Australia Department of Industry and Resources has a number of other industrial land “The park is the ideal location to meet Kemerton Industrial Park Project releases planned for the next 12 months. the growing need for land specifically Manager Tom Grigson said strategic designated for the State’s booming industrial estates played an important A new 400 ha industrial area, on the role in the growth and economic industrial sector. verge of Western Australia’s northern development of Regional areas. metropolitan area near the city of “The draft strategy plan balances Joondalup, Meridian Park, will be “Regionally based strategic industrial the various and diverse needs of all releasing 22 ha of industrial land this areas are ideally placed to process stakeholders, including the local year and 18 ha in 2009. primary resources closer to the source, community, industry participants, local adding value to exports and promoting Other industrial land releases planned and State Governments, as well as the regional economic development and for the next 12 months include Enterprise needs of the environment.” employment,” he said. Park at Wangara, Latitude 32 in the Hope Valley-Wattleup area, East Rockingham The proposed plan will extend the existing “The KIP was one of the first strategic Industry Zone and Pinjarra. KIP, which already accommodates two industrial areas to be identified in major exporting industries and several regional Western Australia, with planning support industries with processing that started in the early 1980s. Since then Further details on the Kemerton operations for silicon, titanium dioxide, many studies have been undertaken to Strategy Plan can be found at chlor-alkali, as well as a power station ensure the sustainable development of www.kemerton.com.au and an abattoir. the site.

17 Prospect Resources industry benefiting from Australian Marine Complex common-use facilities

A ship loader is loaded at the AMC-CUF ready for transportation to a Rio Tinto Iron Ore site.

The prosperity of Western Australia’s for large-scale fabrication for the marine, to finance this infrastructure themselves. resources industry is not just making defence and resources industries. John O’Hare, General Manager of Marine, an impact in the ground and under Business Development Manager, AMC Defence, Oil and Gas at the Department the sea - local businesses at the Management (WA) Pty Ltd, Jonathan of Industry and Resources, said the AMC- Australian Marine Complex (AMC) in Smith, said the complex enabled Western CUF had recently been used for a number Henderson, 23 kilometres south of Australia to enhance its significant of projects for the booming resources Perth, are also feeling the effect. natural resource and marine sector industry. development opportunities. Western Australia is home to some of Woodside Energy Limited’s Enfield oil and the biggest resources projects in the “It specifically provides world-class, gas development is already benefiting world and this has created a demand multi-purpose facilities for the from the infrastructure provided at the for the fabrication and assembly of fabrication, assembly and load-out of AMC. large modules, as well as load-out pre-assembled units of up to 15,000 facilities suitable for large and heavy metric tonnes for local, national and Technip and Subsea Seven joined forces infrastructure. international projects,” Mr Smith said. to fabricate and assemble a pipe spool for the Enfield development, located off the More than 100 businesses are now “The AMC creates an exciting range of North West Cape in Western Australia. located within the AMC across four main global engineering and manufacturing Linkweld and SWG were contracted to precincts - the technology, shipbuilding, options as well as low risk common-use deliver the project using the lay-down support industry and fabrication precincts infrastructure that is vital to a company’s area at the CUF. The support frame was and two facilities - the Common User successful operation.” built on-site and the spools assembled Facility (CUF) and Marine Support Facility. onto the frame. The State Government is investing heavily The CUF is a sophisticated, open-access in providing common-use infrastructure, The complete module was loaded onto fabrication and assembly facility, ideal as individual companies would find it hard a barge at the CUF’s heavy load-out

18 Prospect wharf for transportation. The completed module is now on the sea bed at a depth of 550 metres, at the Enfield oil and gas development.

Mr O’Hare said the Ausclad Group of Companies (AGC) was using a 200 tonne portal crane and 20 tonne auxiliary cranes within the CUF’s main fabrication hall to assemble a 2000 tonne jacket structure, topside platform and piles.

“This will be used for Eni Australia Ltd’s The fabrication of a structure Blacktip natural gas project, located in for Eni’s 2000 tonne Blacktip the Timor Sea off the Northern Territory,” offshore installation. he said.

“AGC used its Kwinana-based facilities CUF benefits: to fabricate smaller modules for the project before transporting them via the • 99 metre x 53 metre floating dock and self-propelled modular high-wide load corridor to the CUF for transporters (SPMT) providing land transfer of vessels up to assembly into a complete structure.” 3500 tonnes (currently under construction)

“The structure will then be loaded directly • large 4800 square metre mobile fabrication hall from the CUF using the heavy load-out • 3700 square metre fabrication hall wharves, and transported by barge to the Blacktip field, for installation.” • 200 tonne capacity portal crane

Boddington Gold Mine is also using the • 20 and 50 tonne auxiliary overhead cranes CUF to assemble conveyors and tanks that will be installed at their new gold mine. • 40 hectares of sealed and serviced laydown and assembly areas

The State Government’s confidence in • 15,000 tonne service and heavy lift wharf the resources service industry is shown through the proposed development of a • 300 tonne pedestal crane (adjacent to the 15,000 tonne wharf) subsea cluster within the AMC. • 3000 tonne loadout wharf Mr O’Hare said a dedicated subsea cluster • access to major industrial areas by a high-wide load corridor would establish the State as an oil and gas centre of excellence, servicing the Australian and Asia-Pacific region. CUF accomplishments “The complex is already home to leading oil and gas specialists, FMC Technologies since opening in 2003: and Ferguson Seacabs,” he said. • Generated more than AUD$175 “An expression of interest identified million in business for Western 14 local and international oil and gas Australia suppliers and operators, enthusiastic about establishing operations at the AMC. • More than 170 projects have used the CUF’s world-class wharf, lay- “The co-location of like minded down and fabrication facilities businesses right next door to world- leading infrastructure will have major • Created 1600 new jobs in Western benefits for the oil and gas industry, and Australia further concrete the State’s world-leading resources reputation.” A subsea platform being fabricated in the AMC-CUF’s main fabrication hall.

19 Prospect THE BIG PICTURE Economic trends

World economic review and the slowest in five years (Source: Bureau of such as seven interest rate increases since outlook Economic Analysis 2008). The US is forecast 2006 will restrain real estate investment, to grow at a slower rate of 1.5% in 2008 while export tariffs (which have been raising The world economy recorded a growth rate (Source: International Monetary Fund, 2008). inventories and excess capacity) will slow of 4.9% for 2007, down slightly from 5.0% in manufacturing investment. In contrast, 2006. Growth was particularly slow in the three One of the recent partial indicators, domestic consumption, another driver of months to December, led by the US, Western the Institute of Supply Management’s domestic spending, is likely to rise given the Europe and Japan (Source: International Non‑Manufacturing Business Activity Index, Monetary Fund, 2008). which is comprised a wide range of industries success so far in increasing income levels, from construction to retail, was 41.9 in particularly those of consumers in rural areas. This was accompanied by turmoil in the world January, down from 54.4 in December. This But the lift in consumption is unlikely to offset financial market originating from the US sub- suggests a sharp contraction in the economy. the expected fall in investment and exports prime mortgage market and associated losses Also, 17,000 jobs were recently cut, the first given the weakening external demand from incurred by major global banks. To date, banks fall in four years. Employment growth has the US, Europe and Japan (Source: ANZ, 29 including Merrill Lynch and Citigroup have lost been a vital factor in supporting private January 2008). more than US$130 billion, and more losses consumption, which makes up 70% of GDP are likely due to a continual fall in US house As well as the Government’s ongoing concern (Source: Australian Financial Review, prices and rising mortgage defaults. The final of social tensions over rising income gaps total losses are estimated to be in the range of 7 February 2008). between the urban rich and rural poor, US$200 billion to US$500 billion (Source: ANZ With fears that the economy could deteriorate inflation is another potential problem. Prices Bank Economic Outlook, 29 January 2008). further, the Bush administration announced of many items including food, healthcare and social services have risen for months, As a result, borrowing conditions remain a series of policies targeted at slowing the resulting in an inflation rate of 4.8% for 2007. particularly tight worldwide, and the recent rate of mortgage defaults, and more recently, In order to ease inflation, the Government has sharp sell-off in global equity markets is a a $145 billion fiscal package to stimulate implemented measures like freezing prices symptom of rising uncertainty. Even so, the economic activity. In addition, the US Federal American sub-prime problem appears to Reserve reduced its official interest rate twice of many items, and ordering food producers be largely contained in the US and Europe within eight days. to obtain official permission for price increases (Source: International Herald (Source: The Economist, 6 January 2008). It is worth noting that the economy is Tribune, 24 January 2008; AFR, 22 January actually in a better position than it was Another major concern facing the world is 2008; and ANZ, 29 January 2008). the increase in price of many basic items, prior to previous recessions. For example, including grain, milk, crude oil, iron ore and the corporate sector’s post-tax profits have coal. Most of these price increases are due averaged about 6% of GDP compared to about Japan mainly to the rapid economic expansion 4% in the year prior to the 2001 recession. In the three months to September 2007, of developing countries like China and This means that though the corporate sector Japan’s economy grew by 0.4%, after recording India – whose demand for food and other has cut jobs, the reduction is unlikely to be a fall of 0.5%in the June quarter. While net commodities is stretching the world’s large enough to cause a recession. Another exports of goods and services made the supplies, which have been partially reduced example is the strength of the export market. largest contributions to GDP growth, this was by droughts and diseases (Source: Australian With a depreciated US dollar and strong somewhat offset by a negative contribution Financial Review, 6 February 2008). external demand, particularly from Asia, the from private residential investment (Source: US economy is most likely to gain in terms of Japan Cabinet Office, 2008). This is due Given the current environment, global growth export growth (Source: ANZ Bank, January largely to strict new building laws to protect is forecast at 4.1% in 2008, with declining 2008). properties against earthquakes (Source: growth forecast for developed countries like TimesOnline, 1 November 2007). the US, Japan and the Euro area. Economic growth in developing countries is also forecast China As a result, the Japanese Government has to decline due to slowing export growth. China’s economy is forecast to expand by reduced sharply its growth forecast for the However, this is expected to be offset by these 10% in 2008, down from 11.5% in 2007 country from 2.1 to 1.3% for the fiscal year countries’ strong domestic demand (Source: (Source: IMF, 2008). Most of the growth in ending March 2008. The forecast for the next IMF, 2008). 2007 was due to domestic spending, which fiscal year starting April 2008 is also revised contributed about 9 percentage points; while downward – from 2.2 to 2%. Apart from the US economy net exports contributed about 2.5 percentage adverse flow-on effects from the new building points. The key driver of domestic spending In the last three months of 2007, the US laws, Japan’s economy is facing weaker was fixed asset investment, which made up economy grew by an annual rate of 0.6%, domestic consumption as wages growth has about 40%of GDP last year. Of this investment, down sharply from a growth rate of 4.9% in the slowed. Likewise export demand is slowing, the two main components were real estate September quarter. This was mainly caused by due to a stronger yen and a slowdown in the and manufacturing. negative contributions from private inventory US economy. In the first half of 2007, about investment and residential fixed investment. However, both of these components are 21% of Japan’s exports went to the US, the Housing investment has now declined for likely to experience slower growth rates largest among East Asian economies (Source: the eighth quarter in a row. For 2007 as a in 2008 due largely to government policies ANZ, 29 January 2008; RIETI, 15 January 2008; whole, the US economy expanded by 2.2%, aimed at cooling the economy. Measures and IHT, 19 December 2007). 20 21 Prospect Prospect India 60.0 4.5

4 While India’s economy continued to expand in 50.0 the September quarter of 2007, it grew at a 3.5 slower rate than the comparable period last 40.0

year. Thus, economic growth between April 3 and September 2007 fell to 9.1% from 9.9% 30.0 in the previous year. The decline was due to 2.5 the effects of tight monetary policies, which 20.0 2 Percent in turn, affected the manufacturing sector. 10.0 The sector was also confronted with a strong 1.5 Inflation (per cent)

rupee, reducing its export competitiveness. 0.0 Nonetheless, India is still the fastest growing 1

-10.0 large economy after China (Source: ANZ, 0.5

January 2008; and rediff.com, 30 November (per cent) index price and metals Commodity food 2007). Tight monetary policies appear to -20.0 0 2000 2001 2002 2003 2004 2005 2006 2007 have been successful in containing inflation. As measured by the wholesale price index, Commodity food price index Commodity metals price index Inflation inflation fell from about 6% in March 2007 to World inflation, food and metal prices Source: IMF, October 2007 3.8% in January 12, 2008 (Source: Reserve

Bank of India, 28 January 2008). 15

European Union 10 The 13 economies of the euro area grew by

2.7% in the year to September quarter 2007 5 due to a recovery in investment (Source:

Europa 9, January 2008). For 2007, the euro 0 area is forecast to have grown between 2.4

and 2.8%. But for 2008, the growth rate is -5 forecast at a lower rate of between 1.5 and Percentage change Percentage 2.5%. Private consumption is expected to grow -10 in line with increases in employment and real wage growth. Business investment, however, -15 is expected to slow because of tighter financial conditions and lower world growth. Private -20 residential construction is also expected to 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 slow as the housing market returns to normal Gross domestic product Residential fixed investment in a number of euro area countries. The rise in US Gross Domestic Product and Residential Investment prices due to high food and energy prices since Source: US Bureau of Economic Analysis August 2007 is expected to continue. In 2008,

indirect taxes and other government-related 2.0 3.5 costs are also likely to affect the outcome for prices, as would strong global price pressures 3 stemming from demand for commodities such 1.5 as oil and food (Source: European Central 2.5 Bank, 6 December 2007). 1.0 2 The UK, a non-member of the euro area, but one of the key economies in Europe, 0.5 1.5 recorded a growth rate of 3.1% in 2007, the PercentPercent Percentage point fastest rate in three years. However, growth 1 Percentage point Percentage 0.0 cent Per slowed in the last quarter as a result of the global credit squeeze (Source: National 0.5 Statistics, 12 February 2008). The slowdown -0.5 0 in economic activity is expected to continue in

the coming year in line with tight conditions -1.0 in the financial market, increased debt levels, 2000 2001 2002 2003 2004 2005 2006

subdued real disposable income growth and Exports contribution to growth Gross domestic product a markedly slowed housing market (Source: Japan Gross Domestic Product and Export BBC News, 23 January 2008). Source: Japan Cabinet Office 20 21 Prospect Prospect THE BIG PICTURE Commodity trends

Commodity prices turned against the tide US$1,000 in the first half of 2008. Citigroup has 100.00 of US recession fears in early 2008 with star raised their forecasts by 20% to $900 - $1,000 90.00 performers, including coal, precious metals per ounce for 2008 - 2010. and aluminium, being supported by reduced The supply of gold was restricted in late 80.00 supply as a result of snowstorms in China and January 2008, as major goldmining players power shortages in South Africa. Goldfields, Harmony and AngloGold Ashanti 70.00 As economists debate the impact of rising shut down their South African operations 60.00

uncertainty in global markets on the domestic while power supply company Eksom battled US$/bbl (WTI) economy, soaring business investment figures frequent power cuts, unable to meet increasing 50.00 in Australia suggest that domestic companies demand. South Africa is the world’s second are expecting to benefit from continued strong largest producer of gold after China and Eksom 40.00 demand for commodities led by economic expects power shortages to persist over the

growth in China, which the International next four years. 30.00 Monetary Fund forecasts to reach a solid In real terms, gold bullion still has far to go

10 percent in 2008. 04 Feb May 04 Aug 04 04 Nov 05 Feb May 05 Aug 05 05 Nov 06 Feb May 06 Aug 06 06 Nov 07 Feb May 07 Aug 07 07 Nov 08 Feb to match its 1980 record, but demand from Crude Oil long-term investors, demand for jewellery from Oil Prices Oil prices started the New Year strongly, with expanding middle classes in China and India Source: http://www.eia.doe.gov/emeu/international/crude1.html the West Texas Intermediate (WTI) price hitting and decreasing supply, could see current prices US$99.63 per barrel on 2 January 2008, a avoid the price collapse experienced after the record in nominal terms and almost twice the 1980 price surge. low prices seen in January 2007 when oil came Aluminium 950 close to touching US$50 per barrel. Despite Freezing conditions in China in January 2008 sliding US stock prices and subsequent global delivered a sharp blow to its aluminium 850 uneasiness, the oil price continued to hover production as power shortages and around US$90 per barrel into February 2008. blackouts plagued many mainland provinces. 750 According to ABARE, oil prices are expected Consequently aluminium prices rallied more

to remain relatively high led by demand in than 5 percent, finishing the month at the 650

Asia and Latin America and limited production highest level in three months. US$/oz increases. Chinese demand alone is expected According to ABARE, China is expected to 550 to increase by 5% in 2008, backed by its drive the forecasted 6 percent increase in economic growth and growing transport sector. world consumption in 2008 as a result of its 450 In February 2008, the EIA predicted the WTI strong economic and industrial growth. As a price to average US$86 per barrel for the year, substitute for several uses of copper, including 350 up from 2007’s average of US$72 per barrel. in air conditioners and electrical transformers,

The Organisation of the Petroleum Exporting demand for aluminium is likely to benefit from 04 Feb May 04 Aug 04 04 Nov 05 Feb May 05 Aug 05 05 Nov 06 Feb May 06 Aug 06 06 Nov 07 Feb May 07 Aug 07 07 Nov 08 Feb Countries (OPEC) agreed not to change relatively high copper prices. However, demand Gold Prices production targets at its February 2008 meeting increases are not likely to translate to higher Source: London PM Fix and the EIA expects the oil market to remain prices as aluminium production looks to exceed tight for at least the first half of the year. Later global consumption for the second consecutive in the year, prices may ease as a result of year. slower consumption growth, particularly in the In addition to aluminium capacity increases in US. The EIA also predicts oil supply from non- 3,400 China, including an expansion of the Shandong OPEC countries to increase by 900,000 barrels 3,200 Weiqiao smelter (by 300,000 tonnes) and the per day in 2008. new Huomei Hongjun smelter (200,000 tonnes 3,000 Gold per year), smaller increases are planned in 2,800 2,600 Gold prices have continued their upward march, Venezuela, Russia, Iceland, Iran, Argentina and setting record prices above US$920 per ounce India. According to ABARE, these increases are 2,400 as nervous investors flock to safe-haven assets expected to translate to a 7 percent increase US$/t 2,200 in the wake of US Federal Reserve interest rate in world aluminium production. Subsequently, 2,000 cuts and falling stock prices in January 2008. ABARE predicts aluminium prices to tumble to 1,800 an average of US$2,365 per tonne in 2008. 1,600 In December 2007, ABARE forecast the gold 1,400 price to rise to an average of US$780 per Copper ounce in 2008, which now appears somewhat Strong copper prices for most of last year were 1,200 conservative. In addition to the depressed US attributed to Chinese demand coupled with 1000 dollar and jittery investors, demand and supply supply disruptions in South America. When imbalances have fuelled high prices, with supply imbalances moderated in October 04 Feb May 04 Aug 04 04 Nov 05 Feb May 05 Aug 05 05 Nov 06 Feb May 06 Aug 06 06 Nov 07 Feb May 07 Aug 07 07 Nov 08 Feb some analysts predicting the gold price to top 2007, prices subsequently dipped and stocks Aluminium Prices Source:LME Cash Official 22 23 Prospect Prospect 9,000 increased. Currently, prices around US$7,000 2007 but far above historic levels. per tonne represent a small price increase 8,000 In December 2007, Rio Tinto announced its during 2008, which is significant to analysts plan to spend US$300 million on developing 7,000 who see copper prices as a strong indicator a high grade nickel and copper mine in of global economic health. However, current 6,000 Michigan, United States, which is expected to prices may also reflect falling stockpiles as produce 16,000 tonnes per annum from late

US$/t recent power shortages in China and South 5,000 2009. The company is also in final contract America have reduced their copper output. 4,000 negotiation to develop a nickel mine in US copper consumption is expected to decline Sulawesi, Indonesia, with operations set to 3,000 on the back of weakness in its construction begin in 2015. industry. However, ABARE is mindful of 2,000 Meanwhile BHP Billiton’s Ravensthorpe mine increased Chinese demand supported by in Western Australia finally reported its first strong growth in its construction and power 1,000 production in January 2008 after four years generation capacity, in forecasting world of troubled development. Other major nickel Feb 04 Feb May 04 Aug 04 04 Nov 05 Feb May 05 Aug 05 05 Nov 06 Feb May 06 Aug 06 06 Nov 07 Feb May 07 Aug 07 07 Nov 08 Feb copper prices to average US$6,950 in 2008. projects include BHP’s rival Vale (previously Even analysts that expect waning long-term Copper Prices CVRD) confirming that Onca-Puma (Brazil) Source:LME Cash Official prices due to a global slowdown, predict and Goro (New Caledonia) mines will be demand from China will avert steep declines mechanically completed by the end of 2008. in copper prices. Vale’s Vermelho project has been significantly It’s shaping up to be a busy year for copper delayed, with first production now expected mine production, with world production in 2011. 55,000 expected to increase by around 9 percent. 50,000 Projects include Codelco’s plan to Iron Ore 45,000 commission its Gaby project (150,000 tonnes The iron ore market in 2007 was 40,000 per year) in Chile; and capacity increases characterised by huge expansion projects,

35,000 at Anglo American and Xstrata’s Collahuasi mergers and acquisitions and tense price mine (by 105,000 tonnes per year), Freeport’s negotiations, amid a tight market and 30,000

US$/t Safford mine (by 109,000 tonnes per year) in towering freight prices; and many analysts 25,000 the US and Equinox Minerals’ Lumwana mine expected these features to continue 20,000 (by 169,000 tonnes per year) in Zambia. throughout 2008. 15,000 ABARE forecasts less prosperity for The Baltic Exchange Dry Index (BDI), the key 10,000 Australian copper exporters in 2007-08 with measure of global shipping costs for dry bulk 5,000 total export earnings to fall by 5 percent to commodities including iron ore and coal, 0 AUD$6.2 billion due to lower export prices rose spectacularly last year to more than and appreciation of the Australian dollar. double by November 2007. However, contrary

Feb 04 Feb May 04 Aug 04 04 Nov 05 Feb May 05 Aug 05 05 Nov 06 Feb May 06 Aug 06 06 Nov 07 Feb May 07 Aug 07 07 Nov 08 Feb to expectations that the BDI would remain Nickel Nickel Prices high until 2009, the index plunged in January Nickel experienced a rollercoaster of prices Source:London Metal Exchange 2008 – more than 40% down compared to in 2007, peaking to an all-time high of November 2007 levels. US$54,200 per tonne in mid-May 2007, before tumbling down to between US$26,000 and While some observers viewed the decline as US$36,000 per tonne in the second half of the reflecting demand-side factors and a signal 12,000 year. Despite the rapid descent, the average for future falls in commodity prices, others nickel price of US$37,500 in 2007 made it the suggest that the fall is more likely to reflect fourth consecutive year in which nickel has short-term factors including temporary port 10,000 reached a record annual price. closures and cargo delays.

8,000 As nickel is a key additive in stainless steel, ABARE predicts iron ore prices to rise production cuts by stainless steel producers backed by strong growth in global iron ore and increased nickel substitution led to demand including production growth in 6,000 China’s steel industry, increasing production

US$/t reduced nickel demand in the second half of 2007. Some analysts suggest that substitution costs and a depreciating US dollar. These 4,000 to non-austenitic grades of stainless steel predictions were realised in February 2008 may have permanently altered demand for when Japanese and Korean steel makers 2,000 nickel, making the peak prices of May 2007 agreed to a 65% increase in iron ore prices unrecoverable. ABARE forecasts stainless with Vale, setting the new benchmark. Given 0 steel production and nickel purchases to the strong demand, many analysts see skill increase in 2008 to meet rising demand and and equipment shortages as the only forces Feb 04 Feb May 04 Aug 04 04 Nov 05 Feb May 05 Aug 05 05 Nov 06 Feb May 06 Aug 06 06 Nov 08 Feb predicts nickel prices to average US$27,500 putting a lid on even higher growth in the iron Baltic Dry Index per tonne, which is considerably lower than ore sector. Source: The Baltic Exchange Ltd 22 23 Prospect Prospect Commissioned Projects Committed Projects (as at 5/3/2008) (for financial year 2007-2008)

Iron Ore Ammonium Nitrate Iron Ore Pilbara - Dampier Port Expansion Kwinana - Ammonium Nitrate Plant & Expansions Hope Downs - Iron Ore Mine HAMERSLEY IRON PTY LIMITED CSBP CHEMICALS HOPE DOWNS LIMITED Hamersley Iron has expanded the capacity of its port CSBP is nearing completion in doubling capacity of its Development proposals were approved by the facilities at Dampier Port from 120 Mt/a to 145 Mt/a. existing ammonium nitrate manufacturing facility, at government on 31 March 2006. Hope Downs Iron Ore This work included installation of a new car dumper, its Kwinana operations. The duplicate nitric acid and assigned a 50% interest in the project to Hamersley screen house and related facilities. ammonium nitrate plants have been commissioned. Iron. Construction work is well advanced. Construction of a new ammonium nitrate prilling Expenditure: $920m. Expenditure: $1.5b. plant is nearing completion with commissioning and Employment: Construction: 800; Operation: 200 full integration of the expansion project to occur in Q2 Employment: Construction: 1000; Operation: 300 Pilbara - Rapid Growth Project 3 2008. Mid West region - Koolanooka/Blue Hills Hematite BHP BILLITON IRON ORE PTY LTD Expenditure: $260m. Iron Ore Mine The US$1.5 billion Rapid Growth Project 3 ("RGP3") Employment: Construction: 500 MIDWEST CORPORATION LIMITED expansion to increase capacity of BHP Billiton's Midwest Corporation commenced transporting iron iron ore operations in the Pilbara to 129 Mt/a was Coal ore fines from stockpiles at Koolanooka, about 160 km completed in Q4 2007. The key elements of RGP3 Collie - Coal Mine (Ewington I) southeast of Geraldton, in January 2006, with the first exports shipped in February 2006. Midwest proposes to comprise the expansion of the Area C mine by 20 Mt/a, THE GRIFFIN COAL MINING COMPANY PTY LIMITED additional sidings on the Newman railway, and port re-open the Koolanooka and Blue Hills hematite iron Griffin Coal plans to develop its Ewington I deposit, works at Nelson Point and Finucane Island. ore mines at a rate of 1-2 Mt/a, with timing dependent approximately 2 km east of Collie, which has estimated on government approvals. The re-opening of the Expenditure: $2b. recoverable reserves of 75 Mt. The mine will produce mines is being environmentally assessed at a Public Employment: Construction: 900; Operation: 150 about 2 Mt/a coal for private sector customers, Environmental Review level. including Griffin Energy's nearby Bluewaters 1 power Kaolin station, presently under construction, and its proposed Expenditure: $26.4m. Bluewaters 2 power station. Employment: Construction: 40; Operation: 60 Kwinana - Kaolin Processing Plant and Mine Expenditure: $20m. Pilbara - Iron Ore Mine, Rail and Port Development WA KAOLIN HOLDINGS PTY LTD FORTESCUE METALS GROUP (FMG) WA Kaolin is in the process of commissioning its Diamonds Kwinana pilot plant to produce a saleable product FMG is constructing a 45 Mt/a iron ore mine at Cloud Argyle - Underground Diamond Mine targeting the paper coating market. This will lead to Break in the Chichester Ranges of the eastern Pilbara. production of 250,000 t/a coating grade kaolin. The ARGYLE DIAMOND MINES PTY LIMITED The mine will be serviced by a multi-user railway kaolin will be sourced from its Wickepin deposit some Argyle Diamonds has committed to an underground and new port facilities at Port Hedland. Earthworks 200 km northeast of Kwinana. mine at Argyle after a $100 million feasibility study was and dredging are nearly complete at Port Hedland. Construction of the railway and mine commenced in Expenditure: $130m. completed in late 2005. Argyle is progressing the main decline and full production for the first stage, involving December 2006 to supply Chinese customers. First ore Employment: Operation: 50 7-8 Mt/a ore extraction, is expected to be reached on ship is planned for May 2008. Nickel in 2011, with average production of about 17 Mcts/a Expenditure: $3.2b. of diamonds until 2018. A second stage project will Employment: Construction: 2500; Operation: 840 Ravensthorpe - Lateritic Nickel Mine and Hydro- extend mine life to 2024. Pilbara - Rapid Growth Project 4 metallurgical Processing Plant Expenditure: $1.2b. BHP BILLITON IRON ORE PTY LTD BHP BILLITON - RAVENSTHORPE NICKEL Employment: Construction: 250; Operation: 500 OPERATIONS PTY LTD In March 2007, BHP Billiton announced its Board Electricity approval for Rapid Growth Project 4 ("RGP4") which The project includes an open-cut mine and will increase system capacity across its Pilbara iron hydrometallurgical process plant using laterite ores. Collie - Bluewaters 1 Coal-Fired Power Station ore operations to 155 Mt/a at a cost of US$2.2 billion. The plant will have the capacity to produce up to 50,000 GRIFFIN ENERGY RGP4 includes development of a new crushing and t/a of contained nickel and 1400 t/a of cobalt in an Griffin Energy is constructing the first of two 208 MW screening plant, as well as additional stockyards, car mixed hydroxide intermediate product to be recovered coal-fired power stations at the proposed Coolangatta dumping and train loading facilities at Mt Whaleback. at the company's Yabulu refinery in Queensland. Plant industrial estate, 10 km northeast of Collie. Infrastructure upgrades will also be implemented at commissioning is underway, with the first shipment of Commissioning of the Bluewaters 1 base load power satellite ore bodies and the rail and port operations. product leaving Esperance in December 2007. station is expected by late 2008. Work has started and initial production is expected to Expenditure: $2.8b. Expenditure: $400m. commence in the first half of 2010, with ramp-up to full Employment: Construction: 2000; Operation: 650 Employment: Construction: 600; Operation: 50 capacity expected to be achieved by the end of 2012. Expenditure: $2.6b. Oil & Gas Developments Gold Stybarrow (Carnarvon Offshore Basin) - Oil Field Boddington - Gold Mine (Wandoo Expansion) Iron Ore Processing BHP BILLITON PETROLEUM PTY LTD BGM MANAGEMENT COMPANY PTY LTD Kwinana - HIsmelt Commercial Iron Making Plant First oil production from the Stybarrow project BGM Management Company Pty Ltd, on behalf of HISMELT CORPORATION LIMITED commenced in November 2007. Located approximately Newmont and AngloGold Ashanti, is developing HIsmelt Corporation, in a joint venture with Nucor 65 km northwest of Exmouth in 825 metres of water, the Wandoo project, based on mining the extensive (25%), Mitsubishi (10%) and Shougang (5%), has Stybarrow is the deepest oil field development ever bedrock resource that underlies the mined-out oxide developed a commercial-scale HIsmelt process plant resource. Production will be up to 600,000 oz/a of undertaken in Australia. It involves a nine well subsea at Kwinana, near Perth. The first stage of the plant is gold and about 20,000 t/a copper in concentrates over development and a FPSO vessel with capacity of designed to produce 800,000 t/a of pig iron from iron a 17-year mine life. Initial production is expected by approximately 80,000 bbl/d of oil. Stybarrow and ore fines, coal and fluxes. First hot metal production late 2008. The Wandoo project will result in significant the adjacent small oil rim of the Eskdale field have commenced in mid-2005, with commissioning growth in and around the rural community of estimated recoverable oil reserves of 60-90 million continuing towards full production capacity over three Boddington 120 km south east of Perth. barrels. The estimated economic field life is 10 years. years. Expenditure: $2b. Expenditure: $860m. Expenditure: $800m. Employment: Construction: 1500; Operation: 650 Rare Earths Employment: Construction: 320; Operation: 65 Heavy Mineral Sands Mt Weld - Rare Earths Operations Oil & Gas Developments Gwindinup - Heavy Mineral Sands Mine LYNAS CORPORATION LTD Angel (Carnarvon Offshore Basin) - Gas and BEMAX CABLE SANDS (WA) PTY LTD The Mt Weld deposit, located about 35 km south of Condensate Field The Gwindinup mineral sands project is located Laverton, contains an estimated resource of 7.7 Mt approximately 30 km south of Bemax's Bunbury WOODSIDE ENERGY LTD at 11.9% grade for 917,000 tonnes rare earth oxides Mineral Separation Plant ("MSP") and comprises The Angel gas and condensate field, operated by (“REO”). The development involves open pit mining at the Gwindinup North and South deposits. Mine Woodside as part of the North West Shelf Venture Mt Weld, trucking the ore to Leonora and then railing it development activities are progressing and mining is ("NWSV"), includes the NWSV's third fixed production to Esperance Port for export. Mining has commenced, expected to commence during Q1 2008. An existing platform, which will be remotely operated, three with first production scheduled in the second half wet plant will be used for the project and material will subsea production wells and a 50 km subsea pipeline of 2008. The ore will be shipped to a $220 million be treated in the Bunbury MSP. Gwindinup contains which will link the new platform to the existing North processing plant in Malaysia, with initial production a reserve of 5 Mt of ore at a heavy mineral grade of Rankin production facility. Angel is expected to start-up capacity of 10,500 t/a REO and is expected to be 12.6% and is expected to have a mine life of more than in Q3 2008. The platform will be capable of processing expanded to 21,000 t/a. six years. 800 million standard cubic feet of gas a day and 50,000 Expenditure (WA only): $90m. Expenditure: $88m. bbl/d of condensate. 24 Employment: Construction (WA only): 12; Operation: 40 Employment: Construction: 120; Operation: 35 Expenditure: $1.6b. Prospect Projects Under Consideration (as at 5/3/2008)

Carnarvon Basin - Pluto LNG Ord River - Ord River Irrigation Scheme Neerabup - Perth - Bioenergy WOODSIDE ORD STAGE 2 M2 AREA SPIRITWEST BIOENERGY PTY LTD Woodside approved the Pluto LNG project in Q3 2007. The potential exists for a 30,000 ha irrigated SpiritWest is developing a 46 MW baseload power Construction has commenced on Sites A and B on the agricultural development immediately to the northeast station at Neerabup, 33 km north of Perth. The power Burrup Industrial Estate for export of LNG in Q4 2010. of the existing Ord Stage 1 development in the far north station will use timber waste from pine plantations Expenditure: $11.2b. of Western Australia. Environmental approval has been nearby and other wood residues. Environmental Employment: Construction: 3000; Operation: 200 given for an irrigated agricultural project, and a native approval was received in 2006, and a final investment title agreement has been signed. The State is currently decision is expected by mid-2008, with construction North West Shelf - Project Expansion - 5th LNG considering development options. commencing shortly thereafter. Commercial operation Train Expenditure: $500m. is scheduled for 2010. WOODSIDE ENERGY LTD Employment: Construction: 650 Expenditure: $100m. A final investment decision for the 4.4 Mt/a Train 5 Employment: Construction: 250; Operation: 45 expansion, with an associated second LNG loading Ammonia/Urea jetty and extra processing facility support, was Gold announced in June 2005. Site work started in Q3 Burrup Peninsula - Ammonia Urea Plant 2005. Commissioning is due in Q4 2008 and first LNG DAMPIER NITROGEN Kalgoorlie - Super Pit - Golden Pike Cutback export cargoes are planned for Q4 2008. The fifth train Dyno Nobel has purchased the interests of Plenty River KALGOORLIE CONSOLIDATED GOLD MINES PTY LTD will boost the North West Shelf project's total LNG (Plentex) and Thiess in a large scale ammonia/urea KCGM is planning to extend the life of its Fimiston production capacity to 16.3 Mt/a. project to be located on the Burrup Peninsula. The open-cut mine by five years to 2017, with the Golden Expenditure: $2.425b. company is also conducting a feasibility study into Pike Cutback. This will entail additional tailings Employment: Construction: 1500; Operation: 20 developing a 230,000 t/a ammonium nitrate production storage facilities and waste rock dumps. KCGM is facility, which could be located adjacent to the also required to develop a detailed closure plan. Pyrenees Development (Carnarvon Offshore Basin) ammonia/urea plant. The alternative (to a large scale Environmental approval is expected in Q1 2008. - Oil Fields ammonia plant) of building a small scale ammonia Employment: Operation: 1043 BHP BILLITON PETROLEUM PTY LTD plant to supply the ammonium nitrate plant is being In July 2007, BHPB Petroleum approved the Pyrenees investigated as part of the feasibility study. Sunrise Dam - Gold Mine - Underground oil development, located 45 km north of Exmouth. The Expenditure: $900m. Development development comprises the Crosby, Ravensworth and Employment: Construction: 1000; Operation: 130 ANGLOGOLD ASHANTI LTD Stickle oil fields which have estimated recoverable oil AngloGold Ashanti commenced underground reserves in the range of 80-120 million barrels. The Bauxite/Alumina development in October 2003 at the Sunrise Dam gold project involves the development of 13 subsea wells mine to test the feasibility of expanding to underground Wagerup/Willowdale - Alumina Refinery Train 3 connected via flowlines to a FPSO vessel, which will operations. The study involves the development of Expansion be capable of producing about 96,000 bbl/d of oil. First two declines, totalling 9 km in length, in the vicinity production is expected during the first half of 2010 and ALCOA WORLD ALUMINA AUSTRALIA of previously defined reserves. The first underground the estimated economic field life is 25 years. Alcoa is investigating the feasibility of a third gold was produced in Q4 2004. Progress continued Expenditure: $2b. production train expansion at its Wagerup alumina on the underground project in 2006-07, with 2305m refinery to increase capacity up to 4.7 Mt/a. On 14 Van Gogh (Carnarvon Offshore Basin) - Oil Field of underground capital development and 5901m of September 2006, the Minister for the Environment operational development having been completed APACHE ENERGY LIMITED approved the expansion proposal. A decision on the during the year. The Van Gogh oil development, located around 50 project go-ahead is dependent on market factors. Expenditure: $87m. km northwest of Exmouth, will utilise a FPSO vessel Expenditure: $1.5b. with a processing capacity of 63,000 bbl/d of oil and Employment: Construction: 1500; Operation: 260 Heavy Mineral Sands storage capacity of 620,000 barrels. It will be linked to two subsea drill centres with 10 production wells. Worsley/Boddington - Alumina Refinery Expansion Happy Valley - Heavy Mineral Sands Mine Drilling commenced in January 2008 and will continue to 4.4Mt/a BEMAX CABLE SANDS (WA) PTY LTD until September 2008. Subject to obtaining all the WORSLEY ALUMINA PTY LTD Located adjacent to the Bemax's Gwindinup deposits, necessary government approvals, the field installation BHP Billiton has environmental approval to expand the project will involve the mining of mineral sands of Van Gogh is expected to start in late 2008 and be in its Worsley alumina refinery from 3.7 Mt/a to 4.7Mt/a. from two deposits (Happy Valley North and South) production by early to mid-2009. The expected life of Approval for this $2 billion expansion is dependent on located on private land and in a State Forest. The the development is 12-15 years. market conditions and workforce availability. level of assessment for the project has been set at Expenditure: $600m. Expenditure: $2b. Environmental Review and Management Program and Vincent (Carnarvon Offshore Basin) - Oil Field Employment: Construction: 1500; Operation: 200 a document is expected to be completed early in 2008. WOODSIDE ENERGY LTD Happy Valley contains a reserve of around 6 Mt of ore Copper at a heavy mineral grade of 11.3%. Approval of the first phase of the Vincent oil development was given in March 2006. The field is Pilbara - Panorama Copper/Zinc mine Expenditure: $69m. located approximately 50 km northwest of Exmouth CBH RESOURCES LTD Employment: Construction: 100; Operation: 30 in a water depth of about 350 metres. Oil will be The Panorama Project is located about 110 km Jangardup South - Heavy Mineral Sands Mine produced through an eight well subsea development southeast of Port Hedland. It involves the construction BEMAX CABLE SANDS (WA) PTY LTD and processed and stored in a FPSO vessel. First oil and operation of an open pit mine and associated The Jangardup South minerals deposit is situated 54 is planned for Q3 2008, with initial production at about infrastructure, with a mine life of approximately eight km south of the Nannup township and adjacent to the 100,000 bbl/d. years. Approximately 75,000 t/a of copper concentrate D'Entrecasteaux National Park. Cable Sands estimates Expenditure: $1b. and 85,000 t/a of zinc concentrate are planned to be that the deposit would provide 1.8 Mt of minerals. produced for shipment via Port Hedland. The project Vanadium currently is undergoing environmental assessment Feasibility and environmental studies are well through a Public Environmental Review. advanced. An environmental impact statement Windimurra - Vanadium Pentoxide mine and for the project is being prepared. Expenditure: $250m. processing plant Expenditure: $70m. Employment: Construction: 176; Operation: 150 WINDIMURRA VANADIUM LIMITED Employment: Construction: 100; Operation: 50 WVL plans to complete construction of its processing Electricity Keysbrook - Heavy Mineral Sands Mine plant and begin operations in late 2008. Once operational, the mine will produce approximately 5,600 Mid West Region - Central West Coal & Coolimba OLYMPIA RESOURCES LIMITED t/a of contained vanadium. The process plant will Power Projects Olympia proposes to develop an open cut mineral produce both ferro-vanadium (an alloy of vanadium, AVIVA CORPORATION LTD sands mine located near the township of Keysbrook, aluminium and iron) and high purity vanadium Aviva Corporation Ltd is progressing the development approximately 70 km south of Perth. Olympia has pentoxide. of the Coolimba Power Project, a 2 x 200 MW base identified proven and probable reserves of 41 Mt of ore Expenditure: $296m. load coal-fired power station and an associated coal containing 1.2 Mt of zircon, ilmenite and leucoxene. Employment: Construction: 400; Operation: 120 deposit located 20 km south of Eneabba. Coolimba The concentrate will be processed at Cable Sands' will be the first power station in WA to deploy leading plant at Bunbury over the mine's eight year life. In Agriculture edge emissions technology for carbon capture, late-October 2007, the EPA recommended approval desulphurisation and air cooling. Upon commissioning, of the project subject to Olympia meeting a number Mantinea Flats - Ord River Irrigation Scheme (Stage the power station will constitute 8% of the installed of conditions in the development and operation of 2 Development) - Mantinea Flats capacity in the SWIS network and have an operating the mine. If the EPA recommendations are accepted, TBD life of 30 years. Construction is planned to commence Olympia will seek local government clearance to begin The conceptual project consists of developing and in late 2008 and will extend over three years for development of the mining operation in the second half servicing approximately 80 farms (about 4200 ha total) completion in 2011-12. of 2008. at Mantinea Flats for irrigated intensive horticulture Expenditure: $1b. Expenditure: $18m. which will then be offered for sale. Employment: Construction: 600; Operation: 100 Employment: Operation: 30 25 Prospect Projects Under Consideration (as at 5/3/2008)

Kwinana - Titanium Dioxide Pigment Plant Mid West Region - Mt Karara Magnetite Mine Pilbara - Rapid Growth Project 5 Expansion GINDALBIE METALS LIMITED BHP BILLITON IRON ORE PTY LTD TIWEST JOINT VENTURE Gindalbie Metals plans to develop an 8 Mt/a magnetite In February 2008, BHP Billiton announced approval Tiwest has environmental approval for the staged concentrate project at Mt Karara, which has a resource for US$1.094 billion of capital expenditure to underpin expansion of its Kwinana pigment plant to 180,000 life of about 60 years. It is proposed that the magnetite the next stage of its iron ore expansion. The funding t/a. A decision to proceed with further stages within concentrate will be transported by slurry pipeline represents the pre-approval expenditure for RGP5 this approved expansion is dependent on market to the port of Geraldton for export and pelletising and is proposed to be used to commence duplication conditions. overseas. The project is currently undergoing of the railway track between the Yandi mine and Port Hedland, and to begin the expansion of the Employment: Construction: 108; Operation: 98 environmental assessment at a Public Environmental inner harbour at Port Hedland. The construction Review level. The company anticipates that first Shark Bay - Coburn - Heavy Mineral Sands Mine of the second railway is expected to begin in May shipment will occur in Q1 2010, subject to government 2008, subject to various approvals, and will create GUNSON RESOURCES LIMITED approvals. the rail capacity to support the company's planned Gunson proposes to develop the Coburn mineral Expenditure: $1b. expansion to more than 300 Mt/a. The early funding sands project, located south of Shark Bay. The Employment: Construction: 400; Operation: 240 will also allow early procurement of long lead items project consists of the Amy Zone deposit which has and detailed engineering studies to expand capacity a total indicated and inferred resource of 837 Mt, Mid West Region - Mungada Hematite Mine at Yandi and Area C. The approval for the balance of averaging 1.4% heavy minerals. Mining approval has GINDALBIE METALS LIMITED the RGP5 capital is expected during the second half been received for the southern two-thirds of this Gindalbie Metals is proposing to develop a direct of 2008. resource, which contains a proven and probable ore shipping hematite ore project of up to 3 Mt/a at Expenditure: $1.1b. reserve of 124 Mt at 1.34%. A second Memorandum Mungada, 85 km east of Morawa. The ore will be of Understanding was signed in October 2007 with Pilbara - West Pilbara Iron Ore Project trucked to Morawa, then railed to the port of Geraldton CTIEC of China providing for CTIEC's parent, CNBM for export. The project is currently undergoing AUSTRALIAN PREMIUM IRON JOINT VENTURE and an electric power supply company in the Chinese environmental assessment at a Public Environmental The Australian Premium Iron Joint Venture is city of Bengbu, to take a combined 40% in the project. Review level. proposing to develop the West Pilbara Iron Ore Project. A formal agreement between the parties is expected Stage 1 of the project is based on the production of Expenditure: $75m. to be concluded in March 2008, so that construction of approximately 25 Mt/a of direct shipping iron ore from the Coburn mine and mineral separation plant in China Employment: Construction: 200; Operation: 170 a group of three mines sites approximately 50 km can commence in mid-2008. Mid West Region - Weld Range Iron Ore Mine southwest of Pannawonica. The ore will be exported Expenditure: $100m. via a new railway and port facility located on the MIDWEST CORPORATION LIMITED Employment: Construction: 170; Operation: 110 Pilbara coast. Subject to the successful completion Midwest Corporation proposes to develop a 15-20 of feasibility and environmental studies (in process) Iron Ore Mt/a iron ore mine at Weld Range 65 km southwest and receipt of government regulatory approvals, the of Meekatharra, producing a mix of hematite lump company anticipates that the first shipment will occur Great Southern Region - Southdown Magnetite Mine and fines. The project is expected to utilise a new rail in the second half of 2011. GRANGE RESOURCES LIMITED line and a new deep water port facility at Oakajee. The Expenditure: $2b. company commenced an extensive drilling program in Grange is finalising a bankable feasibility study on Employment: Construction: 1300; Operation: 700 June 2006 and is currently completing a pre-feasibility the Southdown magnetite project, 90 km northeast study. of Albany. The company plans to produce 6.6 Mt/a Iron Ore Processing magnetite concentrate from 2011. The concentrate Expenditure: $800m. Pilbara - Cape Preston - Iron Ore Mine and will be transported via a slurry pipeline to the Port Employment: Construction: 900; Operation: 220 Pellet Plant of Albany for export and pelletising in Malaysia. The Pilbara - Balla Balla Vanadium project is currently being environmentally assessed CITIC PACIFIC MINING at a Public Environmental Review level. Subject to AUROX RESOURCES LIMITED CITIC Pacific Mining – the Australian subsidiary of environmental approvals, construction is anticipated to Aurox has recently signed contracts for the design, Hong Kong listed company CITIC Pacific - is planning commence in Q4 2008, with commissioning Q4 2010. engineering and manufacture of all major components the development of a magnetite iron ore mine and processing plant producing 27.6mtpa of a mix of Expenditure: $893m. required to commission both the mine and port aspects of the Balla Balla magnetite iron ore project located magnetite concentrate and pellets. The Sino Iron Employment: Construction: 700; Operation: 250 mid-way between Karratha and Port Hedland. Aurox project promises to be the first project under the Mid West Region - Extension Hill Hematite Mine has also signed two 15-year 3 Mt/a magnetite sales Iron Ore Processing (Mineralogy Pty Ltd) Agreement. The project will require substantial infrastructure, MT GIBSON IRON LIMITED agreements with major Chinese steel companies. First including a port, 51Gl desalination plant and a 450 MW export of magnetite is expected in 2011.Granted mining Mount Gibson Iron has environmental approval for a power plant. leases contain a 306 Mt resource grading 0.66% V2O5, 2 Mt/a hematite mining operation at Extension Hill, Expenditure: Estimated $3.5b. 330 km southeast of Geraldton. The ore will be railed 43% Fe and 13% Ti, including an initial ore reserve of Employment: Construction: 2500; Operation: 600 to the port of Geraldton for export. The Mount Gibson 54 Mt at 0.73% V2O5. Figures confirm a likely 30-year board has approved commencement of construction mine life. Pilbara - Cape Preston - Mine and Processing Plant of the project. First ore shipments are expected in Pilbara - Brockman 4 Iron Ore Mine MINERALOGY PTY LTD January 2009. HAMERSLEY IRON PTY LIMITED The Iron Ore Processing (Mineralogy Pty Ltd) Expenditure: $73m. Agreement is based on the development of Mineralogy Hamersley Iron has approved the development of its Employment: Construction: 150; Operation: 100 Pty Ltd’s Fortescue magnetite deposits, located Brockman 4 deposit. Preliminary construction work near Cape Preston, 70 km southwest of Dampier. Mid West Region - Extension Hill Magnetite Mine has commenced, with commissioning anticipated in Mineralogy has sold subsidiary companies with right- ASIA IRON 2010. Full capacity of 22 Mt/a is expected to be reached to-mine agreements to two purchasing companies, Asia Iron has environmental approval to produce up in 2012. CITIC Pacific Ltd and Australasian Resources, which to 5 Mt/a of magnetite concentrate, which will be Expenditure: $1.521b. are planning the development of separate projects under the Mineralogy State Agreement. Australasian transported by slurry pipeline to the port of Geraldton Pilbara - Cape Lambert Port Expansion for export. Site works are anticipated to commence Resources Ltd has announced an agreement with ROBE RIVER MINING COMPANY PTY LIMITED in the first half of 2008, plant construction is planned Shougang Corporation which will fund a feasibility for late 2008/early 2009, with first exports by the end Robe River Mining is planning to expand the capacity study on a combined concentrate/pellet and DRI of 2010. of its port facilities at Cape Lambert, east of Karratha. project. If viable, Shougang will fund the project The expansion will lift the design iron ore export development, with Australasian keeping a 50% Expenditure: $715m. capacity of the facilities to 85 Mt/a. It is anticipated interest. Employment: Construction: 1000; Operation: 280 that the expansion will be completed in Q4 2008. Expenditure: $5b. Mid West Region - Jack Hills Hematite Mine Stage 2 Expenditure: $1.1b. Employment: Construction: 2000; Operation: 800 MURCHISON METALS LIMITED Employment: Construction: 450; Operation: 70 Murchison Metals commenced trucking 1.5 Mt/a Molybdenum Pilbara - Pardoo Hematite DSO Mine hematite from its Jack Hills operations to the port of Pilbara - Spinifex Ridge Mo/Cu mine Geraldton in December 2006. The company expects ATLAS IRON LTD MOLY MINES LIMITED to increase production to 2 Mt/a in 2008 before Atlas Iron is completing a definitive feasibility study The Spinifex Ridge Project is located 50 km northeast proceeding to Stage 2, which would involve a further on the mining of 1 Mt/a of iron ore from the Pardoo of Marble Bar in the Pilbara region of Western increase to 10-25 Mt/a of hematite. The ore will be deposit 75 km east of Port Hedland. Atlas expects to Australia. It is based on a resource of 469 Mt at transported by a new railway to a new deepwater port commence mining in 2008 (subject to government 0.06% molybdenum and 0.09% copper. Moly Mines at Oakajee north of Geraldton. A definitive feasibility regulatory approvals) before increasing production to has completed a definitive feasibility study which has study and exploration drilling program on the Jack 3 Mt/a by 2010. The company intends to truck the ore forecast 240 Mlbs of molybdenum concentrate and 270 to the public access berth at Port Hedland for export. Hills Stage 2 project is progressing. Mlbs of copper concentrate will be produced in the Expenditure: $750m. Expenditure: $8.3m. first 10 years of the operation. The project's processing Employment: Construction: 450; Operation: 350 Employment: Operation: 70 plant design capacity is at 20 Mt/a. The project is 26 Prospect Projects Under Consideration (as at 5/3/2008)

undergoing environmental assessment. looking at new technologies associated with gas-to- appraisal activities and concept evaluation studies to Expenditure: $1.084b. liquids and DME, as well as possibilities for domestic select a preferred development concept in the latter supply. half of 2008. Woodside is targeting an LNG production Employment: Construction: 400; Operation: 375 Expenditure: $8b. facility capable of supporting up to 15 Mt/a of LNG. Employment: Construction: 2000; Operation: 500 Start-up of LNG production is expected in the period Nickel 2013 to 2015. Macedon (Carnarvon Offshore Basin) - Gas Field Goongarrie - Kalgoorlie Nickel Project - Tern/Petrel (Bonaparte Offshore Basin) - Gas Fields BHP BILLITON PETROLEUM PTY LTD Mine (laterite ore) and Hydrometallurgical SANTOS LIMITED The Macedon gas field, located about 50 km north of Processing Plant The offshore Petrel gas field, discovered in 1969, is Exmouth, was discovered in 1992 by the West Muiron-3 HERON RESOURCES LTD located about 250 km west of Darwin on the WA/NT well, with a follow-up appraisal campaign in 1994. BHP seabed border in the Bonaparte Basin. The offshore This project will involve a mine and hydrometallurgical Billiton is continuing to investigate domestic market processing plant at Goongarrie (about 85 km north Tern gas field, discovered in 1971, is located about opportunities for Macedon, which is estimated to 300 km west of Darwin in WA waters in the Bonaparte of Kalgoorlie) producing up to 50,000 t/a of nickel contain a gas resource of up to 1.2 Tcf. Gas recovered to Basin. Field development options include installation from laterite resources of 903 Mt grading 0.74% date is dry, containing no condensate or LPG. of unmanned offshore production platforms with a Ni and 0.05% Co. Heron and CVRD Inco (now Vale Pilbara - Devil Creek Development Project pipeline to a gas treatment plant south of Darwin. The Inco) are undertaking a pre-feasibility study which development possibilities for these fields have been APACHE ENERGY LTD is due for completion in January 2009. Further ore enhanced by recent significant discoveries by other reserve estimation, mine planning and metallurgical Apache Energy intends to develop the Devil Creek parties nearby, which may provide tie-in potential for testing will be undertaken. The main focus will be on Development Project (DCDP), 45 km southwest of Petrel and Tern to service domestic gas customers. development of three flowsheet applications, leading to Dampier. The DCDP is a proposed greenfield gas A conceptual plan involves initial development of development comprised of an unmanned offshore preliminary plant design, final flowsheeet selection and Petrel with a pipeline to an onshore gas plant and a gas production platform over the Reindeer gas field new capital and operating cost estimates. subsequent phase that completes Petrel and develops which is located about 100 km northwest of Dampier; Tern. Expenditure: $1.4b. offshore and onshore gas supply pipelines; a gas Expenditure: $1b. Employment: Construction: 1000; Operation: 300 processing plant located near Devil Creek, near Karratha, and sales gas export pipeline. The DCDP Platinum Group Metals North Eastern Goldfields - Yakabindie Nickel Mine will provide up to 300 TJ per day of dry natural gas and Halls Creek - Panton Sill-Platinum Project BHP BILLITON NICKEL between 160 kl to 800 kl per day of gas condensate. PLATINUM AUSTRALIA LIMITED The Yakabindie project is based on a large nickel All gas from the DCDP will service the domestic gas The Panton platinum-palladium deposit is located 60 deposit situated near BHP Billiton's existing Mt Keith market in Western Australia. Construction is scheduled km north of Halls Creek in the Kimberley region of nickel project and is estimated to contain a resource of to start in August 2008, with first gas delivered into the Western Australia, and contains the highest grade of 289 Mt @ 0.58% nickel. BHPB is considering developing DBNG pipeline by April 2010, subject to receiving all PGMs known in Australia. A bankable feasibility study Yakabindie as an integrated part of the Mt Keith project, the required approvals. (BFS) has found that, while the project is technically and is conducting a pre-feasibility study, including infill Expenditure: $600m. sound, it is not commercially viable. The company is drilling of the ore body and metallurgical testing. Employment: Construction: 200; Operation: 20 considering updating the BFS during the first half of 2008 to assess the impact of current higher prices for Expenditure: $20m. Pilbara - Gas to Liquids Fuels platinum, palladium and by-product nickel. Pilbara - Nickel Mine SASOL CHEVRON AUSTRALIA Pilbara - Platinum Deposit Sasol Chevron Australia has commenced a feasibility SHERLOCK BAY NICKEL COMPANY HELIX RESOURCES NL study for a $10 billion Pilbara based gas-to-liquids Sherlock Bay Nickel Corporation owns the Sherlock Helix Resources NL has established an indicated project. The project will draw gas from the Wheatstone Bay nickel project, 120 km east of Karratha. The project resource of 9.2 Mt at 2.9 g/t combined platinum, field north of Barrow Island and produce some 45,000 palladium, rhodium, and gold, 0.2% nickel, and 0.3% is comprised of the Symonds and Discovery deposits. b/d of diesel and 20,000 b/d of naphtha. The ore body extends over a length of approximately copper at its project site near Karratha. Preliminary Expenditure: $10b. 1.6 km and varies in width between 5 m and 35 m. The mining studies suggested a mining rate of combined Employment: Construction: 3000; Operation: 300 deposits contain a combined proven resource of 25.4 open cut and underground production of 1.5 Mt/a. Mt at 0.4% Ni, 0.09% Cu and 0.02% Co. This resource is Pilbara - LNG Plant Further activity was postponed in early 2003, as a result of poor exploration results and a decreased expected to give a project life of 12 years. Processing of BHP BILLITON PETROLEUM palladium price. The project is under review. the ore will use the BioHeap bulk heap leach process, BHP Billiton Petroleum and Exxon Mobil are working which will produce metal with an expected recovery together to identify the optimal development plan for Salt of 88%. the commercial development of the Scarborough gas Expenditure: $30m. field located offshore in about 900 metres of water Exmouth Gulf - Yannarie Solar Salt Project and about 280 km northwest of Onslow. The project STRAITS SALT PTY LTD Oil & Gas Developments is examining a number of concepts including the Straits Salt is currently investigating the feasibility of development of an associated 6 Mt/a LNG plant at a producing up to 4 Mt/a of salt in the eastern Exmouth Barrow Island (Carnarvon Offshore Basin) - Gorgon LNG site approximately 4.5 km southwest of Onslow. The Gulf area, 1100 km north of Perth. It has exploration CHEVRON AUSTRALIA PTY LTD LNG produced may be sold to the American west coast licences over the area of interest while it undertakes The Gorgon Joint Venture is considering a 10 Mt/a and Asian energy markets. its feasibility studies and has applied for a mining lease over the area where it wishes to implement the LNG and domestic gas development at Barrow Island, Expenditure: $5b. Employment: Construction: 2400; Operation: 125 project. Public submissions to Straits' Environmental based on gas from the Gorgon and Jansz fields. The Review and Management Program closed on 12 project obtained State and Federal environmental Scarborough (Carnarvon Offshore Basin) - Gas Field March 2007. The company subsequently submitted approvals in September and October 2007, respectively. EXXON MOBIL a modified proposal together with the results of A final investment decision for the project will be The gas field is located in around 900 metres of water additional investigations required by the EPA. These made on completion of optimisation studies for and about 280 km offshore, in the Carnarvon Basin with supplementary documents were open for public the development. The Gorgon Joint Venturers have probable reserves of approximately 8 Tcf of gas. BHP submissions until 24 March 2008. The company is also in discussions with government regarding appropriate individual market commitments for approximately 75% Billiton Petroleum completed 3D seismic survey work tenure and associated matters. of the LNG product. and drilling of Scarborough-3, 4 and 5 wells during Expenditure: $11b. 2004 and early 2005. Evaluation of the data is complete Expenditure: $200m. Employment: Construction: 3000; Operation: 600 and ExxonMobil announced in May 2006 that it is now Employment: Operation: 120 interested in assessing the potential development. Browse Basin - Ichthys (Browse Offshore Basin) BHPB is also conducting a pre-feasibility study to Timber INPEX assess the viability of providing Scarborough gas to its Mirambeena Timber Processing Precinct - proposed Pilbara LNG plant near Onslow. The Ichthys gas and condensate field was discovered Engineered Strand Lumber in 1980 and is located in 250 metres of water, Expenditure: $100m. LIGNOR LTD approximately 440 km north of Broome and 250 Scott Reef/Brecknock (Browse Basin) - Gas Fields Lignor Ltd is proposing the development of km from the mainland. Six discovery and appraisal WOODSIDE ENERGY LTD an engineered strand lumber plant located at wells have been drilled in the period 2000-2004. Woodside discovered gas and condensate at Torosa Mirambeena, near Albany. The plant will source most The P50 estimated recoverable resource in place (Scott Reef) in 1971, Brecknock in 1979 and Calliance of its timber from the extensive eucalypt plantations is approximately 10 Tcf of gas and 312 mbbl of (Brecknock South) in 2000. The fields are located growing in the Albany region and will use technology condensate and LPGs. The permit is owned by Inpex in water depths of up to 800 metres, about 425 km developed by the German engineering company, Browse Ltd (76%) and Total (24%). Development of the northwest of Broome and 250 km from the mainland. Siempelkamp. The company has completed its field is planned to include offshore semi-submersible The reserves in these fields are currently held as a feasibility study. Further project development has been facilities and a subsea pipeline to an offshore location, contingent resource and are estimated to be in excess put on hold pending more favourable global market where approximately 8 Mt/a of LNG will be produced of 20 Tcf of gas and 300 Mbbls of condensate. During conditions. for export to the Asia-Pacific market, with the first LNG 2007 and 2008 Woodside (Operator and about 50% Expenditure: $350m. shipment scheduled for 2012. The company is also interest holder) is planning to continue with field Employment: Construction: 400; Operation: 140 27 Prospect New Pilbara opportunities for Indigenous workers

Milestone program: Rio Tinto Iron Ore’s Technical Officer of Hydrogeology, Eddy Newell.

Hundreds of new jobs will be the State Government, we will create as “It is clear we need more than a created for Indigenous Australians many jobs as possible.” ‘business as usual’ approach, and that in the Pilbara thanks to a landmark no one company or organisation alone The Minister said the agreement would can achieve what is necessary. If agreement between the Western focus on ensuring the right education, together we can deliver greater and Australian Government and Rio Tinto training and employment pathways sustainable Indigenous participation Iron Ore (RTIO). were in place so that Indigenous people (individual, family and community) in had the necessary skills required in the the Pilbara economy, we will have State Development Minister Eric mining and services industries. Ripper, who signed a Memorandum of achieved a great deal. Understanding with RTIO chief executive The agreement also commits to Sam Walsh, said the agreement would establishing contracting opportunities “By securing ongoing employment create at least 300 jobs for Indigenous between RTIO and Indigenous-owned with RTIO, its contractors, or other workers. businesses, and enables an Indigenous- organisations, as well as through greater owned mine rehabilitation enterprise that retention of young people in schools, “This agreement commits both parties acknowledges traditional owners’ strong through to university or other training, to a range of employment and enterprise interest in the remediation of their land Indigenous people will have the choices initiatives,” Mr Ripper said. following mine closures. denied to previous generations.”

“It will significantly strengthen future Mr Walsh described the agreement as a The framework agreement was developed training, business and job opportunities milestone in Indigenous involvement in by the Aboriginal Economic Development the Western Australian resources boom. for the local Indigenous community. division at the Department of Industry “Mining operations are expanding in the “It is vital that the traditional owners and and Resources. The MOU will identify Pilbara and we need to ensure Indigenous Indigenous people of the Pilbara not only up to 300 new Indigenous workers from people and traditional owners benefit participate in and enjoy the benefits of the Pilbara and elsewhere to join RTIO’s from this development. this extraordinary activity, but that they operations in a range of occupations by become better equipped to control their 2010. RTIO’s operations already use more “Through a joint approach by RTIO, destiny long after mining has ceased,” than 500 Indigenous workers across Indigenous people in the Pilbara and Mr Walsh said. Western Australia.

28 Prospect Significant resource projects underway or planned in Western Australia Visit us online Western Australia continues to lead the way as Australia’s No.1 resources investment destination, with more than $100 billion worth Prospect can be downloaded free of of projects either underway or planned over the next few years. These charge from the Internet by visiting the projects will create more than 38,000 construction jobs and more than website of the Department of Industry 9,000 permanent jobs. and Resources at: www.doir.wa.gov.au

Project value Employment (estimated A$m) Construction Permanent Prospect Alumina Subscription/Change of address Alcoa’s Wagerup/Willowdale refinery Train-3 expansion 1500 1500 260 ABN: 69 410 35 356 Worsley Alumina’s refinery expansion 2000 1000 150 Sub total 3500 2500 410 Iron and steel

BHP Billiton’s rapid growth projects 4&5 3800 n/a n/a Name: Fortescue Metals Group’s mine, rail and port proposal 3200 2500 840 Gindalbie Metals’ Karara magnetite mine 1000 400 240 Grange Resources’ Southdown magnetite mine 893 700 200 z Hope Downs Limited’s iron ore mine 1500 1000 300

Murchison Metals’ Jack Hills Stage 2 hematite mine 750 450 350 Position: Asia Iron Extension Hill magnetite mine 715 1000 280 Midwest Corporation’s Weld Range hematite mine 800 900 220 Mineralogy’s Cape Preston mine and processing projects 5000 2500 800 Organisation: Robe River’s Cape Lambert port expansion 1100 450 120

Australian Premium Iron Joint Venture’s iron ore mine 2000 1300 700 Address: Sub total 20758 11200 4050 Nickel/cobalt z Heron Resources’ Goongarrie mine and plant 1400 1000 300 BHP Billiton’s Ravensthorpe mine 2800 2000 380 Sub total 4200 3000 680 Type of business: Petrochemicals CSBP Chemical’s Kwinana ammonium nitrate plant 200 n/a n/a Phone number: Dampier Nitrogen’s ammonia-urea plant 900 1000 130 Sub total 1100 1000 130 Oil, gas and condensate Email Gorgon Joint Venture LNG project 11000 3000 600 Please tick the appropriate box Woodside’s Vincent oil project 1000 n/a n/a Please add me to your mailing list to receive Inpex’s Ichthys LNG project 8000 2000 500 Prospect magazine. I would like a subscription for Woodside’s Angel gas/condensate project 1600 n/a n/a one year @ $12 (incl. GST) North West Shelf JV’s LNG Train-5 2425 1500 20 two years @ $22 (incl. GST) BHP Billiton’s Onslow LNG plant 5000 2400 125 three years @ $32 (incl. GST) Santos’ Tern–Petrel gasfield project 1000 n/a n/a

Woodside’s Pluto LNG plant 11,200 3000 200 My cheque, made out to the Department of Industry Sasol Chevron’s gas-to-liquids project 10000 3000 300 and Resources, is enclosed OR please debit the BHP Billiton’s Pyrenees oil project 2000 n/a n/a amount to my credit card using the following details: Sub total 53225 14900 1745 Type of card: Visa Bankcard Mastercard Other

Argyle Diamonds’ underground mine (Stage 1) 850 250 400 Expiry date BGM’s Boddington Wandoo gold mine expansion 2000 1500 650 This form will become a tax invoice for GST purposes when payment is made. Griffin Energy’s Bluewaters 1 & 2 coal-fired 800 600 100 power stations Change of address (please make changes required on one of your old labels). Ord irrigation (Stage 2) project 500 650 550 Moly Mines’ Spinifex molybdenum/copper mine 622 400 375 Please photocopy or cut coupon and mail to: Straits Resources’ Yannarie salt project 200 n/a 120 Prospect subscriptions Sundry projects — confidential and others 15200 2000 300 Information Centre Department of Industry and Resources Sub total 20172 5400 2495 Mineral House, 100 Plain Street TOTAL 102955 38000 9510 East Perth, Western Australia 6004