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Dis C O V Er Y Victorian Strategic Policy Near zero greenhouse emissions NOVEMBER 2007 Gold Undercover Update Unearthing Victoria’s future Executive in Focus Arthur Hood, Lihir Gold Limited Goldstar Resources Walhalla Project Tubal Cain success pmd*CRC New understanding of mineral systems VIMP Otway Gas Project Victorian Initiative for Minerals and Petroleum Woodside announces start of gas export 14 Page Feature VICTORIA’S EARTH RESOURCES JOURNAL DISCOVERY REGULARS Minister’s Foreword News Updates Tenement Updates and 02 Peter Batchelor, Minister for 03 Zero Greenhouse Contacts Energy and Resources, introduces 04 GeoScience Victoria 36 What’s happening with mineral the special ‘VIMP’ edition of applications and licences 04 Victorian gas and oil sector Discovery Magazine. 05 Castlemaine Goldfields success 37 Your guide to Minerals and Petroleum contacts and Executive in Focus 05 Stawell wins rescue competition resources sector websites 09 Arthur Hood, Lihir Gold Limited 06 Mutiny project in track at Cassilis 06 Adelaide hot rock conference CONTENTS FEATURES ARTICLES Gold Undercover Update Mineral systems in Victoria Unearth Victoria’s wealth: Cooperative research centre understanding PAGE 12 PAGE 07 VIMP Goldstar Resources Walhalla Project p Victoria’s striking visual identity to underpin its new promotional campaign VIMP data release showcases Eureka moment for Tubal Cain PAGE 08 the latest geoscience data For Discovery online visit: PAGE 14 Bemax NL www.dpi.vic.gov.au/minpet/discovery Bemax production record from Murray Basin or to receive your free copy send your New players boost Victoria’s Oil PAGE 10 details to: and Gas potential Gordon Chakaodza PAGE 15 Iluka’s Hamilton plant Resources Development Officer Ballarat project on track for Commissioning and ramp-up Department of Primary Industries commercial production PAGE 11 Phone: 03 9658 4401 PAGE 16 Email: [email protected] Seismic transect sheds light on central National Mine Safety Framework Monitoring trends and performance PUBLISHING DETAILS Victorian gold potential PAGE 34 Discovery is published three times a year PAGE 17 by the Victorian Government Department of Perseverance tops up cash to offset Primary Industries, Minerals and Petroleum Division, Melbourne, November 2007. gold shortfall PAGE 18 ISSN Number 13282409 Maldon reveals its golden secrets For more information contact: The Department of Primary Industries PAGE 20 Level 16, 1 Spring Street, Melbourne 3000. Gold Undercover and Rediscover www.dpi.vic.gov.au Victoria Initiatives DISCLAIMER PAGE 21 This publication may be of assistance to you, Undiscoverd Hydrocarbon in Victoria’s but the State of Victoria and its officers do not guarantee that the publication is without Otway Basin flaw of any kind or is wholly appropriate PAGE 22 for your particular purposes and therefore Victoria leads carbon capture and disclaims all liability for any error, loss or storage research other consequence which may arise from you PAGE 24 relying on any information in this publication. This publication is copyright. No part may be reproduced by any process without the Petroleum Update written permission of the Department of Current goings-on in the state’s oil Primary Industries. and gas industry ACKNOWLEDGMENTS PAGE 26 Minerals and Petroleum Division acknowledges contributions made by private Geothermal in Victoria Update enterprise. Acceptance of these contributors, The companies that secured the first round of however, does not endorse or imply exploration permits in Victoria endorsement by the Department of Primary PAGE 32 Industries of any product or service offered by the contributors. DEPARTMENT OF PRIMARY INDUSTRIES Rediscover Victoria in3D A 3D geological model for the 21st Century v A sophisticated, fully attributed 1:250,000 scale 3D geological model v Links sedimentary basins and basement terranes v Allows better understanding and predictability of mineral, geothermal and hydrocarbon systems A one-day technical workshop will be held in Melbourne in late 2007 to develop the scope of the project and to encourage industry’s long-term involvement and participation. The Rediscover Victoria Initiative is the Victorian Government's new four-year $5 million project which includes a 3D geological model and a strategic drilling project for the minerals sector. For more information, or to express interest in attending the workshop, contact: Dr Tim Rawling, 3D Modelling Manager, GeoScience Victoria Phone: +61 3 9658 4584 Email: [email protected] Visit: www.dpi.vic.gov.au/minpet/rediscovervictoria DISCOVERY JOURNAL NOVEMBER 2007 t The Honourable Peter Batchelor, Minister for Energy and Resources Minister’s Foreword p Minister Batchelor (second from right) along with senior executives from the Department of Primary Industries at the launch of the Issues papers, Stategic Policy for Near Zero Emissions from Latrobe Valley Brown Coal. Welcome to the November edition of Discovery. We also recognise that addressing this will require an investment Victoria’s resources industry is going from strength by the Victorian Government in a variety of policy measures and innovative technologies that aim to reduce or negate greenhouse to strength with the state currently benefiting from the gas emissions. highest level of mineral exploration investment in more than 25 years. To this end, the Brumby Government is committed to reducing greenhouse gas emissions by 60 per cent by 2050. The Brumby Government is proud to be a part of this growth through our on-going partnerships and support of industry, and Central to creating our clean energy future is the protection and our own innovations and technology development. enhancement of the energy industry in the Latrobe Valley, one of Australia’s most important energy regions and the cornerstone Victorian Initiatives for Minerals and Petroleum (VIMP) of the Victorian economy. 19th Data Release Recently, the government invited industry and the community to One of the most significant ways the Brumby Government works be involved in creating a strategic blueprint that could achieve with the private sector to grow the industry is the annual Victorian near zero net greenhouse gas emissions from the use of brown Initiative for Minerals and Petroleum (VIMP) data release event. coal from this region. At this year’s event in July, I was pleased to join more than In part, these opportunities are based on the introduction of 200 industry representatives to see the Department of Primary carbon capture and storage (CCS) technologies which are one of Industries (DPI), researchers and industry showcase their high the range of options the government is considering in our efforts quality geoscience data that helps industry find Victoria’s best to tackle climate change. mineral and energy prospects. The Victorian Government believes there are many benefits Since 1994 more than $31.5 million has been invested into to this technology. growing the mineral and petroleum industries through this VIMP research. CCS will ensure brown coal remains the major source of energy in Victoria for many decades. It will protect Victoria’s affordable From the government’s point of view, our investment has paid electricity prices and will also provide opportunities for producing off. For every dollar we put into acquiring this data, research a range of value added products from brown coal. suggests we attract between $5 and $9 in additional exploration expenditure. The data has also been instrumental in the discovery Most importantly, this technology will help secure the long-term of several major prospects. Recent ABS data showed record viability and prosperity of the Latrobe Valley community and mineral exploration expenditure in Victoria reached an all time economy, and will benefit all of the state’s communities high of $82.5 million in 2006/7, the highest since records began and industries. in 1988. During 2008 I look forward to continuing to work with minerals This year, the VIMP event also outlined the innovative work that and petroleum industries to continue to grow the sector, the government, the research sector and industry are undertaking encourage exploration and investment and create new jobs in the areas of carbon capture and storage technology and across Victoria. renewable geothermal energy. I hope you enjoy the November edition of Discovery magazine. Near Zero Emissions Our featured Executive is Arthur Hood, CEO of Lihir Gold, a leading Asia-Pacific gold producer with operations at Ballarat. While there are many exciting opportunities ahead for the energy and petroleum sector, the Brumby Government recognises that for the on-going sustainability of all industries we need to acknowledge and address the issue of climate change. Peter Batchelor 02 Minister for Energy and Resources MINERALS AND PETROLEUM NEWS UPDATES Zero greenhouse emissions to protect the environment and jobs An issues paper on the Victorian Government’s strategic policy framework for near zero emissions from brown coal was released to stakeholders in August 2007. The cost of mining in the Latrobe Valley can be as low as a few dollars per tonne, which makes power generation using lignite a commercial proposition attracting the attention of investors. As prices rise for other, increasingly scarce energy sources such as oil and gas, Victoria’s coal reserves may become of even greater value with potential uses in other p The Strategic Policy Framework will shape the way coal is used in the long-term in the Latrobe Valley applications such as coal-to-liquids,
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